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1. Value proposition for feature phones
Submitted by – Group 7
Ankur Bhagat Arpit Singh Ashutosh Singh
Prateeth Nayeni Satyam Agarwal

2. • Launch of affordable smartphones in the country impacts sales of feature phones
• All major smartphone players focus on devices priced under Rs. 12,000 to attain volume sales
SomeStatsoftheIndustry
TRENDS
HIGHLIGHTS
• Feature phones registered static vol. growth (207 mil. units of feature phones
sold in the retail channel during 2013)
• Feature phones significantly outsell smartphones due to their popularity in
rural regions. Rural regions accounted for 37% of mobile phone sales during
2013
• Rural consumers, housewives and senior citizens prefer feature phones over
smartphones  ease of usability
• Smartphones with very competitive prices with feature phones, such as
Micromax Bolt A58, Nokia 220, Samsung Galaxy Star, Karbonn Smart A51
etc., all priced below Rs. 4,500, compete with feature phones.
• As a result, in 2013, average unit prices of feature phones dropped by 10%
• Ownership of multiple devices is still low in the country
• In rural and semi-urban regions preference is given to the speaker output
• Electronics and appliance specialists account for 92% of mobile phone sales
in India, Internet retailing 3%
• Feature phones are expected to start registering a decline in sales for the
first time in India from 2014
• Growing awareness of social media, such as Facebook and Twitter, in rural
India and almost everyone is interested in having an account in these portals.
2008 2009 2010 2011 2012 2013
Feature Phones 115,602.0 128,780.7 143,976.8 172,052.3 206,462.7 207,082.1
Smartphones 3,212.30 4,535.80 6,350.10 11,201.60 16,197.60 44,008.80
0.00
50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
Volume'000units
Year
Sales of Mobile Phones by Category: Volume 08-13
Feature Phones Smartphones
2008 2009 2010 2011 2012 2013
Smartphones 60.3 70.7 88.4 153.7 195.8 451.8
Feature Phones 648.8 681.2 698.9 815 929.1 838.9
0
200
400
600
800
1000
1200
1400
ValueINRbn
Year
Sales of Mobile Phones by Category: Value 08-13
Feature Phones Smartphones
COMPETITION
• Samsung, with a retail volume share of 21% followed
by Nokia (19%), Micromax Informatics (11%) and
Karbonn Mobile (9%)
Market Analysis Research Insight & Findings Segmentation & VP G-T-M Marketing
Feature phone 
Smartphone

3. Primary&Secondaryresearch
• Interviews with retailers near 3A bus stop
• Aimed to understand the buying behavior
of the consumer
• Store visits
• Online reviews of phones from flipkart.com
• Enabled us to understand consumer
experience with the phone
Secondary ResearchPrimary Research
Research
Findings
Top FPs
• Nokia 220 (Black) - Rs. 2,850
• Nokia 108 (Black) - Rs. 1,834
• Micromax X097 (Black) – Rs.
999
• Gionee long L800 (Black) –
Rs. 2,170
• Samsung Guru E1207T
(Black) – Rs. 1,429
Top features to look at
• Dual Sim
• MP3 Player
• FM Radio
• Bluetooth
• Expandable memory
• Torchlight
• Small and Lightweight
• Long lasting battery
Brand perception
• Nokia and Samsung
enjoy high brand
loyalty
• Micromax still seen
as a Chinese brand
Market Analysis Research Insight & Findings Segmentation & VP G-T-M Marketing
Feature phone 
Smartphone

4. Insights&populardesiredfeatures
Insights
• Demand for longer battery life and loud sound is common across all consumers.
• Some customers demand for songs to be uploaded and games to be installed in phones.
• Content is not available in rural markets at affordable costs.
• Companies provide their employees with a simple communications device, and
purchase in bulk and for various levels of security require a phone for just basic talking.
General desired hardware
features
• Longer battery life
• Larger keypads with
larger space between
the keys
• Offer pre-loaded
content which is
customized according to
region
• Torch light; better and
bigger display
• Free Games
• Recharging through
more autonomous
means
Market Analysis Research Insight & Findings Segmentation & VP G-T-M Marketing
Feature phone 
Smartphone
• Three different types of people: Senior Citizens, Workers and young to middle aged
buyers.
• Senior citizens typically accompanied by someone for advice on phones.
• Workers looking for as many features as possible for lower cost.
• Young to middle aged person purchase feature phones for themselves or for
someone else. If they are purchasing for themselves, they usually own one smart
phone (require FP as a secondary phone).
• Elderly people generally find it difficult to operate conventional phones due to
smaller keypads and low voice.

