SUMMER TRAINING REPORT ON

EXPANSION OF INTEX IN INDIA

For INTEX TECHNOLOGIES By: Roll no. Student id:
In partial fulfillment for the award of the degree Post Graduate Diploma In Business management Session:

INDIAN INSTITUTE OF PLANNING AND MANAGEMENT

Acknowledgement
We express our sincere gratitude to our faculty mentor for his superb

guidance and insightful information which helped us to give a full fledged framework to this project and consistently motivated us to do things differently. Working on this project on Intex expansion in India was a great learning experience. We got the opportunity o actually analyze how a company expand themselves to be in a competitive market. We would like to thank all the people involved in this project for their help and suggestions without which this report would not have materialized. A word of thanks to the all the Intex Centers and other mobile centers that helped us to get an idea about the existing position of the various models of Intex. Finally, we would once again thank our faculty for giving us this fulfilling opportunity to work on this project report. With Regards,

Contents
S.No. 1. 2. 3. 4. 5. Particulars Executive Summary Introduction Objectives Methodology Analysis and interpretation SWOT Analysis BCG Matrix Porter’s 5 Forces Model Findings Recommendations Bibliography 64 Page No. 4-7 9-43 44-45 47 49-58

6. 7 8.

60-61 62-63

Intex is about enhancing communication and exploring new ways to exchange information.    Upper Income and Lower income Group .Executive Summary Iniex is the world's largest manufacturer of mobile devices. a leader in.. Dual Market Strategy of Intex. including GSM.(Page no. It produces mobile phones for every major market and protocol.-5) We have collected data through primary(visit to mobile centers)  & secondary sources (internet. They have segmented the market on the basis of income i. This Project has been undertaken with an objective of analyzing the EXPANSION STRATEGY of intex in India. and W-CDMA .For upper income group they are into manufacturing mobile phones with high technical . CDMA.e. To Achieve Our Primary Objective Our Team with the Help of BCG and SWOT Analysis has tried to explain the Dual Market and Three Tier Expansion Strategy of Intex in India . services and solutions for network operators. and a driving force in bringing mobility to businesses. newspapers and business magazines) Overview of Expansion Strategy of Intex in India.

 High Fashion—Under this category they are into producing fashion oriented sets. For lower end they concentrate on manufacturing mobile phones which provide just basic voice and messaging facilities. Three-tier strategy of Intex. Besides selling their sets through the general retail outlets and their priority centers they are on a spree of going under Strategic Alliance with service operators under which they manufacture specific handsets.  High Volume – Under this category they manufacture low-cost mobile phones which are being produced for the sole purpose of providing the customers with only basic features. High Technology – Under this category they produce handsets which are technology oriented.  Under this strategy they have divided the market on the basis of needs of customers and it is categorized in three categories.  .facilities like multimedia services etc. Dual market strategy of Intex is also reflected in its  distribution channel network. Actually this strategy is only an expansion of its dual strategy.

power of buyers. weakness. In BCG matrix we have focused on different models of Intex and have divided them under question mark. The major findings of our project are:Intex still is the largest player in Indian Mobile Market and has the ability to lure its customers very well. i. we have tried to analyze Intex existing position on the basis of the 5 forces given by Porter. cash cow and dog with respect to the current market scenario of India and at the same time we have also provided detailed findings on the basis of BCG model. Porter’s 5 Forces Model   In this model. We have also tried to relate three tier expansion strategy of Intex with BCG matrix in order to give a complete analysis. SWOT Analysis. BCG matrix of few selected model of Intex. Competitive rivalry. opportunity and threats of Intex Company in India.. star. power of suppliers. threat of new entrants and threat of substitutes.e.  • . In SWOT analysis we have given the strengths.

• Intex’s Expansion strategy has been quite successful inspite of huge competition. • Intex needs to develop models which are less in weight and at the same time more fashionable. •  Some of the critical recommendations that we have listed are :- • Intex should create customer awareness in the form of educative promotion and at the same time should also look to educate the dealers about the latest development in the field of technology. . It has the policy of always bringing the best to the people and keeps innovating new products with the technology. It is also important that Intex targets its customer segments not only in Metropolitans but also in small cities with proper advertising and promotions.

COMPANY’S INTRODUCTION

Introduction About the Company
Intex Technologies is a 15-year-old IT Hardware, Mobile Phones and Electronics Company, headquartered at New Delhi. It has a pan-India presence though its own network of 35 offices and 500+ service points. Brand 'Intex' covers 9 business segments- Computer Peripherals, Mobile Phones, PC, Consumer Electronics, Security Software, Power Electronics, Retail, Enterprise and International Business. It has built for itself a high credibility amongst its vast network of channel partners and several million satisfied end users by offering value-for-money quality products supported by effective service and a consistent policy of transparent, fair and ethical dealings. The business segments cover a portfolio of 28 Product Groups spread across 350 items including Mobile Phones (Dual & Triple SIM), Multimedia Speakers, Desktops, TFT-LCD/LED monitors, LCD & CRT TVs, DVD players, Computer UPS, Cabinets, Headphones, Web Cameras, Security Software (Antivirus) to name just a few. In Computer UPS, INTEX occupies 1st position as the most selling brand as per the quarterly IDC Tracker. For several other product groups such as Multimedia Speakers, Keyboards, Mouse, Add-on cards, etc. also, Intex enjoys a enjoys a leading market share in many states in India.

