Executive Summary

Micromax has entered into handset market in 2008 and within 6 years it has
become the second largest manufacture in India. In this period it has focused
mainly on rural market and has become the leader in the same. Now they have
started to expand to the international market.
This plan incorporates innovative strategies that will utilize opportunities and
address weakness as outlined in the situation analysis. Micromax is planning to
launch an IPO of 2.15 crore shares to raise around Rs 2270 million.

CHAPTER 1
INTRODUCTION OF MICROMAX
Company Profile
Journey of a home grown brand
Micromax started as an IT software company in the year 2000 working on embedded platforms.
By 2008, it entered mobile handset business and by 2010 became the largest Indian domestic
mobile handsets company. This transformation was steered by four friends who divided
responsibilities on functional lines, which havent changed since: Rajesh Agarwal, 47, Managing
Director, Rahul Sharma, 37, Executive Director, Vikas Jain, 37, Business Director.
Through its emphasis on adapting to the changing market dynamics, introducing feature-rich
phones and smartphones that are innovative and unique, Micromax has today become a brand to
reckon with.
Today, Micromax has presence across India and global presence in Bangladesh, Nepal, Sri-Lanka.

Corporate Profile
Micromax Mobiles is one of the leading mobile companies in the World today. According to
Strategy Analytics Global Handset vendor market share report, it is the 12th largest mobile brand
in the World with a global market share of 1% and close to 8% market share in India. With indepth understanding of rapidly changing consumer preferences coupled with the use of advanced
technologies, Micromax has been able to differentiate itself from the competitors through
innovation and design.
It took some 6 years for this new company Indian company to enter the domestic Smartphone
market and win this area with its great-selling devices. The company, Micromax has been
occupying the second position in the top Smartphone sellers in India since last year and is all set
to make a rocking start into the next year, 2014.
In less than a decade of existence in the Indian markets this company was able to take the battle
on with the tech biggies. Samsung, Nokia, Apple and others with tons of experience and loads of
smart gadgets have been for a run for their market share. These companies also introduced
buyback schemes on their premium and budget products this year. But due to its cheaper products
Micromax had no worries as far as its products were concerned.

The brand took on the leaders in the category with specific products that addressed different
customer needs. The company has focused their efforts towards creating life-enhancing mobile
phone solutions and wireless technologies that cater to the increasingly evolving needs of mobile
users in India. Micromax aims to be a billion dollar company with a significant double digit
market share by 2015.

Micromax founders:
Rajesh Agrawal

: Handles Company Finances

Sumeet Arora

: Chief Technology Officer

Vikas Jain

: Handles Alliances with Other Companies

Rahul Sharma

: Risk Taker with the Big Ideas

Change in Company Logo

Micromax unveiled its new punch logo. The new logo was selected from list of logos submitted
by the participants in creative hunt to revamp logo contest, in association with Talent house India.
The new logo was revealed at the Micromax Asia Cup 2012, during the India vs. Pakistan match
on Sunday, March 18, 2012.
The contest targeted the design community across the virtual world and students from over 150
colleges and design schools. The contest ran for a span of 2 months registered over 2500 entries
by more than 1500 participants from across the globe. Out of the entries received, Eric Atkins of
USA was announced as the winner of the contest.
The winner of the online contest was rewarded with a MacBook Pro and recognition on the
Companys website. The entire Micromax branding was revamped

Old Logo
New Logo

Recent

Achievements
3

The success of any Smartphone maker is a direct proportional to the number of brands it has
created for its products. Micromax is planning to launch an IPO of 2.15 crore shares to raise
around Rs 2270 million.
Micromax, according to IDC, has a 4.1 percent market share in India and is now valued at over
$1 billion. M Financial, Citigroup, Edelweiss and Nomura are the book running lead managers to
the issue.
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.

