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We make u Uniq

Statistics
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GDP

$1.367 trillion (2010) (nominal; 11th) $3.862 trillion (2010) (PPP; 4th) 6.7% (2008/2009) $1,124 (2010) (nominal; 139th) $3,176 (2010) (PPP; 128th) agriculture (17.5%), industry (20%), services (62.6%) (2009 est.) 37.2% (2010); 410 million (2010) 467 million (2009 est.) telecommunications, textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, information technology

GDP growth GDP per capita GDP by sector Population below poverty line Labour force Main industries

Source: CIA World Fact

According to IBEF
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In recent years, the Indian telecom industry has witnessed phenomenal growth

India achieved the distinction of having the world's lowest call rates (23 US cents), the fastest sale of million mobile phones (1 week), the world's cheapest mobile handset (USD 19) and the world's most affordable colour phone (USD 31)

The Indian telecom market generated revenues of approximately USD 20 billion in 200708

It registered a CAGR of approximately 22 percent from 200203 to 200708

Indian Telecom Industry Facts


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Total telecom subscribers 706.36 million (Mobiles-670.6 milllion)

Tele density 59.63 percent


Expected to reach total subscriber base of 1.159 Billion by the end of 2013 and become the world's largest market, from the currently fastest growing. (i.e., more than one phone for every household)

ARPU for GSM Rs. 239 (2009) Number of new mobile subscribers added every month 10 million plus

Handset market USD 4,750 million


Source:

Why Study Telecom Sector ???


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Indian Telecom Industry A Lucrative Option Mobile telecom services provide an unprecedented growth opportunity for companies

Mobile services have led to a spectacular growth in the Indian telecom industry

Currently, 15 players are active in this segment Expected 1billion subscriber base (2013) and increasing users every month

GSM surpasses CDMA in number of additions to subscriber base


Indian telecom handset market booming along with mobile services industry

SCANNING THE MACRO


ENVIRONMENT
Y-Cell Styling GSM Mobile Now Start

India has evolved into one of the world's leading technology centers. India is among the three most attractive destinations in the world.
Craig Barrett Intel Corporation

India has among the highest returns on foreign investment.

US Department of Commerce

A T Kearney FDI Confidence Index 2005

By 2032, India will be among the three largest economies in the world.

BRIC Report, Goldman Sachs

The Indian market has two core advantages - an increasing presence of multinationals and an upswing in the IT exports. India is a developed country as far as intellectual capital is concerned.

We came to India for the costs, stayed for the quality and are now investing for innovation.

Travyn Rhall, ACNielsen

- Dan Scheinman, Cisco System Inc. as told to Business Week, August 2005

Jack Welch General Electric

Y-Cell Styling

GSM Mobile

Now Start

Analysis
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Industry which has come from nowhere and gone on to become huge
The emergence of strong local players in the Handset market Handset Market Share Nokia: 36.3% (PY 54%) Samsung : 14% (PY 8%) MicroMax, Spice and Karbonn together constitute : 33% LG : 5% Other Smaller Players 13-14% : (PY 3-4%)

Analysis (contd)
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On an average, about 10 million new users added per month,

making India the worlds fastest growing wireless services market

Among the countries offering the highest rates of return on investment

The rural telecom equipment market is also open to large


investments, large untapped potential in Indias rural markets20% (approx) teledensity in rural markets as compared to 100+ in urban market

Increasing mobile subscriber numbers and level of teledensity offers large opportunities to Indian handsets companies

The government promoting telecom manufacturing by providing tax

Source: IDC

10 Growth in the higher income categories of Indias population has created an affluent section of society, which has significant level of purchasing power Increasing per capita income and large population moving into middle class has led to high level of consumeris m in India
Annual Household Income (in USD) 2 9 17 74 285 710 20 33 120

Population (million)

Rich (Above 115,000) High Income (57,000 115,000) Consuming class (23,000 57,000) Working class (10,200 23,000) Needy (Below 10,200)

9 48 221 726

404
613

2001-02

2005-06

2009-10(E)
* In PPP terms

700 600 500

Per Capita Income 583 519 461 393

651

USD

400 300 200 100 0

Increasing per capita income coupled with an emerging middle class has provided the necessary impetus to consumerism in India

2002-03

2003-04

2004-05

2005-06

2006-07

DEMOGRAPHIC
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India has a huge youth population More than half of the Indian population is below the age of 25 years The size of economically active segment will continue to grow for decades

