MARKETING STRATEGY OF MICROMAX MOBILE

DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT

OF REQUIREMENT FOR THE DEGREE
OF
MASTER OF BUSINESS ADMINISTRATION
Prepared by
UMESH SHAW

ROLL VU/MBA-IVS NO-202

UNDER THE GUIDANCE

OF

Assistant Professor, EIILM

SUBMITTED TO

VIDYASAGAR UNIVERSITY
2015
1

DECLARATION
I DO HEREBY DECLARE THAT THIS DISSERTATION ENTITLED MARKETING
STRATEGIES OF MICROMAX MOBILEHAS BEEN DONE MY ME AND ALL THE
INFORMATION PROVIDED IS CORRECT AND TRUE TO MY KNOWLEDGE.
THIS DISSERTATION IS SUBMITTED BY ME FOR THE PARTIAL FULFILLMENT OF
THE AWARD OF DEGREE IN MASTER OF BUSINESS ADMINISTRATION.
THE DISSERTATION IS EXCLUSIVELY PREPARED BY ME AND HAS NOT BEEN
SUBMITTED TO ANY OTHER INSTITUTIONS OR PUBLISHED ANYWHERE BEFORE.

DATE: 8.5.2015

UMESH SHAW
MBA (4TH Semester)

PLACE: KOLKATA

EIILM, Kolkata

ACKNOWLEDGEMENT
At the very outset I am grateful to Sir for enabling me to turn dream to reality. I would like to
thank Dr R.P Banerjee (Director). I express my deep sense of gratitude to my internal guide, Prof
CHITRESH COOMER for his help and advice during preparation of this report. Finally, I would
like to thank all others who directly or indirectly helped me to accomplish my project work.

EXECUTIVE SUMMARY

For the first time in the current year, feature phones registered static volume growth as sales were
impacted by the rapid growth of smartphones since 2013. However, feature phones continued to
significantly outsell smartphones in India due to their popularity in rural regions. Rural
consumers and senior citizens continued to prefer feature phones over smartphones due to the
ease of usability. Nonetheless, close to 207 million units of feature phones were sold in the retail
channel during 2013. Prevailing high inflation in the country impacts sales of consumer
electronics. However there are a few factors worth consideration. Firstly, Compulsory
digitisation implemented by government boosts sales of LED/LCD TVs. Secondly, International
players continue to dominate the Indian consumer electronics market. So Consumer electronics
is expected to bounce back over the forecast period. In our study we have tried to explore the
marketing strategy of Micromax mobile, which is a very popular brand in the low priced
smartphone category. The study has uncovered certain useful insights about designing the
marketing mix of smartphones.

COMPANY PROFILE
MICROMAX MOBILE
Micromax started as an IT software company in 2000 and worked on embedded platforms. It
entered the Micromax is an Indian consumer electronics company headquartered in Gurgaon,
Haryana, India.[1] mobile handset business, and became one of the largest Indian domestic mobile
handsets company operating in low cost feature phone segments by 2010. [2] As of Q3 2014,
Micromax is the tenth largest Smartphone vendor in the world
Micromax was incorporated as Micromax Informatics Ltd. on 29 March 2000.[4] They started
selling mobile phones in 2008,[5] with a focus on low pricing, in order to compete with
international brands.[6] Because of the issues of power in dewas, Rahul Sharma saw a PCO being
powered by a truck battery and decided to launch a feature phone with longer battery life. [7]
5

Micromax launched its first phone with a month-long battery back-up known as X1i. [8] In 2014,
Micromax surpassed Samsung to become the mobile phone manufacturer shipping the most
number of phones in a single quarter in India. [9][10][11] On 24 January 2014, Micromax became the
first Indian mobile company to start sales in Russia.[12] Micromax became the second largest
smartphone company in India after the launch of its Canvas 2 A110.
Micromax is an Indian consumer electronics company headquartered in Gurgaon, Haryana,
India. Micromax started as an IT software company in 2000 and worked on embedded
platforms.Micromax Informatics Limited is one of the leading consumer electronics company in
India and the 10th largest mobile phone player in the world. Over the past decade, Micromax has
pioneered the democratization of technology in India by offering affordable innovations through
their product offerings and removing barriers for large scale adoption of advanced technologies.
Micromax is currently the 2nd largest smartphone company in India. Micromax is a brand which
is close to the heart of the youth and celebrates the vibrancies of life and empowerment