COMPETITORS
4

Micromax mobile manufacturer is putting up some tough competition for big brands like
Samsung, Nokia and Sony as the latest numbers from the International Data Corporation (IDC)
show.
The Q2 numbers for 2013 are out and what is noticeable is that Samsung, which in Q1 of 2013
had a market share of 32 percent, is facing some serious competition from home grown vendors
such as Micromax. Samsung is still number one in the Indian smartphone market but its share has
fallen to 26 percent.
Samsung is the biggest challenger to Micromax with nearly 22 percent market share. (the
company had 19 percent market share in Q1) Micromax also shipped 2 million devices this
quarter and its Canvas range has done well to boost the companys volume share.

Samsung
5

Samsung was formed in 1938 by Lee Byung-chull as a trading company based in Su-dong. The
small company started as a grocery, trading goods produced in and around the city as well as its
own noodles. The company grew and soon expanded to Seoul in 1947 but left once the Korean
War broke out. After the war, Lee expanded in to textiles and built the largest woollen mill in
Korea.
The successful diversification became a growth strategy for Samsung, which rapidly expanded in
to the insurance, securities, and retail business.

Lava
LAVA International Ltd is one of the fastest growing mobile handset companies in India.
Established in 2009, Lava has emerged as a dominant player in the market; having consolidated
its position amongst the top 3 Indian brands in slightly more than 3 years of its market presence.
With "Create Possibilities" as its guiding principle, LAVA has embarked on an ambitious journey
of empowering every human with quality innovative products.
LAVA has a wide product portfolio that encompasses tablets, feature phones and smart phones
having various models in bar and touch form factor at multiple price points to suit all categories
of consumers. LAVA's basket of brands includes ETAB series of tablets, IRIS series of Android
based smartphones, and Discover series of Internet experience touch phones, Spark series of
premium bar phones and ARC & KKT series of feature rich budget phones.

Nokia
A wired and wireless telecommunications company, Nokia India is a pioneer of cellular network
in the country. It manufactures a wide range of mobile devices and provides people with
experiences in music, navigation, video, television, imaging, games and business mobility
through these devices. It handles research and development, network infrastructure businesses
and company handsets. Nokia has its manufacturing unit in Chennai.
Nokia Chennai is one of Nokias biggest facilities, its also big on sustainability. In 2010 it
received the Golden Peacock Award for its high standards of environment management. And its
highly active in the community with projects ranging from a local library programmer to village
regeneration projects.

BRAND AMBASSADORS
6

Hugh Jack man

Hollywood superstar Hugh Jack man has been chosen over a Bollywood star as the brand ambassador of
Indian mobile handset brand Micromax. He says he is a "huge lover" of India.
Jack man is known for films like "Les Miserable", "The Wolverine" and "Prisoners".
His association with Micromax will start with its new Smartphone Canvas Turbo, which will be launched
in India soon

Akshay Kumar

Interestingly, while the Hugh Jack man is being signed, were seeing parallel ads by Akshay Kumar
promoting the recently launched Bolt A67 and Bolt.
These ads are running in conjunction with his movie Boss, so that these devices are rightly targeted at
that kind of audience.
But, this is not the first time; Micromax has roped Akshay Kumar for its ads. Back in 2010, Micromax
launched a campaign with Akshay Kumar to showcase not just its products, but its mantra of Nothing
like Anything. The setting of the ad showed how various Devices from the company can be helpful in
any kind of situation.

Kalki Koechlin

The new TVC of Micromax Mobiles M2 music handset featuring Koechlin shows her using her phone to
get together with her boyfriend in a movie theatre. The ads catch line is "Micromax M2: looks like a
music player, works like a phone." Prior to this, Koechlin has also featured in the Coke ad with Imran
Khan.
Micromax Mobiles already has Akshay Kumar and Twinkle Khanna as its brand ambassadors

Twinkle Khanna

Twinkle Khanna, who had taken a sabbatical from the tinsel town, was back. This time round, she was
seen in a commercial for Micromax Bling Mobile. It is the same brand of cell phones endorsed by
Twinkle's hubby dearest Akshay Kumar.

