Mobile phone-maker Intex Tech turns to branding, marketing

As competition in the Indian smartphone market heats up, home-grown mobile handset vendor Intex Technologies looks to focus on marketing.

Primarily, a sales-driven company, Intex was slow on brand promotion.

However, the success of two television commercials (TVCs), where it roped in actor-director Farhan Akhtar as the brand ambassador and the focus on premium offerings, is likely to bring about a change.

According to Keshav Bansal, Director Marketing, Intex Technologies, its TVCs and branding initiatives doubled mobile phone sales over the last 10 months — from 4-5 lakh pieces a month to around 10 lakh pieces a month.

Nearly 15 per cent of the handsets sold are smartphones. In this category, sales trebled to 150,000 from 50,000 (a month).

“We have been a sales driven company with focus on distribution network. But now, we are shoring up marketing activities targeting new customers,” he told Business Line.

Around ₹150 crore would be spent on branding, while another ₹100 crore on mobile phone promotion in 2014-15

Coming up in the next fiscal (2014-15) would be at least three TVCs, with Farhan Akhtar continuing to be the brand ambassador.

“Aggressive marketing” would be taken up across print and social media, along with retail branding strategies.

Discussions on in-movie tie-ups with Sanjay Leela Bhansali Productions are also on, along with tie-ups with college fests and youth festivals. Apart from new offerings in the mid-to mid-premium segment, Intex would work on its after-sales strategies. It currently has over 800 service touch points, Bansal said.

Moving-up the value chain Another trigger for focus on marketing, sources said is poor response to high-end offerings (above ₹15,000). Poor brand perception, along with lack of after-sales service, has hindered Indian vendors from scaling up.

Accordingly, Indian handset vendors are seen as catering to the lower or entry-level segments.

“To a certain extent focussing on marketing activities should boost Intex’s brand image. But ideally, marketing activities need to be supported by service centre presence and retail distribution,” Faisal Kawoosa, Lead Analyst, CyberMedia Research Telecoms Practice, said.