Study of Marketing Strategies adopted by

Micromax Mobiles
Submitted by
Name Roll. No.
Umang Tibrewal 20
Zehra Ladiwala 24
Harsh Vardhan Mohta 30
Nishad Nevgi 33
Snehal Punjani 35
Anish Rai 37

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Table of Contents
1. Introduction ..................................................................................................................................................... 3
1.1 Company Profile........................................................................................................................................ 3
1.2 Strategies Adopted..................................................................................................................................... 4
1.3 Market Segmentation................................................................................................................................. 4
1.4 SWOT Analysis of Micromax Mobiles ..................................................................................................... 5
2. Promotional Campaigns of Micromax Mobiles .............................................................................................. 6
2.1 Khatron Ke Khiladi ................................................................................................................................... 6
2.2 Cricket – A Religion in India .................................................................................................................... 6
2.3 Micromax & MTV .................................................................................................................................... 7
2.4 International Indian Film Academy (IIFA) ............................................................................................... 7
2.5 Micromax & MTNL/BSNL ....................................................................................................................... 8
2.6 Advertisements used by Micromax mobiles ............................................................................................. 8
2.6.1 Advertisements highlighting product features .................................................................................... 9
2.6.2 Other Ad Campaigns .......................................................................................................................... 9
2.7 Brand Ambassadors ................................................................................................................................. 10
2.8 Social Media Marketing .......................................................................................................................... 11
3. Product Mix ................................................................................................................................................... 12
4. Price ............................................................................................................................................................... 13
5. Survey Analysis ............................................................................................................................................. 14
6. References ..................................................................................................................................................... 15

Table of Figures and Illustrations

Figure 1: Market share of various handset manufacturers in India in 2009 ........................................................ 3
Figure 2: Micromax 'Fly to Brazil Teaser' ........................................................................................................... 6
Figure 3: Aspirational campaign teaser by Micromax ........................................................................................ 7
Figure 4: Micromax Bling promoting the association of Micromax and IIFA ................................................... 8
Figure 5: Micromax ads during IPL 2010 ........................................................................................................... 9
Figure 6: 'We are sorry' ad by Micromax - reinforcing its tagline: Nothing Like it .......................................... 10
Figure 7: Micromax's Brand Ambassadors; Twinkle Khanna & Akshay Kumar ............................................. 10
Figure 8: People's view on why they use Micromax ......................................................................................... 14

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1. Introduction

The mobile phone market in India is worth 130 million handsets annually. While the big boys like
Nokia, Samsung, LG, Motorola and Sony Ericsson make up for 70% share, the market has of late
seen a slew of domestic firms such as Micromax, Karbonn and Intex making large inroads and new
established brands like Videocon and Onida entering the field.

A look at the industry profile helps us understand the market better.

NOKIA 54.1%
LG 6.4%
SAMSUNG 9.7%
MOTOROLA 5.9%
MICROMAX 4.8%
SONY 5.8%
OTHERS 13.3%

Courtesy: IDC report on growth of mobile sales in India, 2009

Figure 1: Market share of various handset manufacturers in India in 2009

Comparative Analysis shows that the market shares of Nokia and LG fell from the years 2008 to
2009 while that of Samsung rose only marginally. This can be attributed to the growth of the local
manufacturers (18.1% of the market share) which rose from 5% in 2008 to 28% in 2009. The most
prominent local manufacturer with a market share of 4.8% is Micromax.

The Business Line in Feb 2010 reported Micromax as India‟s third-largest GSM mobile phone
vendor with a market share of 6 percent after Nokia (62 percent) and Samsung (8 percent), according
to research firm IDC. It sells anywhere from 7,00,000 to one million mobile phones every month
estimated at about `1,500 crore annually.

1.1 Company Profile

Conceptualised by Vikas Jain, Rahul Sharma, Rajesh Agarwal and Sumeet Kumar, “Micromax
Informatics Private Ltd” started operations in 1991 as an embedded software design firm.

Launched at a time when the local Indian mobile-phone market was still in the nascent stage,
Micromax mobiles cashed into this aspect and filled in the gaps left open by the International giants
like Nokia and LG. Today, Micromax is one of the leading Indian mobile handset companies with 23
domestic offices across the country and international offices in Hong Kong, USA, Dubai & Nepal
and a presence in more than 40,000 stores across the country with plans for further expansion.

