ACKNOWLEDGEMENT
This report is based on the research undertaken as the part summer training project
“Advertising in Micromax Mobiles” at Micromax Telecom Division, Micromax India
Ltd.,Nehru Place, New Delhi.
During the course of this project, I had the valuable opportunity to work on the live
project based on “GSM technology” being executed by Micromax for its users or
clients.
I hereby acknowledge my deep regards to all the persons who actually took physical as
well as mental work in the compilation of this project from Micromax Division. However
some of them are those whose responses were of great nature, therefore they must
endorse through this acknowledgement.
I wish to express my sincerest thank to my external supervisor Mr. Anuj Gupta
Manager-Marketing & Sales, Micromax India Ltd., Delhi. for his timely help,
valuable comments, suggestions, spirited guidance and encouragement during the whole
project.
Unfortunately, it is not possible to acknowledge the efforts of each of the individual who
so graciously contributed there time and information in the compilation of the project.
Whoever their efforts are highly appreciated.
PREFACE
The wide ambit of the project, which is the internal part of the BBA course, guaranteed
me extensive exposure to various concept of GSM,CDMA ,Flip and other camera and
video technologies among other things. Apart from these technical and non-technical
aspect, I learnt the all important skills of team work, official communication, work ethic
and responsibility.
During the course of training we were expected to use and apply our academic
knowledge to gain a valuable insight with all its environmental operational complexities.
The said training offered a valuable opportunity to us to meet the academic knowledge
and transform it into practical one.
I undertook the said training at Micromax Telecom Division. During the training I did a
survey aims at studying and analysis the current market scenario of mobiles,
requirements of the customers about the features and its pros and cons, future needs of
various mobile companies.
I had the unique privilege to assume an assortment of role including problem
identification, theoretical framework, research design, experimental design and setup,
data collection, analysis and interpretation, observing findings and providing suggestions
and recommendations etc. and also gained valuable experience of working in a formal
industrial setup which would go a long way in building a sound career in marketing field
in future. Also its is my heartful gratitude to Micromax for providing me their world class
facilities and delightful work environment and ambience.
In the report I have put my best efforts to compile the data to the highest level of
accuracy and give my views to best of my judgment.
TABLE OF CONTENTS
1. Preface
2. Introduction
2.1. Industry Profile
2.2. Company Profile
2.3. Product Profile
3. Research Methodology
3.1. Research Objectives
3.2. Research Design
3.3. Sample Design
3.4. Methods of Data Collection
3.5. Data Analysis
4. Analysis and Finding
5. Limitations
6. Conclusions and Recommendations
Appendices
Bibliography
INTRODUCING MICROMAX MOBILES IN INDIAN MARKET
OBJECTIVE : To study micromax mobiles in Indian market and to identify their marketing strategies.
INDUSTRY PROFILE:
The growth has more or less flat [owing to low sales figure in Q1] – in total,
101.54 million units of sales were registered.
Local manufacturers have grabbed 18.1% market share [from 0.9% in 2008].
Only 5 local manufacturers in 2008 and the number stands at 28 now.
Nokia market share in India fell from 56.2% share in 2008 • to 54.1% in 2009.
Samsung Electronics Co. Ltd’s share rose marginally to 9.7% from 9.5%.
LG’s share dropped from 7.2% to 6.4%.
Of the local manufacturers, Micromax leads the race and holds a
market share stands of 4.8%.
Courtesy: IDC report on growth of mobile sales in India, 2009
COMPANY PROFILE:
Micromax Informatics Ltd is a New Delhi, India based Telecom manufacturer and
distribution partner to Nokia, Samsung, LG etc for their IT / Telecom products in India.
With an annual turnover of INR 5000 million, Micromax has offices in all major India
cities and global offices in Dubai and USA.Micromax has been making supplies to the
Indian GSM operators for their different telecom requirements and is now expanding
their product range to the global markets. Micromax's products comes with a qualty seal
meaning product satisfaction, high relieability resulting in repeated business. Micromax
has their own 24 hour operational customer service centre just in case you need that small
bit of information albeit at the wrong hour.
MARKETING METHODOLOGY:
Micromax, started operations in 1991 as an embedded software design firm, but was
incorporated as a company in 1998, when it branched out as a distributor of computer
peripherals such as printers, monitors, scanners from manufacturers such as LG, Sony
Inc., Dell Corp.“We hope to be present in at least one country each in Latin America,
Middle East and Africa before the end of the financial year,” Jain said.
Geographical Segmentation: The firm has identified Brazil, Nigeria and Dubai as
target markets. Micromax specialized in entry-level and mid-segment handsets priced
between Rs1,800 and Rs2,400 when it started selling the devices in 2008, confining itself
to small towns and rural areas in the first 12-18 months. One of the major aspects that
contribute towards the substantial monthly growth of Micromax is its 80% sales in the
rural areas.
Micromax is planning to expand its range in keeping with new market demands. It is
readying several high-end handsets, including phones that will run on Google’s Android
and Microsoft’s Windows Mobile operating systems (market stretch). The handsets are
expected to be available in “April or May”, Jain said Having gained traction, Micromax
is also working on a strategy to create awareness in the metros, which includes tying up
with MTV for co-branded phones.
Distribution channels: “Once you have established a good distributor network and sales
are robust, the next logical step is branding exercises to ensure consistent brand re-call
among your target consumer base,” said Romal Shetty, executive director and head
telecom practice at audit and consulting firm KPMG India. Encouraged by its success,
the firm expanded to larger cities and now has a distribution network of 55,000 retailers,
which it plans to scale up to 70,000 by the end of March as part of its strategy to raise
sales to 1.5 million handsets a month.
Branding: Micromax has also tied up with a Bollywood celebrity “who will be
announced shortly” as brand ambassador, Jain said. Bollywood star Aamir Khan endorses
Samsung phones.
The Micromax phones are designed by the in-house research and development team, as
is the embedded software. The on-board chips come from MediaTek Inc., Qualcomm Inc.
and Infineon Technologies AG—the last two also count Nokia as a client. Manufacturing
is outsourced to about 11 factories in Taiwan, South Korea and China.
