History Of Micromax

Micromax is one of the leading Indian Telecom Companies with 23 domestic

offices across the country and international offices in Hong Kong, USA, Dubai and
now in Nepal. With a futuristic vision and an exhaustive R&D at its helm, Micromax
has successfully generated innovative technologies that have revolutionized the
telecom consumer space.

Micromax is on a mission to successfully overcome the technological barriers

and constantly engender “life enhancing solutions”.
The company’s vision is to develop path-breaking technologies and efficient
processes that incubate newer markets, enliven customer aspirations and continue to
make Micromax a trusted market leader amongst people. The Micromax ideology
stems from its rooted belief in ‘Innovation’ and delivering “nothing short of the best”.

Micromax has a lot of “firsts” to its credit on their versatile product portfolio. It
was the first to introduce: Handsets with 30 days battery backup, Handsets with Dual
SIM / Dual Standby, Handsets Switching Networks (GSM - CDMA), Aspirational
Qwerty Keypad Handsets, Operator Branded 3G Handsets, OMH CDMA Handsets,
etc.

With a 360 degree advertising and marketing strategy sketched out, the
company has an optimistic outlook for the telecom consumer space. Currently present
in more than 40,000 stores across the country, the company plans to have an
aggressive market incursion to reach out to its customers through 70,000 operational
stores in the coming year.

One of the major aspects that contribute towards the substantial monthly
growth of Micromax is its 80% sales in the rural areas.

After building a strong presence in the rural market, where the prominence of
both subscribers and operators is rapidly increasing
 Micromax’ is now progressively moving towards establishing its foothold in
the competitive urban towns as well.

With young enthusiasts as its anchor, Micromax Informatics Limited created a

niche for itself in the telecommunication industry. Micromax ventured into the
telecommunication industry with an end-to-end solution of Fixed Wireless Devices
and Wireless Data Cards.
In the year 2008, after delivering upon the technology of fixed wireless-powering
desired products, the company forayed into one of the most predominant genres of
telecommunication – Mobile handsets. Since then Micromax has received
commendable response for its unique and interesting handsets.

Innovation, Cost-Effective, Credible and an Insightful R&D, have now become

synonymous to Micromax in the telecom vertical.
Today Micromax has become a brand which people relate and look up to for realizing
their individual device preferences and other out-of-the-box solutions.
Market Share

Micromax is currently the third-largest GSM vendor in the Indian market,

A share of 8.1%, perhaps just a few marks behind Samsung
Samsung at the second position has 10.4% control, as per market reports.
Nokia with 52.7% share is the number 1 vendor
Source : Forbes India, 27 Feb. 2010

Industary Overview:

The Mobile Phone Market in India is worth 130 million handsets annually.
While 70% market share is taken by:
Nokia
Samsung
Sony Ericsson
Motorola & L
 Nutshell Of Micromax Strategy

Corporate Level strategies:

Expansion strategy

Resource allocation: heavy investment in R&D, lately heavy investment in

brand building.

Wide portfolio catering to diverse segments.

Business Level strategies:

Unique Fusion of Cost Leadership and Product Differentiation.

Following a Frontal and Flanking attack strategy.

Products are mostly in the embryonic and growth stages.

 4 P of Marketing

Price variables Promotion variables

Allowances and deals Advertising
Distribution and retailer mark-ups Sales promotion
Discount structure Publicity

Product variables Place variables

Quality Channels of distribution

Models and sizes Outlet location
Packaging Sales territories
Brands Warehousing system
Service
 Pricing Strategy

Micromax specialized in entry-level and mid-segment handsets priced between

Rs1,800 and Rs2,400 when it started selling the devices in 2008, confining itself to
small towns and rural areas in the first 12-18 months.

Encouraged by its success, the firm expanded 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.

Price list of Micromacx Mobules in india:

 H360 Rs. 5500/-  X225 Rs. 3399/-

 Q1 Rs. 2400/-
 G4 Gamolution Rs. 4600/-
 C112 CDMA Rs. 1600/-
 C2i CDMA Rs. 2600/-
 GC255 Rs. 4500/-
 GC700 Rs. 11900/-
 Q2 Rs. 2900/-
 Q3 (Ezpad) Rs. 3600/-
 Q5 Rs. 4390/-
 Q55 bling Rs. 5500/-
 W900 Rs. 7900/-
 X113 Rs. 2399/-
 X1U Rs. 2598/-
 X211 Rs. 2750/-
 X215 Rs. 2900/-
 X220 Rs. 2300/
 X250 Rs. 3250/-
 X260 Rs. 3500/-
 X280 Rs. 3999/-
 X2i Rs. 2350/-
 X310 Rs. 4099/-
 X332 Rs. 3499/-
 X414 Rs. 5500/-
 X500 Rs. 5700/-
 X114 Rs. 1650/-
 X115 Rs. 1699/-
 X116 Rs. 2150/-
 X118 Rs. 2200/-
 X1i Rs. 2299/-
 X511 Rs. 6499/-
 X555 Rs. 7499/-
 X800 Rs. 15000/
 Product Strategy

30-DAY BATTERY PHONES

April 2008: Rs 2,249; Now: Rs 1,999 The X1i, Micromax’s first phone, had a
battery that could give 17 hours of talk time and go 30 days on a single charge.

