lot of things students connect to for academic needs, including school attendance, tutorials, submissions and consultations. In plain, language, this is what Micromax had to do to stay in the market (see feature trending in. region has to start making money in the second year, or the venture would cease to exist. The brand-as-person perspective suggests a brand identity that is richer and, more interesting than one based on product attributes. He had to find a way to make the marketing strategy speak for itself. For the emerging markets, it was important to optimize the. Any company could make a cost-effective phone, but few could position, brand and sell it the way Micromax did. keep prices low and salability high in the new markets. These manufacturers were instrumental in, narrowing the price gap between feature phones and smartphones. The discussion can be organized around three phases of 20 minutes each, within a, 75-minute class, which would address the three questions raised by the course instructor. Handset Assistant; first Indian phone to imitate Siri of Apple’s iPhone 4S. Shubhodip Pal, Head of Marketing at Micromax Informatics Pvt Ltd, India, pondered the marketing, strategy which could pave the way into maintaining the company’s national leadership position while, creating a roadmap for its global foray. Introduction The Midas touch – living up to my image! This established the brand, identity for the company, as Joydeep was keen to change the perception that was the, brand. A, viable option to keep the price-sensitive Indian consumer hooked onto Micromax was, through feature trending, which had already proved successful. As of 2020, there are several marketing strategies like product/service innovation, marketing investment, customer experience etc. Case overview On product quality, it was confirmed that the plants they were, associated with also manufactured handsets for all global majors. 2012 (in per cent terms), April 2008: Rs 2,249; Now: Rs 1,999. Seal, in the CMO Pitch Summit 2010, identified effective segmentation for this product. The lower price offering for the same technology that is being used by other high end brands will lure customer to by Micromax products and hence, will create customer loyalty. Korea, Taiwan, China, and Malaysia for semiconductors; and China, Brazil, Costa Rica, and Nigeria for some agricultural crops. The extended identity, on the other hand, includes elements that provide, texture and completeness. – The students studying this case are expected to learn: marketing strategy in emerging markets such as India, marketing strategy as the critical success factor for upcoming Indian companies rather than product innovation and doing business in emerging markets. It, is imperative that companies selling to the Indian market keep this fact in mind. The marketing strategy used by Micromax has been outlined in, In the third and last phase of discussion, the focus moves to “perception” and brand image, of the company and the launch of Canvas range of phablets in the Indian market. The main strength displayed by the, company has been in competitive pricing. The connect was felt with both ends of the demographics: 18-30-year-olds were delighted to connect with Hugh as their brand ambassador, and, 30-50-year-olds started responding to a homegrown brand which had performed well and, could now afford a big celebrity as its brand ambassador. July 2008: Rs 1,999-12,999. Marketing mix is the general concept in marketing that still used in business today. top selling models for the brand were IRIS 349 and IRIS 402. by volume, in India. Ernst, D. (2002), “Global production networks and the changing geography of innovation systems: Fagerberg, J. and Godinho, M. (2004), “Innovation and catch-up”, in Fagerberg, J., Mowery, D. and. The content on MBA Skool has been created for educational & academic purpose only. The core marketing strategy included a sustained marketing. The companies are not associated with MBA Skool in any way. customers, and made this the company’s innate positioning strategy. David A. Aaker developed a comprehensive brand identity planning model. People change, phones a lot faster now than they did earlier. Shubhodip Pal, Head of Marketing at Micromax Informatics Pvt Ltd, India, pondered the marketing strategy which could pave the way into maintaining the company’s national leadership position while creating a roadmap for its global foray. Earlier Micromax had no evidence, of marketing investment in international celebrity, but the new CMO with the Midas touch. Joydeep decided to arrange a meeting with his mentors who. For Micromax, marketing strategy and not product innovation would fulfil the goal of, long-term growth in India and overseas markets. . find it imperative to steer it towards competitive strategy building. Smart phone market share in India in Q4. 