CHAPTER 2
7

OBJECTIVES & METHODOLOGY

Marketing Strategy OF Micromax Industries

Objective & Scope of Study:
Every time business organization that comes into contact with customers, they develop a
perception in the mind of the customers. Today every organization needs to know the perception
in the mind of the customers, as the market is highly competitive. In order to gain the mind share
of the customers along with the market share certain strategies are required. Especially in the
mobile sector as there are many competitors, so to leave a positive impact on the customers,
provide them best services to them. To gain the advantage over the competitors.
Objective of the Project

Overview of the Micromax Company

Reputation of the company in market
Consumer Perception towards the brand
Competitors in the market

Hypothesis:
Marketing strategies help develop winning product and gain competitive advantage In Mobile
sector Marketing Strategies play a very important role to gain the consumers and their
confidence.

METHODOLOGY
3.1 Research Design:
8

A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
Research in a common parlance is a search for knowledge. Research is an art of
scientific and systematic investigation. Thus research comprises defining and
redefining problems, formulating hypothesis or suggested solutions; collecting,
organizing and evaluating data, making deductions and reaching conclusions.
Research methodology is the arrangement of condition for collection and analysis
of data in a manner that aims to combine relevance to the research purpose with
economy in procedure. Research Methodology is the conceptual structure within
which research is conducted. It constitutes the blueprint for the collection
measurement and analysis of the data.

Types of research used:

Descriptive Research:
In the study descriptive research design has been used. As descriptive research
design is the description of state of affairs, as it exists at present. In this type of
research the researcher has no control over the variables; he can only report what
has happened or what is happening
Descriptive research designs are those design which are concerned with describing
the characteristics of particular individual or of the group. In descriptive and
diagnostic study the researcher must be able to define clearly what he wants to
measure and must find adequate method for measuring it.
Sources of Data:

The sources of collection and analysis to be used are those data (a) that have already been
assembled and recorded; and (b) that still requires assembling and recording. The former
kind of data is called Primary Data while the later kind of data is called Secondary
Data.

TYPES OF DATA

PRIMRY DATA

I.

SECONDARY DATA

Primary Data:
Primary data is the information which is received by the researcher from the actual field of
research. The data in the given study are obtained by means of questionnaires. In some fields
primary data are collected through interview and observation methods. The observation method,
for collecting primary data, may be both participant and nonparticipant. Such data are known as
primary data. The primary source information is collected through Internet, Direct observation,
Questionnaires, Schedule and Interviews methods.

II.

Secondary Data:
Secondary data are the information which is obtained directly. The researcher does not obtain
them himself or directly. Such data are generally collected form published and unpublished
material. Secondary data gathered from informations collected from the individuals and
institutions through personal diaries, letters and survey documents etc. There are various
sources through which secondary data is collected such as Biographies, Diaries, Public Records,
Published Data, Journals and Magazines and Newspapers.

This research project totally focuses on the Secondary Data. The secondary data for the given study is
collected through the Reference Book mentioned along with various websites including the official website
of the Micromax.
In this study data have been taken from various secondary sources like:

Internet
Books
Magazines
Newspapers
Journal

Innovations

First Long Battery Life Phone with 30 days battery backup

X1i Marathon Battery phone with 30 days standby time & 17 days Talk time
10

First Dual SIM Dual mode active Phone (GSM+CDMA)

Micromax GC700 is the first GSM + CDMA Mobile phone

First Gaming Device

G4 Gemmulation phone with motion sensor gaming like Wi-Fi

First Womens Line of Devices

Q55 Bling phone- First womens phone

First Universal Remote Control Phone

X235 With Universal Remote Control for TV, DVD, AC in your phone

First phone with built-in blue tooth

Micromax X450 Van Gogh A stylish phone that integrates a detachable Bluetooth
headset in its sleek design

First Superphone with Gesture Control

Created a new category called Superfone with Gesture Control, powered with
1GHz dual core NVIDIA Tegra 2 Processor

