Marketing Strategy of Micromax - Essay Example

The plan addresses following marketing challenges: To position In the mind of customers as their preferred brand S To concentrate more on potential urban and youth market S To make a global presence In the market SITUATIONS ANALYSIS Analyzing current situation through C framework: Currently MicroVAX is dominating the rural market. Initially the marketing strategy of MicroVAX was to target rural market. They are basically catering to the need of the customers of the rural area.

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For example the first mobile MicroVAX introduced in rural area was having the battery backup of 30 days which was catering to the need of the rural market of inconsistent power availability. COMB I TORSO MicroVAX knows that there are many established brands in Mobile Phones’ industry like Monika, Samsung, LEG and several other local as well as Chinese manufacturers . Some major competitors and their strategy and strengths are identified as below: S NO K I A – Monika is the leader in the mobile phone industry in India (38% market share).

It is dominating the Indian market from years. Recently it is facing problems to retain its growth and sales. But the pioneer is working hard to get out of this. For the same reason Monika is going to use operating system of software biggie Microsoft. So it is expected that Monika will try to regain its lost market share. S S A M S U N G – Samsung has emerged as a very healthy and prominent competitor in the market. Samsung is backed with the high quality and professional team in the R area.

Innovative products specially smart phones and Galaxy series from Samsung are ruling in the market. So it is expected that with the increasing demand of mobile phones Samsung will try to retain and increase its market share. A P P L E – Apple is one of the most major competitors in this industry. Slick, stylish and innovative phones of Apple are driving crazy to its users. Apple is aggressively entering Indian market with its amazing phone series. SO HTH E R DO M SEES T P LAY E RSI – other players like Carbon, spice, Lava etc have more or less the same market strategy.

S CHI IN E S E M A NIX F A CT U R E RSI – Some of the Chinese manufacturers have already entered the Indian market. These manufacturers have priced their mobiles very low. So these manufacturers are expected to grow as with the demand. Various comparative analyses show that the market shares of Monika fell drastically while that of Samsung rose impressively. Besides Samsung growth, market also witnessed the growth of the local manufacturers (36% of the market share). The most manufacturer with a market share of 7% is M ICC R O M AX .

Lava 8% Others 11% Spice Carbon Micro Max 45% Others 4% Domestic Monika 38% Samsung Courtesy: IDS report on growth of mobile sales in India, 2011 Figure 1: Market share of various handset manufacturers in India in 2011 COMPANY Visas Gain, came together and decided to diversify their IT hardware distribution business and start making mobile phones. The move towards selling handsets was a natural progression. With a Cost Leadership Business strategy MicroVAX entered into Indian rural market. And within 3 years of operation they have become the 3rd rarest selling company in India.

MicroVAX is planning to launch an PIP of 2. 15 core shares to raise around RSI 2260 million. The major part of the money raised will be used in setting a new manufacturing plant in Tamil Nadia and the rest in acquiring additional market share. CONTEXT India is the second largest and the fastest growing telecoms market in the world in terms of number of wireless connections, according to the Telecoms Regulatory Authority of India (the “TRAIT”). Currently around 250 million handsets are sold annually. By 2014, it is expected to grow to around 400 million handsets.