Total Population: around 1.2 billion, out of which more than 300 million are in the middle class segment

The YOUTH Highly trendy and High on show-off


Educational Environment: Improving and literate population is on high

Economical Factors
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Indias LARGE middle class, a potential customer group Hike in Average Salary by almost 14% to 15%, which

is the highest in the world

Growing income of Middle Class Resulting in higher purchasing power

Sustained GDP growth of more than 8% is projected to


reach a two digit figure very soon Economists predict that by 2020, India will be among

Social Factors
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Households are estimated to grow from a 300m in 2005 to

400m by 2020

Improving lifestyles, increasing international exposure and increasing awareness among the customers

Increasing trend of accessories (and Mobile phones) among


youngsters Indias Transition Phase Females today are out of curtain

and are much more aware about trends, style and modern
features

Female Segment in Mobile handset industry A gap unseen and ignored by other (every) players

Source: CIA World Fact Bo

Technological Factors
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Higher acceptance for wireless services


Indian customers are embracing mobile technology in a big way (Millions of subscribers added every month) They prefer wireless services compared to wire-line services The wire-line subscriber base growth rate is negligible

In fact, many customers are returning their wire-line phones to their service providers as mobile

provides a more attractive and competitive solution

Some of the positive impacts of this trend are as follows

According to a study,18 percent of mobile users are willing to change their handsets every year to newer models with more features, which is good news for the handset vendors

The telecom industry in 2012 will be very different from the one we know today
embracing Internet services and starting to talk the language of Web 2.0 which will enable the carriers to thrive well into the future"

Technological Factors (Contd)


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3G Technology In India

3G or Third Generation technology is a convergence of various Second Generation telecommunication systems

The technology is intended for SMARTPHONES - multimedia cell phones Video broadcasting and other e-commerce services such as, stock transactions and e-

learning will now be made possible much faster It offers 3 Mbps speed for downloading,
which is very high as compared to that of the 2G technology

The 3G technology provides for internet surfing, downloading, e-mail attachment downloading, audio-video conferencing, fax services and many other broadband applications

Other Factors

GSM: Global System for Mobile amd CDMA: Code Division Multiple Access
Zeroth Generation(OG) The First Generation(1G) 2G handset 3G handset & Smart phones Up Next 4G and 5G

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STRENGTHS:
One of the cheapest and the fastest growing market in India Handset market has grown tremendously coupled with the growth of telecom in India, We need to just capitalise on that (O) Experience of using the internet on mobile is getting more agreeable and it is getting easier to pay for things by mobile, especially small ticket items Higher proportion of teledensity (100+ in urban areas) shows people use more than one mobile phone, hence shows the growing need for handsets

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WEAKNESSES:

Large number of new players (Such as Karbonn, MicroMaxx, Lava and many more) are flooding the market

Market is actually getting more fragmented


About 20% (roughly) market is covered by the unorganised Chinese players (T) No one to cater to Female needs (O)(Gap)

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OPPURTUNITIES:

With major players (like Nokia) losing their hold in the market, it is high time for the other players to establish themselves in the market
Reduction in fixed line connections substituted with growing wireless connections handset player could exploit on the growing need for Mobiles Use of internet in busy working environment coupled with growing need for mobility of internet again provide a big opportunity for all players in the market Targeting (Creating) female Segment (Gap)

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THREATS:
It continues to get more difficult for companies to provide a consistent experience across different players and the ever expanding variety of handsets and personal devices on the market Unorganised market of Chinese Mobiles posing great threat to other players in the market

Flooded handset market has raised the level of competition


Though the player like Nokia has lost a tremendous share in the market but it can come back into the competition at any given point of time (due to the size of financial backup that it had behind him), and kick out other small players that have just jumped in to the competition

PORTERS FIVE FORCE MODEL


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The threat from the new entrant

A huge opportunity for a new entrant to capitalize on this biggest potential segment in the Indian

Government is also promoting the telecom sector, inviting new players into the market in a driving a growth of handset industry as well Growing telecom segment coupled with changing government regulations provide a huge opportunity and less threat for new entrants

PORTERS FIVE FORCE MODEL


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The threat from the substitutes

