Example of Micromax launching a new phone
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Micromax is an Indian electronics company that manufactures mobile phones, tablets, and televisions. It became the second largest smartphone company in India after starting as a distributor of computer hardware in 1991. Seeing an opportunity in the growing rural Indian market that international brands were not addressing, Micromax launched its first basic phone with a 30-day battery life for Rs. 2150. Its Canvas series of smartphones accelerated its growth, and revenue increased over 132% from 2009 to 2010 as it continued launching innovative new products at low prices to appeal to rural and budget customers. It is now the 12th largest mobile manufacturer globally.
Example of Micromax launching a new phone
- 3. Introduction • Micromax is an Indian Consumer Electronics Company manufacturing mobile phones, tablet computers, 3G Data cards and LED Televisions. • It has 23 offices across India and an international office in Hong Kong. • It is headquartered in Gurgaon, Haryana.
- 4. Micromax entering Telecom business! • From 1991,company was mainly involved in business of distributing computer hardware. • Hardware industry losing its attractiveness by 2007. • Telecom giants were not addressing the unique needs and challenges of Indian customers.
- 6. Building a strong customer base! • International players were not addressing the needs of rural people. • Focusing on the needs of low end segment as India has a vast rural market. • First phone launched had a 30 day long battery Life.
- 8. Innovations • First Long Battery Life Phone with 30 days battery backup- X1i Rs.2150/- • First Dual SIM Dual mode active Phone (GSM+CDMA)- GC700 Rs.2100/- • First Gaming Device- G4 (with motion sensor)- Rs.6000/- • First Women’s Line of Devices- Q55 Rs.2750/- • First Universal Remote Control Phone- X235 Rs.2230/- • First phone with built-in blue tooth- X450 Rs.1990/-
- 9. Accelerating Growth! • Canvas series of products have accelerated the growth and improved the brand image drastically. • Canvas 2 became one of the best value offerings. • Micromax is the 2nd largest smartphone company in India now. • 12th largest mobile handset manufacturer in the World.
- 10. INCREMENT IN REVENUE • We have started our Canvas Smartphone series 5 years back and now it is sold at a pace of 25 handsets per minute • We are now the 2nd leading brand in the Indian mobile handset market. • Our handset sales have grown by 132.43% from 1.11 million units in the quarter ended June 30, 2009 to 2.58 million units in the quarter ended March 31, 2010.
- 11. INCREMENT IN REVENUE CONTD.. • MICROMAX posted ever increasing revenue of INR 3186 crore for the F.Y. 2012-13. Micromax stands at second position in Indian market, with a consolidated market share of 22 % • 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. • Handset Sales in Asia Pacific to rise to 822.6 million in 2013
- 12. REASONS FOR THE INCREMENT • Product focus & understanding customer preferences • Branding not only company but phone series & models • Product Quality, Price & performance • Technology shift and adaptation to the changing trends • Overall change in spending of the young population
- 13. SOME LOOPHOLES • Display and brightness level • Magnetic sensor • Rear Camera & Front Camera • OS and Future firmware updates • Low internal memory • Brand recognition • Durability
- 14. REVENUE OF THE PAST YEARS 0 500 1000 1500 2000 2500 3000 3500 F.Y. 2009-10 F.Y. 2010-11 F.Y. 2011-12 F.Y. 2012-13 R S I N C R O R E S REVENUES REVENUES
- 15. SWOT ANALYSIS Strengths Innovative & Featured products. Low selling price of products. Effective promotion campaign. Launching of new products frequently.
- 16. SWOT ANALYSIS (CONTD..) Weakness Weak brand image in urban areas. Perception of low-quality Chinese brand. Poor after sales service . Lack of quality in products. Limited market share. User interface – not so tech-savvy. Opportunities Entry into international markets. Low–end phones has become more competitive. Increasing growth rate selling of Smartphones. Entering into unrelated diversification.
- 17. SWOT ANALYSIS (CONTD..) Threats High competition from local & international players. Threats from low price well known brands. Replication of business model by competitors.
