A MAREKTING PLAN REPORT ON INFINITY SMARTPHONES AN UPCOMING

SMARTPHONE COMPANY BASED IN INDIA

A Project Report
Submitted in Partial Fulfilment of the
Requirements for Award of the Degree of
MBA
by

PRIYANSHU RANJAN
M21MBAG0012

under the supervision of

Dr SHIV SHANKAR KUMAR YADAV

School Of Management
Bennett University
Greater Noida, Uttar Pradesh, India

FEBURARY 2022
TABLE OF CONTENTS
1. Executive Summary
2. Chapter 1: Situation Analysis
2.1 Market Summary
2.2 SWOT Analysis
2.3 Competition
2.4 Product Offerings
2.5 Key To Success
2.6 Critical issues
3. Chapter 2: Marketing Strategy
3.1 Mission
3.2 Marketing Objectives
3.3 Financial Objectives
3.4 Target Markets
3.5 Positioning
4. Chapter 3: Marketing Tactics
4.1 Product
4.2 Pricing
4.3 Distribution
4.4 Communication
4.5 Market Research
5. Chapter 4: Financials
5.1 Break-Even
5.2 Sales Forecast
5.3 Expense Forecast
6. Chapter 5: Controls
6.1 Implementation
6.2 Marketing Organisation
6.3 Contingency Planning
 Executive Summary
Infinity is an upcoming smartphone brand in India. The smartphone industry as a whole is
dominated by the Chinese companies like oppo vivo Xiaomi etc. together they command over
75% of the total market share in India. Due to recent standoff between the Chinese and Indian
soldier at border, there is a growing resentment against the Chinese companies in the
subcontinent and people would prefer to buy an Indian brand instead. Based on this feedback
Infinity is trying to eat into the market share of the Chinese vendors by following a similar
policy of aggressively priced smartphones. The point of distinction being the company roots
which belong to India compared to its China counterparts.

This Marketing plan talks in brief about the current environment of the smartphone industry
in India then moves on to the swot analysis of the industry as whole. Then it moves on to the
current competitors of Infinity and points out their core competencies and then moves on to
the products that Infinity is planning to introduce in the Indian market after which it moves
on to the keys to success and critical issues plaguing the smartphone industry.

The plan also touches upon the financial and marketing objectives of the company post which
it defines the target markets of the company and how the company would want to position
itself for the same.

The plan shifts it’s focus on the marketing strategy and mentions the product philosophy of
the company. The pricing of the different products which the company is planning to
introduce in the market and why they are pricing it that way. It also briefly discusses the
distribution strategy and gives us an glimpse into the reasons they have decided to go the
online way and also mentions the communication channel that the company will be using to
market its products.

This plan also looks upon the financial aspects of the company where it mentions at what
point the company would break even. The plan also shows the sales forecast of the company
for the next three years and the expense forecast of the next three years.

Lastly, The plan touches upon the marketing organization and contingency plans of the
company.
 Chapter 1
Situation Analysis
Based on the evaluation of the Smartphone market in India and our core competencies
Infinity will introduce its own smartphone series in India.

Market Summary:
The smartphone market in India has matured over time, gone are the days when the industry
was dominated by Samsung and local players like Micromax, Lava and Karbon. The
smartphone space as it exists today is dominated by 2 major Chinese companies namely
BBK electronics and its sub brands like Oppo, Vivo, Realme etc. and the other one being
Xiaomi which the largest market share in India. Together these two groups enjoy almost 75%
of the total market share in the country. When we take Samsung into account the percentage
shoots up to 95% . This has left a vacuum for some Indian company to pitch in and get some
hold on to the market. This space is exactly what my company is trying to fill in. Post the
border dispute with China there is an anti China sentiment among the people of India. People
don’t want to buy smartphone form Chinese but they don’t have anywhere to go as there is
no alternative because of the price difference between non Chinese vendors. Since India is a
very price sensitive market the local companies are just reduced to being an expensive
alternative to their Chinese counterparts. This is where my company comes into the picture. I
say that we will give you an alternative which will priced at par with the Chinese models but
you wouldn’t have to compromise on your national pride.

Swot Analysis:
Strengths:
1. Growing hostility towards China in the mindset of the Indians.
2. Lack of a credible local manufacturer.
3. Push by the government for locally manufactured products (Vocal for Local)
4. Relatively easy entry into the market if you have the right resources.
Weakness:
1. Very Resource heavy industry.
2. Operational difficulties
3. Requires a lot of time to build production capacity and chains of service center.
 4. Need of high technology to compete.
Opportunities:
1. Unlike the west the smartphone market is growing at an increasing rate in India.
2. Population (There is a huge number of people to cater to)
3. Economics (India economy is expected to grow faster post pandemic)
4. New trends in consumer behaviour.
Threats:
1. Too much direct competition.
2. Lack of long-term contracts with suppliers.
3. Regulatory hurdles.
4. High Cost.