Sales are routed through a channel network comprising of 3000+ distributors and 20,000+ dealers spread across the country. The company launched its chain of exclusive retail outlets- INTEX SQUARE in Sep, 2009 and has opened 80 stores so far. Products are also available at more than 130 dedicated counters of reputed chains of hyper markets and specialty stores across the country. Intex's manufacturing domain comprises of three manufacturing units belonging to the Group located at Jammu (30,000 sq.ft. & 20,0000 sq. ft built-up area) and Manpura (Baddi, HP) (51,000 sq. ft). The units have been producing desktops, multimedia speakers and PCBs and had also produced UPS, home UPS, notebooks and DVD players in the past. The company intends to vertically integrate backwards into manufacturing of more products and also bring in foreign technology from global leaders. During the last 8 financial years, the company turnover has increased from INR 32 crore in 2001-02 to INR 733 crore in FY 2010-11 (at a CAGR of 32% over the last 5 financial years). Our aggressive growth journey has been recognised by reputed IT trade journals. Dataquest has been rating 200 fastest growing IT companies in India, covering both Software and Hardware. Intex has improved its ranking in this survey in the last 6 years from 108 to 87. The company has also been recognized by consumers and channel partners through various rankings and awards received over the years. Some recent highlights are:

Dec.aired on NDTV India and NDTV profit. (February. 2010 edition • • Largest selling brand in UPS category as per IDC India Q 2.Cell Guru.SHOW (India’s first mobile phone with in-built projector) by Rajiv Makhani on the popular show. 2011 • • A score of 9. 2011 Amongst the Top 300 most trusted brands of the country.Cell Guruaired on NDTV India and NDTV profit. 2009) • Best Value award for Intex Gaming Keyboard in Chip magazine. 2010 • SMB Champion Award from Intel. May. 2009 Tracker-Market Review (August. 2009) • A score of 9. Jan. • Intel Premier Partnership (IPP) Track I channel association with Intel (March. 2010 Digit magazine’s Best Buy Award for INTEX mobile phone IN 2020 Elegant. The Brand Trust Report. Best Multimedia Speaker & User Friendly UPS by NCN.5 (out of 10) and a place amongst the Top 10 Innovations for INTEX Mobile Phone V. 2009) . April. August.• Most Visible Indian Brand. 2011 • Best Peripherals Brand by Digital Terminal magazine. May.1 (out of 10) for INTEX Mobile Phone IN 4495 by Rajiv Makhani on the popular show.

2007. 2008) • 'Special Commendation' medal from Indian Trade Promotion Organisation (ITPO) in IT & Electronics category at India International Trade Fair (IITF) (November. Over the last 3-4 years.SAP. Total Quality Management (TQM) and Business Intelligence initiatives have also been launched. 2008) • RECOMMENDED Award for Intex IT 22 TV LCD Monitor from AV MAX Magazine (October. The aftersales service solutions are web enabled (e-service).• Intex is the most persuasive brand (in PCs) as per a survey on India's Favourite IT Brands in PCQuest (September. 2007) • 'Best Buy' Award for Intex Platinum PC in Digit (September. . Desktop PCs. Intex's own Virtual Private Network roll-out has also begun. 2007) 'Best Buy Silver' Award for Intex mobile phone. 2008) • INNOVATION CHAMPION & STAR ACHIEVER award from Intel (December. Intex is ISO 9001:2008 certified. 2008 & November. DVD Players. All India sales & service operations are managed on a world-class collaborative business solution. TFT-LCD /LED Monitors. Antivirus & Internet Security. June. LCD TVs.Infi in Digit (May. etc. Intex has expanded its product offerings by adding more products with a consumer interface such as Mobile Phones. 2007) • The brand has now been growing beyond computer peripherals.

benchmarking. Bansal is the driving force behind Intex. Narendra Bansal. He is a first generation entrepreneur and a 'visionary' in the true sense. etc. The average age of an Intex employee is 30 years. technology development and scanning.The company has a strong Centre for Design and Development in Delhi which is well-equipped with modern facilities and highly qualified engineers looking after product development. One of the most valuable assets of the company is its team of more than 1800 employees with over 9000 man years of experience. . Intex Technologies (India) Ltd. 47.NarendraBansal (Chairman & Managing Director. Bansal identified IT Hardware as a field with high growth potential and initiated the incorporation of Intex Technologies (India) Limited in 1996. Mr. Intex acknowledges the support and cooperation provided to the company by its dedicated network of channel partners and the hard work of its employees.) Mr. In the year 1993.Ethernet Cards under INTEX brand and had to face severe competition from various MNC brands who ruled the market. He started business that year with just one item . This activity ensures that state-of-the-art products are offered as per the latest global standards. The vision of the company is to make itself a globally respected name and to improve the quality of life of the people. Mr. Mr. specifications. quality up-gradation. is the CMD of Intex Technologies (India) Ltd.

Narendra Bansal finished his graduation in Commerce from Delhi University. This survey covers both Software and Hardware companies. Head count has gone up from 150 to more than 1800. DVD Players. Multimedia Speakers. Intex has been rated at 101. TFT-LCD / LED Monitors. now 87. In the last 5 years. Headphones. Considering company's diversification into various new verticals & requirements of the ever-changing business environment. Under his dynamic leadership. PCs. he was able to rapidly expand the product range to over 26 product categories including Computer Peripherals. Intex has moved up in rank from 108 to 101 and.With his keen interest about the products and their manufacturers located in Taiwan and China. Home Theatre Solutions. with a CAGR of 38% (over last five years). the company has upgraded its operations from its own home grown ERP to SAP. Driven by a strong desire to build business and discharge social responsibilities. the conglomerate has three manufacturing associate units at Jammu and Himachal Pradesh. etc. which reached a level of Rs. 32 crores in the first six years of business (2002) has since increased to 593 crores in next eight years (2010). Mr. Company turnover. Mobile Phones. In an independent survey by DataQuest magazine. his family runs charitable educational and health activities . Mobile Phones. Now. Web Cameras. LCD TVs. of India's fastest growing 200 IT companies. Bansal is a hands-on Manager who believes in walking the talk and managing his business through systems and processes. the growth at Intex has seen a substantial acceleration. Mr.

