MICROMAX MOBILES

ADVERTISING IN

SUMMER TRAINING PROJECT REPORT SUBMITTED TOWARDS PARTIAL FULFILLMENT OF

MASTER OF BUSINESS ADMINISTRATION

Academic Session (2009-2010)
SUBMITTED TO: LECTURER SUBMITTED BY: ROLL NO. 9351690

ACKNOWLEDGEMENT

This report is based on the research undertaken as the part summer training project Advertising in Micromax Mobiles at Micromax Telecom Division, Micromax India Ltd.,Nehru Place, New Delhi. During the course of this project, I had the valuable opportunity to work on the live project based on GSM technology being executed by Micromax for its users or clients. I hereby acknowledge my deep regards to all the persons who actually took physical as well as mental work in the compilation of this project from Micromax Division. However some of them are those whose responses were of great nature, therefore they must endorse through this acknowledgement. I wish to express my sincerest thank to my external supervisor Mr. Anuj Gupta Manager-Marketing & Sales, Micromax India Ltd., Delhi. for his timely help, valuable comments, suggestions, spirited guidance and encouragement during the whole project.

Unfortunately, it is not possible to acknowledge the efforts of each of the individual who so graciously contributed there time and information in the compilation of the project. Whoever their efforts are highly appreciated.

PREFACE

The wide ambit of the project, which is the internal part of the BBA course, guaranteed me extensive exposure to various concept of GSM,CDMA ,Flip and other camera and video technologies among other things. Apart from these technical and non-technical aspect, I learnt the all important skills of team work, official communication, work ethic and responsibility. During the course of training we were expected to use and apply our academic knowledge to gain a valuable insight with all its environmental operational complexities. The said training offered a valuable opportunity to us to meet the academic knowledge and transform it into practical one. I undertook the said training at Micromax Telecom Division. During the training I did a survey aims at studying and analysis the current market scenario of mobiles, requirements of the customers about the features and its pros and cons, future needs of various mobile companies. I had the unique privilege to assume an assortment of role including problem identification, theoretical framework, research design, experimental design and setup, data collection, analysis and interpretation, observing findings and providing suggestions and recommendations etc. and also gained valuable experience of working in a formal industrial setup which would go a long way in building a sound career in marketing field in future. Also its is my heartful gratitude to Micromax for providing me their world class facilities and delightful work environment and ambience. In the report I have put my best efforts to compile the data to the highest level of accuracy and give my views to best of my judgment.

TABLE OF CONTENTS
1. Preface 2. Introduction 2.1. Industry Profile 2.2. Company Profile 2.3. Product Profile 3. Research Methodology 3.1. Research Objectives 3.2. Research Design 3.3. Sample Design 3.4. Methods of Data Collection 3.5. Data Analysis 4. Analysis and Finding 5. Limitations 6. Conclusions and Recommendations Appendices Bibliography

INTRODUCING MARKET

MICROMAX

MOBILES

IN

INDIAN

OBJECTIVE: To study micromax mobiles in Indian market and to identify their marketing strategies. INDUSTRY PROFILE:

Courtesy: IDC report on growth of mobile sales in India, 2009

The growth has more or less flat [owing to low sales figure in Q1] in total, 101.54 million units of sales were registered. Local manufacturers have grabbed 18.1% market share [from 0.9% in 2008]. Only 5 local manufacturers in 2008 and the number stands at 28 now.

Nokia market share in India fell from 56.2% share in 2008 to 54.1% in 2009.

Samsung Electronics Co. Ltds share rose marginally to 9.7% from 9.5%. LGs share dropped from 7.2% to 6.4%.

Of the local manufacturers, Micromax leads the race and holds a market share stands of 4.8%.

COMPANY PROFILE: Micromax Informatics Ltd is a New Delhi, India based Telecom manufacturer and distribution partner to Nokia, Samsung, LG etc for their IT / Telecom products in India. With an annual turnover of INR 5000 million, Micromax has offices in all major India cities and global offices in Dubai and USA.Micromax has been making supplies to the Indian GSM operators for their different telecom requirements and is now expanding their product range to the global markets. Micromax's products comes with a qualty seal meaning product satisfaction, high relieability resulting in repeated business. Micromax has their own 24 hour operational customer service centre just in case you need that small bit of information albeit at the wrong hour.

MARKETING METHADOLOGY: Micromax, started operations in 1991 as an embedded software design firm, but was incorporated as a company in 1998, when it branched out as a distributor of computer peripherals such as printers, monitors, scanners from manufacturers such as LG, Sony Inc., Dell Corp.We hope to be present in at least one country each in Latin America, Middle East and Africa before the end of the financial year, Jain said. Geographical Segmentation: The firm has identified Brazil, Nigeria and Dubai as target markets. Micromax specialized in entry-level and midsegment handsets priced between Rs1,800 and Rs2,400 when it started selling the devices in 2008, confining itself to small towns and rural areas in

the first 12-18 months. One of the major aspects that contribute towards the substantial monthly growth of Micromax is its 80% sales in the rural areas.

Micromax is planning to expand its range in keeping with new market demands. It is readying several high-end handsets, including phones that will run on Googles Android and Microsofts Windows Mobile operating systems (market stretch). The handsets are expected to be available in April or May, Jain said Having gained traction, Micromax is also working on a strategy to create awareness in the metros, which includes tying up with MTV for co-branded phones. Distribution channels: Once you have established a good distributor network and sales are robust, the next logical step is branding exercises to ensure consistent brand re-call among your target consumer base, said Romal Shetty, executive director and head telecom practice at audit and consulting firm KPMG India. Encouraged by its success, the firm expanded to larger cities and now has a distribution network of 55,000 retailers, which it plans to scale up to 70,000 by the end of March as part of its strategy to raise sales to 1.5 million handsets a month.