INTRODUCTION OF MICROMAX
Micromax is an Indian customer gadgets organization spotted in Gurgaon, Haryana, India. It
concentrates on the assembling of versatile phones, tablets, information cards and LED Tvs. It
has 23 provincial work places the nation over and global business settings in Hong Kong and
Dubai.[5][6] Presently, the organization has around the range of 1900 workers.
In 1991 Micromax kept tabs on reselling and dissemination of equipment supplies and as an IT
programming organization in the year 2000 taking on inserted stages. In 2008, it entered versatile
handset business and by 2010 it turned into one of the biggest Indian local portable handsets
organization by offering special moderate developments. The organization has a 24% piece of
the overall industry in the cell phone portion in India according to the CMR report for April
2013.

Products:
Micromax products have become an extension of the Indian youth's lifestyle and dynamism. The
company has many firsts to its credit when it comes to the mobile handset market including the
30-day battery backup, Dual SIM Dual Standby phones, QWERTY keypads, universal remote
control mobile phones, first quad-core budget smart phone etc. The brand's product portfolio
embraces more than 60 models today, ranging from feature rich, dual-SIM phones, 3G Android
smartphones, tablets, LED televisions and data cards. Micromax sells around 2.3 million
Mobility Devices every month, with a presence in more than 560 districts through 1, 25,000
retail outlets in India.

Product detail
In 2011, Micromax entered the tablet market with the Funbook series.Micromax launched its
first Octa Core flagship smartphone named as Canvas Knight A350, under the tagline 'Can be
Furiously Fast' in January 2014 in Russia. In 2014, Micromax launched its Android One
smartphone known as Canvas A1. In November 2014, Micromax partnered with Cyanogen Inc.
to provide Cyanogen-based smartphones in India, under the brand name YU.[14][15][16] The first
mobile under the brand YU is Yureka, which is a 4G device and running on the Cyanogen OS 11,
modified version of Android KitKat 4.4.4. YU Yureka has created a record time for Lightning
Sales, 15000 Units sold within 3 seconds. Most of the flash sales of YU Yureka is finished within
first 34 seconds.[17] Micromax has released a new phone in canvas series named Canvas HUE
which has a HD AMOLED Screen at a very low price of Rs. 10,999.

While most of Micromax's smartphones are powered by the Android OS, the company does
market smartphones which operate Microsoft's Windows Phone 8.1. An official Windows Phone
8.1 hardware partner,[18] Micromax launched 2 Windows Phone handsets in June 2014, the
Micromax Canvas Win W092 and the Micromax Canvas Win W121, which are priced at 6500
and 9500 respectively.[19] However, the Canvas Win W092 variant was soon discontinued and
only the Canvas Win W121 variant is currently being sold. The Canvas Win W121 directly
competes with the Lumia 630, the Microsoft Lumia 535 and the XOLO Win Q900s, as per price
and the features. In 2015, Micromax launched Micromax Selfie, targeted on peoples who love to
take selfies which consists of 13 MP Camera on both the rear and front.

