Orchestrating global marketing strategy that resonates with local consumers is just one issue facing Helene Barnekow. Alice Johnson reports.
Shouting above the noise of a raucous rock band in the corner of a dimly-lit terrace suite in the heart of London nightclub Scala is not exactly what you'd call conducive for discovering consumer insights.
The situation, however, doesn't seem to bother Helene Barnekow in the slightest, as she speaks of Sony Ericsson's ever-increasing youth market and the rapid pace at which the company is now releasing its music-led products.
Sony Ericsson itself has only been in existence for about six years; an amalgamation of Sony with its Walkman music brand and the Ericsson handheld device manufacturer.
When the two joined up they added significant weight to the concept of partnering mobile phones with music players - more specifically digital MP3 players. It's something that took off dramatically, and doesn't seem to be slowing down.
The Sony Walkman brand has been reinstated for the new handheld devices - which have come a long way since the first portable cassette tape players.
Understandably, the youth market is a big one for Sony Ericsson, which is divided into two sub-segments: pioneer youths, which drive new trends and explore more than mainstream youths.
Barnekow, originally from Sweden, explained: "When we started out six years ago, nobody knew who we were, because before it was only Sony or Ericsson; we weren't known. I think that the fact we were a challenger brand and weren't one of the established guys, and that we were bringing out some really cool products, created a very strong thing for the youth segment.
"They also have a very high consumption pattern... when we look at our replacement rates in the market - the content that youth are looking for and the products that are already in the market - [we can see that Sony Ericsson] works really well with the youth market," she said.
Youth, however, isn't the only target for Sony Ericsson, as Barnekow explains: "...it doesn't mean that we only go in for the youth segment - the W890 clearly targets a segment which is not really about youth, it's a more mature, sophisticated market. The phone has lots of design focus and targets another of our core segments."
As part of the release of numerous new products, the W890 Walkman handset launched early last month, 'to hit the right notes with sophisticated music lovers and design connoisseurs alike'. It is being marketed as a handset as slim as a CD case, with advertising showing a woman losing the phone in a stack of music CDs.
The way in which this model's target market is differentiated, however, is not just by age, but also by demands. The Walkman handsets are targeted at both the youth segment as well as an older, more design-conscious audiences - although music plays a part when targeting both.
Barnekow says: "I think definitely music is a huge trend, but music is not confined to the youth segment; it actually travels across ages and it's extremely relevant for many target groups."
Music isn't the only discernible trend for Sony Ericsson, however, as Barnekow continues: "WAP is an area - always being connected - is a trend that we're seeing. They [consumers] take the brand and they can always be connected, because they have a community that's happening now, now, now, and not when they get to their desks again, or Wifi spots."
Youth is also a theme that runs through Barnekow's personal life: as a mother of two, to seven-year-old Sophie and four-year-old Filip.
"The kids are good, they're small, so they adapt very quickly," she says of her recent move from Miami to London.
Barnekow has been based in England's capital for just four months, moving from the Miami base of the Latin American operation. Travel, it seems, is part of the Sony Ericsson culture.
"I believe that all international experience actually prepares you for the next move by making you more flexible, more tolerant with changes and with the unexpected.
It also makes you less predetermined in your mindset, which is a very positive thing on a personal as well as on a professional level.
"In the Latin America office I worked with 25 different nationalities, I was one of the very few Europeans. It was a great experience and made me much more open in my mind in terms of approaching business solutions in completely different ways," she says.
The move has seen Barnekow take on the role of vice president and head of central marketing, from head of marketing in the Latin America region.
This movement is part of the Sony Ericsson culture of travel as a way of expanding international knowledge.
"Sony Ericsson focuses on encouraging its people to move to different geographical locations in order to grow our international understanding and make sure the relevant experience in used in different positions. Hence it was natural for me to move from one of our fastest growing markets to a position in the global marketing organisation in headquarters," she says.
With bases across the world, globalisation of products is key for Sony Ericsson.
As Barnekow explains, a 'global' marketing plan is formulated, filtered down to regional marketing plans and then segmented further into local marketing plans, to truly connect with consumers in different parts of the world.
"We're building a global brand, but consumers are local, so it's not about pushing out global campaigns and everything we're worth, because it's really about working very closely with consumers and partners in every market. We're trying to find the things we feel are really relevant to have in a global perspective, which is really driven and run locally," she said.
When the company first started, it launched three or four products a year; now this has grown to approximately 25.
With so many different markets worldwide, and the number of product launches a year growing exponentially, however, doesn't the company run the risk of saturating the market?
"It's a very good point that the flow of new products are ever increasing in the mobile phone industry," she says.
"The challenge is to ensure that we provide differentiated products that are relevant and attractive to the target groups.
This is why the segmentation model is key to Sony Ericsson. As regards the marketing approach, we are focussing on using our sub-categories to stay relevant with consumers," she says.
A challenge doesn't seem to be something that Barnekow shies away from, having moved from Sweden to Miami, to London and having seen the company through a global rebrand last year - no small task for a relatively new business.
"The moment of rebranding will become one of the moments of the company's history, when we created a turning point," she says.
"We managed to rebrand within 100 days across the world. It became absolutely significant for our branding effectiveness and consistency, and it also created a strong internal alignment around our brand. Very motivating."
Her new London base "seems like a great city" Barnekow enthuses, "with a great mixture of cultures". And the biggest challenge for this globetrotter?
"...it is the same challenge that I have faced every time I move; get into a new lifestyle, get settled in a new house and schools and - very important - find a loving babysitter."
Curriculum Vitae
Age: 43
Marital status: Married
Children: 2 - Sophie (7), and Filip (4)
Lives: London
Hobbies: Family, friends, sports, reading
First job: Citibank, Geneva
Career high: Launch of the first Walkman phone in Latin America - enabling us to change the market
scenario completely and doubling market share within one year.
Career low: First fiscal year of Sony Ericsson with minus result
© Gulf Marketing Review 2007