5. CustomerSegmentation&VPMarket Analysis Research Insight & Findings Segmentation & VP G-T-M Marketing
Feature phone 
Smartphone
Segmentati
on &
Features
• Urban/Rural
• Senior Citizens
(>50 years)
• Technically
novice
• Value for money
• Loud Sound
• Big Buttons
• Space between
buttons.
• Big Screen with
big fonts
• Battery Life
• SOS
• Urban/Rural
• Blue Collared
Citizens
• 30-50 years
• Technically novice
• Value for money
• Features
• Loud Sound
• Camera
• Radio
• Music Player
• Memory card
• Games
• Low price
• Urban
• High middle class
to middle class
• 18-30 Years old
• Tech Savvy
• Loud Sound
• Camera
• Radio
• Music Player
• Memory card
• Games
• WhatsApp
• Facebook
• Brand
• Urban
• High middle class
to middle class
• 30-50 Years old
• Tech Savvy
• Loud Sound
• Camera
• Radio
• Music Player
• Memory card
• Battery Life
• Brand
Segments Features Segments Features
Segments Features Segments Features
1 2
3 4

6. PossibleCompromise/SpecificationsMarket Analysis Research Insight & Findings Segmentation & VP G-T-M Marketing
Feature phone 
Smartphone
Relatively higher prices- 4K to 5K Rs.
Restriction to use of internet
i.e. Allow use of WhatsApp and Facebook
only
Product appearance, strength (Metallic
Body)
Sound, Camera, memory card, Radio,
Music, Simple Games like Sudoku, Bounce,
Jewels etc.
Provide features like camera, music player,
Radio, Bigger screen, memory card, games
Pre-loaded songs
Lower Price
Long Battery Life
Plastic/Lighter body
No internet facility
Dual Sim Facility
Low Prices,
Very Simple Basic Model
Longer Battery Life
Bigger Buttons and design enabling easy
number typing.
Allowing “Please Call Back” text sent to a
predefined phone number with the click of
one button.
Sturdy body
Relatively Higher price
Restricted internet facility. Only 2G and Wi-
Fi allowed.
Facebook, WhatsApp, Twitter etc. social
media application not allowed.
Pre-installed applications i.e. browser,
office,
Focus on product design
1 2
3 4

7. GTMapproach
Sales and Process
Dummy phones should be as close to real model as possible.
Increase credit cycle for distributors, exclusive territories bigger geographical areas. We expect that increasing credit cycle for distributors especially
in rural market gives them an opportunity to grow there reach and therefore provides Micromax an opportunity to increase penetration.
Marketing: ATL and BTL
Focus advertisement of feature phone broadcasted on regional and national channel like Doordarshan and local newspapers.
With increasing internet penetration, increase use of social media for marketing through gamification, engaging campaigns.
Keeping Micromax products separately in one shelf space increase brand visibility and differentiation.
Target Market and Product Portfolio
For rural market include features like pre-loaded songs in all SKUs and including .exe files of mobile games which could be easily installed.
Market Analysis Research Insight & Findings Segmentation & VP G-T-M Marketing
Feature phone 
Smartphone
Institutional consumers: Through B2b Company
representatives. Push strategy.
Senior Citizens: Through in-store
promoters. Push Strategy.
Tech Savvy, young corporates: Pull strategy through
social media campaign

8. • Increase the placement of Micromax
products in modern trade channels to
give them better visibility to middle
and upper classes
• Tie-up with corporates to supply
them phones to reach the target
audience of professionals
• Move from product specific
advertisements to those promoting
the Micromax brand
• Establishing Micromax as the brand
providing the best value for money
without compromising on quality
MarketingofFP
• Since the feature phone market is
highly fragmented, focus on
increasing brand penetration in rural
areas
• Major reason for lesser market share
of Micromax is its less favorable brand
image
• Change Brand image: Technologically
advance brand which care for every
customer.
• Promote feature phones for various
segments.
Market Analysis Research Insight & Findings Segmentation & VP G-T-M Marketing
Feature phone 
Smartphone
Increasing brand visibility in
stores.
Social Games at Point of Sales
Sharing on Social media and
launching social media campaigns
• Using regional newspapers and TV
channels for promotion.
• Increasing in store branding with
posters and stickers.
• Keep all Micromax products in one
single self space. This will increase
brand visibility and help to provide
strong independent identity to
Micromax brand.
• Launch games such as “Take fist
picture” or “Record First sound” on
your Micromax phone. Such data
could be collected by retailer while
making the purchase. The winning
picture is being shared in regional
paper or winning voice is being
shared on local radio.
• Such games should be launched in
Tier III cities and rural areas with
limited net facilities.
• Promotion of social games in
Tier-I and Tier-II cities through
national daily and popular
television channel.
• Launch social media games and
social media campaigns
revolving around the same
theme.
MarketingObjectives
35%
32%
18%
15%
Feature phone market share
Nokia Samsung Micromax Karbonn

9. • Decrease in the price gap between feature
phones and smartphones, the launch of new
products with innovative technology, better
camera phones and the growth of modern
retail, are expected to be prime drivers of
smartphones’ sales.
• Central government in India has announced
plans to build broadband highways and
connect all rural regions with broadband
internet. This could propel the sales of
smartphone devices in rural regions.
• There is also growing awareness of social
media, such as Facebook and Twitter, in rural
India and almost everyone is interested in
having an account in these portals.
• By 2018, smartphone sales are expected to
surpass feature phone sales in India
ShiftingtoSmartphone
Parameters Evaluation
Price Very high
Design(Usability) High
Social media presence Medium
Camera High
Messaging & calling apps High
Internet High
Anti-theft Medium
Fashion outlook and style Medium
FM Radio/Dual
Sim/Games/GPS/Wi-Fi/Email
High
Market Analysis Research Insight & Findings Segmentation & VP G-T-M Marketing
Feature phone 
Smartphone