Sumita Vaid
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Philips launches Fisio cellphones; print campaign breaks today

The print campaign devised by HTA, Mumbai, breaks today. While the company plans to leverage radio, television would be optional

Philips India launched its new range of Bluetooth-enabled, GPRS (General Packet Radio Service) handsets in the capital yesterday. For the uninitiated, Bluetooth is an open specification for a cutting-edge technology that enables short-range wireless connections on a globally available band of 2.4 GHz for worldwide compatibility. The Fisio range includes three models: Philips Fisio 820, priced at Rs 21,995, Philips Fisio 620, priced at Rs 11,995, and Philips Fisio 120, which sports a price tag of Rs 5,990.

Philips, a subsidiary of the Netherlands-based Royal Electronics, is not planning to storm the cellphones market as aggressively as its competitors have - especially so in terms of advertising. The company is confident that "the product will speak for itself". While not disclosing the ad spends for the mobile phone division, company officials said, "…about 4.5 per cent of the turnover of the consumer electronics division has been allocated as advertising budget for the year." The print campaign devised by HTA, Mumbai, breaks today. While the company plans to leverage radio, television, officials say, would be optional.

Though all the three models have been positioned differently, the overall communication is pegged on "coming closer to human nature". The 820 model, which claims "to flaunt is perfectly human", has been designed for the ‘early adopters'. "Early adopters are those who are innovative and are drawn to taking risks and challenges," explains Rajeev Karwal, senior vice-president, consumer electronics, Philips India Ltd. Fisio 620 is for those who for whom individualism is important. "They are ‘young at heart', and look for a balance between technology and fashion," adds Praveen Valecha, general manager, wireless, Philips India. In contrast, Fisio 120 is for those who expect the best value for money. In short, it is for the late adopters.

Citing the reason for launching three models targeting three different consumer profiles, Karwal says, "If no two people are alike, why should their phones be? Our hi-tech mobile phones are an outcome of intense R&D and I am confident that they will capture a sizeable share of the Rs 2,000-crore plus Indian mobile phone market, which is growing at the rate of 70 per cent per annum. The Philips Fisio range offers today's discerning mobile phone consumers greater personalisation, choice and versatility."

The company has broadly divided the cellphone market into four segments - entry level, low end, mid end and high end. The entry-level segment controls 20 per cent of the handsets market, while low-end and mid-end segments form 35 per cent and 30 per cent respectively. The high-end segment comprises the remaining 15 per cent of the market. With the launch of the three models, Philips now has presence in the low-, mid- and high-end of the handsets market, catering essentially to about 80 per cent of the cellphone community.

Currently, the company's mobile phone division has market share of 1.7 per cent. By December 2002, it hopes to have between 3.5 and 4 per cent market share and by 2003, in excess of 5 per cent.

There are two reasons that account for the company's confidence. First, the rapid growth of the mobile phone market, and second, the product features, that the company boasts, is better the current crop of handsets available in the market. Company officials point to the fact that in May alone cellphone subscription stood at 7 million. The year 2002 is expected to close with a subscriber base of 10 million and the number should go up by another 6 million in 2003. By 2005, the company predicts, the subscriber base will shoot to 45.9 million.

The company will leverage the retail presence of Agrani Switch and First Mobile Group (a chain of handset retailers across the country) to distribute its new range. Currently Agrani has 20 retail stores in Delhi. The First Mobile Group has 15 stores, and within a year of its operations, has sold 5 million handsets. The after-sales service would be provided by the company's 330 authorised service centres. © 2002 agencyfaqs!

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