Vertu Mobile Phones: Luxury Redefined
|
|
ICMR HOME | Case Studies Collection
Case Details:
Case Code : MKTG151
Case Length : 11 Pages
Period : 2002-2006
Organization : Vertu
Pub Date : 2006
Teaching Note :Not Available
Countries : Worldwide
Industry : Telecom
To download Vertu Mobile Phones: Luxury Redefined case study
(Case Code: MKTG151) click on the button below, and select the case from the list of available cases:
Price:
For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra
» Marketing Case Studies
» Marketing Management Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Case Studies by Area
» Case Studies by Industry
» Case Studies by Company
Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Chat with us
Please leave your feedback
|
|
<< Previous
"We are not in the hundreds of thousands [per year] yet,
but our aspirations are there."1
- Chris Harris, marketing director, Vertu, in August 2006.
"We understand communications technology. We believe now
that we understand the luxury industry. It will take something for competition
to match that." 2
- Nigel Litchfield, president, Vertu, in 2002.
Introduction
|
In August 2006, Vertu, a maker of premium mobile phones and a subsidiary of
Nokia, the world's largest mobile phone maker, announced that it was unable to
meet the demand for its luxury phones and would increase its production capacity
in the near future.
The mobile phones, or personal communication instruments, as they were referred
to in the company's communications, were priced between US$ 4,900 and US$ 50,000
(as of 2006). The phones were handcrafted with high quality components including
precious stones. The more expensive models were made of platinum.
|
|
Vertu had invested considerable money as well as time in conceptualizing and
creating its range of luxury phones. These extremely expensive phones were
primarily targeted at young and successful businessmen. Vertu realized early
that mobile phones, far from being just a communication device, would also
come to reflect the personality of their owners. While the Vertu phones
evoked a good response, some analysts doubted whether the interest would be
sustained.
|
|
As the
product proved successful, the number of imitators was expected to grow
quickly. And sure enough, companies like Mobiado3
and mainstream players like Motorola4,
Samsung5, and LG6
launched high-end mobile models in the mid-2000s.
Even as Vertu phones won praise for their design and build, they were
criticized for being technological laggards. However, company officials
did not see this as a drawback, explaining that a typical Vertu customer
did not place as much emphasis on cutting-edge features as he did on
design and high value components. |
Vertu Mobile Phones: Luxury Redefined
- Next Page>>
|
|
