project report on micromax mobiles

TABLE OF CONTENTS

1. Introduction

1.1. Industry Profile

1.2. Company Profile

1.3. Product Profile

2. Methodology

2.1. Objectives

2.2. Design

2.3. Sample Design

2.4. Methods of Data Collection

2.5. Data Analysis

3. Analysis and Finding

4. Conclusions and Recommendations

Appendices

Bibliography

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INTRODUCTION

OBJECTIVE:

To study micromax mobiles in Indian market and to identify their marketing strategies.

INDUSTRY PROFILE:

The growth has more or less flat [owing to low sales figure in Q1] – in total, 101.54

million units of sales were registered.

Local manufacturers have grabbed 18.1% market share [from 0.9% in 2008].

Only 5 local manufacturers in 2008 and the number stands at 28 now.

Nokia market share in India fell from 56.2% share in 2008 • to 54.1% in 2009.

Samsung Electronics Co. Ltd’s share rose marginally to 9.7% from 9.5%.

LG’s share dropped from 7.2% to 6.4%.

Of the local manufacturers, Micromax leads the race and holds a market share

stands of 4.8%.

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COMPANY PROFILE: Micromax Informatics Ltd is a New Delhi, India based Telecom manufacturer and

distribution partner to Nokia, Samsung, LG etc for their IT / Telecom products in India.

With an annual turnover of INR 5000 million, Micromax has offices in all major India

cities and global offices in Dubai and USA. Micromax has been making supplies to the

Indian GSM operators for their different telecom requirements and is now expanding their

product range to the global markets. Micromax's products comes with a quality seal

meaning product satisfaction, high reliability resulting in repeated business. Micromax has

their own 24 hour operational customer service centre just in case you need that small bit

of information albeit at the wrong hour.

MARKETING:

Micromax, started operations in 1991 as an embedded software design firm, but was

incorporated as a company in 1998, when it branched out as a distributor of computer

peripherals such as printers, monitors, scanners from manufacturers such as LG, Sony Inc.,

Dell Corp.“We hope to be present in at least one country each in Latin America, Middle

East and Africa before the end of the financial year,” Jain said.

Geographical Segmentation: The firm has identified Brazil, Nigeria and Dubai as target

markets. Micromax specialized in entry-level and mid-segment handsets priced between

Rs1,800 and Rs2,400 when it started selling the devices in 2008, confining itself to small

towns and rural areas in the first 12-18 months. One of the major aspects that contribute

towards the substantial monthly growth of Micromax is its 80% sales in the rural areas.

Micromax is planning to expand its range in keeping with new market demands. It is

readying several high-end handsets, including phones that will run on Google’s Android

and Microsoft’s Windows Mobile operating systems (market stretch). The handsets are

expected to be available in “April or May”, Jain said Having gained traction, Micromax is

also working on a strategy to create awareness in the metros, which includes tying up with

MTV for co-branded phones.

Distribution channels: “Once you have established a good distributor network and sales

are robust, the next logical step is branding exercises to ensure consistent brand re-call

among your target consumer base,” said Romal Shetty, executive director and head telecom

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practice at audit and consulting firm KPMG India. Encouraged by its success, the firm

expanded to larger cities and now has a distribution network of 55,000 retailers, which it

plans to scale up to 70,000 by the end of March as part of its strategy to raise sales to 1.5

million handsets a month.

Branding: Micromax has also tied up with a Bollywood celebrity “who will be announced

shortly” as brand ambassador, Jain said. Bollywood star Aamir Khan endorses Samsung

phones.

The Micromax phones are designed by the in-house research and development team, as is

the embedded software. The on-board chips come from MediaTek Inc., Qualcomm Inc.

and Infineon Technologies AG—the last two also count Nokia as a client. Manufacturing is

outsourced to about 11 factories in Taiwan, South Korea and China.

Micromax has invested Rs100 crore to set up a plant in Baddi in Himachal Pradesh as it

feels outsourcing manufacturing completely leaves the door open for supply-side

uncertainties. Production will be scaled up from an initial 50,000 per month.

Micromax is one of the leading Indian Telecom Companies with 23 domestic offices

across the country and international offices in Hong Kong, USA, Dubai and now in Nepal.

With a futuristic vision and an exhaustive R&D at its helm, Micromax has successfully

generated innovative technologies that have revolutionised the telecom consumer space.

Micromax is on a mission to successfully overcome the technological barriers and

constantly engender “life enhancing solutions”.

