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RUSSIAN INDUSTRY

After considering the aforementioned factors, one might easily conclude that Russia offers the greatest near to mid-term potential as an export target. Although a great deal is known about most of the factors affecting Russia's market environment and advertising capabilities, there has been little empirical research on the cultural context of its consumer behavior. Most cultural research conducted outside the United States and Western Europe has been primarily in the Far East (Maheswaran & Shavitt, 2000). A review of cross-cultural advertising and marketing studies published in 13 empirically-based advertising and marketing periodicals between 1980 and 2001 found that only two studies examined the differences of US-Russian cultural values and none examined the relationship between the Russian culture and advertising appeals (Emery & Rhodes, 2002). As such, the purpose of this study is threefold: (1) examine the differences in effectiveness of advertising appeals in the United States and Russia, (2) determine whether an understanding of Russia's cultural dimensions offers an insight to effective appeals, and (3) recommend various advertising appeals to those companies wishing to export their goods and services to Russia. BACKGROUND Russia as an Export Target Russia is the developing nation receiving the most attention of exporters on a dollar per capita basis (World Imports, 2002). Further, attention appears to be accelerating. In 2001, Russia increased its value of imports by 20%; the highest increase in the world (World Imports, 2002). This should not come as a surprise. President Putin is doing everything within his power to make Russia more attractive to foreign imports, including cutting tariffs, cutting government red tape and lobbying to get Russia accepted into international trade organizations (Belton, 2002). Further, the Russian economy has enjoyed a boom the last two years because of high world prices for its oil and a rise in domestic production, (Indicators Good, 2002). The purchasing power parity (PPP) of Russia is the highest among the developing nations (e.g., Russia has a PPP of $8,030 as compared to $3,940 and $2,390 of China and India respectively) (World Bank, 1999). The World Bank liberalization index based on three separate indicators-the extent of domestic market liberalization, foreign trade liberalization, and enterprise privatization and banking reforms-gives Russia a healthy index rating of .83 compared to China's index of .66 (International Monetary Fund, 2000). The Heritage Foundation's index of economic freedom based on 10 indicators, such as the extent to which the government intervenes in the economy, suggests that Russia is the most favorable for exports of the most populous developing nations (Heritage Foundation, 2001). Further, the United Nation's Human Development Index based life expectancy, educational attainment, and standard of living indicates that Russia is the most suitable target of the developing nations for a broad range of exports (Human Development Index, 2000). Lastly, Russia has the strongest educational system and literacy rate of the developing nations (e.g., Russia has a literacy rate of 98%, while China and India have rates of 82% and 52% respectively) (CIA World Factbook, 2002). Marketing/Advertising in Russia

Advertising in Russia can be traced to the opening of the first advertising office in Moscow in 1887 (Andrews, et al., 1994). However, after the 1917 Revolution, censorship severely limited advertising. There was a revival, to some degree, from the 1960's until the mid1980's, when advertising was focused primarily on industrial products for organizational buyers. The rebirth of competitive advertising occurred in 1985 when the leadership of the Soviet Union transferred to the reform-minded Mikhail Gorbachev and controls on the media were loosened (Yergin & Gustafson, 1993). For the first time ads began to appear on billboards, in newspapers, and in magazines (Dabars & Vokhmina, 1996). In 1987-1988 the Soviet Union Central Committee allowed joint venture agreements and direct negotiation for products and services, including advertising, among Soviet and Western firms. In the last ten years, foreign advertising expenditures in Russia have gone from $8 million to $2 billion ("Research Report," 2001). Cultural Values The first step to successful cross-cultural marketing is to understand the cultural differences (Keegan, 1989). Consumers grow up in a particular culture and become accustomed to that culture's value systems, beliefs, and perception processes. Consequently, they respond to advertising messages that are congruent with their culture, rewarding advertisers who understand that culture and tailor ads to reflect its values (Cheng & Schweitzer, 1996; Chandy, et al., 2001; Culter & Javalgi, 1992; and Wells, 1994). Albers-Miller's (1996) study of 55 country pairs indicates that similar cultures have similar advertising content and dissimilar societies have dissimilar advertising content. Hofstede's (1980) seminal study regarding the relationship between national culture and work-related values is the most frequently cited benchmark for cross-cultural understanding (Tian, 2000). He considered that a country's value system could be depicted along four dimensions: individualism (IDV), power distance (PDI), uncertainty avoidance (UAI), and masculinity (MAS). Hofstede (1980) explained that the dimension of individualism was the degree to which individual decision-making and actions are encouraged by society. This dimension reflects the way people live together. In a collectivist society, the lower end of the individualismcollectivism continuum, individualistic behavior may be seen as selfish. As such, it appears logical to conclude that appeals highlighting individualism will be less effective. The power distance dimension indicates the degree to which power differences are accepted and sanctioned by society. In other words, it indicates how different societies have addressed basic human inequalities in social status and prestige, wealth, and sources of power. The societal norm in a country with a high score on the PDI dimension is for powerful people to look as powerful as possible. People with power are considered to be right and good. Powerful people are expected to have privileges. In countries with large power distance, the exercise of power gives satisfaction, and powerful people try to maintain and increase power differences (Hofstede, 1980). As such, appeals that reinforce the culture's sense of power distance (e.g., prestige) will be effective.

