1. A BIRD EYE VIEW ON MICROMAX INFORMATICS LTD
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.
Micromax products have become an extension of the Indian youth's lifestyle and
dynamism. Like Smartphones, Feature Phones, Tablets, Laptops, Datacards,
Consumer Electronics, LED TV, Monitors, & Commercial Display Units. 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. 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.
Network & reach
With sales presence across India and global presence in Russia and SAARC markets,
the Indian brand is reaching out to the global frontier, with innovative products that
challenge the status quo.
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2. A BIRD EYE VIEW ON MICROMAX INFORMATICS LTD
Micromax was incorporated as Micromax Informatics Ltd. on 29 March 2000 as an IT
software company working on embedded platforms by the four people Mr.Rahul
Sharma, Mr.Vikas Jain, Mr.Sumeet Arora, & Mr.Rajesh Agarwal. Till 2008 they
didn’t thought of coming to mobile manufacturing and selling. It started selling
mobile telephones in 2008, focusing on low pricing to compete with international
Micromax's co-founder Rahul Sharma once saw a public call office being powered
by a truck battery because of frequent power cuts in its locale. It prompted him to
launch a feature telephone with an extended battery life. Micromax launched X1i, its
first telephone with a month-long battery back-up and came with lot of innovations in
mobiles in the gap of 2 years. And became the largest Indian domestic mobile
handsets company by 2010 and 10th
largest mobile phone player in the world.
In 2014, Micromax's sales exceeded those of Samsung to become the mobile
telephone manufacturer shipping the most telephones in one quarter in India. On 24
January 2014, Micromax became the first Indian mobile company to start sales in
Russia. Now in terms of brand it is the 3rd
largest mobile brand in the India which is
trusted by the customer in the span of 5 years.
Now Micromax come in television market with the launch of LED TV 24-inch to 55-
inch range. Micromax has set up a one lakh square feet manufacturing. It has
production capacity of 2,000 LED per day. Led TV of 24 inch from Micromax market
price 15,990 and full HD smart TV 55 inch 1,29990 . Recently it moved to₹ ₹
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3. A BIRD EYE VIEW ON MICROMAX INFORMATICS LTD
3 VISION, MISSION & VALUES
To be amongst the top 5 mobile device brands in the world.
We will adapt and innovate to provide unique consumer experiences, based on:
• Strong, engaged customer communities
• Insightful analytics
• Win-win partnerships
• World-class capabilities
Putting the customer first when taking decisions
We don't invest in things that don't matter to customers
Identifying opportunities, being nimble, passionate and taking risks
Being respectful, collaborative and embracing diversity
Managing by facts, cross-functional working, end-to-end ownership, and speed /
Creative disruption, learning, and embracing change in all dimensions of business
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4. A BIRD EYE VIEW ON MICROMAX INFORMATICS LTD
Micromax has been focused in earlier stages in rural areas with feature phones
because when we consider Indian market major population lies on rural area which is
a huge market by itself. But know we can see change of strategy by moving towards
Smartphone's which have great response over the entire Indian market. As per records
of 2013, Micromax Smartphone’s is second best selling there after Samsung, in India.
Following are the main marketing strategies which Micromax used;
1. Sponsoring Indian Cricket Matches
Micromax knew that Indian people love cricket more than any other game and serial.
So they took the title from Hero Honda and did sponsor a lot of series. With this
strategy they reached to millions of customers. In 2014-15 they paid 20m INR to
BCCI per match. So they know where and why they are putting that much amount.
2. Reach to Indian market
Soon after launching their own mobile handsets in the market they started opening
outlets all across Indian cities. They opened outlets and service centers more
aggressively than any other mobile company even beating Nokia. Through this they
become a household name in all cities and quickly made its own identity.
3. Right product strategy
Micromax knows what Indian wants. Sasta and Tikau. Who understands this line
more than Indian and this is what Micromax does. Right product at right time at right
price. Of course their product’s quality is lesser than that of Nokia and Samsung but
the product lives of all companies are same. Who keeps a mobile handset more than
one or two years. Every quarter they bring a new handset, only competitor in terms
of launching handset is Samsung. They have product for all categories and for all
type. Now they have started selling product in Russia as well.
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5. A BIRD EYE VIEW ON MICROMAX INFORMATICS LTD
4. Friendship with Android
This is the major factor which helped Micromax to be big and Nokia to lose.