Branding: Micromax has also tied up with a Bollywood celebrity who will be announced shortly as brand ambassador, Jain said. Bollywood star Aamir Khan endorses Samsung phones. The Micromax phones are designed by the in-house research and development team, as is the embedded software. The on-board chips come from MediaTek Inc., Qualcomm Inc. and Infineon Technologies AGthe

last two also count Nokia as a client. Manufacturing is outsourced to about 11 factories in Taiwan, South Korea and China. Micromax has invested Rs100 crore to set up a plant in Baddi in Himachal Pradesh as it feels outsourcing manufacturing completely leaves the door open for supply-side uncertainties. Production will be scaled up from an initial 50,000 per month. Micromax is one of the leading Indian Telecom Companies with 23 domestic offices across the country and international offices in Hong Kong, USA, Dubai and now in Nepal. With a futuristic vision and an exhaustive R&D at its helm, Micromax has successfully generated innovative technologies that have revolutionised the telecom consumer space. Micromax is on a mission to successfully overcome the technological barriers and constantly engender life enhancing solutions. The companys vision is to develop path-breaking technologies and efficient processes that incubate newer markets, enliven customer aspirations and continue to make Micromax a trusted market leader amongst people. The Micromax ideology stems from its rooted belief in Innovation and delivering nothing short of the best. Product line: Micromax has a lot of firsts to its credit on their versatile product portfolio. It was the first to introduce: Handsets with 30 days battery backup, Handsets with Dual SIM / Dual Standby, Handsets Switching Networks (GSM - CDMA) using gravity sensors, Aspirational Qwerty Keypad Handsets, Operator Branded 3G Handsets, OMH CDMA Handsets, etc

Promotion: With a 360 degree advertising (media, internet, TV and print media) and marketing strategy sketched out, the company has an optimistic outlook for the telecom consumer space. Currently present in more than 40,000 stores across the country, the company plans to have an aggressive market incursion to reach out to its customers through 70,000 operational stores in the coming year. After building a strong presence in the rural market, where the prominence of both subscribers and operators is rapidly increasing, Micromax is now progressively moving towards establishing its foothold in the competitive urban towns as well. With young enthusiasts as its anchor, Micromax Informatics Limited has created a niche for itself in the telecommunication industry. Micromax ventured into the telecommunication industry with an end-to-end solution of Fixed Wireless Devices and Wireless Data Cards. In the year 2008, after delivering upon the technology of fixed wirelesspowering desired products, the company forayed into one of the most predominant genres of telecommunication Mobile handsets. Since then Micromax has received commendable response for its unique and interesting handsets. Innovation, Cost-Effective, Credible and an Insightful R&D, have now become synonymous to Micromax in the telecom vertical. Today Micromax has become a brand which people relate and look up to for realizing their individual device preferences and other out-of-the-box solutions.

Vision
Micromax India's Vision entails helping people improve the quality of their lives by providing them with superior quality, state-of-the-art technology products at the right time and the right price. But beyond its role as a purveyor of quality products in India, Micromax seeks to contribute to the economic growth of the country though its export commitments and large scale production facilities generating secured employment for hundreds of Indian people. At Micromax, we strive to contribute to the development of the electronics and components industry in India by enhancing the knowledge levels of our workforce through the introduction of our advanced management systems and production know-how in our manufacturing facilities by introducing our Indian vendors to our world class quality systems and helping them in improving them in their own quality systems and production processes and setting benchmarks for the industry both in terms of after sales

service for our products, quality systems and management techniques at our facilities or our products themselves. At Micromax, we believe in returning to the community some of the profits we earn from it, through the social causes we espouse. We view ourselves not as an MNC operating in India, but as an 'Indian Company' operating here, conforming to the laws of the country and committed to working for the Indian community. We want and to be seen as the 'Most Respected' Indian Company.

Value & Philosophy

What makes MICROMAX one of the world's leading companies?

How we got here

Ever since it was founded in 1938, MICROMAX has continually refined its mission statement to respond both to change in itself and in the world: "Economic contribution to the nation," "Priority to human resources," "Pursuit of rationalism." Each slogan represents significant moments in MICROMAX's history, reflecting different stages of the company's growth from a domestic industrial leader into a global consumer electronics powerhouse.
In the 1990's, we once again acknowledged the need to transform our mission statement to keep pace with our growing global operations, rapid changes in the world economy, and escalating competition from well-established rivals.

Our Management Philosophy "We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society." Our management philosophy represents our strong determination to contribute directly to the prosperity of people all over the world - a single human society. Key to our efforts is our own people, whose talent and creativity are dedicated to doing their best at all times. Technology also plays an important role in making it possible to achieve higher standards of living. And superior products and services are what we are all about. We believe that the success of our contributions to society and to the mutual prosperity of people across national boundaries truly depends on how we manage our company. Thus, we challenge the world to create the future with our customers. Our determination is growth - a perpetual challenge - but always working within the context of cooperation and inclusion of our customers.

Research & Development

The companys thrust on Product Innovation and R&D have given the company a competitive edge in the marketplace. Micromax has set up Micromax India Software Centre (SISC) and Micromax India Software operations unit (SISO) for software development at Noida and Bangalore respectively. While the Micromax India Software Centre in developing software solutions in Micromaxs global software requirements for hi-end television like Plasma and LCD TVs, SISO is working on major projects for Micromax Electronics in the area of telecom: wireless terminals and infrastructure, Networking, SoC (System on Chip) Digital Printing and other multimedia/digital media as well as application software. In addition to working on global R&D projects, SISO is also helping Micromax Indias CDMA business by focusing on product customization for the Indian market. While the Micromax India R&D Centre has around 300 employees, SISO currently employs over 800 highly skilled professionals.

With an investment of over USD 100 million, SISO is charting out major growth plans in the country, with its current focus being in the 4G & Multimedia area. SISO has already applied for 145 patents based on the software development carried out here in India. In fact, SISO has a special Intellectual Property Team working on securing Patents for its breakthrough projects. SISO plans to continue its focus on Multimedia & Protocol development; build a strong competency in technology and focus on WCDMA technology and User Interface. Micromax India is also carrying out Hardware R&D at its Noida R&D Centre. The focus of the R&D Centre is to customize both Consumer Electronics and Home Appliance products to better meet the needs of Indian consumers. From colour televisions designed for higher sound output, to washing machines with special Saree Wash Course, DNIe vision series of Flat CTVs especially designed for the Indian market to Micromax mobiles with regional language menus, the Micromax R&D Centres in India are helping the company to continuously innovate and introduce products customized for the Indian market.

WIRELESS INFRASTRUCTURE

Overview
Architecture point of view,UMTS logically is divided into CS Domain and PS Domain. CS Domain refers to the set of all CN entities offering CS type of connection for user traffic as well as all the entities supporting related signaling. PS Domain refers to the set of all CN entities offering PS type of connection for user traffic as well as all the entities supporting related signaling. The network elements MSC and GMSC belongs to CS domain whereas the elements SGSN and GGSN belongs to PS domain.