Micromax has invested Rs100 crore to set up a plant in Baddi in Himachal Pradesh as it
feels outsourcing manufacturing completely leaves the door open for supply-side
uncertainties. Production will be scaled up from an initial 50,000 per month.
Micromax is one of the leading Indian Telecom Companies with 23 domestic offices
across the country and international offices in Hong Kong, USA, Dubai and now in
Nepal. With a futuristic vision and an exhaustive R&D at its helm, Micromax has
successfully generated innovative technologies that have revolutionised the telecom
consumer space. Micromax is on a mission to successfully overcome the technological
barriers and constantly engender “life enhancing solutions”.
The company’s vision is to develop path-breaking technologies and efficient processes
that incubate newer markets, enliven customer aspirations and continue to make
Micromax a trusted market leader amongst people. The Micromax ideology stems from
its rooted belief in ‘Innovation’ and delivering “nothing short of the best”.
Product line: Micromax has a lot of “firsts” to its credit on their versatile product
portfolio. It was the first to introduce: Handsets with 30 days battery backup, Handsets
with Dual SIM / Dual Standby, Handsets Switching Networks (GSM - CDMA) using
gravity sensors, Aspirational Qwerty Keypad Handsets, Operator Branded 3G Handsets,
OMH CDMA Handsets, etc
Promotion: With a 360 degree advertising (media, internet, TV and print media) and
marketing strategy sketched out, the company has an optimistic outlook for the telecom
consumer space. Currently present in more than 40,000 stores across the country, the
company plans to have an aggressive market incursion to reach out to its customers
through 70,000 operational stores in the coming year.
After building a strong presence in the rural market, where the prominence of both
subscribers and operators is rapidly increasing, Micromax’ is now progressively moving
towards establishing its foothold in the competitive urban towns as well.
With young enthusiasts as its anchor, Micromax Informatics Limited has created a
niche for itself in the telecommunication industry. Micromax ventured into the
telecommunication industry with an end-to-end solution of Fixed Wireless Devices and
Wireless Data Cards.
In the year 2008, after delivering upon the technology of fixed wireless-powering desired
products, the company forayed into one of the most predominant genres of
telecommunication – Mobile handsets. Since then Micromax has received commendable
response for its unique and interesting handsets.
Innovation, Cost-Effective, Credible and an Insightful R&D, have now become
synonymous to Micromax in the telecom vertical. Today Micromax has become a brand
which people relate and look up to for realizing their individual device preferences and
other out-of-the-box solutions.
Vision
Micromax India's Vision entails helping people improve the
quality of their lives by providing them with superior quality,
state-of-the-art technology products at the right time and the right
price. But beyond its role as a purveyor of quality products in
India, Micromax seeks to contribute to the economic growth of
the country though its export commitments and large scale
production facilities generating secured employment for hundreds of Indian people.
At Micromax, we strive to contribute to the development of the electronics and
components industry in India by enhancing the knowledge levels of our workforce
through the introduction of our advanced management systems and production know-how
in our manufacturing facilities by introducing our Indian vendors to our world class
quality systems and helping them in improving them in their own quality systems and
production processes and setting benchmarks for the industry both in terms of after sales
service for our products, quality systems and management techniques at our facilities or
our products themselves.
At Micromax, we believe in returning to the community some of the profits we earn from
it, through the social causes we espouse. We view ourselves not as an MNC operating in
India, but as an 'Indian Company' operating here, conforming to the laws of the country
and committed to working for the Indian community.
We want and to be seen as the 'Most Respected' Indian Company.
Value & Philosophy
What makes MICROMAX one of the world's leading companies?
How we got here
Ever since it was founded in 1938, MICROMAX has continually refined its mission
statement to respond both to change in itself and in the world: "Economic contribution to
the nation," "Priority to human resources," "Pursuit of rationalism." Each slogan
represents significant moments in MICROMAX's history, reflecting different stages of
the company's growth from a domestic industrial leader into a global consumer
electronics powerhouse.
In the 1990's, we once again acknowledged the need to transform our mission statement to keep pace with our growing global
operations, rapid changes in the world economy, and escalating competition from well-established rivals.
Our Management Philosophy
"We will devote our human resources and technology to create superior products and
services, thereby contributing to a better global society."
Our management philosophy represents our strong determination to contribute directly to
the prosperity of people all over the world - a single human society. Key to our efforts is
our own people, whose talent and creativity are dedicated to doing their best at all times.
Technology also plays an important role in making it possible to achieve higher standards
of living. And superior products and services are what we are all about.
We believe that the success of our contributions to society and to the mutual prosperity of
people across national boundaries truly depends on how we manage our company. Thus,
we challenge the world to create the future with our customers. Our determination is
growth - a perpetual challenge - but always working within the context of cooperation
and inclusion of our customers.
Research & Development
The company’s thrust on Product Innovation and R&D have given the company a
competitive edge in the marketplace. Micromax has set up Micromax India Software
Centre (SISC) and Micromax India Software operations unit (SISO) for software
development at Noida and Bangalore respectively. While the Micromax India Software
Centre in developing software solutions in Micromax’s global software requirements for
hi-end television like Plasma and LCD TVs, SISO is working on major projects for
Micromax Electronics in the area of telecom: wireless terminals and infrastructure,
Networking, SoC (System on Chip) Digital Printing and other multimedia/digital media
as well as application software. In addition to working on global R&D projects, SISO is
also helping Micromax India’s CDMA business by focusing on product customization for
the Indian market. While the Micromax India R&D Centre has around 300 employees,
SISO currently employs over 800 highly skilled professionals.
With an investment of over USD 100 million, SISO is charting out major growth plans in
the country, with its current focus being in the 4G & Multimedia area. SISO has already
applied for 145 patents based on the software development carried out here in India. In
fact, SISO has a special Intellectual Property Team working on securing Patents for its
breakthrough projects. SISO plans to continue its focus on Multimedia & Protocol
development; build a strong competency in technology and focus on WCDMA
technology and User Interface.
