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INTRODUCING MICROMAX MOBILES IN INDIAN MARKET

OBJECTIVE: To study micromax mobiles in Indian market and to identify their marketing strategies. INDUSTRY PROFILE:

NOKIA 54.1% LG 6.4% SAMSUNG 9.7% MOTOROLA 5.9% MICROMAX 4.8% SONY 5.8% OTHERS 13.3%

Courtesy: IDC report on growth of mobile sales in India, 2009

The growth has more or less flat [owing to low sales figure in Q1] in total, 101.54 million units of sales were registered. Local manufacturers have grabbed 18.1% market share [from 0.9% in 2008]. Only 5 local manufacturers in 2008 and the number stands at 28 now. Nokia market share in India fell from 56.2% share in 2008 to 54.1% in 2009. Samsung Electronics Co. Ltds share rose marginally to 9.7% from 9.5%. LGs share dropped from 7.2% to 6.4%. Of the local manufacturers, Micromax leads the race and holds a market share stands of 4.8%. COMPANY PROFILE: Micromax Informatics Ltd is a New Delhi, India based Telecom manufacturer and distribution partner to Nokia, Samsung, LG etc for their

IT / Telecom products in India. With an annual turnover of INR 5000 million, Micromax has offices in all major India cities and global offices in Dubai and USA.Micromax has been making supplies to the Indian GSM operators for their different telecom requirements and is now expanding their product range to the global markets. Miramaxs products come with a quality seal meaning product satisfaction, high reliability resulting in repeated business. Micromax has their own 24 hour operational customer service centre just in case you need that small bit of information albeit at the wrong hour.

MARKETING METHADOLOGY:

Micromax, started operations in 1991 as an embedded software design firm, but was incorporated as a company in 1998, when it branched out as a distributor of computer peripherals such as printers, monitors, scanners from manufacturers such as LG, Sony Inc., Dell Corp.We hope to be present in at least one country each in Latin America, Middle East and Africa before the end of the financial year, Jain said. Geographical Segmentation: The firm has identified Brazil, Nigeria and Dubai as target markets. Micromax specialized in entry-level and mid-segment handsets priced between Rs1, 800 and Rs2, 400 when it started selling the devices in 2008, confining itself to small towns and rural areas in the first 12-18 months. One of the major aspects that contribute towards the substantial monthly growth of Micromax is its 80% sales in the rural areas.

Micromax is planning to expand its range in keeping with new market demands. It is readying several high-end handsets, including phones that will run on Googles Android and Microsofts Windows Mobile operating systems (market stretch). The handsets are expected to be available in April or May, Jain said. Having gained traction; Micromax is also working on a strategy to create awareness in the metros, which includes tying up with MTV for co-branded phones. Distribution channels: Once you have established a good distributor network and sales are robust, the next logical step is branding exercises to ensure consistent brand re-call among your target consumer base, said Romal Shetty, executive director and head telecom practice at audit and consulting firm KPMG India. Encouraged by its success, the firm expanded to larger cities and now has a

distribution network of 55,000 retailers, which it plans to scale up to 70,000 by the end of March as part of its strategy to raise sales to 1.5 million handsets a month.

Branding: Micromax has also tied up with a Bollywood celebrity who will be announced shortly as brand ambassador, Jain said. Bollywood star Aamir Khan endorses Samsung phones. The Micromax phones are designed by the in-house research and development team, as is the embedded software. The on-board chips come from MediaTek Inc., Qualcomm Inc. and Infineon Technologies AGthe last two also count Nokia as a client. Manufacturing is outsourced to about 11 factories in Taiwan, South Korea and China. Micromax has invested Rs100 crore to set up a plant in Baddi in Himachal Pradesh as it feels outsourcing manufacturing completely leaves the door open for supplyside uncertainties. Production will be scaled up from an initial 50,000 per month. Micromax is one of the leading Indian Telecom Companies with 23 domestic offices across the country and international offices in Hong Kong, USA, Dubai and now in Nepal. With a futuristic vision and an exhaustive R&D at its helm, Micromax has successfully generated innovative technologies that have revolutionized the telecom consumer space. Micromax is on a mission to successfully overcome the technological barriers and constantly engender life enhancing solutions. The companys vision is to develop path-breaking technologies and efficient processes that incubate newer markets, enliven customer aspirations and continue to make Micromax a trusted market leader amongst people. The Micromax

