MARKETING RESEARCH

MICROMAX
A report submitted for internal assessment of
MARKETING RESERCH

Under the guidance of

Prof. Pushp lamba

PREPARED BY
Roll No. Name Section
55 Priyanka gandhi
43 Mohit Chawla SP - 2
54 Prehans singh duggal
68 Shikhar Nagpal

IIPM
IIPM TOWER, SATBARI,
CHANDAN HAULA, CHATTARPUR-BHATIMINES ROAD
NEW DELHI

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INTRODUCTION

Micromax started its operation in 1991; it 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, it 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 it 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) using gravity sensors, 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.
 

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MARKETING RESEARCH

With young enthusiasts as its anchor, Micromax Informatics Limited has created a niche for

itself in the telecommunication industry. It ventured into the telecommunication industry with an
end-to-end solution of Fixed Wireless Devices and Wireless Data Cards.
 
In the year 2008, after delivering upon the technology of fixed wireless-powering desired
products, the company forayed into one of the most predominant genres of telecommunication –
Mobile handsets. Since then it has received commendable response for its unique and interesting
handsets.

Innovation, Cost-Effective, Credible and an Insightful R&D, have now become synonymous
to Micromax in the telecom vertical. Today it has become a brand which people relate and look
up to for realizing their individual device preferences and other out-of-the-box solutions.
 

FIRST TO INTRODUCE:

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PRESS RELEASED

1) Micromax announces launch of its innovative mobile phones in Bangladesh

Dhaka, July 16, 2010 – Micromax, one of the leading Indian mobile handset companies,
announced its presence in Bangladesh today. Focusing more on innovative technological
solutions, Micromax is all set to delight the Bangladeshi customers with its wide range of
innovative yet affordable handsets. Micromax handsets will be aimed at consumers across all
segments with special focus on the Youth.

Micromax has entered into a distribution arrangement with Reach Distribution Limited who

will partner with Micromax as a national distributor for the geographical territory of Bangladesh.
Reach Distribution Limited has already signed agreements with key retailers to make Micromax
products available through 2500+ outlets across the country, ensuring deeper shelf space and
wider outlet spread. To begin with, the company will launch 12 models ranging from less than
2000 BDT up to 16000 BDT.

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2) Nothing micro about Micromax

It is built up with many features:-

1) 30-Day Battery Phones ( which gives 17 hours talktime & 30 Days on single charge)

2) Dual-Sim Phones

3) Phone-Cum Remote ( can be used as switching TV & AC)

4) Phone-Cum-Stereo ( with 3D surround sound)

5) In the Works ( A mosquito repellent phone)

3) It’s a Macro run for Micromax Mobile Handsets

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Got its big break in 1999 when Nokia entered into a pact with
them.

Posted revenues of Rs. 1600 cr in 2009-10

Got Net Profit of Rs. 150 cr in 2009-10

Has 34 super distributors across India

Company is investing Rs 100 crore to set up plant in Baddi,

Himachal Pradesh
EVENTS ORGANIZED BY MICROMAX MOBILE

1) Micromax Mobile Cup 2010

2) Micromax Asia Cup 2010 (Srilanka vs Pakistan)

3) India vs Zimbabwe vs Srilanka Tri-series 2010

4) Micromax partner with IIFA awards 2010

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QUESTIONNAIRE

GENDER- MALE FEMALE

AGE- BELOW 20 20-30 30-40 40 above

Q1. Do you use mobile phones?

Yes No

Q2. Which brand of mobile phone do you use?

Nokia Samsung Sony Erricson

Micromax Spice

Others (please specify) __________________

Q3. Are you aware of dual sim handsets available in the market?

Yes No

Q4. What is the average price you can spend on purchasing a handset?

0-2000 2000-5000 5000-10000

10000 above

Q5. Are you aware about Micromax mobiles?

Yes No

Q6. What is the prior feature you look for before buying a handset?

Looks Price Battery backup

Camera Others (please specify) ________________________

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Q7. Rate the following cell phones brand on a scale of 1-10?

Nokia ____

LG ____

Samsung ____

Micromax ____

Spice ____

Motorola ____

Q8. Do you prefer branded cellphones over Chinese handsets?

Yes No

Q9. Have you seen the advertisement of new Micromax bling mobile phone?

Yes No

Q10. If yes then, do you like the shape and style of new Micromax bling?

Yes No

Q11. Any suggestions that you would like to give about Micromax mobiles?

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______________________________________________________________________________
______________________________________________________________________________
______________

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ANALYSIS DONE THROUGH QUESTIONNAIRE

NUMBER OF RESPONDENTS:- 60

MALE 40 FEMALE 20

Q1. Do you use mobile phones?

Yes 99% No 1%

Q2. Which brand of mobile phone do you use?

Nokia 39% Samsung 19% Sony Erricson 21%

Micromax 11% Spice 9%

(Most of the people prefer Nokia & Sony Erricson as Micromax is new to the market)

Q3. Are you aware of dual sim handsets available in the market?

Yes 83% No 17%

(People are aware only because of the Chinese handset which came 1st in the market with
DUAL SIM)

Q4. What is the average price you can spend on purchasing a handset?

0-2000 41% 2000-5000 27% 5000-10000 20%

10000 above 12%

(The price spending on a handset is related to the age & income factor)

Q5. Are you aware about Micromax mobiles?

Yes 95% No 5%

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(people are aware bcoz of it’s features & low range handsets)

Q6. What is the prior feature you look for before buying a handset?