The company’s vision is to develop path-breaking technologies and efficient processes that

incubate newer markets, enliven customer aspirations and continue to make Micromax a

trusted market leader amongst people. The Micromax ideology stems from its rooted

belief in ‘Innovation’ and delivering “nothing short of the best”.

Product line: Micromax has a lot of “firsts” to its credit on their versatile product

portfolio. It was the first to introduce: Handsets with 30 days battery backup, Handsets

with Dual SIM / Dual Standby, Handsets Switching Networks (GSM - CDMA) using

gravity sensors, Aspirational Qwerty Keypad Handsets, Operator Branded 3G Handsets,

OMH CDMA Handsets, etc

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COMPANY PROFILE

Micromax Electronics India Software Operations (SISO):

Micromax Electronics India Software Operations (SISO) was set up in February 1996 in

Bangalore as a liaison office. Since its inception SISO has grown to over 500 Software

Engineers working on R & D projects in the latest technology areas.

SISO as an organization is involved in the business of developing software for Micromax

Electronics Corporation technology solutions in a variety of different areas. SISO is part

of the Micromax Electronics R & D organization.

As a CMM Level 5 Assessed and an ISO 9001 Certified company, quality underlines every

aspect of our organization. This commitment to quality combined with innovative

technology designed for Indian conditions and an infrastructure second to none, has

contributed to Micromax's success in the global market since 1996.

OUR CONTRIBUTION

In the short period of a little over half a decade that the organization has been operational,

SISO has contributed in a big way towards a number of key projects. Cutting edge

technologies like 3G Wireless, Broadband, Intelligent Appliances for Home Networking,

Multimedia, Networking etc... have been some of the focus areas for the company. During

this period of about 7 years, the organization has grown in strength in terms of numbers as

well as in terms of the expertise that it possesses in certain key technology domains. Today,

SISO's engineers are involved in many of Micromax's highly strategic and important

projects. The company boasts of a highly talented and motivated work force who have been

constantly enriching their knowledge and skills.

SISO's well defined goal of 'Being a partner today and a Leader tomorrow' is being

aggressively pursued by the management. Therefore, in certain areas like 3G Wireless.

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Electronics industry

AFFILIATED COMPANIES

MICROMAX SDI

MICROMAX Electro-Mechanics

MICROMAX Corning

MICROMAX Corning Precision Glass

MICROMAX SDS

MICROMAX Networks

MICROMAX electronics subsidiaries include MICROMAX Electronics, MICROMAX

Electro-Mechanics, MICROMAX SDI, MICROMAX Corning, MICROMAX SDS,

MICROMAX Networks and MICROMAX Corning Precision Glass. These affiliates

produce, market, and sell a wide variety of electronic parts and components such as next

generation memory chips, computer and telecommunications equipment, color TV picture

tubes, and glass bulbs. They also develop computer systems and produce general

electronics and precision machines.

All these companies share the same goal of becoming world-class, high-tech companies at

the beginning of the 21st century and are concentrating their investments into promising

future fields to achieve that target. Despite being independent, systematic cooperation takes

place between the companies that enables the development of state-of-the-art electronic

products.

Retaining customers

Micromax considers 'After Sales Service' as a key differentiator for Micromax products. In

order to deliver prompt and easily accessible service, Micromax India has set up a

widespread network of company owned as well as Authorized Service Centers to service

its customers. The Micromax Service Plazas, as the Company owned Service Centres are

called, are a first in the industry.

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The Micromax Service Plazas serve as a one-stop shop for Micromax’s walk in customers.

Customers also get a chance to see the Micromax range of products and interact with

Micromax product specialists to know more about the company’s products and services.

Micromax is also increasing, the number ‘Micromax Prestige Service Plazas’ in smaller

cities like Ludhiana & Coimbatore to reach out to its customers.

To satisfy the needs of its Home Appliance customers, Micromax has set up state-of-the-art

Home Appliance Service Centres in 19 cities that are equipped with latest testing and

measuring equipments for servicing only Home Appliance products.

Speed, Smile, Sure’ is the motto for Micromax Service, as the Company seeks to satisfy

more and more of its customers with prompt and accurate service. The company adheres to

a turnaround time of 24 hours within the city where the Micromax Service Centre is

located. A Service Helpline number 30308282 gives access to Micromax Service

throughout the country. Micromax India organizes a Free Service Camp on an All India

basis, every year, for proactively reaching out to customers and servicing their Micromax

products.