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The Micromax ideology stems from its rooted belief in „Innovation‟ and delivering “nothing short
of the best”. With a futuristic vision and an exhaustive R&D at its helm, it has successfully generated
innovative technologies that have revolutionised the telecom consumer space.

1.2 Strategies Adopted

Micromax has used the theories of Blue Ocean strategy to create and capture new demand in the
rural areas of the country. It reduced the cost of the handsets to dearth cheap rates.

It has used the Red Ocean strategy to beat the competition in the urban market. They made an
efficient value-cost trade off and provided smartphones at almost half the prices of other handset
manufacturers.

1.3 Market Segmentation

Identification of the correct market segment is an important step to enter any market. The first target
segment that Micromax identified was the rural market. Micromax launched its first phone in the
rural market with a very unique USP - 30 days battery standby time. The brand was launched from a
consumer insight that most of the rural households do not get enough electricity to recharge phones
on a daily basis. With their phone prices ranging between ` 1,800 and ` 2,400 the company confined
itself to small towns and rural areas in the first 12-18 months and had 80% sales in the rural areas.

Youth in the urban areas is another target segment. The young today are price sensitive and
Micromax‟s innovative features and affordable price range has helped it capture this market. They
have leveraged the tie-ups with MTV and sponsored bollywood awards and cricket tournaments to
create awareness in the metros.

On an International front they are currently focusing on three strategic markets: SAARC countries,
Middle East and Latin America. SAARC countries like Nepal, Bangladesh etc. are quite similar in
terms of consumer needs and market challenges hence it becomes an immediate expansion strategy.

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1.4 SWOT Analysis of Micromax Mobiles
Strengths
- Innovative products and features
- Affordable prices
- Strong presence in rural markets
- Effective promotional campaigns
- Strategic alliances with IPL/MTV, etc.
SWOT
Threats
- Increasing competition from local
and international players
- Replication of business model by
competitors
Weakness
- Poor after sales service
- Weak brand image in urban areas
- Skewed product mix of low cost phones
- Perception of low-quality Chinese brand
Opportunities
- Increase penetration in urban markets
- Entry into international markets
- Foray into the sub ` 1400 price segment
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2. Promotional Campaigns of Micromax Mobiles

Promotion of the product through sales, advertising, public relations & direct marketing is a very
important aspect of the marketing mix. Thus, an integrated communication strategy requires
choosing communication options that reinforce and complement each other. Micromax Mobiles has
very effectively used television, print, events and web media of advertising to communicate with the
customers.

2.1 Khatron Ke Khiladi

“Your new Micromax mobile can take you places...Brazil for instance!”

Figure 2: Micromax 'Fly to Brazil Teaser'

After the huge success of Fear Factor‟s Khatron ke Khiladi Seasons 1 and 2, Micromax mobiles
hopped onto the bandwagon as the Associate Sponsor for the 3rd Season hosted by the Bollywood
actress Priyanka Chopra. They have launched a „Fly to Brazil‟ contest where, in order to participate a
customer needs to send an SMS after purchasing a new Micromax handset for an all expense paid
trip to Brazil and a chance to hang out with the celebrity contestants of the show. This strategy
capitalises on the trend of sponsoring TV shows hosted by celebrities and focuses on tapping the
public relations and events to promote its product.

2.2 Cricket – A Religion in India

Gaining brand visibility through sports sponsorship is slowly becoming the new marketing mantra
for Micromax. The cricketing platform provides them with an opportunity to relate with their
customers. Cricket in India cuts across all age groups, religion and topography, hence the choice for
partnership. Cricket has helped to create a brand recall among the customers.

They have sponsored a number of Cricket Events in India like IPL 2010, India-Sri Lanka-Zimbabwe
One-Day/Test series and the Asia Cup 2010. Its major sales went up during the IPL where it
sponsored the “Time Out” Section showing the Micromax mobile. Micromax by sponsoring
enjoyed a significant logo presence and exclusive branding rights at key strategic locations of the
stadium, as well as mass visibility on television.