Competition:
 BBK electronics: The parent company of top brands like vivo, oppo, realme etc
almost hold the half of the market. The company follows an aggressive marketing
strategy to sell its products.
 Xiaomi: Has the highest market share among any brands and is know for it’s
value for money phones and has an extensive network of retailers and service
centres.
 Samsung: has the third highest market share and enjoys a good base of loyal
customers and unlike the above-mentioned companies doesn’t come from china so
is kind of immune from the growing hostility toward china.
 Other small players: There are other players like techno who by following a
similar strategy like xiaomi are trying to make their presence felt whereas there are
other local players like Micromax and lava who are trying to make a comeback by
riding on this anti china wave in the country.

Product offerings:
The products that my companies will be offering would be smartphones and tech accessories
with smartphones being the bread and butter of the company.
Let’s have a look at the what kind of smartphones the company is looking to introduce in the
market
1. Infinite A10- An ultra-low-cost smartphone with the bare minimum features.
 2. Infinite A20- A low-cost budget smartphone with better internals than A10.
3. Infinite A30- Budget smartphone aimed towards photography.
4. Infinite A40- Very similar to A30 but with a faster processor in order to appeal to
the gamers.
5. Infinite A50- Our second best smartphone with a great display, better cameras,
display and everything but has the same processor as A40
6. Infinite A70- Our flagship product with an excellent build quality and better
processor than A50.
Apart from these we will also sell accessories like power banks chargers, earphones etc.

Key to success:
1. Hardware design. In order to succeed in the market, the product needs to stand out
in terms of design and everything.
2. The operating system- The software should be functional and easy to use by the
user.
3. Application availability- In today’s day and age it is important that the phone has
every application that is required by the regular user and this aspect will be taken
care by google as the company will be using android as it’s operating system.
4. The vendor- Since it’s impossible to manufacture each and every part that goes
into the smartphone by itself hence it is important to find reliable vendors for
supply of raw materials and other components that goes into the making of a
smartphone.
5. Screen size- It is known that the market loves phones with big screen while it is
also true that too much of anything does more harm than good hence it is
important to strike the right balance between size and usability.

Critical issues:
1. Lack of Universal Standards- Every company has their own standards for testing and
everything also when it comes to ports selections there is still a lack of uniformity for
example iPhone uses different standard of ports for charging.
2. Security and Privacy Concerns- Every year there is a rising concern among the
people regarding their privacy especially when in comes to their smartphones as
someone can snoop on you through your smartphone.
 3. Manufacturing Defects- There is no getting away from the fact manufacturing defects
are real and there is no getting away from it but sometime a small manufacturing
error can turn into a nightmare for example Samsung had to roll back its galaxy note
7 smartphones.
4. Battery Issues- continuing the galaxy note fiasco the reason the company had to roll
that back was due to battery issues and people were barred from carrying that
particular phone because a few of those batteries blasted for no fault of the owners.
5. Pace of innovation- The pace of innovation has become stagnant in the smartphones
we do get better processors and cameras every year but it is not big enough to force
the buyer to buy a new smartphone all together.

Chapter 2
Marketing Strategy
Mission:
To connect the world with continuous innovation for a better future.

Marketing Objectives:
1. Launch the company and its products
2. Increase Market Share
3. Create brand awareness
4. Attract New Customers
5. Increase Sales

Financial Objectives:
1. Increasing revenue
2. To become profitable
3. Earning a return on investments
4. Financial stability
 5. A more diversified revenue base- What I mean when I say this is that as a company
we don’t want to restrict ourselves to just smartphones over time we also want to
diversify and also enter into different segments like lifestyle by having various
lifestyle products like bags, trimmers etc.

Target Markets:
1. The young- My company will target the youngsters who are always on the move and
want more by paying less. Infinity A40 would be a perfect fit for them as they will
get amazing performance at that particular price point.
2. The first-Time buyers- as previously mentioned there is still a significant population
out there who are yet to be introduced to smartphones hence with phones like A10
and A20 we want to serve the customers who are looking to buy their first
smartphones.
3. The budget Conscious buyers- These customers are those who are looking to
excellent value for money for the product they are buying since my brand forte is to
make products that provide excellent value. These customers would also be our prime
targets.
4. Tech-Enthusiasts- This customer segment is very similar to the budget conscious
buyers as like them they are looking for value for money but the differentiating factor
between them is that unlike them Tech enthusiasts knows exactly what they are
getting themselves into that is they are very well informed of the product they are
buying. Hence the company will try to lure some of the in through products like the
A50 and 70.

