STRATEGY NOTE

Abhijith S Menon 2022001

Abhishiqth Chappidi 2022012
Dipraj Dhuri Digamber 2022013
Ishudeep Tiwari 2022020
Kaustubh Mundada 2022023
Raghav Khurana 2022030
Shivendra Kumar 2022043
Shweta Kumar 2022046
Soumya Choudhari 2022047
1
Introduction
The introduction of affordable internet connectivity has increased the pace of connection
which led to smartphone manufacturers creating more and more affordable devices for people
to purchase. The mobile industry is a subset of the telecommunications industry that focuses
on mobile phones, phone services, and peripheral devices. In the 1990s and 2000s, this
industry experienced rapid growth as a result of significant advances in mobile technology
and increasing consumer demand for mobile products.

Industry Analysis
India’s Smartphone Market was worth 173 Mn Units in 2020 and total revenue is expected to
grow at a rate of 14 % CAGR from 2021 to 2027, reaching almost 432.89 Mn Units in 2027.

From 14.5 million shipments in 2011 to 150 million in 2020, the market has grown by a
factor of ten. The Indian market has declined by 4% in 2020, but it will still outperform
markets in North America, Latin America, and Africa.
Interesting findings-
Here is some interesting analysis we found from the data.
1. The average sale price for a smartphone is Rs 17,616.58
2. The most expensive smartphone is SAMSUNG Galaxy Fold 2 (Mystic Bronze, 256
GB)
3. The least expensive smartphone is HPL A35 (Black, 512 MB)
4. Out of the total inventory of 1513 products, 1214 products, or 80% are priced under
Rs 20,000.
5. There are 155 products priced under Rs 5000.
6. 15 brands have only one product listed and 10 brands have only 2 products listed.
7. There are 26 products listed with a sale price of Rs 9999.

Value Proposition

Physical Benefits Functional Benefits

High-level Captures high-quality
cybersecurity pictures.
Access to multimedia Long battery life

Emotional Benefits Social Benefits

Improved perceived Improved perceived
social status social status
Access to high-end Access to high-end
technology technology
Porter’s 5C analysis

Company
We are in pursuit of perfection, constantly refining and enhancing our products to create the
best user experience. We also have no qualms about exploring novel concepts and going
beyond our own limitations. Our commitment, faith in innovation, and fan base's support are
what propels our distinctive products. Our R&D department is continually reimagining the
future. We delve into the unknown in search of innovations that can help people live happier,
healthier lives anywhere in the world. We cultivate a culture of limitless potential. Our
consumers' unwavering devotion and deep trust in us motivate us to innovate and grow
constantly.
Our Mission
Our company invests its expertise and technology to produce top-notch goods and services
that improve society on a worldwide scale. We want to strengthen our community and raise
everyone's standard of living both now and in the future.
Our Vision
Build a community where everyone's needs are satisfied by high-quality technology, enabling
the world's population to benefit from the newest advancements and live better lives.

Our Values
Work that we share with everyone is inspired by innovation, cooperation, integrity,
transparency, and accountability. Each of us makes a unique contribution to that effort,
offering a passion for both what we do best and what we think is most important.

Customer
We produce low-cost but high-specification smartphones. Our target market is the price-
sensitive middle and upper middle-income group of customers and millennials who prefer
smartphones in a middle price range. Our aim is to capture the market of 16-44 years of age
who are fascinated with photography and social media usage thereby demanding mobile
technology having high camera quality and battery life.

Competitors

Company is competing under the economy segment. The economy smartphone segment is
where people look for smartphones with better features and excellent processing power.
There are only 182 smartphones in this category and that is just 12% of the entire smartphone
market.
Xiaomi, Oppo, and Vivo provide similar manufacturing advantages to the company.
Xiaomi’s competitive advantage is based on the cheap costs of its products and services.
Vivo aims at providing quality products and superior services in its marketing mix to its
customers. Vivo positions itself as a perfect selfie smartphone and thereby appeals to the
youth

Context

1. Political Environment
 It plays an important role in marketing decisions of a mobile company which include
taxes, operations etc.
 Make in India initiative taken by the GOI provides benefits like reduction in taxes to
the mobile companies
 The mobile industry in India is highly regulated by the ministry of telecom

2. ECONOMICAL
 The demand for smartphones in India has been increasing with 9.3% YOY growth
before covid 19
 This demand increased during Covid 19 and currently the smartphone demand is
increased by 2% in the last quarter.