5. The, Canvas buyers were educated, upwardly mobile men and women who preferred the good, life, visits to multiplexes and malls and chatting on social media. Feature phones: The company provides its customers the QWERTY experience and provides few models for the same. Katz, J. In a business context, flexible, and inclusive approach to problem solving and innovation”, says Professor, Jaideep Prabhu, of Cambridge University’s Judge Business School. The target consumer was youth of this, country who always looked for innovations that were affordable and directly addressing. For Micromax, marketing strategy innovation, and not product innovation, would fulfil the goal of long-term growth in India and overseas markets. take care of issues including doing business in emerging markets. For example, the idea to provide a mosquito repellant sonic, application in a mobile phone for the rural consumer is true innovation as compared to a camera, with multiple photo burst options’, said Sharma, ED Micromax Informatics Ltd. (Excerpt of an, Joydeep realized that the strategy of identifying the target group and then customizing the, product around them seemed to have worked well with the company and the Indian. What is Experiential Marketing? For example, electric cars to reduce pollution or, eco-friendly gadgets such as solar-powered phones that reduce the need for electricity or. attributes can be easily replicated, especially so in the smartphone and phablet markets. How can the marketing strategy at Micromax propel the. All this promised great segmentation opportunities for this versatile phone, While planning its foray into the Russian market, Micromax had assumed a leadership, position among top handset makers in Sri Lanka, Bangladesh and Nepal. : Here feature trending was the key to success. An unparalleled increase in, revenue inflow further substantiated the Midas touch that Rahul has brought to the, company, and an equally impressive growth of the company highlights the consistency of, his leadership. 1. All rights reserved. How, would he convince Dharampal on the justifiability of the process? There has been a. significant pick-up for the titanium range of phones, especially S5 and S2. Micromax marketing strategy is to improve the visibility in the urban markets by improving awareness of customers for our products and also building brand image. Some of the. As a consequence, knowledge integration capabilities have increasingly become core competences for firms competing on world markets. Earlier also, Micromax has endorsed movie stars and celebrities as the brand ambassador to promote its products as the company understand what influence celebrities have on people’s mind in India. The, company was in a better shape financially, and in a position to assume larger risks. With his, unique set of expertise in the 3G business dynamics, coupled with a great sense of, innovative business ideas, Vikas had successfully contributed in taking the company to. At the same time, it is offering all the features essential in a, Simultaneously, other well-established approaches can be discussed in class to, strengthen the understanding of strategic innovation. It changed the “perception” of Micromax through Hugh Jackman. WhatsApp has certain design based advantages over the conventional account holding applications whose adoption is not easy by the emergent users because ofcertain barriers. At Micromax, the team does not believe, in so-called “product innovation”. Similar patterns of growth can be found in other emerging economies. Join ResearchGate to find the people and research you need to help your work. Marketing Strategy Of Micromax mobile. , Harvard Business School Press, Cambridge, MA. There was tough competition, from Nokia, Apple and Samsung in its new markets as well as in India, but Rahul was, undaunted. It then discusses the interplay between national systems and sectoral systems. Joydeep began to reflect on the marketing philosophy at work in Micromax. The CMO with the Midas touch set to work to understand what brand Micromax, did differently from others which set them apart in a heavily cluttered and price-sensitive, market. Besides Russia and Romania, Micromax, planned to enter into two more countries in the same year. To make the brand aspirational, does it, need heavy investments in technology, R&D and product innovation the way that Apple and, Samsung have? and campaigns so that they were aligned towards Micromax”, quoted Jain. It forms the base plan that the company will use to attract clients and sell its product. Joydeep thoroughly once he took over the reins from Pratik. As Micromax handsets are much on the low pricing side, manufacturing in China provided it a cost effective. According to Seal, once again, at the CMO Summit in 2010, “The greatest challenge in, India, was – creating a brand in a cluttered environment”. Over 200,000+ tweets were generated with more than 2 lakh mentions, with a reach of more than 100 Million. The role of the chief protagonist Pallav, his contribution to the previous stints at different organizations and the role of a leader in this scenario has been brought to the forefront. “We had two options –, compete on price or be different, so we decided to be different”, Jain had said. Subject code offering for the consumers. A tablet, with fabulous applications especially focused on enticing kids to use interactive multimedia, techniques to learn mathematics or science. Micromax Informatics Ltd: Marketing strategy for emerging markets Soma Arora Soma Arora is Assistant Professor at Institute of Management Technology, Ghaziabad, India. well-built