UMTS
UMTS Core Network is a Third Generation (3G) mobile communications systems being developed by Micromax within the framework defined by the ITU and known as IMT-

2000. UMTS will deliver low-cost, high-capacity mobile communications offering data rates as high as 2Mbit/sec under stationary conditions with global roaming and other advanced capabilities. 3G core network system enables users to transmit voice, data, and even moving images. In order to realize these services, 3G improves the data mission speed up to 144Kbps in a high-speed moving environment, 384Kbps in a low-speed moving environment, and 2Mbps in a stationary environment. 3G provides services like Internet connection, transmission of large-scale data and moving contents photographed by digital cameras and videos, and software downloading. Architecture point of view, logically is divided into CS Domain and PS Domain. CS Domain refers to the set of all CN entities offering CS type of connection for user traffic as well as all the entities supporting related signaling. PS Domain refers to the set of all CN entities offering PS type of connection for user traffic as well as all the entities supporting related signaling. The network elements MSC and GMSC belongs to CS domain whereas the elements SGSN and GGSN belongs to PS domain. The concept of 3G wireless technology represents a shift from voice-centric services to multimedia-oriented (voice, data, video, fax) services. Heavy demand for remote access to personalized data is fueling development of applications, such as the Wireless Application Protocol (WAP) and multimedia management, to complement the 3G protocols.

2.2COMPANY PROFILE Micromax Electronics India Software Operations (SISO):

Micromax Electronics India Software Operations (SISO) was set up in February 1996 in Bangalore as a liaison office. Since its inception SISO has grown to over 500 Software Engineers working on R & D projects in the latest technology areas.

SISO as an organization is involved in the business of developing software for Micromax Electronics Corporation technology solutions in a variety of different areas. part of the Micromax Electronics R & D organization. As a CMM Level 5 Assessed and an ISO 9001 Certified company, quality underlines every aspect of our organization. This commitment to quality combined with innovative technology designed for Indian conditions and an infrastructure second to none, has contributed to Micromax's success in the global market since 1996. SISO is

OUR CONTRIBUTION In the short period of a little over half a decade that the organization has been operational, SISO has contributed in a big way towards a number of key projects. Cutting edge technologies like 3G Wireless, Broadband, Intelligent Appliances for Home Networking, Multimedia, Networking etc... have been some of the focus areas for the company. During this period of about 7 years, the organization has grown in strength in terms of numbers as well as in terms of the expertise that it possesses in certain key technology domains. Today, SISO's engineers are involved in many of Micromax's highly strategic and important projects. The company boasts of a highly talented and motivated work force who have been constantly enriching their knowledge and skills. SISO's well defined goal of 'Being a partner today and a Leader tomorrow' is being aggressively pursued by the management. Therefore, in certain areas like 3G Wireless, SISO as an organization is being identified as a key development center within all of Micromax's global labs. The company is striving hard at getting such recognition in other areas as well - like 'Home Networking/Intelligent Appliances', 'Networking' and 'Embedded Software'.

Electronics industry
AFFILIATED COMPANIES MICROMAX SDI MICROMAX Electro-Mechanics MICROMAX Corning MICROMAX Corning Precision Glass MICROMAX SDS MICROMAX Networks

MICROMAX electronics subsidiaries include MICROMAX Electronics, MICROMAX Electro-Mechanics, MICROMAX SDI, MICROMAX Corning, MICROMAX SDS, MICROMAX Networks and MICROMAX Corning Precision Glass. These affiliates produce, market, and sell a wide variety of electronic parts and components such as next generation memory chips, computer and telecommunications equipment, color TV picture tubes, and glass bulbs. They also develop computer systems and produce general electronics and precision machines. All these companies share the same goal of becoming world-class, high-tech companies at the beginning of the 21st century and are concentrating their investments into promising future fields to achieve that target. Despite being independent, systematic cooperation takes place between the companies that enables the development of state-ofthe-art electronic products.

MICROMAX Electronics Announces 2005 Second-Quarter Earnings

Micromax reports quarterly sales of KRW13.59 trillion, Operating income of KRW1.65 trillion and net income of KRW1.7 trillion.

SEOUL, Korea? July 15, 2005: Micromax Electronics Co., Ltd. announced its financial results for the second quarter of 2005. The company recorded sales of KRW13.59 trillion, operating income of KRW1.65 trillion, and net income of KRW1.7 trillion, representing a 2% drop, 23% decrease and 13% rise, respectively, from the previous quarter. Despite a drop in prices of some of its main products, such as memory chips, the company was able to maintain sales of more than KRW13.5 trillion due to the growth of the LCD and Digital Appliance Businesses. While operating profits decreased, net income rose because of gains from Micromax Card's turnaround, which was incorporated through valuation using equity method of accounting. Sales and operating income of the Semiconductor Business decreased slightly to KRW4.2 trillion and KRW1.1 trillion, respectively, because of a seasonal decline in DRAM and NAND flash memory prices. However the business continued to maintain high margins of over 26%, and the company expects improved performance in the second half with stronger demand for PCs. In addition, a boost in demand for high capacity NAND flash memory is expected with the introduction of new MP3 players and digital cameras with higher pixel counts. The Telecommunication Network Business posted sales of KRW4.5 trillion and operating income of KRW530 billion, representing a decrease of 8% and 37%, respectively. The drop is attributed to increased marketing spend to counter growing competitiveness. Micromax sold 49 million phones in the first half despite a stagnant domestic market and slow-down in the growth of the overall mobile phone market. The

company expects stronger performance in unit sales and ASPs in the third quarter with the launch of new premium products. The LCD Business reported revenue and operating income figures of KRW2.1 trillion and KRW12.7 billion, respectively. The company expects its performance to improve in the third quarter as demand for LCDs increases. Plans for the full ramp-up of SLCD' s 7 th -generation line are on schedule, which will contribute to the increased sales of 32-inch and larger LCD TV panels. Digital Media Business sales decreased to KRW1.6 trillion and posted a KRW50.0 billion operating loss because of the seasonal downturn. Sales of its Digital Appliance Business grew 27% to KRW1 trillion and operating income at KRW30.0 billion returned to the black from increased sales of air-conditioners. Dr. Woosik Chu, Senior Vice President and General Manager of the IR Team, states, Despite the challenging business environment and depressed market conditions , sales remain at similar levels from the prior quarter and operating profit figures met the market's expectation, demonstrating th e inherent strength and competitiveness of Micromax's business model . He add s , With demand for IT products expected to return and steady growth in our DRAM, NAND Flash, LCD and mobile phone businesses, Micromax Electronics anticipates improvements in both sales and operating profits in the second half of 2005 .