is the Executive Vice Chairman of Intex Technologies (India) Ltd. He has been a member of various committees at Confederation of Indian Industry (CII) and PHD Chamber and was also Vice-Chairman of Indo-Italian Chamber of Commerce and Industry (NR). Vaswani.for the benefit of the urban under-privileged people of Delhi. including refrigeration.. Currently he is a member of CII National Committee on ICTE Hardware Manufacturing. Software applications. Delhi and held several senior positions over a period of 14 years. IT hardware. diesel engines. electric motors. He started his career in 1965 as a Senior Management Trainee with the reputed Shriram Group. Manthan and Rajasthan Club.. New Delhi and is responsible for organizational and business development. He is also a member of various organisations working towards social causes like Rotary Club of Ashoka. plastics processing and packaging. 67. In 1979 he took up an overseas assignment for 5 years. automotive components. A gold medalist in Mechanical Engineering from the Indian Institute of Technology-Madras. His last assignment in the Group was that of General Manager of an Automotive Component manufacturing company where he was responsible for turning around the sick company and bringing in a fresh Technical Collaboration agreement with a globally reputed Japanese manufacturer. etc. industrial flexible metal hoses. Mr Ramesh A. strategic decisions and overseeing the operations. as Managing Director of two manufacturing companies of CHELLARAM . small appliances. Ramesh Vaswani has 44 years of vast and rich industry experience in various sectors in India and overseas. Chennai.

Under his leadership. On returning to India in 1984. dealing in high-speed wireless data transfer radios. Appliances Division and Flexitubes Division. trouble shooting and root cause analysis have been instrumental in turning around sick companies and substantial improvements in internal efficiency of many companies. The latter was hived off as a JV and finally taken over by a British MNC. in the next 8 years (2010). analysis of data. Delhi where he set up 2 new businesses. Ramesh Vaswani has been with Intex for 8 years. Many of his trainees and reportees are holding key senior positions in reputed companies in India and overseas. Ramesh Vaswani has taken a keen interest in development of systems and processes and human assets. giving a CAGR of 38 % (over last five years) and a growth rate of 2-3 times the industry growth rate. 32 crores in the sixth year (2002) of business which was stepped up to 593 cr. he was Vice President of INALSA. Intex achieved a turnover of Rs. etc. Incorporated in 1996.Group in Nigeria. This business was moved in 2002 to INTEX Group. He successfully turned around the 2 sick companies and also brought in new technology to Nigeria for local manufacturing of a widely used sophisticated flexible packaging film. In 2000 he established an alliance with a leading Canadian company for a large Indian Group to set up a new business. His aptitude for designing relevant MIS reports. SAS Data Warehousing solutions. the growth at Intex has seen a substantial acceleration. From engineering industry he switched over to IT industry in 1999 and was Managing Director of a Software company offering Baan ERP solutions. In the last Annual Survey conducted by Dataquest in . During his career.

etc. Intex product range covers IT Hardware. Strategic Alliances INTEX's Alliances and Partnerships ensure our customers receive the best the industry has to offer. Multimedia Speakers. TFT-LCD / LED Monitors. PCs. Web Cameras. Many of INTEX's innovative services are underpinned by technology and solutions provided through partnerships with industry-leading organisations. Home Theatre Solutions. including Processors Intel: Certified Premier PartnerAMD: Certified Platinum Partner Seagate: Premier Partner . amongst the 200 fastest growing IT companies in India. Mobile Phones and Electronics including INTEX branded Computer Peripherals. Intex was ranked 87. Mobile Phones. Mobile Phones. DVD Players.July 2010. Headphones. LCD TVs.

● Most Visible Indian Brand. The Brand Trust Report. Jan.Industry Recognition 2011 85th rank amongst top 200 fastest growing IT companies (both hardware and software) : As per the annual survey conducted by DataQuest. 2011 ● Amongst the Top 300 most trusted brands of the country. to 85. covering both software and hardware companies. Rank improved in the last 5 years from 108 to 87 and in July 2011. Best Multimedia Speaker & User Friendly UPS ● Best Peripherals Brand by Digital Terminal magazine. May. 2011 .

2009 2008 Most Persuasive Brand (n PCs) : As per a survey conducted by PCQuest. ● Digit magazine’s Best Buy Award for INTEX mobile phone IN 2020 Elegant. 2008 issue with more people likely to purchase it than those who could recall it on the top of their mind. 2009) ● Track I Pemier partners of Intel.most selling UPS brand as per IDC Quarterly Tracker (Q 2.2010 87th rank amongst top 200 fastest growing IT companies (both hardware and software) : As per the annual survey conducted by DataQuest. covering both software and hardware companies. Rank improved in the last 4 years from 108 to 101 and in July 2010. to 87. April. 2010 edition 2009 ● No 1 . Sep. March. .

Rank improved in the last 3 years from 108 to 104 and in July 2008. to 101. Motorola & Bleu brands in popular magazine Digit.● 101st rank amongst top 200 fastest growing companies : As per the annual survey conducted by data quest. April. covering both software and hardware companies. May. 2007 'Best Buy Silver' award for Intex mobile phone Infi amongst eight other models of Nokia. 2007. 2007. 2006 360 Magazine's Bhoomi Brand Awards. Cyber Media Lab's Highly Recommended Award for Intex Notebook Performer 032 DW in PCQuest. 2006 . August.

