Strategies for increasing

the market share in tier II

and tier III cities of India

Presented by
Sachin Gupta
14P101

Motorola Mobility

 Situation

Complication

Question

Answers

Motorolas market share in tier II/III cities

is very low compared to its share in tier I
cities

Motorolas re-entry in Indian market; exclusive tie up with Flipkart

Quickly capturing significant market share through its online only
model
Put quality handsets at an affordable price before the customer
Not enough sales generated from tier II and tier III cities
Competition increasing at the speed of light; very alarming
Focus on strategy development to increase the share of Motorola
especially in tier II and tier III cities
How can this be achieved? What should be the strategy for
Motorola going forward?

Situation

Complication

Question

Answers

Entry of various competitors in the market has

opened up the Indian smartphone market
Competing on price only erodes the margins
Established competitors quickly copied the online model
Competitors operating on both online and offline channels
Motorolas absence in offline channel ubiquitous
Entry of Chinese makers into Indian market made the space
even more competitive

Entry of various competitors in the market has

opened up the Indian smartphone market
Samsung retains the top spot in Indian smartphone market with
24% IDC_Report
Other top players Micromax, Xiaomi, Apple, HTC,Intex, Lava,
One plus
Top 5 players account for about 59% of Indian Smartphone
market
Xiaomis entry in top 5 with 4% share; replaces Motorola from
top 5 in the previous quarter
Supposedly the awareness levels of Motorola not very high

Situation

Complication

Question

Answers

What are the factors that govern

Motorolas functioning? Hows the
industry stacked up?
Internet 3rd largest in the world; 32% CAGR; 213m(Dec13),
302m(Dec14), estimated 354m(Jun15) [report]
Mobile internet users 173m in Dec14 to 213m in Jun15(estd),
23% growth
Ecommerce $13.5b in 2014 to $16.3b in 2015; growth of 33%

[report]

Drivers of ecommerce Smartphones, internet access, COD facility,

Huge investments
Smartphones 350m users(2014), growth of 200m by 2016

[report]

Motorola Owned by Lenovo; Current range of devices: Moto E, Moto

G, Moto X, Moto Turbo and Moto 360

Why do we want to conduct the research in the

tier II and tier II cities of India? : rationale
Propensity for ecommerce increasing substantially
Smartphone sales also increasing at a fast pace
Majority of growth and expansion in semi-urban and rural areas
But Motorolas sales low in tier II and tier III cities
Whats holding Motorolas sales back?
Why not directly ask the customers?
Try to understand the decision drivers?
How do they view Motorola against the competitors?

What are those critical objectives that

we need to address?
As the factors discussed earlier are all interlinked to Motorola: we
divided our research broadly into 4 different categories:
1.
2.
3.
4.

Demographic study
Smartphone buying behavior
Propensity for online shopping
Awareness of Motorola

The objective was to study and understand these four

categories before working on the end goal.
Recommendations that could only be supported by the
research outputs.

What are those critical questions for

which the answers are being looked for?
What is the current ecosystem of smartphone industry? How
are the smartphones sold?
How is the sales trend and buying behaviour among people in
online v/s offline channel?
How is Motorolas awareness in tier II and tier III cities? Are they
at sufficient levels to trigger increased sales?

What is our sample? : Method

Primary research conducted in the regions West , North and Central India.
Major Cities (Tier I/II/III) :

Punjab Amritsar, Jalandhar, Phagwara

Haryana Ambala, Kurukshetra, Karnal
Gujarat Ahmedabad, Vadodara, Surat
Maharashtra Nashik, Aurangabad, Nagpur
Chattisgarh Bhilai, Raipur

Total No of respondents 938

Total Cities Covered 14
The sample was pre-dominantly targeted at the students. 94.6% of the
respondants were in the age group of 12-25y, 4.64% were in the range of
26-35y and the rest >35years

How have we conducted our survey? :

Procedure
Divided into 2 phases:
Visit to service centers of Delhi/NCR
Visit to tier II and tier III cities of different zones

Service Centers
Conducted face-to-face interviews
Interaction with service center employees

Phased visit to different zones of India

Floated questionnaire
Face-to-face interviews
Visited colleges, Universities, Shopping Malls, Local mobile/electronics markets
and other markets with high footfall
People willing to spend time were interviewed at greater lengths

Situation

Complication

Question

Answers

Results and Analysis

Smartphone features ranks among the top 3 factors while
buying
Majority complained about certain specific features which they
would like to change in their smartphones
Certain factors prohibit people from purchasing products online.
Top ones are products genuineness, lack of touch & feel,
payment options
Motorola awareness level for new products low among the
respondents

Improve product features by allowing the

user to customize the phones features
Introducing concept of replaceable smartphone parts
Customer having the option of replacing an old part with an upgraded one
Swap an old low resolution camera with a higher resolution camera
To be integrated on Moto Maker platform
No need to buy a new smartphone

Launch experience zones in different cities to

overcome the online shopping obstacles
To address products genuineness, lack of touch n feel aspect we recommend
establishment of Motorola experience centers in different cities of India

This involves

Products on display:
customer able to touch n
feel the products
Facility to order from these
experience centers
Exclusive product launches
at such stores
Special promotional
schemes when buying from

Increase awareness of Motorola through

various marketing ways
Increase in promotion activities
contests and offers
Customer engagement
programs through
Campus engagement activities
Experience centers

Word of mouth marketing

OOH Advertising
Native advertising
Increased social media
interaction to increase branding

Thank You for the

opportunity!