Micromax India is also carrying out Hardware R&D at its Noida R&D Centre. The focus
of the R&D Centre is to customize both Consumer Electronics and Home Appliance
products to better meet the needs of Indian consumers. From colour televisions designed
for higher sound output, to washing machines with special ‘Saree Wash Course’, DNIe
vision series of Flat CTVs especially designed for the Indian market to Micromax
mobiles with regional language menus, the Micromax R&D Centres in India are helping
the company to continuously innovate and introduce products customized for the Indian
market.
WIRELESS INFRASTRUCTURE
Overview
Architecture point of view,UMTS logically is divided into CS Domain and PS Domain.
CS Domain refers to the set of all CN entities offering CS type of connection for user
traffic as well as all the entities supporting related signaling. PS Domain refers to the set
of all CN entities offering PS type of connection for user traffic as well as all the entities
supporting related signaling. The network elements MSC and GMSC belongs to CS
domain whereas the elements SGSN and GGSN belongs to PS domain.
UMTS
UMTS Core Network is a Third Generation (3G) mobile communications systems being
developed by Micromax within the framework defined by the ITU and known as IMT-
2000. UMTS will deliver low-cost, high-capacity mobile communications offering data
rates as high as 2Mbit/sec under stationary conditions with global roaming and other
advanced capabilities. 3G core network system enables users to transmit voice, data, and
even moving images. In order to realize these services, 3G improves the data mission
speed up to 144Kbps in a high-speed moving environment, 384Kbps in a low-speed
moving environment, and 2Mbps in a stationary environment. 3G provides services like
Internet connection, transmission of large-scale data and moving contents photographed
by digital cameras and videos, and software downloading.
Architecture point of view, logically is divided into CS Domain and PS Domain. CS
Domain refers to the set of all CN entities offering CS type of connection for user traffic
as well as all the entities supporting related signaling. PS Domain refers to the set of all
CN entities offering PS type of connection for user traffic as well as all the entities
supporting related signaling. The network elements MSC and GMSC belongs to CS
domain whereas the elements SGSN and GGSN belongs to PS domain.
The concept of 3G wireless technology represents a shift from voice-centric services to
multimedia-oriented (voice, data, video, fax) services. Heavy demand for remote access
to personalized data is fueling development of applications, such as the Wireless
Application Protocol (WAP) and multimedia management, to complement the 3G
protocols.
2.2COMPANY PROFILE
Micromax Electronics India Software Operations (SISO):
Micromax Electronics India Software Operations (SISO) was set up in February 1996 in
Bangalore as a liaison office. Since its inception SISO has grown to over 500 Software
Engineers working on R & D projects in the latest technology areas.
SISO as an organization is involved in the business of developing software for Micromax
Electronics Corporation technology solutions in a variety of different areas. SISO is
part of the Micromax Electronics R & D organization.
As a CMM Level 5 Assessed and an ISO 9001 Certified company, quality underlines
every aspect of our organization. This commitment to quality combined with innovative
technology designed for Indian conditions and an infrastructure second to none, has
contributed to Micromax's success in the global market since 1996.
OUR CONTRIBUTION
In the short period of a little over half a decade that the organization has been operational,
SISO has contributed in a big way towards a number of key projects. Cutting edge
technologies like 3G Wireless, Broadband, Intelligent Appliances for Home Networking,
Multimedia, Networking etc... have been some of the focus areas for the company.
During this period of about 7 years, the organization has grown in strength in terms of
numbers as well as in terms of the expertise that it possesses in certain key technology
domains. Today, SISO's engineers are involved in many of Micromax's highly strategic
and important projects. The company boasts of a highly talented and motivated work
force who have been constantly enriching their knowledge and skills.
SISO's well defined goal of 'Being a partner today and a Leader tomorrow' is being
aggressively pursued by the management. Therefore, in certain areas like 3G Wireless,
SISO as an organization is being identified as a key development center within all of
Micromax's global labs. The company is striving hard at getting such recognition in other
areas as well - like 'Home Networking/Intelligent Appliances', 'Networking' and
'Embedded Software'.
Electronics industry
AFFILIATED COMPANIES
MICROMAX SDI
MICROMAX Electro-Mechanics
MICROMAX Corning
MICROMAX Corning Precision Glass
MICROMAX SDS
MICROMAX Networks
MICROMAX electronics subsidiaries include MICROMAX Electronics, MICROMAX
Electro-Mechanics, MICROMAX SDI, MICROMAX Corning, MICROMAX SDS,
MICROMAX Networks and MICROMAX Corning Precision Glass. These affiliates
produce, market, and sell a wide variety of electronic parts and components such as next
generation memory chips, computer and telecommunications equipment, color TV
picture tubes, and glass bulbs. They also develop computer systems and produce general
electronics and precision machines.
All these companies share the same goal of becoming world-class, high-tech companies
at the beginning of the 21st century and are concentrating their investments into
promising future fields to achieve that target. Despite being independent, systematic
cooperation takes place between the companies that enables the development of state-of-
the-art electronic products.
MICROMAX Electronics Announces 2005 Second-Quarter Earnings
Micromax reports quarterly sales of KRW13.59 trillion,
Operating income of KRW1.65 trillion and net income of KRW1.7 trillion.
SEOUL, Korea? July 15, 2005: Micromax Electronics Co., Ltd. announced its financial
results for the second quarter of 2005. The company recorded sales of KRW13.59 trillion,
operating income of KRW1.65 trillion, and net income of KRW1.7 trillion, representing a
2% drop, 23% decrease and 13% rise, respectively, from the previous quarter.
Despite a drop in prices of some of its main products, such as memory chips, the
company was able to maintain sales of more than KRW13.5 trillion due to the growth of
the LCD and Digital Appliance Businesses. While operating profits decreased, net
income rose because of gains from Micromax Card's turnaround, which was
incorporated through valuation using equity method of accounting.
Sales and operating income of the Semiconductor Business decreased slightly to KRW4.2
trillion and KRW1.1 trillion, respectively, because of a seasonal decline in DRAM and
NAND flash memory prices. However the business continued to maintain high margins
of over 26%, and the company expects improved performance in the second half with
stronger demand for PCs. In addition, a boost in demand for high capacity NAND flash
memory is expected with the introduction of new MP3 players and digital cameras with
higher pixel counts.
