Case Study1
Case Study1
Case Study1
Right product at Right time at Right price. Of course their products quality is lesser than
that of Nokia and Samsung but the product lives of all companies are same and no one
uses a smartphone for more than a year or two.
Promotion strategy: To further increase its visibility, Micromax blasted into the market
by advertising through outdoor, online, radio, exchange schemes and promotions via
social cause.
Place strategy: By placing the product in popular stores like Croma, The mobile store,
Reliance Digital etc., high visibility was assured along with the competitive brands. Tie
ups with local distributors for easy availability helped to tap the customers who did not
visit the popular stores.
Distribution strategy: For the B2C model, higher margins up to 15 per cent were
offered to the dealers, which was higher than the industry average of 6 per cent to 10
per cent. This helped them penetrate the market deeper into the urban markets. In B2B
model, where corporate selling was involved, tie ups with major corporate houses saved
the margins of the distributors and Micromax could provide the corporate houses a
lesser price than the market. Thus, the target market of professionals was reached.
Customer acquisition & retention: Micromax provided better after-sales service and
an extended warranty of 2 years; it gained the trust of the customer. Exchange offers
played a key role in customer retention.
Use of Social Media: And above all, use of social media made it boss. Engaging with
its fans made them trustworthy. Micromax collects feedback from its hardcore users and
implements it in their next release whichever is required. Currently, Micromax has over
5.15 million fans over Facebook. The huge success of the brand has been a result of
the promotional activities run over the social media platforms. Twitter page has 121K
followers that remain active to get superb deals and offers through this page. New
launching is promoted via YouTube which currently has 31335 subscribers. Google+
also looks to grab the opportunity of digital marketing with a follower base of 36933.
Micromax, Indias No. 2 smartphone vendor, spends about 10% of its marketing budget
on digital media until last year. Now, more than a third of it goes towards online
campaigns.
Digital marketing is more personalized, which allows direct interaction between the
brand and the consumer, and the response is easily measurable, unlike those on mass
mediums like TV, radio or print. Digital marketing offers data that industry experts say
put them in a better position to make informed decisions.
Shubhajit Sen, chief marketing officer at Micromax Informatics says We try to find out
what people are talking today and if there is a scope or an insight to convert it into
marketing and advertising campaign. The company spends about 2% of its sales on
advertising and marketing. In 2014-15, it posted sales of over Rs 10,000 crore.
#CANGIFTHAPPINESS Campaign on Twitter: Micromax at the time of Christmas
launched a campaign on Twitter #CANGIFTHAPPINESS and with every tweet made
using #CANGIFTHAPPINESS they donated Rs.1 to CRY, India, a NGO to Support Child
Rights. The campaign not only resulted into a great support for CRY but bestowed the
mobile company with some great gifts like more impressions, more mentions, more
followers and so on.
More than 11,600 people participated in the campaign that generated 29.5 million
impressions during the Christmas week. 2, 38,332 tweets were posted that made the
donation amount to reach INR 4, 69,664. Even celebrities and influencers joined this
campaign for social cause and more than 2 lakh mentions were generated.
Results
All the mentioned strategies helped Micromax in increasing its market share and it
penetrated deeper in the urban markets. It became the largest GSM mobile phone
vendor in India leaving Nokia and Samsung behind. However, currently Samsung has
again dominated the android market but Micromax with its budget smartphones has
been able to hold on a share of 17 per cent in the Indian smartphone market. It sells
more than 1 million mobiles every month. By offering a product line ranging from mobile
phones to LED televisions, tablets and data cards, Micromax became the largest Indian
mobile company that almost cannibalized the market leader Nokia. Earlier in Q2 2014,
Micromax overtook Samsung to become the largest mobile phone supplier in India.