LAVA Mobile PhonesGet the Power in Your Hand

Introduction

Industry: Telecom Hardware

Category: Mobile Phone Handset

Promoters: Hari Om Rai, Shailendranath Rai, Sunil Bhalla, Vishal Sehgal

History: 27 May 2009 Company got incorporated

Turnover: 750 Crores INR

About LAVAVision: To Empower People to do more, to be more

Goal: By 2014 LAVA is a $ 1 billion Company trusted by people through

innovation and empowerment.

Core Values:

Integrity:

Steadfast adherence to high moral and professional

Passion for Excellence:

Intense keenness to stretch the limits of great in everything we do

Adaptability:

The ability to quickly evolve in response to changing circumstances

Organizational Structure

R &DMr. Arvind Jha

Designing Team

Innovation Team

General AdminMr. Sunil Bhalla

HR

Finance & Accounts

MarketingMr. Vishal Sehgal

Branding & Advertising

Sales Team

LogisticsMr. Rai

Distribution

After Sales Services

A distinguished management with an excellent industry track record

Mobile Handset Market Share in India

Indian mobile Industry is the fastest growing across the world adding 15-20million

subscribers every month

It is 2nd largest market after china in terms of number of subscribers

All India Cellular Subscriber base (as on July - 2011) = 800 Million (Approx)

Mobile Handset Market Share in IndiaNokia leads the GSM market with 63% market share

Market Share of LAVA : 4%

*Others Include: Micromax, LAVA, Karbonn mobiles, Spice, Lemon, Intex

Growth Drivers of LAVAUnique innovations at affordable cost through strong customer understanding (pocket friendly &functionality rich handsets)

For Instance:

Alpha Key Pad

IPS Screen – To facilitate wide-angle viewing

Dual Sim Handsets with dual charging points

Multilingual Handsets – To target rural customers

Maximum Battery life of 30 days

Milestones – The First’

• 100 distributors in just 47 days by 23 TM’s – 5 State Launched (UP-E, Punjab & HP, Raj., Delhi, Haryana and Mumbai Distributors appointed in just 59 days by 34 TM’s – 12 States Launched (UP_W, TN, Gujarat, Bihar, Jharkhand, WB, NE, Orissa,       AP, Karnataka & Kerala, Maharashtra and Goa.

• The first1 Lakh customers-106 days.

• The next 1 lakh customers – 43 days.

• Company sold 5 lakh handset -177 days.

• March 31, 2010 Co. touched turnover of 307 crore with currently 2.7 millions plus using LAVA handset.

Brief on LAVA Mobile

LOGOParent Company Lava Mobile

Category Mobile phone Handsets

Sector Telecommunication

Tagline/ Slogan Power in Your Hands; Life Gungunaaye

USP Moderate functions at low price

Segment Low-Medium range Basic Phones market

Target Group Low income consumers, Tier-2 cities, Villages.

Positioning Replacing the Biggies like Nokia, Samsung from the low end phones market. As a second phone

Basic Low Cost Models

Price Range: 1699 -2999

No. of Handsets: 10

Features: FM Radio, Torch, Dual Sim, Long battery life, Indian Calendar

Models: LAVA KKT 15, KKT 11, KKT22 etc.

Mid Segment Models Price Range: 3000 - 4999

No. of Handsets: 8

Features: FM Radio, Bluetooth, Sound recording, Long battery life, SRS WOW HD,

Internet surfing, Colour Matcher, MP3 player, Mobile tracker

Models: LAVA ARC 02, ARC 241, LAVA KKT25, KKT 35, LAVA M30 etc.

LAVA mobiles plan to launch 2 handsets every month

Premium Segment Models Price Range: 5000 and above

No. of Handsets: 3

Features: IPS screen, JAVA embedded games, Map my India, nimbus, Mini opera,

GPRS, One touch music player

Models: LAVA A9, LAVA A10, LAVA B5

LAVA – Distribution Network Has a network of 1000 distributors

Has 50,000 Points of sale through retail counters

Presence in North, some parts of South & West

Two Base Mechanics

After Sales Support Service LAVA has 750 after sales

service centers across IndiaNo.of Service Centers across India

1000

1200

400550370

335

380

436

750

NokiaSamsungMicromaxKarbonnSpiceLemonZTEVideoconLAVA

SWOT Analysis (Strengths)

Distinguished management and full implementation of TQM

Planned foothold in unexplored rural segment which has high potential

Customer driven Innovations

Pocket friendly prices with rich featured applications

Dedicated R & D facility at China and Bangalore

Substantial no. of after sales centers comparable with Industry in short span of two years

Lava boasts of a network 1000 distributors and 50000 retail counters (P.O.S.)

SWOT Analysis - Weaknesses After sales services not up to the customer’s expectations

Dearth of qualified and experienced engineers due to rural positioning

and high attrition rate

Low consumer confidence and low reliability

Constrained margins being in low and medium segment

Relatively high emission of radiation

The user interface does not satiate the needs of tech savvy consumers

Only single product in the kitty compare to versatile competitors

Poor brand awareness

SWOT Analysis - Opportunities

Target Premium segments in urban market

Premium segment still uncovered

Concept of 2nd phone

Substantial part of Rural India is still uncovered

Increased Per Capita Income of Indians

Indian mobile handset market estimated to grow at around 8 million per

month

Triple SIM handsets in the pipeline

SWOT Analysis (Threats)

Multiple manufacturers in the same segment

Brand conscious customers do not subscribe to local brands

Expansion entails huge capital investment

Low margin due to cut throat competition

Difficult to enter in premium market due to presence of established players

Innovations: Sales Promotions – Rural

Strategy 1 –

Closed User Groups (CUG)

Village Panchayat Levels

Coordinate with Local Service provider

Strategy 2 –

Target “Haat”, Melas, Week Bazars

Tie Ups with Retailers for Showcase/Shelf display of products

– No investment but commission basis to retailer

Home delivery of product within 48 hours

Innovations: Sales Promotions – Urban

Strategy 1 –

Tie up with premium Service Providers

Full cost of cell phone to be returned spread over two years

Monthly deductions in the from the assured billing (slab-wise)

Monthly deductions = Sale Price of the cell Phone/24 Months

Promotional cost will be shared by M/s Lava and Service

Provider

Recommendations: Brand Awareness

Rural

Scheduled Ads in newspapers of local language

Digital Media with Popular regional TV channel

Association with camps on Agricultural Know how & Illiteracy

Eradication

Radio jingles

The connection of Dual Sim with Family Planning Programme

Urban

Teenager Target through teaser Ads on MTV, 9XM, ESPN,Zoom

Print Media : Mirror, Mid Day .

Canopies/ Standees in mallls

The Next Big Thing for LAVA

• Roping in –People centric Applications

• 3 G The way Ahead

• Android Phones

• Tablet

• Smart Phones

• Triple Sim phone

Motto: The future device will be one that is

• Easy to carry,

• Connected all times &

• Delightful to use.

“When you are willing to make sacrifices for a great cause, you will never be alone.”