MICROMAX group timeline and history

Pioneering the digital age (2000 ~ Present)

With the start of the second millennium, MICROMAX begins its second century.

Humanity must now successfully manage the opportunities and challenges resulting from

the new and quickly changing digital paradigm with equally revolutionary changes in the

rules it uses to do business. Currently, MICROMAX Group is undergoing changes in its

business structure, management perspective and systems, and corporate culture to meet a

global standard.

We regard the digital age as having both incalculable potential and risks. It's a time of

intense competition-fortunes can be made or lost in the blink of an eye. However, at

MICROMAX, we see challenges as opportunities. Which is one reason we believe that we

are perfectly positioned to be one of the world's recognized leaders in digital technology.

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Our commitment to being "World's Best" has succeeded in securing the number one global

market share for thirteen of our products. Our target is nothing less than to have thirty

number one "world products" by 2005, adding digital TVs, IMT 2000, and printers to our

current world market leaders-semiconductors, TFT-LCDs, monitors and CDMA mobile

phones. At the same time, we are making historic advances in research and development of

our overall semiconductor line, including flash memory and non-memory, custom

semiconductors, and DRAM and SRAM. For example, MICROMAX Electronics, which

has been among the world's top 10 in US patents for four consecutive years, has 13,000

researchers representing a US$ 1.7 billion investment in Research and Development.

In the financial market, MICROMAX is also committed to being the World's Best.

MICROMAX Card has been selected as the "Best Card Company in the New Millennium"

by Master Card, the result of securing more than 1 million members within one year

through the release of "Aha Loan Pass," the first loan-only card in Korea. Euromoney has

also selected MICROMAX Securities as the "Best Security Company" for the 3rd

consecutive year. And MICROMAX Life Insurance has ranked as 10th largest company by

Fortune's "Global 500" in the Life/Health insurance category

We are also actively promoting our brand value, a key engine of business growth.

MICROMAX's brand value increased to US$8.31 billion in 2002 from US$6.37 billion in

2001 and was recognized by Interbrand Corporation as the fastest growing global brand.

How did we make such astounding progress in such a short time?

One answer is that we are perpetually engaged in achieving global competitiveness through

continually improving our financial structure and profitability and looking at the structure

of our organization. Reducing production costs and working hard to maintain our brand

image have also contributed mightily to our surge. Accordingly, MICROMAX Electronics

has secured a nation's credit rating from S&P and Moody's while MICROMAX Fire also

has been recognized by S&P for its stability and growth potential and has received its

second consecutive A rating.

Another clue to the quick pace of our development goes to the heart of our management

philosophy "We will devote our human resources and technology to create superior

products and services, thereby contributing to a better global society." Our active

participation in various sports events around has helped promote community spirit as well

as returning corporate profits to society.

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PRODUCT PROFILE

Overview

Towards realizing the vision of Micromax Electronics to become one of the leading

handset manufacturers in the world, Micromax India Software Operations (SISO) is an

important cog in the wheel.

Telecom Team at SISO is involved in designing and building software for the mobile

terminals encompassing the current and future technologies, and the applications therein,

for Micromaxs latest mobile handset equipments.

Expertise in the Handset Technology

Engineers at SISO are involved in building mobile handset software for a variety of

standards, established and emerging, such as GSM/GPRS dual mode handsets, CDMA

2000 1x (and variations thereof such as EV-DO, EV-DV etc.),WCDMA protocol stacks,

dual mode handset software (CDMA2000 1x and WCDMA) and all important

interoperability issues.

The much touted applications such as multimedia environments and functionalities in the

third generation wireless standards (3G) are a key focus area at SISO. Customization of

CDMA phones to cater for an Indian scenario is one of the high priority things at SISO.

Work is going on towards developing user interfaces for software applications in local

languages. To deliver world class quality software, the testing team rigorously tests and

evaluates the product, before delivering it to the customer.

SISO believes that "Innovation is not only useful, it is the only way to move up the

technology value chain in the rapidly changing wireless business environment". Engineers

are encouraged and motivated to think and patent new, innovative and useful ideas relevant

to the business environment the work so far has resulted in numerous patent filings.

Technical info GSM

Concept of GPRS

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General packet radio services (GPRS) is a standardized

packet-switched data service for GSM network.

With the packet-switched technology, GPRS increases data

transmission speed from 9.6kbps to a maximum of

114kbps for uses in the mobile Internet.

