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Prepared By: Mozam Khan A-15 Mohammed Faeem Shaikh A-45
History Of Micromax
Micromax is one of the leading Indian Telecom Companies with 23 domestic offices across the country and international offices in Hong Kong, USA, Dubai and now in Nepal. With a futuristic vision and an exhaustive R&D at its helm, Micromax has successfully generated innovative technologies that have revolutionized the telecom consumer space. Micromax is on a mission to successfully overcome the technological barriers and constantly engender “life enhancing solutions”. The company’s vision is to develop path-breaking technologies and efficient processes that incubate newer markets, enliven customer aspirations and continue to make Micromax a trusted market leader amongst people. The Micromax ideology stems from its rooted belief in ‘Innovation’ and delivering “nothing short of the best”. 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. 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 2
have now become synonymous to Micromax in the telecom vertical. Since then Micromax has received commendable response for its unique and interesting handsets. Micromax ventured into the telecommunication industry with an end-to-end solution of Fixed Wireless Devices and Wireless Data Cards. Cost-Effective. the company forayed into one of the most predominant genres of telecommunication – Mobile handsets.itself in the telecommunication industry. In the year 2008. Market Share 3 . Innovation. after delivering upon the technology of fixed wireless-powering desired products. 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. Credible and an Insightful R&D.
27 Feb. Nokia with 52. perhaps just a few marks behind Samsung Samsung at the second position has 10. as per market reports.4% control. A share of 8.7% share is the number 1 vendor Source : Forbes India.1%. While 70% market share is taken by: Nokia Samsung Sony Ericsson Motorola & L 4 .Micromax is currently the third-largest GSM vendor in the Indian market. 2010 Industary Overview: The Mobile Phone Market in India is worth 130 million handsets annually.
Nutshell Of Micromax Strategy Corporate Level strategies: Expansion strategy Resource allocation: heavy investment in R&D. Business Level strategies: Unique Fusion of Cost Leadership and Product Differentiation. Wide portfolio catering to diverse segments. Following a Frontal and Flanking attack strategy. Products are mostly in the embryonic and growth stages. 5 . lately heavy investment in brand building.
4 P of Marketing Price variables Allowances and deals Distribution and retailer mark-ups Discount structure Promotion variables Advertising Sales promotion Publicity Product variables Quality Models and sizes Packaging Brands Service Place variables Channels of distribution Outlet location Sales territories Warehousing system 6 .
000 retailers. 3600/ Q5 Rs. 2399/ X1U Rs. 7900/ X113 Rs. 2299/ X511 Rs. 2300/ X225 Rs. 7499/ X800 Rs. 4390/ Q55 bling Rs. 2400/ G4 Gamolution Rs. 2600/ GC255 Rs. 2900/ X220 Rs. 6499/ X555 Rs.5 million handsets a month. confining itself to small towns and rural areas in the first 12-18 months. 5500/ W900 Rs.Pricing Strategy Micromax specialized in entry-level and mid-segment handsets priced between Rs1. 5500/ Q1 Rs. 3250/ X260 Rs. Price list of Micromacx Mobules in india: H360 Rs. 3999/ X2i Rs. 1650/ X115 Rs. 5700/ X114 Rs. 3499/ X414 Rs. 3399/ X250 Rs. 2598/ X211 Rs. 15000/ 7 . 2900/ Q3 (Ezpad) Rs.800 and Rs2.000 by the end of March as part of its strategy to raise sales to 1. 4600/ C112 CDMA Rs. 2350/ X310 Rs. the firm expanded to larger cities and now has a distribution network of 55. 1699/ X116 Rs. 4099/ X332 Rs. Encouraged by its success. 5500/ X500 Rs. 2150/ X118 Rs. which it plans to scale up to 70.400 when it started selling the devices in 2008. 2200/ X1i Rs. 3500/ X280 Rs. 4500/ GC700 Rs. 1600/ C2i CDMA Rs. 2750/ X215 Rs. 11900/ Q2 Rs.
