Micromax Mobile

A study treat on the Brand Micromax By Punyadeep Singh PRN 59, MBA 09-11, SIOM Introduction The unst able-bodied phone commercialize in India is worth 130 trillion handsets annually. While the big boys like Nokia, Samsung, LG, Motorola and Sony Ericsson find up for 70% sh be, the securities industry has of deeply seen a slew of house servant firms such as Micromax, Karbonn and Intex making large inroads and overbold established defacements like Videocon and Onida entering the field.Among the domestic firms, one of the or so promising brand is Micromax. Few years ago, when Vikas Jainists firm was delivering in haomaation processing system printers and monitors across India, he saw introductory-hand how pervasive Nokia had become. Just as in Europe, where most peoples scratch officious phone was make by the Finnish giant, it had repeated the discombobulate of getting in first and cover the subcontinent with its no-frills handsets. Despite Nokias dominance, the Indian mobile-phone marketplace was far from being saturated. Jain saw his chance.From a standing incision two years ago, his telephoner, Micromax, is direct irritated off 1 million phones a month. He believes that next month it could beguile Samsung, with 11% of the market, and seize blink of an eye home base in India. When Nokia or Samsung roll egress a new model they do so from its global portfolio rather than innovation something specifically for India, said Jain, who set up the confederacy in 1990s on with three friends from engineering collegeRahul Sharma, Rajesh Agarwal and Sumeet Kumar, all of whom are in their mid-30s to early 40s.Micromax, started operations in 1991 as an embedded software be after firm, but was incorporated as a comp any in 1998, when it branched out as a distributor of computer peripherals such as printers, monitors, scanners from manufacturers such as LG, Sony Inc. , Dell Corp. To daylight, Micromaxis one of the leading Indian Telecom Comp anies with 23 domestic offices across the commonwealth and international offices in Hong Kong, USA, Dubai and at one time in Nepal. With a futuristic hallucination and an exhaustive R&D at its helm,Micromaxhas successfully generated innovative technologies that brook revolutionised the telecom consumer space.Micromax, as they claim on the confederacys website, is on a charge to successfully overcome the technological barriers and eer engender career enhancing solutions. Micromaxs first innovation was a handset with 30 old age of standby battery life crucial in a country like India where power failures are common. beside there was a dual memory board card phone, priced at ? 26, for callers who like to trance the cheapest tariffs. The companys vision is to pose path-breaking technologies and efficient processes that incubate newer markets, enliven guest aspirations and to makeMicromaxa trusted market leader amongst people.Micromaxhas a lot of evoke and thoughtful prod ucts to its credit on their various(a) product portfolio. It was the first to introduce 1. Handsets with 30 days battery backup 2. Handsets with triplex SIM / Dual Standby 3. Handsets Switching Networks (GSM CDMA) victimisation gravity sensors 4. Aspirational Qwerty Keypad Handsets 5. Operator brand 3G Handsets 6. OMH CDMA Handsets,etc. With a 360 degree advertisement and marketing strategy sketched out, the company has an starry-eyed outlook for the telecom consumer space.Currently deport in more than than40,000 storesacross the country, the company plans to have an aggressive market penetration to reach out to its customers through70,000 in operation(p)(a) storesin the coming year. One of the major(ip) aspects that contribute towards the substantial monthly ontogeny of Micromax is its 80% sales in the pastoral areas. After building a real presence in the rural market, where the swelling of both subscribers and hustlers is rapidly increasing, Micromax is now progress ively moving towards establishing its foothold in the competitory urban towns as well.Micromaxrecently ventured into the telecommunication industry with an end-to-end solution of frigid Wireless DevicesandWireless Data Cards. In the year 2008, after delivering upon the technology of mend wireless-powering desired products, the company forayed into one of the most predominant genres of telecommunication Mobile handsets. Since thusMicromaxhas received commendable response for its queer and interesting handsets. Innovation, Cost-Effective, Credible and an Insightful R&D are given advanced emphasis at Micromaxin the telecom vertical. Micromax as a Brand in the Media Posted Monday, February 8, 2010. 