Pitch for Micromax Mobiles.

By: The Connecting Link Media Agency

 Mobile handset category
Category Introduction Market Share of Top Players
2009 Market Share
•Penetration of mobile phones has 17.5

reached saturation level in urban areas, 2

The growth in the category will be 5.1
primarily from tier II and III cities, and 7.1
54.3
from rural areas
14
•New technology to differentiate Nokia Samsung Sony LG Motorola Other
offering in terms of hardware, software
and content, while keeping prices Sales trend (Val & Vol)
competitive
600,000

500,000
•Max sales happens through Electronics
400,000
and Appliance Specialist Retailer
300,000

•Forecast category growth 200,000

•Vol -68.8% (2009-14) 100,000

•Val -40.9% (2009-14) 0
2004 2005 2006 2007 2008 2009

Units (000) Rs mn
 units Trends
CAGR (2009-2014) reaching 205 million
Volume sales Projected Growth: 68.8% Average replacement cycle – 15 months
in 2009 from 24 months 2007
than 121 million units
Volume Sales(2009):12% reaching more Dual SIM phones was fastest growing
products growing at 15%
Stats

Mobile Phone
Market India
Prospects
competition from new entrants.
Motorola share fall from 5% to 2% in 2009,
Primary Demand from tier2 and tier3 cities from 10% 2008 to 14% 2009
and rural areas Samsung: fastest growing company- share rise
With Launch of 3G, consumers expected to New Entrants: Micromax,Mifone,Karbonn
upgrade to smart phones
sales,2009
Need to establish effective distribution Nokia, leader with 54% total volume
system and increase brand awareness
Competitive Landscape
Need for innovative products at reasonable
pricing
 Current Market Trends in the Handset
category
 Key growth drivers
 Undeveloped Rural Markets
 Enhanced Distribution
 Decreased Prices of Handsets
 Dual SIM phones- fastest growing segment
 Overall market share increase from 3 % in 2008 to 15% in 2009
 Smart phones- popular among young, urban professionals
 Business enhancing applications
 Facilities beyond communication- GPS, Web Browsing, Instant Messenger
 Market share of smart phones close to 4%
 3G penetration
 High speed, Clarity, Faster Internet Access
 Companies offering 3G- MTNL, BSNL, Airtel, Docomo
 Penetration still low-Only 20% mobile handsets sold in 2009 were 3G
enabled
 Mobile Phone Market Share New Entrants like
Micromax,, FlyMobile,
70 Universal, Karbonn

60
60
56.2 55.8
53.6 54.3

50

40 Effective Distribution, New

Product Development, wide range
of handsets

30

20
17.2 14
11.2 10
10 7.1 8.3 7.1
5.95.6 4.8 6
4.3
5.4 4.5 5.1
0
2005 2006 2007 2008 2009

Nokia Samsung Sony LG

45
41 Mobile Phones TV Ad Spend Share
40

35

30

25 23
20
16 16
15
13
10

5 7
5 8
0 4
Nokia 0
Samsung
LG
Sony Ericcson
Micromax

2008-2009 2009-2010
 Source : http://www.indiantelevision.com
 Cellular Phone Ownership Change

90 82 83.77
80 76.13 76.77
70 64.62
60
50
40
30
20
10
0
Changing ownership pattern

SEC A1 SEC A2 SEC B1 SEC R1 SEC R2

• Entered the Indian mobile handset market in March
2008

• Overall market share has increased from 0.59% for the

quarter ended September 30, 2008 to 6.24% for the
quarter ended March 31, 2010
–  40 distinct mobile handset models

• Currently has strong presence in Rural India and s

expanding rapidly to Urban India
Key Handset Categories
 Marketing Objective
• Focus on the unique functionalities of
products to further develop our reputation for
innovation

Media Objective
• To upgrade its Micro-Max image perception
and be able to create a brand equity at par
with the likes of Nokia, Iphone, Samsung, LG,
Motorola and other established brands
 80 % sales in Rural areas
• High Profile Users 3
• Technological Innovation
• Urban Youth 2
• Innovative features
• Rural Sector 1
• Regular features at affordable price
Target Audience
 Segmentation
Demographic:

Town Class SEC Age Group

• Towns with 5 • A1 A2 B1 • 16-49
lakh+Population • R1

Geographic:
North Zone  
South Zone
Haryana West Zone
Kerala East Zone
HP Maharashtra
AP West Bengal
Delhi Rajasthan
Karnataka
Uttaranchal Gujarat
Tamil Nadu
Chandigarh
 Who are we talking to - Primary Target Group
Mr.Rahul Taneja |(24- 40Professional
Banking Yrs) |
Age: 28 years

Status : Married

City: Mumbai

Occupation: Investment Banker

He uses a smart phone and stays up to date with

the latest technological advances. The mobile
phone is his status symbol.