Revenue by Business
Growth Buisness 2Q04 1Q05 2Q05 YoY (%) QoQ (%)

Semiconductor

4.58

4.48

4.17

(9)

(7)

Memory

3.57

3.54

3.22

(10)

(9)

System LSI

0.62

0.45

0.45

(28)

LCD

2.47

1.90

2.12

(14)

12

Telecommuniction Network

4.94

4.84

4.46

(10)

(8)

Mobile Phone

4.61

4.56

4.19

(9)

(8)

Digital Media

1.99

1.66

1.61

(19)

(3)

Digital Appliance

0.89

0.79

1.00

13

27

Total Revenue

14.98

13.81

13.59

(9)

(2)

Table 1.1

Retaining customers
Micromax considers 'After Sales Service' as a key differentiator for Micromax products. In order to deliver prompt and easily accessible service, Micromax India has set up a widespread network of company owned as well as Authorized Service Centers to service its customers. The Micromax Service Plazas, as the Company owned Service Centres are called, are a first in the industry. The Micromax Service Plazas serve as a one-stop shop for Micromaxs walk in customers. Customers also get a chance to see the Micromax range of products and interact with Micromax product specialists to know more about the companys products and services. Micromax is also increasing, the number Micromax Prestige Service Plazas in smaller cities like Ludhiana & Coimbatore to reach out to its customers. To satisfy the needs of its Home Appliance customers, Micromax has set up state-of-theart Home Appliance Service Centres in 19 cities that are equipped with latest testing and measuring equipments for servicing only Home Appliance products. Speed, Smile, Sure is the motto for Micromax Service, as the Company seeks to satisfy more and more of its customers with prompt and accurate service. The company adheres to a turnaround time of 24 hours within the city where the Micromax Service Centre is located. A Service Helpline number 30308282 gives access to Micromax Service throughout the country. Micromax India organizes a Free Service Camp on an All India basis, every year, for proactively reaching out to customers and servicing their Micromax products. 10 second to loose a customer, 10 years to gain them back forms the guiding principle for Micromax Service Team as it strives to satisfy the growing expectations of Indian customers.

MICROMAX group timeline and history

Pioneering the digital age (2000 ~ Present) With the start of the second millennium, MICROMAX begins its second century. Humanity must now successfully manage the opportunities and challenges resulting from the new and quickly changing digital paradigm with equally revolutionary changes in the rules it uses to do business. Currently, MICROMAX Group is undergoing changes in its business structure, management perspective and systems, and corporate culture to meet a global standard. We regard the digital age as having both incalculable potential and risks. It's a time of intense competition-fortunes can be made or lost in the blink of an eye. However, at MICROMAX, we see challenges as opportunities. Which is one reason we believe that we are perfectly positioned to be one of the world's recognized leaders in digital technology. Our commitment to being "World's Best" has succeeded in securing the number one global market share for thirteen of our products. Our target is nothing less than to have thirty number one "world products" by 2005, adding digital TVs, IMT 2000, and printers to our current world market leaders-semiconductors, TFT-LCDs, monitors and CDMA mobile phones. At the same time, we are making historic advances in research and development of our overall semiconductor line, including flash memory and nonmemory, custom semiconductors, and DRAM and SRAM. For example, MICROMAX Electronics, which has been among the world's top 10 in US patents for four consecutive years, has 13,000 researchers representing a US$ 1.7 billion investment in Research and Development. In the financial market, MICROMAX is also committed to being the World's Best. MICROMAX Card has been selected as the "Best Card Company in the New Millennium" by Master Card, the result of securing more than 1 million members within

one year through the release of "Aha Loan Pass," the first loan-only card in Korea. Euromoney has also selected MICROMAX Securities as the "Best Security Company" for the 3rd consecutive year. And MICROMAX Life Insurance has ranked as 10th largest company by Fortune's "Global 500" in the Life/Health insurance category We are also actively promoting our brand value, a key engine of business growth. MICROMAX's brand value increased to US$8.31 billion in 2002 from US$6.37 billion in 2001 and was recognized by Interbrand Corporation as the fastest growing global brand. How did we make such astounding progress in such a short time? One answer is that we are perpetually engaged in achieving global competitiveness through continually improving our financial structure and profitability and looking at the structure of our organization. Reducing production costs and working hard to maintain our brand image have also contributed mightily to our surge. Accordingly, MICROMAX Electronics has secured a nation's credit rating from S&P and Moody's while MICROMAX Fire also has been recognized by S&P for its stability and growth potential and has received its second consecutive A rating.

Another clue to the quick pace of our development goes to the heart of our management philosophy "We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society." Our active participation in various sports events around has helped promote community spirit as well as returning corporate profits to society. As a Worldwide Olympic partner in the wireless equipment sector for the 2000 Sydney Olympics, MICROMAX provided 25,000 advanced digital wireless telecommunication devices including mobile phones. We also have served in that capacity at the 1999 Nagano Winter Olympics, and will be a Worldwide Olympic Partner in the 2006 Torino Olympics and 2008 Beijing Olympics. We actively participate as a contributor in the Asian Games, MICROMAX Nations Cup Riding Competition, MICROMAX Running Festival, MICROMAX World Championship (a U.S. LPGA Tour), and many other sporting events around the world.

In 2000, MICROMAX started its management program with a new twist and aimed to stay ahead of the great waves of digital changes now engulfing the world. We expect nothing less than to lead the digitalization of society with our advanced technologies, competitive products, and professional human resources.

2.3PRODUCT PROFILE
Overview Towards realizing the vision of Micromax Electronics to become one of the leading handset manufacturers in the world, Micromax India Software Operations (SISO) is an important cog in the wheel. Telecom Team at SISO is involved in designing and building software for the mobile terminals encompassing the current and future technologies, and the applications therein, for Micromaxs latest mobile handset equipments.