249.999 A mobile that can switch TV channels and even change the AC temperature 8 . DUAL-SIM PHONES July 2008: Rs 1. Now: Rs 1. comes with Swarovski embellishments.999 The X1i.999 For those who want two numbers but one handset. fed by Yamaha and Wolfson BLING Feb 2010: Rs 5. had a battery that could give 17 hours of talk time and go 30 days on a single charge.999 With 3D surround sound.999-12.Product Strategy 30-DAY BATTERY PHONES April 2008: Rs 2. PHONE-CUM-STEREO Feb 2010: Rs 4.500 A big hit with women. Micromax’s first phone. PHONE-CUM-REMOTE May 2010: Rs 2.
9 .IN THE WORKS A phone that can be used as a computer mouse IN THE TOUCH A touch screen phone.
Infect. where the larger pie of the cake share is…. existing product line consists of 27 phones.and at an affordable price. since this is THE segment. out of which 23 are Dual SIM. This led to guarantee 30-day stand-by Battery (No other handset to compete?) To cater to the wants of the customers to carry two handsets (to make most of the existing on-going tariff wars amongst service operators). The limited supply of electricity was a big roadblock to the growth. A clear differentiation was a significant factor that aided the significant growth of Micromax brand in Indian market. Micromax started offering Dual SIM phones. 10 .Micromax deliberately made an attempt to tap the Rural interiors of the country. And there evolved the Technology.
Thus.000 Stores. Finally. chances are he will use the SIM provided to him with the handset. Hongkong. with about 10-12 million subscribers being added every month. was born in an environment that would transform into what would be proudly called the second-largest mobile market in the world. Changing the phase of entry level. they decided to marry mobile handsets and rural and price-sensitive India.CDMA) using gravity sensors. Many ideas poured in during the umpteen brainstorming sessions that the four conducted amongst themselves. Aspiration QWETRY Keypad Handsets. Unless a consumer has personal apathy towards a particular service provider.000 Stores operational & is being aggressive to reach 70. Operator Branded 3G Handsets. Dubai etc with 40. we will launch a project where SIM cards of different telecom providers will be available with different Micromax handsets. Micromax is bundling with telecom operators such as Aircel. This will benefit both our brand and the service provider we tie up with. next only to US. Handsets with Dual SIM / Dual Standby." explains Jain. "Soon. Handsets Switching Networks (GSM . And now the Company has 23 Domestic Offices coupled with International Offices in USA. 11 .In the versatile product portfolio Handsets with 30 days battery backup. the company’s first phone (the X1i in the pic priced only @ ` 2150/-). To increase penetration in the Indian telecom market.
The ads are for individual products highlighting the product features and USPs 1212 12 .Promotion Strategy The brand was one of the big spenders in the latest edition of IPL . Micromax has centered much of its brand building exercise around cricket. Micromax has taken up the title sponsorship for the entire Indian cricketing season from May 2010.
Audio Visual Strategies 10th Class Students to Graduation College Students We intend to highlight the existing need of the Cell . Women Segment While there is no gender bias. Hence there is Q55 Bling the limited IIFA edition & also the Swaroskvi Elements launched by Twinkle khanna with line ‘it Twinkles’. But Women at all ages are on the higher %age of cellphone usage in the way of a Worried Daughter. we intend to boomerang the segment with customized strategy of presenting your ID card to the ‘’Outlet listed near your college’ (no hassle of running near your homes) and avail of the ‘’x % discount’’ And extended to the All levels of Faculty of the college/school).. Wife. Hence. We aren’t alien to Cosmopolitan Segment either. Girlfriend. we strongly feel the reality to be presented to the Segment. Audio Visual Strategies (Content) With the Student Fraternity.phone usage as a “need” & not “Luxury” since this segment thrives with Parental involvement & lots of concerns & wrinkled foreheads amongst them due to the high frequency of their Children being traveling to-n-fro from college to tuition classes or for Competitive Exams. Parent. In-addition. its also plays a significant role of communication with the rising unpredictable scenario’s on the rise.. 13 .
Facebook and all social networking sites with extravagant features for the Who-is-who in the Industry. we intend to bring a wave of change amongst the Gen X with apps like Twitter. 14 . Tie-up with Service Provider’s is essentially to make a ‘one-stop shop’ to effect the st time users with Phone + Best Service Provider concept and with freebies & discount in the 1 offering.With this.
