Prospects of Micromax in television market
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PROSPECTS OF MICROMAX TELEVISIONS IN RAJASTHAN
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Micromax Informatics Limited
O Micromax is an Indian consumer Electronics Company located in Gurgaon, Haryana, India which focuses on the manufacturing of mobile telephones, tablets, data cards and LED televisions.
O It has 23 domestic offices across the country and international offices in Hong Kong and Dubai. Presently, the company has about 1900 employees.
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O In 1991, Micromax focused on reselling and distribution of hardware equipments and as an IT software company in the year 2000 working on embedded platforms.
O After being a distributor for hardware equipments, in 2008, it entered mobile handset business.
O By 2010 it became one of the largest Indian domestic mobile handsets company by offering unique affordable innovations.
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O The company has a 24% market share in the smartphone segment in India as per the report for April 2013.
O It claims to be the top tablet maker in India, and the 12th largest handset manufacturer in the world.
O Micromax is currently dominating the tablet space in India with 18.4 percentmarket share, followed by Samsung with 13.3 percent for the three months to June, according to CyberMedia Research.
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TELEVISION MARKET IN INDIA
O Television is one of the major mass media of India and is a huge industry and has thousands of programs in all the states of India.
O Today India boasts of being the third largest television market in the world.
O Approximately half of all Indian households own a television.
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O Further, Price (15%), Personal research (28%) and consumer ratings (14%) are also considered to be the major factors taken into consideration by the consumers while buying the products.
O Among CRT, LCD and other varieties of TVs the clear choice of the Indian consumer is CRT TVs which literally dominate the market with almost 90% of the market share. But with changing tastes and increase in paying capacity there is a constant increase in the share of the LCD televisions which has become the first choice of those who can afford.
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O LCD Television market share is around 6.6% of the total CTV market.
O Due to sleeker and better picture quality models in the television market, demand for LEDs (Light Emitting Diode)and LCDs (Liquid Crystal Display) has grown tremendously.
O Also, lesser power consumption and advanced features have been other factors behind the surge in demand for LEDs and LCDs.
O Although the demand for CRT televisions is declining, still it is expected that the demand from lower income groups and the rural areas will drive these market for a next few years.
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FOUR SUB-GROUPS OF THE MARKET
O The television market has been divided into four groups namely:
1. The Upgraders
2. The First-time buyers
3. Multiple-set buyers
4. Replacement purchasers
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The Upgraders
O Upgraders segment comprise of those buyers who have upgraded from black and white televisions to Colour televisions.
O Primary reason behind upgradation is cable and satellite boom and increasing coverage of major sports and other events.
O This segment shows a distinct preference for multi brand outlets to compare brands and gather unbiased information.
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The first-time buyers
O This segment constitutes of buyers who are buying a Colour Television for the first time.
O Brand loyalty is not very high but focus is towards the brand offering the latest and consumer friendly technology.
O Price also plays a major role in decision making.
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Multiple-set buyers
O This segment represents people buying more than one set.
O Main consumers are joint families with the need to own personnel television sets.
O Price is the most important purchasing factor combined with lookout for a high tech product.
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Replacement purchasers
O This segment usually trades in old CTV’s for new ones.
O It forms around 12% of the market and holds immense potential for the future.
O With increasing disposable incomes and the introduction of new models and declining prices, replacement demand has surged over the years.
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COMPETITION IN THE TELEVISION MARKET
O Major players in the overall television market are Samsung, LG, Sony and Videocon.
O Samsung and LG are reported to have the largest share of 25% each followed by Videocon (22%) and Onida (11%).
O But in the context of LEDs and LCDs, Sony has been a tough competitor to both the leaders.
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MICROMAX ENTERING TV MARKET
O In October 2012, Micromax entered the television market with the launch of LED TV in nine states like Delhi, Haryana, Maharashtra, Karnataka and Rajasthan across the 24-inch to 55-inch range.
O The price of the televisions stands between Rs. 15,990 and Rs. 1,29,990.
O The company entered the market with the aim of selling 1 lakh units in the first year and 8% share in LED market.
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O Also, it is aiming to grow overall revenues to Rs 2,800 crore for year ending March 2013
O Micromax has set up a one-lakh square feet manufacturing facility spread over 5 acres at Rudrapur in Uttrakhand. It has a production capacity of 2,000 LED TV units per day.
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Price ComparisonMicromax Samsung Sony
20” LED 9000 - -
24” LED 12000 16000 17200
32” LED 20000 28000 30000
42” LED 40000 60000 60000
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ANALYSIS
O According to the industry experts, with the entry of Micromax in the television sector, the sector is likely to become more competitive.
O This is because Micromax has a reputation of flooding the market with devices in each possible budget category.
O Some analysts disapprove the entry of Micromax in the television market because it is believed that the market is at saturation stage.
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Why Micromax Will Succeed?
O Prices lower than its competitors.
O Well-established distribution network.
O Ever-growing demand for LEDs.
O Replacement buyers augmenting.
O Good-quality products.
O Brand Image.
O Manufacturing factory situated in India.
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CONCLUSION
OMicromax’s foray into the television industry will succeed because it has wide scope of expanding in the market.
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THANK YOU!