Expertise in the Handset Technology Engineers at SISO are involved in building mobile handset software for a variety of standards, established and emerging, such as GSM/GPRS dual mode handsets, CDMA 2000 1x (and variations thereof such as EV-DO, EV-DV etc.),WCDMA protocol stacks, dual mode handset software (CDMA2000 1x and WCDMA) and all important interoperability issues. The much touted applications such as multimedia environments and functionalities in the third generation wireless standards (3G) are a key focus area at SISO. Customization of CDMA phones to cater for an Indian scenario is one of the high priority things at SISO. Work is going on towards developing user interfaces for software applications in local languages. To deliver world class quality software, the testing team rigorously tests and evaluates the product, before delivering it to the customer.

SISO believes that "Innovation is not only useful, it is the only way to move up the technology value chain in the rapidly changing wireless business environment". Engineers are encouraged and motivated to think and patent new, innovative and useful ideas relevant to the business environment the work so far has resulted in numerous patent filings.

Technical info GSM

Concept of GPRS General packet radio services (GPRS) is a standardized packet-switched data service for GSM network. With the packet-switched technology, GPRS increases data transmission speed from 9.6kbps to a maximum of 114kbps for uses in the mobile Internet. It will allow GSM operators to take a share of the rapid growth of Internet usage and position the cellular service as a mobile access to the information society For end-user GPRS Presents: Always in connection with P or X.25 networks Increased performance for up to 114 Kbps Fast set-up/access time

End-user's Benefit "Better price than current WAP" and "faster data transmission speed" are the highly valued features of GPRS

GPRS Radio Resources Several end-users will share GPRS radio resources, resulting in much better channel utilization than with circuit-switched data communication. The user may remain connected as long as desired but is only charged for the volume of data received and/or transmitted. GPRS uses radio channels to packet-switched or circuit-switched traffic. For the purpose of data communication purposes, packet-switching is superior to circuitswitching due to its ability to transmit bursts of data. There is no need to reserve, establish or keep a path open for data. This results in faster call set-up time and allows users stay online indefinitely, while only being charged for the amount of data actually transferred.

Micromax launches the Worlds Best Mobile Phone, Micromax W900 in the Indian market

Global digital technology leader, Micromax Electronics announced the launch of the Worlds Best Mobile Handset, the W900 in the Indian market. The W900was selected as the Worlds Best Mobile Handset at the 3GSM Association World Congress at Cannes in February 2005, amongst 480 initial entries. This new tri band, Mega pixel Digital Integrator from Micromax combines a modern design, exceptional functionality and the latest imaging technology. Priced at Rs.22,499/-, the W900 integrates the pinnacle of Micromaxs industry leading innovations in its soft touch slide up style, including 96MB of user memory; a 1.3 Mega pixel camera; 2,62,000 color, 1.9 inch TFT LCD screen of the phone for remarkable color and clarity of images; video recording and messaging; Blue tooth, email and sync connectivity; 64 polyphonic ring tones; an enhanced voice clarity speakerphone; and an MP3 Player music player making the W900 the most valuable companion in the industry.

The W900 besides supporting messaging in Hindi, Marathi, Tamil, Bengali and Punjabi, is the first phone in the industry to support menu in Gujarati and Kannada language.

Announcing the launch of the W900 in the Indian market , states Mr. H C Ryu, Director, Sales & Marketing (HHP), Micromax India, We expect to fuel the growth of the colour and camera phone segment in the country by launching our World Best, leading technology, innovative products in the Indian market. We expect to achieve the No.1 position in the premium segment of the mobile handset market in the country by the Year 2007. Micromax, which is a dominant player in the colour phone market in the country, expects 80% of its handset sales this Year to come from the colour phone segment. We plan to sustain the excitement in the marketplace by launching new, leading technology , wow models every quarter. states Mr. Ryu. In the first Quarter itself, the Company has introduced 8 new handset models in the country.

Team Micromax members launch the Worlds Best Mobile Phone- Micromax W900 at the LIFW 2008 Irfan Pathan, Mohd Kaif and Virender Sehwag participate New Delhi, 21st April 2005: Team Micromax cricketers - Irfan Pathan, Mohd. Kaif and Virendra Sehwag will launch the Worlds Best Handset, Micromax W900 during the Micromax Show at the Lakme India Fashion Week. The Micromax W900 Mobile Handset has been rated as the Worlds Best Mobile phone by the 3GSM Association World Congress held at Cannes in February 2005. The Theme for the Micromax Show is The Best Thing Says Everything in keeping with the positioning of Micromax W900 Micromaxs latest and path-breaking mobile phone.

Leading Fashion designers - Manish Arora, Nandita Basu, Nikhil& Shantanu, Rohit Gandhi & Rahul Khanna and Rina Dhaka are coming together to create a sparkling and magnificent Show this evening. Leading models like Fluer, Nina, Sapna, Sampada, Binal, Sonalika Sahay, Neha Kapur, Tupur, Michelle, Poonam, Laxmi, Shivani Kapur, Deepika Padukone, Moni Kangana Dutta and Nolana will participate in the Show, which is being choreographed by Harmeet Bajaj.

Awards GSM

Best model product to made the minimum electronic wave 60 Million De La Consommateur magazine.

Best Brand in France. Micromax phones chosen the best consumer product by French consumer alliance. satisfaction

PRODUCT | X505

Form Factor

Bar Style

Band

GSM/EGPRS/ 900/1800/1900

Dimensions

104.8mm*56mm*12.9mm

Display

7.1cms TFT QVGA(240*320) Full Touch Screen

Camera

2.0 MP

Music

Multi Format Music Player

3.5mm Jack

Yes

Opera Mini

Yes, integrated

Nimbuzz

Yes

Snaptu

Yes

Stereo FM Radio

Yes

Video Player

Yes(AVI/3GP/MP4)

Video Recorder

Yes

Messaging

Yes, SMS /MMS/EMS

Games

Yes

Bluetooth(A2DP)

Yes

Email

Yes

JAVA

Yes

EGPRS/WAP/MMS

Yes

Phonebook Memory

1000

Expandable Memory

MIcroSD (upto 8GB)