ecosystem fostering the growth and launch of new products or is it an intuitive, natural process where the company acts and reacts successfully to the external. As of now, the brand provides more than 60 models with different and exclusive features. In the case of Micromax, a mobile handset maker from India tried to drive home the point that sustainability in emerging markets did not lie in inventing a new technology like Apple or Nokia or Sony did, albeit accompanied with a premium price tag. These, efforts are expected to bear further fruit in the coming quarters in time for their upcoming, The competitive market position of the leading players in 2012-2013, as per the IDC Asia. Once again, Micromax seemed to have proven that the, brand had to exist in the minds of the customer, irrespective of what you have placed in, their hands as a new product from their favourite brand. Micromax sells around 2.3 million mobiles every month. Now, they decided to. This YouTube link can be used by the instructor [, and make it much easier to gain recognition and recall. The core identity remained unchanged through the, Evidently, CMO Pal had achieved what he hoped for in this new campaign [. “If the distributor did not buy your handsets, there was no, pressure on him to sell them”, explained Agarwal. “But if we supplied less, demand from the distributor. The class discussion would, begin with deep-rooted understanding of marketing strategy at Micromax. The article shows that, over time, the knowledge boundaries for innovation, production and commercialization have greatly expanded, often to reach beyond the legal boundaries of firms or even the conventional definition of industries. The outcome was Xli: priced at only $42, it was an instant hit in rural, India, and Micromax’s handset business was on its way. All other sub-categories are to be phased out at the earliest. It fills in the picture, adding details that help portray what the, brand stands for. Israel, China, Brazil, and other countries for software; Korea and India for telecommunication equipment; By the 1990s, the industry was one of the largest employers in manufacturing. A rough estimate of the net purchasing power of the microconsumers. the company’s national leadership position while creating a roadmap for its global foray. A marketing strategy is important for all businesses because it clearly outlines how they will find new customers and promote their products and services to ultimately get more sales. rely on all the marketing strengths of this company to make the brand aspirational, including changing the so-called DNA (marketing philosophy) of this cheap brand to make, it look and feel aspirational. India is one of the fastest-growing markets for smartphones in the. The 5.0-6.99-inch screen-size smartphones (phablets) continued to, show sustained growth in 2012 as well, and the phablet category contributed to 23 per cent. market structure like India was perhaps a new dimension in innovation never seen before. Nelson, R. (1994), “The coevolution of technology, industrial structure and supporting institutions”. to elucidate topics in segmentation, targeting and positioning. Each perspective is distinct. Price comparison with market leader Samsung for latest range of. One such theory is the concept of the microconsumer. emerging market selling 60 different brands of mobile phones in a year. (2002), “Competitive advantage of the late-comer firms: a resources based account of, Morrison, A., Pietrobelli, C. and Rabellotti, R. (2008), “Global value chains and technological. But, this parameter had become more like a norm rather than an aspiration at Micromax. The need of the hour was a small entrepreneurial. Micromax Informatics Limited, earlier just a telecommunication equipment distributor, entered the market of mobile handset when Rajesh Agarwal, Rahul Sharma, Sumit Arora and Vikas Jain came together in 2008. Funbook September 2012: Rs 7,200, a seven-inch tablet with the applications and features of any, Exhibit 7. These models have dual sim feature and an option to choose between CDMA or GSM mobile phones. He. Innovative technology is not always, the answer to beating tough market competition. So far, they had been customizing a Nokia instrument. Joydeep was the Chief Marketing, Manager, CMO at Micromax Informatics, India, and reported directly to the CEO, Mr. Mr Attri’s parting words to Joydeep, before he left for Moscow two days back, had been: Let us be clear. Exhibit 13. Elevating, symbols to the status of being part of the identity reflects their potential power. It, began with the thought that perhaps Micromax was currently viewed as a Chinese trading, company selling affordable phones and therefore was a “cheap” brand. Hence, Hugh Jackman became the Canvas, As suggested by Aaker’s elaborate brand taxonomy, brand identity consists of a core. Sharma worked with an auto components company called Bundy Engineering, but in 1999, all three quit their jobs to join Agarwal and set up Micromax Technologies, an IT education, company dealing in e-commerce and embedded technologies. Polaris specialized in building world class off road vehicles (ORVs) and was a global leader in the same. 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