y-cell gsm mobile phones

7/31/2019 Y-Cell GSM Mobile Phones

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Statistics

Source: CIA World Fact

GDP $1.367 trillion (2010) (nominal; 11th)$3.862 trillion (2010) (PPP; 4th)

GDP growth 6.7% (2008/2009)

GDP per capita $1,124 (2010) (nominal; 139th)$3,176 (2010) (PPP; 128th)

GDP by sector agriculture (17.5%), industry (20%),services (62.6%) (2009 est.)

Population below poverty line 37.2% (2010); 410 million (2010)

Labour force 467 million (2009 est.)

Main industries telecommunications, textiles, chemicals,food processing, steel, transportationequipment, cement, mining, petroleum,machinery, information technology

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According to IBEF…

In recent years, the Indian telecom industry has witnessed phenomenal

growth

India achieved the distinction of having the world's lowest call rates (2 –3

US cents), the fastest sale of million mobile phones (1 week), the

world's cheapest mobile handset (USD 19) and the world's most

affordable colour phone (USD 31)

The Indian telecom market generated revenues of approximately USD

20 billion in 2007 –08

It registered a CAGR of approximately 22 percent from 2002 –03 to

2007 –08

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Indian Telecom Industry – Facts4

Total telecom subscribers – 706.36 million (Mobiles-670.6 milllion)

Tele density – 59.63 percent

Expected to reach total subscriber base of 1.159 Billion by the end of 2013 and become the world's largest market, from the currently

fastest growing. (i.e., more than one phone for every household)

ARPU for GSM – Rs. 239 (2009)

Number of new mobile subscribers added every month – 10 million

plus

Handset market – USD 4,750 millionSource:



Why Study Telecom Sector ???

Indian Telecom Industry – A Lucrative Option

Mobile telecom services provide an unprecedented growth opportunity

for companies

Mobile services have led to a spectacular growth in the Indian telecom

industry

Currently, 15 players are active in this segment

Expected 1billion subscriber base (2013) and increasing users every month

GSM surpasses CDMA in number of additions to subscriber base

Indian telecom handset market booming along with mobile services

industry

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SCANNING

THE MACRO

ENVIRONMENTY-Cell GSM Mobile Now StartStyling…

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- Dan Scheinman, Cisco System Inc. as told to Business Week, August 2005

“We came to India for the

costs, stayed for thequality and are now

investing for innovation”.

A T Kearney FDI Confidence Index 2005

India is among thethree most attractive

destinations in theworld.

Jack Welch General Electric

“India is a developed

country as far asintellectual capital is

concerned”.

India has among thehighest returns onforeign investment.

US Department of Commerce

By 2032, India will beamong the three

largest economies inthe world.

BRIC Report, Goldman Sachs

Travyn Rhall,ACNielsen

“The Indian market has two

core advantages - an

increasing presence of multinationals and an upswingin the IT exports”.

Craig Barrett Intel Corporation

“India has evolved into

one of the world'sleading technology

centers“.

Y-Cell GSM Mobile Now StartStyling…



Industry which has come from nowhere and gone on tobecome huge

The emergence of strong local players in the Handset market

Handset Market Share

Nokia: 36.3% (PY 54%)

Samsung : 14% (PY 8%)

MicroMax, Spice and Karbonn together constitute : 33% LG : 5%

Other Smaller Players 13-14% : (PY 3-4%)

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(contd…)

On an average, about 10 million new users added per month,

making India the world’s fastest growing wireless services market

Among the countries offering the highest rates of return on

investment

The rural telecom equipment market is also open to large

investments, large untapped potential in India’s rural markets –20%

(approx) teledensity in rural markets as compared to 100+ in urban

market

Increasing mobile subscriber numbers and level of teledensity offers

large opportunities to Indian handsets companies

The government promoting telecom manufacturing by providing tax

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Source: ID



Per Capita Income

393461

519

583

651

0

100

200

300

400

500

600

700

2002-03 2003-04 2004-05 2005-06 2006-07

U S D

2

9

48

221

726

9

17

74

285

710

20

33

120

404

613

2001-02 2005-06 2009-10(E)

Rich (Above 115,000)

