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The document outlines a managerial economics assignment focused on analyzing market demand for a new smartphone model. It identifies three key factors influencing demand: price range, technological advancements, and social media impact, each contributing to a rightward shift in the demand curve. The analysis emphasizes the importance of understanding these dynamics for successful product launch strategies.

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82 views7 pages

Marketing Assigment (AutoRecovered)

The document outlines a managerial economics assignment focused on analyzing market demand for a new smartphone model. It identifies three key factors influencing demand: price range, technological advancements, and social media impact, each contributing to a rightward shift in the demand curve. The analysis emphasizes the importance of understanding these dynamics for successful product launch strategies.

Uploaded by

VirendraSonker
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MBA IN POWER MANAGEMENT

Assignment
Managerial Economics Assignment- 1
Submitted by
Virendra Pratap Sonkar
Student ID: 590020833
Assignment 1

Imagine you are a consultant for a popular smartphone manufacturing company. The
company is planning to launch a new model, and they need your expertise to understand
the potential market dynamics. Using the concepts of demand and supply, answer the
following questions:

Market Demand Analysis:

Identify and explain at least three factors that could lead to an increase in the demand for
the new smartphone model.

How would each factor influence the demand curve? Illustrate your answer with a diagram.

Ans 1- Factor that could lead to an increase in the demand for the new smart phone model

1- Price Range
According to market research price range between 8000 to 16000 having highest market
share of 44% so demand is more in this price range. so, it will better to launch new model
with in this range

Smartphone Market Segmentation by Price Range (2024)


Price Range Market YoY
Leading Brands/Models
(INR) Share Growth
< ₹8,400 14% -36% Xiaomi, Poco, Realme
₹8,400 –
44% +8% Xiaomi, Realme, Vivo
₹16,800
₹16,800 –
28% +42% Oppo, Vivo, Samsung
₹33,500
₹33,500 –
4% -25% Vivo, OnePlus, Oppo
₹50,400
₹50,400 – Apple (iPhone 13), Samsung (Galaxy S23 FE),
2% -37%
₹67,100 OnePlus
Apple (iPhone 14/15 series), Samsung (Galaxy
> ₹67,100 7% +22%
S24)
With above demand vs price graph it is clearly understood that with at price level between
8000 to 16000 the demand for smartphone is in between 7000 unit to 14000 unit is very
high then it would be better to launch model in between this range.

2- Technology advancement
The rapid evolution of artificial intelligence (AI), camera systems, and display technologies is
profoundly shaping consumer preferences in the smartphone industry. These cutting-edge
developments are elevating the user experience while fuelling substantial market expansion,
as highlighted by recent studies and industry trends.

🤖 AI Enhancements: Redefining Smartphone Interactions


The incorporation of AI into smartphones has transformed how users engage with their
devices and expanded their functionality:

 Generative AI Capabilities: Samsung’s Galaxy S24 series, powered by Google Gemini


AI, introduces features such as real-time language translation, tailored task
automation, and sophisticated photo editing tools.
The Australian

 Apple’s AI Advancements: The iPhone 16 series brings "Apple Intelligence,"


upgrading Siri to handle tasks like summarizing content, transcribing calls, and
generating personalized images.
Investor's Business Daily, WSJ
These AI-powered features are motivating users to upgrade their smartphones, drawn by
the promise of greater personalization and productivity.

📸 Camera Technology: Revolutionizing Smartphone Photography


Innovations in camera systems are playing a pivotal role in boosting smartphone demand:

 AI-Enhanced Imaging: Samsung’s ProVisual Engine leverages AI for adaptive scene


detection and real-time optimization, improving image sharpness and minimizing
noise.
Wikipedia, TrendForce

 Advanced Sensors: The industry is witnessing a shift toward 49MP to 64MP primary
lenses, with developments like periscopic lenses and hybrid glass-plastic optics
enhancing color accuracy and overall imaging performance.
Telecom Lead, TrendForce

These improvements meet the rising consumer demand for professional-quality


photography features in their smartphones.
Quantaintelligence

📱 Display Innovations: Elevating Visual Quality


New display technologies are reshaping the visual experience on smartphones:

 MicroLED Technology: With benefits like increased brightness, energy efficiency, and
durability compared to OLEDs, MicroLED displays are being embraced by brands like
Samsung and Sony, delivering exceptional visual quality.
Wikipedia

Such advancements appeal to users looking for immersive, high-definition displays, further
accelerating market demand.

📈 Market Expansion Fueled by Technological Progress


The adoption of these technologies is closely tied to significant market growth:

 AI Camera Market Growth: Expected to reach USD 70.89 billion by 2032, with a
CAGR of 22.61%, propelled by progress in AI and machine learning.
EIN Presswire

 Mobile AI Market Growth: Forecasted to grow from USD 24.91 billion in 2024 to
approximately USD 274.88 billion by 2034, at a CAGR of 27.14%.
Precedence Research

These statistics highlight the profound influence of technological innovation on consumer


interest and market growth.
🧠 Consumer Trends: Driven by Technological Innovation
Consumers are increasingly inclined to upgrade their smartphones to access cutting-edge
features:

 Improved User Experience: AI-driven features and advanced camera systems are
major drivers behind purchasing decisions.

 Future-Readiness: Users prioritize devices that support emerging technologies,


ensuring long-term usability and relevance.

This trend illustrates how technological advancements shape consumer behaviour and fuel
demand in the smartphone market.

In conclusion, the synergy of AI integration, camera system advancements, and innovative


display technologies is significantly enhancing consumer interest in the smartphone sector.
These developments not only improve user satisfaction but also act as critical differentiators
in a competitive landscape, encouraging upgrades and propelling overall market growth.

Price

| D2

| /

| /

| /

| / D1 (original demand)

| / /

| / /

| / /

|/ /

|/_____/

Quantity

 D1 = Original demand curve (before tech advancements)

 D2 = New demand curve (after AI/camera/display improvements)


 The shift from D1 to D2 represents increased demand due to perceived added value.

3-Social media impact


The impact of social media on a new smartphone launch in India is significant and
multifaceted. Here are the key ways it influences demand and overall success:

🔵 1. Creates Instant Awareness & Reach

 Platforms like Instagram, YouTube, Twitter, and Facebook allow brands to reach
millions within hours.

 Influencer marketing (tech reviewers like Geeky Ranjit, Technical Guruji, etc.)
generates pre-launch excitement and early traction.

👉 Effect: Rightward shift in the demand curve as awareness leads to increased interest and
willingness to purchase.

🔵 2. Builds Trust Through Reviews and User-Generated Content

 Early adopters and influencers post unboxing, reviews, camera tests, and
comparisons, reducing buyer hesitation.

 Positive word-of-mouth creates social proof.

👉 Effect: Enhances buyer confidence → more people demand the product at a given price.

🔵 3. FOMO & Viral Marketing (Fear of Missing Out)

 Limited-time offers, flash sales, and trending hashtags (e.g., #SuperFast5GPhone)


create urgency and drive impulse buying.

 Contests and giveaways increase brand engagement.

👉 Effect: Short-term demand spike, shifting the curve outward especially in launch weeks.

🔵 4. Targeted Advertising
 Platforms like Meta and Google offer hyper-personalized ad targeting by region, age,
interests, income.

 You can directly market to potential buyers (e.g., 18–35 year olds in Tier 1 & 2 cities).

👉 Effect: Increases conversion rate, making marketing spend more efficient and boosting
demand.

📈 Summary Impact on Demand Curve:

 Social media acts as a demand accelerator by improving visibility, credibility, and


urgency.

 The demand curve shifts to the right, meaning at each price point, more units are
demanded.

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