Micromax STRATEGY
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Micromax is an Indian electronics company that began as a software company in 1999. It entered the mobile handset business in 2008 and became the largest Indian mobile company by 2010. Micromax has over 1900 employees across India and internationally. While it currently dominates the rural mobile market, Micromax's strategy is to improve visibility and brand awareness in urban markets through innovative products at affordable prices and expansion into related product categories like tablets and LED TVs.
Micromax STRATEGY
- 2. Micromax is an Indian consumer electronics company . It is a private limited company. 12th largest mobile handset manufacturer in the World. Micromax started it’s journey as a software company since 1999, located in Gurgaon, Haryana, India. In 2008, it entered mobile handset business. It has become The largest Indian domestic mobile handsets company in 2010.
- 3. Micromax is one of the leading Indian Telecom Company.23 domestic offices across the country and international offices in Hong Kong, it has around 1900 employees. Revenue US$ 626 million (2012)
- 4. Rahul sharma Sumeet Arora Vikash jain Rajesh agarwal
- 5. (CEO) – Deepak Mehrotra (CMO) – Shubhodip pal (Smart phone business head) – Ajay Sharma (Feature phone business head) – Khaja muzafarullah (International business head) – Amit mathur
- 6. Tablets LED televisions mobiles Data card
- 7. 30 DAYS, battery backup mobile, add Micromax states,
- 8. Micromax sells around 1.3 million mobiles handsets every month, with a presence in more than 500 districts through 100,000 retail outlets in India.
- 9. o Launched funbook on April 3, 2012, an android 4.0 ice cream sandwich tablet with 7- inch capacitive display. o Micromax has launched the Canvas Tab P650 Android tablet. Making it the first tablet in the canvas series. o Tablet market with a share of 18.4 per cent, ahead of veterans Samsung and Apple.
- 10. Micromax come in television market with the launch of LED TV 24-inch to 55-inch range. Micromax has set up a one lakh square feet manufacturing. It has production capacity of 2,000 LED per day. Led TV of 24 inch from micromax market price ₹ 15,990 and full HD smart TV 55 inch ₹ 1,29,990 .
- 11. 1. Low cost of production. 2. handsets up to 30 days long battery backup in mobile handset. 3. It has provide full HD/3D display in TV and mobile. 4. Aspirational qwerty keypad handset. 5. Operating 3G handsets in segment.
- 12. Micromax has still not been able to establish itself well in the urban market. Micromax has a manufacturing unit set up in china which has sink the name of micromax. Total turnover is less than Samsung. It has much not good brand value the customer mind as it’s competitors have.
- 13. Since Micromax has not yet entered urban market, it has a very huge opportunity to establish itself in urban market. Micromax has capacity to make production at global stage. it establishes itself in the domestic market. It should entered in laptop/computer market.
- 14. Micromax faces a tough competition from these players Samsung, Sony etc. Micromax’s business model has been replicated by many new players which again pose a threat to Micromax. Customer assumes it’s product as china product.
- 15. Currently Micromax is dominating the rural market. They are basically catering to the need of the customers of the rural area. It’s market strategy is to improve the visibility in the urban markets also building brand image. low-cost QWERTY phones, universal remote control and gaming phones. it is coming out with new models, It’s Strategy focuses on innovating, designing and using the latest technologies to develop products at affordable prices.
- 16. Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a suitable competitive advantages. marketing strategy is to improve the visibility in the urban markets by improving awareness of customers for our products and also building brand image.
- 17. On the product side, Micromax has a wide range of phones with different features and thus offering variety to the customers. Micromax has a lot of interesting and thoughtful products. Micromax has been able to successfully identify the needs of customers and design products appropriately. Micromax believes that consumers in India have unique preferences with respect to mobile handsets such as long battery life, dual GSM capability, low-cost QWERTY phones, universal remote control and gaming phones. Also, the company has invested heavily in the product development as of now to capture market share in urban
- 18. It’s at the core of Micromax to serve the customers by proving them with lower cost, value for money products. Thus Micromax will adopt penetration pricing in the urban market because placing our product at a lower cost will serve our purpose and make the customer rethink before buying other competitors product such as Nokia, Samsung, etc which are at a high price segment. So with a lower price we will be providing with almost same functionality which in turn will help us in gaining a better share in the urban market as they also want lower prices phones with higher functionalities which has been proved by our marketing survey.
- 19. The motive of our strategy is to increase our visibility in the urban markets. So making people aware about Micromax will incur high promotional expenses and these will be in terms of: I. Hoardings and banners II. Advertising online III. Sponsoring in the social cause events
- 20. Under it we will have two models: Firstly, we have business to consumer (B2C) model which follows this hierarchy:
- 21. Secondly, we have business to business (B2B) model in which we will have corporate selling through corporate tie ups with major corporate and will be providing them at a less than market price as we will be saving on the commission to dealers and distributors. Thus, helping us to reach our target market of professional
- 22. •Providing better after sales services through increased warranty of 2 years, thereby making the customer think of reliability of our product. •Exchange offers will also be a major tool for customer retention as the customer will be getting additional discount on the new Micromax phone he buys by exchanging the older one. Thus this will help create a chain of transactions with customers.
- 23. 1. Focus on urban market specially youth 18-25 years 2. As smart phone is going to be the future of mobile market, Micromax has started focusing on smart phones as well as tablets 3. On capturing major share of urban youth market, for next two years Micromax needs to focus on urban market at large 4. Focus on expand to international markets and enter into neighboring Indian countries, south African countries etc. 5. Micromax aims to be a company with a double digit market share by 2014,
- 25. on March 31, 2013, the Micromax logged in a record Rs 3,168 crore in sales revenues for the financial year 2012-13 Rahul sharma threw in a fresh target - Rs 2,000 crore revenues in a quarter, in FY 2013-14.
- 26. A combination of innovation, strategy planning, good marketing and low pricing has made this Indian company a household name today. And if rumors are to be believed, micromax now plans to pan out in the foriegn markets