Consumer Durables

CONSUMER DURABLES
Girish Jindal 071092 Ashutosh Yadav 071095 Robinder S. Wasu 071255 Rajat Gupta 071419 Harsh Mohan - 071458
Road Map
What are Consumer Durables. Mobile Industry in India
Introduction to MIROMAX Strategies

SWOT Analysis Recognition & Awards Future Our Verdict
What are Consumer Durables ?

Mass market heavy goods that intended to last three or more years. Also called durable goods or hard goods.
Key Findings
The rapid rise in incomes will lead to an even faster
increase in demand for consumer durables and

expendables As a result, the ownership of goods will also go up significantly What will power this is the increased usage in different
income classes..
coupled with the rise in the size of the Great Indian Middle Class
Demand Of Consumer Durables

1995-1996
276 1850 760 3437
2001-2002
788 3006 2599 6024
2005-2006
1560 4335 4663 8727
2009-2010
3466 6774 8369 13149
Car Refrigerators Motorcycles White Goods
-- Figures in 000
Growth Of Mobile Phones In INDIA
Contd..
Revolutionary steps taken by the government. 4-5 million people buy mobile phones every month. Services in ~ 5000 cities & towns, & even ~1 lakh
villages.
Easy availability. Mobile is the primary driver of growth.
Contd
584 million mobile phone connections as of March
2010. Industry is expected to reach a size of Rs 3,44,921 crore by 2012 Growth rate of over 26 %.
Generate employment for about 10 million.
Few Statistic of Indian Communication

Telephony Subscribers (Wireless and Landline): 562.21
million (Dec 2009)

Cellphones: 525.15 million (Dec 2009) Land Lines: 37.06 million (Dec 2009)
Broad Band Subscription: 7.83 million (Dec 2009)

Monthly Cellphone Addition: 19.20 million (Dec 2009) Teledensity: 47.89% (Dec 2009) Projected teledensity: 893 million, 64.69% of population by 2012.
NOTHING LIKE ANYTHING
Vision
To develop path-breaking technologies and efficient processes. To incubate newer markets, enliven customer
aspirations and continue to make Micromax a

trusted market leader amongst people. The ideology(MMs) stems from its rooted belief in 'Innovation' and delivering "nothing short of the best".
History
It was founded in 1991 by Rajesh Agarwal as a distributor of computer hardware for brands like Dell, HP and Sony. In 1998, three more people Sumit Arora, Rahul Sharma and Vikas Jain joined Micromax as cofounders.
Contd
Introduced Micromax Mobiles in the year 2008 in India by Rajesh Agarwal, Sumit Arora, Rahul Sharma and Vikas Jain.
The Entrepreneurial IDEA

On a hot summer afternoon in 2007, executives at a small Indian
pay phone company called Micromax noticed a curious sight. In a village in the eastern part of the country, they watched people line up next to a man with a car battery strapped to the back of his bicycle and hand him a few rupees to plug their cell phones in for a half hour's worth of charge. The villagers' homes didn't have electricity.
Less than a year later Micromax sold its first cell phone, the X1i. It came with an oversized battery, a small screen, and tweaked electronics that made the phone
run for as long as five days, and on standby for as many

as 30 days.
Micromax ?
Micromax, based in Gurgaon.
Introduced 37 phones in just over a year and a half. Designing in India and manufacturing with partners in China. Micromax has 23 domestic offices across the country. International offices in Hong Kong, USA, Dubai and now in Nepal.
Currently there are more than 40,000 stores. Company plans to increase their stores to 70,000 . Micromax made its debut in 1991 but it presence has been felt majorly in few previous years. Serious developments and rise was seen in the year of 2008 when the company entered Indian Cell phone handsets market.
Company entered market in March 2008 in which it had

a market share of meager 0.59% average.
Products
Strategy
STRATEGIES
Their marketing strategy: focuses on the unique functionalities to further develop their reputation innovation.
Since their entry into the Indian mobile handset market in March 2008 they have introduced more
than 40 distinct mobile handset models and as of

August 31,2010 they have sold more than 30 distinct mobile handset models. They believe that their product development capabilities have enabled them to establish
themselves as an innovative Indian mobile handset

company.
Contd
They differentiate themselves from their competitors through : innovation design
use of advanced technologies

in-depth understanding of rapidly changing consumer preferences .
Growth
Stability
The Grand Strategies

Combination Retrenchment
Combination Strategy
Uses growth as well as stable strategy Micromax in 2010 is now Indias third-largest GSM mobile phone vendor. Market share of 6 % after Nokia (62 %) and Samsung (8 %),
according to research firm IDC with a stable growth rate of

