MICROMAX

Micromax is a telecommunications company which came to inception in 1991. the company focuses on mobile handsets. It is the 3rd largest manufacturer in the country. The company includes 14 locations: Hong Kong, Bangladesh, Nepal, Sri-Lanka, Maldives, UAE, Kingdom of Saudi Arabia, Kuwait, Qatar, Oman, Afghanistan and Brazil. The company differentiates itself from the competitors through design and innovation.

KEY PEOPLE: Rahul Sharma (Managing Director/co-founder Micromax Mobile) Vikash Jain (Business Director Micromax Informatics) Deepak Mehrotra (CEO)

Their product portfolio embraces more than 60 models today, ranging from feature rich, dualSIM phones to QWERTY, touch-enabled smart-feature phones and 3G Android Smartphone's. The company also lays special focus on the products to enhance the customer's overall experience with the device. Most of their products come with innovative packaging and bundled accessories. Globally, Micromax caters to a varied target audience having their focus majorly on the youth. Their overseas product portfolio is tailor-made to suit the needs and aspirations of the growing consumer base in the international markets.

PRODUCT PORTFOLIO:

Micromax FUNBOOK DATA cards MMX 353G 400R 352G 350G

Marathon battery range X1i XTRA X246 X223 X263 X271 X274 X288 Think innovative range Superphone range A75 A80 X259 X40 X450 X650 X600 Q55

 Multimedia range

A56 A45 A52 A50 A73 A78 A85

X283 X101 X234+ X276 X277 X291 X102 X231 X261 X55 X285 M2 X111 X265 X266 X395 X368 CDMA+GSM range GC200

 CDMA range Qwerty range

Q36 GC400 EG333 GC256 Q35 GC257

C115 Q1C E360

Q34 Q66 X78 Q55

Product attributes:

Handsets with 30 day battery back up. Handsets with dual simcard. Handsets with switching networks (GSM-CDMA). QWERTY keypad handsets. Operator branded handsets.

Some out of the box features that only Micomax has been able to provide are the handset X235 can be used as a remote control for TVs and air conditioners. G4 has has a motion sensor which can be used in gaming.

The products offered by Micromax are towards the lower end of the pricing spectrum, the company focuses on offering the most valuable features at reasonable prices. A consumer with a small budget but with needs of all the up to date features can appreciate a Micromax handset. When competitors are focussing on the features leading to escalating prices the company focuses on value for money. Micromax has adopted penetration pricing; this compels the consumer to consider Micromax products when making a decision about what handset to buy. This gives the company an edge above the competitors. Micromax specializes in entry-level and mid-segment handsets priced between Rs1,800 and Rs2,400. The company unlike its competitors focused on the rural markets before the urban market.

SOURCES OF BRAND EQUITY:

The products are value for money. The price conscious Indian consumer can enjoy great features at prices that dont burn a hole in their pockets. The price range for Micromax products is much lower when compared to its competitors. The company has many firsts to its credits. Many product attributes offered by the company have been innovative and new in the mobile handset market. Features like using the mobile as a remote control etc. have helped the company capture a wide market at the same time suit the consumers pocket. They have also launched phones that can be used as mosquito repellants. Gravity sensor phones, which can change networks with gravity. The strategy of capturing the rural markets has also helped build the companys brand equity. Maintaining an in-house R&D centre, the company has gained an edge over the others and thus built positive brand equity. Micromax has tied up with major brands. BSNL and Micromax entered into a national agreement for sale and distribution of 3G Data Cards to the BSNL subscribers. Micromax also launched mobile handsets in collaboration with MTV, these phones came with pre loaded videos and pictures from the latest MTV television series and music. The brand has high recall. As a result of 360 degree advertising the consumer knows about the brand and its attributes. This has helped the brand go a long way. The company has signed brand ambassadors like Akshay Kumar and Twinkle Khanna who are household names and people from all walks of life identify with them as well as admire them. Micromax has also banked on the fact that Indians love cricket and has sponsored several cricket tournaments. This way it has never been out of sight of the consumer. The new logo for the company conveys a very strong message in a very subtle way. The logo features a fist (punch). The company wanted to convey that they were in the market to put a punch through the competitions sales.

CBBE PYRAMID FOR MICROMAX:

FEELINGS:
Good service network: The company offers very good after sales service. Play games, Chat, E-Mail are a few features that Micromax offers at affordable prices. Branded phone: Though the company offers great features at low prices they are at times compared to the less durable Chinese counterparts. But a a few consumers still believe that its better to buy a Micromax handset which is a branded phone rathet than the unbranded Chinese handsets, which do not have any warranty.

