Description
The presentation about the Strategic Analysis of Micro Max.
NOTHING LIKE By: ANYTHING
3/1/13
Amol Azad Ishan Aggarwal Rajat Singla
?About Micromax
?Micromax 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, Micromax 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 3/1/13
?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), Aspirational Qwerty Keypad Handsets, Operator Branded 3G Handsets, OMH CDMA Handsets, etc. 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. substantial monthly growth of Micromax is its 80% 3/1/13
?With a 360 degree advertising and marketing strategy
?One of the major aspects that contribute towards the
?Micromax’
is now progressively moving towards establishing its foothold in the competitive urban towns as well. Informatics Limited created a niche for itself in the telecommunication industry. Micromax ventured into the telecommunication industry with an end-to-end solution of Fixed Wireless Devices and Wireless Data Cards. of fixed wireless-powering desired products, the company forayed into one of the most predominant genres of telecommunication – Mobile handsets. Since then Micromax has received commendable response for its unique and interesting handsets.
?With young enthusiasts as its anchor, Micromax
?In the year 2008, after delivering upon the technology
?Innovation, Cost-Effective, Credible and an Insightful
R&D, have now become synonymous to Micromax in
3/1/13
?In 2008 Micromax ventured into the
mobile handset market
?The brand wanted to create a base
before taking on the large players
?GO-TO- MARKET STRATEGY--Micromax
concentrated on the rural market first.
?Micromax launched its first phone in the
rural market with a very unique USP- 30 days battery standby time
3/1/13
SUCCESS OF X1i
?Company to go aggressively into
the market
? Tapping the rural market is not
an easy task.
?There is severe logistics pressure
in servicing these markets
?Establish DISTRIBUTION
NETWORK- 34 super distributors, 450 distributors and around 55,000 retailers. 3/1/13
?Micromax has a lot of interesting and thoughtful
products to its credit on their versatile product portfolio. It was the first to introduce:
?1. Handsets with 30 days battery backup ?2. Handsets with Dual SIM / Dual Standby ?3. Handsets Switching Networks (GSM - CDMA) ?4. Aspirational Qwerty Keypad Handsets ?5. Operator Branded 3G Handsets ?6. OMH CDMA Handsets, etc.
3/1/13
DISTRIBUTION STRATEGY
?Micromax managed to make dealers pay in
advance by offering them more margins. It offered higher margins of 15 % margin, which is higher than the industry average of 6-10%.
?Micromax managed this hurdle through
strategy of more margins for advance payment.
3/1/13
?To increase penetration in the Indian telecom
market, Micromax Is bundling with telecom operators such as Aircel.
?For better accessibly and prominence in the
market, Micromax is coming up with 150 experience zones (exclusive stores) across the nation, in addition to ensuring bigger presence at the multi branded stores.
3/1/13
PRODUCT STRATEGY
?Micromax products were towards the lower
end of the pricing spectrum, the brand was focusing on adding more features at a reasonable price .
?The focus was more on value than price. ?A clear differentiation was a significant factor
3/1/13 that
aided the significant growth of micromax
?The company in their website claims to have
invested heavily in the product development.
?The brand boast of launching many firsts in
the market PRECISELY for this reason.
Besides the focus on product development, Micromax has invested heavily in brand building.
3/1/13
MICROMAX and Cricket
?The brand was one of the big spenders in the latest
edition of IPL IPL.
?Micromax has centered much of its brand building
exercise around cricket.
?The company believes that cricket promotions will
prove to be a great platform to reach out to the audience and give the brand an opportunity to bond with the youth.
?With the cricket fever rising and cricket fans anxious
3/1/13
for more action by the Indian squad, Micromax has formulated an innovative branding tactic to strengthen the brand image and develop creative brand integrations.
?Micromax is also planning an innovative activation
across the cricket season, breaking away from the vanilla branding that we are all used to. Activation will see some intelligent product placements, on ground- on air integrated product coverage and mentions, crowd branding and the brand will be visible on a digital platform on the ground throughout, adding to the technology stand point. Africa VS India ODI series in 2010. suggests it was the chief sponsor.
