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Marketing presentation on the Mobile Phone market in India.
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Marketing PresentationGroup V
Aditya Gupta
Rashi Dalmia
Shreyas Meher
Presentation Timeline
Introduction Background Major Players & Market Share
Emerging Trends
The FutureStrategies Adopted
The Mobile Industry
Introduction
Government Regulations
Industry
Factors for high growth
Smartphones
Government Regulations
1.Till1984, telecom services were under the state governemnt control with the Department of Posts and Telegraph.
2.In 1985, the Depertmentof Telecommunication was set up and
3.In 1994 the National Telecom Policy was set up – Liberalisation was allowed, foreign firms were eligible to 49% of the total stake,
4.The market did not increase much until 1997 – why?
5.Telecom Regulatory Authority of India (TRAI) was set up in 1997 – resulted in more competition
Industry – Reasons for High Growth
1.Highly competitive - The Herfindahl-Hirschman Index of 2000 - availability of more affordable handsets, including smartphones, and significantly lower call rates
2.Growing income of middle class families 3.Low rate of mobile connection plans4.Technological advancement 5.India offers a demographic profile that few
countries can match.
The domestic demand for handsets is expected to touch 350 million units per year by 2020
Cellular Operators Association of India forecasts the handset market will reach 1.24 billion – one mobile phone for every person living in the country – within 2015.
Smartphones
• India is among the fastest growing smartphone markets in the world, being the 3rd largest in the world. This trend is evident by the massive influx of handsets into the country, 22 million Smartphones were shipped in India in Q4 2014 alone.
• The number of devices launched in India during the first half of 2015 stood at 857 and an estimated 1,700+ devices will be launched before the end of the year.
Smartphones penetration in India's mass market has accelerated from 2.5 million handsets in 2009 to about 27 million in 2014 and is estimated to cross 6,100 by 2020.
In 2012 they accounted for 10-12 per cent of the total handset market. This share is expected to rise to half of the market’s total expected sales of 156 million units by 2017.
Rural buyers
1. Increase in procurement price by Govt2. Increase in agri employment boosted by good
harvests and governemnt plans like National Rural Employment Guarantee Scheme (NREGS) that guarantes 100 days of emplyment to one memeber of every rural househols and raised wages
“India is currently the second-largest telecommunication market and has the third highest
number of internet users in the world “
Why is India the next frontier?
Strong Adoption Large Investments into the country
Government backing
Samsung is a South Korean multinational conglomerate headquartered in Samsung Town, Seoul.
Diversified into areas including food processing, textiles, insurance, securities and retail
Highly globalized in electronics, particularly mobile phones and semi conductors.
Highest market share in India – 22% (IDC)
Outright market leader in India
High volume support from sub 15,000 rupee phones such as Galaxy Star Pro, Galaxy S Duos, etc.
Aggregate revenue of INR 7,891 crores in 2012
Indian consumer electronics company headquartered in Gurgaon, Haryana
Established in 2000, as an IT software company
Entered the mobile handset business in 2010.
Market share is 2nd – 18% (IDC)
As of Q3, 2014 Micromax is the tenth largest smartphone vendor in the world
Most competes in the lower-middle tier of smartphones, with a low share in feature phones
Total revenue – INR 2,289 crores in 2011
In 2014, they created a spinoff venture named YU Televentures
Intex Technologies was incepted in the year 1996, and is an Indian smartphones brand
Present in a lot of consumer electronics products, and IT accessories
Is currently at number 3, in relation to market share of smartphones (8%)
Intensive marketing efforts, along with a focus on lower end mobile phones
Lava International Ltd. Is an Indian mobile handset company
In 2012, they created a spinoff called XOLO along with Intel
They also entered the tablet business in 2012
Only Indian brand to make phones for both Windows Phone as well as Android
Heavy marketing spend, along with having a good amount of visibility among its distributors
Market Share of 7%
Xiaomi is a Chinese company which entered India in early 2014
Known for their value for money products, and good quality
It is the largest mobile phone vendor in China
Entered the Indian market in July 2014 and sells via Flipkart, Amazon, and Snapdeal
Case Study
Market Share – 4% of the smartphone market share
Nokia is a Finnish multinational communications company
Annual revenues of around €12.73 billion
Nokia was dominant in the mobile market before the advent of Apple’s iPhone, which shook the market apart
In 2011, they made a pact with Microsoft to exclusively make Windows Phone devices
How did Xiaomi succeed? High quality products
Innovative products
Ecosystem development
Great relation with the Customer
Innovative Marketing methods
Fast Iteration cycles & Lean manufacturing
High Quality Products Xiaomi products are known for their value proposition
Products having a relatively low cost, but offering high levels of quality
Decent profit margin, even with low prices
Similar to the Kindle model, created by Amazon
Innovative Products Constant lowering of costs so as to further enhance their accessibility
Development of MiUI, which is their version of Android
Extremely intuitive features for various age groups
Ecosystem Development
Great relationship with the customer Removed barriers between employees and customers via the creation of forums
Direct communication possible
Social activities both online and offline led to creation of fans
Also led to a fast iteration cycle, based on actual usual feedback
Innovative Marketing Methods No actual marketing budget
Exclusive marketing through various social media platforms
Decrease in overall costs, as marketing costs are getting bigger and bigger
Use of Hunger marketing
Use of accessory sales to make the actual profits (Amazon)
Fast Iteration and Lean Manufacturing Xiaomi follow a very fast iteration period, where customer reaction and responses inform them on the needs and wants of the customer base.
Xiaomi also follows the ‘Just in Time’ method of production, where they only produce as needed, and production is more often than not based on last weeks sales and demand.
This helps them save on inventory costs, and also prevents stocking up of unsold units.
Thank You!