marketingstrategyofmicromaxx-140407163556-phpapp02.docx

Title of Project- Marketing Strategies of Micromax

CONTENTS

Introduction Part

Synopsis/Summary Acknowledgement Objective of Study

Company Profile Overview of the industry Company Profile Change In Logo Innovation Recent Achievements Products Competitors

Introduction to the Topic-Marketing Strategy Explanation of marketing Strategy Marketing Strategy By The Company Benefits of It

Market Methodology Explanation of research Types of research -Primary - Secondary Graphical Representation

Findings

Questionnaire/Annexure

Bibliography

Acknowledgement

I am deeply grateful to my project guide Mr. BHISHAM TECKCHANDANI who has helped me in completion of this project. He has been a constant guiding force source of illumination for me. It entirely goes to his credit that this project has attained its final shape. I would like to thank for his valuable advice and guidance.

I am also thankful to all the respondents who spared their valuable time for filling up the questionnaire and helped me out with the project

Pujit Chanana

Executive Summary

Micromax has entered into handset market in 2008 and within 6 years it has become the second largest manufacture in India. In this period it has focused mainly on rural market and has become the leader in the same. Now they have started to expand to the international market.

This plan incorporates innovative strategies that will utilize opportunities and address weakness as outlined in the situation analysis. Micromax is planning to launch an IPO of 2.15 crore shares to raise around Rs 2270 million.

Title of the Project:-Marketing Strategy OF Micromax IndustriesObjective & Scope Of Study:Every time business organization that comes into contact with customers, they develop a perception in the mind of the customers. Today every organization needs to know the perception in the mind of the customers, as the market is highly competitive. In order to gain the mind share of the customers along with the market share certain strategies are required. Especially in the mobile sector as there are many competitors, so to leave a positive impact on the customers, provide them best services to them. To gain the advantage over the competitors.

Objective of The Project Overview of the Micromax Company Reputation of the company in market Consumer Perception towards the brand Competitors in the market

Hypothesis:Marketing strategies help develop winning product and gain competitive advantageIn Mobile sector Marketing Strategies play a very important role to gain the consumers and their confidence.

Market Methodology1. Primary Source2. Secondary Source Primary SourceIt would be in the form of questionnaire survey which will reveal the consumer perception about the company and the products.

Secondary SourceIt would be collected from Case Studies, Newspaper and Search Engines (Google,Yahoo).

Company Profile

Journey of a homegrown brand

Micromax started as an IT software company in the year 2000 working on embedded platforms. By 2008, it entered mobile handset business and by 2010 became the largest Indian domestic mobile handsets company. This transformation was steered by four friends who divided responsibilities on functional lines, which havent changed since: Rajesh Agarwal, 47, Managing Director, Rahul Sharma, 37, Executive Director, Vikas Jain, 37, Business Director.

Through its emphasis on adapting to the changing market dynamics, introducing feature-rich phones and smartphones that are innovative and unique, Micromax has today become a brand to reckon with.

Today, Micromax has presence across India and global presence in Bangladesh, Nepal, Sri-Lanka.

Corporate Profile

Micromax Mobiles is one of the leading mobile companies in the World today. According to Strategy Analytics Global Handset vendor market share report, it is the 12th largest mobile brand in the World with a global market share of 1% and close to 8% market share in India. With in-depth understanding of rapidly changing consumer preferences coupled with the use of advanced technologies, Micromax has been able to differentiate itself from the competitors through innovation and design.

It took some 6 years for this new company Indian company to enter the domestic Smartphone market and win this area with its great-selling devices. The company, Micromax has been occupying the second position in the top Smartphone sellers in India since last year and is all set to make a rocking start into the next year, 2014.In less than a decade of existence in the Indian markets this company was able to take the battle on with the tech biggies. Samsung, Nokia, Apple and others with tons of experience and loads of smart gadgets have been for a run for their market share. These companies also introduced buyback schemes on their premium and budget products this year. But due to its cheaper products Micromax had no worries as far as its products were concerned.

The brand took on the leaders in the category with specific products that addressed different customer needs. The company has focused their efforts towards creating life-enhancing mobile phone solutions and wireless technologies that cater to the increasingly evolving needs of mobile users in India. Micromax aims to be a billion dollar company with a significant double digit market share by 2015.

Change in Company Logo

Micromax unveiled its newpunchlogo.The new logo was selected from list of logos submitted by the participants in creative hunt to revamp logo contest,in association with Talent house India.The new logo was revealed at the Micromax Asia Cup 2012, during the India vs. Pakistan match on Sunday, March 18, 2012.