?It was one of the principal sponsors of the South ?In the just concluded ‘Micromax cup’ as the name ?Most of the brand promotion for Macromax has
3/1/13
been centered around products till last year
BRAND BUILDING INITIATIVES
? Micromax, has shelled out a whopping Rs 100 crore for
its brand building initiative. It is targeting a wide base of new and existing subscribers, using a 360 degree media approach via multiple platforms.
? It has allotted Rs 60 crore for ATL (above the line)
advertising, of which print will take the maximum share, followed by TV and radio. Another Rs 40 crore will go into the BTL (below-the-line) initiatives. The communication has been launched in the beginning of 2010.
? In 2009, the campaign was mostly product centric but
this year, the efforts will be to create a brand that is aspired by all. Consumers have already experienced 3/1/13 Micromax as a handset. Now, it is time for the
Micromax Segmentation Strategy
? There are three segments of handsets that it works
with:
? For the premium category, which is solely comprised of
QWERTY keypad handsets, the focus will still remain 'easy chatting'. In fact, Micromax will tie up with social networking sites such as Facebook to ensure better connectivity and continuous communication for its QWERTY keypad model users.
? In the multimedia segment, it will offer innovation and
variety in its features such as radio, MP3 player and 3/1/13 camera. Here, it plans to launch co branded phone
? At the entry level, Micromax will play the 'variety' card.
Today, at the entry level, not much variety is available. Handsets of all companies, available at Rs 1,2001,300, look equally unimpressive. Micromax plan to change the face of the entry level phones while keeping the price more or less same.
3/1/13
?On basis of ‘Target Audience’ Micromax has
divided its target audience into three categories - the rural sector, the urban youth and the high profile users. Micromax is solely targeting the rural segment right now - and why not? After all, it promises the maximum number of consumers and all they demand from a handset is regular features at an affordable price. 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, 3/1/13
3/1/13
BRAND'S PROMOTIONS
Campaigns Micromax Facebook ad Gravity, MTV , (Co-Branded phones) EEZPad.
3/1/13
PHONY JOURNEY
?30-DAY BATTERY PHONES ?April 2008: Rs 2,249; Now: Rs 1,999 The X1i,
Micromax’s first phone, had a battery that could give 17 hours of talk time and go 30 days on a single charge.
?DUAL-SIM PHONES ?July 2008: Rs 1,999-12,999 For those who want two
numbers but one handset.
?PHONE-CUM-REMOTE 3/1/13
3/1/13
MARKET SHARE
?Micromax is currently the third-largest GSM
vendor in the Indian market,
?A share of 8.1%, perhaps just a few marks
behind Samsung
?Samsung at the second position has 10.4%
control, as per market reports.
3/1/13
?Micromax has been selling anywhere around a
million handsets every month, for the past year, and as company officials state, it has earned about Rs.15 billion in revenues during the past year.
?The Indian handset market is estimated to
have sold about 130 million handsets units in the last calendar year alone, which implies, that if we were to consider just the sales during the past 12 months, Micromax has a 3/1/13
Strategies in a nutshell
?Corporate Level strategies:
?Expansion strategy ?Resource allocation: heavy investment in R&D,
lately heavy investment in brand building.
?Wide portfolio catering to diverse segments.
?Business Level strategies:
?Unique Fusion of Cost Leadership and Product
Differentiation.
?Following a Frontal and Flanking attack strategy.
3/1/13
?Products are mostly in the embryonic and
?Functional Level Strategies
?Product Innovation ?Rapid channel expansion ?Targeting widest customer base ( Rural + Youth) ?360 Degree advertising ?Innovative advertising ?Effective and accurate segmentation ?Excellent Supply Chain management
(Delivering value to each channel member).
3/1/13
?Also targeting niches such as exclusive
Women’s phones
?We can see from the history that they were
already into the wireless devices industry so they had a prior ‘Learning’ about the mobile industry.
?They have built a solid base for a full scale
assault on the market leader.
3/1/13
THANK YOU
3/1/13
doc_621311458.pptx
The presentation about the Strategic Analysis of Micro Max.