Literature Survey
Telecommunication industry
Telecommunications has been recognized the world-over as an important tool for socio-conomic
development for a nation. It is one of the prime support services needed for rapid growth and
modernization of various sectors of the economy. It has become especially important in recent
years because of enormous growth of information technology and its significant potential for the
impact on the rest of the economy. The Telecom Sector, which has the multiplier effect on the
economy, has a vital role to play in economy by way of contributing to the increased efficiency.
The available studies suggest that income of business entities and households increases by the
use of telecom services. National Telecom Policy (1999) the introduction of the New Telecom
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Policy in 1999, Indian telecom industry has witnessed exponential growth, especially in the
wireless segment. The industry has evolved as a basic infrastructure on the similar lines of
electricity, roads, water etc. The overall tele-density has increased from 4.3 in March 2002 to
78.1 in February 2012, wherein the rural areas registered an increase from 1.2 in March 2002 to
38.5 in February 2012, according to a report titled Telecom Sector in India: A Decadal Profile
prepared by the Telecom Regulatory Authority of India (TRAI). Also, the share of
telecommunication services (excluding postal and miscellaneous services), as a per cent of the
total gross domestic product (GDP), has increased from 0.96 in 2000- 01 to 3.78 in 2009 -10.
The Government has given estimates that every 10 per cent increase in access of broadband
connectivity boosts the GDP by 1.38 per cent. International comparisons (among 222 countries)
in the same report show that India has the second largest number of telephone subscribers in the
world accounting for 12 per cent of the worlds total telephone subscribers. Videsh Sanchar
Nigam Limited (VSNL) 16th Annual Report (2002) India like many other countries has adopted
a gradual approach to telecom sector reform through selective privatization and managed
competition in different segments of the telecom sector. India introduced private competition in
value-added services in 1992 followed by opening up of cellular and basic services for local area
to competition. Competition was also introduced in National Long Distance (NLD) and
International Long Distance (ILD) at the start of the current decade.
COMPETITIVE LANDSCAPE

Within the feature phone category, the leading players in 2013 included Samsung, with a
retail volume share of 21% followed by Nokia with a 19% share, Micromax Informatics
(11%) and Karbonn Mobile (9%). Both domestic players Micromaz and Karbonn were
able to gain the most share in the feature phones mainly due to the launch of a number of
affordable feature phones in 2013.

PROSPECTS

Mobile phones are expected to register a retail volume CAGR of 1% over the 2013-2018
forecast period. The projected growth rates will be lower than the growth registered over
the review period mainly due to a slowdown in sales of feature phones over the forecast
period. Feature phones are expected to register declines over the forecast period and
witness a contracting CAGR of -20% in retail volume terms over the 2013-2018 forecast
period.

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Marketing mix-4 Ps of marketing

Objective

The objective was to explore the marketing strategy of Micromax mobile. Marketing strategy
refers to the elements of the Marketing Mix-Product, Price, Place and Promotion.

Research Methodology
The data was collected through secondary sources.
Secondary data sources were the websites of Micromax and various mobile manufacturers,
catalouges of various mobiles, newspapers, magazines etc. Also other published data are used.

11

Findings:
Marketing strategy: 4PS OF MARKETING MIX OF MICROMAX
The Marketing mix of Micromax proves why Micromax has grown by leaps and bounds in India.
Micromax Mobile was founded in 1991 by Rajesh Agarwaand who used to work as a computer
hardware distributor. Rajesh was joined by three more Indians called Rahul Sharma, Sumit Arora
and Vikas Jain in 1998 as co-founders. The four joined hands in transforming the company from
a mere distributor to a telecommunication equipment marketer. And in 2008, Micromax joined
the mobile handset market.
By 2010, the company had grown to become one of the largest Indian mobile handset companies
and it differentiated itself by offering feature rich smart phones at very affordable prices. The
company has ensured it survives the market by adapting to the changing market dynamics
through the introductions of feature-rich smartphones and phones that are mostly a me too
product and enter the market at an aggressive price. The company enjoys an impressive 22%
market share in the smartphone segment in India, thanks to its excellent marketing mix.
Product in the Marketing mix of Micromax
Micromax provides a wide range of phones with different features thus serving a variety of
customers. The major differentiating factor of Micromax is that it has managed to distinguish
different unique needs of customers and offer a product that solves them such as providing rural
customers with long battery life, and providing urban customers with the best variety at least cost
with excellent quality of smart phones. The company is also coming up with new and modern
models that will provide competition to the existing mobile markers. So the company has
launched many types of dual-SIM phones (this makes 85% of the total product portfolio). The
company mainly produces android phones which have proved a huge success.
Starting from low end mobiles, Micromax has seen a huge success in their latest Canvas and
turbo series. These feature rich smart phones have established them in the league of mobile
giants. In fact sales figures show that micromax is second only to Samsung in India.
Place in the Marketing mix of Micromax