CHAPTER 3
MARKETING STRATEGY OF MICROMAX
Introduction
What is marketing?
The activities of a company associated with buying and selling a product or service. It includes
advertising, selling and delivering products to people. People who work in marketing departments
of companies try to get the attention of target audiences by using slogans, packaging design,
11

celebrity endorsements and general media exposure. The 4 'Ps' of marketing are product, place,
price and promotion.
What is Marketing Strategy?
There are many marketing strategies. The great thing about this is that there is no one way to
achieve success. An organization's strategy that combines all of its marketing goals into one
comprehensive plan. A good marketing strategy should be drawn from market research and focus
on the right product mix in order to achieve the maximum profit potential and sustain the
business.
A strategy is a long-term plan to achieve certain objectives. A marketing strategy is therefore a
marketing plan designed to achieve marketing objectives. For example, marketing objective may
relate to becoming the market leader by delighting customers. The strategic plan therefore is the
detailed planning involving marketing research, and then developing a marketing mix to delight
customers. Every organization needs to have clear marketing objectives, and the major route to
achieving organizational goals will depend on strategy. It is important, therefore, to be clear about
the difference between strategy and tactics.
These terms originate from military use (military strategy before and during a military campaign
is the general policy overview of how to defeat the enemy). Developing a strategy involves
establishing clear aims and objectives around which the framework for a policy is created.
Having established its strategy, an organization can then work out its day-to-day tools and tactics
to meet the objectives. Marketing can thus be seen as the process of developing and implementing
a strategy to plan and coordinate ways of identifying, anticipating and satisfying consumer
demands, in such a way as to make profits. It is this strategic planning process that lies at the
heart of marketing.
A formal approach to this customer-focused marketing is known as SIVA (Solution, Information,
Value, and Access). This system is basically the four Ps renamed and reworded to provide a
customer focus. The SIVA Model provides a demand/customer-centric alternative to the wellknown 4Ps supply side model (product, price, placement, promotion) of marketing management.

Marketing Mix
The Marketing mix is a set of four decisions which need to be taken before launching any new
product. These variables are also known as the 4 Ps of marketing. These four variables help the
firm in making strategic decisions necessary for the smooth running of any product/organization.
12

4Ps of Marketing
Product Solution
Promotion Information
Price Value
Place (Distribution) Access

Product
The first thing

you need, if you want to start a

business, is a

product. Therefore Product is also the

first variable in
the first decisions
marketing plan. A product

the marketing mix. Product decisions are

you need to take before making any
can be divided into three parts. The core product, the

augmented product and the tertiary product.

A product can be either a tangible good or an intangible service that fulfils a need or want of
consumers. Whether you sell custom pallets and wood products or provide luxury
13

accommodations, its imperative that you have a clear grasp of exactly what your product is and
what makes it unique before you can successfully market it.
Price
Pricing of a product depends on a lot of different variables and hence it is constantly updated.
Major consideration in pricing is the costing of the product, the advertising and marketing
expenses, any price fluctuations in the market, distribution costs etc. Many of these factors can
change separately. Thus the pricing has to be such that it can bear the brunt of changes for a
certain period of time. However, if all these variables change, then the pricing of a product has to
be increased and decreased accordingly. Along with the above factors, there are also other things
which have to be taken in consideration when deciding on a pricing strategy.
Competition can be the best example. Similarly, pricing also affects the targeting and positioning
of a product. Pricing is used for sales promotions in the form of trade discounts. Thus based on
these factors there are several pricing strategies, one of which is implemented for the marketing
mix.
Place
Place refers to the distribution channel of a product. If a product is a consumer product, it needs
to be available as far and wide as possible. On the other hand, if the product is a Premium
consumer product, it will be available only in select stores. Similarly, if the product is a business
product, you need a team who interacts with businesses and makes the product available to them.
Thus the place where the product is distributed depends on the product and pricing decisions, as
well as any STP decisions taken by a firm.
Distribution has a huge affect on the profitability of a product. Consider a FMCG company
which has national distribution for its product. An increase in petrol rates by 10 Rs will in fact
bring about drastic changes in the profitability of the company. Thus supply chain and logistics
decisions are considered as very important costing decisions of the firm. The firm needs to have a
full proof logistics and supply chain plan for its distribution.
Promotion
Promotions decide the segmentation targeting and positioning of the product. The right kind of
promotions affects all the other three variables The product, price and place. If the promotions
are effective, you might have to increase distribution points, you might get to increase the price
because of the rising brand equity of the product, and the profitability might support you in
launching even more products. However, the budget required for extensive promotions is also
14

