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CASE ANALYSIS OFMICROMAX

GAURAV SHARMA

GINNY AGARWAL

HIMANSHU BANSAL

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INTRODUCTION

This case is about Micromaxs growth strategy.

How the company had emerged and how it had reached to such a po

Various strategies adapted by the company.

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

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Founder of Micromax : Rajesh Agrawal, Sumeet Arora, Rahul

Sharma, Vikas Jain

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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, telev

Revenue was US $ 626 million in 2012.

In 1991 Micromax focused on reselling and distribution of hardware equip

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Contd

Became IT software company in 2000working on embedded platform

In 2008, entered mobile handset business.

24% market share in the smartphone segment in India as per the CM

report for April 2013.

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STARTUP STAGE

Mobile handset maker is already the countrys second-largest mobile

seller.

When company started its operation in telecommunication products

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

Micromax began speaking to local customers to identify their needs t

strengthen their conviction.

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INTRODUCTION OF PRODUC

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.

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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

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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 percenusually given away as discounts. The remaining 1 percent cannot sust

business.

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PRODUCTSTRATEGY

Wide range of phones with different features and thus offering varie

customers.

Able to successfully identify the needs of customers and design prod

appropriately.

Invested heavily in the product development.

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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 pri

the urban market.

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PROMOTION STRATEGY

To increase visibility in the urban markets.

High promotional expenses for:

Hoardings and banners

Advertising online Sponsoring in the social cause events

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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.

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MARKET SHARE

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CURRENT POSITION

Entered the mobile manufacturing in 2008.

On Tuesday entered into the home entertainment space with LED televisihome theatre systems.

Basic motiveTo 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 Samsungcent and Apples 12.3 per cent.

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Contd

The third largest player with 8 per cent share and 12th largest manuf

Micromax topped the micro vendor rankings, shipping four million h

worldwide and sales of 1.5 million handsets p.m.

Funbook has tie-up for education related digital content from Pearso

Everonn and Vriti.

For featured phones and tablets, the company has a three-tier distrib

set-up, and for smartphones and LED TVs, its a two tier model.

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SWOT ANALYSIS

STRENGTHS WEAKNESSES

Innovative products and features

Low cost of production

Effective promotion campaigns

Weak brand image in urban areas

Perception of low-quality Chinese

OPPORTUNITIES THREATS

Increase penetration in urban market

Entry into international markets

Increasing competition from local

international players

Replication of business model by

competitors