DUAL-SIM PHONES
July 2008: Rs 1,999-12,999 For those who want two numbers but one handset.

PHONE-CUM-STEREO
Feb 2010: Rs 4,999 With 3D surround sound, fed by Yamaha and Wolfson

BLING
Feb 2010: Rs 5,500 A big hit with women, comes with Swarovski
embellishments.

PHONE-CUM-REMOTE
May 2010: Rs 2,999 A mobile that can switch TV channels and even change the
AC temperature

IN THE WORKS
A phone that can be used as a computer mouse
 Micromax deliberately made an attempt to tap the Rural interiors of the
country, since this is THE segment, where the larger pie of the cake share is….and at
an affordable price.

The limited supply of electricity was a big roadblock to the growth. And there
evolved the Technology. This led to guarantee 30-day stand-by Battery (No other
handset to compete?)

To cater to the wants of the customers to carry two handsets (to make most of
the existing on-going tariff wars amongst service operators), Micromax started
offering Dual SIM phones. Infect, existing product line consists of 27 phones, out of
which 23 are Dual SIM.

A clear differentiation was a significant factor that aided the significant growth of
Micromax brand in Indian market.
 In the versatile product portfolio

 Handsets with 30 days battery backup.

 Handsets with Dual SIM / Dual Standby.
 Handsets Switching Networks (GSM - CDMA) using gravity sensors.

 Aspiration QWETRY Keypad Handsets.

 Operator Branded 3G Handsets.
 Changing the phase of entry level.

Many ideas poured in during the umpteen brainstorming sessions that the four
conducted amongst themselves. Finally, they decided to marry mobile handsets and
rural and price-sensitive India.

Thus, the company’s first phone (the X1i in the pic priced only @ `
2150/-), was born in an environment that would transform into what would be
proudly called the second-largest mobile market in the world, next only to US, with
about 10-12 million subscribers being added every month.

And now the Company has 23 Domestic Offices coupled with

International Offices in USA, Hongkong, Dubai etc with 40,000 Stores operational &
is being aggressive to reach 70,000 Stores.

To increase penetration in the Indian telecom market, Micromax is bundling

with telecom operators such as Aircel. "Soon, we will launch a project where SIM
cards of different telecom providers will be available with different Micromax
handsets. Unless a consumer has personal apathy towards a particular service
provider, chances are he will use the SIM provided to him with the handset. This will
benefit both our brand and the service provider we tie up with," explains Jain.
 Promotion Strategy

The brand was one of the big spenders in the latest edition of IPL .

Micromax has centered much of its brand building exercise around cricket.

Micromax has taken up the title sponsorship for the entire Indian cricketing season
from May 2010.

The ads are for individual products highlighting the product features and USPs
 Audio Visual Strategies

10th Class Students to Graduation College Students

We intend to highlight the existing need of the Cell - phone usage as a

“need” & not “Luxury” since this segment thrives with Parental involvement & lots
of concerns & wrinkled foreheads amongst them due to the high frequency of their
Children being traveling to-n-fro from college to tuition classes or for Competitive
Exams. Hence, we strongly feel the reality to be presented to the Segment. In-
addition, its also plays a significant role of communication with the rising
unpredictable scenario’s on the rise..

Audio Visual Strategies (Content)

With the Student Fraternity, we intend to boomerang the segment with

customized strategy of presenting your ID card to the ‘’Outlet listed near your
college’ (no hassle of running near your homes) and avail of the ‘’x % discount’’
And extended to the All levels of Faculty of the college/school).

Women Segment

While there is no gender bias.. But Women at all ages are on the higher
%age of cellphone usage in the way of a Worried Daughter, Girlfriend, Wife, Parent.
We aren’t alien to Cosmopolitan Segment either. Hence there is Q55 Bling the limited
IIFA edition & also the Swaroskvi Elements launched by Twinkle khanna with line ‘it
Twinkles’.
 With this, we intend to bring a wave of change amongst the Gen X with
apps like Twitter, Facebook and all social networking sites with extravagant features
for the Who-is-who in the Industry.

Tie-up with Service Provider’s is essentially to make a ‘one-stop shop’

to effect the 1st time users with Phone + Best Service Provider concept and with
freebies & discount in the offering.
 Placing Strategy

 High margins to Channel Partners (20% to 30% margine).

 More Commission to those Partners who were willing to stock-
up its products.
 Cash discount for advance payments.
 Extensive dealer network.

Rural Sector The Urban

Youth

High Profile
Users