it includes the history of micromax, market share , their success strategy to become dominant player in indian mobile industry

1. Introduction
Micromax entered into the Indian market in 2008. The headquarters of Micromax is
located in Gurgaon, Haryana. Rajesh Agarwal, Sumeet Arora, Rahul Sharma and Vikas Jain are
the co-founders, they came together and decided to diversify their IT hardware distribution
business and start making mobile phones and within a few years they were able to reach the top
through their marketing strategies. Initially they mainly focused along the rural market, 80% of
the companies' products are sales in the rural regions.. After building a strong presence in the
rural market, Micromax now progressively moves towards urban towns to establish a foothold
there as well. And within three years they have become the 3rd largest mobile selling company in
India. And within six years they have progressed to the 2nd position next to Samsung.
Immediately they began to expand their products to the international market rather than sticking
around only in Indian stores. Micromax became the first Indian mobile company to deliver their
products in the Russian market. Micromax is planning to launch an IPO (Initial Public Offer) of
2.15 crore shares to raise about Rs 2260 million. Presently, the company makes up all the smart
phones in China and import to the Indian store. The company wants to shift their manufacturing
base to India. So the major part of the money will be used in setting up a new manufacturing
plant in India and the rest in acquiring an additional market share. The company aims to double
its revenue to 1 billion dollars by the closing of the fiscal year 2013-14 from the revenue of from
the revenue of Rs 3,168 crore in fiscal year 2012-13.
Company profile
Micromax started their career as an embedded software design firm in 1998. And it was
incorporated as a company in 1998 and operated as a distributor of computer accessories of the
LG, Dell, and Sony. Today Micromax is the tenth largest mobile marketing companies in the

2. world. And occupies 2nd among the Indian mobile phone market share. They hold around 23
domestic offices across the state. They succeed every competitor through their innovation and
design such as the mobile handset with 30-day battery backup, dual SIM, QWERTY Keypad,
Universal Remote Control Mobile Phone, etc. Micromax’s first innovation was a handset with 30
days of standby battery life which is inevitable in a country like India because of frequent power
failures mainly in the rural areas. Another ace is the introduction of the dual SIM phones for the
customers who wish to juggle. QWERTY keypad phones for fast texting people and so on.
Change in LOGO
Micromax changed the old logo and unveiled their new logo. The new logo was selected
from list of logos submitted by the participants in the creative hunt to revamp logo contest, in
association with Talent house India.
Old Logo New Logo
Current position of Micromax in Indian mobile market share

3. Factors responsible forthe success ofMicromaxin Indian industry
Micromax is the 10th largest mobile phone company in the world. And occupies 2nd
among the Indian list. The primary cause for the success of Micromax is its advanced products
and merchandising scheme. They are capable to distinguish their wares from the competitors
through proper design and innovations. The brand made its way to the top three lists in SAARC
market. Many factors are responsible for the success of Micromax in India, some of them are
explained below.
1. Newer, Cheaper And Better Products
When the Micromax entered into the Indian market Nokia phones were the best selling
phones, then came the Samsung with the smart phones at premium price points. So the main aim
of Micromax Company was to serve the customers by providing featured phones at low price. So
they introduced a phone (X1i) with 30 day battery backup at a negotiable price, which is crucial
in a country like India because of the inconsistency power supply mainly in rural areas. After this
they introduce the first dual SIM, dual standby phone (GC700) because of intense competition
between the telecom operators forced customer to use two connections. There was besides a
phone built for game lovers with motion sensing games and a mobile (X450 Van Gogh) phone
that incorporates a detachable Bluetooth headset in its sleek design, all these models were new to
the Indian marketplace. And this lift the Micromax into a new height by the close of 2012. At the
start of their vocation, their market share was about 0.59 percent and now their market share
goes up to 18 percent because of their overall market strategies. Recently, it introduced the first
low-cost dual-core ICS smartphone, A89 Ninja (Rs 6200), bringing the power of Android dual-
core to the masses. Positioning the product at low price make the customer to rethink before