Looks Price Battery backup

Camera Others (please specify) ________________________

Q7. Rate the following cell phones brand on a scale of 1-10?

Nokia __8__

LG __4__

Samsung __6__

Micromax __5__

Spice __3__

Motorola __4__

Q8. Do you prefer branded cellphones over Chinese handsets?

Yes 80% No 20%

Q9. Have you seen the advertisement of new Micromax bling mobile phone?

Yes 63% No 37%

Q10. If yes then, do you like the shape and style of new Micromax bling?

Yes 46% No 54%

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MARKET SURVEY DONE FROM MOBILE SHOP

(MICROMAX)
EASY TO SELL by (MOBILE STORES)

a) Made in California (US) which makes the shop keeper to sell Micromax easily in the
market as compared to other mobile companies.
b) Low Range Phone as compared to Nokia, Samsung, LG, & Sony.
c) Fully loaded with features in a less price.
d) Dual Sim handsets
e) Good Battery Backup
f) Fulfills customer priority i.e.( price, looks, features, etc)

Micromax as a ‘Brand’ in the Media

“Micromax challenges Samsung, LG in mobile phone stakes”.

The news further elaborates that Citigroup Global Markets Inc. has confirmed Jain’s assertion in
a 3 February report, which said Micromax had a 10% market share, putting it at No. 3 behind
Nokia and Samsung, which had 12-13%. The success of Micromax prompted US private equity
group TA Associates to buy “less than 20%” of the firm for around $45 million (Rs210 crore
today) in December, valuing it above $225 million and indicating confidence in its growth
potential. Jain estimated that the firm will close the fiscal with sales at around Rs1, 500 crore.
The Brand Micromax has now started gaining acceptability not only with the consumers but also
with the images, which now has started portraying it with a positive image. Whereas increased
consumer sales support the acceptance among the consumes, following quoted are some extracts
from the news reports that show that media is also looking up to this brand.

“Micromax seems to have taken a breath of fresh air and totally remade their presence. From
their previously drab website, they’ve moved into a much more vibrant state and there’s clearly a
significant difference in their mobiles as well, at least cosmetically”, quotes www.tech2.in in a
review for its newly launched model X360. Micromax has also tied up some pretty big brands
like Yamaha for enhancing their audio experiences and the X360 comes with an MTV branding

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and exclusive content. Apart from the mobile handset market, Micromax was recently in the
news for its alliance with BSNL. State-owned Bharat Sanchar Nigam Ltd. entered into an
agreement with Micromax for sale and distribution of 3G data card to its subscribers. As per the
agreement, Micromax would sell and distribute 3G data cards in the form of USB to the BSNL
subscriber in various cities.

In another venture, Micromax launched the India’s first operator branded 3G mobile phone
H360, in association with MTNL. The H360, pre-loaded with applications to enable video calls,
mobile TV, social networking, wireless business solutions through web browsing and other
Internet-based services.

Product Differentiation
So, as listed Micromax has been quite effective in the marking a difference with almost every
product that it launched. The range that they have covered varies quite a large variety. Right
from the handsets with 30 days battery backup, dual SIM, handsets switching networks (GSM -
CDMA) using gravity sensors, Aspirational QWERTY keypad handsets to operator branded 3G
Handsets to the most exciting OMH CDMA Handsets, etc. Every product of Micromax had the
Potential to grab the attention of media as well as the consumers in a market which is already
flooded with mobile phone handsets and a launch is there in every day or two. Micromax spent
heavily on branding during the recent India v SA; Jaypee Infratech Cup

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Image Differentiation: From Rural to the Urban grounds

Micromax specialized in entry-level and mid-segment handsets priced between Rs. 1, 800 and
Rs. 2, 400 when it started selling the devices in 2008, confining itself to small towns and rural
areas in the first 12-18 months. Encouraged by its success, the firm expanded to larger cities and
now has a distribution network of 55,000 retailers, which it plans to scale up to 70,000 by the
end of March as part of its strategy to raise sales to 1.5 million handsets a month.
The journey is also now spans through the wide range that Micromax plans to offer to its
consumers in the coming period. Micromax is planning to expand its range in keeping with new
market demands. It is readying several high-end handsets, including phones that will run on
Google’s Android and Microsoft’s Windows Mobile operating systems. The handsets are
expected to be available in “April or May”, Jain said. Micromax has also tied up with a
Bollywood celebrity “who will be announced shortly” as brand ambassador, Jain said.

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Channel Differentiation
Micromax has invested Rs100 crore to set up a plant in Baddi in Himachal Pradesh as it feels
Outsourcing manufacturing completely leaves the door open for supply-side uncertainties.
Production will be scaled up from an initial 50,000 per month.
“If everything goes right, by the third phase in March 2011, the Baddi plant will be making about
500,000 handsets,” Jain said. If the plant isn’t able to cope with the numbers, the fallback plan is
to acquire a facility in South Korea, Taiwan or China, he added. Nokia has a plant in Chennai,
established in 2006 at a cost of around $150 million, from where it also exports.

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MARKET SHARE

NOKIA
SAMSUNG
SONY
MICROMAX
SPICE

SHARE OF MICROMAX MOBILE IS 11% AS COMPARED TO OTHER MOBILE

COMPANIES IN OUR SURVEY.

“For a company which still has not

been listed on any exchange, a
turnover of about 1500 Cr. can be
termed as huge.”

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