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MICROMAXSRI LANKA

STRATEGIC POSITIONING& MARKETING STRATEGYPresentationStructure- Situation Analysis

- Industry Analysis

Strategic Recommendations

Advertising Plan

Q&A Discussion

Situation Analysis Getting to know Situation Analysis MICROMAX has been operating in the SL market for nearly two years MICROMAX in total have managed to build awareness in the SL market, across rural and urban sectors to a greater extent. However there is a question mark as to whether it has directly resulted in an increase of sales in both rural and urban. MICROMAX SL has been inspired by the Indian communication strategies and have used customized versions of the Indian branding and marketing strategyHowever MICROMAX INDIA is going through a 360 Degree REVAMPHence its timely to move out of Indian communication and build a Sri Lankan brand identity and a positioning status / customized / localized Sri Lankan brand identity Therefore requested the advertising agency to take a total fresh look at the MICROMAX brand on how we could develop a communication strategy locally which can also be adopted to other markets

Critique - MICROMAX Brand Focused on more product centric branding as opposed to more strategic brand building marketing and communicationsIndian based marketing as opposed to SL local insight based marketing. Ex: Use of Indian models in branding and Indian tone and feel in communications Need to establish a clear positioning status & a brand identity that MICROMAX can claim as their very own (Value for money, more features, innovation) in comparison with Nokia and SamsungWe feel that MICROMAX has been trying to appeal to high end urban market, however there are doubts whether this has been established as expectedImportantly there are questions whether the consumers are made aware of the true features of MICROMAX and its workmanship and quality in comparison with NOKIA and Samsung. Overall the association with the MICROMAX brand, brand loyalty and brand perception is questionable?

Key Drivers - MICROMAX Brand (Current) Customers - Do we have a loyal customer base thatensures repeat purchase?

Are we strong both in rural & urban markets?

Is our product range competitive enough to tap competitor products?

Are we competitively priced to tap customers across different SEC Categories?

Do we have phones that are inline with the latest technology Android? Do customers know we have such devises?

How strong is our distribution channels? Strong with Cell City

Industry Analysis Industry Analysis - Handset Industry Trends Constantly evolving and changing

Social Networking drives new communications and internet behavior

Mobile phones are at the heart of innovation becoming powerful computers

People are using mobile devices for multiple purposes - Multimedia, Messaging, Games, Browsing, Voice etc

Industry Analysis - Handset Industry Trends One of the fastest growing industries in SL

Many products & many players - Nokia, Samsung, HTC, Blackberry, LG, Micromax, Do Mobile, Chinese brands,

Products to suit your lifestyle / wallet / need / functionality

No first mover advantage

Price is not always the deciding factor

Based on area, lifestyle product & brand changes

Handset Landscape in Sri LankaCurrent Market Size 15 Mil (As @ 2010 Q1)Annual Growth 39% Average Monthly Sales 100,000 Units Grey Market Share 15-20% 28% use second handsetIntroducing low cost handset with warranty period

POSITIONING BASED ON BRANDSource: LBRMICROMAXHandset Landscape in Sri LankaCompanies such as Nokia have already established a significant position both in the rural & urban sector being one the 1st entrant+ offering the most user friendly phone. assured customer base, repeat purchase

Samsung is currently establishing and increasing its grounds across both urban & rural with the new android technology + Smartphone.

Sony Ericson & LG have catered to mid net worth individuals offering brand value + usability phone

MICROMAX has been appealing to many mid to low end customers, who require less sophistication and who seeks value for money

Low End Bird, E tel, Do Mobile

Inmarc Research Based on Dipstick Study POSITIONBRAND TRUST& LOYALTYTECHNICALITY & USABILITY PRODUCT UNITS PRICE (LOW)PERCEPTION RURAL URBAN 1NOKIA / iPhone NOKIADo Mobile/MICROMAX

MICROMAXNOKIA /BB/iPhone2Samsung /BBSamsung/Sony Ericsson NOKIADO MobileSamsung/LG 3MICROMAX MICROMAXSamsungNOKIA /SamsungMICROMAX Handset Landscape & Future Sri Lanka 70% of the population has mobile phones - Ownership is high between 16-35

80% of the population has mobile connections (Active) - 16 Mn mobile connections among a population of nearly 20 Mn

SL s future consumer patterns will be shaped by the growth in internet usage via mobile phones - Greater access to social networking sites, Age 16 to 35 years. - More users will connect to internet via mobile phone than desktop pcs

2 Mn internet users in Sri Lanka, representing 14% of the population. - 1.2 million users access the internet weekly or more often with the majority being in the 15 to 25 years age group where internet usage is as high as 26% - 900,000 Users are on FB with 78% in the age group of 18-34

46% of users access the internet through their mobile phones (10% exclusively and 36% through a combination of modes including mobile devices) - 42% went to Social Networking

Source: LBRHandset Landscape & Future Sri Lanka 70% of the population has mobile phones - Ownership is high between 16-35

80% of the population has mobile connections (Active) - 16 Mn mobile connections among a population of nearly 20 Mn

SL s future consumer patterns will be shaped by the growth in internet usage via mobile phones - Greater access to social networking sites, Age 16 to 35 years. - More users will connect to internet via mobile phone than desktop pcs

2 Mn internet users in Sri Lanka, representing 14% of the population. - 1.2 million users access the internet weekly or more often with the majority being in the 15 to 25 years age group where internet usage is as high as 26% - 900,000 Users are on FB with 78% in the age group of 18-34

46% of users access the internet through their mobile phones (10% exclusively and 36% through a combination of modes including mobile devices) - 42% went to Social Networking

Source: LBRMOBILE PHONE + INTERNET FUTURE SOCIETAL MOVE Todays Handset Consumer More ChoicesMore EducatedMore Tech SavvyMore DemandingNew Breed of Shoppers

Not Loyal New Trends Switch Brands

DOES MICROMAXHAVE A STRONGBRAND STATUSTO APPEAL TOTODAYSCONSUMER Why do Consumers Use A Handset ?

