By Saloni Dutta
Rajiv Sethi, Chief Marketing Officer, Spice Mobility Ltd, talks about planning for a digitally connected India through focus on Tier II and Tier III markets and innovations, while creating experiences for consumers and keeping it affordable too
Q] What is intrinsic to marketing at Spice Mobiles?
At Spice, we have the vision to enable the next billion people to connect to the Internet. So we are looking at a digitally connected India and all our marketing activities are in line with that. We aim to provide our customers with the latest technology at affordable prices and that is how we align our marketing vision to strategy and what we put out in the market.
Our consumer research wing has found that consumers want the latest in technology. So, while there is the focus to connect them at prices that are affordable, they are also very value conscious. Essentially, consumers want services at the best value. So we are looking at a standard set of features plus innovative ones specific to consumer needs and demands. Our recent partnership with Google is a step towards bringing value to the Indian consumer; we brought out the Android One with them and it has done quite well in the market. Our latest launch is the Hindi Android One, for the large Hindi-speaking population of the country.
We were the first to have the 5megapixel front camera smartphone which won a few awards. We put out the first 5-inch quad core phone under Rs 10,000. Partnering with the likes of Google or Mozilla to bring out India first products in the market is another key strategy.
Q] What is Spice’s launch strategy and the marketing initiatives you undertake to promote it?
To launch the Hindi Android One, we tried to connect with people for whom the product would be most relevant. We launched the product in Lucknow, as Uttar Pradesh is the heart of the Hindi belt. It has a large Hindi-speaking population and our research found immense need for a product which was truly ‘Hindi’ there. As opposed to other language phones which can at best only type in Hindi, Hindi Android One gave consumers the complete Hindi experience, right from watching a video on YouTube to using search or Chrome browser, all in Hindi. We had the launch in UP followed by an entire set of marketing activities, including a complete Hindi-belt focused campaign. We reached out to consumers in rural markets through activations and product demos.
The first step is to launch the product and release the communication in the market. The second important aspect is the experiential part of it; so when the Hindi Android one was launched, there was a lot of speculation and queries among consumers as to how it would be different from the existing phones in the market. The only way to show them the product benefits was to make them experience it. We reached out to consumers in rural India through kiosks. Activities that actually enhance the entire experience for the consumer are part of our marketing plan.
Q] What is the broad media mix employed at Spice Mobility for maximum reach?
We are aggressive spenders in the market. No we see a lot of focus on Digital and that is the big mantra for 2015. We are going to enhance our spends in Digital from 5% to 15% as part of the overall marketing mix. We would also be spending a lot of money on experiential and on-ground. Spice has this penchant to bring out India-first features and it makes sense to get the consumers to experience the phone first hand. About 35%-40% of our spends go towards creating this entire experience for consumers, putting the phone in their hand and making them experience the differentiated product features..
Print remains a key part of the mix for us, and we have been using vehicles such as Dainik Bhaskar, Dainik Jagran and Hindustan to reach out to consumers in our prominent markets in North India. Recently, we had a big consumer promotion in Rajasthan, our biggest market, which was totally driven by Print. We also use OOH in a big way.
Q] How does the brand aim to crack the e-tailing puzzle?
E-commerce will be key to our strategy, going forward. We also have the traditional channel and our brand stores called Spice Hotspots, the largest mobile phone retail chain in India with 350 stores. We have relationships with Flipkart, Amazon and Snapdeal. Recently, we launched a product, 520M, exclusively with Amazon. Our strategy is to launch products exclusively with any of these players as we work with all of them, and depending on the product features, we determine how best we can reach consumers.
Q] How much market-share does the brand have in the Indian mobile phones space and which market is the brand focussed on?
We are one of the top three Indian players in the market and have about 5% of the overall market-share consistently over the last few years. Our brands are focussed on the Tier II and Tier III markets, essentially Rajasthan, UP, Madhya Pradesh and Haryana, where we have a significantly higher share and are amongst the top two players. We also are looking at the East and North-east markets and will come out with a phone in Bengali, in line with our focus on language.
Q] What are some trends you see shaping India’s smartphone market arena?
The smartphone market is growing at a rapid pace and we are going to see around 84% growth in the segment. The Rs 5,000 – Rs 15,000 price segment is going to see the maximum amount of action. Smaller players are offering consumers the latest at more affordable prices, so we could see the erosion of the dominance of big players. Then, 4G is the buzzword - a lot of smartphone manufacturers are talking about getting in products for that.
Q] What are the brand’s strategic priorities for 2015?
Our strategy for 2015 is going to be in line with our vision of connecting the next billion. We will launch new products largely focussed in the Rs 5,000 – Rs 10,000 price range, and offer the best feature set in that range. We have two to three product launches every quarter and an aggressive product line up; 2015 should see a lot of action.
About the Brand
Spice Mobiles, the devices business of Spice Retail Ltd, is one of the fastest growing mobile Internet devices companies in India. With a customer base of over 20 million and an annual volume of over 8 million devices, the BSE/NSE listed Spice Mobiles has market-share of nearly 4-5% of the Indian mobile devices market. Spice Mobiles has been gradually consolidating its stand in the smartphones business, already being a strong player in the feature phones segment. Spice was the first to launch a smartphone with a 5MP Wide Angle Front Camera, the Pinnacle Pro, for which it also won the prestigious Golden Peacock Innovation award in 2014. It was also the first Indian brand to launch a full high definition smartphone, the Pinnacle FHD. The company has to its credit several firsts including the Dual SIM phones – across GSM, CDMA, Triband & Touch Screen PDA and smart devices on Android platform. Spice Mobility Ltd has business operations spanning India, Singapore, Malaysia, Thailand, Indonesia, Nepal, Uganda, Zimbabwe and Sri Lanka.
Facts
Creative Agency – Ogilvy & Mather
Media Agency – Omnicom Media Group
Social and Digital Media Marketing Agency – Interface Business Services (IBS)
BTL/Activation Agency – Various Agencies
PR Agency – Avian Media
Marketing Tip
Be innovative and creative. Don’t be scared of taking the path which has not been taken. Try out new things in the market.
CMO File
Rajiv Sethi is the group CMO of Spice Retail Limited. He leads the Marketing function for Spice’s Mobile Devices as well as the Hotspot chain of retail stores. Sethi holds a Master’s degree in Business Administration from Faculty of Management Studies, University of Delhi and brings with him more than 17 years of Sales and Marketing experience, having worked with some of the world’s top technology brands such as Samsung, Intel and Airtel. Before joining Spice, Sethi led Intel’s OEM, Channel and Retail Marketing Initiatives. Prior to that, he spearheaded Samsung Mobile’s marketing initiatives in India and South West Asia.
Feedback: saloni.dutta@exchange4media.com
