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The Scenario

We are the Business Heads of

A cell phone company dealing

In premium mobiles

You all are the Board members

of our CompanyTask at hand : To introduce

a new product in the low

price segment and get you all to

approve the plan

Concern : You all are apprehensivethat such a step would affect

our companys premium image.

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Blueberry-Entering A NewPhasePresented by:

Elizabeth Betsy Joy - 11017Pankaj Naik - 11037

Ullasa Kumar Jha - 11057

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Company Profile Founded in 1998 by the Mario family in

Munich, Germany Established a reputation for providing high end

mobiles Headquarters located in Munich Went global in 2002 focusing primarily on huge

mobile markets Net worth is $17 billion Listed in Frankfurt Stock Exchange 5th largest mobile phone manufacturer in the

world Occupies 14.8% share in global smart phone

sales

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Some Variants Product Features

Intel Processors

Large Memory

(32 GB micro SD cards,1GB flash memory)

Long Battery back-up(6 hrs. talk time and528 hours standby)

Qwerty keyboard

Push e-mail, text

messaging, internetfaxing

Video conferencing

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Present Scenario of IndianMobile Industry

India constitutes approximately 10% ofworld wide sale of mobile devices

Growing influence of local players in thelow-end segment

Mobile Handset market is expected toshow steady growth through 2014 whenend user sales surpass 206 million units

Despite very high competition, theindustry is growing at a very high pace.

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Market Distribution of MobileIndustry in India

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Blueberry- India

Launched in 2004

Manufacturing unit at Bhubaneswar, Orissa

First company to provide smartphones in India

Targeted Business professionals and youngachievers

Second Largest provider of smart phones andhigh end phones having market share of 27%

Competes with Nokia, Samsung, HTC, LG andApple.

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Why low price segment? To increase market share.(Market penetration) Indian market is very diverse with BOP

consumers coexisting with sophisticated

consumers(10:1) Low- end mobile industry is rising at a rate of

17% annually Rural areas will fuel growth in the mobile

industry according to our consultancy groupDeloitte

30-40% mobile users use low-end mobiles Rising trend of people having more than one

mobile phones.

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Market Structure and

Segmentation of Low- Endmobiles

Low end mobiles have price band ofapprox. Rs 1000 to Rs 3000

This segment contributes about 38% oftotal Indian mobile device market

These phones are generally meant forbasic function, meant for people for

whom cellphones are just anothercommunication device.

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Competitors in India in Regardto Low Price Segment

Nokia

Micromax

Maxx

Lemon Mobiles

LavaGfive( Chinese brand)

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Introducing

E-zeemobiles

THE NEW PHASE

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Features of E-zee Long battery back up

(12 hrs talk-time and48 hrs standby)

Radio and MP 3player

Attractive colouredpanels (target- youth)

Mobile Torch

1.3 mp camera

GPRS and mobiletracking

Easy texting features

Water proof, robustand durable

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Expected Expenditure Cost of production : Rs1350

Distributors margin : Rs 99 (5% on sales)

Marketing expenses : Rs 100 (5% on sales)

Debtors profit : Rs 250 (12.5% on sales) Proposed price of the phone : Rs 1999

Companys profit : Rs 200 (10% on sales)

Target sales for first year : 2 million handsets

Expected revenue : Rs 4 billion

Expected profit : Rs 400 million

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Target Customers First time mobile users in semi urban and rural

areas

Senior Citizens

Economic Class (BOP) School Students

College Students( many

of whom maintain two mobiles,

one usually being a low end phone) Users needing temporary phones

Migrant Workers

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Promotional Strategies Slogans like Ab bari E-zee ki

Hoardings in public areas

Promoting through e-choupal

Tie-up with service providers like Airtel,Vodafone etc.

Radio ads-Cost effective and to reach ruralareas

Ads in print media and also in television totarget urban youth and senior citizens

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Addressing the Concern New brand name - E-zee

Provide value for money

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Thank youDisclaimer : This is a hypothetical situation