Battery Type

Li-ion 900mAh

Talk Time

Up to 3 hours*

Standby Time

Up to 5 days *

PRODUCT X 600

Form Factor

Bar Style

Band

Dual GSM-Dual-Band (900/1800 MHz)

Weight

110g

Dimensions

113mm*56mm*12.7 mm

Display

262K TFT QVGA Screen (320*240 Pixels, 8.1cms) Full Touch keypad

Motion Sensor

Yes, Gravity Sensor enabled

Camera

Yes, 2.0 MP

Music

Yes

Facebook

Yes, integrated

Opera Mini

Yes, integrated

Multi-Messenger Nimbuzz

Yes

Stereo FM Radio

Yes

Video Player

Yes

Messaging

Yes, SMS /MMS

Email

Yes

Bluetooth(A2DP)

Yes

EDGE/GPRS/WAP/MMS

Yes

Phonebook Memory

1000

SMS Memory

1000

Expandable Memory

MicroSD (upto 4GB)

Battery Type

Li-ion (1000mAh)

Talk Time

Up to 5 hours*

Standby Time

Up to 8 days*

PRODUCT Q3

Factor

Bar Style

Band

Dual GSM-Dual-Band (900/1800 MHz)

Weight

97g

Dimensions

111.2*61.2*13mm

Display

262K Color TFT (176*220 Pixels, 5.58cm) 5-way navigation key with Full QWERTY keypad

Camera

Yes, 1.3 MP

Music

Multi Format Music Player (MP3 / AMR / MIDI / WAV) Background Music Playback Flight Mode

Stereo FM Radio/Recorder

Yes

Speakerphone

Yes

Messaging

Yes, SMS / MMS

Games

Yes

Bluetooth(A2DP)

Yes

Conference Call

Yes

Speed Dial

Yes

STK

Yes

GPRS/WAP/MMS

Yes

Phonebook Memory

1000

SMS Memory

1000

Internal Memory

10MB

Expandable Memory

MicroSD (upto 2GB)

Battery Type

Li-ion 1000mAh

Talk Time

Up to 4 hours*

Standby Time

Up to 160 hours*

3.RESEARCH METHODOLOGY
Research is the systematic and objective search for the analysis of the information relevant to the identification and solution of any problem in the field of channel development. The objective behind this project was to get a deep insight into the answers To the questions what are the general problem faced by the subscribers and what they expect from mobile handsets providers and study of current mobile market.The object of the survey were the mobile users of various mobile companies.

Methodology Used
The data was collected through both the primary as well as secondary sources. The primary source of the data is the users of various mobile handset users. The sources of secondary data are the websites and company catalogues.

3.1 RESEARCH OBJECTIVES MAIN OBJECTIVE o Analysis of current market scenario of mobile market with special reference to MICROMAX IND.MOBILES. SUB OBJECTIVES o To study the satisfaction level of cellular users in Sahibabad. o To study the buying behaviour of the customers. o o To understand the price sensitivity of the markit in respect to the telecom services. To identify customers opinion about Micromax Handsets. o To identify the key buying factors which are used in hiring the telecom services. o To understand the various sales promotional schemes being offered by various mobile handsets providers.

3.2 THE RESEARCH DESIGN Steps followed for this research was: 1. Problem Formulation: This refers to transferring of the management into a research problem. The management was to gauge the behavior

problem 2.

of consumer in respect of mobile market. Research Method: It involves choosing either experimental or nonexperimental research. This research was non-experimental.

3.

Research Design: It is the specification of the methods and procedures for

acquiring he information needed. It is overall operational pattern or framework of the project that stimulates what information is to be collected, from which source and by what procedure. The three types of design used are exploratory, descriptive and causal for this research the descriptive design was used. This is because it is marked by the prior formulation of specific research questions. It has a preplanned and structure design. For descriptive study proposed data analysis and project output are critical aspects. It was decided that the users of various mobile companies would be used as the primary source of data. 4. Selection of data collection techniques: For this research the data was to be collected was of primary as well as secondary nature. The source of primary data was the user of various mobile companies. Thus the data collection was done through a survey by using questionnaire technique. This consisted of an interview and questionnaire. The questionnaire contained the questions relating hiring and uses of different mobile handsets. The questionnaire was first pre tested and later making certain necessary changes in modified it. 5. Sample Design: A sample chosen has to be representative of the population. For this survey cluster and stratified sampling was used. The sample size was more than 500 users and 50 retailers. 6. Data collection: At this stage the data is actually colleted according to the decided technique of data collection. The questionnaire is main source for the collection of data. 7. Analysis and interpretation: Data which has been obtained are seldom useful to anyone, if it is not analyzed and interpreted in order, the breaking down of constituent parts and the manipulating of the data and to obtain answer to the research questions. Interpretations involve taking the result of analysis, making inferences relevant to the research relationship studied and drawing conclusions about these relationships. 8. Research report: The culmination of the research process is research report. Methodology, report and recommendations for course of action are presented. The two critical attribute of report are completeness and conciseness.

Therefore these attributes are conflicting; a balance has to be stuck between the two. On presenting the research report to the management. The management should be able to take decision on recommendations and conclusions of research.

3.3 METHODS OF DATA COLLECTION

The task of the data collection begins after research problem has been defined and research design/plan chalked out. While deciding about the method of the data collection to be used for study, the researcher should keep in mind two types of data primary and secondary.

1.

Sources of Data: a) Primary Data: We collect primary data during the course of experiments in an experimental research but in case do research of the descriptive type and perform surveys, then we can obtain primary data either through observation or through direct communication with the respondents in one form or another or through personal interview. Since the research is of descriptive type in witch data is collected through direct communication with respondents. Sample survey is carried out during this project. The survey was performed through a structured questionnaire. b) Secondary Data: secondary data means data that are already available i.e. they refer to the data which have already been collected by someone else. The sources of secondary data in this project were the websites of various mobile providers, catalogues of various mobiles, newspapers, magazines etc. 2. Method adopted in research:

The survey method was used for this research project. A general survey was conducted together the required data. 3. Research tool used: Questionnaire was used to collect the data from the users of various mobile handsets. a) Method of population Selection: The population for this survey was selected with the help of cluster and stratified random techniques. In cluster, we divided the sahibabad colony wise then we applied stratified. b) Method of Interaction with the population: Personal visit method is used for this research project. The respondents were the users of various mobiles. These respondents were approached and requested to give their opinion on the mobile handsets providers by answering in the questionnaire. We meet all retailers and whole sellers of Micromax India mobiles And try to find out their problems. We also observe that the advertising materials are well placed or not. Advertising material means posters, banners and hoardings. In interaction with population we were applying these marketing strategies:

Advertising In this section we advertise our products (mainly new launchings) and say to customer our services qualities and brand features.

