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A PROJECT REPORT ON
“RETAILERS PERCEPTION
TOWARDS MICROMAX MOBILE
SETS”.

Project Submitted by:
Manish Kumar Singh
Regd. No.-420921105
42, Post Graduate Diploma in Management.
Regional College of Management Autonomous.

REGIONAL COLLEGE OF MANAGEMENT
CHAKADOLAVIHAR, CHANDRASEKHARPUR
BHUBANESWAR-751023


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EXECUTIVE SUMMARY OF THE
PROJECT










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EXECUTIVE SUMMARY
A motivated person will be ready to act. How he actually acts is influenced
by his perception of the situation. PERCEPTION is a complex process by
which people select, organise, and interpret their sensory stimulation into a
meaningful picture of the world.
Telecom industry is one of the fastest growing and the next best
revolutionary concept in today‘s communication. As we know that cellular
phone are now used as one popular tool in communicating with each other.
People are getting benefited in numerous ways. Increase in the teledensity
and the net mobile phone addition which is around 50% every year has
made cell phones business go swift.
This industry is not only restricted to urban areas. It‘s growing popularity
has been flagged in rural areas as well. Availability of high end features
with affordable price tag has made this industry to penetrate into rural areas.
These radical changes marks out that telecom industry has brought a boom
to our economic development creating a high perceptional value in between
the makers of the cell phone companies, the retailers selling these phones
and the consumers using these phones. If we take a look at the
demographics of INDIAN consumers with respect to cell phone markets
then it is predominantly huge the reason being rise in need of
communication in day to day life.
MICROMAXX a popular cell phone maker in INDIA has tapped the market
by adopting the strategy of making low cost mobile phones and adding high
end features to these models. The major reason being consumers in India
has unique preferences with respect to the selection of mobile handsets.
Therefore, the company is focusing on innovation, design and use of latest
technologies to develop products at affordable prices. In addition to that
Micromax also focuses on developing higher value premium products
targeted at urban populations.


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Contd....
Thus my project is made to analyze the present scenario of micromax
business and its scope of development to tap the market potentiality and to
maximise the productivity. It is not only intended to focus on the sales
concept but also a guide to deliver effective expertise in being familiar with
the mindset of the retailers. During the course of the survey, statistics have
been collected from various outlets of Sambalpur & its peripheral areas.
Steps have also been taken in the project to analyze the solutions for
Micromax with special attention being driven to consumer demand.
Although all my research study is based on primary data that is collected
through questionnaire but few information is collected through secondary
data like company profile. The sample size is 150 and the research design
chosen is exploratory research design. A number of personal, psychological,
demographic and other factors influence customers buying behaviour. Most
of the customers get information from their friends and their evaluations are
based on that information‘s. Advertising and Word of mouth
communication play important role to create brand awareness and lead high
sales figures for mobile handsets.










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INTRODUCTION









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1. TELECOM INDUSTRY IN INDIA

The Indian telecommunication industry is the world's fastest growing
industry with 826.93 million mobile phone subscribers as of April 2011.
It is also the second largest telecommunication network in the world in
terms of number of wireless connections after China. As the fastest growing
telecommunications industry in the world, it is projected that India will have
1.159 billion mobile subscribers by 2015. Besides that, projections by
several leading global consultancies indicate the total number of subscribers
in India will exceed the total subscriber count in the China by 2013.The
industry is expected to reach a size of 344,921 crore (US$76.92 billion) by
2012 at a growth rate of over 26 per cent, and generate employment
opportunities for about 10 million people during the same period.

(Figure1.1)
According to analysts, the sector would create direct employment for 2.8
million people and for 7 million indirectly. In 2008-09 the overall telecom
equipments revenue in India stood at 136,833 crore (US$30.51
billion) during the fiscal, as against 115,382 crore (US$25.73 billion) a
year before.




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1.1 HISTORY
Telecom in the real sense means the transfer of information
between two distant points in space. The popular meaning of telecom
always involves electrical signals and as a result, people often exclude
postal or any other raw telecommunication methods from its meaning.
Therefore, the history of Indian telecom can be started with the introduction
of telegraph
In 1880, two telephone companies namely The Oriental Telephone
Company Ltd. and The Anglo-Indian Telephone Company Ltd. approached
the Government of India to establish exchanges in India. The permission
was refused on the grounds that the establishment of telephones was a
Government monopoly and that the Government itself would undertake the
work. In 1881, the Government later reversed its earlier decision and a
licence was granted to the Oriental Telephone Company Limited
of England for opening telephone exchanges
at Calcutta, Bombay, Madras and Ahmadabad and the first formal telephone
service was established in the country. On the 28th January 1882, Major E.
Baring, Member of the Governor General of India's Council declared open
the Telephone Exchanges in Calcutta, Bombay and Madras. The exchange
in Calcutta named the "Central Exchange‖ was opened at third floor of the
building at 7, Council House Street, with a total of 93 subscribers. Later that
year, Bombay also witnessed the opening of a telephone exchange.
While all the major cities and towns in the country were linked with
telephones during the British period, the total number of telephones in 1948
numbered only around 80,000. Post independence, growth remained slow
because the telephone was seen more as a status symbol rather than being an
instrument of utility. The number of telephones grew leisurely to 980,000 in
1971, 2.15 million in 1981 and 5.07 million in 1991, the year economic
reforms were initiated in the country.



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1.2 PRIVATIZATION OF
TELECOMMUNICATIONS IN
INDIA

The Indian government was composed of many factions (parties) which has
different ideologies. Some of them were willing to throw open the market to
foreign players (the centrists) and others wanted the government to regulate
infrastructure and restrict the involvement of foreign players. Due to this
political background it was very difficult to bring about liberalization in
telecommunications. When a bill was in parliament a majority vote had to
be passed, and such a majority was difficult to obtain, given to the number
of parties having different ideologies.
Liberalization started in 1981 when Prime Minister Mrs. Indira
Gandhi signed contracts with Alcatel CIT of France to merge with the state
owned Telecom Company (ITI), in an effort to set up 5,000,000 lines per
year. But soon the policy was let down because of political opposition. She
invited Sam Pitroda a US based Non-resident Indian NRI to set up
a Centre for Development of Telematics (C-DOT); however the plan
failed due to political reasons. During this period, after the assassination of
Indira Gandhi, under the leadership of Rajiv Gandhi, many public sector
organizations were set up like the DepartmentofTelecommunications (DoT)
VSNL and MTNL. Many technological developments took place in this
regime but still foreign players were not allowed to participate in the
telecommunications business.
The demand for telephones was ever increasing. It was during this period
that the Narsimha Rao-led government introduced the national
telecommunications policy [NTP] in 1994 which brought changes in the
following areas: ownership, service and regulation of telecommunications
infrastructure.
Contd....