It will allow GSM operators to take a share of the rapid

growth of Internet usage and position the cellular service as a mobile access to the

information society

For end-user GPRS Presents:

Always in connection with P or X.25 networks

Increased performance for up to 114 Kbps

Fast set-up/access time

GPRS Radio Resources

Several end-users will share GPRS radio resources, resulting in much better channel

utilization than with circuit-switched data communication. The user may remain connected

as long as desired but is only charged for the volume of data received and/or transmitted.

GPRS uses radio channels to packet-switched or circuit-switched traffic.

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OBJECTIVES

MAIN OBJECTIVE

o Analysis of current market scenario of mobile market with special reference to

MICROMAX IND.MOBILES.

SUB OBJECTIVES

o To study the satisfaction level of cellular users in Ratlam.

o To study the buying behaviour of the customers.

o To understand the price sensitivity of the markit in respect to the telecom

services.

o To identify customers opinion about Micromax Handsets.

o To identify the key buying factors which are used in hiring the telecom services.

o To understand the various sales promotional schemes being offered by various

mobile handsets providers.

THE DESIGN

Steps followed for this research was:

1. Problem Formulation: This refers to transferring of the management problem

into a research problem. The management was “to gauge the behavior of consumer

in respect of mobile market.”

2. Design: It is the specification of the methods and procedures for acquiring he

information needed. It is overall operational pattern or framework of the project that

stimulates what information is to be collected, from which source and by what

procedure. The three types of design used are exploratory, descriptive.

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METHODS OF DATA COLLECTION

The task of the data collection begins after research problem has been defined and research

design/plan chalked out. While deciding about the method of the data collection to be used

for study, the researcher should keep in mind two types of data primary and secondary.

1. Sources of Data:

a) Primary Data: We collect primary data during the course of experiments in an

experimental research but in case do research of the descriptive type and perform

surveys, then we can obtain primary data either through observation or through

direct communication with the respondents in one form or another or through

personal interview. Since the research is of descriptive type in witch data is

collected through direct communication with respondents. Sample survey is carried

out during this project. The survey was performed through a structured

questionnaire.

b) Secondary Data: secondary data means data that are already available i.e. they

refer to the data which have already been collected by someone else. The sources of

secondary data in this project were the websites of various mobile providers,

catalogues of various mobiles, newspapers, magazines etc.

2. Method adopted in research:

The survey method was used for this research project. A general survey was conducted

together the required data.

3. Research tool used:

Questionnaire was used to collect the data from the users of various mobile handsets.

a) Method of population Selection:

The population for this survey was selected with the help of cluster and stratified

random techniques. In cluster, we divided the Ratlam then we applied stratified.

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b) Method of Interaction with the population:

Personal visit method is used for this research project. The respondents were the

users of various mobiles. These respondents were approached and requested to give

their opinion on the mobile handsets providers by answering in the questionnaire.

We meet all retailers and whole sellers of Micromax India mobiles

And try to find out their problems. We also observe that the advertising materials

are well placed or not. Advertising material means posters, banners and hoardings.

In interaction with population we were applying these marketing strategies:

Advertising

In this section we advertise our products (mainly new launchings) and say to

customer our services qualities and brand features.

We conduct road shows and distribute leaflets and banners.

Sales

We sale our product in two ways: Direct Sale, Whole Sale:

DATA ANALYSIS

Analysis of data is a process of inspecting, cleaning, transforming, and modeling data with

the goal of highlighting useful information, suggesting conclusions, and supporting

decision making. Data analysis has multiple facets and approaches, encompassing diverse

techniques under a variety of names, in different business, science, and social science

domains.

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http://en.wikipedia.org/wiki/Information

http://en.wikipedia.org/wiki/Data

FINDINGS AND ANALYSIS

Mostly people are attracted towards Micromax mobiles due to good reputation and

low initial investment in color and flip handsets.

More than 50% users have switched over to Nokia and others due to unavailability

of Connectivity and memory expansion devices.

Handset Dimensions (w×h×d) and excellent Build Quality are the perfect

consideration in Micromax Mobiles when buying a cell phone.

More than 50% users could not avail India-speaks facility due to lack of knowledge

about its function thus it reveal that is a desirable attribute of Micromax Handsets.

Near about 30% color mobile users switch over to other mobiles due to their good

performance of standby time and talk time.

Ergonomics is very helpful to understand the interface in these mobiles and it also

makes customers.

