Motorola Industrial LTDA - Consumer
Electronics - Brazil
Motorola Industrial Ltda
Strategic Direction
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Motorola wants to be seen as
having the most innovative products in the mobile phone subsector. The company
already sponsors fashion events and others events targeting young consumers.
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Although there are many very
simple mobiles available from different companies, making mobile communication
almost a commodity, Motorola is looking to the public that will in the near
future, consume mobile phone like clothes, changing every season to the most
updated style.
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Investing in technology and
having a very innovative image in Brazil, Motorola has everything in place to
achieve its goals. The brand received the Top of Mind Prize 2005 as the most
recognised mobile phone brand in Brazil.
Key Facts
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Full name of company:
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Motorola Industrial Ltda
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Address:
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Rodovia SP 340 s/no. Km 128.7m - Jaguariuna – SP – CEP
13820-000
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Tel:
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+55 11 3328 3838
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WWW:
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www.motorola.com.br
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Activities:
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Mobile phone manufacturer
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Source: Euromonitor International from
company reports, trade press
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2003
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2004
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2005
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Net sales (US$ million)
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800
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1,000
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1,300
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Number of Employees
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-
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-
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6,500
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Source: Trade press, company research
Company Background
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Since 1995, US$500 million was
invested in its Brazilian base, a great part of this in the Campus Industrial e
Tecnológico de Jaguariúna (SP), home to its industrial plant and where research
is undertaken by an engineering team of 30 people.
·
Its Brazilian production
services the needs of the entire Latin American region.
·
Motorola is a global leader in
telecommunications. In Brazil, it achieved sales of US$1.3 billion in 2005, up
30% on the previous year.
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Brazil is among the four
focus-countries of the company, together with Russia, India and China.
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In Brazil, Motorola is also
present in the sale of internet access, cable modems, automotive systems and
telematic solutions among others.
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Motorola Brazilbis also
socially responsible, and this brought the company the recognition of the US
Government. Motorola Brazil received the prize for Corporate Excellence for the
company’s actions in the social area in Brazil: educational, social, cultural
and environment. An example is that in five years, one of its projects recycled
100 tons of batteries in Brazil.
Production
·
Motorola supplies the internal
market with products produced in Brazil. Motorola’s industrial complex in
Brazil is also an export centre. It has exported phone to the value of US$4
billion since it began operations in 1997, making Motorola a major exporter in
Brazil. Motorola uses Brazil as its export base for the Latin American region.
Competitive Positioning
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Besides marketing investments
to fight against Nokia leadership in the high-end segment, Motorola also
invests in technological research. In Jaguariúna, interior of São Paulo, a
group of 160 engineers are part of the company’s world elite in mobile phone
development.
·
Motorola products aim at the
high-end market. Its portfolio of products is the biggest and most varied in
the subsector.
·
The success of the company in
Brazil is linked to hit products like the StarTac in 2001 and the RZR in 2005.
After StarTac, Motorola lost market share because of the advance of GSM
technology in Brazil (the company was deeper into CDMA), and also because of
rapid new releases by its competitors.
·
In 2005, Motorola again gained
share due to the huge success of new models, especially the RZR. This mobile
phone comes in many different colours, even gold, the Dolce & Gabanna
version, that was released during São Paulo Fashion Week in Brazil.
·
In 2005, Motorola ranked second
in mobile phone sales in Brazil, with a 26% market share. The success of the
‘Hello Moto’ campaign also contributed to the success of the company in recent
years. This positioned Motorola as a young, creative and high-end company.
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Innovation is also present in
Motorola’s partnerships. In 2006, in association to the operator Vivo, the
company is starting to spread the concept of the hybrid-phone, working as a
regular phone at home and a mobile outside.
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Subsector
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Share
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Rank
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Mobile phones
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26%
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2
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Source: Trade press, company research, trade
interviews, Euromonitor International estimates