The Telecommunication Network Business posted sales of KRW4.5 trillion and
operating income of KRW530 billion, representing a decrease of 8% and 37%,
respectively. The drop is attributed to increased marketing spend to counter growing
competitiveness. Micromax sold 49 million phones in the first half despite a stagnant
domestic market and slow-down in the growth of the overall mobile phone market. The
company expects stronger performance in unit sales and ASPs in the third quarter with
the launch of new premium products.
The LCD Business reported revenue and operating income figures of KRW2.1 trillion
and KRW12.7 billion, respectively. The company expects its performance to improve in
the third quarter as demand for LCDs increases. Plans for the full ramp-up of S-
LCD' s 7 th -generation line are on schedule, which will contribute to the increased
sales of 32-inch and larger LCD TV panels.
Digital Media Business sales decreased to KRW1.6 trillion and posted a KRW50.0
billion operating loss because of the seasonal downturn. Sales of its Digital Appliance
Business grew 27% to KRW1 trillion and operating income at KRW30.0 billion returned
to the black from increased sales of air-conditioners.
Dr. Woosik Chu, Senior Vice President and General Manager of the IR Team, states, “
Despite the challenging business environment and depressed market conditions , sales
remain at similar levels from the prior quarter and operating profit figures met the
market's expectation, demonstrating th e inherent strength and competitiveness of
Micromax's business model .” He add s , “ With demand for IT products expected
to return and steady growth in our DRAM, NAND Flash, LCD and mobile phone
businesses, Micromax Electronics anticipates improvements in both sales and operating
profits in the second half of 2005 .”
Revenue by Business
Buisness 2Q04 1Q05 2Q05
Growth
YoY (%) QoQ (%)
Semiconductor 4.58 4.48 4.17 (9) (7)
Memory 3.57 3.54 3.22 (10) (9)
System LSI 0.62 0.45 0.45 (28) 1
LCD 2.47 1.90 2.12 (14) 12
Telecommuniction Network 4.94 4.84 4.46 (10) (8)
Mobile Phone 4.61 4.56 4.19 (9) (8)
Digital Media 1.99 1.66 1.61 (19) (3)
Digital Appliance 0.89 0.79 1.00 13 27
Total Revenue 14.98 13.81 13.59 (9) (2)
Table 1.1
Retaining customers
Micromax considers 'After Sales Service' as a key differentiator for Micromax products.
In order to deliver prompt and easily accessible service, Micromax India has set up a
widespread network of company owned as well as Authorized Service Centers to service
its customers. The Micromax Service Plazas, as the Company owned Service Centres are
called, are a first in the industry.
The Micromax Service Plazas serve as a one-stop shop for Micromax’s walk in
customers. Customers also get a chance to see the Micromax range of products and
interact with Micromax product specialists to know more about the company’s products
and services. Micromax is also increasing, the number ‘Micromax Prestige Service
Plazas’ in smaller cities like Ludhiana & Coimbatore to reach out to its customers.
To satisfy the needs of its Home Appliance customers, Micromax has set up state-of-the-
art Home Appliance Service Centres in 19 cities that are equipped with latest testing and
measuring equipments for servicing only Home Appliance products.
Speed, Smile, Sure’ is the motto for Micromax Service, as the Company seeks to satisfy
more and more of its customers with prompt and accurate service. The company adheres
to a turnaround time of 24 hours within the city where the Micromax Service Centre is
located. A Service Helpline number 30308282 gives access to Micromax Service
throughout the country. Micromax India organizes a Free Service Camp on an All India
basis, every year, for proactively reaching out to customers and servicing their Micromax
products.
10 second to loose a customer, 10 years to gain them back’ forms the guiding principle
for Micromax Service Team as it strives to satisfy the growing expectations of Indian
customers.
MICROMAX group timeline and history
Pioneering the digital age (2000 ~ Present)
With the start of the second millennium, MICROMAX begins its second century.
Humanity must now successfully manage the opportunities and challenges resulting from
the new and quickly changing digital paradigm with equally revolutionary changes in the
rules it uses to do business. Currently, MICROMAX Group is undergoing changes in its
business structure, management perspective and systems, and corporate culture to meet a
global standard.
We regard the digital age as having both incalculable potential and risks. It's a time of
intense competition-fortunes can be made or lost in the blink of an eye. However, at
MICROMAX, we see challenges as opportunities. Which is one reason we believe that
we are perfectly positioned to be one of the world's recognized leaders in digital
technology.
Our commitment to being "World's Best" has succeeded in securing the number one
global market share for thirteen of our products. Our target is nothing less than to have
thirty number one "world products" by 2005, adding digital TVs, IMT 2000, and printers
to our current world market leaders-semiconductors, TFT-LCDs, monitors and CDMA
mobile phones. At the same time, we are making historic advances in research and
development of our overall semiconductor line, including flash memory and non-
memory, custom semiconductors, and DRAM and SRAM. For example, MICROMAX
Electronics, which has been among the world's top 10 in US patents for four consecutive
years, has 13,000 researchers representing a US$ 1.7 billion investment in Research and
Development.
In the financial market, MICROMAX is also committed to being the World's Best.
MICROMAX Card has been selected as the "Best Card Company in the New
Millennium" by Master Card, the result of securing more than 1 million members within
one year through the release of "Aha Loan Pass," the first loan-only card in Korea.
Euromoney has also selected MICROMAX Securities as the "Best Security Company"
for the 3rd consecutive year. And MICROMAX Life Insurance has ranked as 10th largest
company by Fortune's "Global 500" in the Life/Health insurance category
We are also actively promoting our brand value, a key engine of business growth.
MICROMAX's brand value increased to US$8.31 billion in 2002 from US$6.37 billion in
2001 and was recognized by Interbrand Corporation as the fastest growing global brand.
How did we make such astounding progress in such a short time?
One answer is that we are perpetually engaged in achieving global competitiveness
through continually improving our financial structure and profitability and looking at the
structure of our organization. Reducing production costs and working hard to maintain
our brand image have also contributed mightily to our surge. Accordingly, MICROMAX
Electronics has secured a nation's credit rating from S&P and Moody's while
MICROMAX Fire also has been recognized by S&P for its stability and growth potential
and has received its second consecutive A rating.