Positioning:
The company is looking to position itself as a budget friendly alternative to the Chinese
products available in the market. At the same time the company doesn’t want to be perceived
as cheap rip-off of some Chinese products hence the product design and feel of the phone has
been tweaked to give it a very Indian feel and look to it. The company’s whole marketing
strategy is focussed to establish a sense of nationalism and regional pride if they do decide to
buy this phone. The company wants to put this message across that now if you are in the
market for budget phone which gives excellent value for money then you have an alternative
from an Indian company as well.
 Chapter 3
Marketing Tactics
Product:
To begin with the company will introduce 6 different smartphones at different price points in
order to cater to various customer segments that the company is trying to target.
The other thing to note is that every product has been made keeping different customer
segments in mind, hence the end result is that every products caters to many different
customer segments for example the Infinity A10 and A20 cater to both the first time buyers
and The budget conscious buyer.
All the products will follow a similar design patter where the distinguishing factor would be
the materials used for the build for example the ultra-low priced phones like the A10 and
A20 will me made entirely out of plastic whereas A30, 40 and 50 will have glass backs and
the frames will be made out of plastic and the A70 will have a glass back along with a metal
frame.

Price
As previously mentioned all the 6 phones would be priced at different price points and there
would be no overlap in so that one product doesn’t cannibalise the sale of the other product
because of it being priced way too similarly. Since India is a very price sensisitve market all
the products will be priced aggressively as the company will cap the profit it makes per
smartphone at 3% in order to offer products at dirt cheap prices. With that out of the way
let’s look at ever model price wise.

Infinity A10 will be priced at INR 4999, since this product comes with the bare minimum
hardware and features this pricing would make sense to the consumer segments which this
particular smartphone is trying to target which is the first time buyer and budget conscious
buyer.
Infinity A20 will be Priced at INR 7999 as this product while following the same design
pattern as the A10 comes with better internals hence the price difference would be justified
in the mind of the customers.
Infinity A30 will be priced at INR 9999 because it comes with better camera sensor and
better build quality over the A20.
Infinity A40 will be priced at INR 11999 as it comes with most powerful processor in the
price segment.
Infinity A50 will be priced at INR 14999 as it has a better display and cameras to justify the
price difference.
Infinity A70 will be priced at INR 19999 as it is our flagship product and comes with the best
quality at that particular price point.

Distribution:
Since our company is new it will be difficult to have the products at every store of the
country because of our lack of experience and distribution partners, hence we will skip that
part altogether and have an online only sale policy where we will partner up with an online
retailer preferably amazon or flipkart for the following reasons:
1. Easy to manage – as the company won’t have to go through the hastle of finding
distribution partner and setting up physical stores.
2. More cost effective than having an offline presence.
3. Removal of middlemen will help to keep the cost down of the products.
4. Easier to keep a tap on the demand and supply side of things.
5. Create a sort of excitement among the potential customers by having a flash sales
model where the sales will only happen for a particular window during a week.

Communication:
The following tools will be used to market the company and it’s products:
1. Website- The company will have it’s own website with an inbuilt store which will be
used to give every details possible about the product the company offers.
2. Tv- while I do understand this mode of communication comes with a price but the
kind of awareness it creates and it’s tried and tested effectiveness more than make up
for the price one has to pay.
3. Print – Running ads on national newspapers on the days the product will go on sale
will be able to attract customers and also help in brand awareness.
 4. Social media engagement- The company will also run its own forums to build a small
community of the customers which in turn will help to attract new customers.
5. Influencers- This is one of the millennium communication which you whether like it
or hate it but you just can’t ignore it and hence the company will try to have a few top
influencers on board who will create awareness about the brand among their
followers.
Since the company is new in the market hence due to budget constarains we have only
looked at cost effective solutions and have stayed away from celebrity endorsements
sponsoring tournaments etc.

Chapter 4
Financials
Break-even:
Since the company is planning to price its products aggressively, reaching a break-even point
will require a lot of time as initially the company will have to bleed some money in order to
attract customers and generate awareness about the brand. Hence the company is expecting
to break even after sales of over 1 million.

Sales Forecast: No. of phones sold in millions

Brand 2023 2024 2025 2026
Xiaomi 30 33 35 36
Vivo 22 25 28 29
Samsung 20 21 21 20
Oppo 18 18 19 20
Realme 17 20 23 25
Infinity 02 04 08 10-12
others 10 11 10 10-12

Expense Forecast: In Crores INR

Expense 2023 2024 2025 2026

Manufacturing 5000 7000 10000 15000
Marketing 500 800 1200 1600
 Operations 2000 3200 4500 6000
Distribution 450 630 900 1200
Events 5 8 15 25
New Stores 0 100 300 500
others 10 20 30 40

Chapter 5
Controlling

Implementation will be done in the following ways:

1. Finding the right suppliers and partners for different components.
2. Getting a big OEM like Foxconn on board for production.
3. Getting in touch with flip kart and amazon to work out a deal.
4. Setting up an office and service centres across the country.
5. Getting the media on board and give them updates about every development in the
organisation.
6. Putting out teasers and ads about the company and products.
7. Getting influencers on board to get the word out.
8. Getting warehouses in order.

Contingency Planning:
1. If the competitor decreases it’s price, Infinity will also do the same.
2. If there is less demand of a particular demand it will immediately be scraped in
favour of a newer model.
3. The phone will be refreshed every 6 months instead of an year to keep the hype alive.
4.  In case of lower-than-expected consumer awareness the advertisement budget will be
increased.
5. Prices will be tweaked according to the industry norms and tax structures.