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Micromax Marketing Strategies Analysis

1) Micromax was founded in 1991 and initially operated as a distributor of computer hardware. It later expanded into telecommunications equipment and launched its first mobile phones in 2008, targeting the rural Indian market with an emphasis on battery life. 2) Micromax built an effective distribution network of over 50,000 retailers across India to sell its products. It offered cash discounts to encourage advance payments from dealers. 3) The company has grown its market share in India significantly in recent years and now competes with major brands like Samsung and Nokia. Micromax focuses on developing affordable smartphones and features for price-conscious consumers.

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0% found this document useful (0 votes)
14 views22 pages

Micromax Marketing Strategies Analysis

1) Micromax was founded in 1991 and initially operated as a distributor of computer hardware. It later expanded into telecommunications equipment and launched its first mobile phones in 2008, targeting the rural Indian market with an emphasis on battery life. 2) Micromax built an effective distribution network of over 50,000 retailers across India to sell its products. It offered cash discounts to encourage advance payments from dealers. 3) The company has grown its market share in India significantly in recent years and now competes with major brands like Samsung and Nokia. Micromax focuses on developing affordable smartphones and features for price-conscious consumers.

Uploaded by

Pranav Patel
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

A Project On Marketing Strategies Of

Submitted By: Amit Chandnani (NR11019)


Pranav Patel (NR11112) Submitted To: Prof. Sharif Memon Rishi Shah (NR11143) Jignesh Tejani (NR11160)

History

Found in 1991 by Rajesh Agarwal . First Business as Distributer of Computer Hardwares. In 1998, Sumit Arora, Rahul Sharma and Vikas Jain

joined Micromax as co-founders.

The company branched out from a mere distributor to a marketer of telecommunication equipments. In 2008 Micromax ventured into the mobile handset market.

Competitors
1.

2.
3. 4. 5. 6. 7. 8.

Nokia Samsung Sony Maxx Karbonn Spice Blackberry Apple

Target Market
Youth Q3 M2 Fashion Savvy Women Bling Professionals A78 Q80

Data of last 2 years

Market Share
Share in %
2.8
3 4 5.5 5.9 6.9 39 2.2 2.1 Nokia Samsung Micromax BlackBerry LG G'Five Karbonn Spice Maxx Sony Ericsson

17.2

1. Creating The Base

It was in 2008 that Micromax ventured into the mobile handset

market.

The brand wanted to create a base before taking on the large players . Hence as a go-to- market strategy, Micromax concentrated on the rural

market first.

It was a different move altogether since most of the marketers tend to concentrate on the urban markets then move to the rural markets. Continue..

1. Creating The Base

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 .

2. Establishing the Effective Distribution Channel

According to a report in Forbes India ( March 5,2010), Micromax created a distribution network comprising of 34 super distributors, 450

distributors and around 55,000 retailers.

The brand could also take advantage of the inroads made by other brands into advantage.

3. Offering the cash Discounts.

One of the highlight of their distribution strategy was that

Micromax managed to make these dealers pay in advance by


offering them more margins.

According to the news report, Micromax managed this hurdle

through this strategy of more margins for advance payment.

It is not a new strategy to offer such kind of discounts for advance payments (cash discounts), but to make a retailer

accept such an offer is indeed a remarkable feat.

Nothing Like Anything- Value 4 Money

Nothing Like Anything- Value 4 Money

Nothing Like Anything- Value 4 Money

5. Product Development

Launched Firsts in the Market 1. 30 Day Battery Life 2. Affordable QWERTY phones 3. Affordable Double Sim Phones 4. Affordable Anoroid Phones And Many More.

6. Brand Building & Promotion

Micromax has invested heavily in brand building.

The brand is one of the big spenders in the current IPL.


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

It was one of the principal sponsors of the South Africa VS India


ODI series in 2010. Ads on Social Networking sites like Facebook

Tying up with MTV etc.


Sponsoring concert of Bryan Adams in India

7. A Big Marketing Move

Micromax roped in the Bollywood Action hero Akshay Kumar as the

brand ambassador.

This move is going to boost the brand recall of Micromax to new heights.

Akshay Kumar has strong equity both in urban and rural markets.
The association with such a big star will also have a positive impact on the image of Micromax.

The brand can now overcome the perception of a low price product.

Critical Analysis

Though they have promoted the brand, creativity was missing. For Example, Micromax Facebook, Gravity, MTV, They only talked about the product n thats it. So Lack of Creativity.

Critical Analysis

The new Gamolution handset was supposed to be a game changer for Micromax.

But the campaign was a big let down. With a star like Akshay, the brand could have done much more rather than some funny noises and acrobatics.

Recommendations

Micromax now have a wonderful chance of moving up the ladder. With a good product range, reasonable pricing base and a high profile celebrity, the brand could have positioned itself as an aspirational brand. Instead of also ran ads that lack any brand vision,

Micromax would do well if it could bring in some class


in their campaigns.

Recommendations

The brand should also move from a product oriented ad

campaign to a brand building mode.

Micromax as a brand should be developed focusing on the core brand values like innovation and value orientation.

When the product range widens, it may not be practical to


sustain individual campaigns. So it is time for Micromax to position the Family Brand and

develop a brand identity.

Thank You.

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