Micromax didn’t invest lot of money in R&D just like Samsung and Nokia. They
were fully dependent of Open source Android. They do customization and launch it
in the market. As Android has almost 60% of entire smartphone market share their
mobile handset was a obvious choice for middle class family.
5. Introduction of Celebrity
Huge Jackman and Twinkel Khanna helped Micromax to increase their sales,
absolutely not. During our thesis one of my batch-mates was working on Celebrity
and its impact of brand image. I don’t think he/she took example of Micromax but
Micromax hardly took help of any celebrity. They brought Huge Jackman but it was
a flop concept. He came on TV ads for just few months and vanished. So I don’t
think Micromax is thinking about another celebrity in current scenario. If you can
remember AB sir came in Zen Mobile ad, Farhan Akhatar is brand ambassador of
Intex mobile and Hritik Roshan is of OPPO. Did these brand succeed in the market?
Hardly no. So I don’t think introduction of celebrity was a major factor in making
Micromax big and gaining market share.
6. Target marketing
Target on women
On the occasion of Mother's Day, Micromax announced the launch of its latest
Android phone targeted at women.
Target on youth
As smart phones are future of telecommunication industry, Micromax has started
focusing on it strongly. Micromax has provided the cheapest tablet in market to
draw the attention of youth.
Target on Professionals
Professionals usually keep two phones in today’s life one for Professional use & one
for Personal use. So Micromax lunched Dual SIM mobile phones.
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6. A BIRD EYE VIEW ON MICROMAX INFORMATICS LTD
Micromax first entered as hardware distributor and gradually focused to the mobile
handset segment. With a diverse and innovations and innovative marketing strategy,
this mobile phone brand succeeded in nurturing its own identity in the telecom
market. These are the some example of their innovations;
• First Long Battery Life Phone with 30 days battery back up
X1i Marathon Battery phone with 30 days standby time & 17 days Talk time
• First Universal Remote Control Phone
X235 With Universal Remote Control for TV, DVD, AC in your phone
• First Dual SIM Dual mode active Phone (GSM+CDMA)
Micromax GC700 is the first GSM + CDMA Mobile phone
• First Superfone with Gesture Control
Created a new category called ‘Superfone’ with Gesture Control,
powered with 1GHz dual core NVIDIA Tegra 2 Processor
• First Women’s Line of Devices
Q55 Bling phone- First women’s phone with a swivel form and
Swarovski navigation keys.
• First phone with built-in blue tooth
Micromax X450 Van Gogh – A stylish phone that integrates a detachable
Bluetooth headset in its sleek design
• First Gaming Device
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7. A BIRD EYE VIEW ON MICROMAX INFORMATICS LTD
G4 Gamolution phone with motion sensor gaming like Wi-fi wih touch
The success of any Smartphone maker is a direct proportional to the number of brands
it has created for its products. Micromax is planning to launch an IPO of 2.15 crore
shares to raise around Rs 2270 million.
Micromax, according to IDC, has a 4.1 percent market share in India and is now
valued at over $1 billion. M Financial, Citigroup, Edelweiss and Nomura are the book
running lead managers to the issue.
For the year ended March 2013, Micromax had sales of 2,400 crore on selling over
85 lakh handsets, with a net profit of 200 crore, as against revenue and profit of 350
crore and 35 crore respectively for the previous year.
6 SWOT ANALYSIS
Launching of new products in market frequently.
Innovative & Featured products.
Low selling price of products.
Effective promotion campaigns
Most phones are Dual/Triple sim phones
Micromax has still not been able to establish itself well in the urban market.
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8. A BIRD EYE VIEW ON MICROMAX INFORMATICS LTD
Micromax has a manufacturing unit set up in china which has sink the name of
Total turnover is less than Samsung.
It has much not good brand value the customer mind as it’s competitors have.
Since Micromax has not yet entered urban market, it has a very huge opportunity to
establish itself in urban market.
Micromax has capacity to make production at global stage. it establishes itself in the
It should entered in laptop/computer market.
Micromax faces a tough competition from these players Samsung, Sony etc.
Micromax’s business model has been replicated by many new players which again
pose a threat to Micromax.
Customer assumes it’s product as china product.
Low price phones from well known players
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9. A BIRD EYE VIEW ON MICROMAX INFORMATICS LTD
Micromax has been focused in earlier stages in rural areas with feature phones
because when we consider Indian market major population lies on rural area which is
an huge market by itself. But know we can see change of strategy by moving towards
Smartphone's which have great response over the entire Indian market.