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The company employs a unique marketing strategy that targets the Indian market position. One
strategy that it used very successfully was that it targeted the rural market when it started out.
This was a unique strategy considering the fact that most companies start with the urban market
before penetrating the rural markets. The first phone to be launched in the rural market was
called Micromax X1i, a very unique brand that featured good battery backup. This hinged on the
general consumer insight that rural folks normally have problems with electricity and producing
a battery that lasts much longer would be a big success.
The success of this first phone triggered the company to make significant steps in entering the
market despite the many challenges it had to face in penetrating the rural market. The problem of
logistic was solved by setting up an elaborate distribution network comprising of 450 distributers
and more than 50,000 retailers.
One of the highlights of the companys distribution strategy is that it made the distributors pay
for the products in advance but offered generous margins as incentives in return. For those who
did not make advance payments, they received thinner margins.
However, Micromax faces stiff competition from established brands like Nokia, Samsung,
Apple, Spice, Karbon and cheap Chinese manufactured phones. Another issue which it faces
during distribution is that it is not able to match the surge in demand and is several times found
to be unavailable in the market, in case the purchase rises. Thus manufacturing needs to increase
if it wants to keep its distributor base happy.

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Promotions in the Marketing mix of Micromax

As already mentioned, Micromax has already gained traction in terms of penetrating the Indian
mobile market which currently stands at 22%. Now the company is engaged in a marketing
strategy that will help it create awareness for its products. For instance, it is trying to use
Bollywood celebrities and MTV to publicize its brand image. Wolverine fame Hugh Jackman
was roped in recently as its brand ambassador signaling the companys intentions to expand its
presence to the west and tap the overseas market in coming days.
The company has also partnered with other companies like Yamaha, which it uses to enhance
their audio experiences. It is also worth mentioning that Micromax uses online marketing, print
and TVC advertising and billboards to advertise its products. Point of purchase advertising is
also a strong feature of Micromax.

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Pricing in the Marketing mix of Micromax

Pricing strategy is at the core of Micromax marketing strategy and is aimed at providing quality
phones at an affordable price. So the company has adopted a penetration pricing strategy at both
rural and urban market. The company realizes that pricing the product at a lower rate increases
its market share and fends off the competition coming from giants like Nokia, Apple Samsung,
among others. In fact, the success or failure of Micromax is solely dependent on the pricing of
the smart phones.
The company has long term plans and wants to expand its growth to other Asian countries. It is
planning to come with an IPO in later part of the year proceeds of which it aims to incur in R&D
and setting up of state of the art manufacturing units apart from expanding its presence to the
other parts of the world.

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16

ADVERTISING STRATEGY OF MICROMAX

The strategically developed advertisement campaign by Micromax, targeting Apple iPhone might
be little cheeky but the company is anticipating good response to it. The latest print
advertisement released by the company to promote Micromax A70 android phone with the
tagline "i can afford this phone" resembles the most stunning product for apple, the "Apple
iPhone". Micromax, which is doing good business in the Indian market and has already become a
threat for Nokia. It is now targeting on Apple iPhone with the release of Micromax A70 Android
smartphone. According to the top executives of the company the advertisement strategy adopted
is not to override the Apple iPhone, but to convey the message that A70 is one among the best
android smartphones at an affordable price. Well, experts have both negative and positive
response towards this witty step taken by Micromax as some say that the advertisement will only
enhance the brand equity of Apple iPhone where others talk about the positive market share
which Micromax can gain with this cheeky stuff. The company is quite sure that the latest A70 is
to deliver good returns for them as it has many specifications and features a smartphone should
have at a stunning and affordable price. A70 is fully loaded with Android v2.2 Froyo operating
system supported by 600 MHz processor. This new mobile handset is equipped with TFT
capacitive touchscreen supporting 256K colors. The screen also provides proximity sensor for
enabling turn-off feature automatically. It is also enhanced with other features such as Wi-Fi,
17