high. Promotions are considered as marketing expenses and the same needs to be taken in
consideration while deciding the costing of the product.
Promotion looks at the many ways marketing agencies disseminate relevant product
information to consumers and differentiate a particular product or service. Promotion includes
elements like: advertising, public relations, social media marketing, email marketing, search
engine marketing, video marketing and more. Each touch point must be supported by a wellpositioned brand to truly maximize return on investment.

Principles of Marketing Strategy

1. Clarify Business Objectives
2. Use Innovation Teams to Identify
3. Decouple Strategy and Innovation
4. Build Open Assets in the Marketplace

Strategic Discipline
Marketing is now accepted as a strategic discipline or general management function and
in this respect must care for the health of a business in the future - especially against competitive
influences. This is because it is increasingly realized that although making a profit is important,
an organization should also develop its market share and search for brand leadership as well. So
the marketer must monitor the profitability of the business and attempt to anticipate the likely
trends. Successful marketers must therefore be concerned with every aspect of their business,
including future project and other areas of their industry. Successful companies plan five or ten
15

years and more in advance and often know as much about their competition as they know about
themselves. Marketing is not just a series of business-related functions, but more wide-reaching
than this. It is a business philosophy designed to develop an attitude of mind which should be
shared by everyone in an organization and is often enhanced by both frequent and open
communication. Developing such an attitude of mind reduces the likelihood of crisis and
contributes to the development of the overall future of an enterprise at both strategic and tactical
levels.
At the heart of marketing lies the degree to which an organization becomes marketingorientated. The more committed a company is to its marketing activities; the more able it will be
to pursue its corporate objectives and develop and retain customers. Every business in existence
relies upon its customers for survival, and those who best meet customer needs will always
survive a period of change.
The marketing function is therefore an essential ingredient of corporate strategy, and this
marketing focus should be communicated through marketing planning into all aspects of business
activity

Clarify Business Objectives

Theres so much going on in the marketing arena today, everybody is struggling to keep up. At
the same time, every marketing professional feels pressure to be progressive and actively
integrate emerging media into their marketing program. However, the mark of a good marketing
strategy is not how many gadgets and neologisms are crammed into it, but how effectively it
achieves worthy goals.
Therefore, how you define your intent will have a profound impact on whether you succeed or
fail. Unfortunately, there is a tendency for marketers to try to create a one size fits all approach
16

for a portfolio of brands or, alternatively, to want to create complicated models to formulate
marketing objectives.
Some brands are not widely known, others are have trouble converting awareness to sales and
still others need to encourage consumer advocacy.