High Income (57,000 – 115,000)

Consuming class (23,000 – 57,000)

Working class (10,200 – 23,000)

Needy (Below 10,200)

Annual Household Income

(in USD)

* In PPP terms

P o p u l a t i o n ( m i l l i o n )

Increasing per capita income

coupled with an emerging middleclass has provided the necessaryimpetus to consumerism in India

Growth inthe higherincomecategories ofIndia’s

populationhas createdan affluentsection ofsociety,which hassignificantlevel ofpurchasingpower

Increasing

per capitaincome andlargepopulationmoving intomiddle classhas led tohigh level ofconsumerism in India

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DEMOGRAPHIC

India has a huge youth population

More than half of the Indian population is below the age of 25 years

The size of economically active segment will continue to grow fordecades

Total Population: around 1.2 billion, out of which more than 300

million are in the middle class segment

The YOUTH – Highly trendy and High on show-off

Educational Environment: Improving and literate population is on

high

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India’s LARGE middle class, a potential customer

group

Hike in Average Salary by almost 14% to 15%, which

is the highest in the world

Growing income of Middle Class – Resulting in higher

purchasing power

Sustained GDP growth of more than 8% is projected to

reach a two digit figure very soon

Economists predict that by 2020, India will be among

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Higher acceptance for wireless services

Indian customers are embracing mobile technology in a big way (Millions of subscribers added every month)

They prefer wireless services compared to wire-line services

The wire-line subscriber base growth rate is negligible

In fact, many customers are returning their wire-line phones to their service providers as mobile

provides a more attractive and competitive solution

Some of the positive impacts of this trend are as follows

According to a study,18 percent of mobile users are willing to change their handsets every year to newer models with

more features, which is good news for the handset vendors

“The telecom industry in 2012 will be very different from the one we know today –

embracing Internet services and starting to talk the language of Web 2.0 which will enable

the carriers to thrive well into the future"

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One of the cheapest and the fastest growing market in India

Handset market has grown tremendously coupled with the growth of telecom in India,

We need to just capitalise on that (O)

Experience of using the internet on mobile is getting more agreeable and it is getting

easier to pay for things by mobile, especially small ticket items

Higher proportion of teledensity (100+ in urban areas) shows people use more than

one mobile phone, hence shows the growing need for handsets

STRENGTHS:

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WEAKNESSES:

Large number of new players (Such as Karbonn, MicroMaxx, Lava

and many more) are flooding the market

Market is actually getting more fragmented

About 20% (roughly) market is covered by the unorganised Chinese

players (T)

No one to cater to Female needs (O)(Gap)

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OPPURTUNITIES:

With major players (like Nokia) losing their hold in the market, it is high

time for the other players to establish themselves in the market

Reduction in fixed line connections substituted with growing wireless

connections – handset player could exploit on the growing need for Mobiles

Use of internet in busy working environment coupled with growing need for

mobility of internet again provide a big opportunity for all players in themarket

Targeting (Creating) female Segment (Gap)

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THREATS:

It continues to get more difficult for companies to provide a consistent experience

across different players and the ever expanding variety of handsets and personal devices

on the market

Unorganised market of Chinese Mobiles – posing great threat to other players in the

market

Flooded handset market has raised the level of competition

Though the player like Nokia has lost a tremendous share in the market but it can come

back into the competition at any given point of time (due to the size of financial

backup that it had behind him), and kick out other small players that have just

jumped in to the competition

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The threat from the new entrant

A huge opportunity for a new entrant to capitalize on this

biggest potential segment in the Indian Government is also promoting the telecom sector, inviting

new players into the market – in a driving a growth of

handset industry as well

Growing telecom segment coupled with changing

government regulations provide a huge opportunity and less

threat for new entrants

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The threat from the substitutes

No substitutes available in the market

FixedLine phones are there but would require huge

change

May compete in terms of call rates, but when it comes to

SMS’s, MMS’s and other Value added services, Mobile

industry is the clear winner

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Bargaining power of the suppliers

The demand for handsets is on a high, coupled with the

innovation and technology that the suppliers are coming out

with

But hardly a cause of concern for the handsets manufacturer

as there are number of suppliers all over the globe

Outsourcing is a good option to look at when it come to

supply of products or raw-material

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Among the competitors rivalry

