A Study on Micromax

Group No.-6

Arun Rana
Ashish Dhull
Ashray Mishra
Avina Gupta
Ayush Sinha
Ayushi Sharma
Dimple Batra
 Handset Industry in India
• Voice communication -> Entertaining Device.
• Social Networking
• Games
• Internet
• Music
• Chatting
• Fashion Accessory
• Nokia
• Samsung
• Micromax
• Sony ericsson
• Motorola
 New entrants
• Karbonn
• Lava
• Maxx
• Intex
• Lemon
• Videocon
• Usha Lexus
• Orpat
• 2 years into the business and the company
dare to challenge the #1 & #2 even in a
cluttered market. That’s MICROMAX !!
 Founders
• Rajesh Agarwal: Handles company finances.
• Sumit Arora: Chief Technology Officer.
• Vikas Jain: Handles alliances with other
companies.
• Rahul Sharma: Risk taker with big ideas.
Products
• Currently 3rd largest GSM vendor in the Indian
market. Just a few paces behind Nokia and
Samsung.
• Million handsets every month for the past
year !!
• 15 billion revenues during past year.
 Segmentation
•Micromax has divided its target audience into three categories:
Rural sector.
The urban youth.
High profile users.

•Micromax mainly targeted the rural segment right in the beginning and now has started
concentrating on the Urban youth.

•The youth segment is the second most important segment, whom the brand will appease with
innovative features such as a memory card with more capacity, better music and camera quality
and a trendy face value.

•For the third segment or the premium class 'technological innovation' will be the catchword.
 Product differentiation
 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
 Competitor analysis
 NOKIA
Played a pioneering role in the growth of cellular
technology in India, starting with the first-ever cellular
call a decade ago, made on a Nokia mobile phone over a
Nokia-deployed network.
Over the years, the company has grown manifold with
its manpower strength increasing from 450 people in
the year 2004 to over 15000 employees in March 2008
(including Nokia Siemens Networks).
 Current market share:53.4 %
 SAMSUNG
Samsung Mobile division manufactures and markets a wide
range of mobile telecommunications products across pre-pay
and post-pay markets, in both the consumer and business
segments. Samsung's mobile phones are divided into 6
major categories: Style, Infotainment, MultiMedia,
Connected, Essential and Business, and the division is led by
Vice President, Mark Mitchinson.
The Mobile division is part of Samsung Electronics Co. Ltd.
 Current Market Share: 13.2 %
• Strengths
Good distribution network
 Good footprint in rural sector.
 The company has a lot of “firsts” to its credit on their versatile
product portfolio
 More features in less price as compared to other Mobile handset
companies.
• Weakness
 They have concentrated on individual products but not on brand
Micromax.
 Customer Service is not up to the mark.
 As if now they don’t have any production facility in India.
• Opportunity
3 G technology is being introduced in India and Micromax
can gain from this opportunity by providing low cost 3G
mobiles.
 In urban market Micromax can target the middle class
segment which always is interested in getting value for
money.
• Threat
Many low cost Mobile Handset manufacturers are there
which makes it difficult for people to differentiate between
different low cost brands.
 As Micromax has branded itself as low cost manufacturer so
people from urban areas may hesitate in going for micromax.
 IMC
• Integrated Marketing Communications
• With a 360 degree advertising and marketing
strategy sketched out, the company has an
optimistic outlook for the telecom consumer
space.
 IMC Tools
• Events and Experiences
• Advertising
 Television
Newspapers
Hoardings
Bill Boards
Source, Message & Channel factors
• Celebrity
Akshay Kumar & Twinkle Khanna
• Familiarity
Akshay Kumar is a very famous celebrity in Indian
villages as well as urban areas.
• Likeability
Many of the youth in India resemble themselves with
Akshay; hence there are great chances that if he
endorses this brand, it will become more popular
among youth.
 Message
Through all the media Micromax is conveying
a very clear message that we are best in
manufacturing phones which have innovative
features which makes your life simpler and at
a very affordable price.
 Channel Factors
• Broadcast
• Print media
• Support media
• Clutter
Data Analysis and Findings

Income of Respondents
Income < 15000 Income > 15000

30%
70%

Graph 1:
The graph shows the Income Band of our respondents.
 Do you Use Mobiles
Yes No
1%

99%

Graph 2:
From this graph we can observe the predominant use of Mobiles.
 Preference of Handset

Household Income > 15000

0 10 20 30 40 50 60 70 80 90

Graph 3:
From this Graph we come to conclusion that People prefer Nokia more to
any other Mobiles when the Household Income is greater than 15000.
 Preference of Handset

Household Income > 15000

0 10 20 30 40 50 60 70 80 90

Graph 3:
From this Graph we come to conclusion that People prefer Micromax and Other
low cost Mobiles more to any other Mobiles when the Household Income is less
than 15000.
 Factors on which buying decision of Mobile handset
depends
Other
12% Brand
26%
Price
19%

Bran
d+
Featu
res
43%

Graph 4:
From the above Graph we conclude that factors that affect the buying
decision most is Brand, Features and Price.
 4.Where do you get information about new Mobile Phone model?

Newspaper
4%

Friends
TV Commercials 35%
21%

Internet
40%

Graph 5:
From the above graph we see the form of Advertisement that is most
effective.
 Conclusion
 From the study we have done we can conclude the following:

 Micromax is a very innovative company as it launches mobile phones with very

unique and innovative features.

 It has utilized events and experience as part of their communication strategy to

enhance the recall rate and awareness level.

 It took a right decision to sign Akshay Kumar to endorse their brand as this will
help them to create brand equity.

 It does not make very creative advertisements; they simply narrate the
features of the phone.

 They have planned to spend a huge amount of Rs. 100 crore on advertisement
and promotions.
 Recommendations
 Now they have achieved a good market share, so now their advertisement
should focus on brand building.

 They should fully utilize the brand power of Akshay Kumar, which till now
remains under utilized.

 The tag line is very confusing; a new tag line which can be understood easily
must be incorporated.

 The brand's promotions, although heavy, is a big letdown. Some of the

campaigns are good but most are below par. For example, the Micromax Face
book ad .hence quality of the advertisement must be improved.

 There is a risk of the brand perceived not as an aspirational brand but an

ordinary price warrior if it does not focus on the quality of the communication.
 Recommendations
 Micromax would do well if it could bring in some class in their
campaigns.

 Micromax as a brand should be developed focusing on the core

brand values like innovation and value orientation.

 When the product range widens, it may not be practical to sustain

individual campaigns. So it is time for Micromax to position the
Family Brand and develop a brand identity
 OU !!
THA N KY