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They were also successful in establishing joint ventures between state
owned telecom companies and international players. But still complete
ownership of facilities was restricted only to the government owned
organizations. Foreign firms were eligible to 49% of the total stake. The
multi-nationals were just involved in technology transfer, and not policy
making. After 1995 the government set up TRAI (Telecom Regulatory
Authority of India) which reduced the interference of Government in
deciding tariffs and policy making.
The DoT opposed this. The political powers changed in 1999 and the new
government under the leadership of Atal Bihari Vajpayee was more
Pro-reforms and introduced better liberalization policies. They split DoT in
two- one policy maker and the other service provider (DTS) which was later
renamed as BSNL. This was a gateway to many foreign investors to get
entry into the Indian Telecom Markets. After March 2000, the government
became more liberal in making policies and issuing licenses to private
operators. The government further reduced license fees for cellular
service providers and increased the allowable stake to 74% for foreign
companies. Because of all these factors, the service fees finally reduced and
the call costs were cut greatly enabling every common middle class family
in India to afford a cell phone. Nearly 32 million handsets were sold in
India. The data reveals the real potential for growth of the Indian mobile
market.
In March 2008 the total GSM and CDMA mobile subscriber base in the
country was 375 million, which represented a nearly 50% growth when
compared with previous year. As the unbranded Chinese cell phones which
do not have



Contd....


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International Mobile Equipment Identity (IMEI) numbers pose a serious
security risk to the country, Mobile network operators therefore planned to
suspend the usage of around 30 million mobile phones (about 8 % of all
mobiles in the country) by 30 April. 5–6 years the average monthly
subscribers additions were around 0.05 to 0.1 million only and the total
mobile subscribers base in December 2002 stood at 10.5 millions. However,
after a number of proactive initiatives were taken by regulators and
licensors, the total number of mobile subscribers has increased greatly to
811.59 million subscribers as of Mar 31st 2011.
India has opted for the use of both the GSM (global system for mobile
communications) and CDMA (code-division multiple access) technologies
in the mobile sector. In addition to landline and mobile phones, some of the
companies also provide the WLL service.















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1.3 THE INDIAN MOBILE HANDSET MARKET
The Indian cellular market is very dynamic. New carriers and many new
local mobile device manufacturers have entered this already crowded
mobile device market. The intense competition results in very low call rates
and low-cost devices from multiple manufacturers in the market. This
market was previously dominated by just a few vendors such as Nokia,
Motorola, Reliance and Vodafone.
Mobile device sales in India are forecast to reach 138.6 million in 2011, an
increase of 18.5 percent over 2010 sales of 117 million units, The mobile
handset market is expected to show steady growth through 2014 when end
user sales surpass 206 million units.
―Established global device manufacturers are losing ground due to fierce
competition from local and Chinese manufacturers in the low-cost
segment,‖ ―Price remains the main criteria when buying any consumer
electronic device in India, including a mobile device. Carrier strategies,
lower tariffs and/or third-generation (3G) data plans will continue to shape
the mobile device market in India.‖
India, contributing approximately 10 percent of worldwide sales, is an
important market for manufacturers with aspirations to grow their global
market share. Due to its sheer size and open market (mobile devices being
sold independently of cellular connection); it has attracted many global
mobile device manufacturers. The market is also supported by many local
manufacturers. This has led to more than 50 brands vying for consumer
attention in India, besides the many brands in the black markets (selling
without invoices).
Contd....



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(Figure 1.2)
The entry of Indian mobile handset players focusing on low-end, value
conscious consumers has intensified competition in the Indian mobile
device market. A large volume of mobile device sales in India come from
the low-end device segment. The average selling price (ASP) of a mobile
device is approximately $52, with 85 percent of devices sold costing below
$100.
With the growing influence of local handset players in the low-end segment,
the traditionally stronger, big global players have had their positions
weakened. At the same time, the midrange to high-end market is getting
increasingly competitive too, with a greater focus from global players on the
Indian market and the launch of competitively priced midrange and high-
end mobile devices.
The Indian cellular market is highly voice-centric with just 10 percent of
carriers' revenue coming from data services. Within that, 85 percent of
revenue comes from Short Message Service, leaving less than 2 percent of
overall carriers' revenue coming from data access on mobile devices.

Contd...


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Another fact which separates India, though not the only one, from other
markets is that it is a prepaid market, with approximately 95 percent of
existing subscribers on prepay schemes, and 98 percent of new subscribers
choosing the prepaid option.
This all corroborates the fact that the Indian mobile device market is driven
by the lowest call rates in the world and dominated by low-cost devices,
which account for 80 percent of overall sales in India in 2010.
Although 3G technology has not been introduced in India yet, 3G device
sales are expected to account for 16.7 percent of total sales in 2011, up from
9.2 percent in 2010. By 2014, 3G devices sales are expected to account for
69 percent of total sales. Smartphone sales in India made up 5.2 percent of
total device sales in the first quarter of 2011, and are expected to
increase18percentin2014.
With so many players in fray , mobile handset marketers are banking on
innovation and differentiated positioning for getting heard. The brands
which are able to come out with some innovative functionality in the mobile
handset get noticed and see spurt in sale.

―Cellular phone penetration in India stood at 45 percent in 2011, and the
market is entering into a second phase of growth, with replacement sales
increasing from 45 percent in 2010 to 50 percent of total sales in 2011.
Moves to high-speed 3G networks is bringing in more challenges in terms
of innovation and keeping up with fast changing consumer demand.
Shortening product life cycle times and declining sales of voice-centric
devices will bring changes to the market during the next five years.
So the lessons to be learnt by other new entrants is that either you innovate
for introducing new unheard of features or go for niche marketing and then
go for high decibel advertising. In absence of differentiating positioning
statement it‘s difficult to get heard by customer


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1.4 MICROMAXX
COMPANY BACKGROUND

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. It has an annual turnover raising to $5000
million and revenue worth $36.17 million. With this it has got 23 domestic
offices across the country and international offices in Hong Kong, USA,
Dubai and now in Nepal. 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
come with a quality seal meaning product satisfaction, high reliability
resulting in repeated business. Micromax has 24 hrs operational customer
service centres just in case you need that small bit of information albeit at
the wrong hour. Micromax Inc. has recently seen a rise in market share.
Micromax succeeded with innovation as the guiding force. Most of the
successful handsets of Micromax had something unique to offer either in
terms of features or customization for a segment.
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), Aspirational Qwerty Keypad Handsets,
Operator Branded 3G Handsets, OMH CDMA Handsets, etc.
With a 360 degree advertising 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.



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One of the major aspects that contribute towards the substantial monthly
growth of Micromax is its 80% sales in the rural areas. 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
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 wireless-
powering 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.
 Micromax is currently the third-largest GSM vendor in the Indian
market, A share of 8.1%, perhaps just a few marks behind Samsung.
 Samsung at the second position has 10.4% control, as per market
reports.
 Nokia with 52.7% share is the number 1 vendor.