Use Innovation Teams to Identify Emerging Opportunities

Marketing executives are busy people. They need to actively monitor the marketplace, identify
business opportunities, collaborate with product people and run promotional campaigns. It is
unreasonable to expect them to keep up with the vast array of emerging technology and tactics,
especially since most of it wont pan out anyway.
Therefore, it is essential to have a team dedicated to identifying emerging opportunities, meeting
with start-ups and running test-and- learn programs to evaluate their true potential. Of course,
most of these will fail, but the few winners will more than make up for the losers.
Once an emerging opportunity has performed successfully in a pilot program, it can then be
scaled up and become integrated into the normal strategic process as a viable tactic to achieve an
awareness, sales or advocacy objective.
Decouple Strategy and Innovation
Unfortunately, in many organizations, strategy and innovation are often grouped together because
they are both perceived as things that smart people do. Consequently, when firms approach
innovation, they tend to put their best people on it, those who have shown a knack for getting
results.
Thats why, all too often, innovation teams are populated by senior executives. Because
innovation is considered crucial to the future of the enterprise (and also due to the institutional
clout of the senior executives) they also tend to have ample resources at their disposal. They are
set up to succeed. Failure, all too often, isnt an option.
However, strategy is fundamentally different from innovation. As noted above, a good strategy is
one that achieves specific objectives. The truth is that innovation is a messy business. So failure
must be an option, which is why technologically focused venture capital firms expect the vast
majority of their investments to fail.

17

Build Open Assets in the Marketplace

The primary focus of marketing promotion used to be to create compelling advertising campaigns
that would get the consumers attention and drive awareness. Once potential customers were
aware of the product, direct sales and retail promotions could then close the deal.
Today, effective promotional campaigns are less likely to lead to a sale and more likely to result
in an Internet search, where consumers behaviour can be tracked and then retargeted by
competitors. Simply building awareness and walking away is more likely to enrich your
competition than yourself.

Newer, cheaper and better products

The Companys first bet was on feature loaded feature phones. The aim was Nokia phones that
were the best-selling phones in India during 2008-2011.This was the time when Samsung was
introducing Smartphones that was priced at premium price points. One of the earliest phones
Micromax introduced was X1i that promised 30 days battery backup. After this it introduced the
first dual- sim dual-standby phone, the X600 Gravity. Then there was a phone for gamers, a
phone with built-in Bluetooth and the journey took to new heights by the year 2012.

18

Within years the company became the largest Indian domestic mobile handsets company. On
March 31, 2010, the company registered a market share of 6.24 per cent for the quarter; this was
0.59 per cent in September 2008. This was 19.7 percent (smartphones) in 2013

Leave no segment
In a market where there were almost no gadgets aimed at ladies, the company took the courage
to introduce a phone aimed at ladies only.
The company launched Q55 and A55 in its Bling series specially for women, without the fear of
being branded as sexiest. In which Twinkle Khanna appeared. These two Smartphones were
studded with Swarovski crystals and enjoyed very good response in the market

Competitive
The company knew very well that it will be difficult for it to make a mark in the urban market. It
aimed at the rural and semi-urban areas. Our approach was to first attack the rural markets, and
then come to the towns said Rahul Sharma in an interview to Business Standard.
The strategy was a success. When Samsung was releasing products at Rs. 10000, Micromax was
ready with a Rs.2000/ Rs. 3000 product. After Nokia silently made way out of the Smartphone
battle Micromax geared with a focus on the urban markets.

Brand building
Brand building was one of the major tasks it had in hand. It went with Akshay Kumar, the
popular khiladi of the Bollywood who has a huge fan following in the rural and sub-urban
areas. It promoted its image as an innovator and pioneer in bringing amazing nothing-like-anything phones to Indian market.

19

In 2012 it went for an International look. It started with TVCs that featured out-of-India
landscapes and users. By the end of the year it signed Hugh Jackman as its brand Ambassador
for Canvas phones. The first phone launched with the Wolverine star was the Canvas Turbo.
Low-cost premium products
It was selling feature phones and was a known brand in Smartphone segment also. It was time
for the company to take its bigger challenge. In year 2011 it shook up its Chinese partners for
better phones that it can call its flagships. It named them Canvas, and introduces more than a
dozen of new entries into the year throughout 2013.
Grabbing the Market
The Company needed to find a suitable peg to shake the Indian urban market while also gaining
on sales figures. With Samsung as the only company selling 5-inch Galaxy S3 (4.8-inch) and a
bigger Note (5.3-inch) in India at premium prices, Micromax zeroed-in on the 5-inch segment.
The target it laid for it was making a 5-inch device affordable to everyone who wants one.
After the success of Canvas A110 in 2012, in January 2013 it launched Canvas HD, followed by
a series of Canvas phones in the price range of Rs. 6500 to Rs. 20000. While Canvas HD got a
720 x 1280 pixels display resolution to the market, the Canvas Viva was an affordable 5- incher.
Product Transformation
In mid of 2013 it progressed a bit with software. Its phone usually ran stock Android. But with
the Canvas 4 A240, it not only went for a metal mid-body but also slight change in the software
to bring premium features to the phone. No doubt it went premium in the Canvas range. With
the Canvas Turbo it continued to cater to this premium segment.