Owns a Nokia E72 phone which is quite old and is

planning to buy a new phone

Picture Courtesy: Getty Images

 Who are we talking to

Tech-savvy
Experimenter

Early adopter Keyed In To The

Bottom-line

Trend Setter
Status Conscious

Picture Courtesy: Getty Images

 Secondary Target Group
Age:16-23 years
Occupation: Student
- Look out for Innovative features
- Would aspire to become like our
Primary TG

Age :41-49 Years

Occupation: Working
Professional
- Would still like to behave
in the same way as he did
Courtesy :http://www.istockphoto.com
in his early days
Competition Insights
 High Low
BDI/High BDI/High
CDI CDI

High Low
BDI/Low BDI/Low
CDI CDI

•Looking to Double its market share to 10% by 2010

•Target to achieve Rs 3000 crore revenue

•Marketing and Branding Expense , Rs 300 crores BDI/CDI mapping for Top LG Market States
•Strengthen retail and distribution business

•Roping in new Brand Ambassador

160
•New Model launch 140
•Multimedia campaign 120
100
80 BDI
•Ref: http://www.business-standard.com/india/news/lg-eyes-10-market-share-in-mobile-handset/86184/on

60 CDI
40
20
0
AP Maharastra UP WB
 High Low
BDI/High BDI/High
CDI CDI

High Low
BDI/Low BDI/Low
CDI CDI

•45% of its 2 lakh retail outlets are in the rural

areas
BDI/CDI mapping for Top Nokia Market States
•Nokia market share dipped from 64% in ‘08-09
to 52.2% in ‘09-10
160
•Nokia remained the market leader with 52%
share, despite a 15% revenue dip to Rs 14,100 120
crore
80
•Nokia introduced its first dual-SIM handset — 40
C2 — in India in August , a move some analysts BDI
called a ‘startlingly late reaction 0 CDI
e sh t ra d u UP
sh a
rad r l N
a P aha m
i
h r M Ta
d
•Ref:Indian Handset Brands Grab 14% Mobile Market Share 
http://teck.in/indian-handset-brands-grab-14-mobile-market-share.ht
An
ml#ixzz17XpdMAyp
 High Low
BDI/High BDI/High
CDI CDI

High Low
BDI/Low BDI/Low
CDI CDI

•Plan to add 6% market share from current 17%

BDI/CDI mapping for Top Samsung Market States
•3G handsets contribute around 5% of total
Samsung handsets sold with doubling target 200
160
•Samsung leads the touch screen mobile market
with over 30% share 120
80
•Samsung provides wide portfolio of around 17
handsets that are 3G enabled. 40 BDI
0 CDI

• Ref:
http://business.rediff.com/report/2010/sep/07/samsung-plans-aggr
essive-smartphones-for-india.htm
 High Low
BDI/High BDI/High
CDI CDI

•Sony Ericsson, having 6% of market share in High Low

India, is looking forward to revive its fate BDI/Low BDI/Low
with feature rich multimedia phones. CDI CDI
•Sony Ericsson had a negative growth of 49
per cent YoY by the end of FY 2008-09, as the
company did not have any attractive product,
after the Walkman series.
BDI/CDI mapping for Top SonyEricsson Market
States
•The company is also adopting a new brand 350
message 'make.believe' in all consumer 300
communication in order to reinforce its 250
entertainment credentials and collaboration 200
with the Sony Group.
150
100 BDI
•In India Sony Ericsson had a turnover of Rs
50 CDI
3,083 crore in the year 2007-08. It felt down
to Rs 1,554 in the year FY 2008-09, according 0
to V&D estimates.

Ref: http://voicendata.ciol.com/content/news/109091401.asp
 Target Market and Prioritization

• Target market will be primarily done on the basis of Cellphone penetration

– Currently Micromax is a dominant player in the Rural Arena and the objective is to up the
image in Urban Arena

• The focus is to tap the Urban markets and prioritization is done accordingly

• Another factor considered is competition activity in the particular states

and individual Brand BDI/CDI

• Target markets Include

– Town with a population of 5 Lakh + in the Urban Arena
– The focus states include Maharashtra, Delhi, Tamil-Nadu, Karnataka, Kerala, West Bengal,
Chandigarh
 North Zone
Markets Nokia - LG – BDI Samsung – Sony - CDI
BDI BDI BDI