The contest targeted the design community across the virtual world and students from over 150 colleges and design schools. The contest ran for a span of 2 months registered over 2500 entries by more than 1500 participants from across the globe. Out of the entries received, Eric Atkins of USA was announced as the winner of the contest.The winner of the online contest was rewarded with a MacBook Pro and recognition on the Companys website.The entire Micromax branding was revamped

Old LogoNew Logo

The Core Team

Rajesh Agarwal(Co-Founder & Managing Director)

Rajesh Agarwal, Co Founder, Micromax Informatics is a key force behind one of the largest mobile brand in India in terms of volumes. With an enriching experience of 22 years, Rajesh has orchestrated strategic accomplishments that, together with ground-up development, allowed Micromax to assemble a portfolio amongst the top-tier handset manufacturers that serve consumers across the Globe.

Inspired by Warren Buffett, Rajesh an electrical engineer encompasses from him the rich virtues of will strength, determination and risk-taking ability and applies them across all diversification and growth to emerge as a victor. An ardent outdoor sports lover, Rajesh shows keen interest in volley ball, cricket and table tennis. He is fond of travelling to new places and exploring different cultures. In his leisure he reads about successful leaders and draws inspiration through their ideologies.

Rahul Sharma(Co-Founder & Executive Director)

Mr. Rahul Sharma, Co Founder, Micromax Informatics Limited, is the driving force behind Micromaxs commendable position in the Indian mobile handset market. Leading the Product and Sales strategies in Micromax, Rahul encompasses an enriching work experience of 13 years. The phenomenal growth of Micromax can be attributed to the dynamic leadership of Mr. Sharma. An unparalleled increase in revenue inflow further substantiates the Midas touch that Rahul has brought to the company and an equally impressive growth of the company highlights the consistency of his leadership

For the successful person he is today, Rahul considers his father to be his true inspiration in life, his real hero. It was his father who instilled in Rahul a strong work ethic, honesty, sincerity and humility. Besidesbeing an entrepreneur, Rahul is a sports enthusiast with a passion for fast cars and Formula 1 racing.

Vikas Jain (Co-Founder & Business Director)

Vikas Jain is the Co-Founder Micromax Informatics Limited. With over 14 years of experience in international business & planning and the information technology sector, Vikas has played a crucial role in garnering and accelerating the business dynamics of Micromax. With his unique set of expertise in the 3G business dynamics, coupled with a great sense of innovative world successfully contributed in taking the company to newer markets and helping in global expansion.

Vikas upholds diligence and perceptiveness in all his endeavors and understands the fact that Micromax being a homegrown market has an edge over the rest when it comes to its international counterparts interms of the understanding of the Indian consumer.Prior to his entrepreneurial journey, Vikas was associated with renowned companies like TELCO, GE and Daewoo. An aggressive winning trait coupled with undying efforts of a like assumes to be the thrust behind Micromaxs step to a successful pedestal.

Brand Ambassadors

(Hugh Jackman)

Hollywood superstar Hugh Jackman has been chosen over a Bollywood star as the brand ambassador of Indian mobile handset brand Micromax. He says he is a "huge lover" of India.

Jackman is known for films like "Les Miserables", "The Wolverine" and "Prisoners".

His association with Micromax will start with its new Smartphone Canvas Turbo, which will be launched in India soon.

(Akshay Kumar)

Interestingly, while the Hugh Jackman is being signed, were seeing parallel ads by Akshay Kumar promoting the recently launched Bolt A67 and Bolt.

These ads are running in conjunction with his movie Boss, so that these devices are rightly targeted at that kind of audience. But, this is not the first time,Micromax has roped Akshay Kumar for its ads. Back in 2010, Micromax launched a campaign with

Akshay Kumar to showcase not just its products, but its mantra of Nothing like Anything. The setting of the ad showed how various Devices from the company can be helpful in any kind of situation.

(Kalki Koechlin)

The new TVC of Micromax Mobiles M2 music handset featuring Koechlin shows her using her phone to get together with her boyfriend in a movie theatre. The ads catch line is "Micromax M2: looks like a music player, works like a phone." Prior to this,Koechlin has also featured in the Coke ad with Imran Khan.

Mircromax Mobiles already has Akshay Kumarand Twinkle Khanna as its brand ambassadors

(Twinkle Khanna)

Twinkle Khanna, who had taken a sabbatical from the tinsel town, was back. This time round, she was seen in a commercial for Micromax Bling Mobile. It is the same brand of cell phones endorsed by Twinkle's hubby dearest Akshay Kumar.