Communication Voice / SMS

Internet Browsing Music / Camera

Social Media

Apps

Future top of the mind handset Current top of mind handset

Key Factors for MICROMAX to Succeedin the SL handset market Key Factors for MICROMAX to Succeedin the SL handset market Lies potential and opportunity for a brand to build a clear positioning / differentiation & individualism Younger generation appeal & responding to industry trends If the brand and product can converge with the customers current need & future needs the brand will propel Customer 1st Philosophy Enriching Customers Life MICROMAX should engage all its resources, skills, know how towards establishing a more personal communication with its customers

Strategic Recommendations Strategic Routes for MICROMAX Positioning Customer 1st Philosophy Enriching Customers Life + Personalized Communication Route 1 - Futuristic Approach Be the preferred brand that thinks about you and gives you unlimited access to the future (internet and other innovations)

The preferred brand that integrates into your lifestyle, your needs and your desires

A band that is focused on connecting you to the social space with ease (Facebook, twitter etc)

A brand that will appeal to the youth Features such as dual sim, memory card with more capacity, better music, camera quality and a trendy face value.

Premium class Technological innovation

Be an Aspirational Brand

Route 2 Sri Lankan FlavorMany brands have taken the route of building a Sri Lankan identity to their brand post war Cargills, Laughs, Lanka Bell, Sunlight etcNone of the mobile brands in Sri Lanka have taken this strong route in a 360 angleHence lies the opportunity for us to grab this Use of a strong brand personality to establish this Lasith Malinga A strong brand ambassador with brand equity in both urban & rural marketsOvercome the perception of a low price productWill help us to build a strong brand along with a unique identity We can connect LM with MICROMAX

Unique action, invaluable asset to Sri Lanka team, One of the best in the world at what he does, variations, unique identity, number of records (hat tricks) etcRoute 3 - VFMDivide the market into key segments and approach each with the different features that MICROMAX can offer

Rural/ Semi Urban Segments - Affordable phones packed with features - Dual Sim, long battery life, camera, memory cards, warranty etc

Urban/High Profile Segments - Innovative yet affordable phones packed with great features - Marketing Android phones, new phones in the future - Changing perception and building brand trust

Our Positioning - MICROMAX A futuristic mobile phone brand (superior, high quality) with a Sri Lankan flavor (A brand that understand Sri Lanka, our identity, our flavor, our needs) that gives you value for money (packed with great features yet affordable) and enriches your life.

Advertising Plan360 Marcom CampaignA combination of traditional and online media channels to create an integrated marketing campaign for Micromax

Traditional Media

News Paper ArticlesPrint AdvertisingNewspapers & Magazines Hoardings, Billboards PostersDealer BoardsEvents Television and Radio Online Media

MICROMAX WebsiteSEOSMOPPCEmail Marketing360 Marcom CampaignWe need to take a fresh look at all the creatives. We believe in getting Lasith Malinga as the brand ambassador would help us to start working on a strong creative route.

Ideally start off the new campaign with a tease campaign across all mediums (TBD)

We could also focus on how we can use ambient marketing and also new channels such as digital hoardings, supermarket branding etc

Need to discuss how we go about changing the current branding (Dealer boards, hoardings, brochures etc)

Also we strongly suggest to develop a signature tune for MICROMAX

We could also looking into how well we can communicate the new identity through association with events etc. T20 world cup, Cricket, Musical shows, Local community events etc

micromaxmobile.lk Where Are We?DesignAbove average design Large image slider to display featured products Cluttered header with little prominence given to navigation

Lacks visual segmentation of the main elements (Mainly footer and most popular handsets)

Products page has been segmented in an unusual and creative fashion but uses very little whitespace along with smaller visuals of products

Product description is displayed on colored backgrounds

micromaxmobile.lk Where Are We?User ExperiencePoor user experience

Product scrollers on products page under each product category are not prominentProducts are segmented according to the unique selling point only and does not allow for product filtering by the user

Slideshow containing product visual is too small with little prominence given to it by being displayed in the bottom

Product is complemented with a large block of text instead of summarized key features list

No phone comparison

No phone reviews and ratingsmicromaxmobile.lk Where Are We?AccessibilityNo localization Lacks language localization Lacks visual localization Product description is displayed as an image rather than textmicromaxmobile.lk Where We Want to Be?DesignAwesome Design Clean user interface with good use of whitespace Header section with structured navigation which highlights key sections of the website Product page with big visuals of handsets

Product description page with prominent slide show of handset and structured content

Use of features in newer technologies such as HTML5 and CSS3 for greater overall interface

Cross browser supportUser ExperienceGreat UX

Product selection page with product filtering capability based on functionality and unique selling point

Product selection area with product drill down based on the users requirements

Product comparison page with drag drop selection of handsets

Product description page with high quality visuals of the handset from different angles (360 Degree view)

At a glance listing of key features and the unique selling point in visual format

Ratings and reviews for customers to make a more informed decision?

When a customer decides on a phone, whats next? Where to buy?micromaxmobile.lk Where We Want to Be?AccessibilityBigger ReachLanguage localization to increase reach to target markets of Micromax brand

Localization of visuals to match country Strict adherence to W3C web accessibility standardsmicromaxmobile.lk Where We Want to Be?So now that we have a great website how do we get people to come to it?