Analysis Of The Competitive Strategies Adopted By Leader , Challenger And Follower in the
Smart Phone Segment
Group No.-6Arjun Bhatia- G007Ujjal Bose-G009Ekta Chhotaria-G012Dhwani MehtaShubrha SarohaAmartya Sen
PORTER’S FIVE FORCES
Intensity of Rivalry:
HIGH
Threat of New
Entrants: MEDIUM
Power of customer:
HIGH
Threat of New
Substitutes : HIGH
Power of Supplier: MEDIUM
MARKETING MIX PRODUCT
•Better quality front camera •Leveraging on the selfie culture•Slim and easy to carry products are being developed •Enhanced processors on heavy data usages
PROMOTIONPRICE
PLACE
• Various new features are provided in a very less price as compared to biggest rival APPLE
• Faster processors comparable to iPhones in much lesser price
• Accessories such as ear phones, chargers, screens etc are available in reasonable price
Works through Channel Marketing concept – 3 segments
1) Sales and Services2) Modern Retails3) Distributors
• Offers and discounts during the festive seasons
• Bollywood celebrities e.g. Aamir Khan is a brand ambassador• Tie up with Airtel to promote 4G in India
Segmentation Targeting Positioning
SEGMENTATION
• GEOGRAPHIC – Guru segment for rural areas Galaxy segment for urban areas
• DEMOGRAPHIC – Guru for middle class and lower income category Galaxy, adept for business usage, security concerns
PSYCHOGRAPHIC – Samsung mobile is available for people based on lifestyle e.g. cheaper touchscreen
TARGETING
• Trendy young peoples, professionals, large businesses• Organisations such as services to public safety, government, manufacturing sectors• Institutional sales for colleges• Target is not only number driven but also acquiring and retaining customers
POSITIONING
• SAMSUNG concept stores• Market making in small cities• Wider care network• Access to Samsung care line• Pioneering in the 3G segment
SWOT ANALYSIS
STRENGTH• Hardware integration with many open source OS• Innovation and design• Low production cost• Largest share in mobile phones and smartphones
OPPORTUNITIES• Growing smartphone market in India• Growing mobile advertising• Growing demands through quality application process• Obtaining patents
WEAKNESS• Low profit margin• Lack its own OS and software• Too many products, hence may loose focus
THREATS• Rapid technological change• Declining margin on hardware production• Breached patents• Price wars with competitors
MARKETING MIX
PRODUCT PRICE
• Unique needs- longer battery life(e.g. Micromax X1i)
• Best variety at lower cost with excellent quality of smart phones.
• First to launch Dual-SIM phones • Canvas and turbo series.
• Penetration pricing strategy • The first product Micromax X1i was
priced at Rs 2150.• The success or failure of Micromax
is solely dependent on the pricing of the smart phones.
PLACE
• Targets - Indian market. • Flank strategy- Rural market • By placing the product in popular stores
like Croma , The mobile store, Reliance Digital etc., high visibility was assured along with the competitive brands
PROMOTION
• Hollywood, Bollywood celebrities and MTV
• Partnered with other companies like Yamaha, to enhance audio experiences.
• Online marketing, print and TVC advertising and billboards
• Point of purchase advertising
Strategic objective- Attacking the market leader
Segmentation ,Targeting , Postioning
Segmentation Targeting Positioning
• Geographical segmentation
Immediate geographic target is Non urban and rural segment of India
• Demographic segmentation
Segmentation on basis of gender(Ex:Q55(Bling))
Segmentation on basis of age by focusing on age group 18-25
• The target audience - youth , Fashion savvy women and professionals
• Low cost and warranted product
• As a second phone• Offering value for
money
High price
High trendy
Less trendy
Low price
SWOT ANALYSIS
STRENGTHS• Efficient distribution network.• Low pricing• Strategic planning• Innovation
WEAKNESS• Intense competition and less global
presence• User interface for not so tech-savvy
consumers compared to Apple
THREATS• There is a risk of the brand
perceived not as an aspirational brand but a ordinary price warrior.
• Threat from low price well known brands
OPPORTUNITIES• Foreign market• Can be used as simple second
phones as well as cheaper smart phones
• Reverse engineered from Samsung and Apple phones, but with cheaper material
• Decent quality phone at a low price • Robust case, high resolution display
and a good battery• Operating system MiUi developed in-
house• Highly customizable operating system
MARKETING MIXPRODUCT PRICE
• Pay less now, pay more later strategy• Revenue generated from selling
content such as games, apps, financial services etc.
• Sells mostly online to further reduce cost of sales
• Priced at around half the price of competing Iphone
• Cheaply priced but not the cheapest
PLACE• 97% of shipment is local• International market restricted
to South East Asia and BRIC countries
• No presence in developed markets like U.S and Europe because of potential IP infringements
PROMOTION
• Flash sales with little advertising to build a sense of anticipation and urgency.
• Encourages users to interact with engineers over social media
• Open source operation system MiUi• Hosts parties for fans• Actively promoted on social media
Segmentation ,Targeting , Positioning
Segmentation
Targeting
Positioning
• Demographic SegmentationBoth genders between 20 and 35 years of age
• Psychographic segmentationSegmentation the working middle class
• Young working middle class adults who are tech savvy and want an increasing flexibility and customizationability in their phones
• Product with high functional value that is priced affordably
SWOT ANALYSIS STRENGTHS Frequent Line extension Low selling price of products Effective promotion campaigns Innovation and featured products Effective online business model
WEAKNESS Unable to shed the “MADE IN
CHINA” Tag Poor after sales support Low brand image
THREATS Steep competition from
established brands eg. Ssamsung, Karbonn
Entry of new players eg.Lenovo, Gionee, Hauwei
Easily replicable marketing strategy Low pricing in this segment Saturated China Market Currently being sued in India by
Ericsson for patent infringement
OPPORTUNITIES Increasing growth rate of sales of
mid and low cost smartphones in the Indian market
Entry into emerging markets Deep penetration of 2G and mobile
internet services in semi urban towns
Leverage fan base Expansion into Retail Channel