Advertising Is Big Business in Russia : Commercially Successful


CANNES Many Russians may worry about the dizzying invasion of their country by Snickers bars, Marlboros and Mercedes cars, but you wouldn't know it talking with Vladimir Evstafiev. For the president of Moscow's Maxima advertising agency, as well as others in the Russian advertising industry, times are good. "Russia is like a black hole; it's sucking up everything into the market," Mr. Evstafiev said. "Companies can't produce quickly enough; capacity can't increase quickly enough." The advertising business itself reflects this. Whereas the industry basically didn't exist six years ago, there are about 2,000 agencies registered in Moscow alone today, Mr. Evstafiev said at the recent Cannes advertising festival. Despite the explosive growth, a small number have quickly risen to the top. Mr. Evstafiev estimated the largest seven local agencies controlled half the market revenue, with the rest being divided between such multinational networks as Young & Rubicam or BBDO and small home-grown shops. Within the top seven, Premier SV, with about 1,000 employees, and Video International are the dominant players. The five-agency second tier includes a group called Avrora, as well as Maxima, which employs 50 people and has more than $7 million in revenues and includes such international clients as Cadbury Schweppes. Though overall revenue is evenly split, Mr. Evstafiev said that this same seven-agency group controlled about 75 percent of the television-time buying market - a position that, if maintained, could assure them of their place at the top of the agency heap as television advertising demand continues to surge. "Even the big international agencies buy their ad time through us," he said. "We act as brokers for the stations." Even so, Mr. Evstafiev and the others said there were signs of foreign agency networks starting to negotiate directly with television networks rather than using these Russian shops as middlemen. The rapid development of the Russian agency landscape is being accompanied by equally rapid changes in media costs. Currently, 60-second advertisements during prime time on one of the two major, state- owned Russian television networks cost as much as $25,000. Though cheap by Western standards, this is already five to six times as much as they cost last year. And prices are expected to continue rising as increasing numbers of domestic

advertisers, many with ample advertising budgets, compete with foreign advertisers for air time. "The largest 20 to 25 local clients probably have budgets of between $20 million to $30 million, perhaps more," Mr. Evstafiev said, citing real-estate companies and banks as two major local ad categories. "This is absolutely enormous in Russia." The surging demand for advertising is also forcing improvements in the commercials themselves. "Technically, our advertising is almost on a par with the West," said Vladimir Filippov, general director of Avrora. "As for creative, Russia has never had a shortage of ideas." Still, many commercials would be considered overbearing by Western standards. One ad for vodka screened in this year's Cannes competition lived up to its description in the entry catalog: "A woman catches her husband drinking at a bar. She shoots down the bar's display with a Kalashnikov. Everything is destroyed except a bottle of Zver - the strongest vodka." The group acknowledged that creativity was "conceptually very different" from Western advertising, though mostly out of necessity. "It's not so much about product quality and competitive comparisons as about finding the goods advertised," Mr. Evstafiev said. "So of course, we need to impress them in the most aggressive way possible - theatrics. At the same time, we need to have an address at the end of the commercial so they can find the product." As with many emerging and lucrative industries in Russia, there's another group finding the ad trade appealing: organized crime. Those interviewed were reluctant to discuss specifics, only to say that "crime is a problem." The group also expressed ambivalence toward the presence of large international agency networks, despite their failure to make a major impact so far. Mr. Evstafiev said domestic agencies were quick to form associations with large agency groups when given the chance, including his own Maxima with Euro RSCG, and Avrora with Grey. But while acknowledging the allure international relationships held for Russian shops, many found it frustrating that advertisers, at least initially, seemed drawn to the big networks despite significantly lower commission rates - often 5 percent to 8 percent less - asked by local agencies. "Clients start at the big names and realize later that we are cheaper and know the market better," Mr. Evstafiev said. Despite this, they remain enthusiastic about the future of the business in Russia.