4.1%. It sells anywhere from 700,000 to one million mobile phones
every month.
Selling nearly Rs.1,500 crore worth of phones annually.
Contd
Company 2008-09 2009-10 Growth/ Decline (in percentages) -11.8 7.4 1.4 4.1 Nokia Samsung LG Micromax 64.0 10.0 4.5 52.2 17.4 5.9 4.1
--2.0
Spice Mobiles
Karbonn Sony Ericson ZTE Huwaii Motorola Other companies
3.9
3.0 3.0 1.9 1.7 1.0 5.9
1.9
3.0 -3.0 -3.7 0.4 -2.5 2.8
--6.0 5.6 1.3 3.5 3.1
Competitive Strategy
Cost Leadership
They believe that consumers in India have unique
preferences with respect to mobile handsets if

available at affordable prices such as Long battery life Dual GSM capability Low-cost QWERTY phones Universal remote control Gaming phones
Strengths
Low costabout 30 per cent cheaper than MNC equivalents. High on features, some of them better than global models. Will offer latest features like 3G, Android at a fraction of MNC costs. Easy availability to all areas urban as well as rural. Effective Advertisement.
Cater the needs of customers in the Best & Cheapest way

possible.
Weakness
Quality, design often not up to the mark, use
primitive software
Servicing could be an issue, most companies are primarily importers
Government rules on components, materials could erode price advantage
Opportunities
Ever increasing mobile demand.
For mobile we have 400 million-plus users.

As the fastest growing telecommunications industry in the world, it is projected that India will have 1.159 billion mobile subscribers by 2013. New technologies like 4G still not available in India.
Targeting the high end customer.
Threats
Ever increasing competition with same traits (eg. LAVA Mobile, Lemon Mobile etc..) Big players catching up with cost differentiation of Micromax. Technology is changing on a daily basis, so can loose the race where to be the first is everything.
Recognition and Awards

Micromax is now Indias third-largest GSM mobile phone vendor with a market share of 6 % after Nokia & Samsung
Awarded the Most Impactful Launches in 2010 by

Pitch India. Recognized as a Major Challenge for Nokia & Samsung Mobiles.
Future
Predictions:
diffusion of mobile phones will continue till 2012-13. 71 mobile phones per 100 inhabitants in India at the end of year 2015-16. number of mobile phones will exceed the number of people in the country by 2022-23. Total mobile phone demand is projected to
increase from 90 million in 2005-06 to 433 million in

2010-11 and nearly 900 million in 2015-16.
Thus Micromax has a lot of scope in the coming future. Already it has launched some 43 models in the market
with at least 3 more by the end of 2010.

"The company has registered a phenomenal growth and may be looking to raise this kind of money to open its own production plant in India", said an analyst with a Mumbai based broking firm. Associates infused $45 million (Rs 204 crore) in Micromax valuing the company a little above Rs 1,000 crore.
Our Verdict
The company has nearly two decades of expertise and continuous research in India and strives to remain as the vanguard of technological
advancement in the country in the quickest way

possible. Micromax mobile phones remain at the top spot today in India giving other international brands surely a tough time.
We are not the poor cousins of Nokia, says Vikas

Jain founder of Micromax Mobile. This is the attitude
that has brought them this far and will take them
further.
Their strength to cater the needs of

customers(battery life, qwerty keypad, Dual Sim
etc.) in the most effective way is what has made

them succeed this far and will continue doing that.
The Bottom Line

Micromax is gaining market share in India by making cheap phones with long battery life and offering other features local consumers want.

Consumer Durables

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CONSUMER DURABLES

Introduction to MIROMAX Strategies

What are Consumer Durables ?

increase in demand for consumer durables and

Demand Of Consumer Durables

Car Refrigerators Motorcycles White Goods

Growth Of Mobile Phones In INDIA

Generate employment for about 10 million.

Few Statistic of Indian Communication

million (Dec 2009)

Broad Band Subscription: 7.83 million (Dec 2009)

NOTHING LIKE ANYTHING

aspirations and continue to make Micromax a

The Entrepreneurial IDEA

run for as long as five days, and on standby for as many

Company entered market in March 2008 in which it had

than 40 distinct mobile handset models and as of

themselves as an innovative Indian mobile handset

use of advanced technologies

The Grand Strategies

according to research firm IDC with a stable growth rate of

--6.0 5.6 1.3 3.5 3.1

preferences with respect to mobile handsets if

Cater the needs of customers in the Best & Cheapest way

Servicing could be an issue, most companies are primarily importers

Government rules on components, materials could erode price advantage

For mobile we have 400 million-plus users.

Targeting the high end customer.

Recognition and Awards

Awarded the Most Impactful Launches in 2010 by

increase from 90 million in 2005-06 to 433 million in

with at least 3 more by the end of 2010.

advancement in the country in the quickest way

We are not the poor cousins of Nokia, says Vikas

Their strength to cater the needs of

etc.) in the most effective way is what has made

The Bottom Line

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