Innovations

First Long Battery Life Phone with 30 days battery backupo X1i Marathon Battery phone with 30 days standby time & 17 days Talk time

First Dual SIM Dual mode active Phone (GSM+CDMA)o Micromax GC700 is the first GSM + CDMA Mobile phone

First Gaming Deviceo G4 Gamolution phone with motion sensor gaming like Wi-fi

First Womens Line of Devices o Q55 Bling phone- First womens phone

First Universal Remote Control Phoneo X235 With Universal Remote Control for TV, DVD, AC in your phone

First phone with built-in blue tootho Micromax X450 Van Gogh A stylish phone that integrates a detachable Bluetooth headset in its sleek design

First Superphone with Gesture Control o Created a new category called Superfone with Gesture Control, powered with 1GHz dual core NVIDIA Tegra 2 Processor

Recent Achievements

The success of any Smartphone maker is a direct proportional to the number of brands it has created for its products. Micromax is planning to launch an IPO of 2.15 crore shares to raise around Rs 2270 million.

Micromax, according to IDC, has a 4.1 percent market share in India and is now valued at over $1 billion. M Financial, Citigroup, Edelweiss and Nomura are the book running lead managers to the issue.

For the year ended March 2013, Micromax had sales of 2,400 crore on selling over 85 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.

Products

Mobile Data Cards

Tablet LED TV

Competitors

Micromax mobile manufacturer is putting up some tough competition for big brands like Samsung, Nokia and Sony as the latest numbers from the International Data Corporation (IDC) show.The Q2 numbers for 2013 are out and what is noticeable is that Samsung, which in Q1 of 2013 had a market share of 32 percent, is facing some serious competition from home grown vendors such as Micromax. Samsung is still number one in the Indian smartphone market but its share has fallen to 26 percent. Samsung is the biggest challenger to Micromax with nearly 22 percent market share. (the company had 19 percent market share in Q1) Micromax also shipped 2 million devices this quarter and its Canvas range has done well to boost the companys volume share.

Samsung

Samsung was formed in 1938 by Lee Byung-chull as a trading company based in Su-dong. The small company started as a grocery, trading goods produced in and around the city as well as its own noodles. The company grew and soon expanded to Seoul in 1947 but left once theKorean Warbroke out. After the war, Lee expanded in to textiles and built the largest woolen mill in Korea.

The successful diversification became a growth strategy for Samsung, which rapidly expanded in to the insurance, securities, and retail business

LAVA

LAVA International Ltd is one of the fastest growing mobile handset companies in India. Established in 2009, Lava has emerged as a dominant player in the market; having consolidated its position amongst the top 3 Indian brands in slightly more than 3 years of its market presence. With "Create Possibilities" as its guiding principle, LAVA has embarked on an ambitious journey of empowering every human with quality innovative products.

LAVA has a wide product portfolio that encompasses tablets, feature phones and smart phones having various models in bar and touch form factor at multiple price points to suit all categories of consumers. LAVA's basket of brands includes ETAB series of tablets, IRIS series of Android based smartphones, Discover series of Internet experience touch phones, Spark series of premium bar phones and ARC & KKT series of feature rich budget phones.

Nokia

A wired and wireless telecommunications company, Nokia India is a pioneer of cellular network in the country. It manufactures a wide range of mobile devices and provides people with experiences in music, navigation, video, television, imaging, games and business mobility through these devices. It handles research and development, network infrastructure businesses and company handsets. Nokia has its manufacturing unit in Chennai.

Nokia Chennai is one of Nokias biggest facilities, its also big on sustainability. In 2010 it received the Golden Peacock Award for its high standards of environment management. And its highly active in the community with projects ranging from a local library programmer to village regeneration projects.

Marketing Strategies By Micromax

1. Newer, cheaper and better productsThe Companys first bet was on feature loaded feature phones. The aim was Nokia phones that were the best selling phones in India during 2008-2011.This was the time when Samsung was introducing Smartphones that were priced at premium price points.One of the earliest phones Micromax introduced was X1i that promised 30 days battery backup. After this it introduced the first dual-sim dual-standby phone, the X600 Gravity. Then there was a phone for gamers, a phone with built-in Bluetooth and the journey took to new heights by the year 2012.Within years the company became the largest Indian domestic mobile handsets company. On March 31, 2010, the company registered a market share of 6.24 per cent for the quarter, this was 0.59 per cent in September 2008. This was 19.7 percent (smartphones) in 2013

2. Leave no segment

In a market where there were almost no gadgets aimed at ladies, the company took the courage to introduce a phone aimed at ladies only.