Still, many commercials would be considered overbearing by Western standards. One ad for vodka screened in this year's Cannes competition lived up to its description in the entry catalog: "A woman catches her husband drinking at a bar. She shoots down the bar's display with a Kalashnikov. Everything is destroyed except a bottle of Zver - the strongest vodka."

Successful advertisements on trolleys and buses in Russia raises the emotions of consumers causing them to want to buy the product. This has led to interest from advertisers. Now mass transit advertising in Russian cities is very attractive. But it is worth remembering, especially that mass transit advertising in Russia after time and bad weather, may lose their original appearance and this adversely affects the consumer's perception of the product.

BRAZIL
5. Natura Cosmeticos SA
Sales: $2.4 Country: Brazil billion

Natura is the cosmetics giant born in Brazil. Corporate social responsibility is one of its core emphases, and its more than 900 products help consultants earn a living. Natura also has operations in Argentina, Chile, Peru, Mexico, France, Venezuela and Colombia. Wholesale Corporate Marketing Style: Person-to-person Compensation Products: Personal care products Markets: 8 Distributors: 1 Employees: 5,000+ Headquarters: So Paulo, Year Stock Symbol: NATU3.SASo Paulo Revenue: $2.4 billion and retail Plan: Bi-level and fragrances million+ Brazil Founded: 1969

Natura (BM&F Bovespa: NATU3)[3] is the Brazilian leading manufacturer and marketer of skin care, solar filters, cosmetics, perfume and hair care products. The company was founded in 1969, by Luiz Seabra and became a public company, listed on So Paulo Stock Exchange, in 2004. In 1974, Natura adopted direct sales as sales model. In 2008 it had more than 800,000 "consultants" (resellers) spread throughout Argentina, Brazil, Chile, Colombia, France, Mexico and Peru, and since 2006 surpasses Avon's sales in Brazil. This has been mainly due to the advent of an at home bikini waxing product, which has proved extremely popular with Brazilian women. Natura focuses on its image as an eco-friendly, sustainable company (using natural products, working toward sustainable environment and social support etc). The company also prides itself on strong research and development activity. It uses ordinary women rather than supermodels in its advertisements.in its advertising it focuses on ordinary woman using their product because most of its customers are ordinary women who prefer it. this advertising has

been of great success to the company and it helped the company to position itself in the mind of the customers as the product which the ordinary citizens can afford.this form of advertising was not only successful in the domestic but also in international market.

Natura Cosmeticos Marketing For MLM Success: Natura Cosmeticos Distributors Learn How Internet Networkers Sponsor Sign Ups Online
Posted by Walter L Bell on May 27, 2011

In this brief Natura Cosmeticos marketing training for mlm success for Natura Cosmeticos distributors I will give an overview an internet strategy for attracting leads online. But first lets take a look at the standard Natura Cosmeticos marketing training that most Natura Cosmeticos distributors are advised on when starting out. As it goes, they are advised to grab paper and pen and write down a list, at the very minimum, of at least 100 or more people they know. We are advised to include family, friends, co-workers, and so forth. We finish our list and then begin at the top dialing through the numbers. With perhaps a hint of anticipation we begin dialing hoping to get our list of warm market contacts interested in taking a look at the Natura Cosmeticos opportunity.

