CONSUMER DURABLES

Girish Jindal ² 071092 Ashutosh Yadav ² 071095 Robinder S. Wasu ² 071255 Rajat Gupta ² 071419 Harsh Mohan - 071458

Road Map

What are Consumer Durables ?

Key Findings
The rapid rise in incomes will lead to an even faster increase in demand for consumer durables and expendables As a result, the ownership of goods will also go up significantly What will power this is the increased usage in different income classes.. «coupled with the rise in the size of the Great Indian Middle Class

Demand Of Consumer Durables 1995-1996 276 1850 760 3437 2001-2002 788 3006 2599 6024 2005-2006 1560 4335 4663 8727 2009-2010 3466 6774 8369 13149 Car Refrigerators Motorcycles White Goods -.Figures in µ000 .

Growth Of Mobile Phones In INDIA .

Contd«. ‡ Easy availability.. ‡ Revolutionary steps taken by the government. ‡ Mobile is the primary driver of growth. ‡ 4-5 million people buy mobile phones every month. . ‡ Services in ~ 5000 cities & towns. & even ~1 lakh villages.

921 crore by 2012 ‡ Growth rate of over 26 %.44.Contd« ‡ 584 million mobile phone connections as of March 2010. ‡ Industry is expected to reach a size of Rs 3. ‡ Generate employment for about 10 million. .

69% of population by 2012.06 million (Dec 2009) y Broad Band Subscription: 7.89% (Dec 2009) y Projected teledensity: 893 million. .15 million (Dec 2009) y Land Lines: 37.20 million (Dec 2009) y Teledensity: 47.21 million (Dec 2009) y Cellphones: 525.83 million (Dec 2009) y Monthly Cellphone Addition: 19.Few Statistic of Indian Communication y Telephony Subscribers (Wireless and Landline): 562. 64.

NOTHING LIKE ANYTHING .

Vision ‡ To develop path-breaking technologies and efficient processes. . enliven customer aspirations and continue to make Micromax a trusted market leader amongst people. ‡ The ideology(MM·s) stems from its rooted belief in 'Innovation' and delivering "nothing short of the best". ‡ To incubate newer markets.

. three more people Sumit Arora.History ‡ It was founded in 1991 by Rajesh Agarwal as a distributor of computer hardware for brands like Dell. ‡ In 1998. Rahul Sharma and Vikas Jain joined Micromax as cofounders. HP and Sony.

Rahul Sharma and Vikas Jain. .Contd« Contd« ‡ Introduced Micromax Mobiles in the year 2008 in India by Rajesh Agarwal. Sumit Arora.

.The Entrepreneurial IDEA ‡ On a hot summer afternoon in 2007. executives at a small Indian pay phone company called Micromax noticed a curious sight. ‡ In a village in the eastern part of the country. The villagers' homes didn't have electricity. they watched people line up next to a man with a car battery strapped to the back of his bicycle and hand him a few rupees to plug their cell phones in for a half hour's worth of charge.

a small screen.‡ Less than a year later Micromax sold its first cell phone. . and tweaked electronics that made the phone run for as long as five days. the X1i. and on standby for as many as 30 days. It came with an oversized battery.

Micromax ? ‡ Micromax. . ‡ Designing in India and manufacturing with partners in China. USA. based in Gurgaon. ‡ Micromax has 23 domestic offices across the country. ‡ Introduced 37 phones in just over a year and a half. Dubai and now in Nepal. ‡ International offices in Hong Kong.

‡ Company entered market in March 2008 in which it had a market share of meager 0. ‡ Micromax made its debut in 1991 but it presence has been felt majorly in few previous years. ‡ Serious developments and rise was seen in the year of 2008 when the company entered Indian Cell phone handsets market.000 stores.59% average. ‡ Company plans to increase their stores to 70.000 .‡ Currently there are more than 40. .

Products .

Strategy .

.STRATEGIES ‡ Their marketing strategy: focuses on the unique functionalities to further develop their reputation innovation.

2010 they have sold more than 30 distinct mobile handset models. . ‡ They believe that their product development capabilities have enabled them to establish themselves as an innovative Indian mobile handset company.‡ Since their entry into the Indian mobile handset market in March 2008 they have introduced more than 40 distinct mobile handset models and as of August 31.

