Micromax Report

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Submitted to: Dr. A.P. Arora

9/7/2012
Submitted by:
Ankit Gupta (12p007)
Anurag Gupta (12p009)
Apoorav Goel (12p010)
Archit Shukla (12p011)
Arpit Jain (12p012)
Lalima Bassi (12p025)

Contents
I. Mobile Industry Overview…..………………………………………………………………………………………………………….3

II. Entry of Micromax and Company profile………………………..……………………………………………………………….5

III. Marketing Environment………………….……………………………………………………………………………………………….6

IV. Main Customer Segments………………..……………………………………………………………………………………………….7

V. Salient Characteristics of Key Customers………………………………………………………………………………………….8

VI. Marketing Strategy ………………………………………………………..……………………………………………………………….9

VII. Analysis and Recommendation ………………………………………………………………………………………………………11

VIII. Appendix…………………………….…………………………………………………………..…………………………………………….15

I. Mobile Industry Overview:
The Indian Mobile handset industry has been growing steadily and posting healthy figures. According to Telecomm Regulatory Authority of India (TRAI), India is second largest and fastest growing telecomm industry in terms of number of wireless connections. The Total revenue generated in 2011-12 is 31,215. It drops by 5%. But it is expected that Indian handset industry will grow at 10.7% compounded annually till 2017. Based on the total sales top 5 players in the Indian mobile handset landscape are:

Nokia continues to enjoy the number 1 position with market share of 38.0. But Nokia has been losing its market share very rapidly in India from last three years. At the entry-level handsets, Nokia is facing tough challenges from the home-grown players such as Micromax, Karbonn and Spice. At the high-end segment, Nokia is facing a stiff competition from Samsung, Blackberry and HTC. One of the key reasons for this is that Nokia has lost big chunk of its market share due to the lack of dual-SIM handsets in the portfolio and lack of adapting as per changing environment. Samsung on the other hand has been growing tremendously – almost by 38% from the previous year – and posted a healthy sales of Rs. 7891 crores. The growth can be largely attributed to the impressive and diverse portfolio of handsets right from entry-level to the high-end segment. The ‘Wave’ series and the ‘Galaxy S’ series has been a great success for Samsung. Samsung continues to launch new product lines at regular intervals across all segments and on all operating systems such as Android, Windows and Bada. Micromax – the homegrown handset player showed impressive growth rate and good product designs and innovations. Micromax occupies a healthy 6.3% market share and posted a sales figure of Rs. 1,978 crores. Micromax grew by 43% from 2009-10 to 2010-11.But decline (around 14%) can be seen in 2011-12. Micromax will be rolling out handsets from their own manufacturing plants this year and so can expect to do well by pricing very competitively. Blackberry – fall by 25% from last year to post a sales figure of Rs. 1,460 crores and enjoys a market share of 4.7%. Blackberry is facing pressure from Samsung, HTC and other brands in the business phone segment and is losing its sheen among the ever-loyal fans. Karbonn occupies the 5th slot and posted a sales figure of Rs. 1327 crores and grew by 32%. It occupies a market share of 4.3%. According to Gartner published a forecast report on Indian mobile phone industry. 213 million handsets were sold in the year 2011 in India. Gartner expects 231 million handsets to be sold in India in 2012. This growth is expected to be driven by replacement of handsets rather than new subscribers. The mobile handset market is expected to show steady growth through 2015 when end user sales will surpass 322 million units. Almost 90% of total sales will be cover by the replacement handset. Expected up gradation in mobile technology is also one of the factors for the expected growth. Middle budget mobile...
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