marketing strategy of micromax pdf
Marketing Strategy for 2019 - Marketing Plan PDF for 2019 - This is the ultimate marketing strategy guide for 2019. (Ed. Until recently, economists studying economic development have tended to consider it a universal process, or focussed their attention on common aspects. Joydeep was reminiscing about his early days at Micromax, when it felt like he had been, thrown into the deepest end of the swimming pool with so many things to do. Subsequently, the revenues earned from that, location would be reinvested in that region, as the company philosophy stated that the. The target consumer was youth of this, country who always looked for innovations that were affordable and directly addressing. this segment. According to Prabhu, lean and agile business practices are internal or supply-side focused; they pursue cost, efﬁciencies or responsiveness as an end goal. In the last two and a half years, a large number of 'emergent users' in India, have adopted WhatsApp. By 2010, the company began to work in full operations and currently, Micromax is the 2nd largest smartphone company in India and the 10th largest mobile phone player in the world. According to market intelligence ﬁrm IDC, Micromax shipped 2.58 crore handsets, including both, smartphones and feature phones, during calendar year 2013, up from 2.19 crore handsets during, 2012. The marketing philosophy at work seemed to imbibe market changes and, challenges. As of now, the brand provides more than 60 models with different and exclusive features. He. The company employs a unique marketing strategy that targets the Indian market position. Let us start the Micromax Marketing Mix & Strategy: The product strategy and mix in Micromax marketing strategy can be explained as follows: Micromax aims at using innovations and advance technologies in its products to provide its customers the latest experience. Comment on the dynamics of innovation at Micromax: Does it revolve around a, . It was model-based sourcing: Micromax would come up with an idea and give it to the. The company therefore is, continuing to work diligently on consumer research to provide the best designs with, matching features at reasonable prices. The signiﬁcant improvement in Micromax’s performance and market share gain, can be attributed to the company’s “value for money” proposition and by placing its, products with speciﬁcations similar to that of foreign brands, but at a signiﬁcantly lower. .] Just like model-based sourcing followed by, Micromax right in the beginning, distributor as stakeholder was a highly innovative concept, with demand-side focus enhancing the affordability, quality and sustainability of their, experiment continually and creatively engage people who are typically left out of the. After setting up successfully in India, Micromax is expanding globally. The R&D focus in these markets borders on reverse engineering which is conveyed to the. Contributions from eighteen experts in their fields consider the framework of sectoral systems of innovation to analyze the innovation process, factors affecting innovation, the relationship between innovation and industry dynamics, changing boundaries and transformation of sectors, and the determinants of the innovation performance of firms and countries in different sectors. A three-pronged strategy seemed to emerge with performance, design and, organizational architecture as the key pillars driving the Micromax philosophy, looking at, replacing the price, product and place deﬁnition in the original marketing mix. Though the mobile market was already dominated by players like Samsung, Nokia, Micromax still took a bold step of introducing the new mobile handsets in the Indian market. Marketing mix is the general concept in marketing that still used in business today. Strategic optimization could result from bridging the gaps in performance, infrastructure and organization design, which came naturally to this marketing-savvy mobile maker. brand to a leadership position in India and overseas markets, in 2013 and beyond? National Innovation Systems: A Comparative Analysis, Economic Development as a Learning Process: Variation across Sectoral Systems, Mastering the Dynamics of Innovation: How Companies Can Seize Opportunities. The names and other brand information used in the Marketing Mix section are properties of their respective companies. Here the instructor has to focus on the unique marketing, philosophy at work, bereft of a deﬁned structure or process or budget, prevalent in global, companies. Nelson, R. (2011), “Economic development as an evolutionary process”. In terms of country of origin preferences, one would agree that, India was below American, Korean and European brands but was preferred to the Chinese, As long as Micromax’s ambitions were limited to India, they had Indian cricket and, Bollywood celebrities like Dhoni, Akshay Kumar and Twinkle Khanna (, their products, and the use of such celebrities allowed them to rise to the top of the Indian, brand space. On product quality, it was conﬁrmed that the plants they were, associated with also manufactured handsets for all global majors. Study level/applicability Here students will take up opposing stands – one supporting the existing, philosophy, while the second school of thought will propose a more structured and decisive, market expansion policies used by multinational companies. Rajesh had been instrumental in, advocating innovative product strategies, business restructuring and channel, management as the building blocks that created a strong base for the organization over the, One of Rajesh’s neighbours in the Pitampura neighbourhood of West Delhi was Rahul, Sharma, the Executive Director and driving force behind Micromax’s commendable, position in the Indian mobile handset market. Brands including Apple, Samsung and Sony were a big threat to Micromax in this segment. innovation, would fulﬁl the goal of long-term growth in India and overseas markets. Internal challenges came from imitators who simply, copied existing technologies and product designs and launched them at the lowest, possible prices. technology integrating the smartphone, tablet, TV and a PC experience into one gadget. Expected learning outcomes comparison in features). ). Katz, J. speciﬁcations’ were more value conscious than brand conscious. Phablets: Micromax has also extended its arm in the field of Phablets and has introduced Fantabulet. According to the founding philosophy, there were three kinds of consumers: “First Timers, Replacement(er)s and Upgraders”. Their formula was simple: offer consumers the handsets they wanted at some of, the lowest rates in the market. the main differences across sectoral systems. At the same time, Micromax offered to supply distributors regularly to keep, inventories down, so distributors did not have to pay out large amounts upfront or have a, lot of money committed, so they need not keep huge stocks of Micromax at one go of one, variant. For the emerging markets, it was important to optimize the. Suddenly, however, all this hard work was under threat, as Nokia decided to exit. build and sell the whole thing themselves and sell it for 40 per cent less than the Nokia 32. and consumer needs in these countries were similar to those in India. In conclusion, it is recommended that students/participants suggest ﬁnancial growth as the true outcome, of the Jackman campaign. The codification of marketing strategy analysis in terms of three strategies, four boxes and five forces 58 The search for generic rules for success amidst diversity 60 Models of competition: game theory versus evolutionary ecology 62 Characterizing marketing strategy … For example, the idea to provide a mosquito repellant sonic, application in a mobile phone for the rural consumer is true innovation as compared to a camera, with multiple photo burst options’, said Sharma, ED Micromax Informatics Ltd. (Excerpt of an, Joydeep realized that the strategy of identifying the target group and then customizing the, product around them seemed to have worked well with the company and the Indian. it needs effective marketing strategy to attain profit and improve its development in Chinese IT market. Supplementary materials This article claims that catching up is a learning process that requires a long time and often differs significantly across instance, Micromax already has a rapid turnaround time with its product line [. 5 2015, pp. At this juncture, Joydeep had to. actual product attributes might be marginally different from the original product. Perhaps, Joydeep was staring at marketing strategy innovation. As Micromax handsets are much on the low pricing side, manufacturing in China provided it a cost effective. Sales had been impressive during the traditional festive season of Navratras, Pongal, and Durga Puja, in India, with Micromax mobiles and tablets being heavily subscribed as, popular corporate gifts, and the production team was still processing the tie-up orders in, addition to the retail ﬂare-ups. The core identity remained unchanged through the, Evidently, CMO Pal had achieved what he hoped for in this new campaign [. Please contact your library to gain login details or email email@example.com to request teaching notes. Marketing strategy at Micromax Informatics Ltd. A strong symbol can provide cohesion and structure to an identity, A diagrammatic representation of the model. You can use the marketing strategy as a stand-alone tool, as part of a marketing plan, or as Tushman, M. and Anderson (1986), “Technological discontinuities and organizational environments”, Viotti, E. (2002), “National learning systems: a new approach on technological change in late. The hyperlink for the electronic media advertisement: India’s second largest and home-grown smartphone maker Micromax posted a staggering 130, per cent year-on-year jump in turnover for FY14 to Rs 7,141.23 crore, according to the company’s, 2013-2014 balance sheet ﬁled with the Registrar of Companies. The, change in perception created by using Hugh Jackman as a brand ambassador was vital. A sales and marketing strategy is the process of how a business strategizes to achieve its marketing and profit goals. France and Greece. According to Seal, once again, at the CMO Summit in 2010, “The greatest challenge in, India, was – creating a brand in a cluttered environment”. The organization is currently headed, by CEO, Dharampal Attri, and his team of dedicated professionals, which included. Market share between January & June 2014 rose 13 per cent. Micromax believed in bringing alive the most unique experiences to the, Indian youth through brand associations and product innovations. Compared to the 10,000 devices it had previously sold for, Nokia in a single year, Micromax was now selling 35,000 of its own within a year. It adopts the theoretical lenses of the sectoral system literature to discuss how the interplay of the supply and the demand side affects firm boundaries. There was no production facility in India and all the products were imported as Completely Built Unit (CBU) from US-based production facilities. Always known for his leadership, skills, Sumeet has been instrumental in setting up and running the Micromax R&D team in, Sumeet had another friend in Mr Vikas Jain. It is central to both the meaning and success of the brand, and contains the associations, that are most likely to remain constant as the brand encompasses new products and travels, to new markets. They offered their, super-distributors a 15 per cent margin, which was higher than the industry average of 6-10. per cent. These theories would provide further insight into how a company can gain, competitiveness in emerging markets such as India, Russia and Brazil. brand ambassador whom nobody would have imagined. Airtel became their ﬁrst client. While the big players like Nokia, Samsung, LG, Motorola and SonyEricsson make up for 70% share, the market has of late seena slew of domestic firms such as Micromax, Karbonn andEntex making large … At the heart of, this model is a fourfold perspective on the concept of a brand. “, demand-side focused. Micromax has placed its products in highly visible retail outlet like Reliance Digital, Chroma, stand-alone stores of Micromax and also has its presence in local distributors and retailers. rather than on those of the product or service. technologies and the failure of established ﬁrms”. Micromax Informatics Limited, earlier just a telecommunication equipment distributor, entered the market of mobile handset when Rajesh Agarwal, Rahul Sharma, Sumit Arora and Vikas Jain came together in 2008. It acts as a road map for business owners in determining the effective ways of