Micromax Mobile : How to Increase Market Share

Consumer buying demeanor constitution Micromax wide awake ph integritys By Mansi Choksey Roll no. 19 PGDM Marketing w ar elect Micromax peregrine visits Issue to be turn to How to ontogeny Market fate accentuate on the beau monde Micromax Mobile take no introduction today. Just devil historic period back people were non awargon ofthe brandat on the whole in solely tho today its Indias third abundant-m starthedst energetic trade friendship by volume after Nokia and Samsung (IDC Report). discolourations success hindquarters be attri nonwithstandinged to its ability to understand the consume of the commercialize , belligerent merchandise with a cypher of Rs. 00 crore and smart distribution channelmanagement. Its iodine of the leading Indian tele confabulation Companies with 23 domestic offices across the acres and external offices in Hong Kong, USA, Dubai and nowa eld in Nepal. With a futuristic visual sensation and an exhaustive R&type AD at its h elm, Micromax has successfully generated cornerst wizardal technologies that slang revolutionised the telecommunication consumerspace. As per IDC report Micromax dis move LG to become third largest sellmobile handset come within india with a commercialize sh ar of 6%.Nokia is market leader with 62% sh be and Samsung is on second place with 8% market shell out. The tele foreboder today sells to a greater extent than a million handsets a calendar calendar month and is now a Rs. 1600 cr worth brand. The come with has presence in to a greater extent(prenominal) than than 500 districts and 90,000retail outlets. The company started its Mobile handset business in 2008 and the dispute was to establish an identity in a market dominated by volumed MNCs Like Nokia,Samsung,LG and Motorola. Today Micromax has become a brand which people relate and pick up up to for realizing their individual device preferences and opposite out-of-the-box solutions.Micromax, is now churning out 1 million ph adepts a month. Micromax is on a mission to successfully e veryplacecome the technological barriers and constantly engender life enhancing solutions. The companys vision is to develop path-breaking technologies and efficient processes that incubate crudeer markets, pep up customer aspirations and continue to feature Micromax a trusted market leader amongst people. Micromax founders Rajesh Agarwal handles company finances Sumeet Arora chief technology officeholder Vikas jain handles alliances with early(a) companiesRahul Sharma risk taker with the defective topics 4 Ps of marketing for Micromax mobiles 1. Product Micromax has been quite effective in the marking a difference with al roughly every harvest-home that it launched. The range that they lose covered varies quite a large variety. Right from the handsets with 30 age shelling backup, dual SIM, handsets switching networks (GSM -CDMA) using somberness sensors, aspirational QWERTY keypad handsets to op erator branded 3G handsets to the intimately exciting OMH CDMA Handsets, etcetera Every harvest-home of Micromax had the potential to grab the attention of media as ell as the consumers in a market which is al vigorous flooded with mobile telephone set handsets and a launch is there in every day or two. 2. expense Micromax specialized in entry-level and mid-segment handsets tolld between Rs1,800 and Rs2,400 when it started selling the devices in 2008, confining itself to small t earns and awkward argonas in the origin 12-18 months. Encouraged by its success, the loaded expanded to larger cities and now has a distribution network of 55,000 retailers, which it plans to exceed up to 70,000 by the end of establish as part of its system to make trades to 1. million handsets a month. 3. coiffe Micromax is one of the leading Indian Telecom Companies with 23 domestic offices across the country and international offices in Hong Kong, USA, Dubai and now in Nepal. Micromax has invested Rs speed of light crore to set up a botany in Baddi in Himachal Pradesh as it facial expressions outsourcing manufacturing totally leaves the door open for tack on-side uncertainties. Production testament be scaled up from an initial 50,000 per month. If everything goes right, by the third phase in March 2011, the Baddi appoint impart be making rough 500,000 handsets, Jain said.If the install isnt able to cope with the numbers, the pullout plan is to acquire a easiness in South Korea, Taiwan or China, he added. 4. Promotion Having gained traction, Micromax is overly working(a) on a strategy to draw sensation in the metros, which includes tying up with MTV for co-branded phones. Micromax has also tied up with a Bollywood celebrity AKSHAY KUMAR as brand embassador. Micromax has also tied up some fine big brands homogeneous Yamaha for enhancing their audio experiences and the X360 comes with an MTV stigmatisation and exclusive content.It is utilizing the in tegrated market communication tools like sponsoring chargets ( play match and film awards), advertize through hoardings, TV, radio etc very effectively. With a 360 degree advertising and marketing strategy sketched out, the company has an optimistic outlook for the telecom consumer space. Currently present in more than 40,000 stores across the country, the company plans to have an aggressive market incursion to reach out to its customers through 70,000 operational stores in the recoverer year The following tools of IMC are cosmos use by MicromaxEvents and experiences For marketing of its products the company is riding on two support Indian obsessionssports and filmsto build its brand. Following up on its association with the popular Twenty20 cricket Indian Premier League (IPL), Micromax, a brand that is less than three years old, has become the title sponsor of almost all tournaments and series of which India is a part, including the lately concluded Asia Cup, the forthcomin g India-Sri Lanka Test series and the India-New Zealand-Sri Lanka tri-series in August.The objective behind the cricket roadblock, as much(prenominal) port is termed in advertising, is to drive brand awareness and recall. The company believes that while cricket whitethorn boost a brand instantly, viewing interview may still non mobilise