No substitutes available in the market

FixedLine phones are there but would require huge


change

May compete in terms of call rates, but when it comes to SMSs, MMSs and other Value added services, Mobile industry is the clear winner

PORTERS FIVE FORCE MODEL


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Bargaining power of the suppliers

The demand for handsets is on a high, coupled with the innovation and technology that the suppliers are coming out

with

But hardly a cause of concern for the handsets manufacturer as there are number of suppliers all over the globe

Outsourcing is a good option to look at when it come to supply of products or raw-material

PORTERS FIVE FORCE MODEL


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Among the competitors rivalry

There is a huge rivalry among different players in the market

Each player is coming up with something new and


innovative everyday next day

No cause for concern looking at the growing industry and a growing population (1.2 Billion currently), there is a huge potential for every player

PORTERS FIVE FORCE MODEL


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Bargaining power of the buyers


Great demand in the market Still buyers will have their say due to the existence or

availability of other options in the market

Power lies in both hands as seller have a huge market (population) in front of them, also on the other hand buyers

have a various options (Number of players in market)


available to them

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Nokia and Sony Ericsson are two leading mobile manufacturing companies operating worldwide N-Series mobile handsets incorporate fun features like high resolution cameras (2-3.2 mega pixel cameras), impressive music players, 3G connectivity, Bluetooth, EDGE, GPRS, Symbian operating system, ample memory space (internal + external through memory cards) and much more But the recent trends show Nokia has already reached maturity and is nearing its Decline Stage Samsung rejuvenating itself coming up with new touch series at competitive prices 28 new (Small) players entered into the Indian market

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On the other hand, the entire image of Sony Ericsson as a quality mobile phone maker has been revamped by the W-Series mobile phones And the recent entry of iPhone in India has increased the competition for Nokia Commenting on Apples new product offering, Olli-Pekka Kallasvuo, president and CEO, Nokia Corporation, said: iPhone is going to have an impact on Nokias business in India Nokia coming down and other companies re-establishing Y-Cell can enter and take over the Opportunity

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Branding :
Nokia built its brand at both ends of the market, with high-end multimedia handsets for upscale buyers and low-priced phones for emerging countries Y-Cells main focus would be on Indian Youth, who are sophisticated by nature, but do not have any source of income (depends on pocket money by parents) Priced between Rs. 5K to Rs. 25k

Branding Decisions :
Nokia follows Umbrella as well as Company brand name strategy. Example for Umbrella branding- N Series and E Series

Y-Cell Styling

GSM Mobile

Now Start

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Today mobile handsets are looked upon as a converged devices, handling multiple functions and entertainment being the most important among them Demand top-end features all at affordable prices Integrated digital camera, music player and stereo FM radio are main among them (driving especially low-end phones) Features like Games, Calculator, Reminder\ Scheduler \ Organizer, ringtones etc. have become hygiene features & are must for any handset today (None of these features are differentiator anymore)

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New models are being launched at regular intervals Activity takes place at the high end making the older models cheaper and shifting it to the mid-segment However, the low-end handset users, who make up a huge number, dont get access to such features as the prices of such phones do not fall below a certain level It raises the dissatisfaction level among the existing users, as they are unable to avail these high-end features The handset vendors need to address these expectations of the large mass market to be able to entice them towards their products

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A major proportion of the population seemed to prefer Nokia phones due to user-friendly and reliable nature Motorola is looked upon as a fashionable product and moreover is preferred for that only Customers are of highly switching nature in case handsets especially after Nokias down turn Battery life emerges as a major determining feature for the selection of mobile phones Pricing is not a significant selection criteria Opportunity to occupy consumers mind space by communicating its ease of use, BATTERY LIFE & LOOKS

Y-Cell Styling

GSM Mobile

Now Start

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HANDSETS Business series

FEATURES Models with dual SIM technology

TARGET USERS Business people who travel more

Lifestyle series

Models with features like sleek design, good appeal, music player, fm radio, 2 mega pixel camera

Students , Youth ,Teenagers , People preferring stylish models

Multimedia series

Models with features like 8MP AF People who prefer Camera with Smile Shot, Face entertainment features with Tagging, 8GB expandable the mobile. memory, face detection , smile shot ,photo browser etc Feature designed specially for girls. Bright Colors, M-Cam, Cospocks and many more Stylish and trendy females who are sophisticated, always look for something different that suits their personality