045 PM IST on livemint. com (website of the famous B-newspaper) Micromax challenges Samsung, LG in mobile phone stakes. The news raise elaborates that Citigroup Global Markets Inc. has confirmed Jains assertion in a 3 February report, which said Micromax had a 10% market share, putting it at No. 3 behind Nokia and Samsung, which had 12-13%. The success of Micromax prompted US cloak-and-dagger equity groupTA Associatesto deprave less than 20% of the firm for final stage to $45 million (Rs210 crore today) in December, valuing it above $225 million and indicating confidence in its yield potential.Jain estimated that the firm will close the fiscal with sales at near Rs1,500 crore. The Brand Micromax has now started gaining acceptability not only with the consumers but in any case with the images, which now has started portraying it with a positive image. Whereas increase consumer sales support the acceptance among the consumes, followers quoted are some extracts from the news reports that appearing that media is withal looking up to this brand. Micromax seems to have interpreted a breath of judicious air and totally remade their presence.From their previously depressed website, theyve moved into a much more vibrant state and theres clearly a significant battle in their mobiles as well, at to the lowest degree cosmetically, quotes www. tech2. in in a review for its newly despatched model X360. Micromax has also tied up some delightful big brands like Yamaha for enhancing their audio experiences and the X360 comes with an MTV brand and exclusive content. A section from the mobile handset market, Micromax was recently in the news for its league with BSNL. State-owned Bharat Sanchar Nigam Ltd. ntered into an agreement with Micromax for sale and dispersal of 3G selective information card to its subscribers. As per the agreement, Micromax would sell and circulate 3G data cards in the form of USB to the BSNL subscriber in various cities. In another venture, Micromax launched the Indias first operator brand3G mobile phone H360, in association with MTNL. The H360, pre-loaded with applications to enable video calls, mobile TV, social networking, wirelessbusiness solutionsthrough web browsing and other Internet-based services. carrefo ur Differentiation So, as listed Micromax has been quite in force(p) in the marking a diversity with almost every product that it launched. The stove that they have covered varies quite a large variety. Right from the handsets with 30 days battery backup, dual SIM, handsets switching networks (GSM CDMA) apply gravity sensors, aspirational QWERTY keypad handsets to operator branded 3G handsets to the most exciting OMH CDMA Handsets,etc.every product of Micromax had the potential to grab the guardianship of media as well as the consumers in a market which is already swamp with mobile phone handsets and a launch is there in every day or two. Image Differentiation From inelegant to the Urban grounds Micromax specialized in entry-level and mid-segment handsets priced between Rs1,800 and Rs2,400 when it started selling the devices in 2008, control itself to small towns and rural areas in the first 12-18 months.Encouraged by its success, the firm grow to larger cities and now has a distribution network of 55,000 retailers, which it plans to scale up to 70,000 by the end of March as part of its strategy to raise sales to 1. 5 million handsets a month. The journey is also now spans through the wide drop that Micromax plans to offer to its consumers in the coming period. Micromax is grooming to expand its range in memory with new market demands. It is readying several(prenominal) high-end handsets, including phones that will run on Googles Android and Microsofts Windows Mobile operating systems.The handsets are expected to be slack in April or May, Jain said. Micromax has also tied up with a Bollywood celebrity who will be proclaimed shortly as brand ambassador, Jain said. Channel Differentiation Micromax has invested Rs100 crore to set up a localize in Baddi in Himachal Pradesh as it feels outsourcing manufacturing completely leaves the door open for supply-side uncertainties. Production will be leprose up from an initial 50,000 per month. If everythi ng goes right, by the terzetto phase in March 2011, the Baddi plant will be making approximately 500,000 handsets, Jain said.If the plant isnt able to cope with the numbers, the fallback plan is to grasp a facility in southeastward Korea, Taiwan or China, he added. Nokia has a plant in Chennai, established in 2006 at a cost of well-nigh $150 million, from where it also exports. Summary bowl very recently, Micromax was seen as a second grade brand with hardly any brand value. But with the recent reports listing the figures in the companys opt as well as the abundant branding done by the company itself along with the interesting product portfolio has taken the brand to a respect slope.And the position is still is very promising for the future. For a company which still has not been listed on any exchange, a turnover of about(predicate) 1500 Cr. can be termed as huge. for sure the company has the potential to be a threat to the foreign giant as it has been successful in stud ying the Indian mindset better. Micromax spent heavily on branding during the recent India v SA Jaypee Infratech cup A recent Economic multiplication report