Contd« ‡ They differentiate themselves from their competitors through : innovation design use of advanced technologies in-depth understanding of rapidly changing consumer preferences . .

Growth Stability The Grand Strategies Combination Retrenchment .

1. ‡ Selling nearly Rs. ‡ It sells anywhere from 700. according to research firm IDC with a stable growth rate of 4. .1%. ‡ Market share of 6 % after Nokia (62 %) and Samsung (8 %).500 crore worth of phones annually.000 to one million mobile phones every month.Combination Strategy ‡ Uses growth as well as stable strategy ‡ Micromax in 2010 is now India·s third-largest GSM mobile phone vendor.

8 Nokia Samsung LG Micromax Spice Mobiles Karbonn Sony Ericson ZTE Huwaii Motorola Other companies 64.0 --6.0 5.1 3.7 0.0 3.9 1.9 3.9 4.4 5.4 -2.0 5.0 1.0 -3.2 17.0 10.5 2.8 7.9 --2.1 .5 3.0 -3.7 1.4 1.4 4.Contd« Company 2008-09 2009-10 Growth/ Decline (in percentages) -11.9 3.0 4.6 1.1 1.5 52.3 3.

Competitive Strategy .

Cost Leadership ‡ They believe that consumers in India have unique preferences with respect to mobile handsets if available at affordable prices such as ‡ ‡ ‡ ‡ ‡ Long battery life Dual GSM capability Low-cost QWERTY phones Universal remote control Gaming phones .

.

Android at a fraction of MNC costs.Strengths ‡ Low cost³about 30 per cent cheaper than MNC equivalents. ‡ High on features. . some of them better than global models. ‡ Easy availability to all areas urban as well as rural. ‡ Effective Advertisement. ‡ Cater the needs of customers in the ¶Best· & ¶Cheapest· way possible. ‡ Will offer latest features like 3G.

most companies are primarily importers ‡ Government rules on components.Weakness ‡ Quality. use primitive software ‡ Servicing could be an issue. materials could erode price advantage . design often not up to the mark.

‡ As the fastest growing telecommunications industry in the world.Opportunities ‡ Ever increasing mobile demand. ‡ Targeting the high end customer. ‡ New technologies like 4G still not available in India. ‡ For mobile we have 400 million-plus users.159 billion mobile subscribers by 2013. it is projected that India will have 1. .

Lemon Mobile etc. LAVA Mobile.) ‡ Big players catching up with cost differentiation of Micromax.Threats ‡ Ever increasing competition with same traits (eg. . ‡ Technology is changing on a daily basis. so can loose the race where ¶to be the first is everything·..

Recognition and Awards ‡ Micromax is now India·s third-largest GSM mobile phone vendor with a market share of 6 % after Nokia & Samsung .

‡ Awarded the Most Impactful Launches in 2010 by Pitch India. ‡ Recognized as a Major Challenge for Nokia & Samsung Mobiles. .

.Future« Predictions: ‡ diffusion of mobile phones will continue till 2012-13. ‡ 71 mobile phones per 100 inhabitants in India at the end of year 2015-16. ‡ number of mobile phones will exceed the number of people in the country by 2022-23. ‡ Total mobile phone demand is projected to increase from 90 million in 2005-06 to 433 million in 2010-11 and nearly 900 million in 2015-16.

000 crore.‡ Thus Micromax has a lot of scope in the coming future. ‡ "The company has registered a phenomenal growth and may be looking to raise this kind of money to open its own production plant in India". said an analyst with a Mumbai based broking firm. ‡ Associates infused $45 million (Rs 204 crore) in Micromax valuing the company a little above Rs 1. ‡ Already it has launched some 43 models in the market with at least 3 more by the end of 2010. .

. ‡ Micromax mobile phones remain at the top spot today in India giving other international brands surely a tough time.Our Verdict ‡ The company has nearly two decades of expertise and continuous research in India and strives to remain as the vanguard of technological advancement in the country in the quickest way possible.

qwerty keypad. .) in the most effective way is what has made them succeed this far and will continue doing that. ‡ Their strength to cater the needs of customers(battery life.‡ ´We are not the poor cousins of Nokia. This is the attitude that has brought them this far and will take them further.µ says Vikas Jain founder of Micromax Mobile. Dual Sim etc.

The Bottom Line Micromax is gaining market share in India by making cheap phones with long battery life and offering other features local consumers want. .