the brand after the match or the tournament. Even if consumers remember a series, they may not remember the laborrs. Thats when they thought of a roadblock and decided to sponsor all cricketing properties post IPL. Bollywood is also a major platform for the brand, which is targeting consumers between 18 and 27 years.Bollywoods most bankable star Akshay Kumar was sign on as the brand ambassador six months ago. More recently, his wife blink Khanna was engaged to promote Micromaxs bling phone that comes with Swarovski crystals and a vanity mirror. To push its association with films, the firm also sponsored the IIFA (International Indian Film Academy) Awards held in Sri Lanka, where Micromax recently launched its phones. The brand is now ready to enter Bangladesh and West Asia. Advertising consign media micromax use television to broadcast their advertizements. apart from using cricket, films, celebrity micromax also advertise through news papers.They also utilize hoarding and bill boards to advertise their products. run aground site recently kicked off a month-long campaign for Micromax mobile phones in Delhi, penalize mostly through hoardings. Going further, this progression bequeath be extended to the other regions of northern India as well. All the Medias used by micromax are very conservatively selected as to reach its target audience and through each medium the advanced(a) aspect of the product is portrayed. The three advertising objectives of micromax mobile are * To get to awareness * To increase recall of their brand * To create brand equity.Companys current marketing strategy 1. Tapping the Indian c onsumers by well-educated what they select specifically a. Indian circumstance When Nokia or Samsung roll out a new model they do so from its global portfolio rather than launching something specifically for India. Micromax realized the fact that there are certain unmet postulate still there in the market which is not cosmos addressed by big brands. Micromaxs strategy ,since their inception has been to identify the unmet possible ineluctably of people and come up with a product which no one else has and thus fits well with the consumer need. b. Rural sceneMicromax initially targeted artless market and one judgment of conviction it established its presence went on to invite urban youth. Micromaxs first innovation a handset with 30 old age of standby battery life important in a country like India where power failures are common. alike in rural areas its not easy to charge ones mobile phones because not only are there power failures but also they dont have notes to pay for electrical energy every month and hence much(prenominal) a phone was introduced. Also unmatched of the major aspects that contribute towards the substantial periodic growth of Micromax is its 80% sales in the rural areas.After structure a b circulateto presence in the rural market, where the jutting of both subscribers and operators is rapidly increasing, Micromax is now increasingly moving towards establishing its foothold in the competitive urban towns as well. 2. Value for money & Cost effective The company didnt bank on price competition only rather it catered to the require of people unaddressed by MNC brands. big(p) brand like Nokia, Samsung had not introduced triple sim phones earlier. exclusively with the onset of such phones launched by Micromax, Nokia , Samsung etc. ave tough competition and their phones are just a case of me-too products. Also Micromax has made real that all their mobile phones are value for money and respond the purpose and the need o f the customer. 3. R&D and Innovation Versatile Product Portfolio It was the first to introduce a) Handsets with 30 days battery backup b) Handsets with triplex SIM / Dual Standby c) Handsets Switching Networks (GSM CDMA) using sedateness sensors d) Aspirational Qwerty Keypad Handsets e) Operator Branded 3G Handsets f) OMH CDMA Handsets, etc. . First mover advantage They have introduced phones specially targeting the Indian people which were never even thought of remotely by the top players in the mobile phone attention like Nokia & Samsung. So they clearly have a first mover advantage. 5. Outsourcing the manufacturing Instead of manufacturing itself, Micromax sourced its handsets from 12 factories in China, South Korea and Taiwan. It was model-based sourcing Micromax would come up with an idea and give it to the factory best placed to deliver it.This is variant from, say, Nokia, which would be compelled to bank check in-house or go to a vendor-partner, even if another vendor had better capabilities to meet a particular model. 6. Smart distribution channel management Micromax also looked at distribution in a new way, standing by its cash-only model. While rivals offered a 60-day credit line, Micromax refused to give credit. If the distributor does not buy your handsets, there is no haul on him to sell them, explains Mr Agarwal. At the same time, Micromax offered to supply distributors regularly to keep inventories down.So, distributors didnt have to shell out large amounts up mien or have a lot of money locked in. If we give a distributor 1,000 handsets and ask him to sell them over a month, he will reside about his daily sales, says Mr Agarwal. But if we supply less, demand will be closing curtain to equal or more than supply. Micromax has 34 super-distributors across India. Unlike a Nokia or a Samsung, it doesnt interact with the 500-plus sub-distributors. incomplete does it intervene in how the super-distributors sell or place the product s. We offer our super-distributors a 15% margin, which is higher than the ndustry average of 6-10%, claims Mr Jain. 7. Unmet involve of consumer 30-DAY bombing PHONES April 2008 Rs 2,249 direct Rs 1,999 The X1i, Micromaxs first phone, had a battery that could give 17 hours of disgorge time and go 30 days on a single charge. DUAL-SIM PHONES July 2008 Rs 1,999-12,999 For those who indispensableness two numbers but one handset PHONE-CUM-REMOTE May 2010 Rs 2,999 A mobile that skunk switch TV transmit and even change the AC Temperature PHONE-CUM-STEREO Feb 2010 Rs 4,999 With 3D surround sound, fed by Yamaha and Wolfson BLING Feb 2010 Rs 5,500 A big hit with women, comes with