(Source: Forbes India, 27 Feb. 2010)





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HISTORY
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.
Company entered market in March 2008 in which it had a market share of
meagre 0.59% average.
Micromax Inc. has recently seen a rise in market share. Micromax is the
largest Indian domestic mobile handsets company in terms of units shipped
during the quarter ended March 31, 2010 and the third largest mobile
handset seller in India as at March 31, 2010 On March 31, 2010 the
company registered the market share of 6.24% for that quarter which grew
from 0.59% in September, 2008.
Micromax became the fastest growing mobile brand in India for the fiscal
year 2009-10. Handset sales have grown by 123.48% from 1.15 million
units in the quarter ended June 30,2009 to 2.57 million units in the quarter
ended March 31, 2010. Micromax also sells data cards to service providers
in India
Micromax mobile needs no introduction today. Just two years back people
were not aware of the brand at all but today it is .India‘s third largest mobile
selling company by volume after NOKIA and Samsung (IDC report).brands
success can be attributed to its ability to understand the need of the market,
aggressive marketing with a budget of 100crore and smart distribution and
channel management.
It is one of the leading INDIAN telecom companies 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


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1.5 CURRENT PERORMANCE

Micromax is the largest Indian domestic mobile handsets company in terms
of units shipped during the quarter ended March 31, 2011 and the third
largest mobile handset seller in India as at March 31, 2011. On March 31,
2011 the company registered the market share of 6.24% for that quarter,
which grew from 0.59% in September, 2008. Micromax became the fastest
growing mobile brand in India for the fiscal year 2010-11. Handset sales
have grown by 123.48% from 1.15 million units in the quarter ended June
30, 2010 to 2.57 million units in the quarter ended March 31, 2010.
Micromax also sells data cards to service providers in India.
As per IDC report micromax has displaced LG to become third largest
selling mobile handset company in INDIA with a market share of 6%. The
company today sells more than a million handsets a month and is a RS 1600
crore worth brand .The company has presence i more than 500 districts and
90,000 retail outlets, The company started its mobile handset business in
2008 and the challenge was to establish an identity in a market dominated
by bid MNC ‗s like NOKIA and SAMSUNG companies.
Today Micromax has become brand which people relate and look up to for
realizing their individual device preferences and other out of the box
solutions. Micromax is now churning out 1 million phones a month.



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1.6 MAJOR MILESTONES

Being the makers of software and embedded technology Micromax started
its entry into mobile hardware business by making a cell phone which has
long battery life. This product became a huge success after its launch
because people required there mobile to have a long standby time required
for their long usage.


(Table1.1)

 From its inception into makers of cell phone it has now become a
renowned cell phone maker which has over a market share of (6.9)
percent after Nokia (39 per cent) and Samsung (17 per cent).

 Micromax is the only company whose design lab to marketing time
is 3 months whereas most of the cell phone makers take more than 1
year to design and bring a new phone loaded with hi-tech features.
Contd....


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 In 2008, when the Indian handset market was dominated by
multinational companies such as Nokia, Samsung, LG, Sony
Ericsson and Motorola, Micromax joined the party with an aim to
provide mobile users entry-level and mid-level handsets priced
between Rs 1,800 and Rs 2,400. In the initial phase of their journey,
Micromax had confined itself to small towns and rural areas, but
now, after three years of operations, it has a distribution network of
around 75,000 retailers across the country.

 "Micromax has sold 7.05 million mobile handsets in the last fiscal.
The company's handset sales have grown by 132.43 per cent from
1.11 million units in the quarter ended June 30, 2010 to 2.58 million
units in the quarter ended March 31, 2011," figured out by Mr. Rahul
Sharma, executive director of Micromax.
 Erratic power supply is a major problem in rural as well as urban
India, and to address this problem Micromax increased the size of
the battery to 1800 mAh, as a result of which its X1i phone lasts for
30 days on standby and that too at an affordable price of Rs 2,150.
The phone was a big success in rural India and gave the company an
initial boost.

 Micromax knew that if it wants to maintain momentum and
challenge well established players such as Nokia it needs to
strengthen its distribution network because even after the success of
initial launches its brand recall value among customers wasn't great.
So the company came up with another innovation, this time
pertaining to distribution. Micromax knew that commissions given
by phone manufacturers to their channel partners are often very low,
leading to a lot of dissatisfaction. The company decided to give
around five per cent commission to each of its distribution chain
partners, which rapidly led to increase in sales.
Contd....



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 After this, Micromax expanded its range of handsets in keeping with
new market demands. In 2010, it even tied up with MTV for co-
branded phones to connect with potential customers in metros.
 Another way in which Micromax innovated was by launching
dual SIM and dual reception (GSM and CDMA) handsets before
Nokia did. In its latest innovation, to suit the requirements and
preferences of different consumer groups, Micromax has released
Android and touch screen handsets for less than Rs 7,000 each.

 The most important thing that increases customer loyalty is it‘s after
sales service, and to achieve this Micromax has more than 370
strategically located sales service centres in India, and also one each
in Nepal and Sri Lanka. In addition to the service centres, Micromax
also has tie ups with five third party owned, modular (component)
service centres which are exclusive to Micromax and provide a full
suite of after sales services excluding chipset and printed circuit
board (PCB) replacement.

 Micromax will continue to offer a variety of commercially appealing
mobile handsets with attractive aesthetics, designs and a
combination of innovative features that are easy to use, and are
suited for local requirements and preferences of different consumer
groups.

 The company plans to target segments in which it is currently not
present and will grow its portfolio of CDMA and 3G products. In
the coming months Micromax plans to launch more handsets in the
Android and touch screen categories.






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1.7 VISION AND MISSION

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 we want
and to be seen as the 'Most Respected' Indian Company. 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 believe that consumers in India have unique
preferences with respect to mobile handsets such as long battery life, dual
GSM capability, low-cost QWERTY phones, universal remote control and
gaming phones. In addition, we also focus on developing higher value
premium products targeted at urban populations. We believe that our
product development capabilities have enabled us to establish ourselves as
an innovative Indian mobile handset company.



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1.8 CORE VALUES

Accessibility
Life is a challenge. We know that. But communicating doesn't have to be.
At Motorola, we recognize that customers have different needs and
capabilities. We are committed to creating products that meet the needs of
everyone possible — regardless of abilities.
We provide a wide range of products for people with diverse
communications needs — with hearing, speech, vision, dexterity, mobility
or cognitive needs at varying levels.
Business Conduct
The Micromax Code of Business Conduct reaffirms what each Micromax
employee stands for: Doing the right thing. Every day. No excuses.
Micromax's "Key Beliefs" have been in existence for decades, and
Micromax continues to have a strong culture of corporate ethics and
citizenship.
Our Key Beliefs: The Way We Will Always Act
 Uncompromising Integrity
 Constant Respect for People
The Micromax Code of Business Conduct sets the standards for Micromax
commitment to uncompromising integrity. Since its original establishment
Contd....



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in the 1991s, the Code has provided Micromax employees guidance for their
business activities, placing a priority on establishing trust with our
stakeholders. However, it is not enough to declare our good
values. Micromax is committed to acting on them — through the potential
of our technology and the way we conduct our business.
Environment, Health & Safety



Recycling
Micromax is a strong proponent and supporter of global environmental
sustainability and recycling programs. In partnership with our carriers,
customers, retailers and recyclers and on our own, we operate take back
programs across the globe.
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.







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1.9 BOARD OF DIRECTORS




Mr.VikasJain
Director of the Board, Micromax Informatics Ltd.

Mr. Vikas Jain, Business Director Micromax, said, ―Delivering best of the
technology and path breaking innovation has always been our priority. We
work towards bringing exclusive technology in the hands of the masses. A
3G Mobile is still considered an expensive piece of technology, but H360 is
here to break all the rules. The journey of 3G in India has just begun and
there is a need for mass awareness of 3G. We are thankful to MTNL for
having worked with us to enable us to bring forth a revolutionary product
for the Indian 3G subscribers. We are confident that this handset will
redefine the 3G experience in India and with increasing awareness and
availability, 3G mobiles will gain mass popularity.
Mr. Rajesh Agarwal
Mr.Rajesh Agarwal is the Managing Director and one of the Promoters of
our Company and has been involved with our Company since its inception.
He holds a bachelor‘s degree in electrical engineering from Institute of
Engineering, Calcutta. He has over 22 years experience in business
restructuring, channel management and information technology. He has
previously worked with Partech Computers Limited as customer support
engineer and Universal Computers as customer support engineer.