Chandigarh
196.38 93.36 239.92 197.6728 189.35
Delhi 173.15 183.78 294.23 319.302 203.82
Delhi &
urban
Environs
172.50 197.15 295.03 313.6818 202.26

West Zone East Zone

Markets Nokia – LG – Samsung – Sony - CDI
BDI BDI BDI BDI Markets Nokia LG Samsung Sony CDI
-BDI

Maharashtra West Bengal

107.10 135.76 173.72 131.69 116.06 75.22 100.8 185.69 81.62 89.26

South Zone
Markets Nokia -BDI LG - Samsung - Sony - CDI
BDI BDI BDI

Kerala 142.12 176.92 83.93 119.19 131.45

Tamilnadu 116.61
165.67 96.58 312.0288 153.24
Andhra Pradesh 80.76
102.97 125.37 72.17 101.70
 MEDIA MIX-2011

To Generate
awareness
Opinion leader to
Increase reach increase brand Image
TV –National Radio-
Outdoor & & Regional Content
Digital Signages integration
with RJ

Social Build
In Films Brand image-
Marketing
& PR Quality and
Reliability
Print innovations
Mall Activation
magazine &
Event sponsorship
newspapers

Functional Saliency for Micromax

Message
 Other BTL Innovations
• Micromax Mobile Charging Stations :
– Branded Micromax mobile charging stations at Airports, Hotels and
Cinema Halls

• A loyalty Exchange program for Micromax Consumers for

purchasing New Innovations

• Branding at Metro Stations in Delhi, AC Buses in Mumbai

• Tie up with a Pan India multiplex chain for promoting

Micromax
 Media ACTIVITY CALENDAR
ATL TV   Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
    Reach 70 70 70 70 70 70 70 70 70 70 70 70

    No of People Reached 37721 37721 37721 37721 37721 37721 26944 26944 26944 26944 26944 26944
    Frequency 6 6 6 6 6 6 4 4 4 4 4 4
    GRP 420 420 420 420 420 420 280 280 280 280 280 280
                             
                             
  Print   Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

    National Dailies (Inserts) 4    4    4    4   

Magazines
(Regional and National
Magazines)(Innovative
    Inserts)   8    8    8 4  4    
                             
  Outdoor Innovations               Innovations  
                             
  Radio Content Integrations   240     240     240     240  
                             
  Internet Continous interaction Facebook, Twitter Blogs
                             
BTL                            

Tie up with
an Derby
  Sponsorship Events Sponsorship                       Event
Joint Promo and
  Infilm Integration               Infilm      
  IPL         IPL              

Onground Mall Mall Mall Mall

  activation       Activtn     Activtn     Activtn     Activation
 Estimated activity costing
Media Requirement Approx. Rates Break up of Cost Total Cost
Radio 8 times daily for 4 10 sec slot Rs.650*960 Rs 624000
months (Total Spot
960)

Newspaper 4Ads - one in week 10K per sq cm for Rs.10,000 * 1000 sq Rs.16 crores
of first month of a HT front page- all cm* 16
quarter ( each on the editions
Front Page) each of
approx.. 1000 Sq.cm
4*4= 16

Magazine Frequency: 8 inserts Double Spread in Rs. 50,000 * 32 days Rs. 16lakhs for
in 8 different the first 10 pages months
magazines 2nd/3rd of the magazine
month of a quarter
8 * 4 = 32

*Sources: star.co.in , HT Media & www.businesstoday.in

 Estimated activity costing
Media Requirement Approx. Rates Break up of cost Total Cost

Billboards 5 billboards : 40 * Rs. 12-14 lakhs / Rs.12lakhs * 5 * 4 2.4 Crores for 4

40 ft month in high months months
traffic roads

Print Advertorials 12 advertorials Rs.5,000 /month Rs.5,000 *12 6 Lakhs

months

Event Based Derby Tie 20 Lakhs/Derby 20 *5 Rs 1 Crore

Promotions

Mall Promotions 50 Malls in India Rs. 1 lakhs/ 50*1 Rs. 50 lakhs

day/Mall

*Sources: O & M , Easycabs, imajus, Mahindra Auto

 Estimated activity costing

Media Requirement Approx. Rates Break up of cost Total Cost

IPL Spots and Joint 2 Crore 2 Month 2 Crore

Promo During IPL

*Sources: star.co.in , HT Media & www.businesstoday.in

 Team:
• Jaymin Trivedi – 98
• Prasenjit Karmarkar – 114
• Rishabh Sharma – 121
• Satyaprem Upadhyay - 126
• Shradha Mishra - 131
• Subhanka Roy Choudhary - 136
• Svablum Malhotra – 141
• Vikesh P. Jain – 147
 Thank You
When can we meet you next…!!!