Executive Summary: Micromax has entered into handset

market in 2008 and within 3 years it has become the third largest handset manufacturer in India. In this period it has focused mainly on rural market and has become a leader in the same. !ow it wants to expand its presence within India and then on international le"el. #his plan incorporates inno"ati"e strategies that will utili$e opportunities and address weaknesses as outlined in the %ituation &nalysis. #he plan addresses following marketing challenges: '. #o position in the mind of customers as their preferred brand. 2. #o concentrate more on potential urban and youth market. 3. #o make a global presence in the market %ituation &nalysis. (. &naly$ing current situation through () framewo

Market Situation: Micromax are on the target market. #he si$e

growth of the market are shown for se"eral past years and by market and geographical segment. *ata on customer needs perception buying+ beha"ior trends are also presented. #he market accounts for approximately ,(-0 million or 20 percent of the market. #he primary buyers are middle+ income consumers ages '8 to 2- who want to listen to good music but do not want to in"est in expensi"e the market e.uipment.

Product Situation: /ere the sales

prices contribution margins and

profits are shown for se"eral past years in table from. 0ow ' in #able '.' shows the total industry sales in units growing at '0 percent annually until 2001 when demand declined slightly. 0ow 2 shows Micromax market share ho"ering around - percent although it reached 2 percent in 2008. 0ow 3 shows the a"erage price for Micromax stereos rising about '3 percent per year except the last year when it rose 2 percent. 0ow ( show "ariable costs materials labor and energy rising each year. 0ow - shows that the gross contribution margin per unit+the difference between price 30ow+34 and unit "ariable cost 30ow +(4 rose the first few years and remained at ,'50 latest years. 0ow 5 and 2 show sales "olume in units and in dollars and row 8 shows the total gross contribution margin which rose until the latest year when it fell. 0ow 1 shows that o"erhead remained constant during 2005 and 2002 and increase to a high le"el during 2008 and 2001 owing to an increase in manufacturing capacity. 0ow '0shows net contribution margin+that is gross contribution margin less o"erhead. 0ow '' '2 and '3 show marketing expenditures on ad"ertising and promotion sales force and distribution and marketing research. 6inally row '( shows net operating profit after marketing expenses. #he picture is one of increasing profits until 2001 when they fell to about one third of the 2008 le"el. )learly Micromax needs to find a for 20'0 that will restore healthy growth in sales and profits to the product line.

%7. !8 0'. 02.

9ariable Industry sales in units )ompany market share &"erage price per unit , 9ariable cost per unit , :ross contribution margin per unit , %ales "olume in units %ales re"enue ,

0ows

2005 2' 00 000 0.0-

2002 2 3'0 000 0.0-

2008 2 -(' 000 0.02

2001 2 21- '00 0.0-

03. 0(. 0-. 05. 02.

223 '00 3+( '.2 3.5 '23 '0- 000 28 55- 000

300 '10 ''0 ''- -00 3( 5-0 000

330 '10 '(0 '22 820 -8 512 '00

350 200 '50 '31 2--0 3'' 8 00 22 350 8 00 3' 00 00 0 '1 250 8 00 '' 00 00 0 '2 00 00 0 ' 00 000 '5 850 8 00

08. 01. '0. ''. '2. '3. '(.

:ross contribution margin3 ,4 8"erhead 3,4 !et contribution margin 3,4 &d"ertising and promotion3,4 %ales force and distribution3,4 Marketing research3,4 !et operating profit3,4

-.5

'8 '5- 000 20 00 000

'2 20- 000 20 00 000 '0 20- 000 - 00 000 2 00 000 8- 000 1 (20 000

2( 10' 800 2- 30 000 22 32' 800 ''00 000 '0 00 000 2 00 000 20 02' 800

8+1

'5 '5- 000 '0 00 000 8 00 000 ' -0 000

'0+ ''+ '2+'3

'( 2'- 000

#able 3'.'

Competitive Situation: #he ma;or competitors are identified and

described internal of si$e goals market share product .uality marketing strategies and other characteristics that are needed to understand their intentions and beha"ior. Micromax ma;or competitors in the market situation system the market are !okia %amsungs %ymphony %pice and i phone. <ach competitor has a specific strategy and niche in the market. '. !okia for example offers six models co"ering the whole price range sells primarily in department stores and discount stores and is a hea"y ad"ertising spender. It plans to dominate the market through product proliferation and price discounting. 2. %&M%=!: > %amsung has emerged as a "ery healthy and prominent competitor in the market. %amsung is backed with the high .uality and professional team in the 0?* area. Inno"ati"e products specially smart phones and :alaxy series from %amsung are ruling in the market. %o it is expected that with the increasing demand of mobile phones %amsung will try to retain and increase its market share. 3. &@@7< > &pple is one of the most ma;or competitors in this industry. %lick stylish and inno"ati"e phones of &pple are dri"ing cra$y to its users. &pple is aggressi"ely entering Indian market with its ama$ing i@hone series.

Distribution Situation: Introducing exchange schemes where a

buyer can bring in his old mobile phone and get an additional discount of -A + '0A on new Micromax mobile phones which would help us in gaining market share of our competitors. @lace %trategy Be can place our products in some popular mobile phone retail stores such as %angeetha #he Mobile %tore reliance digital )roma etc. Be will tie up with local distributors for easy a"ailability for those who donCt "isit popular retail stores or find it easy to purchase it from nearby stores. Be can also sell our phones online by collaborating with 6uture Da$aar which is an initiati"e by Dig Da$aar etc. *istribution strategy =nder it we will ha"e two models: 6irstly we ha"e business to consumer 3D2)4 model which follows this hierarchy: Manufacturer *istributor *ealer 0etailer )ustomer E %o under it we will 8ffer higher margins to dealers up to '- A which is higher than the industry a"erage of 5+'0A at present E 8ffering its distributors a higher margin of -A as compared to 2A of !okia and others. Impro"ed incenti"es to dealers and distributors will help us in penetrating deeper into the urban markets. #hus making it easily a"ailable so as where"er a customer goes to buy mobile phone he will also be introduced and offered Micromax phones or he will ha"e a look of it. %econdly we ha"e business to business 3D2D4 model in which we will ha"e corporate selling through corporate tie ups with ma;or corporate and will be pro"iding them at a less than market price as we will be sa"ing on the commission to dealers and distributors. #hus helping us to reach our target market of

professional. Manufacturer )orporate %elling )ustomer &c.uisition and 0etention @ro"iding better after sales ser"ices through increased warranty of 2 years thereby making the customer think of reliability of our product. <xchange offers will also be a ma;or tool for customer retention as the customer will begetting additional discount on the new Micromax phone he buys by exchanging the older one. #hus this will help create a chain of transactions with customers.