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1.10 ORGANISATION STRUCTURE



(Figure 1.3)

We can see the figure which depicts the organisation structure of micromax.
The design is well structured and thus each and every department is
coordinated and interlinked with each other. The managing director has an
interconnection with the other managers which are actively involved in the
business process.
The decisions taken are centralized and the top management is well
conversant with all the team members of the organisation. Any issue
pertaining to organizational matters is thus reported to the managing
director of the organizational body by the forces deployed below and hence
is resolved by the managing director of the company.

Contd....


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This kind of organisation structure makes the managing director to oversee
all the areas of the organisation and take necessary action if required.
Information flow is smooth and precise therefore avoiding communicational
interruptions.
There is single set of standards for operational, financial, human resource
management. A rapid decision making is possible because of availability of
required data from each corner of the organization. This is the only reason
why MICROMAX has adopted this structure
Discipline in work is associated with this kind of organisational structure
thus avoiding staff conflicts which are hectic and can‘t be easily resolved.
One more issues to be talked off is the managing of vital resources and
crucial information which is relevant for the company in times.. For
example the necessity of acquiring or raising funds for any sort of project is
the sole responsibility of the chief financial officer. He will directly report to
the managing director for aid and hence seek permission directly to go
ahead for complying with the requirement.
Thus making a consensus about MICROMAX it has typically tried to strike
a balance between theory and experience. Managers have applied various
management and leadership theories in varying degrees thus combining
their graphs with varying levels of success.










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OBJECTIVES OF THE
STUDY






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1.11Objectives

It is necessary to specify the objectives of the study. This is because of
specification of objectives will enable us to study various areas and aspects
with clarity.
 To know retailer‘s opinion about the Micromax products.
 To know the sales performance of micromax product in Sambalpur
market.
 To identify retailers perception about competitors products.
 To know existing promotional strategy for micromax handsets.


1.12 Aim

Aim of the study is to analyze the gap and suggest strategy to retailers, for
marketing Micromax mobile handsets.



1.13 Key Questions

1. H1 What is retailers opinion regarding Micromax mobile handsets?
2. H2 What are retailer‘s expectation form micromax handsets?
3. H3 Identifying the existing strategy of Micromax?
4. H4 Finding the gap in existing strategy of Micromax?




29








LIMITATIONS OF THE
STUDY





30


1.15 LIMITATIONS OF THE STUDY

While conducting a Marketing Research, the researcher faces with a lot
of limitations. The present study is not an exception. A few errors have
been expected despite of best efforts to avoid them but this is expected
that still the study is much relevant, in spite of following;
 As the study is based mainly on primary data and some of secondary
data are used in this study, the possibilities of personal bias can‘t be
ruled out.
 The researcher intention to reach to a large sample size could not be
accomplished due to lack of time and financial resources the
intention could not be accomplished upon the desired level.
 Some respondents were reluctant to reveal the information‘s on the
pretext that they didn‘t have sufficient time.
 There was information bias occurred at the time of data collection.
 Motivating the people for the survey was a challenging part of the
survey.
Despite all of the limitations efforts are being made to overcome the
errors in the survey.







31




RESEARCH
METHODOLOGY








32


2Research Methodology

Research design is needed because it facilitates the smooth sailing of the
various research operations, thereby making research as efficient as possible
yielding maximal information with minimal expenditure of effort, time and
money. Just as for better, economical and attractive construction of a house,
we need a blueprint well thought out and prepared by an expert architect;
similarly we need a research design or plan in advance of data collection
and analysis for our project. Research design stands for advance planning of
the methods to be adopted for collecting the relevant data and the techniques
to be used in their analysis, keeping in view the objective of the research
and the availability of the staff, time and money.
Preparation of the research design should be done with great care as any
error in it upset the entire project. Research design, in fact, has a great
bearing on the reliability of the results arrived at the end as such constitutes
the firm foundation of the entire edifice of the research work.
Aim Of The Research
Aim of the study is to analyze the gap and suggest strategy to retailers, for
marketing of Micromax mobile handsets.

2.1 SAMPLE DESIGN
Sample Unit: Retailers of mobile handsets
Sample Size: 150 retailers by covering parts of SAMBALPUR (ORISSA).
Sampling Type: Non probability judgment sampling




33


2.2APPROACHES OF DATA COLLECTION
RESEARCH DESIGN:

DESCRIPTIVE RESEARCH
The research is primarily descriptive in nature. The sources of information
are both primary and secondary.
Approach constitutes of both
I.Primary data.
II.Secondary data.

Primary sources:-
 Questionnaire Analysis (ENCL.)

SECONDARY DATA:
It refers to those data that was already being corrected by and analyzed by
someone else. This data is collected from
 Reports
 Magazines.
 Newspapers and books
 Internet

2.3SCOPE OF THE STUDY
 The study was aimed at understanding and analyzing the retailer
perception towards Micromax handsets.
 The research was conducted in the geographical area of
SAMBALPUR(ORISSA),




34



SCOPE FOR FURTHER RESEARCH
SALES ANALYSIS:
The study will help in analyzing the sales of territories where the respondent
retailers are located in terms of sales volume, their sales calls closing ability.
MOTIVATION-MIX ANALYSIS:
This study will definitely help in ganging the adequacy of current
motivators on sales performance of retailers.
RETAILERS ANALYSIS:
The study also focused on evaluating retailers in terms of sales performance
and mention expectations by keeping in view other performance of last 2 to
3 years. This will help them ranking in terms of sales turnover and their
consistency in sales performance and additional sales generation.
MARKET ANALYSIS:
This study will help in knowing that the numbers of retailers are energies to
capture this particular market. This study will help in knowing the
company‘s share and total market demand through market argument
competition density etc.
ANALYSIS BETWEEN COMPANY & RETAILERS:
The studies are also focused on the expectations of retailers from company
and extend of their fulfilment though communication effectiveness,
complaints, handling etc.
2.4Hypothesis
H1: Micromax provides the best service.
H2: Expectation is met by the micromax Solutions.
H3: Response of retailer‘s towards micromaxis positive.


35

H4: Micromax sales process is better.

2.5 RATIONALE OF THE QUESTIONNAIRE:

A questionnaire may fulfill all the requirements as discussed earlier like it
should be short, precise, unbiased etc. However if the questionnaire is not
properly constructed, it will fail to fulfill the objectives of the survey. In my
research I have set up 16 questions required to collect the data which is
necessary to complete my research work. Most of the questions asked are
closed response and multiple choice based questions. The importance of
each question thus described below;
1. The first question is to check the density of the retailers selling the
handsets on an average which will determine the attrition rate of
handset selling.
2. The second question resembles about customer response. Response
for a product tells us about the awareness level of customers related
to the company‘s product.
3. The third question is about the retailer‘s opinion on micromax
products which will reflect the perceptional values of retailers
towards the company. This question relates to my research topic as
well.
4. My fourth question asks about the availability of the product because
it determines the products reach to its customer in its area of
operation.
5. Respondent‘s age is the fifth question which is to know which age
group influenced to purchase the company products.
6. The sixth question is to find out the promptness of distribution
system of the company. Physical distribution manages the flow of
products from producers to customers in a cost effective way.
7. Creation of superior customer value and delivering high levels of
customer satisfaction are the core areas in marketing the seventh


36

question thus highlights to know the performance of marketing
efforts adopted by the company to increase the sales figure.
Contd...

