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„ Micromax is a challenger brand in the highly competitive mobile handset
market. This Indian firm is shaking up the market dominated by MNCs.
Micromax was founded in 1991 by Rajesh Agarwal . Micromax in its
original avatar was a distributor of computer hardwares. In 1998, three
more people Sumit Arora, Rahul Sharma and Vikas Jain joined
Micromax as co-founders.The company branched out from a mere
distributor to a marketer of telecommunication equipments.

„ It was in 2008 that Micromax ventured into the mobile handset market.
The brand wanted to create a base before taking on the large players .
Hence as a go-to- market strategy, Micromax concentrated on the rural
market first. It was a different move altogether since most of the
marketers tend to concentrate on the urban markets then move to the
rural markets.
History
Software Computer Mobiles Wireless Data
design Peripherals Card

Developing Printer X1i USB drive,


Software to Monitor C200 Fixed Wireless
various industry scanner Q5 Drive,
Bling Data Cards
X600
X800
Rajesh Agarwal, Sumeet Arora, Rahul Sharma and Vikas Jain
(from left)
„ 30-DAY BATTERY PHONES
„ April 2008: Rs 2,249; Now: Rs 1,999 The X1i, Micromax¶s first phone, had a battery that could
give 17 hours of talk time and go 30 days on a single charge.

„ DUAL-SIM PHONES
„ July 2008: Rs 1,999-12,999 For those who want two numbers but one handset.

„ PHONE-CUM-REMOTE
„ May 2010: Rs 2,999 A mobile that can switch TV channels and even change the AC
temperature

„ PHONE-CUM-STEREO
„ Feb 2010: Rs 4,999 With 3D surround sound, fed by Yamaha and Wolfson

„ BLING
„ Feb 2010: Rs 5,500 A big hit with women, comes with Swarovski embellishments.

MOSQUITO-REPELLANT PHONE.
„ A mosquito-repellent phone. A phone that can be used as a computer mouse.
„ Micromax has a lot of ³firsts´ 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 ÿ0,000 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.
„ 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 concentrated on


the rural market first.

„ Micromax launched its first phone in the rural 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 up by rural market.
„ Micromax is currently the third-largest GSM vendor in the
Indian market,

„ A share of 8.1%, 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


· Entry into the Mobile industry?
- Many big players in this industry had already captured their
market share such as Nokia, Samsung etc.,
- The mother company Micromax Informatics had studied this
industry deeply for last 6 years and accordingly they took the steps
to enter into this market.
- The company first made an entry through the rural markets
targeting the rural people by providing the low cost mobiles with
strong back up battery.(Because,rural areas are still facing
shortage of electricity supply).Micromax Company provides the
best quality, equipped with latest technology mobile phones at
affordable prices with easy availability.
å Micromax is on top position in Indian telecom space with 80%
growth in rural areas while Nokia market share is going down. Nokia
share fell from 64% in fiscal year 2008 to 52 in 2009. Local mobile
manufactures have 17.5% market share in which Micromax
Company has 4.1% and with time its ratio is increasing

å Company¶s QWERTY mobile handsets are being chosen as the best


alternative to Nokia N-series models and other brands. Nokia
revenue from Indian domestic mobile market was Rs 14,100 crore in
2009-10 fiscal years, down from Rs 16,567. Thus Micromax is the
new mobile giant in Indian domestic market ,now beating Nokia.
· Entry into the urban market?
- After getting successful results from rural market
company targeted urban market. For this they launched
QWERTY keypad mobiles with special features,
innovative design etc..

- Company found out the different ways to enter the


same. Bollywood¶s most bankable star Akshay Kumar
was signed on as the brand ambassador six months
ago. More recently, his wife Twinkle Khanna was
engaged to promote Micromax¶s Bling phone that comes
with Swarovski crystals and a vanity mirror.
SUSTAINANCE AND INNOVATION
· As new players are entering the market, competition is becoming more
stiff. To sustain in the market one has to be always come up with
innovative mobiles. For that lot of money have to be incurred in R&D
process. Micromax had to face the same difficulty.

· That¶s why company has plan to raise money from stock market by way
of IPO. Company Micromax IPO, Forthcoming IPO 2011India¶s
biggest domestic mobile handset seller Micromax Informatics is
expected to go public early in 2011. The company filed its prospectus
late last month. The company is expecting to raise 426 crore through
the offer. The company will use 50 percent of the IPO proceeds to set
up a handset manufacturing plant in India while the rest would be spent
in areas such as marketing and expansion.
· Micromax, according to IDC, has a 8.1 percent market
share in India and is now valued at over X1 billion. JM
Financial, Citigroup, Edelweiss and Nomura are the
book running lead managers to the issue. For the year
ended March 2010, Micromax had sales of 1,600 crore
on selling over 70 lakh handsets, with a net profit of 200
crore, as against revenue and profit of 350 crore and 35
crore respectively for the previous year.
· ' 

· 
  

·  '
·  

· 
· Leadership Through Quality.
· Standard Reporting with Informal Trust and
Freedom.
· Competitive Benchmarking.
· Proper Goal Setting.
· Technological Innovations.
„ There are three segments of handsets that it works with:

„ For the premium category, which is solely comprised of


QWERTY keypad handsets, the focus will still remain 'easy
chatting'. In fact, Micromax will tie up with social networking
sites such as Facebook to ensure better connectivity and
continuous communication for its QWERTY keypad model
users.
‡ In the multimedia segment, it will offer innovation and variety in
its features such as radio, MP3 player and camera. Here, it
plans to launch co branded phone along with MTV as 'MTV
Music Phones'. The purpose is to add an oomph factor and gel
well with the young consumers.
„ Micromax managed to make dealers pay in advance
by offering them more margins. It offered higher
margins of 15 % margin, which is higher than the
industry average of 6-10%.

