Micromax To Come Up With Co-Branded Cell Phones In Tie-up With MTV
It is a very strange co-relation that despite the humongous growth witnessed in the Indian telecom sector we hardly boast of anything in mobile phone industry, many domestic players who tried desperately either failed or showed languishing growth.
Micromax, another domestic mobile player thinks co-branding could provide it much needed impetus to garner market share in Indian mobile market. It has inked a deal with MTV to introduce co-branded handsets in the market with the latter’s brand name.
The co-branded music phones will be priced in upwards of Rs. 4999 with features ranging from 8GB expandable memory, dual SIM, GPRS, multi format music support. The phone will also be bestowed with MTV contents ranging from wallpapers to ringtones & videos.
Micromax seem to be headed in the same direction as Spice Mobile by focusing on youth oriented music phones. Tie-up with established youth media channel like MTV can help it to further its claim to its customers.
Micromax has sensed the need for niche marketing and has a branding & marketing budget of almost Rs. 100 crores equaling manufacturing capex altogether. For MTV it makes sense to go in for multiple branding tie-ups as it can generate good revenue streams in future.
Mobile phone industry is very competitive and success requires heavy initial expenditure on marketing. We have also seen many established international players like i-Mate going down the drain and many suffering short-term setbacks (Motorola, Sony-Ericsson) due to depleting margins.
Do you think co-branded handsets can find success in the Indian mobile market?
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