8. Eighth question is to know about the sales promotion schemes
provided by the company. Sales promotions are to stimulate the
customer interest in products hence is a crucial part of my research
topic.
9. Relevance of the ninth question is to judge the overall opinion of
micromax mobiles assumed by the retailers and the numbers
obtained would help me to ascertain the retailer‘s quotient.
10. The tenth question ask about the attributes of micromax mobiles
which are important to know because presence of the attributes
makes the product a special one and lets consumer to choose the
products on behalf of these attributes.
11. It is crucial to make the comparison of micromax products related to
its competitor because the results are essential and any discrepancies
will take the product to further development. So eleventh question is
based on this.
12. Twelfth question is related to make a comparison on pricing of the
product with competitors. Pricing is essential for both the retailer‘s
and the consumers.
13. Discounts are a part of sales promotion. Hence the schemes designed
by the company in appropriate schedules is very important because
consumer purchase the products when there is discount scheme
available and retailers also sell the products more in number with
available discount schmes.
14. After sales service provided by the company are a part of value
addition to company and its product.
15. The fifteenth question asks about any element that is missed in the
product. It is because market is dynamic and hence to do the
business the product must correlate with the market change.


37

16. Since retailers are associated with the selling of products to the end
users they can only depict the future of the micromax business.









ANALYSIS OF DATA





38




DATA ANALYSIS ANDCOMMENTS

This chapter is the core part of my dissertation because it includes the
research findings expressed by text, figures, tables, charts and graphs. It is
absolutely important to present them clearly for precise analysis.
In order to get the 150 respondents are chosen as sample space thereby
making them fill my questionnaires. To conduct the survey 10 respondents
are interviewed each day. Total of 15 days being taken to complete the
entire process and 1 more day for calculating the figures thus obtained.
My areas of survey includes main areas of Sambalpur town shops closer to
market areas, residential area, city malls, station square, bus stands and the
like .
My visits included outskirts of Sambalpur town like Burla, Durgapalli,
Ainthapalli, Chaurpur and the like.
The charts and graphs used are pie chart, column and bar graphs.
Therefore I present my findings of the survey report conducted in this
chapter.








39


Q.2. Consumers response towards Micromax products?

RESULTS

PARAMETERS
NO OF
RESPONDENTS
PERCENTAGE
RATINGS
EXCELLENT 30 20
GOOD 70 46.67
AVERAGE 30 20
BELOW AVERAGE 20 13.33
TOTAL 150 100

(Table 1.3)



(Figure 1.5)

20%
47%
20%
13%
CONSUMER RESPONSE
EXCELLENT GOOD AVERAGE BELOW AVERAGE


40


Q.3 Retailer‘s opinion about product‘s offer?
RESULTS





(Table 1.4)



(Figure1.6)


50%
23%
17%
10%
RETAILERS OPINION
Excellent Good Average Below Average
PARAMETERS
NO OF
RESPONDENTS
PERCENTAGE
RATINGS
Excellent 75 50
Good 35 23.33
Average 25 16.67
Below Average 15 10
Total 150 100


41


Q.4 Product availability of Micromax in the territory?

RESULTS






(Table 1.5)



(Figure 1.7)



10%
43%
30%
17%
PRODUCT AVAILABILITY

excellent good average below average
PARAMETERS
NO OF
RESPONDENTS
PERCENTAGE
RATINGS
excellent 15 10
good 65 43.33
average 45 30
below average 25 16.67
TOTAL 150 100


42


Q.5 What age of people do you think purchase micromax mobiles?

RESULTS


(Table 1.6)



(Figure 1.8)




3%
57%
23%
17%
Age Group Of Buyers
less than 20 20 - 30 30 - 40 40 & above
Parameters
NO OF
RESPONDENTS
PERCENTAGE
RATINGS
less than 20 5 3.33
20 - 30 85 56.67
30 - 40 35 23.33
40 & above 25 16.67
TOTAL 150 100


43

Q.6 Opinion on delivery of Micromax products as per order made
distributors?

RESULTS






(Table 1.7)


(Figure 1.9)


3%
17%
57%
23%
PRODUCT DELIVERY

excellent good average below average
PARAMETERS
NO OF
RESPONDENTS
PERCENTAGE
RATINGS
excellent 5 3.33
good 25 16.67
average 85 56.67
below average 35 23.33
TOTAL 150 100


44

Q7. Marketing efforts of Micromax company as compared to its
competitor‘s?

RESULTS




(Table 1.8)


(Figure 2.0)




6%
30%
63%
1%
MARKETING EFFORTS
excellent good average below average
PARAMETERS
NO OF
RESPONDENTS
PERCENTAGE
RATINGS
excellent 10 6.67
good 45 30
average 95 63.33
below average 1 0.6
TOTAL 150 100


45

Q.8 Promotional support that has been provided by company?


RESULTS







(Table 1.9)



(Figure 2.1)


6%
30%
63%
1%
PROMOTIONAL SUPPORT
excellent good average below average
PARAMETERS
NO OF
RESPONDENTS
PERCENTAGE
RATINGS
excellent 10 6.67
good 45 30
average 95 63.33
below average 1 0.6
TOTAL 150 100


46


Q.9 Overall opinion about Micromax by the consumers?

RESULTS
PARAMETERS
NO OF
RESPONDENTS
PERCENTAGE
RATINGS
excellent 45 30
good 85 56.67
average 15 10
below average 5 3.33
TOTAL 150 100

(Table1.10)



(Figure 2.2)



30%
57%
10%
3%
overall opinion of consumer's
excellent good average below average


47

Q.10 Attributes you consider most important in mobile handsets?

RESULTS





(Table 1.11)



(Figure 2.3)




43%
30%
17%
10%
IMPORTANT ATTRIBUTES
PRICE QUALITY DEMAND BRAND IMAGE
ATTRIBUTES
NO OF
RESPONDENTS
PERCENTAGE
PRICE 65 43.33
QUALITY 45 30
DEMAND 25 16.67
BRAND IMAGE 15 10
TOTAL 150 100


48

Q 11. Comparing to other company products, you rank Micromax products
as?


RESULTS

PARAMETERS
NO OF
RESPONDENTS
PERCENTAGE
excellent 14 9.33
good 130 86.67
average 5 3.33
below average 1 0.67
TOTAL 150 100

(Table 1.12)



(Figure 2.4)



Q .12 Comparing to other company products the price of products of
Micromax is?
9%
87%
3%
1%
Comparing to other company
products, you rank Micromax
products as
excellent
good
average
below average


49



RESULTS



PARAMETERS
NO OF
RESPONDENTS
PERCENTAGE
very high 0 0
high 0 0
reasonable 140 93.33
low 10 0.67
TOTAL 150 100

(Table 1.13)




(Figure2.5)





Q .13 Opinion about the discounts offer of Micromax products is?
0% 0%
93%
7%
comparing the price of micromax
products with competittor's
very high high reasonable low


50



RESULTS









(Table 1.14)






(Figure2.6)





Q14 After sales service that has been provided by company is?

