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    Presentation On Karbonn

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    Vinamra Saxena
    ‡ Karbonn Mobiles started in 2009 and has grown rapidly to become a major player in the Indian mobile handset market, particularly in semi-urban and rural areas, selling over 5 million mobiles. ‡ It was formed through a partnership between Dishnet Wireless, a telecom group, and Jaina Group, a distribution company. Karbonn targets customers in rural markets with dual-SIM phones and focuses on offering the latest features at affordable price points between Rs. 1,700 to Rs. 6,500. ‡ While Karbonn has been successful through competitive pricing, exclusive retail stores, and sponsorship of cricket events, it faces challenges of improving design and software quality,

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    Presentation On Karbonn

    Uploaded by

    Vinamra Saxena
    981 views18 pages
    ‡ Karbonn Mobiles started in 2009 and has grown rapidly to become a major player in the Indian mobile handset market, particularly in semi-urban and rural areas, selling over 5 million mobiles. ‡ It was formed through a partnership between Dishnet Wireless, a telecom group, and Jaina Group, a distribution company. Karbonn targets customers in rural markets with dual-SIM phones and focuses on offering the latest features at affordable price points between Rs. 1,700 to Rs. 6,500. ‡ While Karbonn has been successful through competitive pricing, exclusive retail stores, and sponsorship of cricket events, it faces challenges of improving design and software quality,

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    ‡ Karbonn Mobiles started in 2009 and has grown rapidly to become a major player in the Indian mobile handset market, particularly in semi-urban and rural areas, selling over 5 million mobiles. ‡ It was formed through a partnership between Dishnet Wireless, a telecom group, and Jaina Group, a distribution company. Karbonn targets customers in rural markets with dual-SIM phones and focuses on offering the latest features at affordable price points between Rs. 1,700 to Rs. 6,500. ‡ While Karbonn has been successful through competitive pricing, exclusive retail stores, and sponsorship of cricket events, it faces challenges of improving design and software quality,

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    981 views18 pages

    Presentation On Karbonn

    Uploaded by

    Vinamra Saxena
    ‡ Karbonn Mobiles started in 2009 and has grown rapidly to become a major player in the Indian mobile handset market, particularly in semi-urban and rural areas, selling over 5 million mobiles. ‡ It was formed through a partnership between Dishnet Wireless, a telecom group, and Jaina Group, a distribution company. Karbonn targets customers in rural markets with dual-SIM phones and focuses on offering the latest features at affordable price points between Rs. 1,700 to Rs. 6,500. ‡ While Karbonn has been successful through competitive pricing, exclusive retail stores, and sponsorship of cricket events, it faces challenges of improving design and software quality,

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    Download as PPT, PDF, TXT or read online from Scribd
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    of 18

    | 

    
    
     
     
    Ô 
    Y Y Y
     Y 
    

    Y  
    î 

    ‡ Karbonn mobiles started late in the telecom revolution in


    India entering the mobile handset market in 2009 only.

    ‡ But within the first year, 


     
     
     
      has taken quantum leaps to
    make his company a major player in the semi-urban and
    rural market.

    ‡ With over 5 million mobiles sold till date, Shashin aims to


    take on whole India replete with confidence.
    èormation Of Karbonn
    ‡ Two Indian telecom majors have joined forces to trigger
    the revolution - - 
     
    
    

    ‡ The -   is a multi division telecom group with an


    annual turnover of Rs 1600 crore and over 2000
    employees.

    ‡ Headquartered in Bangalore, it is a leading Indian


    telecom powerhouse with interests that span across
    manufacturing, services and distribution.
    ‡ The 
    
     is a reputed distribution house with
    interests in telecom and consumer durables.

    ‡ Headquartered in Delhi, the company has represented, with


    distinction, prominent brands such as Nokia, Samsung,
    Siemens, Panasonic and Philips (LCD devices) as regional
    or national distribution partners.

    ‡ Currently the national distribution partners of HTC and


    Motorola (operator business), Jaina is also the preferred
    distribution partner of Microsoft.

    ‡ -  now present 


     phones that feature
    the absolute latest trends in mobile telephony, at incredible
    prices.
    Target Customers
    ‡ The multimedia phones of Karbonn address the
    urban markets which have begun to saturate.
    ‡ Handsets equipped with dual SIM cards and
    battery are clearly targeted at the rural markets.
    ‡ Though rural markets are billed as the next
    frontier for mobile telephony.
    ‡ Consumers therefore prefer phones with more
    than one SIM card for better connectivity.
    ‡ There¶s a huge market in the rural areas and
    even the replacement mobile market is on our
    radar,´ Devsare says.
    ‡ Therefore, Karbonn made special
    posters and banners, etc for the rural
    market
    ‡ Consumers want more and more
    features at as low price points as
    possible. Karbonn Mobiles knows this.
    ‡ The company offers customers the
    same features and quality that they
    get in global brands at an affordable
    price range of Rs1,700 to Rs6,500.
    ‡ This actually is the sweet spot in
    which the bulk of handset sales
    happen.
    Karbonn- Double SIM Advertisement
    Î  
    