We conduct road shows and distribute leaflets and banners. Sales We sale our product in two ways: a) Direct Sale: In direct sale we search the customers and motivate them for using Micromax mobiles. b) Whole Sale: In whole sale we go in market, try to make poses. We motivate these sellers for bulk sale. Some gifts are allows to these sellers if they achieve the target.

3.4DATA ANALYSIS Analysis of data is a process of inspecting, cleaning, transforming, and modeling data with the goal of highlighting useful information, suggesting conclusions, and supporting decision making. Data analysis has multiple facets and approaches, encompassing diverse techniques under a variety of names, in different business, science, and social science domains.

4. FINDINGS AND ANALYSIS

Mostly people are attracted towards Micromax mobiles due to good reputation and low initial investment in color and flip handsets. More than 50% users have switched over to Nokia and others due to unavailability of Connectivity and memory expansion devices. Handset Dimensions (whd) and excellent Build Quality are the perfect consideration in Micromax Mobiles when buying a cell phone. More than 50% users could not avail India-speaks facility due to lack of knowledge about its function thus it reveal that is a desirable attribute of Micromax Handsets.

Near about 30% color mobile users switch over to other mobiles due to their good performance of standby time and talk time.

Ergonomics is very helpful to understand the interface in these mobiles and it also makes customers.

More than 70% users are attracted to the support for cellular and multimedia standards.

One feature that most of the users probably prefer more than anything else is light weight of these handsets. FINDINGS | AGE GROUP OF RESPONDENTS Age Group Respondents
15-25 26-35 36-45 above 45

Respondents (%)
38 27 19 16

Age group of respondents

15 - 25 16% 19% 27% 38% 26 - 35 36- 45 above 45

Figure1.1

FINDINGS | OCCUPATION OF RESPONDENTS

Occupation of Respondents
Businessmen Students Doctors Engineers Govt. servant Housewives Executives Traders Others

Respondents (%)
30 20 18 8 8 2 7 5 2

Occupation of respondents
2% 30%

8% 8%

2%

7% 5%

18%

20%

Figure1.2

FINDINGS | INCOME GROUP Income Group (yearly)

Less than 50000 50000-150000 150000-300000 300000 & above

Respondents (%)
48 25 16 11

Income Group

11% 16% 25% 48%

Less than 50000 50000-150000 150000-300000 300000 & above

Figure1.3

FINDINGS | MOTIVE BEHIND USING MOBILE Motive

Communication Snob value Good facility others

Respondents (%)
55 12 31 2

Motive behind using mobile

2% 31% 12% 55%

C ommunication Snob V alue Good facility as compare to PNT Others

Figure1.4

FINDINGS | DURATION OF USING MOBILE Duration of using mobile

Less then one year 1-2 year 2-3 Year 3 & above

Respondents (%)
42 22 21 15

Duration of using mobile

15% 21% 22% 42%

Less than one ye ar 1-2 year 2-3 year 3 & above

Figure1.5

FINDINGS | MOBILE OWNERS Mobile Owners

B/W Color Bar Color Folder Bar Camera Folder Camera High-end Camera Phone

Respondents (%)
30 20 14 16 9 11

Mobile Owners
B/W Color Bar Color Folde r Bar Cam era Folder Cam era High-e nd Cam era Phone

9% 16%

11%

30%

14%

20%

Figure1.6

FINDINGS | USERS OF CAMERA User of Camera

Yes No

Respondents (%)
47 53

Frequency

Respondents (%)

Once in a Day Once in two Day Once in a Week Occasionally

50 23 10 17

users of Camera

Yes 53% 47% No

Frequency of accessing Camera

Atleast once a day 17% 10% 23% 50% day Once in a w eek Once in tw o

Figure1.7 & Figure1.8 FINDINGS | USERS OF VIDEO Respondents (%) User of Video
Yes No 28 72

Frequency

Respondents (%)

Once in a Day Once in two Day Once in a Week Occasionally

15 10 19 56

users of Video

28% 72%

Yes No

Frequency of accessing Video

Atleast once a day 15% 56% 10% 19% Once in tw o day Once in a w eek Occas ionally

Figure1.9 & Figure1.10 FINDINGS | USERS OF FM User of FM

Yes No

Respondents (%)
18 82

Frequency
Once in a Day Once in two Day

Respondents (%)
76 15

Once in a Week Occasionally

5 4

users of FM

18% Yes No 82%

Frequency of accessing FM
Atleas t once a day 5% 4% 15% 76% Once in tw o day Once in a w eek Occasionally