February. 2nd rank in mouse category. August.. Bhoomi Brand Awards organized by 360 Magazine.. 2005 • • 3rd rank for speakers. August. 2006. • Intex 029CD notebook ranked fourth (in overall rating) amongst nine other players in a review of budget notebooks by Cyber Media in PCQuest.TFT-LCD Monitor category. 3rd rank in TFT. Cyber Media Labs' Highly Recommended Award for Intex Gold PC in PCQuest.Golden Rhino awards organized by 360 Magazine. .LCD monitor category.• 2nd rank in PC category. . 2005. 3rd rank in CRT monitors and Keyboard segment. 2005 • • • • 1st rank in speakers category. Speakers awarded in Value For Money awards by Chip magazine. April. 2005.. Speakers category and Mouse segment. 2005 2nd rank for speakers in Icon Of Trust Awards by Digit magazine.. 2006. August. February. 3rd rank in keyboard category. 3rd rank for cabinets.

November. July. 2004 • • • • 1st rank in speakers category. 2003 Golden Rhino Awards organized by 360 Magazine. 2nd rank in mouse category. 2003 • • • • 2nd rank in speakers category. May. 3rd rank for cabinets. 3rd rank in keyboard category. 3rd rank in keyboard category. 2nd rank in mouse category. Most Admired Company Survey by CRN magazine. 2nd rank in speakers and multimedia kits category. August. April. . Bhoomi Brands Awards organized by 360 Magazine. 2004 • 1st rank for speakers. 3rd rank for cabinets.2004 Golden Rhino Awards organized by 360 Magazine. 2004 • • 2nd rank for cabinets. 1st rank for speakers in Users' Choice award by NCN magazine. 2003.

Build corporate image. Seek technology and trade leadership. Set benchmarking standards for corporate governance. Improve the quality of life of the people. Enhance work culture & environment. Mission • • • • • • • • Focus on customer delight. Mission & Goals Vision • • Make Intex a globally respected name. 1st rank in speakers category. Better and effective communication. Optimise resource management. Quality people.Most Admired Company Survey conducted by CRN magazine. . Vision. 2nd rank in cabinets category. November. 2003 • • • Intex was rated as the sixth most admired company.

Uplifting the "Deprived" by providing Healthcare. Analyst at Gartner “We see a great potential for the continued growth of mobile telephony in India where mobile penetration is relatively low. Innovating in all facets of life. Education. Conducting ourselves as good citizens. Goals We will realize our vision by • • • • • Market leadership.• Sustained sales and profitability. As the leading brand in mobile communications in India. Ethical practices. Vocational Training and basic needs. • Intex’s Strategy "The Indian market is growing rapidly and the mobile penetration rate is still low." ." Song Sauk-hun. It's got great potential. Intex will continue to deliver products which cater to the needs and preferences of Indian consumers. Caring for the stakeholders.

In 2005. This is also reflective of the rapid evolution of the mobile phone from a corporate productivity tool to an essential communication device for people from all walks of life. since we are only 10 years old in India. India’s apex industry association. said. Ericsson and Intex were the major players in its handset market.MADE IN INDIA When India witnessed the introduction of mobile phones in the mid-1990s. According to ORG GFK estimates. the company has increased its market share to 55 per cent in March 2005 from 33. Intex India. compared to around 32 per cent globally.8 per cent in March 2005. “This award is particularly gratifying for us. Intex was recognized as the “Brand of the Year” by the Confederation of Indian Industry. Motorola.7 per cent in October 2004. Intex is way ahead of its rivals with more than 74-per cent market share. it won the prestigious Golden Peacock Innovative Product/Service Award for the N1100.” He added. in the color segment too.” Last year. Its nearest rival in the Indian market is a distant second with 7. Sharma. In 2004. too. as things stand today.INTEX . well-established distribution channels and being most preferred by the consumers contributed to making its choice for the award. Managing Director. and it was an honour to receive the award in India. However. . “Intex was judged by brand consulting firm Vertebrand as among the ten most valuable brands in the world. Mr. Its high brand recall.

Mr. Intex’s business and market strategies combined with management style in India have merited the legitimate attention worldwide. Sharma said. It has set up a manufacturing facility for mobile devices in Chennai. The growth of mobility is one of the key indicators of the economic progress in India. Intex introduced tunes like Sare jahan se achcha in its 5110 model. Intex is all set to manufacture in India. Elaborating the rationale behind the Jaago India Jaago advertising campaign. Intex has recently launched a campaign named Jaago India Jaago which captures a new era of mobility. The advertising campaign therefore uses the“‘Talking Alarm’ functionality of the Intex 1110 and 1600 as a metaphor to convey how more and more Indians were waking up to mobility through Intex handsets and participating in the progress. the state capital of Tamil Nadu in southern India. The company has invested US$100-150 million in the facility. In 2001. With a view to developing an intimate bond with the local customers.” Sensitive to rising costs. where the production is expected to begin in the first . What made the company a resounding success story is its extensive product range.it was also declared “most respected company in the consumer durables sector” by Business world magazine. The company was also invited by Harvard University to talk about its amazing success in the Indian the market. the mobile giant introduced the Hindi text messaging facility in the 3610 model. “Indians are extremely proud of how the country has been progressing. anticipation of consumer trends at the very outset and a retail strategy.

“Establishing a new factory in India is an important step in the continuous development of our global manufacturing network. “India is one of the fastest growing cellular markets in the world.half of 2006. Intex set up its Code Division Multiple Access (CDMA) facility in Mumbai. Intex Customer and Market Operations. India. said. said. They are also constantly looking at opportunities to expand our R&D activities to include markets outside the US. “Intex views Asia-Pacific as an important region for Intex’s CDMA operations.” Intex has R&D centers in 11 countries throughout . President & Head of Customer & Market Operations. The establishment of such a facility in India testifies to their long-term commitment to this region. The creation of a new CDMA R&D facility in India is part of the continuous expansion of Intex’s global efforts to grow and invest in the CDMA business in this region. Managing Director. our R&D facility in Mumbai will help us provide centralized software support and technical expertise to cater to the specific market needs in India and this region. which provides software and technical support to CDMA consumers in India and other Asia-Pacific countries. Reiterating Intex’s commitment to the growing CDMA market in India. 8 With the rapid growth of Intex’s CDMA customer base in India and the region. Pekka Ala-Pietilä.” As the CDMA market in Asia-Pacific is on its way to robust growth. Intex Corporation.