Traditional Natura Cosmeticos Marketing: The Recruiting Family And Friends Challenge
Shortly though after our initial Natura Cosmeticos marketing training on inviting prospects and that first number from list is dialed reality hits us. Although many of them wouldnt mind buying products from us, we start to find that people we first believed would join us are much more skeptical than we had believed about actually joining as an associate in the business. Our once exuberant enthusiasm transforms and instead starts to wane as we move through our list. We are resolved however and by no means giving up on achieving Natura Cosmeticos success or going to stop now because of negativity. From Natura Cosmeticos marketing training we realize its a numbers game. What causes us to forge ahead is the understanding that we only need a few to sign up out of the 100 people to get things started. So we continue politely dismissing the negative responses to get to the few yes tell me more responses. After sorting through nearly one hundred phone numbers we have a few presentations scheduled. We begin to show the plan and even go as far as enrolling a few people into Natura Cosmeticos. However, generally, the outcome from the 100 name list approach is that it rarely translates into success over time for most people. That is if it is the only Natura Cosmeticos recruiting method being used. The reason being is that you reach the end of such a list eventually and there is no one else to talk to. Along with that fact, many of those that do sign up among family and friends will often quit working the business before any real measure of success. For this reason the family and friends mlm recruiting process actually works for less than 1% of the people who venture into network marketing. The warm market is simply too limited to be your primary Natura Cosmeticos leads source.

Natura Cosmeticos Marketing On The Internet: The Endless MLM Lead Generation Solution
What if you could have access to an endless, non stop self extending, potential recruit list of much better qualified prospects? I am not speaking of some overused, unresponsive leads bought or purchased from a leads broker. Rather, a list unique to you and composed of experienced multi level distributors that are actually wanting to talk to you about your opportunity. Imagine, no more being held back by the short comings of a people you know list. Well you really can have such a list by using a simple process and the power of the world wide web. Though learning about such a Natura Cosmeticos recruiting system is not part of any regular Natura Cosmeticos marketing training, the know how necessary to implement such a strategy can be learned from a good mlm mentor or from a mlm marketing training sites such as www.networkersfriend.com. With this strategy you wont be using company distributor cookie cutter websites or pitching prospects on your opportunity up front as you would normally. The process instead uses value that draws experienced networkers first. Network marketers are actually the very best people to prospect.

A Natura Cosmeticos Marketing System That Pays You To Prospect


The process of generating a prospect list in such a way is called attraction marketing. The best part about setting up an attraction marketing system is its ability to put money in your pocket as you prospect. Even those who dont join your mlm business will participate in funding your recruiting efforts. You literally will get paid as you prospect using whats called a funded proposal. It is a rejection-free way of achieving network marketing success and getting paid even when prospects dont join your home business opportunity. Rest assured, your best chance at achieving mlm success in this internet age is to go beyond conventional Natura Cosmeticos marketing and learn attraction marketing. By doing so you will never again chase family and friends or buy Natura Cosmeticos leads. Its a recruiting method that works for Natura Cosmeticos and all network marketing companies to get prospects pursuing you with cash in hand. Share this recruiting strategy with your downline and watch your mlm business explode

SOUTH AFRICA
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Last year's provocative brandhouse Drive Dry campaign, which came to be known as "Papa wag vir jou", got South Africans talking and convinced many to not drink and drive. Buoyed by the reception, the *2nd largest premium alcohol beverage company in South Africa, brandhouse, has launched a new hard hitting campaign for the 2011/2012 festive season that will catch the attention of consumers, making them aware of the potential consequences of drinking and driving.

The campaign asks one simple question: 'WHO'S DRIVING YOU HOME TONIGHT?' It provides some thought provoking answers. As part of the launch phase, various installations are being showcased at different venues around Cape Town such as popular night-spots around the country to make members of the public stop and think about what could happen if they choose to drink

and

drive.

"The objective of our new campaign is to bring the real consequences of drinking and driving home to consumers. The message is that you ultimately choose who will take you home after you have been out drinking. It is a simple choice, but whatever choice or decision you make will have real, not necessarily pleasant consequences which can impact the rest of your life," said Heather Noble, responsible drinking campaign manager at brandhouse. Aims: Raise awareness, change consumer behaviour

"Our strategy is not simply to raise awareness but to change consumer behaviour: to never drink and drive again. We share in the widespread concerns about alcohol abuse, underage drinking, binge drinking and drunk driving and therefore we are committed to doing whatever we can to drive positive changes in attitudes and behaviours towards alcohol. We seek to be at the forefront of industry efforts to promote responsible drinking and combat misuse," concluded Noble. Research shows that long term integrated programmes such as brandhouse Drive Dry can change people's attitudes and bring people to the point of view that drunk driving is not socially acceptable. This campaign is part of brandhouse's ongoing efforts to inform and raise consumer awareness about the potentially devastating effects of driving while under the influence of alcohol. The second phase of this year's integrated campaign includes a television advert which launches in February 2012.
The Drive Dry 'WHO'S DRIVING YOU HOME TONIGHT?'