Another clue to the quick pace of our development goes to the heart of our management
philosophy "We will devote our human resources and technology to create superior
products and services, thereby contributing to a better global society." Our active
participation in various sports events around has helped promote community spirit as well
as returning corporate profits to society. As a Worldwide Olympic partner in the wireless
equipment sector for the 2000 Sydney Olympics, MICROMAX provided 25,000
advanced digital wireless telecommunication devices including mobile phones. We also
have served in that capacity at the 1999 Nagano Winter Olympics, and will be a
Worldwide Olympic Partner in the 2006 Torino Olympics and 2008 Beijing Olympics.
We actively participate as a contributor in the Asian Games, MICROMAX Nations Cup
Riding Competition, MICROMAX Running Festival, MICROMAX World
Championship (a U.S. LPGA Tour), and many other sporting events around the world.
In 2000, MICROMAX started its management program with a new twist and aimed to
stay ahead of the great waves of digital changes now engulfing the world. We expect
nothing less than to lead the digitalization of society with our advanced technologies,
competitive products, and professional human resources.
2.3PRODUCT PROFILE
Overview
Towards realizing the vision of Micromax Electronics to become one of the leading
handset manufacturers in the world, Micromax India Software Operations (SISO) is an
important cog in the wheel.
Telecom Team at SISO is involved in designing and building software for the mobile
terminals encompassing the current and future technologies, and the applications therein,
for Micromaxs latest mobile handset equipments.
Expertise in the Handset Technology
Engineers at SISO are involved in building mobile handset software for a variety of
standards, established and emerging, such as GSM/GPRS dual mode handsets, CDMA
2000 1x (and variations thereof such as EV-DO, EV-DV etc.),WCDMA protocol stacks,
dual mode handset software (CDMA2000 1x and WCDMA) and all important
interoperability issues.
The much touted applications such as multimedia environments and functionalities in the
third generation wireless standards (3G) are a key focus area at SISO. Customization of
CDMA phones to cater for an Indian scenario is one of the high priority things at SISO.
Work is going on towards developing user interfaces for software applications in local
languages. To deliver world class quality software, the testing team rigorously tests and
evaluates the product, before delivering it to the customer.
SISO believes that "Innovation is not only useful, it is the only way to move up the
technology value chain in the rapidly changing wireless business environment".
Engineers are encouraged and motivated to think and patent new, innovative and useful
ideas relevant to the business environment the work so far has resulted in numerous
patent filings.
Technical info GSM
Concept of GPRS
General packet radio services (GPRS) is a standardized
packet-switched data service for GSM network.
With the packet-switched technology, GPRS increases
data transmission speed from 9.6kbps to a maximum of
114kbps for uses in the mobile Internet.
It will allow GSM operators to take a share of the rapid
growth of Internet usage and position the cellular service as a mobile access to the
information society
For end-user GPRS Presents:
Always in connection with P or X.25 networks
Increased performance for up to 114 Kbps
Fast set-up/access time
End-user's Benefit
"Better price than current WAP" and "faster data
transmission speed" are the highly valued
features of GPRS
GPRS Radio Resources
Several end-users will share GPRS radio resources, resulting in much better channel
utilization than with circuit-switched data communication. The user may remain
connected as long as desired but is only charged for the volume of data received and/or
transmitted. GPRS uses radio channels to packet-switched or circuit-switched traffic.
For the purpose of data communication purposes, packet-switching is superior to circuit-
switching due to its ability to transmit bursts of data. There is no need to reserve,
establish or keep a path open for data.
This results in faster call set-up time and allows users stay online indefinitely, while only
being charged for the amount of data actually transferred.
Micromax launches the World’s Best Mobile Phone, Micromax
W900 in the Indian market
Global digital technology leader, Micromax Electronics announced the launch of the
‘World’s Best Mobile Handset’, the W900 in the Indian market. The W900was selected
as the World’s Best Mobile Handset at the 3GSM Association World Congress at Cannes
in February 2005, amongst 480 initial entries. This new tri band, Mega pixel Digital
Integrator from Micromax combines a modern design, exceptional functionality and the
latest imaging technology.
Priced at Rs.22,499/-, the W900 integrates the pinnacle of Micromax’s industry leading
innovations in its soft touch slide up style, including 96MB of user memory; a 1.3 Mega
pixel camera; 2,62,000 color, 1.9 inch TFT LCD screen of the phone for remarkable color
and clarity of images; video recording and messaging; Blue tooth, email and sync
connectivity; 64 polyphonic ring tones; an enhanced voice clarity speakerphone; and an
MP3 Player music player making the W900 the most valuable companion in the industry.
The W900 besides supporting messaging in Hindi, Marathi, Tamil, Bengali and Punjabi,
is the first phone in the industry to support menu in Gujarati and Kannada language.
Announcing the launch of the W900 in the Indian market , states Mr. H C Ryu, Director,
Sales & Marketing (HHP), Micromax India, “We expect to fuel the growth of the colour
and camera phone segment in the country by launching our World Best, leading
technology, innovative products in the Indian market. We expect to achieve the No.1
position in the premium segment of the mobile handset market in the country by the Year
2007.” Micromax, which is a dominant player in the colour phone market in the country,
expects 80% of its handset sales this Year to come from the colour phone segment. “We
plan to sustain the excitement in the marketplace by launching new, leading technology ,
wow models every quarter.” states Mr. Ryu. In the first Quarter itself, the Company has
introduced 8 new handset models in the country.
Team Micromax’ members launch the World’s Best Mobile Phone- Micromax
W900 at the LIFW 2008
Irfan Pathan, Mohd Kaif and Virender Sehwag participated
New Delhi, 21st April 2005: Team Micromax cricketers - Irfan Pathan, Mohd. Kaif and
Virendra Sehwag will launch the World’s Best Handset, Micromax W900 during the
Micromax Show at the Lakme India Fashion Week. The Micromax W900 Mobile
Handset has been rated as the ‘World’s Best Mobile phone’ by the 3GSM Association
World Congress held at Cannes in February 2005. The Theme for the Micromax Show is
‘The Best Thing Says Everything’ in keeping with the positioning of Micromax W900 -
Micromax’s latest and path-breaking mobile phone.