NOTHING LIKE By: ANYTHING
3/1/13
Amol Azad Ishan Aggarwal Rajat Singla
?About Micromax
?Micromax 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, Micromax 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 3/1/13
?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), Aspirational Qwerty Keypad Handsets, Operator Branded 3G Handsets, OMH CDMA Handsets, etc. 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. substantial monthly growth of Micromax is its 80% 3/1/13
?With a 360 degree advertising and marketing strategy
?One of the major aspects that contribute towards the
?Micromax’
is now progressively moving towards establishing its foothold in the competitive urban towns as well. Informatics Limited created a niche for itself in the telecommunication industry. Micromax ventured into the telecommunication industry with an end-to-end solution of Fixed Wireless Devices and Wireless Data Cards. of fixed wireless-powering desired products, the company forayed into one of the most predominant genres of telecommunication – Mobile handsets. Since then Micromax has received commendable response for its unique and interesting handsets.
?With young enthusiasts as its anchor, Micromax
?In the year 2008, after delivering upon the technology
?Innovation, Cost-Effective, Credible and an Insightful
R&D, have now become synonymous to Micromax in
3/1/13
?In 2008 Micromax ventured into the
mobile handset market
?The brand wanted to create a base
before taking on the large players
?GO-TO- MARKET STRATEGY--Micromax
concentrated on the rural market first.
?Micromax launched its first phone in the
rural market with a very unique USP- 30 days battery standby time
3/1/13
SUCCESS OF X1i
?Company to go aggressively into
the market
? Tapping the rural market is not
an easy task.
?There is severe logistics pressure
in servicing these markets
?Establish DISTRIBUTION
NETWORK- 34 super distributors, 450 distributors and around 55,000 retailers. 3/1/13
?Micromax has a lot of interesting and thoughtful
products to its credit on their versatile product portfolio. It was the first to introduce:
?1. Handsets with 30 days battery backup ?2. Handsets with Dual SIM / Dual Standby ?3. Handsets Switching Networks (GSM - CDMA) ?4. Aspirational Qwerty Keypad Handsets ?5. Operator Branded 3G Handsets ?6. OMH CDMA Handsets, etc.
3/1/13
DISTRIBUTION STRATEGY
?Micromax managed to make dealers pay in
advance by offering them more margins. It offered higher margins of 15 % margin, which is higher than the industry average of 6-10%.
?Micromax managed this hurdle through
strategy of more margins for advance payment.
3/1/13
?To increase penetration in the Indian telecom
market, Micromax Is bundling with telecom operators such as Aircel.
?For better accessibly and prominence in the
market, Micromax is coming up with 150 experience zones (exclusive stores) across the nation, in addition to ensuring bigger presence at the multi branded stores.
3/1/13
PRODUCT STRATEGY
?Micromax products were towards the lower
end of the pricing spectrum, the brand was focusing on adding more features at a reasonable price .
?The focus was more on value than price. ?A clear differentiation was a significant factor
3/1/13 that
aided the significant growth of micromax
?The company in their website claims to have
invested heavily in the product development.
?The brand boast of launching many firsts in
the market PRECISELY for this reason.
Besides the focus on product development, Micromax has invested heavily in brand building.
3/1/13
MICROMAX and Cricket
?The brand was one of the big spenders in the latest
edition of IPL IPL.
?Micromax has centered much of its brand building
exercise around cricket.
?The company believes that cricket promotions will
prove to be a great platform to reach out to the audience and give the brand an opportunity to bond with the youth.
?With the cricket fever rising and cricket fans anxious
3/1/13
for more action by the Indian squad, Micromax has formulated an innovative branding tactic to strengthen the brand image and develop creative brand integrations.
?Micromax is also planning an innovative activation
across the cricket season, breaking away from the vanilla branding that we are all used to. Activation will see some intelligent product placements, on ground- on air integrated product coverage and mentions, crowd branding and the brand will be visible on a digital platform on the ground throughout, adding to the technology stand point. Africa VS India ODI series in 2010. suggests it was the chief sponsor.