More than 70% users are attracted to the support for cellular and multimedia

standards.

One feature that most of the users probably prefer more than anything else is light

weight of these handsets.

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FINDINGS | AGE GROUP OF RESPONDENTS

Age Group Respondents Respondents (%)

15-25

26-35

36-45

above 45

38

27

19

16

Figure1.1

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FINDINGS | OCCUPATION OF RESPONDENTS

Occupation of Respondents Respondents (%)

Businessmen

Students

Doctors

Engineers

Govt. servant

Housewives

Executives

Traders

Others

30

20

18

8

8

2

7

5

2

Figure1.2

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FINDINGS | INCOME GROUP

Income Group (yearly) Respondents (%)

Less than 50000

50000-150000

150000-300000

300000 & above

48

25

16

11

Figure1.3

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FINDINGS | MOTIVE BEHIND USING MOBILE

Motive Respondents (%)

Communication

Snob value

Good facility

others

55

12

31

2

Figure1.4

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FINDINGS | DURATION OF USING MOBILE

Duration of using mobile Respondents (%)

Less then one year

1-2 year

2-3 Year

3 & above

42

22

21

15

Figure1.5

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FINDINGS | MOBILE OWNERS

Mobile Owners Respondents (%)

B/W

Color Bar

Color Folder

Bar Camera

Folder Camera

High-end Camera Phone

30

20

14

16

9

11

Figure1.6

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CONCLUSIONS AND RECOMMENDATIONS

Mobile has become an important part of people’s life and it is no more a luxury.

Ratlam is highly competitive and price sensitive market as majority of respondents

want maximum services provided by company in low priced handsets.

The majority of respondents who use mobile are quite young.

There is a good scope for new entrants in this circle as the service provided by the

existing players are not up to the mark and subscribers want to try out new ones

provided they stand up to the customers expectations.

Numbers of color mobile users far out number B/W mobile users. And among the color

mobile users majority of them are camera mobile users.

As the circle comprises of mainly high standard areas with few big shopping malls,

subscribers want that the network coverage should extend up to shopping malls n

addition to the small markets and roads.

MMS and Bluetooth functions are fast becoming popular with the mobile users. In fact

these are becoming a criterion for choosing a mobile handset.

Majority of respondents perceives Micromax as the best color mobile provider. It

commands high respect and favorable image amongst the mobile users.

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BIBILIOGRAPHY

Reference Book-

1) Kothari C.R. Research Methodology

2) Kotlar Philip Marketing Management

3) Kotlar and Armstrong Principles of Marketing

4) Intelligent computing CHIP, Volume 1, Issue 3

website used-

1. www.in.Micromaxmobile.com

2. wap.in.Micromaxmobile.com

3. www.Micromax.org

4. www.chip-india.com

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http://www.chip-india.com/

ANNEXURE

CONSUMER QUESTIONNAIRE

Center________ Serial No._____

Dear Sir/Madam,

We are the summer trainies of Micromax India Ltd. Carring out the survey of current

market scenario of mobiles. This study is part of our course curriculum and the

information provided by you will be confidential. Kindly spare some time and answer

the following questions.

1) Which mobile do you have?

a. L.G f. SIEMENS

b. MICROMAX g. PANASONIC

c. NOKIA

d. SONY ERICSON

e. MOTOROLA

2) Since how long have you been using mobile?

a. Less then one year c. 1-2 Year

b. 2-3 Year d. 3 Year and above

3) What your motive behind using mobile?

a. Communication due to extensive mobility c. Snob value

b. Good facility as compare to PNT phones d. Others (specify if any)

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4) Which handset do you own?

5) Are you the first time user of the mobile company? or

Have you availed services of some other mobile ?

a. First time b. Switch over c. Both

If switch over specify company name

[1] L.G [2] SONY ERICSON [3] NOKIA [4] MOTOROLA

6) Which attribute characteristic have you most preferred?

Attribute

a. Good reputation Low investement

b. Warrenty& sup. Connectivity

c. Weight Display

d. Ergonomics Camera video

e. Battery backup IRDA/ Blootooth

f. Sup. Language Brand equity

7) According to you what are the negatives in your handset?

Please mention if any

(------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------)

Kindly fill in the following personal details

Name______________________________

Address____________________________

Tel.no _____________________________

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COMPANY GSM CDMA

L.G

MICROMAX

NOKIA

SONY ERICSON

MOTORALA

project report on micromax mobiles

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