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Surabhi Agarwal

Posted: 2008-02-14 00:31:48+05:30 IST
Updated: Feb 14, 2008 at 0050 hrs IST

: Recently, Nokia roped in Shah Rukh Khan as its brand ambassador. The Finnish handset major, which holds the lead in the mobile handset market, both in India and globally, for so long had decided to go without an ambassador in India. This is the only area, perhaps, where the market leader was behind its competitors. While American handset maker Motorola has got Abhishek Bachchan as its brand ambassador, London-based Sony Ericsson is riding on the popularity of Hrithik Roshan. Korean handset major Samsung, too, had launched campaigns in the past with John Abraham.

Nokia’s recent move is just one aspect that signifies the changing dynamics in this industry. Though Nokia continues to maintain its stronghold in the country with more than 75% of the market share, in the past couple of years, other players like Motorola, Samsung, Sony Ericsson and LG have managed to inch forward slightly. Motorola is at the second position in the country with a slender lead over Samsung. According to reseach firm IDC, the second quarter of 2007 saw Nokia retaining its big market share while players like Samsung and Sony Ericsson showed slight improvement in their positions. However, none of them has been able to emerge as a clear-cut challenger to Nokia’s dominance in the country. But this is not stopping them from continuously evolving their strategies and taking a more aggressive stance. In fact, it’s spurring them more.

Explains Romy Juneja, founder and COO of MobileNXT, a mobile retail chain, “With Nokia having the dominant share in the country, finding niches seems to be the only way out for players, at the moment.” For instance, Motorola and Sony Ericsson, both are betting big on the power of music to gain more ground. A few months back, Motorola launched MOTOROKR, its music phone and coupled it with a high-pitched campaign featuring brand ambassador Abhishek Bachchan. Moreover, after Motorola acquires Soundbuzz (which owns many music libraries in the Asia-Pacific region), which it announced recently, its mobile music capability is expected to get a big boost. Though the American handset maker is going through rough times globally, it is trying every trick in the trade to retain its number two position in India. In the third quarter of 2007, its global market share dropped by 7.6% (to rest at 13.1%) and Samsung overtook it to take the second lead globally and its shares are at an all time...

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