S16 Series

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S16 is a completely new Series in the market It would come with completely new and innovative features S16.. i.e., Sweet Sixteen is positioned for girls, hence the name Sweet Sixteen M-Cam is a front camera, Nokia and some other players had this feature but never capitalized on it, we would position this feature as a front mirror or a digital mirror (anyways rarely any one uses this front camera). It would be targeted at sophisticated and fashion conscious females who would definitely try this out. A completely unique feature, Cos-pocks (Cosmetic Pockets). Many phones have some empty space, which they use for different purposes, for example Touch screens have Stylus Pockets. We would have similar pockets, but it would be called Lipstick Pockets (again Targeted towards fashion conscious and sophisticated females). These pockets would carry fashionable cosmetic accessories, which omens would definitely like and could be a great hit and could create a great turnaround in the market.

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Target Market is Urban and Rural area (with main focus on lower segments in Rural India as it is the highly untapped potential market with high purchasing power)
Target Audience is YOUTH of INDIA (Specially females with a view to create a new Female Segment We would attract our target audience through: Price Slim and Stylish looks and features Fashionable and Light Weight Innovative technology hand sets The segmentation strategy of ours is based on Age, Income and Occupation (With special emphasis on the emerging middle class and the youth of India)

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Would highlight ourselves as a Middle and Premium

Segment product (Good battery back up and Signal


connectivity)

Brand for YOUTH of INDIA A unique Style statement for the Fashion conscious and Sophisticated people with special emphasis on young

FEMALES

A brand for those who wants to be differentiated from the society and stand out from the crowd

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Whats in my name ?? (brand name)


Recallable Trendy and Fun

Easy to Pronounce

Catchy

Y-Cell

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Who am i?? (Brand identity)


Bring

excitement to the lives of the customers A brand providing the customers with flavors from all around India A brand which is youthful, fun and colorful The unique shapes in which it comes, which makes it easily recognizable amongst the consumers

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How do I look? (Brand Packaging)


The

packaging (looks) is going to be very attractive with variant colors and a variety of features and functions Name depiction is very informative and a layman can also associate with it The name is not very traditional and easily relates to Youngistan (youth) of India

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What do I portray? (Brand


Personality)
Innovative
Experimentative

Adventurous

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Brand identity Prism

Outgoing , Fun loving

Relationship

Indian, Different

Culture

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Y-Cell Styling

GSM Mobile

Now Start

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16 Million Colors 62 Carat Lens Meticulously Crafted Swiss-Made Main Bearing Custom-Engineering Tungsten Carbide Coated Gears 700+ Individual Components CrystalTalk Technology Mirror Polish Finish Aluminum Keypad

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Analyzing competitors cost price and offers and Selecting final price Pricing Methods :-- Initially it was VALUE PRICING and now it is GOING RATE PRICING Nokia uses a pricing strategy that best suits the product

Market Penetration- Nokia 1100 Market Skimming- N-95

Hence, The Strategy which was used for N-Series was Market Skimming

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AIDA in Y-Cell
A Attention : attract the attention of the customer. I Interest : raise customer interest by demonstrating features, advantages, and benefits. D Desire : convince customers that they want and desire the product or service and that it will satisfy their needs. A Action : lead customers towards taking action and/or purchasing.

Advertising & Sales Promotion


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We would not stress much on Sales Promotion ad campaigns also have a short shelf life

We would concentrate more on our advertising strategy


i.e., Concentrate on Pull rather than Push strategy (Push and Pull Strategy)

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The advertising strategy humor to sell handsets 360 degree brand building effort to boost the new launch

Focused to position the brand as youth-centric


Crowd sourcing which serves two purposes it engages the end-consumer and the campaign is done at the lowest possible cost

High Decibel Advertising : capture the Share of Noise

through its heavy spending initially (using vague

Public Relations ( PR ) :
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Every Company keep on doing some or the other new events, programmes and publicity, so as to keep up with the brilliant image of the company and also to enhance the brand equity
Y-Cell will also have to do some similar activities to keep pace with the market Direct Marketing : We would promote Direct Sales activities on our official website. Emphasize and use DEMO style of Direct Marketing. Avoid Direct Mail or Telemarketing styles of Direct Marketing.

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Production Unit
Networks Technology

China Finland INDIA

Mobile Devices and Enhancements

Brazil China Finland Great Britain Hungary India Mexico Romania South Korea

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