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Toshiba aims big

Toshiba has finally woken up to the potential of the PC market in India

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Toshiba aims big
Monday, August 16, 2010

The Japanese technology giant, Toshiba is rolling out a nationwide marketing and branding plan in India in July this year to increase its computer laptop sales three times. It is banking on its technological innovations to achieve this goal.

On the anvil are a series of competitively priced top-end product launches to demonstrate its technological edge.

The new strategy is riding on the back of the goodwill generated by the twenty-fifth anniversary celebration of the world's first commercial launch of a laptop by Toshiba in 1985. Though IBM had demonstrated the first laptop, industry experts credit Toshiba for being first off the block with the commercial launch of T1100 laptop.

"It was our dream at that time to make everyone carry their own computer around," recalls Hidehito Murato, chief marketing executive, digital product division, Toshiba.

It also released two path-breaking laptop models-Libretto W100 and Portege R700. According to the latest report by market analyst, IDC India, Toshiba has a 4 percent share in India's PC market, which is predicted to cross annual sales in excess of 10 mn by the year 2015. The market has been registering a 46percent y-o-y growth and a compounded annual growth rate of 21percent in the last five years.

Toshiba wants reasonable size of this pie. So the company is targeting three key segments: corporate sales, retail customers and institutional sales in the education sector.

Shivakumar N, GM, PC division, Toshiba India indicates that the company has planned a $10 million (Rs 46 crore) marketing campaign which will aim to increase its market share to double digits within
a year.

Toshiba had just ten laptop models in the market till recently. In May, as part of the sustained campaign, eleven new products were introduced in the Indian market.

Two more cutting-edge, ultra thin laptops were introduced on June 25, 2010. "Seven more will hit the market so that the company will have a wide range of thirty products by October-end," Shivakumar says.

Company officials say that Toshiba's computer division currently has seventy-one service centers in forty-five cities. Within a year, this will be increased to eighty-one centers in fifty-five cities. To widen product availability, the sales outlets will also increase to 800 from 700. Toshiba products will soon be available in Reliance Digital outlets. It is also sold through Tata Group's Croma stores. Toshiba is also in talks with another chain of large format stores to stock its laptops.

"We will also be enhancing the buyer experience at these stores by using innovative designs and the presence of knowledgeable sales people," says Wu Tengguo, director, PC division, Toshiba India.

Education sector is another potential growth area identified by Toshiba and the push here is for institutional sales. Toshiba is also set to announce a new brand ambassador in the place of popular cine actor, Vidya Balan, to grab eyeballs in the market.

Narayanan Suresh
maildqindia@cybermedia.co.in
The author was hosted by Toshiba in Taiwan


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