Intex has ensured that it has a presence of its priority dealers in more than 255 towns. “We are constantly looking to enhance the consumer’s experience with the Intex brand. In 2003. the sto re also houses an Experience Zone and a Intex Lounge. ring tones. The company considers that R&D is paramount in realizing Intex’s vision of “Life Goes Mobile” and retaining its leadership role in mobile communications. Sharma said. software and exclusive Intex merchandise. games.000 employees – almost 40 per cent of the company’s total workforce – worked in the area of research and development. It has the widest care network . mobile enhancements. Mr. colour and camera.the world. As part of its distribution strategy. in March last year Intex opened a dedicated Concept Store to ensure an easy and informative shopping experience. including handsets.” Besides offering Intex products. graphics. Making another stride in the Indian market. The Intex concept store provides customers with an interactive and informative shopping experience and the opportunity to experience the product before making a purchase decision. nearly 20. Intex has strong leadership across major segments of the Indian market: monochrome. The store which is based on the pattern followed by Intex’s concept stores in the European countries features the full range of the company’s offerings. India’s first mobile call was made via Intex GSM network and on Intex handset in 1995.

The landscape in India is somewhat different. Here. The company has some 560-odd care centres with 25 hi-tech facilities In the developed world. the mobile market is becoming saturated. As most adults already carry a mobile phone. Talking about the expansion strategy of Intex in India. Dual Market Strategy . Meanwhile. it follows these two basic paths 1) DUAL MARKET STRATEGY 2) THREE-TIER EXPANSION STRATEGY 9 1.with a presence in 408 cities. both new and existing users are driving the market. the number of mobile phones in use has overtaken the number of fixed-line phones in 2004. existing subscribers are switching in droves to today’s more advanced models.

DUAL MARKET STRATEGY INCOME SEGMENT DISTRIBUTION SEGMENT INCOME SEGMENT UPPER SEGMENT LOWER SEGMENT DISTRIBUTION CHANNEL PRIMARY SECONDARY Income Segment No One-Size-Fits-All Approach Market segmentation is the basis of EVOLUTION of Intex mobile phones. .

This is their way to stimulate growth. and simultaneously for the consumer they offer affordable. yet attractive mobile devices. as against mobile users who are identified as `consumers'). "Visual Radio" enabling visual access to the radio station is another product in the stable. A system of "prepaid tracking" has been introduced to enable subscribers to buy more call time or transfer entitlements without having to buy a SIM card. Intex has come out with prototypes of equipment that can operate in a non-air-conditioned environment and also totally "shelter less" network equipment sites that can withstand the natural environment. Though Intex is involved in both GSM and CDMA phone sectors. its advice to Indian operators ("customers") in the CDMA segment is to switch over to WCDMA since the CDMA technology has exhausted its potential for further evolution in a competitive manner. They focus on low total cost of ownership from both the operator's and the consumer’s perspective.Intex uses a dual market strategy around the world to address high-end segments with multimedia and other sophisticated services while simultaneously driving voice and basic messaging at lower income segments. In an attempt to reduce the "cost of ownership" of networks to cellular operators (whom it calls the company's `customers'. For the operator this means creating profitable business in the low ARPU segment. Distribution Strategy .

so in order to penetrate rural market and provide India consumers with world class high quality services Intex decided to go in with strategic alliance with leading service providers of India. 2) Intex always knew that mobile service providers are life line of India. Intex´s strategy in India is to explore. high-quality equipment and services Intex decided to opt for DUAL MARKET STRATEGY . .e. Dual Market Strategy of Intex is to capture Indian market via two ways.” In order to maintain its market share and deliver the India consumers of what they really deserve i. so as to form a permanent image in the minds of customer. Intex believed India was market to be explored. Intex thinks it must cultivate a strong local presence in all growing markets and pursue collaboration and investment opportunities in order to obtain complementary technologies and a strong market position.Intex always believed India as the potential market. identify and extract revenue from the most profitable and fastest growing segments of the business and anticipating consumer needs in this area. the two ways are as follows 1) First is to sell products under the sole banner of Intex without any strategic alliance with any corporate house following a simple distribution network. Intex’s commitment to India is fulfilling their promise to bring high-quality equipment and services to provide world class mobile services to the Indian consumers. and developing innovative products and services Intex intends to capture profitable segments of the corporate market by offering products and services that will benefit both companies and individual business people a like.

This strategy gave Intex a clear edge over its customers. Three Tier Expansion strategy This strategy followed by Intex to expand their business is also based on more or less same mantra of segmentation.This teaming up with strategic partners helped Intex to penetrate deeper in Indian market and at same time helped Intex increased its revenue. The only difference lies in the fact that under this expansion strategy . They believe that the basic thrust behind owing a mobile phone is different for different class of people and accordingly they design and develop newer models for each section. Based on this segmentation they produce three categories of mobile phones (that is why it is called three-tier expansion strategy) • HIGH FASHION • HIGH VOLUME • HIGH TECHNOLOGY .

whose 8810 version is already the world's smallest multimedia computer. music player and FM radio. This category is specially designed and developed to cater to the needs of professionals. In this mobile handsets category. Car navigation is also being built into the 8810 as an innovation. 3G (third generation) connectivity. it was stated. Intex is aggressive in developing and marketing . the 6660.HIGH TECHNOLOGY INTEX 8810 The company is now all set to take advantage of the imminent convergence between mobile phones and the Internet. was the world's first camera 14 . Another version. offering features like a mega pixel camera. push email. an HTML browser.

