CASE ANALYSIS OF MICROMAX

GAURAV SHARMA GINNY AGARWAL HIMANSHU BANSAL

INTRODUCTION

This case is about Micromaxs growth strategy. How the company had emerged and how it had reached to such a position?

Various strategies adapted by the company.

What is the outcome of their efforts by adopting the strategies?

Founder of Micromax : Rajesh Agrawal, Sumeet Arora, Rahul Sharma, Vikas Jain

HISTORY

Indian consumer electronics company located in Gurgaon. Founders - Rahul Sharma, Rajesh Agarwal, Sumeet Arora, Vikas Jain.

Founded in 1991.
Products are Mobile phone, smartphone, tablet computers, datacards, televisions. Revenue was US $ 626 million in 2012. In 1991 Micromax focused on reselling and distribution of hardware equipments.

Contd
Became IT software company in 2000working on embedded platforms. In 2008, entered mobile handset business. 24% market share in the smartphone segment in India as per the CMR
report for April 2013.

STARTUP STAGE
Mobile handset maker is already the countrys second-largest mobile phone
seller.

When company started its operation in telecommunication products, the

country was missing a player who can cater to Indian tastes and flavours.

Micromax began speaking to local customers to identify their needs to

strengthen their conviction.

INTRODUCTION OF PRODUCT

First mobile phone with a feature that battery lasts for 30 days. Best suited in India because of power deficiency problem. Then introduced various low end segment phones. For urban segment, first phone was bling. For youth the company introduced querty phones. Next era phone are the android phones with dual SIM connectivity.

Leads the tablet market in India.

STRATEGIES ADAPTED

Value for money to customers Low pricing Differentiated products Consumer focused development Strong network of retailers and distributors Division of markets

Management strategies like vendor selection

MARKETING STRATEGY

A 360 Degree advertising . Long battery targeting to rural areas.

It is giving 5% commission to its distributers.

Nokia usually gives a channel margin of 2 percent of which 1 percent is usually given away as discounts. The remaining 1 percent cannot sustain any business.

PRODUCT STRATEGY
Wide range of phones with different features and thus offering variety to the
customers.

Able to successfully identify the needs of customers and design products

appropriately.

Invested heavily in the product development.

PRICING STRATEGY
To serve the customers by proving them with lower cost. Value for money products. Micromax will adopt penetration pricing (selling product at lower prices) in
the urban market.

PROMOTION STRATEGY
To increase visibility in the urban markets. High promotional expenses for:
Hoardings and banners
Advertising online Sponsoring in the social cause events

DISTRIBUTION STRATEGY
Under it company will have two models:
Firstly, company have business to consumer (B2C) model.

Secondly, company have business to business (B2B) model.

MARKET SHARE

CURRENT POSITION
Entered the mobile manufacturing in 2008. On Tuesday entered into the home entertainment space with LED televisions and
home theatre systems.

Basic motive To touch the lives of consumers.

Presence in nine countries. Focusing on the domestic market.

Micromax has 18.4 per cent of the tablet market in India against Samsungs 13.3 per cent and Apples 12.3 per cent.

Contd
The third largest player with 8 per cent share and 12th largest manufacturer. Micromax topped the micro vendor rankings, shipping four million handsets
worldwide and sales of 1.5 million handsets p.m.

Funbook has tie-up for education related digital content from Pearson,
Everonn and Vriti.

For featured phones and tablets, the company has a three-tier distribution
set-up, and for smartphones and LED TVs, its a two tier model.

SWOT ANALYSIS
STRENGTHS
Innovative products and features Low cost of production Effective promotion campaigns OPPORTUNITIES Increase penetration in urban market Entry into international markets

WEAKNESSES
Weak brand image in urban areas Perception of low-quality Chinese brand

THREATS Increasing competition from local and international players Replication of business model by competitors