GPS and Bluetooth. The new mobile handset also has an excellent 5 mega pixel camera which
can deliver crystal clear images which is comparable to any other smartphones. With an elegant
design and smart finishing A70 becomes a high end gadget which can even compete with Apple
iPhone. The advertisement strategy adopted will bring the latest handset in the spotlight, but the
question raised is; how long will it make an impact on the consumers. Micromax A70 was made
available in the market by Micromax one month ago, now the latest print advertisement is just to
push the product and bring it into notice again. Such advertisements are always short lived and
the impact might be sometimes negative too. Micromax has already a good market in the Indian
mobile sector, is rapidly growing and has already captured more than 10 % share. The company
which delivers around 40 affordable stunning handsets in the market is an upcoming threat for
many rivals in the sector.

SWOT ANALYSIS

1.Provide simple functions at much lower costs e.g.- Loud

speakers, wireless FM, ultra long lasting battery life
2.Regional languages support, Indian calendars, Torch
3.Most phones are dual SIM/Triple SIM phones
4.Due to Java support a lot of basic applications can be run
Strength

5. Celebrity brand ambassadors have helped the brand grow

Weakness

1.Limited market share due to intense competition and less global

presence
2.User interface for not so tech-savvy consumers compared to
Apple

Opportunity

1.Low-end phones market has become very competitive

2. Cut-throat competition has made Dual-SIM phones being
available
3.Can be used as simple second phones as well as cheaper smart

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phones

Threats

1.Threat
from
low
price
2.Other lower end phones brands

well

known

brands

Competition

Competitors

1.Nokia
Low-end
2.Lava
3.Samsung
4.Maxx
5.Lemon mobiles

Dual
SIM
phones
Guru

phones
Series
mobiles

Recommendations
The manufacturer of the Micromax phone should realize that they are targeting value customers, who want to buy
reasonable service in reasonable price. So things like durability, user friendliness and extended services to be
provided. Also their communication message should try to develop their core USP of smart service at reasonable
value.

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Conclusion

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BIBLOGRAPHY
"Micromax beomes number one mobile phone company in India". Patrika Group (5 August
2014). Retrieved 5 August 2014.
Joseph, Lison (27 June 2011) We never thought we would sell 1.8 million handsets a month:
Micromax co-founder Money DNA. Dnaindia.com. Retrieved on 28 November 2013.
https://www.gartner.com/newsroom/id/2944819
"Micromax Informatics Ltd.". tofler.in.

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 Limaye, Jayesh (13 February 2013). "Micromax, An Indian Mobile Phone Company That Got
It Right". Techtree. Retrieved 17 March 2015.
Singh, A. "Micromax: Capitalising on innovation and pricing". Retrieved 1 November 2013.
IQ India 2012 | Speakers and Panelists. Fonearena.com. Retrieved on 28 November 2013.
Dharmakumar, Rohin (27 February 2010). "Micromax Mobile Advantage". forbesindia.com
(forbesindia.com).
"Mobile Phones". 8 August 2014.
"New 'Fast' rising phone makers from China and India". ibtimes.com (ibtimes.com). 22 April
2014.
"Micromax close to overtaking Samsung in India". gsmarena.com. 22 April 2014.
[1]. bgr (23 January 2014). Retrieved on 24 January 2014.
Khurana, Rohit (27 August 2013). "Micromax Canvas Series India- Evolution And How It
Affected Indian Smartphone Market". intellectdigest.in (intellectdigest.in).

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