?It was one of the principal sponsors of the South ?In the just concluded ‘Micromax cup’ as the name ?Most of the brand promotion for Macromax has
3/1/13
been centered around products till last year
BRAND BUILDING INITIATIVES
? Micromax, has shelled out a whopping Rs 100 crore for
its brand building initiative. It is targeting a wide base of new and existing subscribers, using a 360 degree media approach via multiple platforms.
? It has allotted Rs 60 crore for ATL (above the line)
advertising, of which print will take the maximum share, followed by TV and radio. Another Rs 40 crore will go into the BTL (below-the-line) initiatives. The communication has been launched in the beginning of 2010.
? In 2009, the campaign was mostly product centric but
this year, the efforts will be to create a brand that is aspired by all. Consumers have already experienced 3/1/13 Micromax as a handset. Now, it is time for the
Micromax Segmentation Strategy
? There are three segments of handsets that it works
with:
? For the premium category, which is solely comprised of
QWERTY keypad handsets, the focus will still remain 'easy chatting'. In fact, Micromax will tie up with social networking sites such as Facebook to ensure better connectivity and continuous communication for its QWERTY keypad model users.
? In the multimedia segment, it will offer innovation and
variety in its features such as radio, MP3 player and 3/1/13 camera. Here, it plans to launch co branded phone
? At the entry level, Micromax will play the 'variety' card.
Today, at the entry level, not much variety is available. Handsets of all companies, available at Rs 1,2001,300, look equally unimpressive. Micromax plan to change the face of the entry level phones while keeping the price more or less same.
3/1/13
?On basis of ‘Target Audience’ Micromax has
divided its target audience into three categories - the rural sector, the urban youth and the high profile users. Micromax is solely targeting the rural segment right now - and why not? After all, it promises the maximum number of consumers and all they demand from a handset is regular features at an affordable price. 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, 3/1/13
3/1/13
BRAND'S PROMOTIONS
Campaigns Micromax Facebook ad Gravity, MTV , (Co-Branded phones) EEZPad.
3/1/13
PHONY JOURNEY
?30-DAY BATTERY PHONES ?April 2008: Rs 2,249; Now: Rs 1,999 The X1i,
Micromax’s first phone, had a battery that could give 17 hours of talk time and go 30 days on a single charge.
?DUAL-SIM PHONES ?July 2008: Rs 1,999-12,999 For those who want two
numbers but one handset.
?PHONE-CUM-REMOTE 3/1/13
3/1/13
MARKET SHARE
?Micromax is currently the third-largest GSM
vendor in the Indian market,
?A share of 8.1%, perhaps just a few marks
behind Samsung
?Samsung at the second position has 10.4%
control, as per market reports.
3/1/13
?Micromax has been selling anywhere around a
million handsets every month, for the past year, and as company officials state, it has earned about Rs.15 billion in revenues during the past year.
?The Indian handset market is estimated to
have sold about 130 million handsets units in the last calendar year alone, which implies, that if we were to consider just the sales during the past 12 months, Micromax has a 3/1/13
Strategies in a nutshell
?Corporate Level strategies:
?Expansion strategy ?Resource allocation: heavy investment in R&D,
lately heavy investment in brand building.
?Wide portfolio catering to diverse segments.
?Business Level strategies:
?Unique Fusion of Cost Leadership and Product
Differentiation.
?Following a Frontal and Flanking attack strategy.
3/1/13
?Products are mostly in the embryonic and
?Functional Level Strategies
?Product Innovation ?Rapid channel expansion ?Targeting widest customer base ( Rural + Youth) ?360 Degree advertising ?Innovative advertising ?Effective and accurate segmentation ?Excellent Supply Chain management
(Delivering value to each channel member).
3/1/13
?Also targeting niches such as exclusive
Women’s phones
?We can see from the history that they were
already into the wireless devices industry so they had a prior ‘Learning’ about the mobile industry.
?They have built a solid base for a full scale
assault on the market leader.
3/1/13
THANK YOU
3/1/13
doc_621311458.pptx