INNOVATIVE ADVERTISING STRATEGIES

Moving Billboards & Outdoor Billboard Advertising


Stationery billboards suffer inherent shortcomings: being static they are exposed to a constant audience that regularly passes the viewing point, and research has shown that they lose their

effectiveness after 4-5 weeks as they become part of the scenery. This requires that the message must constantly be changed at great expense to remain effective. Values Fleet Media Advertising division offers clients a solution to overcome these problems with its Moving Billboards mobile media likely to be seen by many different people every day in pre-determined areas and thereby ensuring the message will remain fresh and effective throughout the campaign period. Todays audiences are highly mobile and outdoor billboard advertising has become an attractive and cost-effective mass marketing medium. Value operates some 4 100 vehicles through a network of depots across South Africa, and customers can now realise the opportunity to utilise the Value fleet transporting their merchandise for their own branding opportunities by turning Value vehicles into larger-than-life promotional billboards along their routes. Full-colour graphic images on a large moving truck capture the attention of the man-in-thestreet, motorists, passengers and pedestrians in highly populated areas with major traffic flows, and on well-traveled national and regional roads. Value Moving Billboards offer a cost effective, totally measurable advertising medium in any required area to the clients required target market. The process begins with an analysis of the clients campaign and an assessment of the most effective use of vehicles on specific routes. Daylight-travel vehicles are identified for this purpose. Selection is based on the demographics of each clients selected market. Vehicles are tracked 24 hours per day, and a minimum distance traveled by each vehicle is guaranteed by Value. If this minimum distance is not achieved, the campaign will continue to run, free of charge, until the minimum distance is covered. If a vehicles covers a greater distance in the campaign period, that is to the clients advantage at no extra cost. In addition, vehicles can be placed and utilised at major functions and events or at shopping centres and other venues, drawing attention to clients current campaigns in the area. Different campaigns can be run simultaneously or can be changed at the cost of new print. In an emergency situation, where a client requires to respond timeously and effectively, special arrangement on an exception basis could be put in place to mobilise select vehicles and move them to a specific area with applicable promotional material displayed. Material is created and displayed on both sides of each selected vehicle. Medium and large vehicles boast an advertising space from 4-35 m each. Billboards are printed in full colour onto PVC and varnished to combat fading. The basic costs involved include the hire of the vehicle, the framework required, the production of the graphics to be mounted on the frames, and insurance against damage. Terms and conditions apply.

MALAYSIA

PETRONAS, short for Petroliam Nasional Berhad,[1] is a Malaysian oil and gas company that was founded on August 17, 1974. Wholly owned by the Government of Malaysia, the corporation is vested with the entire oil and gas resources in Malaysia and is entrusted with the responsibility of developing and adding value to these resources. Petronas is ranked among Fortune Global 500's largest corporations in the world. Fortune ranks Petronas as the 95th largest company in the world in 2008 and 80th largest in 2009. It also ranks Petronas as the 13th most profitable company in the world and the most profitable in Asia.[2][3][4] Since its incorporation, Petronas has grown to be an integrated international oil and gas company with business interests in 35 countries. As of the end of March 2005, the Petronas Group comprised 103 wholly owned subsidiaries, 19 partly owned outfits and 57 associated companies. Together, these companies make the Petronas Group, which is involved in various oil and gas based activities. The Financial Times has identified Petronas as one of the "new seven sisters":[5] the most influential and mainly state-owned national oil and gas companies from countries outside the OECD. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment. The Petronas Twin Towers were officially opened on Malaysia's 42nd National Day, August 31, 1998 - in the Corporation's 24th Anniversary year.

