Girish Jindal – 071092Ashutosh Yadav –

071095Robinder S. Wasu –

071255Rajat Gupta – 071419

Harsh Mohan - 071458

Road MapRoad Map

What are What are ConsumerConsumer

Durables ?Durables ?

Key FindingsKey FindingsThe rapid rise in incomes will lead to an even faster

increase in demand for consumer durables and

expendables

As a result, the ownership of goods will also go up

significantly

What will power this is the increased usage in different

income classes..

…coupled with the rise in the size of the Great Indian

Middle Class

Demand Of Consumer Demand Of Consumer

DurablesDurables

1995-1996 2001-2002 2005-2006 2009-2010

Car276 788 1560 3466

Refrigerators

1850 3006 4335 6774

Motorcycles760 2599 4663 8369

White Goods3437 6024 8727 13149

-- Figures in ‘000

Growth Of Mobile Phones Growth Of Mobile Phones

In INDIAIn INDIA

Contd…Contd…....• Revolutionary steps taken by the government.

• 4-5 million people buy mobile phones every

month.

• Services in ~ 5000 cities & towns, & even ~1

lakh villages.

• Easy availability.

• Mobile is the primary driver of growth.

Contd…Contd…

• 584 million mobile phone connections as of

March 2010.

• Industry is expected to reach a size of

Rs 3,44,921 crore by 2012

• Growth rate of over 26 %.

• Generate employment for about 10 million.

Few Statistic of Indian Few Statistic of Indian

CommunicationCommunication

Telephony Subscribers (Wireless and Landline): 562.21

million (Dec 2009)

Cellphones: 525.15 million (Dec 2009)

Land Lines: 37.06 million (Dec 2009)

Broad Band Subscription: 7.83 million (Dec 2009)

Monthly Cellphone Addition: 19.20 million (Dec 2009)

Teledensity: 47.89% (Dec 2009)

Projected teledensity: 893 million, 64.69% of

population by 2012.

NOTHING LIKE ANYTHING

VisionVision• To develop path-breaking technologies and

efficient processes.

• To incubate newer markets, enliven customer

aspirations and continue to make Micromax a

trusted market leader amongst people.

• The ideology(MM’s) stems from its rooted belief in

'Innovation' and delivering "nothing short of the

best".

HistoryHistory• It was founded in 1991 by Rajesh Agarwal as a

distributor of computer hardware for brands like

Dell, HP and Sony.

• In 1998, three more people Sumit Arora, Rahul

Sharma and Vikas Jain joined Micromax as co-

founders.

Contd…Contd…• Introduced Micromax Mobiles in the year 2008

in India by Rajesh Agarwal, Sumit Arora, Rahul Sharma and Vikas Jain.

The Entrepreneurial The Entrepreneurial IDEAIDEA

• On a hot summer afternoon in 2007, executives at a small Indian

pay phone company called Micromax noticed a curious sight.

• In a village in the eastern part of the country, they watched people

line up next to a man with a car battery strapped to the back of his

bicycle and hand him a few rupees to plug their cell phones in for a

half hour's worth of charge. The villagers' homes didn't have

electricity.

• Less than a year later Micromax sold its first cell phone,

the X1i. It came with an oversized battery, a small

screen, and tweaked electronics that made the phone

run for as long as five days, and on standby for as many

as 30 days.

Micromax ? Micromax ?

• Micromax, based in Gurgaon.

• Introduced 37 phones in just over a year and a half.

• Designing in India and manufacturing with partners in

China.

• Micromax has 23 domestic offices across the country.

• International offices in Hong Kong, USA, Dubai and

now in Nepal.

•Currently there are more than 40,000 stores.

•Company plans to increase their stores to 70,000 .

•Micromax made its debut in 1991 but it presence has

been felt majorly in few previous years.

•Serious developments and rise was seen in the year of

2008 when the company entered Indian Cell phone

handsets market.

•Company entered market in March 2008 in which it had

a market share of meager 0.59% average.

ProductsProducts

StrategyStrategy

STRATEGIESSTRATEGIES

• Their marketing strategy:

focuses on the unique

functionalities

to further develop their reputation

innovation.

• Since their entry into the Indian mobile handset

market in March 2008 they have introduced more

than 40 distinct mobile handset models and as of

August 31,2010 they have sold more than 30

distinct mobile handset models.

• They believe that their product development

capabilities have enabled them to establish

themselves as an innovative Indian mobile

handset company.

Contd…Contd…• They differentiate themselves from their competitors

through :

innovation

design

use of advanced technologies

in-depth understanding of rapidly

changing consumer preferences .