80%
17%
3%
0%
opinion on discount offered by the
company
Very attractive Fairly attractive Not attractive No offer
PARAMETERS
NO OF
RESPONDENTS
PERCENTAGE
Very attractive 120 80
Fairly attractive 25 16.67
Not attractive 5 3.33
No offer 0 0
TOTAL 150 100


51


RESULTS


PARAMETERS
NO OF
RESPONDENTS
PERCENTAGE
Excellent 20 13.33
Good 95 63.33
Average 30 20
Below Average 5 3.34
TOTAL 150 100

(Table1.15)







Figure 2.7)







Q 15 What are the elements you miss in micromax mobile sets?

67%
20%
13%
0%
AFTER SALES SERVICEOF MICROMAX
MOBILES
Excellent Good Average Below Average


52


RESULTS


PARAMETERS
NO OF
RESPONDENTS
PERCENTAGE
Durability 10 6.67
Availability 110 73.33
Design 27 18
Any other 3 2
TOTAL 150 100

(TABLE1.16)



(Figure 2.8)







7%
73%
18%
2%
elements you miss in micromax
handsets
Durability Availability Design Any other


53

Q16. In your opinion what is the future of Micromax mobile handsets?


RESULTS


PARAMETERS NO OF RESPONDENTS PERCENTAGE
Excellent 100 66.67
Good 30 20
Average 20 13.33
Below Average 0 0
TOTAL 150 100


(TABLE1.17)



(Figure 2.9)



67%
20%
13%
0%
future of Micromax mobile handsets
by predicted by the retailers
Excellent Good Average Below Average


54




RESULTS









55


Following results has been interpreted from the research work.

1. COMMENTS

While conducting my survey in Sambalpur area I found that there is a good
progress in selling of micromax handsets. 21-30 number of handsets of
micromax recorded highest selling in one month on an average in those
shops which are strategically located in the central parts of Sambalpur city
area. Then 11-20 no‘s of handset are sold in outskirts of Sambalpur area
mainly due to available feature in an affordable price. So location and price
are the two crucial factors which made to sell the handsets more in numbers.
Due to stiff competition the handsets figures have not yet reached to 31 and
above in the city areas because city dwellers are a bit brand consciousness.

2. COMMENTS:

Consumer‘s opinion is taken to use them while figuring out of sales
performance. In their opinion they rated micromax products as good one
because they believe that it is the only product available in the market with
good quality and affordable price. They also replied that the products have
an innovative design with embedded technology which makes it a product
for middle class and to some extent higher middle class. They replied that
the main reason to rate it good because of its battery life which gives them
long standby time to gossip and use it for other purpose as well. The reason
for not saying Micromax as an excellent product is not having proven
technology like Nokia, Sonyericcson & Samsung brands of cell phones.



56

3. COMMENTS

Near about 50% retailer‘s marked that micromax product offer as excellent.
The reason is Micromax products comes with low cost which itself is a good
offer made so far as comparison to other leading brands in this segment are
concerned. Apart from good price range, accessories like Bluetooth headset,
USB cable comes with every purchase of micromax products which is the
main theme for increase in its customer base. They also added that handsets
with dual sim / dual stand by handsets switching networks (GSM - CDMA)
aspirational QWERTY keypad handsets are also the some key features that
exerts pull on customers.
A reasonable sales volume generated by the retailer thus adds profit margins
to his account. Retailers also replied most of their target customers are the
college students and they the micromax handsets because of its sleek design
and reasonable pricing.

4. COMMENTS

Sambalpur area is far away from the capital city and also has less population
as compared to the capital city of Odisha. This is the reason why the city is
not upgraded with the latest models available in the Micromax range. If we
take a look at the graph we can see that the numbers are high in the options
of good and average. The reason being consumers are not updated to the
latest product availability in the market. Creating awareness by retailers is a
way to make people updated which is not given a due importance in these
areas. The only awareness quotient being the TV ads and paper ad
published by the company.




57

5 COMMENTS

The highest number of purchase is made by the age group 20-30 which is 85
out of 150, as compared to other options.
The reason of more purchase made by this age group is due to likeness in
design, technology and pricing. A long durability battery promise has also
made the youth to switch over. Micromax handsets provide a long battery
standby which can last long hrs even if it is used roughly.
In other segments i.e. 40 and above age are less aware about micromax
products availability, features and its usage hence don‘t prefer to buy these
products. They firmly believe on proven technology and prefer to take
branded items at affordable rates and prefer to take low segment mobile
phone available in branded items category.

6 COMMENTS

The finding states that the product delivery is average. Due to unavailability
of proper shipping facilities in the town or else poor distribution channel
management i.e. arranged by the company is bringing out such
consequences. Distribution channels are probably the most visible aspects of
any company‘s marketing efforts. In this case, there might be spatial
discrepancy caused in the exchange process because of the geographical
distance. Or else it could be temporal discrepancy caused in the exchange
process because of the time gap the time the product consumed or time the
product is produced.





58

7 COMMENTS
Marketing efforts of the company is considerable one. Adoption of new
methods of marketing is less seen in Sambalpur, which is affecting the
increase in handset sales. Marketing increases awareness level in consumers
and priority should be given to these matters. Priority on change in product
addition, introducing new price and models, advertising, sales promotion
and publicity, sales force, customer service and the like are not upgraded
with time. As a result the no of outlets didn‘t increase subsequently with the
changing times. This concludes to say that marketing efforts are not
properly planned which results in rating average.

8 COMMENTS
Unlike marketing efforts retailers pointed out the same views for
promotional efforts given by the company. Retailers said that promoting the
products through product placements, internet, radio, contest , sponsorships
are not being done by the company to promote the product, which is
hampering the growth in that area. Attractive sales promotion schemes can
pull more customers to purchase the company products.









59

9 COMMENTS

Most of the retailers are in opinion to rate micromax products as good. The
reason to mark good is mainly due to the portfolio that has been created by
introducing low cost handsets for middle class people. So both areas
retailer‘s i.e. the central parts and the outskirts of Sambalpur area, are with
same view point that the products of micromax are good.
In addition to that few retailer‘s in the central part of Sambalpur area
marked the product excellent. The reason being the increase in sales figure.
They added that if company will give more priority on the issues like sales
promotions and marketing efforts then the sales figure could grow even
higher and company can make a reach to more inhabitants in that area

10 COMMENTS
The retailers considered price and quality of the products are essentially
important which got high scores.
Price is preferred as an important factor because consumers gives due
preference to pricing factors and select products accordingly. When the
customers come for purchase they look to the price tag and make selection
for purchasing.
So sticking to strategic pricing can result in achieving high sales. Also it
will give rise to strong competition against the competitors and will let to a
fierce full entry into the market thus making a cut throat competition.
They also replied that quality is next important factor after pricing because
a customer having purchasing power will not seek to price rather, will check
the quality of the product , the technology it has is upgraded one or not.
Contd...