There is a huge rivalry among different players in the

market

Each player is coming up with something new and

innovative everyday next day

No cause for concern – looking at the growing industry

and a growing population (1.2 Billion currently), there is

a huge potential for every player

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Bargaining power of the buyers

Great demand in the market

Still buyers will have their say due to the existence or

availability of other options in the market

Power lies in both hands as seller have a huge market

(population) in front of them, also on the other hand buyershave a various options (Number of players in market)

available to them

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Nokia and Sony Ericsson are two leading mobile manufacturing companies operating worldwide

N-Series mobile handsets incorporate fun features like high resolution cameras (2-3.2 mega pixel cameras),impressive music players, 3G connectivity, Bluetooth,EDGE, GPRS, Symbian operating system, ample memory space (internal + external through memory cards) and much more

But the recent trends show Nokia has already reached maturity and is nearing its Decline Stage

Samsung rejuvenating itself – coming up with new touch series at competitive prices

28 new (Small) players entered into the Indian market

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On the other hand, the entire image of Sony Ericsson as a quality mobile phone maker has been revamped by the W-Series mobile phones

And the recent entry of iPhone in India has increased the competition for Nokia

Commenting on Apple’s new product offering, Olli -Pekka Kallasvuo, president and CEO, Nokia Corporation, said:

“iPhone is going to have an impact on Nokia’sbusiness in India”

Nokia coming down and other companies re-establishing – Y-Cell can enter and take over the Opportunity

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Branding :

Nokia built its brand at both ends of the market, with high-end multimedia handsets

for upscale buyers and low-priced phones for emerging countries Y- Cell’s main focus would be on Indian Youth, who are sophisticated by

nature, but do not have any source of income (depends on pocket money by parents)

Priced between Rs. 5K to Rs. 25k

Branding Decisions :

Nokia follows Umbrella as well as Company brand name strategy.

Example for Umbrella branding- N Series and E Series

’

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Today mobile handsets are looked upon as aconverged devices, handling multiple functionsand entertainment being the most important

among them Demand top-end features all at affordable prices

Integrated digital camera, music player and stereoFM radio are main among them (driving especially

low-end phones) Features like Games, Calculator, Reminder\

Scheduler \ Organizer, ringtones etc. havebecome hygiene features & are must for any

handset today (None of these features aredifferentiator an more



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New models are being launched at regular intervals – Activity takes place at the high endmaking the older models cheaper and shifting it tothe mid-segment

However, the low-end handset users, who makeup a huge number, don’t get access to suchfeatures as the prices of such phones do not fallbelow a certain level

It raises the dissatisfaction level among theexisting users, as they are unable to avail thesehigh-end features

The handset vendors need to address theseexpectations of the large mass market to be able

to entice them towards their products



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A major proportion of the population seemed toprefer Nokia phones due to user-friendly andreliable nature

Motorola is looked upon as a fashionable product

and moreover is preferred for that only Customers are of highly switching nature in case

handsets especially after Nokia’s down turn Battery life emerges as a major determining

feature for the selection of mobile phones Pricing is not a significant selection criteria Opportunity to occupy consumers mind space by

communicating its ease of use, BATTERY LIFE &LOOKS



HANDSETS FEATURES TARGET USERS

Business series Models with dual SIM technology Business people who travelmore

Lifestyle series Models with features like sleekdesign, good appeal, music

player, fm radio, 2 mega pixelcamera

Students , Youth ,Teenagers, People preferring stylish

models

Multimedia series Models with features like 8MP AFCamera with Smile Shot, FaceTagging, 8GB expandable

memory, face detection , smileshot ,photo browser etc

People who prefer entertainment features withthe mobile.

S16 Series Feature designed specially for girls. Bright Colors, M-Cam, Cos-pocks and many more

Stylish and trendy femaleswho are sophisticated,always look for something

different that suits their personality

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S16 is a completely new Series in the market

It would come with completely new and innovative features

S16.. i.e., Sweet Sixteen – is positioned for girls, hence the nameSweet Sixteen

M-Cam is a front camera, Nokia and some other players had thisfeature but never capitalized on it, we would position this feature asa front mirror or a digital mirror (anyways rarely any one uses thisfront camera). It would be targeted at sophisticated and fashionconscious females who would definitely try this out.