„ 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), but to make a
retailer accept such an offer is indeed a remarkable
feat .
„ To increase penetration in the Indian telecom market,
Micromax Is bundling with telecom operators such as
Aircel.

„ For better accessibly and prominence in the market,


Micromax is coming up with 150 experience zones
(exclusive stores) across the nation, in addition to
ensuring bigger presence at the multi branded stores.
„ 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.

„ A clear differentiation was a significant factor that


aided the significant growth of Micromax brand in
Indian market.
„ The company in their website claims to have
invested heavily in the product development.
„ The brand boast of launching many firsts in the
market PRECISELY for this reason.
„ Besides the focus on product development,
Micromax has invested heavily in brand building.
† Also targeting niches such as exclusive Women¶s phones
† We can see from the history that they were already into
the wireless devices industry so they had a prior
µLearning¶ about the mobile industry.
† They have built a solid base for a full scale assault on the
market leader.
m    

 Micromax is well known brand in electronic Micromax ¶s late entry in Indian mobile
market. market.
 Micromax is in both direct market as well as open
market in mobile segment.
 Collaborations with Aircel, MTS (SSTL), Virgin Micromax has less service
mobile. centers,compared to other big players.
 Large range of CDMA mobile product from 1K to
14K. Less investment in R&D as compared to
 Strong National distribution channels. biggies like NOKIA,SAMSUNG.

   2 

 Tele density is increasing in Indian telecom


market.
 CDMA mobile would play a major role in rural Popularity of GSM mobile.
penetration. Competitors are focusing only in telecom
segment.
 3G service availability. Entry of foreign player in mobile equipment
 Falling ARPU¶s of Indian telcos. market.
Threats from Chinese mobile market
 Foreign telcos are coming into Indian market
would be opportunity for direct market.
ËThis is going to change«««one slide only..
Micromax & Cricket

„ Micromax is also planning an innovative activation across the cricket


season, breaking away from the vanilla branding that we are all used
to. Activation will see some intelligent product placements, on
ground- on air integrated product coverage and mentions, crowd
branding and the brand will be visible on a digital platform on the
ground throughout, adding to the technology stand point.
„ It was one of the principal sponsors of the South Africa VS India ODI
series in 2010.
„ In the just concluded µMicromax cup¶ as the name suggests it was
the chief sponsor.
„ Most of the brand promotion for Micromax has been centered around
products till last year
„ The ads are for individual products highlighting the product features
and USPs.
„ Micromax, has shelled out a whopping Rs 100 crore for its brand
building initiative. It is targeting a wide base of new and existing
subscribers, using a 360 degree media approach via multiple
platforms.
„ It has allotted Rs 60 crore for ATL (above the line) advertising, of
which print will take the maximum share, followed by TV and radio.
Another Rs 40 crore will go into the BTL (below-the-line) initiatives.
The communication has been launched in the beginning of 2010.
„ In 2009, the campaign was mostly product centric but this year, the
efforts will be to create a brand that is aspired by all. Consumers
have already experienced Micromax as a handset. Now, it is time for
the consumers to remember µMICROMAX¶ the brand.
â Campaigns
â Micromax Facebook ad
â Gravity
â MTV , (Co-Branded phones)
â EEZPad
Advertising

· Broadcast media micromax use television to broadcast


their advertisements.
· Apart from using cricket, films, celebrity micromax also
advertise through news papers.
· They also utilize hoarding and bill boards to advertise
their products.
· Prime site recently kicked off a month-long campaign for
Micromax mobile phones in Delhi, executed mostly
through hoardings. Going further, this promotion will be
extended to the other regions of northern India as well.
„ Corporate Level strategies:
„ Expansion strategy
„ Resource allocation: heavy investment in R&D, lately
heavy investment in brand building.
„ Wide portfolio catering to diverse segments.

„ Business Level strategies:


„ Unique Fusion of Cost Leadership and Product
Differentiation.
„ Following a Frontal and Flanking attack strategy.
„ Products are mostly in the embryonic and growth stages.
· Micromax is gaining ground at a tremendous rate in the
domestic as well as global mobile market.

· Micromax showing good sign of grabbing every possible


opportunity at its hand (e.g IPL 2010)

· If the strategies are implemented effectively,it may clinch


up the ladder,to become the leader in domestic market in
coming few years.
THANK YOU

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