Nokia recently announced that they are planning to launch a new program that provides advertisers with the ability to brand their cell phones. The program is scheduled to launch during the second half of 2009. Nokia is currently reaching out to the entertainment industry to find potential branders. The idea behind this campaign is that by branding cell phones they can develop a deeper brand loyalty amongst consumers. This program was tested in Brazil with a few personal care products and Coca-Cola, and has already seen great success.
The first target for Nokia lies within the entertainment industry. The potential here is that cell phones are already extremely tied to the entertainment industry. Some people use their cell phones to listen to downloaded music, and a large majority of people download Mp3 ringtones. So, it seems like a reasonable guess that people would be open to further brand their cell phones with their favorite musicians.
The most potential can be seen in the tween market. Tweens are very brand loyal and are known to follow trends. Nokia could even use celebrity endorsements and strategic product placements to get their new phones recognized. Popular teen idols like Hannah Montana have seen great success with product placement campaigns. Something that Nokia didn’t mention was the possibility of marketing luxury brands. One of Coach’s largest audiences lies within the tween market. Carrying a Coach phone could become a trend amongst this group. Whether or not luxury brands would want to promote through this channel remains to be seen.
Motorola reeled out similar campaigns in 2007 and 2008 with their Razor and Rocker phones. In 2007 U.S. Cellular was selling a red Motorola Razor cell phone that read: Red(One) on the back of it. This was created to promote the Aids Foundation. A portion of the proceeds from each phone were donated to the Aids Foundation. Sports teams have even employed similar tactics. In 2008, US Cellular was promoting a blue and orange Rocker phone deemed the Chicago Bears phone. Purchasers of the phones could receive discounts on tickets and the chance to win Bears promotional items.
If Nokia is attempting to penetrate the market beyond the tweens they will face some challenges. The greatest competition for Nokia will be with the iPhone. Recently more and more people have been switching over to the iPhone. All of the unique applications and Mp3 capabilities really make the Apple product stand out from its competitors. Unless Nokia re-evaluates their product and its features to help it compete against the iPhone, it will struggle to compete with their market share.
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