4. buying another company's product like Nokia, Samsung which is at the high price segment. This
assists them to acquire more market shares in late years.
2. Leave No Segment
The company mainly focused on three segments in India, they are women, youth and the
professionals. No other companies in the market aimed at ladies and there were no gadgets for
them. Micromax took the courage and introduce a model only for the ladies. The company
launched Q55 and A55 Bling series, particularly for women, without the concern of being
branded as sexist. These two Smartphone’s were studded with Swarovski crystals and enjoyed
very good reaction in the marketplace.
In order to increase the urban market share, the company primarily focuses on the urban
youth of age group between 18-25 years. Since smart phones are the future of the
telecommunication industry, they introduce special smartphones especially for the youth. And
they also launched the cheapest tablet in order to attract youth. This had changed the entire face
of the Micromax. After the launch of the first Android Phone, Micromax launched another
Android Phone Micromax A70 with 3G facilities, which is affordable for a common man.
Micromax A70 will come with the advanced features like 3.2-inch HVGA capacitive touch
screen display, 5 megapixel autofocus camera & front is a VGA camera for video call, Wi-Fi.

5. Most of the professionals keep two phones in today’s life:One for Professional use and another
for the Personal use. So Micromax came up with Dual SIM mobile phones with QWERTY
keypad as well for faster texting of messages.
3. Competitive
Micromax knows that there are many established brands in the mobile phone industry, like
Nokia, Samsung, LG and several other local as well as Chinese manufacturers . And it will be
difficult for them to make a mark in the urban market. And then their strategy was to first attack the
rural market, then move to the urban market. The strategy was successful. They basically cater to the
need of the customers of the rural area, for example, they introduced a 30 day battery backup mobile
phone at a rate of Rs 2800 which is affordable for a rural man. The Micromax was ready with the low
price products when Samsung releases their products at high prices. The Micromax was capable of
producing low priced products because most of their products were manufactured in China and
imported to the Indian market. As you all know that China is well experienced for their excess labor
and resources. Then they moved on to the urban market and they adopted penetration pricing
technique in order to gain more urban market share. They placed their product at a lower cost
and make the customer rethink before buying the other competitor product such as Nokia,
Samsung which are at a higher price segment. Micromax came up with CANVAS series in order
to beat Samsung S series and Apple series in India. Canvas series has the same features as that of
the Samsung series at an affordable price (canvas A110 cost Rs 12000 whereas Samsung s3 cost
around 23000 even though they have the same android platform and same features).

6. 4. Effective Supply Chain
A combination of strategic planning, low pricing, innovation and good marketing help them
to reach the top of the ladder. One of the highlights of the distribution strategy is that they offer
5% commission to each of its distribution chain partners, which consist of 30 super distributors,
450 distributors and around 55,000 retailers. Many large brand companies offer really low
commission to the channel partners. This system made these dealers pay in advance by offering
them more margins and this reduced the problem of payment collection in distribution
management. So the dealer will buy only what they want and it’s the dealer’s responsibility to
ensure that each item is sold. And Micromax doesn’t have to confront any issues like price
protection or dead inventory. This improved the overall efficiency of the company.
5. Introduction of Canvas Series
Micromax is the biggest challenger to Samsung. Canvas series plays a crucial role in
boosting the company’s market share. More than 20 percent of the overall mobile users switch to
smart phone every year. For someone who is making the first jump from say a Rs 3000-4000
feature phone to a smartphone, it is unlikely that the next phone they buy will be a Rs 30,000
one. It is here that Indian mobile company’s like Micromax took the advantage over other
foreign companies like Samsung, Apple, LG etc. Micromax became the first brand to launch a 5-
inch screen phone with a quad-core processor for under Rs 14,000 and they named as Canvas
HD just before the day of the Samsung grand announcement. They quickly launched another
flagship phone, the Canvas 4 priced at Rs 17,999 with software features offered by the Galaxy
S4. Micromax. The Canvas 2 A110 which is dual-core processor phone is available for Rs 9,690
and have all the features of Samsung Galaxy S4 mini that cost around Rs 27,900. Even though
Samsung has superior specs to offer in terms of quality, for a market like India it might not make

7. so much sense to an average buyer to pay Rs 27,900 for a dual-core phone when there many
quad-core phones available in the market for under Rs 20,000. Micromax may not offer all that
the S4 does, merely it has managed one thing. Make a Rs 20k product that looks similar to a Rs
40k one.