A completely unique feature, “Cos-pocks” (Cosmetic Pockets).Many phones have some empty space, which they use for differentpurposes, for example Touch screens have Stylus Pockets. Wewould have similar pockets, but it would be called “Lipstick Pockets(again Targeted towards fashion conscious and sophisticatedfemales).

These pockets would carry fashionable cosmetic accessories,which omens would definitely like and could be a great hit and could

create a great turnaround in the market.



Target Market is Urban and Rural area (with main focus on lower segments in Rural India as

it is the highly untapped potential market with high purchasing power)

Target Audience is YOUTH of INDIA (Specially females with a view to create a new Female

Segment

We would attract our target audience through:

Price

Slim and Stylish looks and features Fashionable and Light Weight

Innovative technology hand sets

The segmentation strategy of ours is based on Age, Income and Occupation (With special

emphasis on the emerging middle class and the youth of India)

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Would highlight ourselves as a Middle and Premium

Segment product (Good battery back up and Signal

connectivity)

Brand for YOUTH of INDIA

A unique Style statement for the Fashion conscious and

Sophisticated people with special emphasis on young

FEMALES

A brand for those who wants to be differentiated from the

society and stand out from the crowd

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What’s in my name ?? (brand name)

Y-Cell

Easy toPronounce

Recallable

Trendy

and Fun

Catchy

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Who am i?? (Brand identity)

Bring excitement to the lives of the customers

A brand providing the customers with flavors fromall around India

A brand which is youthful, fun and colorful

The unique shapes in which it comes, whichmakes it easily recognizable amongst theconsumers

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How do I look? (Brand Packaging)

The packaging (looks) is going to be very

attractive with variant colors and a variety of features and functions

Name depiction is very informative and a laymancan also associate with it

The name is not very traditional and easily relatesto Youngistan (youth) of India

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What do I portray? (Brand

Personality) Innovative

Experimentative

Adventurous

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Brand identity Prism

Indian,Different

Outgoing, Funloving

R e l a

t i o n s h i p C

u l t u

r e

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Y-Cell GSM Mobile Now Start

Styling…

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Analyzing competitors’ cost price and offers andSelecting final price

Pricing Methods :-- Initially it was VALUE PRICING and now it is GOING RATE PRICING

Nokia uses a pricing strategy that best suits the product

Market Penetration- Nokia 1100

Market Skimming- N-95

Hence, The Strategy which was used for N-Series was Market Skimming

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AIDA in Y-Cell

A – Attention : attract the attention of the customer.

I –

Interest : raise customer interest by demonstrating features, advantages, and benefits.

D – Desire : convince customers that they want and desire the product or service and that it will satisfy their needs.

A – Action : lead customers towards taking action and/or purchasing.

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We would not stress much on Sales Promotion

ad campaigns also have a short shelf life

We would concentrate more on our

advertising strategy i.e., Concentrate on Pull rather than Push strategy

(Push and Pull Strategy )

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The advertising strategy – humor to sell handsets

360 degree brand building effort to boost the new

launch

Focused to position the brand as youth-centric

Crowd sourcing which serves two purposes – it

engages the end-consumer and the campaign is doneat the lowest possible cost

High Decibel Advertising : capture the Share of Noise

through its heavy spending initially (using vague

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Direct Marketing :

• We would promote Direct Sales activities on our official website.

• Emphasize and use DEMO style of Direct Marketing.

• Avoid Direct Mail or Telemarketing styles of Direct Marketing .

Public Relations ( PR ) :

Every Company keep on doing some or the other new events,programmes and publicity, so as to keep up with the brilliant image of the company and also to enhance the brand equity

Y-Cell will also have to do some similar activities to keep pace with the market

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Production Unit Networks Technology

China

Finland

INDIA

Mobile Devices and

Enhancements

Brazil

China

Finland

Great Britain

Hungary

India

Mexico

Romania

South Korea

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y-cell gsm mobile phones

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