The Scenario

We are the Business Heads of A cell phone company dealing In premium mobiles You all are the Board members of our Company Task at hand : To introduce a new product in the low price segment and get you all to approve the plan Concern : You all are apprehensive that such a step would affect our companys premium image.

Blueberry-

Entering A New Phase

Presented by: Elizabeth Betsy Joy - 11017 Pankaj Naik - 11037 Ullasa Kumar Jha - 11057

Company Profile

Founded in 1998 by the Mario family in Munich, Germany Established a reputation for providing high end mobiles Headquarters located in Munich Went global in 2002 focusing primarily on huge mobile markets Net worth is $17 billion Listed in Frankfurt Stock Exchange 5th largest mobile phone manufacturer in the world Occupies 14.8% share in global smart phone sales

 Some

Variants

Product Features
Intel Processors Large Memory (32 GB micro SD cards, 1GB flash memory) Long Battery back-up (6 hrs. talk time and 528 hours standby) Qwerty keyboard Push e-mail, text messaging, internet faxing Video conferencing

<Elixir

Frost>

<Verve

Present Scenario of Indian Mobile Industry

India

constitutes approximately 10% of world wide sale of mobile devices Growing influence of local players in the low-end segment Mobile Handset market is expected to show steady growth through 2014 when end user sales surpass 206 million units Despite very high competition, the industry is growing at a very high pace.

Market Distribution of Mobile Industry in India

Blueberry- India

Launched in 2004 Manufacturing unit at Bhubaneswar, Orissa First company to provide smartphones in India Targeted Business professionals and young achievers Second Largest provider of smart phones and high end phones having market share of 27% Competes with Nokia, Samsung, HTC, LG and Apple.

Why low price segment?

To increase market share.(Market penetration) Indian market is very diverse with BOP consumers coexisting with sophisticated consumers(10:1) Low- end mobile industry is rising at a rate of 17% annually Rural areas will fuel growth in the mobile industry according to our consultancy group Deloitte 30-40% mobile users use low-end mobiles Rising trend of people having more than one mobile phones.

Market Structure and Segmentation of Low- End mobiles

Low

end mobiles have price band of approx. Rs 1000 to Rs 3000 This segment contributes about 38% of total Indian mobile device market These phones are generally meant for basic function, meant for people for whom cellphones are just another communication device.

Competitors in India in Regard to Low Price Segment

Nokia Micromax Maxx Lemon Lava Gfive(

Mobiles

Chinese brand)

THE NEW PHASE

Introducing

E-zee
mobiles

Features of E-zee

Long battery back up (12 hrs talk-time and 48 hrs standby) Radio and MP 3 player Attractive coloured panels (target- youth) Mobile Torch 1.3 mp camera GPRS and mobile tracking Easy texting features Water proof, robust and durable

Expected Expenditure

Cost of production : Rs1350 Distributors margin : Rs 99 (5% on sales) Marketing expenses : Rs 100 (5% on sales) Debtors profit : Rs 250 (12.5% on sales) Proposed price of the phone : Rs 1999 Companys profit : Rs 200 (10% on sales) Target sales for first year : 2 million handsets Expected revenue : Rs 4 billion Expected profit : Rs 400 million

Target Customers
First

time mobile users in semi urban and rural areas Senior Citizens Economic Class (BOP) School Students College Students( many of whom maintain two mobiles, one usually being a low end phone) Users needing temporary phones Migrant Workers

Promotional Strategies
Slogans

like Ab bari E-zee ki Hoardings in public areas Promoting through e-choupal Tie-up with service providers like Airtel, Vodafone etc. Radio ads-Cost effective and to reach rural areas Ads in print media and also in television to target urban youth and senior citizens

Addressing the Concern

New brand name - E-zee Provide value for money

Thank you
Disclaimer : This is a hypothetical situation