Category Factors (PESTLE) Micromax LED TV

Technological
With in-depth understanding of rapidly changing consumer preferences coupled
with the use of advanced technologies, Micromax has been able to differentiate
itself from the competitors through innovation and design. It took some 6 years
for this new company Indian company to enter the domestic TV market and win
this area with its great-selling devices. In less than a decade of existence in the
Indian markets this company was able to take the battle on with the tech biggies.
Samsung, Nokia, Apple and others with tons of experience and loads of smart
gadgets have been for a run for their market share. These companies also
introduced buyback schemes on their premium and budget products this year.
But due to its cheaper products Micromax had no worries as far as its products
were concerned.
Micromax Electronic product has high technology. Micromax always research and
makes for new features for the product. Every new product has new features,
better than the old ones and good design. SMART Television Micromax is the best
one of the best televisions now. It has a lot of features such as SMART
interaction, can access internet, can play games without controller, do not need
remote anymore, and we can also use our smart phone (Micromax).
Political Over the last couple of decades India has been the epicentre of consumer
demand fuelled by a phenomenal GDP growth. While demand increased across
all sectors, demand for high technology products, specifically electronic products
has registered significant growth and going by current estimates, the demand for
electronics hardware in the country is projected to increase from USD 45 billion
in 2009 to USD400 billion by 2020 (Source: Task Force Report).
The estimated production will reach USD 104 billion by the year 2020, creating a
gap of USD 296 billion in demand and production. This creates a unique
opportunity for companies like Micromax, which are in the ESDM (Electronic
System Design & Manufacturing) sector to look at India as their next destination
to cater to the domestic Indian demand as well as act as an exports hub.

Accordingly, the Government has initiated several initiatives for the development
of electronics sector in the country. The Government has recently approved
National Policy on Electronic (NPE). One of the important objectives of the NPE is
to achieve a turnover of about USD 400 Billion by 2020 involving investment of
about USD 100 Billion and employment to around 28 million by 2020. This
includes achieving a turnover of USD 55 Billion of chip design and embedded
software industry, USD 80 Billion of exports in the sector. Moreover, the policy
also proposes setting up of over 200 Electronic Manufacturing Clusters. Another
important objective of the policy is to significantly upscale high-end human
resource creation to 2500 PhDs annually by 2020 in the sector.

Several other policy initiatives have been approved in last few months. These
include providing very attractive financial investment in electronics
manufacturing and providing preference to domestically manufactured electronic
goods in all Government procurement as well as all those electronic goods whose
use has security implications for the country. To address the issue of
infrastructure, a scheme for Electronics Manufacturing Cluster provides 50% of
the cost of upgrading infrastructure and logistics as grant in aid from
Government.
Also to promote indigenous manufacturing of TVs, Basic Customs Duty (BCD) has
been reduced to 0% on the following:

LCD, LED or OLED TV Panels; Colour Picture Tube.

Specified parts of LCD and LED TV Panels (including open cell, plate diffuser, film
diffuser, back light unit module).
Due to governments above vision and initiatives Micromax said it will invest Rs
300 crore over the next year to set up three manufacturing units in India. The
move is to ramp up domestic production and reduce dependence in imports from
China. The three factories will be set up in Rajasthan, Telangana and Andhra
Pradesh providing employment to some 3,000-3,500 people in each factory.
Micromax co-founder, Rajesh Agarwal said, "This is more than 'Make in India', it's
about making India a hub for electronic manufacturing as our electronics (import)
bills will overshoot our crude bills in the next few years given the heavy demand.
Category Factors(PORTER)
Category Capacity

TELEVISION MARKET IN INDIA:

Television is one of the major mass media of India and is a huge industry and has
thousands of programs in all the states of India. Today India boasts of being the
third largest television market in the world and approximately half of all Indian
households own a television.
LCD Television market share is around 6.6% of the total CTV market. O Due to
sleeker and better picture quality models in the television market, demand for
LEDs (Light Emitting Diode) and LCDs (Liquid Crystal Display) has grown
tremendously. Also, lesser power consumption and advanced features have been
other factors behind the surge in demand for LEDs and LCDs.
FOUR SUB-GROUPS OF THE MARKET
The television market has been divided into four groups namely: 1. The Upgraders
2. The First-time buyers 3. Multiple-set buyers 4. Replacement purchasers
The Upgraders: Upgraders segment comprise of those buyers who have
upgraded from LCD and CRT models. Primary reason behind up-gradation is cable
and satellite boom, cheap and advanced new technologies and internet
dependence leading to increased demand of smart gadgets.
The first-time buyers: This segment constitutes of buyers who are buying a LED
Television for the first time. Brand loyalty is not very high but focus is towards the
brand offering the latest and consumer friendly technology. Price also plays a
major role in decision making.
Multiple-set buyers: This segment represents people buying more than one set.
Main consumers are joint families with the need to own personnel television sets.
Price is the most important purchasing factor combined with lookout for a high
tech product.
Replacement purchasers: This segment usually trades in old CTVs for new
ones. It forms around 12% of the market and holds immense potential for the
future. With increasing disposable incomes and the introduction of new models
and declining prices, replacement demand has surged over the years.
According to the industry experts, with the entry of Micromax in the television
sector, the sector is likely to become more competitive. This is because Micromax
has a reputation of flooding the market with devices in each possible budget
category. Some analysts disapprove the entry of Micromax in the television market
because it is believed that the market is at saturation stage.
Factors will might lead Micromax to success:

Prices lower than its competitors.

Well-established distribution network.

Ever-growing demand for LEDs.

Replacement buyers augmenting.

Good-quality products.

Brand Image.

Manufacturing factory situated in India.

Current rivalry in category COMPETITION IN THE TELEVISION MARKET

Major players in the overall television market are Samsung, LG, Sony and
Videocon.

Price Comparison
Major Players
Samsung
LG
Sony
Onida
Micromax

40 Inch Smart TV Price

37,879
45,499
79,900
34,690
29,989