Obi Mobiles, backed by ex-Apple CEO John Sculley’s InflexionPoint, is the latest entrant in the cluttered Indian handset market.

Having launched in August, the Gurgaon-headquartered company is targeting a turnover of ₹1,000 crore over the next 12 months (August 2015) and a market share of around 5 per cent. Recently in Kolkata, Ajay Sharma, CEO, Obi Mobiles, spoke about the company’s branding strategy, the need for differentiation and the way forward. Edited excerpts:

As a new entrant, how do you differentiate in a cluttered handset market like India?

Our focus is on the smartphones segment. The market size last year was around 4.4 crore units. This is projected to grow to around 8 crore. Thus, there is room for everyone to grow.

We are not talking about taking (market) share away from the existing brands to make our presence, or large numbers. But with the sheer momentum of the market, giving the right product at the right price and good user experience are easy deliverables. Our USP (unique selling proposition) is differentiated products at aggressive pricing.

How has the first two months been?

We launched some 500-odd units of ‘Octopus’ on Snapdeal in July and they were sold out within days. Formally, our offerings hit the market in mid-August. But based on the distributor network and the number of retailers who have agreed to stock our handsets, we feel the response is very exciting. The real traction comes once the brand awareness builds up.

Currently, the smartphone market starts at as low as ₹2,000 and goes up to ₹60,000. Where does Obi fit in?

In terms of pricing, we will be placed between ₹4,000 and ₹10,000. According to IDC, 70 per cent of the handset market is in the sub-$200 (around ₹12,000) category. I believe, as we move ahead, this 70 per cent can go up. Hence, it has been a conscious decision to keep our portfolio in the sub-$200 range.

The target audience are youngsters in the age group of 16 to 35. Obviously, they would look for branding. We have rolled out our brand campaign.

Can you elaborate on the branding strategy?

Our branding strategy revolves around the youth, who do not want to follow the set standards. They behave in a way they want to; look to stand out. And this is where they can relate to our phones. Branding has become very important nowadays, especially when technology has reached its peak.

So how much are you investing in marketing?

We look to invest ₹40-50 crore in short time in establishing Obi as a brand across TV, print media and social media.

And, where does John Sculley’s marketing acumen come in?

He comes in as an advisor. He is actively involved in the branding that includes the box designing, naming the model and the TV and print marketing campaigns.

Any plans for standalone Obi stores?

Maybe a year down the line, we will look to have standalone stores. As of now, our 100 per cent focus is on targeting the mom-and-pop stores, which still account for majority sales.

Other channels like online ones and tie-ups with organised retail stores are being worked on.

Are you looking at overseas sales?

Yes. Inflexion Point will have tie-ups in different countries and they will be selling handsets under the Obi brand. (InflexionPoint is a Singapore-based investment and acquisition technology firm co-founded by Sculley.)

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