with high quality resolution and the possibility of instant printing and sharing (with other mobile users). CNN. CISCO. such as Point sec Data Protection and Symantec Firewall and Anti-virus and much more. It has internal security: device lock and device wipe Additional security solutions separately available. HIGH VOLUME .In its stride towards more and more sophisticated but simple-to-use multimedia devices built into the cell phone. along with the N Series of Mobile. Intex has come with the other Series which is the most High tech of all its models. India is an important destination for Intex. Intex debuted its first game device in India (the N-Gage QD). Last summer. Symphony.phone equipped with Carl Zeiss optics and takes mobile photography to new levels. Some of these models are Intex 6661 with wide. . The company considers the country among top five markets in the world. Intex’s presence in India dates back to 1995 when the company started its operations here. high resolution display. Now. Providing network equipment and mobile handsets in the country. Avaya. The Indian market for mobile games is expected to reach $336 million by 2009. Intex is partnering leading technology players like Microsoft. IBM. HP and Kodak. faster connections creating competitive edge for the professionals.

Some people owe mobile phones for the sole purpose of using it as a medium of communication. to a wide range of low and high-tiered devices. Intex has declared its plans for further broadening its R&D and also a reduction in handset prices. And this is the largest segment with respect to number of consumers (that is why the name high volume is attached to it) . Intex is planning to move from volume production of low-end mobile phones for millions of new users. In India. The segment using this category of mobile phones comes under the lower end segment of their dual market strategy. Another thing in strategy that they see in India is the rich culture. According to Intex the potential market of millions of customers in the lower priced handset segment is waiting to be exploited. In order to maintain the existing spirit of competition in the market. . Actually this strategy is somewhat an extension of their dual market strategy. They believe that mobile telecommunications is the most cost effective tool especially in the rural areas in order to access communications.

not just by reading but also by watching. They try to make user interface more practical for people who have difficulty in reading and writing. Often it is heard that someone had bought a Intex mobile phone and didn’t have to read the handset manual because it was so easy to start to use. we can learn already. Intex introduced the first “Made for India” model. more intuitive. Depending on the mobile phone model they intend to have up to 9 Indian languages supported in a mobile phone and this is of course increasing all the time. Also. . in some of the new handsets. the 1120 i. Languages are very important. It is like watching a learning presentation before we start to use our mobile. Another phone which has been introduced by the company specifically for India is 1108. which are more graphical. Keeping in mind the specific needs of the customers.there is not just one solution to explore. but there has to be many solutions and they are willing to work with the operators in order to explore them. over the handset how to do certain things. These phones have been developed after intensive research on the Indian customer’s specific needs. which is the largest selling model in the Indian GSM handset market. Most concretely. consumers can see that in Intex they are adding new languages in mobile phone. They are also working on having interfaces in mobile handsets.

In October 2005 Intex launched two entry level handsets for the Indian market. This category is specially designed eyeing those customers .. Bengali. Tamil. With these two phones -Intex 1110 (black & white display) and Intex 1600 (colored display) and the recent addition is Intex 1110i. These handsets were yet another example of Intex's innovation and commitment to introduce products that are relevant for Indian consumers HIGH FASHION There is a category of customers for whom owing mobile also serves the purpose of status symbol. Two distinct feature of these new handsets were the unique Talking Alarm and Clock in five regional languages including Hindi. Marathi and Gujarati This effort reiterating Intex's intent to drive affordable mobility in India and grow the base of mobile phone users. They want to have the latest in the market.Intex expanded its entry level portfolio in India.

. print advertisements in major dailies. The N series and E series models of Intex are too good to look at and appealing for the eyes. activities like outdoor at strategic locations.Now there have been several models for the high fashion element. etc happen on regular basis to increase brand salience in the market. vehicle. Further. road shows. Regular Activities • Balanced mix of ATL and BTL activities happen at all India level to give the brand the desired push.branding. Some of the notable activities are as below.

in selected markets look for new partners who share the same values as us. continuous growth. CARRER AT INTEX A career at Intex will allow you to live up to your dreams.Road Show activity Branch Network Bus branding in Kolkata Our 3000+ distributors & 20. we have been able to build a high credibility amongst several million satisfied end users. fair and ethical dealings. Due to their invaluable support. We continue to encourage our existing partners by resolving issues quickly and. Based on transparent.000+ dealers are part of the extended INTEX family. A lifelong opportunity to explore your potential. and the joy of .how to increase sales in every market and at the same time ensure that all channel partners make money and work in harmony. INTEX has a simple channel strategy .

Our energy. learn. spouse birthday. get recognition in the form of exceptional rewards. As you scale newer peaks of achievements. and in turn. world-class working environment. Intex offers challenging assignments. anniversary.working on the latest technologies alongside the finest minds in the industry. free spirit. . children birthday etc. We instill these qualities into every new member of the Intex family. unhindered participation brings us closer to each other and to ourselves. At every step of success there is a special incentive awaiting you. We offer great opportunities for fast growth talented individuals to do the best work of their life. Our responsibility towards new employees does not stop at salaries and compensation alone. We believe that investing in people's growth reaps the best dividend. We offer all possible help to facilitate their settling down. professional management and ample opportunities to train. We have a high performance work environment that recognizes individual contributions. • We provide leaves on the special occasions like birthday. Active. making work both fun and fulfilling. social responsibility and commitment to human values have played a significant role in our success story so far. and execute the most demanding projects. we provide you with many benefits. We foster initiative and creativity by allowing individual freedom to attain well defined objectives.