At a time when all big brands are sponsoring one or two cricket matches, Micromax has become the
trendsetter by sponsoring 304 hours of thrilling cricket action. The company has focused on the
element of innovation to distinguish itself from the race of cricket sponsorships.

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2.3 Micromax & MTV
The deal between Micromax and the multimedia youth brand is a first of its kind in the Indian mobile
market. MTV is a brand that is synonymous with the youth and that continues to define and lead the
young generation.

The first mobile phone to hit the market under this agreement was the „Micromax MTV X360‟. The
phone was unveiled by MTV VJs Rannvijay and Anusha. The device is a music oriented handset
powered by 3D sound surround by Yamaha and Wolfson. Micromax thus aims to capture the youth
market which is passionate about music and identify with the MTV brand.

2.4 International Indian Film Academy (IIFA)

Figure 3: Aspirational campaign teaser by Micromax

IIFA is synonymous with the best in the Indian entertainment industry. Micromax is the sponsor of
the prestigious IIFA awards 2010. This was done with the aim to capture the gaze of potential
consumers and to enrich the brand visibility in the Sri Lankan & the global market.

To leverage upon the association of Micromax with the IIFA, it had come up with a promo
developed by the ad agency Lowe Lintas in which 6 lucky people, who bought the Micromax
mobiles, would get to fly to Sri Lanka for the IIFA Awards and be treated like a celebrity. The
advertising campaigns supplementing this promotion played on the human aspiration of being treated
like a star. Moreover, Micromax also unveiled an all exclusive IIFA edition of Micromax Q55 Bling
mobile phone.

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 Figure 4: Micromax Bling promoting the association of Micromax and IIFA

2.5 Micromax & MTNL/BSNL

Micromax H360 is the cheapest 3G smartphone in the Indian market. This handset has been launched
by MTNL in collaboration with Micromax. It would be available with the MTNL 3G Jadoo service
available in Delhi and Mumbai cities. The price of this new smartphone is set at ` 5500 which is
much lower than comparable handsets from rival companies. It has also launched its 3G datacards in
collaboration with BSNL.

2.6 Advertisements used by Micromax mobiles

Micromax commercials talk about the product and their features. As per Vikas Jain, Co-Founder and
Business Director of Micromax “the whole idea is that after seeing the commercial the consumer
should be tempted to visit a retail outlet to check out the product.” While the prices of Micromax
mobiles are lower than its competitor‟s price, it is not communicated in the marketing plan. It is
rather perceived as the final delight that the consumer will get.

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2.6.1 Advertisements highlighting product features

‘Beep off’ TV commercial highlighting the

usage of a micromax mobile phone as a TV
remote

‘Heavy metal of Music’ TV commercial

highlighting powerful amplifiers sponsored
by Yamaha

‘Chalo Shehar’ TV Commercial highlighting

the 30 day battery life

‘Gravity’ TV commercial highlighting the

dual CDMA/GSM reception

2.6.2 Other Ad Campaigns

„Less Tamasha more cricket‟: These Micromax ads took a dig at the IPL
parties. This campaign coupled with their cricket sponsorships really
strengthened the brand awareness which translated into more sales.

Figure 5: Micromax
ads during IPL 2010

„We are really sorry‟: The latest Micromax ads capitalise on the addiction of the youth to Social
Networking sites and movies. A recent ad shows a young boy wreaking unintentional havoc in a mall
while watching a movie on his phone while another ad shows a youth nearly missing his death while
surfing Facebook.

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 Figure 6: 'We are sorry' ad by Micromax - reinforcing its tagline: Nothing Like it

This campaign was also perceived by the advertising fraternity as an indirect way of addressing the
competition for eating into their market share in a tongue in cheek manner.

2.7 Brand Ambassadors

Micromax mobiles did not have a brand ambassador until 2010. The brand looked at attaining a more
active marketing communication. Micromax mobiles which primarily targets the youth signed on
Akshay Kumar as its brand endorser in March 2010.

They also signed in Twinkle Khanna to promote the Micromax „Bling‟ phone. Since Akshay Kumar
was already on board, it strengthened the connection. Another factor was that she had been away
from the media since the last 4 years so her presence brought the clutter breaking factor.