Petronas got global recognition by sponsoring international grand prix and after that it forced its way into the fortune 500 list
Petronas was one of the main sponsors of the BMW Sauber Formula One team, and it supplies lubricants and fuel to the team. It also owned 40% of Sauber Petronas Engineering, the company that builds chassis which formerly utilized Ferrari designed engines used by the Sauber team, until being bought out by German motor company BMW. Petronas is also the main sponsor for Malaysian Grand Prix, and co-sponsors the Chinese Grand Prix. Petronas was the exclusive premium partner of the Sauber Petronas (19952005) and BMW Sauber F1 Team (20062009). BMW had acquired the controlling stake of the former Sauber Petronas Engineering, but left the sport after the 2009 season. On December 21, 2009, Petronas was confirmed as moving from BMW Sauber to the newly formed Mercedes Grand Prix team. In terms of further Formula One involvement, every year Petronas took the BMW Sauber team to various parts of Malaysia for F1 demos so the public who are unable to go to the track itself get to experience a little bit of what F1 offers. Other promotional events are held in the run up to the race and the drivers play an integral part in this so much so that Nick Heidfeld conceded that there were more fans for BMW Sauber in Malaysia than in most other countries.

As part of its corporate social responsibility programme, Petronas also brings underprivileged children to watch the race.

Petronas has supported TOM'S, a Toyota automobile racing squad, since 2008. Petronas also sponsors the Malaysian Cub Prix races. It also sponsors many other sporting events and teams, mostly motorsports. Some of these sponsorships includes the PERT (Petronas EON Rally Team), the now defunct Foggy Petronas Superbike team (in which Petronas debutes their own superbike, the FP1), and also the Petronas Adventure Team, a 4X4 adventure team. More recently Petronas is also a major sponsor for PETRONAS TOYOTA TEAM TOM'S which is currently participating in Super GT series, which they won the team title in 2008 and driver title in 2009. The series also race in Malaysia every season at Sepang International Circuit. Petronas signed a three-year sponsorship agreement with Fiat Yamaha motoGP team. The PETRONAS branding can be seen starting Qatar race on the 10 to 12 April 2009.

Education marketing by petronas through CSR


Petronas awards education sponsorships in the form of convertible loans to Malaysian and international students to further their studies at local or foreign universities. The Petronas unit that is responsible for handling education matters is called the Education Sponsorship Unit (ESU). These sponsorships are awarded based on academic results, co-curricular activities, family background as well as an assessment of student personality (which is conducted throughout a program called EduCamp, which all prospective Petronas students are required to undergo). Students who are absorbed by Petronas at the end of their tertiary studies have their convertible loans converted into full scholarships. These students are under contract agreement to work for the company for two years for every one year they are sponsored.

UNITED STATES
Nike Wieden & Kennedy In the late-1970s/early-1980s, Reebok's line of sports apparel sold far better and had a much more robust share of the market, thanks to the explosion of aerobics and general exercise enthusiasm

amongst women. Nike, who at the time had little more than a line of marathoners' shoes to their name, wanted a piece of the action. So they went for the whole pie. Late into the '80s, they started to tackle every demographic. They did this on their "Just Do It" campaign, purportedly coined during a meeting of executives between WK and Nike ("You Nike guys, you just do it."). The phrasing reflected the corporate culture and advertising approach, which was a take-no-prisoners assault on the inactive and lethargic. Furthermore, they tied their brand to smart, humorous and cool advertising, and made sports apparel cool to wear when, well, you weren't being active. This all culminated into a perfect storm during the '90s, at which time, their market share jumped from 18% to 43%, and their sales exploded from $800 million a year in 1988 to upwards of $9.2 billion in 1998. Wanna look cool? Just do it.

INDIA
MICROMAX SUCCESS THROUGH EFFECTIVE ADVERTISING
Micromax Mobile needs no introduction today.Just two years back people were not aware of the brand at all but today its Indias third largest 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 Rs.100 crore and smart distribution channel management. As per IDC report Micromax displaced LG to become third largest selling mobile handset company in india with a market share of 6%.Nokia is market leader with 62% share and Samsung is on second place with 8% market share.The company today sells more than a million handsets a month and is now a Rs.1600 cr worth brand. The company has presence in 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 big MNCs Like Nokia,Samsung,LG and Motorola. The company realized the fact that there are certain unmet needs still there in the market which is not being addressed by big brands. Micromaxs strategy ,since their inception has been to identify the unmet latent needs of people and come up with a product which no one else has and thus fits well with the consumer need. It didnt banked on price competition only rather it catered to the needs of people unaddressed by MNC brands. Micromax initially targeted rural market and once it established its presence went on to lure urban youth.