Leading Fashion designers - Manish Arora, Nandita Basu, Nikhil& Shantanu, Rohit
Gandhi & Rahul Khanna and Rina Dhaka are coming together to create a sparkling and
magnificent Show this evening. Leading models like Fluer, Nina, Sapna, Sampada, Binal,
Sonalika Sahay, Neha Kapur, Tupur, Michelle, Poonam, Laxmi, Shivani Kapur, Deepika
Padukone, Moni Kangana Dutta and Nolana will participate in the Show, which is being
choreographed by Harmeet Bajaj.
Awards GSM
Best model product to made the minimum electronic wave
60 Million De La Consommateur magazine.
Best Brand in France.
Micromax phones chosen the best consumer satisfaction
product by French consumer alliance.
PRODUCT | X505
Form Factor Bar Style
Band GSM/EGPRS/ 900/1800/1900
Dimensions 104.8mm*56mm*12.9mm
Display
7.1cms TFT QVGA(240*320)
Full Touch Screen
Camera 2.0 MP
Music Multi Format Music Player
3.5mm Jack Yes
Opera Mini Yes, integrated
Nimbuzz Yes
Snaptu Yes
Stereo FM Radio Yes
Video Player Yes(AVI/3GP/MP4)
Video Recorder Yes
Messaging Yes, SMS /MMS/EMS
Games Yes
Bluetooth(A2DP) Yes
Email Yes
JAVA Yes
EGPRS/WAP/MMS Yes
Phonebook Memory 1000
Expandable Memory MIcroSD (upto 8GB)
Battery Type Li-ion 900mAh
Talk Time Up to 3 hours*
Standby Time Up to 5 days *
Weight 110g
Dimensions 113mm*56mm*12.7 mm
Display 262K TFT QVGA Screen (320*240 Pixels, 8.1cms)Full Touch keypad
Motion Sensor Yes, Gravity Sensor enabled
Camera
Yes, 2.0 MP
Music
Yes
Facebook Yes, integrated
Opera Mini Yes, integrated
Multi-Messenger Nimbuzz Yes
Stereo FM Radio Yes
Video Player Yes
Messaging Yes, SMS /MMS
Email Yes
Bluetooth(A2DP) Yes
EDGE/GPRS/WAP/MMS
Yes
Phonebook Memory 1000
SMS Memory 1000
Expandable Memory MicroSD (upto 4GB)
Battery Type Li-ion (1000mAh)
Talk Time Up to 5 hours*
Standby Time Up to 8 days*
PRODUCT Q3
Factor Bar Style
Band Dual GSM-Dual-Band (900/1800 MHz)
Weight 97g
Dimensions 111.2*61.2*13mm
Display
262K Color TFT (176*220 Pixels, 5.58cm)5-way navigation key with Full QWERTY keypad
Camera Yes, 1.3 MP
Music Multi Format Music Player (MP3 / AMR / MIDI / WAV)Background Music PlaybackFlight Mode
Stereo FM Radio/Recorder Yes
Speakerphone Yes
Messaging Yes, SMS / MMS
Games Yes
Bluetooth(A2DP) Yes
Conference Call Yes
Speed Dial Yes
STK Yes
GPRS/WAP/MMS Yes
Phonebook Memory 1000
SMS Memory 1000
Internal Memory 10MB
Expandable Memory MicroSD (upto 2GB)
Battery Type Li-ion 1000mAh
Talk Time Up to 4 hours*
Standby Time Up to 160 hours*
3.RESEARCH METHODOLOGY
Research is the systematic and objective search for the analysis of the information
relevant to the identification and solution of any problem in the field of channel
development. The objective behind this project was to get a deep insight into the answers
To the questions “what are the general problem faced by the subscribers and what they
expect from mobile handsets providers and study of current mobile market”.The object of
the survey were the mobile users of various mobile companies.
Methodology Used
The data was collected through both the primary as well as secondary sources. The
primary source of the data is the users of various mobile handset users. The sources of
secondary data are the websites and company catalogues.
3.1 RESEARCH OBJECTIVES
MAIN OBJECTIVE
o Analysis of current market scenario of mobile market with special reference to
MICROMAX IND.MOBILES.
SUB OBJECTIVES
o To study the satisfaction level of cellular users in Sahibabad.
o To study the buying behaviour of the customers.
o To understand the price sensitivity of the markit in respect to the telecom
services.
o To identify customers opinion about Micromax Handsets.
o To identify the key buying factors which are used in hiring the telecom
services.
o To understand the various sales promotional schemes being offered by various
mobile handsets providers.
3.2 THE RESEARCH DESIGN
Steps followed for this research was:
1. Problem Formulation: This refers to transferring of the management problem
into a research problem. The management was “to gauge the behavior of
consumer in respect of mobile market.”
2. Research Method: It involves choosing either experimental or non-experimental
research. This research was non-experimental.
3. Research Design: It is the specification of the methods and procedures for
acquiring he information needed. It is overall operational pattern or framework of
the project that stimulates what information is to be collected, from which source
and by what procedure. The three types of design used are exploratory,
descriptive and causal for this research the descriptive design was used. This is
because it is marked by the prior formulation of specific research questions. It has
a preplanned and structure design. For descriptive study proposed data analysis
and project output are critical aspects. It was decided that the users of various
mobile companies would be used as the primary source of data.
4. Selection of data collection techniques: For this research the data was to be
collected was of primary as well as secondary nature. The source of primary data
was the user of various mobile companies. Thus the data collection was done
through a survey by using questionnaire technique. This consisted of an interview
and questionnaire. The questionnaire contained the questions relating hiring and
uses of different mobile handsets. The questionnaire was first pre tested and later
making certain necessary changes in modified it.
5. Sample Design: A sample chosen has to be representative of the population. For
this survey cluster and stratified sampling was used. The sample size was more
than 500 users and 50 retailers.
6. Data collection: At this stage the data is actually colleted according to the
decided technique of data collection. The questionnaire is main source for the
collection of data.