Customization
The Company have realized that in the next year there will be cheaper phones that will move
from 4-core processors to 8-core powerhouses. It is the first domestic company that was
rumoured to launch an octa- core phone in the market next year.
20

New products
Nokia is back in smartphone market with low cost Lumia, attractive buyback schemes and Asha
phones. It is the only phone in Indian market with the Windows OS (leaving Samsung Omnia
performing well in sales) Microsoft and Nokia has already entered into a partnership and Nokia
will go aggressive on 5-inch segment in 2014.
Keeping this in view Micromax has already revealed that it will bring a Windows OS phone this
year and a 4G capable phone in 2014 for the Indian market.

CHAPTER 4
BENEFITS OF MARKETING STRATEGIES
Saves time and money
Time and money are important primary factors of success in the business industry. As you will
see below, a marketing strategy helps owners to define a brand so that they dont spend loads of
productivity time marketing a product to the wrong people. A marketing plan provides a blue
print for business owners to follow with hopes to bring in more money than they put out.
Provides a plan
21

Marketing plan acts as a guide as the business progresses, so owners can see where their time and
money is going. It provides a look into the future goals of the company, and gives step-by-step
directions on how to achieve those goals.
Defines the brand
This is a very important element of the marketing plan because without it, a business wouldnt
last long. They would be exhausted. Defining a brand means knowing what you are selling, and to
whom youre selling it to. In other words, you must also define your audience. Without knowing
who to market to, business owners can lose valuable time. Marketing strategies help with issues
such as these, and plans out these things.

CHAPTER 5
TARGET MARKETS

Fashion
savy
women

Youth

Target

Professionals

22

Targeting women
On the occasion of Mothers Day, Micromax announced the launch of its latest Android phone
targeted at women. Micromax has started pre-booking of Bling2, which is 3G and GPS enabled,
has features like Swarovski keys, 3 megapixel camera, and 32GB external memory. Bling 2
features Android 2.2, 2.8 inch display, 3MP camera, 32GB micro SD card support and Wi-Fi
along with the usual GPS, Bluetooth and 3.5 mm headset jack.
Target Youth
As smart phones are future of telecommunication industry, Micromax has started focusing on it
strongly. After the launch of first Android Phone before 3 months ago, Micromax is ready to
launch another Android Phone Micromax A70 in India. New Smartphone will run on Android 2.2
Froyo. As the speculation is that Micromax A70 will come at affordable price and with 3G as
well. Micromax A70 will come in the market and it will be in the competition with Google Nexus
and HTC Desire smart phones. Micromax Android Mobile Micromax A70 will come with the
advanced features like 3.2-inch HVGA capacitive touch screen display, 5 megapixel autofocus
camera & front is a VGA camera for video call, Wi-Fi.3.

Target Professionals
Professionals keep two phones in todays life:
One for Professional use
One for Personal use
Micromax will come up with Dual SIM mobile phones. Micromax has to focus on this target to
cater need A single phone with Business and Private use with separate numbers and bills.
Besides this, Micromax has to get into the Tablet Market to increase the market share.