Differentiation-Key stratgey: Micromax has a lot of firsts to its credit in their product portfolio. It was the first to introduce: Handsets with 30 days battery backup(Micromax X1i), Handsets with Dual SIM / Dual Standby, Handsets Switching Networks (GSM CDMA) using gravity sensors, Aspirational Qwerty Keypad Handsets, Operator Branded 3G Handsets, OMH CDMA Handsets, etc Its gaming phone Gameolution has caught the fancy of youngsters.This phone works like wireless wii which works on motion sensor technology and can convert PC/Laptop in gaming device.Then it came up with MTV music phone MTV X360 with Yamaha amplifiers targeted at music loving youth. Thrust on Dual SIM Phones: It understood the need the market and gave thrust on DUAL SIM phones.Most of its phones are Dual SIM.Intense competition has led to stiff fall in call rates and operators keep on coming with various offers to lure customers.Thus customers do not want to remain loyal to one and desire to avail best available offers at any time.With dual SIM phones they can keep their one number constant and another one changing to avail the best offers.This has led to increase in popularity of Dual SIM phones and Micromax has grabbed substantial market in this category.Surprisingly Nokia didnt heard this need and doesnt have any Dual SIM in its brand portfolio. Aggressive Marketing & Smart Distribution Channel Management: The company realized the fact that itll have to build the brand and bring awareness in a market where people dont rely on unbranded phones.The company went for aggressive marketing sponsored many cricketing events and allocated the budget of Rs.100 crore for ATL & BTL activities.Recently company roped in Bollywood Actor Akshay Kumar as Brand Ambassador. Feature Rich phones at affordable price: India is a price sensitive market and people aspire to have feature rich products at low price.Micromax made it possible and thus people B&C category towns grabbed micromax phones as it was laiden with features but not heavy on pocket. Its QWERTY phones come below Rs.5000. All said and done the company has few challenges to tackle too.It has to build trust among people in product performance and after sales service.Nokia & Samsung have a very strong after sales service centres. The Strategy Micromax followed a unique strategy of targeting and positioning to enter the Indian Market. Micromax concentrated on the rural market first. It was a unique strategy as the convention followed by marketers is to concentrate on the urban markets then to move to the rural markets.

Micromax launched its first phone in the rural market with a very unique USP- 30 days battery standby time. The brand was launched from a consumer insight that most of the rural households do not get enough electricity to recharge phones on a daily basis. Hence a phone with a 30 day battery standby would be a worthwhile differentiation. The first product was a big success. The first product Micromax X1i priced at Rs 2150 was lapped up by rural market. The success of X1i egged the company to aggressively make further inroads into the market. However, tapping the rural market had its set of difficulties, namely in the logistics section as far as servicing was concerned. Micromax approached this difficulty by working on an effective distribution network. According to a report in Forbes India (March 5,2010), Micromax created a distribution network comprising of 34 super distributors, 450 distributors and around 55,000 retailers. One of the highlight of their distribution strategy was that Micromax managed to make these dealers pay in advance by offering them more margins. According to the news report, Micromax managed this hurdle through this strategy of more margins for advance payment. It is not a new strategy to offer such kind of discounts for advance payments (cash discounts), but to make a retailer accept such an offer is indeed a remarkable feat. Unlike many challenger brands, Micromax was careful in its product strategy. Although all Micromax products were towards the lower end of the pricing spectrum, the brand was focusing on adding more features at a reasonable price. The focus was more on value than price. Innovation, Cost-Effective, Credible and an Insightful R&D are given high emphasis at Micromax in the telecom vertical. Their product range generally has some USP which offered more value to the consumers.

Promotion
Having gained traction, Micromax is also working on a strategy to create awareness in the metros, which includes tying up with MTV for co-branded phones. Micromax has also tied up with a Bollywood celebrity Akshay Kumar as brand ambassador.

Micromax has also tied up some pretty big brands like Yamaha for enhancing their audio experiences and the X360 comes with an MTV branding and exclusive content and recently the sponsorship of IPL 2010 has given the product a big fillip. Micromax is an upcoming product in the mobile marketing sector. It is becoming a brand to reckon with in a very crowded market and with the recent technological innovations in the telecom sector the future seems to hold opportunities galore for the company