7. Analysis and interpretation: Data which has been obtained are seldom useful
to anyone, if it is not analyzed and interpreted in order, the breaking down of
constituent parts and the manipulating of the data and to obtain answer to the
research questions. Interpretations involve taking the result of analysis, making
inferences relevant to the research relationship studied and drawing conclusions
about these relationships.
8. Research report: The culmination of the research process is research report.
Methodology, report and recommendations for course of action are presented. The
two critical attribute of report are completeness and conciseness. Therefore these
attributes are conflicting; a balance has to be stuck between the two. On
presenting the research report to the management. The management should be
able to take decision on recommendations and conclusions of research.
3.3 METHODS OF DATA COLLECTION
The task of the data collection begins after research problem has been defined and
research design/plan chalked out. While deciding about the method of the data collection
to be used for study, the researcher should keep in mind two types of data primary and
secondary.
1. Sources of Data:
a) Primary Data: We collect primary data during the course of experiments in an
experimental research but in case do research of the descriptive type and perform
surveys, then we can obtain primary data either through observation or through
direct communication with the respondents in one form or another or through
personal interview. Since the research is of descriptive type in witch data is
collected through direct communication with respondents. Sample survey is
carried out during this project. The survey was performed through a structured
questionnaire.
b) Secondary Data: secondary data means data that are already available i.e. they
refer to the data which have already been collected by someone else. The sources
of secondary data in this project were the websites of various mobile providers,
catalogues of various mobiles, newspapers, magazines etc.
2. Method adopted in research:
The survey method was used for this research project. A general survey was
conducted together the required data.
3. Research tool used:
Questionnaire was used to collect the data from the users of various mobile handsets.
a) Method of population Selection:
The population for this survey was selected with the help of cluster and stratified
random techniques. In cluster, we divided the sahibabad colony wise then we
applied stratified.
b) Method of Interaction with the population:
Personal visit method is used for this research project. The respondents were the
users of various mobiles. These respondents were approached and requested to
give their opinion on the mobile handsets providers by answering in the
questionnaire. We meet all retailers and whole sellers of Micromax India mobiles
And try to find out their problems. We also observe that the advertising materials
are well placed or not. Advertising material means posters, banners and
hoardings.
In interaction with population we were applying these marketing strategies:
Advertising
In this section we advertise our products (mainly new launchings) and say to
customer our services qualities and brand features.
We conduct road shows and distribute leaflets and banners.
Sales
We sale our product in two ways:
a) Direct Sale: In direct sale we search the customers and motivate them for using
Micromax mobiles.
b) Whole Sale: In whole sale we go in market, try to make poses. We motivate these
sellers for bulk sale. Some gifts are allows to these sellers if they achieve the
target.
3.4DATA ANALYSIS
Analysis of data is a process of inspecting, cleaning, transforming, and
modeling data with the goal of highlighting useful information, suggesting conclusions,
and supporting decision making. Data analysis has multiple facets and approaches,
encompassing diverse techniques under a variety of names, in different business, science,
and social science domains.
4. FINDINGS AND ANALYSIS
Mostly people are attracted towards Micromax mobiles due to good reputation
and low initial investment in color and flip handsets.
More than 50% users have switched over to Nokia and others due to
unavailability of Connectivity and memory expansion devices.
Handset Dimensions (w×h×d) and excellent Build Quality are the perfect
consideration in Micromax Mobiles when buying a cell phone.
More than 50% users could not avail India-speaks facility due to lack of
knowledge about its function thus it reveal that is a desirable attribute of
Micromax Handsets.
Near about 30% color mobile users switch over to other mobiles due to their good
performance of standby time and talk time.
Ergonomics is very helpful to understand the interface in these mobiles and it also
makes customers.
More than 70% users are attracted to the support for cellular and multimedia
standards.
One feature that most of the users probably prefer more than anything else is light
weight of these handsets.
FINDINGS | AGE GROUP OF RESPONDENTS
Age Group Respondents Respondents (%)
15-25 38
Occupation of Respondents Respondents (%)
Businessmen
Students
Doctors
Engineers
Govt. servant
Housewives
Executives
Traders
Others
30
20
18
8
8
2
7
5
2
Figure1.2
FINDINGS | INCOME GROUP
Income Group (yearly) Respondents (%)
Less than 50000
50000-150000
150000-300000
300000 & above
48
25
16
11
Figure1.3
FINDINGS | MOTIVE BEHIND USING MOBILE
Motive Respondents (%)
Communication 55
Duration of using mobile Respondents (%)
Less then one year
1-2 year
2-3 Year
3 & above
42
22
21
15
Figure1.5
FINDINGS | MOBILE OWNERS
Mobile Owners Respondents (%)
B/W
Color Bar
30
20
Color Folder
Bar Camera
Folder Camera
High-end Camera Phone
14
16
9
11
Figure1.6
FINDINGS | USERS OF CAMERA
User of Camera Respondents (%)
Yes
No
47
53
Frequency Respondents (%)
Once in a Day
Once in two Day
Once in a Week
Occasionally
50
23
10
17
Figure1.7 & Figure1.8
FINDINGS | USERS OF VIDEO
User of Video
Respondents (%)
Yes 28
No 72
Frequency Respondents (%)
Once in a Day
Once in two Day
Once in a Week
Occasionally
15
10
19
56
Figure1.9 & Figure1.10
FINDINGS | USERS OF FM
User of FM Respondents (%)
Yes
No
18
82
Frequency Respondents (%)
Once in a Day
Once in two Day
Once in a Week
Occasionally
76
15
5
4
Figure1.11 & Figure1.12
FINDINGS | USERS OF GPRS
User of GPRS Respondents (%)
Yes
No
36
64
Frequency Respondents (%)
Once in a Day
Once in two Day
Once in a Week
Occasionally
6
19
18
57
Figure1.13 & Figure1.14
FINDINGS | AWRENESS ABOUT NEW LAUNCHINGS
Awareness Respondents (%)
Yes
No
42
58
Source of information Respondents (%)
Media
Retailer
Friends
others
46
30
18
6
Figure1.15 & Figure1.16
FINDINGS | USERS OF MICROMAX
User of Micromax Respondents (%)
First time 46
Switch over 54
Figure1.17
FINDINGS | REASON FOR GOING THE SERVICE OF MICROMAX
Reasons Respondents (%)
Good reputation 14
Low investment
Brand quality
Features
24
18
44
Figure1.18
Good Reputation
Low initial Investment
Brand quality Features
FINDINGS | AWARENESS ABOUT SERVICES PROVIDED BY MICROMAX
Awareness Respondents (%)
Yes
No
Partially
65
25
10
Figure1.19
FINDINGS | SWITCH OVER FROM
Switch over from Respondents (%)
Nokia
Sony Ericson
L.G
Motorola
Others
7
32
20
30
11
Figure1.20
FINDINGS | MARKET SHARE
Market Share Respondents (%)
Nokia
Micromax
L.G
Sony Ericson
Motorola
48
29
12
5
6
Figure1.21
FINDINGS | SATISFACTION LEVEL (L.G)
Satisfaction level Respondents (%)
Very satisfied
Satisfied
Neither/Nor
Dissatisfied
Highly Dissatisfied
22
48
15
8
7
Figure1.22
FINDINGS | SATISFACTION LEVEL (SONY ERICSON)
Satisfaction level Respondents (%)
Very satisfied
Satisfied
Neither/Nor
Dissatisfied
Highly Dissatisfied
7
35
45
10
3
Figure1.23
FINDINGS | SATISFACTION LEVEL (MOTOROLA)
Satisfaction level Respondents (%)
Very satisfied
Satisfied
Neither/Nor
Dissatisfied
Highly Dissatisfied
30
18
32
12
8
Figure1.24
5. LIMITATION OF RESEARCH
This research was subjected to following limitation:
1. The survey can not be termed 100% accurate due to lack of time and time and
cost only 500 users and 50 retailers and whole sellers had been studied. Thus the
scope of study is limited in terms of no. of respondent.