Figure 7: Micromax's Brand Ambassadors; Twinkle Khanna & Akshay Kumar

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2.8 Social Media Marketing
Micromax is quite active on Social Networking sites like Facebook and Twitter. All their latest
promotions, commercials and news are posted on both sites. For example, the current Facebook page
of Micromax Mobiles boasting of more than 4000 fans talks about the Micromax „Fly to Brazil‟
contest. This helps the customers to easily connect with the brand and also brings in a feature of
convenience that your phone is just a click away.

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3. Product Mix
Micromax‟s most popular models

Model Features Price

 WiFi and QWERTY

Q3 & Q7 ` 3700 / 4700
keypad with trackball.
 Dual SIM support.

 Impressive cosmetic
box design.
Q55 Bling ` 5095
 All general smart
phone features.

 Inbuilt gaming console

G4
and motion sensors. ` 2885
Gamolution
 Expandable memory.

 30 day battery back-up.

X1i  Music and video ` 1680
playing.

 Infrared remote control

X235 ` 2596
 Dual SIM support

On the product side, Micromax has a wide range of phones with different features and thus offering
variety to the customers. Micromax has been able to successfully identify the needs of customers and
design products appropriately. The X1i, 30 day battery back-up phone catered to the rural areas
plagued with electricity shortages. Also, Micromax realized that intense competition between
telecom service providers forced customers to maintain two connections, and hence it launched a
wide range of dual-SIM phones, which forms almost 85% of its product portfolio as compared to
market leader Nokia which introduced one only recently. Innovation in its products has been
paramount and this is demonstrated by new features like remote control and motion sensor enabled
handsets.

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4. Price

The company has its manufacturing facilities in China and Taiwan, where the production costs are
low, and operational efficiencies in its supply chain are high, so Micromax handsets are available at
almost half the price of Nokia handsets. As India is a price sensitive market, and most of Micromax
phones cost less than ` 5000, the price has been a major driving point in its growth story. On the
distribution side, it offers its distributors a margin of 5% as compared to 2% of Nokia, but on the
condition of no credit. Thus, it has incentivized the distributors and dealers to stock Micromax.

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5. Survey Analysis

Based on our survey among dealers of Micromax Mobiles and customers, we have come up with the
following observations:

 Price is the most attractive feature. A Micromax handset offers the same features which a
Nokia smartphone provides, but at half the price.
 54% of the respondents used different SIM cards for incoming and outgoing. They have rated
Dual SIM technology as the most sought after feature.
 Micromax‟s marketing blitz in IPL and Asia Cup helped increase its brand awareness
significantly. 65% of the respondents had heard about the brand for the first time only during
the IPL.
 85% of the respondents who owned a Micromax handset were satisfied with the performance
of the phone and perceived it as a value for money proposition.
 Micromax has about 20% share in the sale of handsets among the dealers whom we
interacted with.
 Maintaining quality is another area of concern. Micromax dealers are facing with an
average of 5% complaints.
 About 12% of the respondents perceived Micromax as a substandard handset company
supplying cheap Chinese products.
 Providing good after-sales service is the biggest challenge which Micromax faces. 18% of
the respondents were unhappy with the efficiency and the long waiting period in the service
centres. Also, customers were unhappy with the small number of service centres.

Respondent survey- Why Micromax?

9% 2%
3%
2% Price
Features
Brand Value
Quality
23%
Design
61%
Others

Figure 8: People's view on why they use Micromax

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6. References

Saxena, Rajan (2010) Marketing Management. 4th Edition, Tata McGraw Hill Education Pvt. Ltd.
Kotler, Philip et al (2009) Marketing Management: A South Asian perspective. 13th Edition, Dorling
Kindersley India Pvt. Ltd. (Pearson Education)
Dharmakumar, Rohin (2010) Micromax Mobile Advantage, FORBES India
http://business.in.com/article/work-in-progress/micromax-mobile-advantage/10472/1
www.micromaxinfo.com
https://www.facebook.com/micromaxinfo?ref=search#!/micromaxinfo?v=wall&ref=search
http://clientcomplain.com/
http://consumercomplaints.com/
http://www.unwireindia.com/

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