MICROMAX…nothing like anything

Prachi Arya (04)Pravin Bokil (06)Shikin Chaoudhary (12)Sneha Hatwar (25)Sumeet Paharia (44)Chetan Shinde (55)Krishna Pratap Singh (56)

MOBILE INDUSTRY

• The Indian mobile handset market has grown by 14.17 % yoy to Rs.35,946 crore in 2012-2013

FOUNDERS:-

• Rahul Sharma• Rajesh Agarwal• Sumeet Arora• Vikas Jain

• Micromax today is a fast growing and emerging leader in the mobile and consumer electronics space in India.

• Entered mobile handset business in 2008 and in a short span of two years became one of the largest Indian domestic mobile handsets company by offering unique affordable innovations.

MICROMAX

MICROMAX• Yesterday’s Scrappy Challenger Is All Grown

Up

• In Smartphone, market share—22.7 % versus Samsung’s 31.9 %

• Micromax has become India’s 3rd largest mobile brand in a short span of 5 years

• Micromax is branching out to neighbouring countries, and already has nearly 14 locations

PRODUCTS OF MICROMAX

PRODUCT EVOLUTION

Basic feature phone:

The Phone has a Display of 2 inches, QVGA TFT Display Screen

0.3 Mega Pixels camera, VGA camera with digital zoom

PRODUCT EVOLUTION…

Touch phones

CDMA bar phones

QUIZ

Which celebrity first endorsed Micromax phone?

Q55 Bling a women centric phone

Micromax Bling Q55 is a dual SIM phone, QWERTY keypad

The Bling is endorsed by Twinkle Khanna

PRICING STRATEGY

Micromax to serve the customers by proving them with lower cost

Adopt penetration pricing in the urban market

“CANVAS SERIES”

DATA CARDS, TABLETS & LED

UNIQUE STRATEGIES

• Concentrating on rural market: Value for Money

• Making way to cities: Brand building• Going global: Spillover effect• Shortest ‘Time to market’• 12th largest handset manufacturer,

globally• Amongst top 25 companies in global Supply

Chain Management• Micromax supply chain: Efficient and Agile• 3 tier Vs. 2 tier distribution channel:

Different Channel of distribution for different products

SUPPLY CHAIN FOR ALL PRODUCTS

Handset Manufacture

r(China, Taiwan,

South Korea)

65Super

Stockist(up to 5%)

1500Distributors(up to 15%)

100000Retailers Customer

WHAT’S NEXT• India Calling: Smartphone assembly started in

the plant at Rudrapur, Uttarakhand

• Approval of National Policy on Electronics 2012

• ₹100 Cr of investment in manufacturing plant at Baddi, HP

• Fallout Strategy: Acquire plants in China, Taiwan and South Korea

• Focus on Global presence: Russia and Romania

Sourcing Distributi

on

Manufacturing Services

Research and

Development

Dealer

DISTRIBUTION APPROACH

• On the distribution front, both feature and smart phones are treated as distinct SBUs within the company. 

• Exclusive stores called Experience zones for the urban markets.

• Bundling with Telecom operators like Aircel.

Super-Distributo

rs

Distributors

Retailers

Distributors

Retailers

Three-tier Distribution Approach for Feature

Phones

Two-tier Distribution Approach for Smart

Phones

SOURCING AND MANUFACTURING

Model-based sourcing

Sourcing

China

Taiwan

South Korea

• Better infrastructure

• Stronger supply chain

• Cost effective work force

• Zero import duty on mobile phones

Benefits

Himachal Pradesh(Baddi

district)

Manufacturing Plant

Benefits• Many tax

incentives provided by the state government

• Low Cost and increase speed to market

• Enable local manufacturing

Set up of the Manufacturing Plant

DEALER MANAGEMENT

• Cost-based Model

Distribution

• Greater Margins to Dealers(15%) compared to the competitors(6-7%)

• More Margins for Advance Payment

• No Credit to the Dealers• Online Bank Transfer to

Micromax before receiving the handsets

• Autonomy to select the models as per the demand

• Tracks the sales of the phones directly from retailers on a daily basis

Dealer Network

Features

SERVICE CENTERSFeatures

• Initially 370 strategically located service centers in India and one in Nepal and Srilanka

• tied up with five third party owned, modular (component) service centers which are exclusive to Micromax

• established a service factory in Delhi which provides a range of services

• offers tollfree telephone numbers for complaint registration.

• provides onsite service • Currently 724 service centers

operational in about 250 cities and is looking at increasing the number to 1250 ( By 2014)

• Also plans to achieve 48 hour repair guarantee

• Piloting a home pick up and drop services of their customers phone

RESEARCH AND DEVELOPMENT

• Initially Micromax had no R&D; they merely sold phones offered by contracted Chinese phone-makers, they were only about cheaper prices

• The rise of Google's free Android OS was easily the biggest factor that aided Micromax's rise- No differentiation in OS among various phones

• Micromax simply buys Mediatek or Snapdragon processors – cheaper

• It is choosing to buy technology that is one generation old-and remember, a generation in the smartphone space is often measured in just a few months- reduces cost and provides value for money

SWOT ANALYSIS

• Increase

penetration in urban

market• Entry

into international markets

• Bundling with telecom providers

• Increasing competition from local and international players

• Replication of business model by competitors

• Weak brand image in urban areas

• Perception of low quality Chinese

• Poor service after sales

• Innovative products and features

• Low cost• Effective promotion

campaigns• Launching of new

products in market frequently.

• Time to market• Smart distribution

S W

OT

PAST CAMPAIGNS & STRATEGIES

• Roped in – Twinkle Khanna Target - Gen Next girls Bling- Launched on Mother’s day

• Unveiled new logo during India-Pakistan Game in 2012.

• Tied up with MTV for co-branded phones.• Yamaha for enhancing their audio

experiences • Sponsorship of IPL 2010

PAST BRAND AMBASSADOR

CURRENT STRATEGY• Aiming at bundling with telecom providers

• Strategy to exaggerate on the unique features of the product.

• Planning to provide increased warranty on sale of mobiles from 1 to 2 years.

• Sponsoring in social cause events.

• Introducing exchange schemes.

MAIN OBJECTIVES

• Image makeover form cheap chinese knock off to premium imagery

• To enable target audience to take purchase oriented actions.

• To increase visibility in urban markets

• To capture the international market.

ONLINE PRESENCE

• Launched customised ecommerce space called 'Micromax Store' in partnership with SnapDeal.

• Digital spends increased from 8-9% in 2013.

• Micromax, being new - least number of Fans

• highest “Fan growth Rate” in January, with more than 30% growth observed on Facebook over the past month.

• Micromax with their new budget friendly products such as Canvas II to prosper more with their integrated efforts around social media through initiatives such as the #MicroMaxUGFChallenge.

• Lagging behind competitors in social media presence.

RECOMMENDATIONS• Change the notion of being a follower of

phone designs. Bring up unique designs

• Come up with Retail stores and improved service centres for more visibility

• Introducing exchange schemes similar to Samsung, Apple, Nokia

• Brand endorsement

THANK YOU