successful sales and marketing. If a company does not meet demand, the sustenance of that company is limited. It is a process, improvement at best, in the short, the medium or the long term, as all strategies are. 5. It, began with the thought that perhaps Micromax was currently viewed as a Chinese trading, company selling affordable phones and therefore was a “cheap” brand. If the company made headway with the student, community, the battle for future market leadership was won. As a consequence, knowledge integration capabilities have increasingly become core competences for firms competing on world markets. As of 2020, there are several marketing strategies like product/service innovation, marketing investment, customer experience etc. . When Micromax entered the segment, it followed a simple strategy of bringing innovative products for the consumers and coupled it with smart marketing. But, this parameter had become more like a norm rather than an aspiration at Micromax. In the UAE, the handsets were sold through a, handful of retail chains, including Carrefour, Axion and Lulu, but were absent from smaller, stores. The decision to, go rural also paid dividends, as the sheer volume of the Indian population took over the, When it started its operations in the mobile phone market, Micromax had a huge domestic, market that was ready to be exploited. Business, peaked in 2007, with sales of over 250,000 devices. Smart Phones: Micromax provides a wide variety in Bharat series, CANVAS series, Selfie series, Dual series, and Video series smartphones. Not only are companies, attracted by the prospect of discovering markets with untapped growth potential, but they, are also aiming to have an impact, in a society characterized by deep divisions between, the haves and the have-nots. Case overview Innovation and technological change follow markedly different pathways depending on the sector in which they take place. market structure like India was perhaps a new dimension in innovation never seen before. In the third prong of its marketing strategy, Micromax used, stakeholder and in promotions; Micromax became the ﬁrst Indian player to use a, developed market celebrity in its local advertising campaign. It then discusses the interplay between national systems and sectoral systems. Elevating, symbols to the status of being part of the identity reﬂects their potential power. Hence, the strategic change will, only initiate visible changes to the brand image without altering the DNA of the brand – the, core marketing philosophy. . The external challengers were big brands and global players who came. Here, the, instructor would need to encourage participation towards the last question, i.e. There was no way the company would take loans from ﬁnancial institutions for purposes of, international expansion or sustenance and had raised funds initially from TA Associates, and Sequoia Capital, which together held about 20 per cent of Micromax. The ﬁnancial statements (, a sharp increase in proﬁts and revenues as compared to 2013. This would help the, company leapfrog the stages from ﬁrst timers to upgraders. But his main marketing strategy was E-Mails which though sounds very subtle but is the most cost effective way to lure people buy their phones. The crux of segmentation, targeting and positioning lies in the competitive strength of the, company and the market in which it is operating. Below is the pricing strategy in Micromax marketing strategy: From the very beginning, Micromax targeted both urban and rural parts of India providing them technological advanced mobile handsets at affordable prices. Marketing strategy carried out by consolidation between elements of marketing mix to form The, Canvas buyers were educated, upwardly mobile men and women who preferred the good, life, visits to multiplexes and malls and chatting on social media. Micromax pioneered the art of democratizing technology in India and bringing it to, the masses and created products inspired by real people for real people aligned with, unique brand properties for people to connect to. The marketing department and the CMO, realized the importance of the distributors in upholding the prongs of product and. In a business context, ﬂexible, and inclusive approach to problem solving and innovation”, says Professor, Jaideep Prabhu, of Cambridge University’s Judge Business School. Section Front Page. Micromax Ezpad and Micromax Bling phones, Exhibit 8. Mr Dubey was entrusted with the task of creating a market for the product and successfully sell it in the Indian market. The company’s market share increased to 10 per cent from 6 per cent during the same, The Gurgaon-based company grew its market share between January and June 2014 to 13 per, cent, by shipping 1.6 crore handsets. To help ensure that a ﬁrm’s, brand identity has texture and depth, Aaker advises brand strategists to consider the brand, as a product, an organization, a person and a symbol. The, promoters were ﬁrm believers in the Micromax 360-degree marketing philosophy, which, took care of the end-user and the brand from start to ﬁnish. To create a market for itself, Micromax followed penetration pricing strategy. Canvas range of smartphones? At the same time, the company was set to expand its footprints globally, starting with, Russia, and the time was right for change in perception. Early on, Micromax had decided there was no point in aping the leaders. Pepsodent: marketing strategy at the bottom of the pyramid, Learning and Catching up in Different Sectoral Systems: Evidence from Six Industries, Sistemas sectoriales, alcance y desarrollo económico, Polaris India: riding ahead in an alternative market, Knowledge, supply and demand in industrial development: A sectoral systems perspective. The ﬁnal answer, lies in the insight that perhaps, through Jackman, Micromax had ﬁnally improved the brand, image and added a new prong to its marketing strategy. It probably, marked the beginning of a long association with the education sector, as there are a whole. Any, company could make a cost-effective phone, but few could position, brand and sell it the way Micromax, did. Micromax, therefore, looked at distribution in a new. Polaris Industries USA Inc. it was founded in India in 2011 with Mr Pallav Dubey as Head of the organization. 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