ideology stems from its rooted belief in Innovation and delivering nothing short of the best. Product line: Micromax has a lot of firsts to its credit on their versatile product portfolio. It was the first to introduce: Handsets with 30 days battery backup, Handsets with Dual SIM / Dual Standby, Handsets Switching Networks (GSM CDMA) using gravity sensors, Aspirational Qwerty Keypad Handsets, Operator Branded 3G Handsets, OMH CDMA Handsets, etc Promotion: With a 360 degree advertising (media, internet, TV and print media) and marketing strategy sketched out, the company has an optimistic outlook for the telecom consumer space. Currently present in more than 40,000 stores across the country, the company plans to have an aggressive market incursion to reach out to its customers through 70,000 operational stores in the coming year. After building a strong presence in the rural market, where the prominence of both subscribers and operators is rapidly increasing, Micromax is now progressively moving towards establishing its foothold in the competitive urban towns as well. With young enthusiasts as its anchor, Micromax Informatics Limited has created a niche for itself in the telecommunication industry. Micromax ventured into the telecommunication industry with an end-to-end solution of Fixed Wireless Devices and Wireless Data Cards. In the year 2008, after delivering upon the technology of fixed wireless-powering desired products, the company forayed into one of the most predominant genres of telecommunication Mobile handsets. Since then Micromax has received commendable response for its unique and interesting handsets.

Innovation, Cost-Effective, Credible and an Insightful R&D, have now become synonymous to Micromax in the telecom vertical. Today Micromax has become a brand which people relate and look up to for realizing their individual device preferences and other out-of-the-box solutions.

Vision
Micromax India's Vision entails helping people improve the quality of their lives by providing them with superior quality, state-of-the-art technology products at the right time and the right price. But beyond its role as a purveyor of quality products in India, Micromax seeks to contribute to the economic growth of the country though its export commitments and large scale production facilities generating secured employment for hundreds of Indian people.

At Micromax, we strive to contribute to the development of the electronics and components industry in India by enhancing the knowledge levels of our workforce through the introduction of

our advanced management systems and production know-how in our manufacturing facilities by introducing our Indian vendors to our world class quality systems and helping them in improving them in their own quality systems and production processes and setting benchmarks for the industry both in terms of after sales service for our products, quality systems and management techniques at our facilities or our products themselves. At Micromax, we believe in returning to the community some of the profits we earn from it, through the social causes we espouse. We view ourselves not as an MNC operating in India, but as an 'Indian Company' operating here, conforming to the laws of the country and committed to working for the Indian community. We want and to be seen as the 'Most Respected' Indian Company.

Value & Philosophy

What makes MICROMAX one of the world's leading companies?


How we got here

Ever since it was founded in 1938, MICROMAX has continually refined its mission statement to respond both to change in itself and in the world: "Economic contribution to the nation," "Priority to human resources," "Pursuit of rationalism." Each slogan represents significant moments in MICROMAX's history, reflecting different stages of the company's growth from a domestic industrial leader into a global consumer electronics powerhouse.

In the 1990's, we once again acknowledged the need to transform our mission statement to keep pace with our growing global operations, rapid changes in the world economy, and escalating competition from well-established rivals.

Our Management Philosophy "We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society."

Our management philosophy represents our strong determination to contribute directly to the prosperity of people all over the world - a single human society. Key to our efforts is our own people, whose talent and creativity are dedicated to doing their best at all times. Technology also plays an important role in making it possible to achieve higher standards of living. And superior products and services are what we are all about.

We believe that the success of our contributions to society and to the mutual prosperity of people across national boundaries truly depends on how we manage our company. Thus, we challenge the world to create the future with our customers. Our determination is growth - a perpetual challenge - but always working within the context of cooperation and inclusion of our customers.

Research & Development

The companys thrust on Product Innovation and R&D have given the company a competitive edge in the marketplace. Micromax has set up Micromax India Software Centre (SISC) and Micromax India Software operations unit (SISO) for software development at Noida and Bangalore respectively. While the Micromax India Software Centre in developing software solutions in Micromaxs global software requirements for hi-end television like Plasma and LCD TVs, SISO is working on major projects for Micromax Electronics in the area of telecom: wireless terminals and infrastructure, Networking, SoC (System on Chip) Digital Printing and other multimedia/digital media as well as application software. In addition to working on global R&D projects, SISO is also helping Micromax Indias CDMA business by focusing on product customization for the Indian market. While the Micromax India R&D Centre has around 300 employees, SISO currently employs over 800 highly skilled professionals.