23

CHAPTER 6
MAJOR STRATEGIC MOVES (JOINT VENTURES)

With BSNL
Apart from the mobile handset market, Micromax was recently in the news for its alliance with
BSNL. State-owned Bharat Sanchar Nigam Ltd. entered into an agreement with Micromax for
sale and distribution of 3G data card to its subscribers. As per the agreement, Micromax would
sell and distribute 3G data cards in the form of USB to the BSNL subscriber in various cities.

24

With MTNL
In another venture, Micromax launched the Indias first operator branded 3G mobile phone H360,
in association with MTNL. The H360,pre-loaded with applications to enable video calls, mobile
TV, social networking, wireless business solutions through web browsing and other Internetbased services.
TA associates
The success of Micromax prompted US private equity group TA Associates to buy less than
20% of the firm for around $45 million (Rs210 crore today) in December, valuing it above $225
million and indicating confidence in its growth potential

CHAPTER 7
PROBLEM FACED BY MICROMAX
Sustenance and Innovation

As new players are entering the market, competition is becoming stiffer. To sustain in
the market one has to be always come up with innovative mobiles. For that lot of money have
to be incurred in R&D process. Micromax had to face the same difficulty. Thats why company
has planned to raise money from stock market by way of IPO. Company Micromax IPO,
Forthcoming IPO 2011Indias biggest domestic mobile handset seller Micromax In formats is
expected to go public early in 2011. The company filed its prospectus late last month. The
company is expecting to raise 426 crore through the offer. The company will use 50 percent of
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the IPO proceeds to setup a handset manufacturing plant in India while the rest would be spent
in areas such as marketing and expansion.

Micromax, according to IDC, has an 8.1 percent market share in India and is now valued at
over $1 billion. JM Financial, Citigroup, Edelweiss and Nomura are the book running lead
managers to the issue. For the year ended March 2010, Micromax had sales of 1,600 crore on
selling over 70 lakh handsets, with a net profit of 200crore, as against revenue and profit of
350 crore and 35crore respectively for the previous year.

CHAPTER 8
SWOT ANALYSIS OF MICROMAX
Strengths
Micromax is No.1 in terms of market share in terms of mobiles, it captured Samsung market share by
superior innovation in Smart Phones Micromax is financially strong and stable company. The production
process and process of inventory management are consistent with industrial standards. The brand value
increased by 80% in last three years The Company enjoys wide range of product portfolio which includes
Mobiles, Tablets, Television, Data Card and other accessories. Micromax holds significant market share
in most of the product categories. Micromax is best in terms of technology. It was first to introduce dualsim mobile phone, first motion sensor phone, first universal remote phone. Micromax took advantage of

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growing economy of Asian market by setting up manufacturing plant in India there by reducing logistics
and supply chain
Weakness
Micromax needs improvement in defining the vision, mission and strategic corporate objective.
Marketing management needs improvement in all the facts of marketing HRM also needs improvement
in all the facts of human resource management Chinese products focus on economies of scale and dump
into Indian market for lesser cost Online stores which sell a wide range of products are giving better
deals as they dont incur cost in distribution channel.
Opportunity
Micromax is reasonable equipped to take care of technological changes Micromax is maintaining good
international relationship with countries and local Micromax has future plans for customized phones in
the Indian market. The population is growing so as the demand for mobile phone demand is also
growing. The financial position is strong and there is a scope of entering into unrelated diversification
Threats
Regulatory issues and safeguarding of property rights was main threats in legislation The competitor like
Nokia are focused only in one segment Threats from Chinese Products Retail chain like Bigbazar sell
consumer electronics in low cost strategy which is procured in bulks from foreign market.

CHAPTER 9

Conclusion

Micromax is gaining ground at a tremendous rate in the domestic as well as global mobile market.
Micromax showing good sign of grabbing every possible opportunity at its hand (e.g. IPL 2010)
`
If the strategies are implemented effectively, it may clinch up the ladder, to become the leader in
domestic market incoming few years.

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CHAPTER 10
BIBLIOGRAPHY

www.micromax.com
www.studymode.com
www.forbes.com

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