- 19. FEATURES : General Features : • Sales Package : Handset, Battery, Charger, Hands free, USB Cable, Warranty Card, User Manual. • Model Name : Micromax Canvas Delight A79 • Input Type : Full Touch • Handset Colour : Black Camera : • Primary : 8 MP • Secondary : 2 MP • Flash : LED Flash • Video Recording : 30 fps • HD Recording : Yes • Auto Focus : Yes Memory : • Phonebook : Yes, practically unlimited entries • RAM : 1 GB • Internal memory : 8 GB • Card Slot : Micro SD, expandable 32 GB
- 20. FEATURES (Contd)… Multimedia and Entertainment : • Music Player : MP3 • Video Player : MP4,H.264,3GP • FM Radio : Yes • Games : Yes • Messaging : Yes • MMS : Yes Platform : • OS : Android 4.4.2 • Processor Speed : 1.4 GHz • Processor Type : Quad Core Display : • Type : Touch Screen • Screen Size : 5 Inches SIM : • SIM Type : GSM • Dual SIM : Yes, GSM + GSM
- 21. FEATURES (Contd)… Internet and Connectivity : • Email/Browser : Yes • Bluetooth : Yes , v 4.0 • 2G Network Band : GSM -850,900,1800 • 3G/ Wi Fi /USB/GPS : Yes • Audio Jack : 3.5 mm • Maps : Google maps Battery : • Battery type : 2500 mAh Sounds : • Alert types : MP3 • Loudspeaker : Yes Phone size : • Dimensions : 143.6 x 72.2 x 8.3 mm Other Features : • Accelerometer, Proximity, Ambient Light Sensor, Incoming Call Guard, Mobile Tracker, Multi Language Support Warranty : • 1 year manufacturing warranty
- 23. Marketing Strategy • Improve the visibility in urban market • Improving awareness of customers for our products • Building brand image
- 24. Pricing Strategy • Core of micromax lower cost value the money • Penetration Pricing in urban market • Placing our product at lower cost make customer to rethink before buying other product
- 25. Promotion • Hoarding and Banner out side college, corporate place and in mall • Advertising online on social network, TV, Radios • After sales service increased warranty 6 months to 1 year. • Exchange Schemes like discount of 5% to 10%
- 26. Place Strategy • Place our product at popular mobile store e.g. the mobile store, reliance digital, croma • We will tie up with local distributors for easy availability • Online selling of our product
- 27. COMPETITORS Micromax knows that there are many established brands in mobile phone’s industry Nokia, Samsung, LG and several other manufactures. Some major competitors and their strategies and strengths are identified as below: NOKIA • Nokia is the leader in the mobile phone industry in India (32%). • Nokia world’s largest producer and manufacturer of cell phones as well as has the largest distribution network around the world; • dominates the world cellular industry because it has the Strong Research & Development facilities • It has very good financial position, higher return on equity (ROE), return on assets (ROA) and net profit margins (NPM)
- 28. COMPETITORS CONTD….. SAMSUNG • Strategies of Samsung : BETTER, FASTER, CHEAPER • Low production cost • Most Competitive player in the industry products at nominal due to its rising scale and integrated operations as it makes chips and screens for most of its mobile phones in-house. • Its is toughest competitor as it target low income group by providing quality pl rates. APPLE • Stylish and innovative phones of apples are driving crazy to its users. • Apple is aggressively entering into Indian market with its amazing iPhone series. • Apple is leading innovator in mobile device technology • Strong Marketing and advertising teams
- 29. COMPETITORS CONTD….. • Strong Financial performance ($10,000,000,000, gross profit margin 43.9% and no debt) • Justifies its price OTHER DOMESTIC PLAYERS Other players like Karbon, Spice, Lava, etc have more or less same market strategy. CHINESE MANUFACTURERS Some of the Chinese manufactures have already entered the Indian market. These manufacturers have priced their mobiles very low. So these manufacturers are expected to grow as with the demand.