60


Demand is the next important factor that is chosen by the retailers. Rise in
demand is can be a good sign for the business as well as it is important for
retailers because it will help in creating a gimmick effectively giving
enormous revenue generation.
Demand base will increase if there is equilibrium in between Quality and
Pricing of the product. It helps in expansion of business to a large extent.
Moreover some retailers had also rated that brand image is also an important
factor. It is true in case of cities. But in the outskirts i.e. in rural areas people
often pretend to look brand image rather they look for getting products
which are suitable to their pocket.

11 COMMENTS
Remarkably a huge percentage of retailers have marked Micromax products
as good it‘s due to the product‘s pricing and other important accessories that
it is offering for the consumers. One more thing that they added is that the
product is largely accepted by the middle class consumers which are high in
numbers in the market and these categories of consumers look the thing
which is value for money. They said that only with the offer that comes with
the handsets they are able to do excellent business.
Only 9% of retailers are in view to rate the products of Micromax as
excellent because of its new version of phones being launched i.e. is
comparable with Nokia, Sony range of phones because of the technology
micromax has induced with these range of new launch. Their perception is
with the availability of these products in the market they can get huge sales
volume.




61

12 COMMENTS
Micromax mobiles have been launched in the INDIAN market by strategic
pricing which has been positioned as low cost mobile phones in INDIAN
market. Thus the choice of option was bit easy for the retailers to say the
phone to be reasonably priced. In addition to that they said that low cost
price is generating revenues for them as sales volume are rising and demand
base for low cost cell phones are up rolling in the markets. To somewhat
branded cell companies are posing a serious threat from these cell phone
makers.
13 COMMENTS
80 percent of the retailers voted that micromax mobiles discount offer is
fairly attractive. The reason for this reply is mainly due to the sales target
they achieve in month is quite high as compared to other mobile products.
And most of the consumers in Sambalpur area are showing a keen interest
towards the purchase of low cost mobile phones for their usage.











62

14 COMMENTS
Retailers said that the after sales service has not set up in full fledged by the
company particularly in Sambalpur. Customers are facing problems in
getting support assistance from the company. People those who stay in the
outskirts of Sambalpur area are finding difficulties to come and show there
problems in the city based service centres. This is taking a reasonable
amount of time. Also they said that company after analysing a problem in
the telephone is taking much of time to resolve them which is a big matter
of concern for those customers who mainly depend on their phone. Looking
at the reasons overall reply is good when it comes to after sales service
support provided by the company.

15 COMMENTS
Retailers said that the new launch version are not made available in
Sambalpur market by the company which is why customers are not able to
know the latest versions of the models available in the market. There is still
technological faux pas. They said that with rapid industrialisation in
Sambalpur income of the people are rising and they are slowly changing
their minds to make themselves upgraded with latest features of cell phones.
So company needs to think about the growing income in demographics and
take strategic actions as necessary. Design and durability got less numbers
because Micromax has made its debut in the handset market by making
innovative design and also promising a long lasting durability. The only
problem is with the availability of the handsets which is big matter of
concern. So retailers should try to pull the attention the distribution
managers who have the task of establishing the channel.





63

16 COMMENTS
Retailers are in a view that micromax has an excellent future in mobile
handset business, mainly because of its value for money promise to the
customers. The key drivers for its success are its innovating design, look,
technology, dual sim features, long battery life support, Qwerty keypads for
easy sms, strategic pricing, providing other necessary accessories like
Bluetooth headset, USB cable, travel charger, internet facility, memory card
and the like. They also added that growing income and demographics of
consumer in Sambalpur area is of main concern so there must be plentily
available option in the market so that selection would not be a constraint for
consumers to make selection as per their choice.

















64

SWOT ANALYSIS ON THE PERFORMANCE RESULTS
OBTAINED

STRENGTHS WEAKENESS

 Technological skills
 Leading brands
 Distribution channels
 Consumer preference to the
brand
 Quality of production
 Strong management
 Large scale production


 Technological faux pass
 Poor access to distribution
channels
 Weak after sales service
 Sluggishness in sales
 Stiff competition


OPPURTUNITIES THREATS

 Changing customer taste.
 Liberalization of geographical
markets.
 Technological advancement.
 New distribution channels
 Change in population age
structure.

 Dynamic markets.
 Closing of geographic markets.
 Advance technology.
 Pricing of competitors.
 Quality products available in the
market.
 Innovative design available in
the competitor‘s product.


(Table1.18)




65







DISCUSSION AND CONCLUSION









66

DISCUSSION AND CONCLUSION
TO ANALYZE THE GAP AND SUGGEST STRATEGY TO
RETAILER‖S, FOR MARKETING MICROMAX MOBILE HANDSETS.
(Aim Of The Dissertation)

COMMENTS MADE ON RESEARCH OBJECTIVES

 About 57% retailers overall opinion for Micromax handsets is good,
because since its launch in Sambalpur it has got attention build up
among consumers.
 Analysing the sales performance is the important part of the study as
it helps to identify where its sales performance has been good or
mediocre. Sales analysis is done by product and consumer,

 Sales analysis by product: breaks out the sales data by product and
by year and shows maximum sales, average sales, minimum sales,
annual sale, average unit price per product, best selling year of each
product and contribution of each product sales to the total. Thus past
3 years graphs have been taken to show the sales performance by
product.




Contd...



67


Table 1.19


Figure 3.0
Contd...




21%
27%
15%
17%
20%
0% 0%
0%
0%
0%
sales analysis
products1 products2 products3 products4 products5
products6 products7 products8 products9 products10
products 2008 2009 2010 TOTAL
percentage
to total
average price
per unit
best
selling
year
product1 12000 9900 10700 32600 16.63 10.76 2008
product2 16000 19150 21393 56543 28.85 10.87 2010
product3 9000 10350 11903 31253 15.94 10.87 2010
product4 10000 11500 13225 34725 17.71 10.87 2010
product5 12000 13550 15308 40858 20.87 10.86 2010
product6 0 0 0 0 0 0
product7 0 0 0 0 0 0
product8 0 0 0 0 0 0
product9 0 0 0 0 0 0
product10 0 0 0 0 0 0
TOTAL 59000 64450 72529 195979 100 10.84
average 5900 6445 7252 19597 2010
max 16000 19150 21393 56543 10.87
min 0 0 0 0 0 2010


68

year sales
% change
in sales sales units
% change
in units
average unit
price
2008 59000 5900 10
2009 64450 8.45 5859 0.69 11
2010 72528 11.13 6307 7.1 11.49
total 195978 18066

Table 1.20

Figure3.1

Figure 3.2
Contd...
0
2
4
6
8
1 2
p
e
r
c
e
n
t
a
g
e

c
h
a
n
g
e

i
n

u
n
i
t
s

percentage change in units
0
2
4
6
8
10
12
1 2
p
e
r
c
e
n
t
a
g
e

c
h
a
n
g
e

i
n

s
a
l
e
s

percentage change in sales


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Percentage sales is calculated by
percentage sales for 2009 59000/64450*100 = 91.54
Therefore percentage change: 100-91.54 = 8.45
Other calculations on percentage change in (in units and sales) are same.
Therefore the results for sales by product shows that year 2010 has got
highest sales nos.

 Sales analysis by consumer: consumers preferred micromax
handsets as good for its pricing and battery backup.

 Retailers think that micromax needs more up gradation in order to
compete with branded items. The reason to mention this is that
Indian consumers now comprehend that quality comes with price
and better quality means a super brand. So there rating is good when
it comes to micromax.