.• We have Sagan policy for different occasions like Marriage. A Career at Intex is an exciting growth phase. The Human Resources team provides support to employees across the country. Positive & Performance oriented work culture environment Rewards & Recognition programmes Employee engagement activities to engage every single mind at Intex. child birth etc Continuous Training & Development initiatives to hone the skill & ensure employee ability. If you are talented you will enjoy working as part of our exceptional multi talented team. Progressive work environment Flexi Timings • • • • • • We IGNITE the Imaginations………As for us possibilities are Endless & so as for “U”. so there has never been a better time to join us.

Objective .

4) SWOT analysis of Intex India. These are as follows-: 1) To study the three tier expansion strategy of Intex in India. fashion and technology. . In this we have tried to find out how Intex is using this strategy and targeting different customers on the basis of volume. By the help of this SWOT analysis we would try to find out strong and weak links of Intex in India. at the same time we would also look into opportunities and possible threats of Intex in India. 2) To study the dual market strategy of Intex in India. In this we have Shown strategies adopted by Intex in India to penetrate in the Indian Market on the Basis of INCOME. The three Tier expansion strategies are all about high volume. 3) The Dual Market Strategy of Intex not only in their INCOME SEGMENT but also in their Strong INCOME SEGMENT Used BCG MATRIX of few selected models Of Intex and on the basis of that we were able to analyze the different stages of BCG model and at the same time we would correlate them with the three expansion strategy of Intex.Our main objective is to analyze the expansion strategy of Intex in India. For achieving our objective we are Analyzing on different aspects of Intex strategy which are being used in India. high technology and high fashion.

5) To find out whether this expansion strategy of Intex is helping them to sustain their Number one position. 6) Lastly we would provide suggestions on the basis of our findings regarding sustainability and growth of its current market share. .

RESEARCH METHODOLOGY .

Business Magazines.The aim of study is to objectively understand the Expansion Strategy of Intex in Indian Market. High Volume . We have collected data by the following two methods:• Primary Data • Secondary Data Under Primary Sources. We visited several Intex Priority Centers. My Mobile Stores and Hot Spots in Delhi which helped us to get the relevant Information which Proved Vital In Our Successful Completion of Our Project. . As Per Secondary Sources is Concerned Relevant Information was Supplied From Internet (Company website). and Article of Newspaper through Which we Came Across Intex’s Three Tier Expansion Strategy which is Considered to be the Core Expansion Move made by the Company in India. Specific aspects to be studied during Our Research Work were: • The Dual Market Strategy of Intex for Indian Market. • The Tier Expansion Strategy Of Intex in India (High Fashion. High Technology).

ANALYSIS AND INTERPRETATION .

. • Ability to innovate products • Wide range and competitive product portfolio from "Question Marks"(Series Series. we think. their performance and outlook • Evaluate business plans • Make preliminary stock investment decisions.1108 . Intex has a very strong brand position (this one. Therefore it would be very difficult for Intex. Strengths • World’s largest mobile phone manufacturing company • It is the clear market leader.3250) and "Stars" (1110) and especially "Cash Cows" (Intex1100.6600) to finance new Product One of the important weakness of Intex is its bulkiness(size) due to which the high end customers prefer the slik sets of Ericsson or Samsung. if we are not wrong). • One of the most important strengths would be Intex's brand image and the amount of customers they have who have a high degree of brand loyalty. • • Weaknesses In our own opinion. once it wants to reposition its brand in customer's eyes. is more likely to be brand with high quality and low price.SWOT Analysis The typical SWOT tends to be situational and takes a snapshot of an entity at a point in time and is used to: • Analyze companies.

customer would likely to be prepared to purchase the service and buy hand phone.. • Wide range of outlets which provides fast Customer Service post.sales and more comfortable distribution channel. i.e.and pre. • Since network cost is lower. • The diverse qualities (mind frame.Development. increasing sales and profit. Advances in technology (and especially in networking) it would likely to reduce the cost of sales (cost of production) • One of major threat is saturation of urban areas. experiences . culture. spread over the country • Intex’s ability to operate efficiently (its operating margin is 19% ) Opportunity Threats • • Potential joint venture with mobile services operators • Increasing number of users • We think the most obvious threat is from Competitors product (and brand) with different brand position.

Whether these models would be able to capture market share and become stars is still a question mark. BCG Matrix Model Question Mark: Intex models that come under this category are Intex 3250.E 61 etc. They have small market share in a high growth market. N 76and N 82. These differences among customers are opportunities (and not necessarily problems) as the company could style its relationships and services to specifically serve them. Star: .etc) of customers. These models require high investment in the form of promotional expenses.

and 6600 are the one that have large market share and have generated huge revenue for the company. 1600 and 1110i has a large market share in the fast growing market. Due to wide range of Intex models coming over the period company has to divest their investment form these models. 3315. 18 Cash Cow: Models like 1100. These models are left with a very small market share and are unable to generate revenue for the company. These models generally require less investment and the company strategy is that the company in their other segments will use high revenue generated from these models. 5110 and 2100. These models are generating high cash but at the same time they require high promotional expenses to maintain their lead. 1110i. Dog: Under this category comes model like Intex 3310.Models like 6680. .

1600. .STAR Intex. . 2100. 1) As long as the model is new or in introductory stage there is a big question mark over the future of the newly launched model. company invests a huge amount in advertisement The prime examples of this stage are the newly launched models like 9300.1100. N 70. N 90 CASH COW Intex. 3315.1110i.8810. To transform it’s newly launch model from question mark to star category.6680. 1110i Question Mark Intex 3250. 6600 DOG Intex 3310. 5110 Analysis of Intex´s expansion strategy based on BCG model.