    
    ‡ èor building brand awareness,
    Karbonn Mobiles has earmarked an
    investment of Rs 100 crore for the
    current financial year.
    ‡ The company sponsored the last India-
    Sri Lanka cricket series, which gave
    the brand much-needed visibility.
    ‡ They have invested heavily in cricket to
    create brand awareness for Karbonn.
    ‡ Cricket has been one of the key
    platforms for their branding initiatives
    since it cuts across all segments in
    India and establishes an instant
    connect with the masses.
    ‡ This association further marks their
    commitment to strengthen the Karbonn
    brand in India.
    ‡ Karbonn has forked out Rs 37 crore to the Indian Premier League
    (IPL) to become its 'Official Partner Phone', apart from subjecting
    viewers to 'Karbonn Kamaal Katch', which has raised its brand
    profile sharply.
    ‡ Official Partner Mobile Phone & Title Sponsor for the exciting new
    after party µIPL Nights¶

    ‡ Karbonn expects revenues of over Rs 600 crore, and has spent over
    Rs 100 crore on marketing. They are making profits.
    ‡   
           
      
              Hero Honda èIH
    World Cup Delhi 2010
    
     
    ‡ ³They saw that multinationals did not meet all the needs
    of the Indian consumer.
    ‡ Karbonn's bet: As mobile services penetrated deeper,
    affordability would matter more and brands less. (That
    also explains the name Karbonn: the promoters chose
    the word Carbon, because a diamond is carbon, but it
    was already registered. The closest option was
    Karbonn.)
    ‡ Therefore, they want their brand to be recognized as an
    affordable brand in the mind of their customers.
    ‡ So to be more affordable handsets are sourced from
    China without any investment in manufacturing and
    R&D.
    ‡ Karbonn's package:
    Value at an affordable
    price. "Good cameras,
    music and video players
    at the right price.

    ‡ This strategy, backed by


    the IPL deal and cricket
    stars Virender Sehwag
    and Gautam Gambhir,
    has boosted the brand.
    ‡ Brand-building and compelling products are
    necessary building blocks of the business, but
    they can come to naught if the retail strategy is
    faulty.
    ‡ Mobile handsets are sold through over a million
    multi-brand outlets in the country.
    ‡ Apart from the brand pull, the retailer¶s hard sell
    helps the customer¶s decision. And a retailer will
    push that company¶s brand which offers it the
    best profit margins.
    ‡ To make sure that the Karbonn brand does not
    lag behind others, the company is offering
    extremely competitive margins to dealers.
    ‡ Apart from that, Karbonn Mobiles intends to
    have five to ten exclusive Karbonn stores in all
    the major states of the country by the end of this
    financial year.
    ‡ About 25 models are currently being offered by
    the company, including touchscreen, dual SIM,
    and multimedia in both GSM and CDMA spaces.
    ‡ Going forward, the company plans to launch
    three to four models every month across
    different segments and price points
    Impact on Existing Players
    ‡ Market leader Nokia has lost almost 12 per cent market share since
    last year. Nokia dropped the prices of a large number of its feature
    phones and has launched a range of feature-packed phones in the
    Rs 5,000-8,000 category.
    ‡ It has also launched a number of models targeted at the fast-
    moving sub-Rs 3,000 category, where the churn is the maximum.
    Even in the smartphone category, it has bring out its low-cost qwerty
    phone C3, which is priced around Rs 5,000-6,000. Soon, Nokia will
    also launch two dual sim phones, a category Indian brands have
    excelled in.
    ‡ Another player, Sony Ericsson, has thrown in the towel by vacating
    the low-end handset market.
    ‡ The attack is forcing MNCs to change their strategies. After losing
    the game in the low-cost basic phones segment, they are now
    offering mid-level handsets²aimed at urban youth and executives²
    at very attractive prices.
    ‡ Some of them have even launched new ranges to retain customers.
    Strengths and Weaknesses of
    Karbonn Mobiles
    ’      

    Low cost²about 30 per cent Quality, design often not up


    cheaper than MNC to the mark, use primitive
    equivalents software
    High on features, some of Servicing could be an issue,
    them better than global most companies are
    models primarily importers
    Will offer latest features like Government rules on
    3G, Android at a fraction of components, materials could
    MNC costs erode price advantage
    Major Challenges faced by the
    company
    ‡ Naveen Mishra, IDC's Lead Analyst for Telecom
    believes the biggest problems lie not in brand-building or
    in distribution but in how the brands develop. "They have
    limited intellectual property, not latest operating systems,
    with little work on user interfaces. So while these brands
    win the price and features war, they will lose out at the
    top of the market, he says.

    ‡ Some of the (homegrown) phones do not meet the


    quality and technology standards that are required in the
    long run, phones with dubious quality standards and
    which use hazardous materials will not succeed.
    ‡ The government is finalising a set of benchmarks for
    materials (the plastic, metals and key components) used
    in cellphones to ensure they are non-toxic and hazard-
    free. This is a move to rein in unbridled imports and
    dumping from China.
    ‡ Adherence to these rules will add to the costs of the
    Indian companies. With wages rising across China, their
    cost advantage could erode too.
    ‡ ³These Indian brands have proved that it is possible to
    dent the market share of international brands. But the
    new entrants are also employing a very expensive
    strategy. Whether it will yield results in the long term is
    yet to be seen,´ says èuture Brands¶s Santosh Desai.
    ‡ But then, Indian companies have always found a way
    out. This is not likely to be an exception. More
    importantly, consumers are lapping up all offerings.
      

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