Micromax Pricing strategy

Micromax core value to serve the customers was to provide them with low cost, value for money
product. Thus, Micromax adapted the penetration pricing strategy in the urban market because
they thought that placing the product at the lower cost would serve the purpose of making the
customer rethink before buying the competitors’ products which constituted the high segment
market. So with a lower price they provided with almost same functionality which in turn helped
them in gaining a better share in the urban.
It was really a tough fight to handle a giant like Nokia in the Indian Market. The products from
LG, Samsung, Nokia and Motorola were doing well in the market. No one dared to fight and
make the market unstable. But the launch of mobile from Micromax has done a great change.
Micromax ensured that price is never used as selling proposition. Their whole idea was to
attract customers to the store and then finally delighting them by offering them better features at
low prices. FQ5 is especially targeted at women talked about its sleek style, joystick, with
Swarovski crystal and back mirror etc., but doesn’t mention the price.
In the initial stages most of the customers thought that it is like the same other companies which
has entered the market and will go back. As happened with products of Karbon mobile which
also came with low range product, but did not work well in the market. Hence most of the people
thought like Micromax will also lose the market share. But thanks to their strategies which has
lead the market. The Q3 itself, though fancy looking, costs only Rs.3, 700.