IMAGERY:
Economical products: The product are highly economical and caters to all needs without upsetting the budget. Rural market: The company has a strong foothold in the rural market. Gender specific: The company has launched several products which are gender specific. The phone introduced by Micromax with sarvoski on it catered to women, who wanted flashy and trendy phones at low prices. The company also offers phone for men who like gaming.

JUDGEMENTS:
The best brand in the price range: The company offers the best products in the specific price range. Most innovative products: In the given price range the company offers the most innovative products, with attractive features.

PERFORMANCE:
Products features like remote control, mosquito repellant, 30 days battery life are important to consumers. The consumers think of features like these as important components in brand value. Durability: The brand is perceived to be highly durable and the handsets have a long shelf life. Value for money: The brand is is perceived to be a value for money. The company offers highly innovative products at lowest prices.

SALIENCE:
Its an economical brand. The products have all basic features and other attractive features in addition. The company product portfolio has higher depth than breadth.

RESONANCE:
The consumers are brand loyal. The brand has high engagement with its consumers.

Why Micromax above others?

The company has time and again proven to be highly innovative and given its consumers cutting edge technology and attractive features. Several new features that the company offered were never provided by its competitors. The products are available at affordable prices. They cater to upper middle-class people people who want trendy phones at good prices and also middle-class people who dont want to spend a big amount on mobile handsets. The company has a strong foothold in the rural market. Their most loyal and biggest client base is from the rural part of the country.

Market Share
Nokia Micromax HTC Samsung Blacberry Others

30% 39%

1% 6%

7%

17%

SWOT ANALYSIS:

STRENGTHS:
Effective pricing strategy. Good distribution strategy. Innovative and simple product offerings in affordable price range like dual SIM and triple SIM, long lasting battery life. Strong brand image in rural markets. Strong presence in CDMA market and strategic alliances with CDMA connection providers. The company has adopted roadblock advertising, which results in high brand awareness and recall.

WEAKNESSES:
After sales service is not good. Build quality is inferior to the existence brands, poor resolution, higher radiation level. Being perceived as a Chinese or low quality product.

OPPURTUNITIES:
Entering into overseas market. Rural telecom market is increasing at a high rate. Increase penetration in urban markets. Entry into tablet PC market.

THREATS:
Facing strong competition from local and Chinese manufacturers. Big players like Nokia and Samsung are also targeting the same segment. Limited number of variance in higher range products.

What should Micromax do for its brand equity?

Define your brand: Micromax needs to focus on defining itself more aggressively as the low cost innovative brand. Their USP is being able to offer highly innovative products. The company should focus on promoting this aspect of their brand. When a consumer thinks of an affordable mobile handset they should think of Micromax handsets. Think of your niche: The company should define their niche. Phrases like The best of.. work wonders in advertising. The company can recognise and promote their niche. One niche for them can be The best of features at the lowest of prices! Make more with fewer people: The objective of a company should not always be to reach out to maximise the number of customers. Micromax should concentrate on fewer loyal consumers and ensure retaining them and ensuring repurchases. Social media presence: One of the best platforms for promoting a brand in this day and age is social media. Several companies join social media sites like Facebook, Twitter and other blogging sites to promote their products. This is the most economical way to reach the maximum number of consumers. First mover advantage: The company has time and again taken advantage of being the first in the market to introduce various features. Micromax should continue to do this. This helps increase a market share and also develop a positive brand image. Sponsoring: Micromax should expand from sponsoring cricket events. India as a country follows cinema and television events religiously. The company should move into sponsoring various day time soaps whose viewership is closest to their target market. Events like Bollywood award shows (Filmfare, Stardust etc.) are big events; the company should look into being a title sponsor for events like these. Avoiding comparison to less durable Chinese competitors: The company should focus on campaigns like The best cellphones India has to offer. This will not only promote the brand as a durable and economical brand but also differentiate it from the Chinese counterparts.

Promotions on important Indian occasions: The company can take advantage of the traditional Indian sentiments. festivals like Diwali, Id, Holi etc. hold a lot of importance in the minds of Indian consumers. The brand can offer discounts or other promotional activities such as a gold coin with a handset of diwali. A perfect gift for your sisterson Raksha bandhan. Also weddings are big events in the lives of Indian consumers. Promotions like Stay in touch, even after your daughter is married can help promote the brand.