3315 and 5110.When the model reaches decline stage company stops its production with a view of investing this amount in the development of other new models. 3) The models which generally constitute the class of cash cows are 1100. 3310. 2) The models which generally constitute the star class are 8809.Question Mark Does Not Necessary Reflect that the Product is in Introductory Stage the Best Example. 8810 V. The models of this stage are 2100.The models belonging to this class generate a huge revenue for the company and at the same time its promotional expenses are very low or negligible. When a product reaches this stage company starts acting with a view of developing a product or a model with more refine technology and more advanced features. 6600.N models of Intex were launched a year and half before but are still in introductory or question mark stage because of their wrong marketing strategy and complex technology which completely led to the failure of the first mobile of this series i.e. 4) As soon as a model reaches decline stage it is referred to as dog. .1110i. it is because of this character they are referred to cash cows.The models belonging to this class are in growth stage and require a decent amount of promotional expenses but at same time they generate revenues and have the potential to become cash cows. N-Gage. show and 1110 and now 1110i.

Every model it launches is a more developed and advanced version of former. . Hence it can be concluded that Intex works according to their expansion strategy i. when the company got feedback that this set has problems concerned with battery back up and Network. when Intex found that 2100 was not working it launched 2112 By changing and overcoming the Draw Backs of Earlier Model .e.The prime example is 2100. For this purpose we start with the dog class or decline stage. We can observe the whole BCG model with help of a prime example. When model doesn’t work it discards the model and launches a new model according to market trends and wants of customer. Company immediately stopped its production with a view of developing new model and Came up with 2112 Overcoming its Defects.

Porter’s 5 forces Model The five factors in Porter’s 5 forces Model in case of Intex could be analyzed as follows: 1) Competitive Rivalry Though is the apparent market leader in the Indian Mobile market but no doubt one can not overlook the likely competitor it faces from competitors like Motorola and Samsung which are two big players apart from Intex. . Smaller players like LG are also there.

With increasing globalization and trade barriers melting. But may in future we may come across substitute products even for mobiles as in case of Laptops replacing PCs. there is no apparent concern.2) Power of suppliers With more manufacturing units in India. 5) Threat of new entrants. the company should also have an eye on this issue though there has been no recent issues regarding this. Intex may face problems regarding the bargaining power of its suppliers. there is obvious impact on the pricing of the models of Intex. there are certain complications which all companies along with Intex have to deal with and introduce attractive schemes and models to maintain its consumer base and share in the market. 3) Threats of substitutes Talking about the substitutes of mobile phones. So. . there are very rare. With people opting for the best at the least price. The prices of the High end models tend to decrease within a span of weeks. new players are entering into every lucrative sector so as in the case of Mobile Handsets. So on this front. 3) Power of buyers With a huge increase in consumer base and competitors in the mobile market. But with increasing competition among vendors and also among companies a likely case may arise.

So there is ample amount of threat for the existing companies as these new players are too high in technology and with proper planning they may make a hold of their own in some time. .Companies like HP and Philips have also entered the Mobile Market.

Findings .

The Increasing no. • • On the basis of the Porter’s five Forces model. we found out that the number of the question marks-the introductory models or yet to establish models of Intex are many as Intex keeps introducing several models one after another. • There is also a likely threat from the entry new players like HP. Philips in the Mobile handsets market. 6600) to finance new Product Development.The main Analysis reflects all the major facts and issues related to the Expansion Strategies of Intex. Following is some of the main findings:• Intex is the World’s largest mobile phone manufacturing company and is the clear market leader in India Intex's brand image and the amount of customers they have won have a high degree of brand loyalty and this is one of its success factors. 1108. Based on the BCG matrix. • Wide range of outlets which provides fast Customer Service post. of players and the race to win the consumer loyalty has made the consumer a powerful entity and now the Indian • . keep innovating new products • Wide range and competitive product portfolio from "Question Marks"(8809 v show) and "Stars" (1110) and especially "Cash Cows" (Intex1100.and pre. • • It has the policy of always bringing the best to the people.sales and more comfortable distribution channel. we found that that Intex is facing a huge competition from India’s no 2 Motorola and Samsung as well.

consumer can affect the mobile market more accurately which results in lowering prices of the new launches as well. • Companies are throwing schemes and offers to attract the Customers to buy their brand instead of competitors. Intex still is the obvious largest player in Indian Mobile Market and has the ability to lure its customers very well. • . In spite of all the facts.

through television etc. Hence in order to get better results.e.Recommendations Intex is the market leader in India but there are some important factors which Intex has to keep in mind in order to sustain there current market position. • Intex in Order to continue with its expansion strategy is launching various models with technological advances but at the same they should keep in mind that General Customer is not aware of all this new and complex Usage Pattern. it is right to interpret from the part of Intex that v Series is a potential market for upper segment but at the same time upper segment are not only a part big cities but even exist in small cities where there are no PVRS or shopping malls hence Intex should look to advertise its models via more popular medium i. These are listed below. The newly launched N Series is only advertised in big shopping malls and PVRs. . • Intex follows a very aggressive advertising strategy but at the same time Intex needs to know that elite customers do not exist only in metropolitans but even in small cities. Intex should create customer awareness in the form of educative promotion and at the same time should also look to educate the dealers about the latest development in the field of technology.

. Sony Ericssion.Hence Intex needs to develop models which are less in weight and at the same time more fashionable.• Intex is very popular in India both in terms of sale and brand image but as there is a famous quote which says that no one is completely perfect in this world. this is also applicable in case of Intex because the models of Intex are bulky and somewhat less fashionable compared to its competitors (Motorola. LG). Samsung.

com .in www.com www.intextechnologies.google.BIBLIOGRAPHY • • Marketing Management by Phillip Kotler Organisational behaviour by Kavita singh Positioning: The Battle for your mind by Al Ries & Jack Trout • Websites • • • www.intexmobiles.

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