What The Indian Telecom Giant “Micromax” Is Doing Now? [Analysis]

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Micromax is one of the leading Indian Telecom companies and currently the company is operating its business through its 23 domestic offices across the country . The company has also international offices in USA, HongKong, Dubai, and now in Nepal. The company ventured into the Indian mobile handset market in 2008 and concentrating strategy on the rural segment first. It generally seems that any companies first try to lure intellectual tech-savvy folks in the urban sector, however, I think that it was the distinct vision of the company.

The company launched its first mobile handset phone with 30 days batter standby time in the rural areas. The handset was manufactured by keeping unavailability of electricity in rural village in the mind. Definitely, the handsets had  proven a good endeavor of the company’s strategy and marked runaway success around the country. The price was also kept nominal just Rs 2150 so that users could easily afford.

I think it was the first attempt of any company in the market, and upshot, Micromax emerged as one of the desired companies among folks. Besides this, the company also launched some other innovative products in Indian market prior to launch of other existed players such as dual SIM/Dual Standby, handset switching Networks (GSM-CDMA), and aspirational Qwerty keypad handsets in India.

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Micromax had adopted little different distribution strategy in the market that it managed to pay the dealer in advance with the greater margin so that it could insist users to purchase the company’s device. For increasing the penetration of the company’s handsets in the Indian market it tied up with the carrier operator Aircel. Micromax came into the 150 zones in order to have prominence and better accessibility in the market.

The company has tried to produce high quality product at the nominal price, had set-up its R&D in the country. The company spent RS 100 crore for creating its brand value in 2010 and tried to attract a vast numbers of new and existing users with multi-platform. For this, the company took help of social media networking site and multimedia platform. The company tied-up with facebook in order to make a  better impression over social media users. The intent of the company was quite obvious to launch QWERTY keyboard, so that, users could efficiently send or write post on the social networking site using the keyboard. The company established a relationship with MTV and released numbers of handsets to provide innovative experiences of radio, MP3 player and camera to youths.

The company has also categorized  its targeted customers into three part: rural, the urban youth and high profile users. However, the company has solely targeted to rural users and why not? The company has maximum numbers of users who belongs to rural area and these users have made the company to reach at such level. The company has targeted youths by introducing efficient memory card, better music technology and camera into its mobile handsets. The success of  the company’s mobile handset Xii having 30 days standby capabilities inn the market  motivated it to go aggressively into the other part of the country. And thereafter, the company has created a distribution network which is currently possessing 34 super distributors, 450 distributors ad 55,000 retailers.

How Microsoft has invested to make its brand value in the market, it seems from the participation of the company in IPL as one of the big fish. it’s quite known that the company was one of the prominent sponsors of the South Africa VS India ODI series in 2010.

Micromax has the tagline “Nothing like Anything”. What the company want to convey from its tagline. As I think the company wants to communicate that the products of the company is not just like other products which are being manufactured by other manufactures.

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For improving its brand value and making more impression in the market, the company has included Bollywood superstar “Akshay Kumar” as the brand ambassador in its camapign this time. The company has presently a good penetration in rural as well as in urban areas. The company might be thinking advent of Akshay as brand ambassador will help to soar the demand of the product across the country. The ad campaign of the company seems ridiculous; I can’t imagine that Lowe Lintas could make such embarrassing ad. Micromax’s “Gamolution” handset might do super in the market but as per the  perspective of ad campaign, it  is not supporting the product anyway. The ads is just funny noise and demonstrating some glimpses of crap acrobatics. Definitely, the company is confused with how to project Akshay Kumar—a stereotype actor—in the ad . As I think this ad campaign could damage the image of Micromax in the market. I asked many of my friends about the ad, everyone responded in same way, “senseless ad”. The video (below) is demonstrating how the company is confused with ads strategy:

httpv://www.youtube.com/watch?v=TxVXRSh7Bws

I agree with the company’s strategy to produce good product at reasonable price. Undoubtedly, the company gabbed 5% of share in Indian mobile handset market last year. Despite of all these, I still little disagreed with the company performance that it’s not yet focusing on the quality of communication. The company is presently focusing on on Android OS and it has high expectation from CEO Deepak Mehrota and Ajay Sharma (ex-country head, HTC) to lead the Smartphopne division.

There’s no dichotomy that Micromax has outstandingly marked its successes in the India in dual SIM handset manufacturing. A recent report has revealed that 57% mobile handset sold in India last year was multi-SIM mobile handsets. There are several other players in India such as Karbon, Maxx, Lemon, Lava, Spice and more. They all have established itself in the market and some other big fishes like Nokia, Samsung, and HTC could provide stiff resistance to the company to grown in the market. Anyway, it’s time for the company to launch some world class innovative products in order to contend global mobile handsets manufactures.  The company need to improve product, market and branding strategy to dominate in the market.

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