 Micromax has ventured into Sambalpur market by showcasing the
feature of low cost and long standby time handsets. Thus the existing
strategies used are......

 In 2008 Micromax ventured into the mobile handset market
 The brand wanted to create a base before taking on the large players
 GO-TO- MARKET STRATEGY—
 Micromax launched its first phone in the market with a very
unique USP- 30 days battery standby time
 The first product was a big success -- Micromax X1i priced at Rs
2150 was lapped by the consumers.








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Micromax has a lot of interesting and thoughtful products to its credit on
their versatile product portfolio. It was the first to introduce:
 1. Handsets with 30 days battery backup
 2. Handsets with Dual SIM / Dual Standby
 3. Handsets Switching Networks (GSM - CDMA)
 4. Aspirational Qwerty Keypad Handsets
 5. Operator Branded 3G Handsets
 6. OMH CDMA Handsets, etc.


BRAND'S PROMOTION STRATEGIES USED
sales campaigns in various parts of Sambalpur
Micromax Face book ad
Gravity,
MTV, (Co-Branded phones)
EEZPad are some of its initiatives taken for using them as strategies.













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RECOMMENDATIONS









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RECOMMENDATIONS

 The retailers should plan for expansion in the product length.
 Company should open more customer care & repair
centres in Sambalpur because consumers find difficulties in
getting their mobile handsets repaired. This will increase the
sales figure as well because repair centres will provide
authentic service and consumer will rely on this service.
 Company should more emphasize on the state-or-art. (New
Technology/Advanced Technology) and better quality solutions
and try to make people feel the experience of technology
through the retailers of micromax.
 Company should focus on humorous & Emotional appeals in
its advertisement because sentiments play important role in
Indian market-culture and makes easy to draw attention. For
e.g. - ADVERTISEMENT OF X500 handset.
 The retailers should be provided with the prevailage partners
from the company. The retail shop will get around two thirds
of its revenues from the handsets sold.
 With every purchase of micromax handsets trendy and
attractive carry bags should be given to the consumers
designed by the company.
 Retailers should also donate money for local sponsorships
like quiz or sports like cricket or other local sports to embark
the popularity of the product.
 Following a Frontal and Flanking attack strategy should be
adopted by the retailers
 Company should provide attractive racks or carrying case to
keep the handsets to retailers to draw attention of customers.
 Any schemes available in the market should be sent to
customer‘s mobile phone by using sms softwares.


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 Company should provide attractive sign/glow boards to
retailers for advertising the new launch of models.
 Now a day‘s social media is most liked by people and are
more common to young mass. This has not only restricted to
young mass but also driving an influence in the professionals
as well. So application oriented handsets should be brought
by the retailers into the market in large as the population of
young mass and professionals is growing in Sambalpur
rapidly.
 3g handsets also needs and introduction in Sambalpur area
because technology of mobile handsets has got a drastic
change in INDIA and other branded companies are focusing
more on these issues.
 Every year there should be a MOBILE MELA conducted by
the company in Sambalpur so that people will come to know
the effectiveness of mobile phone in their daily life. These
MELA are to be organised by the retailers as well. There
should be mobile displays and tips to be provided to the
visitors to take care their handsets.....
 Location in a pertinent issue which needs substantial
planning before starting of the business. Strategically
locating the store will boost up the sales figure and increase
in footfall also.
 Business leads and clients are a crucial for the business.
Making and creating contacts and networking is very
important –therefore building the potential clients base
before the launch of business. Start marketing of business by
giving away some products and services. By creating a
relationship with your potential customers, a trust should be
built with them, and at launch, it will be easy for them to buy
from you.




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BIBLIOGRAPHY










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Web based sources
 www.micromaxinfo.com

 www.nokia.com

 www.google.com

 www.indiacellular.com


Book References

 consumer behaviour and research (S Sumathi, vikas publications)

 sales and distribution management
( by Tapan Panda, oxford publications)



Video tape
NDTV Profit Money mantra: can mobiles push up the economy






76







QUESTIONNAIRE








77

QUESTIONNAIRE:

Dear Sir/Madam,

I would like to introduce myself as an PGDM (AIMA) student of
REGIONAL COLLEGE OF MANAGEMENT, Bhubaneswar and doing a
project on the topic. “RETAILER PERCEPTION TOWARDS
MICROMAX MOBILE SETS”.

This project is to be submitted to the AIMA for the award of PGDM. Hence
I, request you to kindly spend few minutes of your valuable time in
answering this.

Name of the retailer –
Gender -
Name of the retail outlet –

Address –



Products offered by you –

(a) Nokia (b) Sony Ericsson (c) Samsung
(d) Motorola

(e) HTC (f) Blackberry (g) LG
(h) Micromax


If you are not providing Micromax then specify reason-





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1. Number of handsets sold by you in one month on an average-

a) 0-10 [ ] b) 11-20 [ ]
c) 21-30 [ ] d) 31 and above [ ]

2. Customer‘s response towards Micromax products.

a) Excellent [ ] b) Good [ ]
c) Average [ ] d) Below Average [ ]

3. Your opinion for product offer to you by Micromax.

a) Excellent [ ] b) Good [ ]
c) Average [ ] d) Below Average [ ]

4. Product availability of Micromax in this territory.

a) Excellent [ ] b) Good [ ]
c) Average [ ] d) Below Average [ ]

5 What ages of people do you think purchase Micromax mobile most.

a) Less than 20 [ ] b) 20-30 [ ]
c) 30-40 [ ] d) 40 and above [ ]

6 Your opinion about deliver of products as per your order by
Micromax distributor.

a) Excellent [ ] b) Good [ ]
c) Average [ ] d) Below Average [ ]

7 Marketing efforts of Micromax compared to its competitors is



79

a) Excellent [ ] b) Good [ ]
c) Average [ ] d) Below Average [ ]

8 Promotional support that has been provided by company is

a) Excellent [ ] b) Good [ ]
c) Average [ ] d) Below Average [ ]


9 Your overall opinion about Micromax with regard to their
relationship with
you

a) Excellent [ ] b) Good [ ]
c) Average [ ] d) Below Average [ ]

10 Which attributes you consider most important in mobile handsets.

a) Price [ ] b) Quality [ ]
c) Demand [ ] d) Brand Image [ ]


11. Comparing to other company products, you rank Micromax products as?

a) Excellent [ ] b) Good [ ]
c) Average [ ] d) Below Average [ ]

.12 Comparing to other company products the price of products of
Micromax is?

a) very high [ ] b) high[ ]
c) reasonable[ ] d) Low [ ]


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13 Opinion about the discounts offer of Micromax products is?

a) Very attractive [ ] b) Fairly attractive [ ]
c) Not attractive [ ] d) No offer [ ]

14 After sales service that has been provided by company is?

a) Excellent [ ] b) Good [ ]
c) Average [ ] d) Below Average [ ]

15 What are the elements you miss in micromax mobile sets?

a) Excellent [ ] b) Good [ ]
c) Average [ ] d) Below Average [ ]

16. In your opinion what is the future of Micromax mobile handsets?
a) Excellent [ ] b) Good [ ]
c) Average [ ] d) Below Average [ ]











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THANK YOU








Aum Sri Amma Bhagwan