RetrenchmentRetrenchmentCombinationCombinationCombinationCombination

The Grand StrategiesThe Grand StrategiesThe Grand StrategiesThe Grand Strategies

StabilityStabilityStabilityStabilityGrowthGrowthGrowthGrowth

Combination Combination StrategyStrategy

• Uses growth as well as stable strategy

• Micromax in 2010 is now India’s third-largest GSM mobile

phone vendor.

• Market share of 6 % after Nokia (62 %) and Samsung (8

%), according to research firm IDC with a stable growth rate

of 4.1%.

• It sells anywhere from 700,000 to one million mobile

phones every month.

• Selling nearly Rs.1,500 crore worth of phones annually.

Contd…Contd…Company 2008-09 2009-10 Growth/ Decline

(in percentages)

Nokia 64.0 52.2 -11.8

Samsung 10.0 17.4 7.4

LG 4.5 5.9 1.4

Micromax --- 4.1 4.1

Spice Mobiles 2.0 3.9 1.9

Karbonn --- 3.0 3.0

Sony Ericson 6.0 3.0 -3.0

ZTE 5.6 1.9 -3.7

Huwaii 1.3 1.7 0.4

Motorola 3.5 1.0 -2.5

Other companies 3.1 5.9 2.8

Competitive Competitive StrategyStrategy

Cost LeadershipCost Leadership• They believe that consumers in India have unique

preferences with respect to mobile handsets if

available at affordable prices such as

• Long battery life

• Dual GSM capability

• Low-cost QWERTY phones

• Universal remote control

• Gaming phones

StrengthsStrengths• Low cost—about 30 per cent cheaper than MNC

equivalents.

• High on features, some of them better than global models.

• Will offer latest features like 3G, Android at a fraction of

MNC costs.

• Easy availability to all areas urban as well as rural.

• Effective Advertisement.

• Cater the needs of customers in the ‘Best’ & ‘Cheapest’

way possible.

WeaknessWeakness• Quality, design often not up to the mark, use

primitive software

• Servicing could be an issue, most companies are

primarily importers

• Government rules on components, materials

could erode price advantage

OpportunitiesOpportunities• Ever increasing mobile demand.

• For mobile we have 400 million-plus users.

• As the fastest growing telecommunications

industry in the world, it is projected that India will

have 1.159 billion mobile subscribers by 2013.

• New technologies like 4G still not available in India.

• Targeting the high end customer.

ThreatsThreats• Ever increasing competition with same traits (eg.

LAVA Mobile, Lemon Mobile etc..)

• Big players catching up with cost differentiation of Micromax.

• Technology is changing on a daily basis, so can loose the race where ‘to be the first is everything’.

Recognition and Recognition and AwardsAwards

• Micromax is now India’s third-largest GSM

mobile phone vendor with a market share of 6 %

after Nokia & Samsung

• Awarded the Most Impactful Launches in 2010 by

Pitch India.

• Recognized as a Major Challenge for Nokia &

Samsung Mobiles.

Future…Future…

• diffusion of mobile phones will continue till 2012-13.

• 71 mobile phones per 100 inhabitants in India at the

end of year 2015-16.

• number of mobile phones will exceed the number

of people in the country by 2022-23.

• Total mobile phone demand is projected to increase

from 90 million in 2005-06 to 433 million in 2010-11

and nearly 900 million in 2015-16.

Predictions:

• Thus Micromax has a lot of scope in the coming future.

• Already it has launched some 43 models in the market

with at least 3 more by the end of 2010.

• "The company has registered a phenomenal

growth and may be looking to raise this kind of

money to open its own production plant in India",

said an analyst with a Mumbai based broking firm.

• Associates infused $45 million (Rs 204 crore) in

Micromax valuing the company a little above Rs 1,000

crore.

Our VerdictOur Verdict• The company has nearly two decades of expertise and

continuous research in India and strives to remain as

the vanguard of technological advancement in the

country in the quickest way possible.

• Micromax mobile phones remain at the top spot today

in India giving other international brands surely a tough

time.

• “We are not the poor cousins of Nokia,” says

Vikas Jain founder of Micromax Mobile. This is the

attitude that has brought them this far and will take

them further.

• Their strength to cater the needs of

customers(battery life, qwerty keypad, Dual Sim etc.)

in the most effective way is what has made them

succeed this far and will continue doing that.

The Bottom LineThe Bottom Line

Micromax is gaining market share in India by making cheap phones with long

battery life and offering other features local consumers want.