2. The lack of candidness of respondent towards answering the questionnaire in few
cases may have reduced the accuracy of survey to some extent.
3. Despite the unbiased opinion and efforts the possibility of technical exceptions
cannot be ruled out.
4. The statistical analysis with various automated tools might have computational
errors.
6. CONCLUSIONS AND RECOMMENDATIONS
Mobile has become an important part of people’s life and it is no more a luxury.
Mumbai is highly competitive and price sensitive market as majority of respondents
want maximum services provided by company in low priced handsets.
The majority of respondents who use mobile are quite young.
There is a good scope for new entrants in this circle as the service provided by the
existing players are not up to the mark and subscribers want to try out new ones
provided they stand up to the customers expectations.
Numbers of color mobile users far out number B/W mobile users. And among the
color mobile users majority of them are camera mobile users.
As the circle comprises of mainly high standard areas with few big shopping malls,
subscribers want that the network coverage should extend up to shopping malls n
addition to the small markets and roads.
MMS and Bluetooth functions are fast becoming popular with the mobile users. In
fact these are becoming a criterion for choosing a mobile handset.
Majority of respondents perceives Micromax as the best color mobile provider. It
commands high respect and favorable image amongst the mobile users.
Some recommendations and additional enhancements are following:
Mumbai is a highly competitive and price sensitive market, which is having better
shopping malls and markets, hence a suitable marketing strategy, needs to be
formulated taking into consideration the advertising and price factor.
As the numbers of mobile users are relatively young, marketing strategy should be
more focused on this age group.
One of the drawbacks of Micromax brand in this market could be its common flavor
not metro flavor. Hence to succeed in this market it need to reposition itself as the
premium brand.
Since customer education about new launchings and facilities provided in handsets is
the major problem faced by most of the mobile users, Micromax needs to take extra
efforts for promptness in customer education to win and retain users.
Micromax needs to prune up its advertising campaign to increase its visibility further
as one of its competitors’ visibility is high.
Bluetooth and other connectivity services are fast emerging as an important area of
mobile service. Therefore, Micromax should come up with these relevant services
from time to time differentiate its product and to generate additional revenue.
Micromax should give high priority to customer service and satisfaction as your
satisfied customers do the best advertisement.
BIBILIOGRAPHY
Reference Book-
1) Kothari C.R. Research Methodology
2) Kotlar Philip Marketing Management
3) Kotlar and Armstrong Principles of Marketing
4) Intelligent computing CHIP, Volume 1, Issue 3
website used-
1. www.in.Micromaxmobile.com
2. wap.in.Micromaxmobile.com
3. www.Micromax.org
4. www.chip-india.com
ANNEXURE
CONSUMER QUESTIONNAIRE
Center________ Serial No._____
Dear Sir/Madam,
We are the summer trainies of Micromax India Ltd. Carring out the survey of current
market scenario of mobiles.This study is part of our course curriculum and the
information provided by you will be confidential.Kindly spare some time and answer
the following questions.
1) Which mobile do you have?
a. L.G f. SIEMENS
b. MICROMAX g. PANASONIC
c. NOKIA
d. SONY ERICSON
e. MOTOROLA
2) Since how long have you been using mobile?
a. Less then one year
b. 1-2 Year
c. 2-3 Year
d. 3Year and above
3) What your motive behind using mobile?
a. Communication due to extensive mobility
b. Snob value
c. Good facility as compare to PNT phones
d. Others (specify if any)
4) Which handset do you own?
5) Are you the first time user of the mobile company? or
Have you availed services of some other mobile ?
a. First time
b. Switch over
c. Both
If switch over specify company name
[1] L.G [2] SONY ERICSON [3] NOKIA [4] MOTOROLA
6) Which attribute characteristic have you most preferred?
Attribute
a. Good reputation
b. Low investement
c. Warrenty& sup.
d. Connectivity
e. Weight
COMPANY GSM CDMA
L.G
MICROMAX
NOKIA
SONY ERICSON
MOTORALA
f. Display
g. Ergonomics
h. Camera video
i. Battery backup
j. IRDA/ Blootooth
k. Sup. Language
l. Brand equity
7) According to you what are the negatives in your handset?
Please mention if any
(----------------------------------------------------------------------------------------------------
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--------------------------------------------------------)
Kindly fill in the following personal details
Name______________________________
Address____________________________
Tel.no _____________________________
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