The company launched Q55 and A55 in its Bling series specially for women, without the fear of being branded as sexiest. In which Twinkle Khanna appeared. These two Smartphones were studded with Swarovski crystals and enjoyed very good response in the market

3. Competitive

The company knew very well that it will be difficult for it to make a mark in the urban market. It aimed at the rural and semi-urban areas. Our approach was to first attack the rural markets, and then come to the towns said Rahul Sharma in an interview toBusiness Standard.

The strategy was a success. When Samsung was releasing products atRs.10000, Micromax was ready with aRs.2000/Rs.3000 product. After Nokia silently made way out of the Smartphone battle Micromax geared with a focus on the urban markets.

4. Brand building

Brand building was one of the major tasks it had in hand. It went with Akshay Kumar, the popular khiladi of the Bollywood who has a huge fan following in the rural and sub-urban areas. It promoted its image as an innovator and pioneer in bringing amazing nothing-like--anything phones to Indian market.

In 2012 it went for an International look. It started with TVCs that featured out-of-India landscapes and users. By the end of the year it signed Hugh Jackman as its brand Ambassador for Canvas phones. The first phone launched with the Wolverine star was the Canvas Turbo.

5. Low-cost premium products

It was selling feature phones and was a known brand in Smartphone segment also. It was time for the company to take its bigger challenge. In year 2011 it shook up its Chinese partners for better phones that it can call its flagships. It named them Canvas, and introduces more than a dozen of new entries into the year throughout 2013.

6. Grabbing the Market

The Company needed to find a suitable peg to shake the Indian urban market while also gaining on sales figures. With Samsung as the only company selling 5-inch Galaxy S3 (4.8-inch) and a bigger Note (5.3-inch) in India at premium prices, Micromax zeroed-in on the 5-inch segment. The target it laid for itself was making a 5-inch device affordable to everyone who wants one.After the success of Canvas A110 in 2012, in January 2013 it launched Canvas HD, followed by a series of Canvas phones in the price range ofRs.6500 toRs.20000. While Canvas HD got a 720 x 1280 pixels display resolution to the market, the Canvas Viva was an affordable 5-incher.

7. Product Transformation

In mid of 2013 it progressed a bit with software. Its phone usually ran stock Android. But with the Canvas 4 A240, it not only went for a metal mid-body but also slight change in the software to bring premium features to the phone. No doubt it went premium in the Canvas range. With the Canvas Turbo it continued to cater to this premium segment.

8. Customization

The Company have realized that in the next year there will be cheaper phones that will move from 4-core processors to 8-core powerhouses. It is the first domestic company that was rumored to launch an octa-core phone in the market next year.

9. New products

Nokia is back in smartphone market with low cost Lumia, attractive buyback schemes and Asha phones. It is the only phone in Indian market with the Windows OS (leaving Samsung Omnia performing good in sales) Microsoft and Nokia has already entered into a partnership and Nokia will go aggressive on 5-inch segment in 2014.

Keeping this in view Micromax has already revealed that it will bring a Windows OS phone this year and a 4G capable phone in 2014 for the Indian market.

Benefits of Marketing Strategies

Saves time and moneyTime and money are important primary factors of success in the business industry. As you will see below, a marketing strategy helps owners to define a brand so that they dont spend loads of productivity time marketing a product to the wrong people. A marketing plan provides a blue print for business owners to follow with hopes to bring in more money than they put out.

Provides a plan

Marketing plan acts as a guide as the business progresses, so owners can see where their time and money is going. It provides a look into the future goals of the company, and gives step-by-step directions on how to achieve those goals.

Defines the brand

This is a very important element of the marketing plan because without it, a business wouldnt last long. They would be exhausted. Defining a brand means knowing what you are selling, and to whom youre selling it to. In other words, you must also define your audience. Without knowing who to market to, business owners can lose valuable time. Marketing strategies help with issues such as these, and plans out these things.

Market Methodology

Need For Study

The basic idea of taking up this study is to analyze the market share of Micromax Products in New Delhi. At the same time, an attempt was made to understand the Brand image of micromax in New Delhi.

Primary Objective

The primary objective of the study is to analyze the market share and understand the Brand image of Micromax Mobile

Secondary Objective

To find out the market share To Know the brand image To find out which is the largest selling mobile

Research Methodology

The essential part of any report in research methodology. The field study was conducted to analyze the market share and understand the brand image of Micromax.

Sample Size The sample size was 30 respondents taken

Field Work & Data CollectionIn the data collected phase, I tried to cover maximum area and the consumer of Model Town & Pitampura(New Delhi)

Collection of DataData used in this report is mainly primary data, which are collected first hand by survey in the field. In some areas secondary data may also be taken into consideration.

Collection of Primary DataIt would be in the form of questionnaire survey which will reveal the consumer perception about the company and the products.