Micromax succeeded in targeting right groups in the segmented area of urban and
rural. That is low income group, youths, professionals and females by providing them
or offering them different set of featured mobiles. Like X1i Marathon Battery phone
with 30 days standby time & 17 days talk time, Micromax GC700 is the first GSM +
CDMA Mobile phone, Q55 Bling phone- First women’s phone etc.
Focus on urban market specially youth 18-25 years. As smart phone is going to be the
future of mobile market, Micromax has started focusing on smart phones as well as
tablets and replacing bigger players by offering at low price with best quality and
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10. A BIRD EYE VIEW ON MICROMAX INFORMATICS LTD
8 Change in Company Logo
Micromax unveiled its new punch logo. The new logo was selected from list of logos
submitted by the participants in creative hunt to revamp logo contest, in association
with Talent house India. The new logo was revealed at the Micromax Asia Cup 2012,
during the India vs. Pakistan match on Sunday, March 18, 2012.
The contest targeted the design community across the virtual world and students from
over 150 colleges and design schools. The contest ran for a span of 2 months
registered over 2500 entries by more than 1500 participants from across the globe.
Out of the entries received, Eric Atkins of USA was announced as the winner of the
contest.The winner of the online contest was rewarded with a MacBook Pro and
recognition on the Company’s website. The entire Micromax branding was revamped.
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11. A BIRD EYE VIEW ON MICROMAX INFORMATICS LTD
Micromax mobile manufacturer is putting up some tough competition for big brands
like Samsung, Lava and Sony as the latest numbers from the International Data
Corporation (IDC) show.
The Q2 numbers for 2013 are out and what is noticeable is that Samsung, which in Q1
of 2013 had a market share of 32 percent, is facing some serious competition from
home grown vendors such as Micromax. Samsung is still number one in the Indian
Smartphone market but its share has fallen to 26 percent.
Samsung is the biggest challenger to Micromax. Micromax also shipped 2 million
devices this quarter and its Canvas range has done well to boost the company’s
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12. A BIRD EYE VIEW ON MICROMAX INFORMATICS LTD
Samsung was formed in 1938 by Lee Byung-chull as a trading company based in Su-
dong. The small company started as a grocery, trading goods produced in and around
the city as well as its own noodles. The company grew and soon expanded to Seoul in
1947 but left once the Korean War broke out. After the war, Lee expanded in to
textiles and built the largest woolen mill in Korea.
The successful diversification became a growth strategy for Samsung, which rapidly
expanded in to the insurance, securities, and retail business.
LAVA International Ltd is one of the fastest growing mobile handset companies in
India. Established in 2009, Lava has emerged as a dominant player in the market;
having consolidated its position amongst the top 3 Indian brands in slightly more than
3 years of its market presence. With "Create Possibilities" as its guiding principle,
LAVA has embarked on an ambitious journey of empowering every human with
quality innovative products.
10 Key of success
Two things I felt Micromax is good at are Marketing and Understanding Consumer
requirements. They were completely successful in marketing their Brand as different
class from similar counterparts who also do same thing as micromax does. Silver
lining for their campaign is bringing in Hugh Jackman as brand ambassador.
Following are the reason for their success.
• Good technology
Originally, the company sourced all its mobile phones from China. However,
since April 2014, they have started manufacturing mobile phones and tablets at
their facility in Rudraprayag, Uttrakhand. Even smart phone giant Apple also have
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13. A BIRD EYE VIEW ON MICROMAX INFORMATICS LTD
manufacturing its plant in china(Foxconn) Labor and raw materials comparatively
less in china.
• Low price
Delivering the right value at the right price seems to be the core of the company’s
strategy. It does this by ensuring it has enough offerings in a hyper-competitive
market and basing its products on off-the-shelf technology (which is always
cheaper than a proprietary one).
They used strategies of getting involved during cricket matches where all Indians
love to watch cricket. And they spent huge amount on tv advertisement rather in
Micromax never stopped there innovation in the products. They didn’t bother
about whether it sells in market or not. This made them known to the public and
they tasted the successes.
• Indian Manufacturer
As it is Indian company it gained the favor of all Indian citizens.
Improve in customer service centers
Adopt advance Technology
Improve in Smartphone
Think about diversification
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14. A BIRD EYE VIEW ON MICROMAX INFORMATICS LTD
Support “make in Indian”
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15. A BIRD EYE VIEW ON MICROMAX INFORMATICS LTD
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