Figure1.11 & Figure1.12

FINDINGS | USERS OF GPRS User of GPRS

Yes No

Respondents (%)
36 64

Frequency
Once in a Day Once in two Day Once in a Week

Respondents (%)
6 19 18

Occasionally

57

users of GPRS

36% 64%

Yes No

Frequency of accessing GPRS

Atleas t once a day 6% 57% 19% 18% Once in tw o day Once in a w eek Occasionally

Figure1.13 & Figure1.14

FINDINGS | AWRENESS ABOUT NEW LAUNCHINGS Awareness

Yes No

Respondents (%)
42 58

Source of information
Media Retailer Friends

Respondents (%)
46 30 18

others

Awareness about new launchings

42% 58%

Ye s No

Media 18% 6% 46% 30% Retailer Friends Others

Figure1.15 & Figure1.16 FINDINGS | USERS OF MICROMAX User of Micromax

First time Switch over

Respondents (%)
46 54

Users of Samsung

Firs t time 54% 46% Sw itch over

Figure1.17

FINDINGS | REASON FOR GOING THE SERVICE OF MICROMAX Reasons

Good reputation Low investment Brand quality

Respondents (%)
14 24 18 44

Features

Reason for going the service of Samsung

14% 44% 18% 24%

Good Reputation Low initial Investment Brand quality Features

Figure1.18

FINDINGS | AWARENESS ABOUT SERVICES PROVIDED BY MICROMAX Awareness

Yes No Partially

Respondents (%)
65 25 10

Awareness about Services provided by Samsung

10% Ye s 25% 65% No Partially

Figure1.19

FINDINGS | SWITCH OVER FROM Switch over from

Nokia Sony Ericson L.G Motorola Others

Respondents (%)
7 32 20 30 11

Switch over from

11% 30%

7% 32% 20%

Nok ia Sony Ericsion L.G Motorola Others

Figure1.20

FINDINGS | MARKET SHARE Market Share

Nokia Micromax L.G Sony Ericson Motorola

Respondents (%)
48 29 12 5 6

Market Share
Nokia 5% 12% 48% 29% Sony Ericson Motorola 6% Sam sung L.G

Figure1.21

FINDINGS | SATISFACTION LEVEL (L.G) Satisfaction level

Very satisfied Satisfied Neither/Nor Dissatisfied Highly Dissatisfied

Respondents (%)
22 48 15 8 7

Satisfaction level (L.G)

Ve ry satisfied 7% 8% 15% 48% 22% Satisfied Neither/Nor Dissatisfied Highly Dissatisfied

Figure1.22

FINDINGS | SATISFACTION LEVEL (SONY ERICSON) Satisfaction level

Very satisfied Satisfied Neither/Nor Dissatisfied

Respondents (%)
7 35 45 10

Highly Dissatisfied

Satisfaction level (SONY ERICSON)

Very satisfied 3% 7% 10% Satisfied Neither/Nor 45% 35% Dissatisfied Highly Dissatisfied

Figure1.23

FINDINGS | SATISFACTION LEVEL (MOTOROLA) Satisfaction level

Very satisfied Satisfied Neither/Nor Dissatisfied

Respondents (%)
30 18 32 12

Highly Dissatisfied

Satisfaction level (MOTOROLA)

Very satisfied 8% 12% 30% Satis fied Neither/Nor Diss atisfied 32% 18% Highly Diss atisfied

Figure1.24

5. LIMITATION OF RESEARCH
This research was subjected to following limitation: 1. The survey can not be termed 100% accurate due to lack of time and time and cost only 500 users and 50 retailers and whole sellers had been studied. Thus the scope of study is limited in terms of no. of respondent.

2. The lack of candidness of respondent towards answering the questionnaire in few cases may have reduced the accuracy of survey to some extent. 3. Despite the unbiased opinion and efforts the possibility of technical exceptions cannot be ruled out. 4. The statistical analysis with various automated tools might have computational errors.

6. CONCLUSIONS AND RECOMMENDATIONS

luxury.

Mobile has become an important part of peoples life and it is no more a

Sahibabad is highly competitive and price sensitive market as majority of

respondents want maximum services provided by company in low priced handsets.

The majority of respondents who use mobile are quite young.

There is a good scope for new entrants in this circle as the service provided by

the existing players are not up to the mark and subscribers want to try out new ones provided they stand up to the customers expectations.

Numbers of color mobile users far out number B/W mobile users. And among

the color mobile users majority of them are camera mobile users.

As the circle comprises of mainly high standard areas with few big shopping

malls, subscribers want that the network coverage should extend up to shopping malls n addition to the small markets and roads.

MMS and Bluetooth functions are fast becoming popular with the mobile

users. In fact these are becoming a criterion for choosing a mobile handset.

Majority of respondents perceives Micromax as the best color mobile

provider. It commands high respect and favorable image amongst the mobile users.

Some recommendations and additional enhancements are following: Sahibabad is a highly competitive and price sensitive market, which is having

better shopping malls and markets, hence a suitable marketing strategy, needs to be formulated taking into consideration the advertising and price factor. As the numbers of mobile users are relatively young, marketing strategy should

be more focused on this age group.

One of the drawbacks of Micromax brand in this market could be its common

flavor not metro flavor. Hence to succeed in this market it need to reposition itself as the premium brand. Since customer education about new launchings and facilities provided in

handsets is the major problem faced by most of the mobile users, Micromax needs to take extra efforts for promptness in customer education to win and retain users. Micromax needs to prune up its advertising campaign to increase its visibility

further as one of its competitors visibility is high. Bluetooth and other connectivity services are fast emerging as an important area

of mobile service. Therefore, Micromax should come up with these relevant services from time to time differentiate its product and to generate additional revenue. Micromax should give high priority to customer service and satisfaction as your

satisfied customers do the best advertisement.

BIBILIOGRAPHY

Reference Book-

1) Kothari C.R. 2) Kotlar Philip 3) Kotlar and Armstrong 4) Intelligent computing CHIP, Volume 1, Issue 3

Research Methodology Marketing Management Principles of Marketing

website used1. www.in.Micromaxmobile.com 2. wap.in.Micromaxmobile.com 3. www.Micromax.org 4.www.chip-india.com

ANNEXURE CONSUMER QUESTIONNAIRE

Center________ Dear Sir/Madam, We are the summer trainies of Micromax India Ltd. Carring out the survey of current market scenario of mobiles.This study is part of our course curriculum and the information provided by you will be confidential.Kindly spare some time and answer the following questions. 1) Which mobile do you have? a. L.G b. MICROMAX c. NOKIA d. SONY ERICSON e. MOTOROLA 2) Since how long have you been using mobile? a. Less then one year b. 1-2 Year c. 2-3 Year d. 3Year and above 3) What your motive behind using mobile? a. Communication due to extensive mobility b. Snob value c. Good facility as compare to PNT phones d. Others (specify if any) f. SIEMENS g. PANASONIC Serial No._____

4) Which handset do you own?

COMPANY L.G MICROMAX NOKIA SONY ERICSON MOTORALA

GSM

CDMA

5) Are you the first time user of the mobile company? or Have you availed services of some other mobile ? a. First time b. Switch over c. Both If switch over specify company name [1] L.G [2] SONY ERICSON [3] NOKIA [4] MOTOROLA

6) Which attribute characteristic have you most preferred? Attribute a. Good reputation b. Low investement c. Warrenty& sup. d. Connectivity e. Weight f. Display

g. Ergonomics h. Camera video i. Battery backup j. IRDA/ Blootooth k. Sup. Language l. Brand equity 7) According to you what are the negatives in your handset? Please mention if any (---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------) Kindly fill in the following personal details Name______________________________ Address____________________________ Tel.no _____________________________