Swarovski embellishmentsIN THE WORKS A mosquito-repellent phone. A phone that tummy be used as a figurer mouse Micromax decoctes on being different 8. Production related moves Micromax is investing Rs 100 crore to set up a manufacturing plant in Baddi, Himachal Pradesh, to ensure its outsourcing model does n ot cause supply-side uncertainties. Production is being scaled up from 50,000 units per month to 500,000 units a month by March 2011. How to increase the market share with respect to the consumer buying behaviour Steps of consumer buying behaviour 1) direct awarenessThe beginning point of most purchasing is your potential buyer deferred payment of a need in their life. This need can be established by encountering a problem or prompted by a companys marketing. Already Micromax is into a lot of marketing through promotions, Ads, sponsorships of events, etc. But few suggestions on that front to make sure that their potential consumer hears them rightly is * Now they are at the 3rd vista in the mobile handset industry and they have achieved a good market share in a very short span of time, so their advertisements should focus on brand building. They dont develop very creative advertisements, sometimes their advertisements are mere noises like the advertisement featuring Akshay kumar . They must add creativity to their advertisements. (Micromax Bling Ad featuring Twinkle Khanna is an exception to this point). * Break the bulwark of no need by align their marketing with the current need and wants of your market. * Its a general norm that some(prenominal) is expensive is good to use, of high quality, has more life and is in spades something which will increase ones status.So it would be a good strategy to increase the prices which will work for the image of Micromax because there is a risk of the brand being perceived not as an aspirational brand but a ordinary price warrior if it does not focus on the quality of the communication. * The needs of not even two consumers are the same. Therefore, they buy only those products and values, which satisfy their wants and desires.To populate in the market, a firm has to be constantly innovating and understand the latest consumer needs and tastes it will be extremely recyclable in exploiting marketing opportunities a nd in confluence the challenges that the Indian market offers. This reality can be turned into an opportunity by introducing Customization of mobile phones. a) People can goto Micromax mobile stores, and fill a form listing their options of the type of phone they want, color of the phone, bury size of the phone, features like audio player, radio, one touch applications, etc. amp all other specifications of the phone. ) Once that form is fill up the Micromax mental faculty can show a picture of the newly designed phone to the consumer on a computer and if requirement can make any changes and thus finally place the order for such a phone. c) Payment terms and conditions can be advance payment half(prenominal) the price of the phone at the time of placing and half at the time of delivery. This makes the consumer feel that the mobile phone company is not only generally consumer centric but it believes in the fact that every person is different and unique in his/ her own way and would have different needs and wants.Also this gives a chance to the consumers to become innovative and its definite that a consumer will definitely want to buy such a phone again from Micromax. 2) Information calculate Its important to make sure consumers fill out about all the new variants and products that the company introduces. With the rise of the Internet, it has never been easier for buyers to research their procure. It needs to make sure that all schooling is readily available on the website.They can break the resistance of lack of precept by adding an educational seminar to their marketing flick to yield maximum information about their company, phones, promotions, variants, prices, etc. to not just the tech-savvy urban population but also the rural people. Their goal at this point in the buying process is to get their product or service in front of the consumer. They need to make them aware of their solution. 3) distinguish options Once the consumer understands his or her situation and has garner research on possible solutions, the mobile handset buying process enters an valuation period.The consumer now starts to take a final stage look at specifics, such as the company providing the solution, the brand name of the product, and the features and benefits of each solution. Brandingand product differentiation are extremely important tools of persuasion during the evaluation stage. This is where the strategies listed above would help Micromax gain an touch over its competitors and increase the market share when a potential consumer would sit and gauge his options while buying a jail cell phone. 4) Purchase After a spaciotemporal review of solutions and specific products and services, the consumer makes a bargain for decision.At this point in the buying process, financial support information needs to be provided to fortify the decision to buy. Help the buyer by telling them what and why the company/ staff in the store would recommend a certain handset as they are the experts in that. Also Depending on urban / rural population, the company can provide different payment options or thrill terms. 5) Evaluation of the purchase The buyer will look for reinforcement from media, friends, and other sources verifying they made the right decision. Cognitive stochasticity or buyers remorse happens when the buyer begins to feel the purchase wasnt right for them.To make sure such dissonance doesnt draw they should offer warranties, there must be after purchase follow-up calls to make sure that the consumer is happy with the handset he/she has purchased, excellent after sales service by opening as galore(postnominal) service centers as possible in all parts of India. It is crucial to building strong relationships with customers and encouraging repeat purchases that you not only provide a arbitrary purchase experience and after sale support, but that you strengthen the buyers perception that they made the right purchase de cision.