Placing Strategy High margins to Channel Partners (20% to 30% margine). Cash discount for advance payments. 15 . More Commission to those Partners who were willing to stock-up its products. Extensive dealer network.
p. 1994. •SEGMENTATION Market segmentation is an adaptive strategy." (Kotler.segmentation. select the appropriate market target. It consists of the partition of the market with the purpose of selecting one or more market segments which the organization can target through the development of specific marketing mixes that adapt to particular market needs. 93). In its first phase. The formula . targeting.who are the approx 80% users of the Micromax mobiles. Micromax segmented on itself geographically and demographically. 16 .STP ANALYSIS The strategic marketing planning process flows from a mission and vision statement to the selection of target markets. and the formulation of specific marketing mix and positioning objective for each product or service the organization will offer. the strategist "proceeds to segment the market. positioning (STP) . With handsets with battery backup of thirty days and with the mobiles having high features and low cost. choosing the value. •Demographic: Under Demographic segmentation Micromax segmented itself on the basis Gender by launching handsets like Q55(Bling) which had features like mirror screen and again Micromax segmented on the basis of Age by focusing on age group of 18-25.is the essence of strategic marketing. •Geographic: Micromax immediate geographic target is Non Urban and rural segment of India. and develop the offer's value positioning. Leading authors like Kotler present the organization as a value creation and delivery sequence.
We aren’t alien to Cosmopolitan Segment either. Parent. But Women at all ages are on the higher %age of cellphone usage in the way of a Worried Daughter.. 17 . Wife.Women Segment While there is no gender bias. Girlfriend. Hence there is Q55 Bling the limited IIFA edition & also the Swaroskvi Elements launched by Twinkle khanna with line ‘it Twinkles’.
Micromax will tie up with social networking sites such as Facebook to ensure better connectivity and continuous communication for its QWERTY keypad model users. Handsets of all companies. it plans to launch co branded phone along with MTV as 'MTV Music Phones'. available at Rs 1. The purpose is to add an oomph factor and gel well with the young consumers.and why not? After all. it promises the maximum number of consumers and all they demand from a handset is regular features at an affordable price. In the multimedia segment. The target market and the marketing mix variables of product. better music and camera quality and a trendy face value.200-1. the urban youth and the high profile users. the focus will still remain 'easy chatting'. MP3 player and camera. place (distribution). look equally unimpressive. A well-defined target market is the first element to a marketing strategy. In fact. For the third segment or the premium class 'technological innovation' will be the catchword. On basis of ‘Target Audience’ Micromax has divided its target audience into three categories . whom the brand will appease with innovative features such as a memory card with more capacity.300. The youth segment is the second most important segment. Here. Micromax plan to change the face of the entry level phones while keeping the price more or less same. at the entry level. promotion and price are the two elements of a marketing mix strategy that determine the success of a product in the marketplace. Micromax is solely targeting the rural segment right now . At the entry level. Today. which is solely comprised of QWERTY keypad handsets.the rural sector. There are three segments of handsets that it works with: For the premium category. Micromax targeted the non urban market and the age group of 18-25. 18 .TARGETING A target market or target audience is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise. Micromax will play the 'variety' card. it will offer innovation and variety in its features such as radio. not much variety is available.
Distribution Strategy Micromax managed to make dealers pay in advance by offering them more margins. but to make a retailer accept such an offer is indeed a remarkable feat . in addition to ensuring bigger presence at the multi branded stores. For better accessibly and prominence in the market. which is higher than the industry average of 6-10%. Micromax Is bundling with telecom operators such as Aircel. It offered higher margins of 15 % margin. To increase penetration in the Indian telecom market. Micromax is coming up with 150 experience zones (exclusive stores) across the nation. Micromax now using three tier distribution channel as now it has no brand store yet it uses this channel as distribution : | Manufacture |-----To----| Wholsaler |-----To----| Retailor |-----To----| Customer | 19 . Micromax managed this hurdle through strategy of more margins for advance payment. It is not a new strategy to offer such kind of discounts for advance payments (cash discounts).
Summary 20 .
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