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Will the Microsoft brand name work for Lumia?

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As part of an earlier global brand study, Microsoft had asked Xbox users to rate the product independently, and later asked them to re-rate it by saying that the video gaming brand was a Microsoft product.

"The outcome clearly that user ratings increased from 26% to 41% after they were told it was from Microsoft," said Raghuvesh Sarup, director-marketing, Nokia India Sales Pvt Ltd (a subsidiary of Microsoft Mobile Oy).

And so it appears that an attempt is being made to replicate this rub-off effect in the affordable and high-end smartphone segment with the rebranding of Nokia Lumia to Microsoft Lumia. So will it work?

"I think and hope it will because we have data on why people are liking Microsoft Lumia more than whatever it was without Microsoft. We think, people believe that technology is always good and better, and that they will get more thus increasing the overall value perception," said Sarup without sharing any details about sales targeted or for that matter the potential increase in volumes the new branding exercise is likely to bring in.

Interestingly, while both Nokia and Microsoft have learnt a lot over the decades, the learnings have been gathered as two separate entities. That meant, a lot of innovation, progress and technology on the hardware side was lying with Nokia and an equal amount on the software side at Microsoft. Post completion of the acquisition six months ago, the technology of the hardware world has now been married to the technology of the software world and that's the magic smartphone users are set to experience now.

Sarup said the Lumia name as such required continuity post the change of hands. "You can't rename Nokia Lumia as Microsoft Alfa because that doesn't make any sense. Hence, it was decided to keep some things in common and change the others and that's the reason for the name Microsoft Lumia. Our survey also showed that the awareness of Lumia is extremely high as a branded, quality product and hence is the bridge between this important transition," said Sarup.

Microsoft Devices classifies the mobile handsets market in India as high-end smatphones, affordable smartphones and the first / feature phones. It is the first two categories where brand Lumia sits while brand Nokia will be extended to products in the last category (comprising entry level and series 30+ phones).

"Microsoft has an agreement to use the Nokia name for many years for the first / feature phones. The smartphones, however, will gradually be changed to Microsoft Lumia. So while, existing stock in the market will continue to be sold as Nokia Lumia, all new smartphones will sport the new brand," said Sarup adding that there will be no change in the support systems for smartphones under both brands.

Bringing together the legacy of Lumia and the heritage of Microsoft, the global leader in software, services, devices and solutions has launched its first affordable smartphone in the Indian market called Microsoft Lumia 535. The company is expecting significant price disruption in the market by giving its potential buyers value for money proposition and pricing the handset at Rs 9,199.

For most parts of the world, both Nokia and Microsoft have own manufacturing facilities for their products, and hence the company isn't focusing much on the origin of these handsets.

"They work as one unit and supply based on logical proximity to whichever country that needs whatever product," said Sarup.

While Nokia is understood to be working on a re-entry plan as far as mobile devices is concerned, Sarup refrained from making any comment on whether the acquisition agreement included a non-compete clause.
 

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