Motorola Mobility is to focus on ‘fewer but bigger strategic bets’ in future as it announced a new mid-tier handset featuring a 2GHz Intel processing chip.
Google’s acquisition of the company was completed in May, with Dennis Woodside installed as the head of its handset manufacturer business. Last month, Motorola Mobility announced plans to cut its global workforce by 20% and talks are underway with an unspecified number of the manufacturer’s 250 UK staff about potential job losses.
Motorola’s director of European marketing operations James Soames said that after the completion of its acquisition the manufacturer moved to streamline its processes, devices and headcount. He added: ‘The review of the company resulted in us placing fewer but bigger bets so we will support large scale launches [in future].’
The first of these launches was the RAZR i, a handset with a 2GHz Intel processor and 4.3-inch edge-to-edge screen. Soames said the mid-tier device would be aimed at the 45% of UK consumers who have yet to purchase a smartphone.
The manufacturer will work closely with partner retailers Orange, T-Mobile, Tesco, Phones 4u and Virgin Media in a bid to turn around its declining market share. Soames said: ‘Working with partners gives us a window of opportunity to make customers see that Motorola is back in a big way. We are putting a lot of money behind media advertising and a lot of money into sales channels.’
He said its field marketing team of ‘Motoagents’ would visit key stores and call centres, holding special events like pizza nights to showcase the new handset and its features. He added: ‘It’s essential we don’t just assume advertising will drive people to buy. We need to engage with sales staff. It’s essential that we win hearts and minds, not just at board member level but all the way through the organisation. Call centres are very important because in some instances they account for 60% of sales.’
Meanwhile, Soames refused to comment on how many UK jobs were under threat at Motorola. He said: ‘We take things like this very seriously and we are working with individuals who will leave the business to ensure they have generous severance packages. It’s important to treat them with respect.’
Editor: Graeme Neill