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Chaitanya AvasaralaMBA (PGPM) @ Great Lakes Institute of Management, ChennaiSAP PP and ABAP Consultant @ TCS (2013-2016)B.Tech @ University Campus ,JNTU KakinadaSowmya KoraMBA (PGPM) @ Great Lakes Institute of Management, ChennaiDeveloper @ Accenture (2013-2016)B.Tech @ RMK Engineering College ,Chennai

LITTLE RICE CASE - PARTICPANTS

Little rice in China and IndiaIn 2010, Little rice started its smartphone business in China. Within less than 4 years, It became the market leader surpassing all its competitors.The revenue of Little rice hardly depends upon smartphones. Business strengths of Little RiceOnline gamingSoftware and online services

From the above stats, It is evident that, the revenue through In-App purchases, Online games etc. are MORE in China. Hence, Little rice has got significant success in china.Let us understand the smartphone market in India ..YoY Growth rate ~ 9% Major component of transition is from Feature phones to LOW-END smart phones.The need here is a so called smart phone with basic features like Decent design with basic camera3 4 inch screen sizeFacebook, WhatsApp and other social networking websites

Smartphone market in India Contd..

People who own basic smart phones are slowly moving towards MID-RANGE Smart phones (Rs.7000 to Rs.9000)Rich and Upper Middle class may tend to buy a smartphone with High-Performance and Attractive prices. Hence, Little Rice succeeded in reaching these customers successfully through an Un-conventional method called Flash sales via Burn cash. But It failed due to various reasons like, Ban by Armed forces, Lack of localized content, patent issues and more importantly Poor Post-delivery serviceStrategies to capture Indian Market:The reputation of Little rice as a brand got diminished drastically in India.Therefore, Rather making high performance low cost smart phones in India, It is better to follow one of the below strategies.Concentrate on High Performance Low end smart phones:As the penetration of smart phones in India is increasing YoY, the purchase of low end High performance ranging from (7000 to 9000) will increase. The smart phone OS should be Android and any other OS in the phone might NOT get acceptance. The strategy to sell must be conventional by investing in retail store market and is positively correlated with attractive advertising strategies and by investing in Retail stores at various parts of the country.Once, the market share and revenue increases, Operational costs and per unit cost will be lowered. By this, it can subsidize more on price and will be able to penetrate more into the market.

Penetrate into Tablet Phone market in IndiaFavorable conditions for Middle-class people to spend more on Electronic gadgetsRise in Per capita incomeLower Inflation ratesHigh interest on Electronic gadgets (Eg: Tablets)This hints the smart phone vendors to prepare themselves for transition towards Tablet phones.

Therefore, it is the right time to introduce Little Rice in the tablet market and position itself in Tablets with High performance, more features and attractive price. As the strength of Little rice is to manufacture High-performance Low cost smartphones, The same technology can be implemented in manufacturing tablets.

These data clearly states that, Smart phone market leaders like Apple (High cost tablets) and Samsung (Poor quality) have their own disadvantages to rule Indian Tablet Market

Advantages in entering Tablet marketIt can grab the beginners advantageHigh chances of becoming a market leader in Tablet marketIn-App/Games purchases in Tablets are very high when compared to In-App/Games purchases in smart phones as they spend more time on Gaming.Little Rice has all the setup of Online games and Services. Hence, It will become a huge advantage in both the directions.Sales Strategy:As the target group is Upper middle class and Rich people, the very strategy of Flash sales via Burn cash can be implemented.How to enter US and UK Market: US/European Market are very matured markets since decades and there are 78% smart phone users. The market share of each vendor is as follows.

Little Rice in US ContdAs Apple holds the highest component from many years, US Market got used to I-products. But, the price of an iPhone/iPad/iPod are high. After the penetration of Googles Android, Samsung occupied second place in the market share. Even the component of Non-market leaders (Others) is significant. This hints the very attitude of Americans who encourage the new comers of the market. Also , the penetration of smart phones in US and UK are very high as shown.Asian smart phones in US and UKLet us see the share of East Asian countries in US&UK Smart phone marketSamsung South Korea 28.9% market share in USXiaomi Chinese 5.6% market share in USLG Korean 5.2% market share in USHuawei Chinese 5.1% market share in USSony Japan 11.2% market share in UK

Little rice strategy in US/UK Market should be -

Making high performance relatively low cost phones with better features like Android OS and Better UI for gamingAdvanced security and Hands-free voice controlMassive battery life and Turbo power chargingOptimal screen size between 4.7- 5.5 -inch smart phoneBetter design and customizable hardwareHigh performance Hardware (RAM, Processor, storage)High camera quality with smart capturing options.