With an investment of over USD 100 million, SISO is charting out major growth plans in the country, with its current focus being in the 4G & Multimedia area. SISO has already applied for 145 patents based on the software development carried out here in India. In fact, SISO has a special Intellectual Property Team working on securing Patents for its breakthrough projects. SISO plans to continue its focus on Multimedia & Protocol development; build a strong competency in technology and focus on WCDMA technology and User Interface. Micromax India is also carrying out Hardware R&D at its Noida R&D Centre. The focus of the R&D Centre is to customize both Consumer Electronics and Home Appliance products to better meet the needs of Indian consumers. From colour televisions designed for higher sound output, to washing machines with special Saree Wash Course, DNIe vision series of Flat CTVs especially designed for the Indian market to Micromax mobiles with regional language menus, the Micromax R&D Centres in India are helping the company to continuously innovate and introduce products customized for the Indian market.

WIRELESS INFRASTRUCTURE

Overview
Architecture point of view,UMTS logically is divided into CS Domain and PS Domain. CS Domain refers to the set of all CN entities offering CS type of connection for user traffic as well as all the entities supporting related signaling. PS Domain refers to the set of all CN entities offering PS type of connection for user traffic as well as all the entities supporting related signaling. The network elements MSC and GMSC belongs to CS domain whereas the elements SGSN and GGSN belongs to PS domain.

UMTS
UMTS Core Network is a Third Generation (3G) mobile communications systems being developed by Micromax within the framework defined by the ITU and known as IMT-2000. UMTS will deliver low-cost, high-capacity mobile communications offering data rates as high as 2Mbit/sec under stationary conditions with global roaming and other advanced capabilities. 3G

core network system enables users to transmit voice, data, and even moving images. In order to realize these services, 3G improves the data mission speed up to 144Kbps in a high-speed moving environment, 384Kbps in a low-speed moving environment, and 2Mbps in a stationary environment. 3G provides services like Internet connection, transmission of large-scale data and moving contents photographed by digital cameras and videos, and software downloading. Architecture point of view, logically is divided into CS Domain and PS Domain. CS Domain refers to the set of all CN entities offering CS type of connection for user traffic as well as all the entities supporting related signaling. PS Domain refers to the set of all CN entities offering PS type of connection for user traffic as well as all the entities supporting related signaling. The network elements MSC and GMSC belongs to CS domain whereas the elements SGSN and GGSN belongs to PS domain.

The concept of 3G wireless technology represents a shift from voice-centric services to multimedia-oriented (voice, data, video, fax) services. Heavy demand for remote access to personalized data is fueling development of applications, such as the Wireless Application Protocol (WAP) and multimedia management, to complement the 3G protocols.

COMPANY PROFILE

Micromax Electronics India Software Operations (SISO):

Micromax Electronics India Software Operations (SISO) was set up in February 1996 in Bangalore as a liaison office. Since its inception SISO has grown to over 500 Software Engineers working on R & D projects in the latest technology areas.

SISO as an organization is involved in the business of developing software for Micromax Electronics Corporation technology solutions in a variety of different areas. Micromax Electronics R & D organization. SISO is part of the

As a CMM Level 5 Assessed and an ISO 9001 Certified company, quality underlines every aspect of our organization. This commitment to quality combined with innovative technology designed for Indian conditions and an infrastructure second to none, has contributed to Micromax's success in the global market since 1996.

OUR CONTRIBUTION

In the short period of a little over half a decade that the organization has been operational, SISO has contributed in a big way towards a number of key projects. Cutting edge technologies like 3G Wireless, Broadband, Intelligent Appliances for Home Networking, Multimedia, Networking etc... have been some of the focus areas for the company. During this period of about 7 years, the organization has grown in strength in terms of numbers as well as in terms of the expertise that it possesses in certain key technology domains. Today, SISO's engineers are involved in many of Micromax's highly strategic and important projects. The company boasts of a highly talented and motivated work force who have been constantly enriching their knowledge and skills.

SISO's well defined goal of 'Being a partner today and a Leader tomorrow' is being aggressively pursued by the management. Therefore, in certain areas like 3G Wireless, SISO as an organization is being identified as a key development center within all of Micromax's global labs. The company is striving hard at getting such recognition in other areas as well - like 'Home Networking/Intelligent Appliances', 'Networking' and 'Embedded Software'.