Collection of Secondary Data It would be collected from Case Studies, Newspaper and Search Engines (Google,Yahoo).

Data Interpretation & Analysis

1. Gender? Interpretation From the above table it can be observed that 60% males and 40% females have been taken in the survey

2. Age?

InterpretationFrom the above table it can be observed that the age respondent which is Less than 18(7%), 18-22(36%), 22-26(30%), 26-30(17%), More than 30(10%)

3. Occupation?

InterpretationFrom the above table, it can be observed that the occupation of the respondent are college students (46%), Businessman (17%), Service (20%), others (17%)

4. Do you have any of the following products manufactured by Micromax?

InterpretationFrom the above table it can be observed that the respondents use Micromax-Mobile (57%), Tablet(33%), TV(3%), Data Card(7%)

5. Which mobile phone you are using?

InterpretationFrom the above table it can be observed that the respondents use Micromax mobile more than other consumer. Nokia(10%), Samsung(23%), Micromax(57%), iPhone(7%), Blackberry(3%).

6. How long do you use your mobile phone?

InterpretationFrom the above table it can be observed that the respondents are using mobile phone. Less than one year (70%), 1-2years (20%), 2-4years (7%), above 4 years (3%)

7. What is the image of Micromax in your mind?

Interpretation From the table it can be observed that the respondent consider Micromax as a Economical (80%), Durable(7%), Safe Product(13%)

8. Where do you often see Micromax advertisement?

Interpretation From the above table, it can observed Micromax TV advertisements affects the respondents more. TV(60%), Newspaper(15%), Online(20%), Radio(5%)

9. Do you think Micromax can be market leader?

InterpretationFrom the above table it can be observed that 87% respondent believe that Micromax can be a market leader but 13 % think it cannot be a market leader.

10. Are you satisfied with Micromax?

InterpretationFrom the above table it cTan be observed that the respondent are satisfied with the Micromax products. 77% are satisfied and 23 % are not satisfied.

SWOT ANALYSIS OF MICROMAX

Strengths

Micromax is No.1 in terms of market share in terms of mobiles, it captured Samsung market share by superior innovation in Smart PhonesMicromax is financially strong and stable company. The production process and process of inventory management are consistent with industrial standards.The brand value increased by 80% in last three yearsThe Company enjoys wide range of product portfolio which includes Mobiles, Tablets, Television, Data Card and other accessories. Micromax holds significant market share in most of the product categories.Micromax is best in terms of technology. It was first to introduce dual-sim mobile phone, first motion sensor phone, first universal remote phone.Micromax took advantage of growing economy of Asian market by setting up manufacturing plant in India there by reducing logistics and supply chain

WeaknessMicromax needs improvement in defining the vision, mission and strategic corporate objective.Marketing management needs improvement in all the facts of marketing

HRM also needs improvement in all the facts of human resource management

Chinese products focus on economies of scale and dump into Indian market for lesser cost

Online stores which sell a wide range of products are giving better deals as they dont incur cost in distribution channel.

Opportunity

Micromax is reasonable equipped to take care of technological changes

Micromax is maintaining good international relationship with countries and local

Micromax has future plans for customized phones in the Indian market.

The population is growing so as the demand for mobile phone demand is also growing.

The financial position is strong and there is a scope of entering into unrelated diversification

Threats Regulatory issues and safeguarding of property rights was main threats in legislation

The competitor like Nokia are focused only in one segment

Threats from Chinese Products

Retail chain like Bigbazar sell consumer electronics in low cost strategy which is procured in bulks from foreign market.

QUSENTIONNAIREStudy of mobile market for Micromax Informatics with special reference to New Delhi.

NAME: ______________________

1. Gender

Male Female

2. Your Age

Less than 18

18-22

22-26

26-30

More than 30

3. Occupation

College

Business

Service

Others4. Do you have any of the following products manufactured by Micromax?

Mobile

Tablet

Television

Data Card

5. Which mobile phone you are using?

Nokia

Samsung

Micromax

iPhone

Blackberry

6. How long do you use your mobile phone?

Less than 1 year

1-2 Year

2-4 Year

More than 4 Year

7. What is the image of Micromax in your mind?

Economical

Safe Product

Durable

8. Where do you often see Micromax advertisement?

TV

Newspaper

Online

Radio

9. Do you think Micromax can be market leader?

Yes

NO

10. Are you satisfied with Micromax?

Yes

No

Bibliography

1. www.wikipedia.com2. www.micromax.com3. www.studymode.com4. www.forbes.com5. www.google.com6. www.yahoo.com

Bibliography

Annexure