3. SOCIAL
 The population of India is on a growth rate of around 1% over the last 3 years
 The average age of the Indian population is 26 years hence there are a high number of
tech-savvy customers in India
 The demand for smartphones increases by 8% YOY

4. Technological Factors.
 Bringing in new technological changes like Wireless Charging, Infinite display, Dual
Camera, Fast Charging, Fingerprint Scanner, etc.

5. Environmental Factors.
 Smartphone industries need to be energy efficient; they should use renewable energy
and smart packaging.
 The new smartphones are coming up with 100% recycling products. And the raw
materials used are free of PVC, they contain Bio-Plastic recycled metals, free of
nickel.

6. Legal Factors.
 Smartphone vendors normally have Patents over their innovations. All the vendors
have copyright and trademark over their products. So, if any other vendor wants to
copy any of the innovations, they will have to pay the patent rights.
Segmentation-
Demographic Segmentation-
Income- Brands communications will target people from middle and upper-middle income
groups.
Age- According to the data shown below, most mobile phone users in India belong to the 16-
44 age group. Hence, it makes sense to target this segment.

Psychographic Segmentation-
A person with a vivacious personality who buys things perceived to represent happiness and
positivity for example brighter colours.  Someone who maintains a balance between work and
leisure., A person who’s only seen on social media wearing designer clothes with full makeup
and styled hair.
Implementation
Product
After going through comprehensive primary research on customer perception about mobile
phone attributes. We discovered that attributes like price, camera, and battery backup are very
important parameters.
To design better camera products, we will collaborate with Zeiss Optics company to produce
excellent camera quality at a relatively lower price. We will be provided with our lightning-
fast charging solution by splitting the battery into 2 sections so that the thermals are better
managed on the smartphone. This will provide a good experience to the users as they will not
be worried about battery issues. These are the Order Qualifiers for our products.

Price
Based on the segmentation of our customers, we will be pricing our product higher than the
competitor. Pricing is one of the trickiest issues in marketing as it requires understanding the
product and understanding the market.
To capture maximum market share, we will be using a price skimming strategy.
Skimming Price – Skimming pricing is used when a product, which is new in the market or
just launched, is sold at a relatively high price because of its uniqueness, benefits to
customers, or its current Wow factor. However, slowly but surely when the product gets older
in the market, then the price is dropped and the product is brought at competitive pricing.
Skimming allows the firm to adjust and update its prices with increased competition resulting
in a decreased price in order to attract more consumers. In the event that other smartphones
are introduced to the market, the company needs to lower their prices such that those
consumers who want to buy a Smartphone are attracted to purchase their products.
Place-
Online channel accounted for 45% of mobile phone sales in 2020 in India
To maintain exclusivity, we have decided to make the products available only online. The
products will be available on the brand’s official site in collaboration with a delivery partner
i.e., Delhivery. Collaborating with our only E-commerce agent, Amazon, our products can
also be availed there at discounted prices.

Promotion –

•The company's marketing strategy includes promotion as a key component. Advertising, in

our opinion, is the most effective way to engage potential customers and position the brand.
We use print and online media to advertise new goods.
•We have recruited a large number of celebrities to serve as brand ambassadors and market
the product in order to capitalize on the enormous number of fans that celebrities have.
•On highways, large hoardings and posters are installed.
•Through social media platforms, digital marketing, and online advertisements, we have
planned to represent the brand well.
•To encourage customers to purchase the product, we employ a variety of promotional
strategies in addition to advertising Like sponsoring major events.
•During national holidays, we offer a substantial discount.

THANKYOU