lifecycle of a handset has reduced to eight or nine – at most 10 – months. Please contact your library to gain login details or email email@example.com to request teaching notes. Any company could make a cost-effective phone, but few could position, brand and sell it the way Micromax did. Comment on the dynamics of innovation at Micromax: Does it revolve around a, . As Micromax is seeking global expansion, it signed Hugh Jackman as its brand ambassador. Place strategy â€“ By placing the product in popular stores like Croma, The mobile store, Reliance Digital etc., high visibility was assured along with the competitive brands. They have been able to do 'account holding' tasks with a greater ease, which means they establish social online identities, manage off-line communication, share and forward content, and create and join groups with less difficulty. . While Android-based smartphone makers such as Micromax and Samsung are seeing a surge in, demand, the same can’t be said of all handset manufactures, especially those operating on, platforms other than Android. Subject area There was no way the company would take loans from ﬁnancial institutions for purposes of, international expansion or sustenance and had raised funds initially from TA Associates, and Sequoia Capital, which together held about 20 per cent of Micromax. This is how Micromax converted a distributor into a, stakeholder. This is a step-by-step, comprehensive, in-depth guide that holds your hand through the creation of a marketing strategy that BOOSTS leads. (2007), “The ‘non globalization’ of innovation in the, Malerba, F. and Orsenigo, L. (1997), “Technological regimes and sectoral patterns of innovative, Mathews, J.A. National Innovation Systems: A Comparative Analysis, Economic Development as a Learning Process: Variation across Sectoral Systems, Mastering the Dynamics of Innovation: How Companies Can Seize Opportunities. Micromax has placed its products in highly visible retail outlet like Reliance Digital, Chroma, stand-alone stores of Micromax and also has its presence in local distributors and retailers. The growth trend in the, smartphone market was mainly due to the urban populace, with a large chunk remaining, untapped in the rural markets. 17 hours of talk time and go 30 days on a single charge. There existed a huge potential for smartphone penetration in India. Economic Times, July 14, 2010. According to market intelligence ﬁrm IDC, Micromax shipped 2.58 crore handsets, including both, smartphones and feature phones, during calendar year 2013, up from 2.19 crore handsets during, 2012. But it went about the business differently, and stressed on product innovation for the low-end, price-conscious user. – Strategic brand management or marketing strategy courses at MBA level. itself, Micromax sourced its handsets from 12 factories in China, South Korea and Taiwan. with a closing, of 15 minutes, to wrap-up the session. to elucidate topics in segmentation, targeting and positioning. Micromax had its eyes set on the Russian, market for the coming year. We would continue to challenge the notion that great, technology comes at a higher price by introducing innovative products that simplify needs, of our consumers and wish to grow ahead of the market”. 36 No. The Samsung, Apple, and Nokia of the developed world continued to propose new offerings of seamless. It has been reviewed & published by the MBA Skool Team. It was most unlikely that Micromax would highlight the fact that the, brand was Indian. Russia was different, and posed a challenge. The company has to learn from its experiences in the home market to be successful, abroad. Price-sensitive segments existed in abundance in most emerging markets, making. library to gain login details or email firstname.lastname@example.org to request teaching notes. brand to a leadership position in India and overseas markets, in 2013 and beyond? Karan Thakkar, a senior market analyst at IDC. catching up by several countries in six industries: India and Brazil for pharmaceuticals; Korea, China, and Brazil for autos; The company is also using digital platform for promotion purpose. “Jugaad”, Suggested Reading: Govindarajan, V. and Trimble, C. (2012), Reverse Innovation, Havard, strategy – to tap an emerging market, as has been seen in the case of. 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. This book originates from the growing recognition of significant sectoral differences in economic development and examines the catching-up process in five different economic sectors: pharmaceuticals, telecommunications equipment, semiconductors, software, and agro-food industries. plans to launch four handsets a month in these countries and new variants were planned, such as a mosquito-repellent phone, designed to emit frequencies to repel mosquitoes; a, phone that doubled up as a computer mouse; and a phone with waterprooﬁng. He. “If the distributor did not buy your handsets, there was no, pressure on him to sell them”, explained Agarwal. How to make the brand aspirational to compete with global, players and the market leader without increasing price? Every night, the PCO owner would lug the battery 12 km, to an adjoining village on his cycle, charge it there overnight and lug it back to Behrampur, in the morning. Then use the information that you collect, along with other *development tools, to build your marketing strategy. “keeping. in the overall market in terms of volume. The main strength displayed by the, company has been in competitive pricing. For Micromax, marketing strategy innovation, and not product innovation, would fulﬁl the goal of long-term growth in India and overseas markets. A growing number of, companies are being drawn to the idea that money can be made by developing and, marketing products for those at the bottom of the pyramid. While the big players like Nokia, Samsung, LG, Motorola and SonyEricsson make up for 70% share, the market has of late seena slew of domestic firms such as Micromax, Karbonn andEntex making large … But does, affordability mean the brand is non-aspirational? Soma Arora’s research interests include industrial upgradation for Indian companies, internationalization strategies and measurement scales for emerging markets. It is not just about the success of campaigns or the sales, ﬁgures, it is about the brand living in the minds of its customers. These were the typical me-too products which were ﬂooding the tablet and, handset market, and the likes of Lava, Karbonn and Akash were doing proﬁtable business, in the local market for affordable mobile phones and tablets, including corporate tie-ups for, government-funded programs, primary schools and colleges, all of which were a huge, market in India. Nelson, R. (2011), “Economic development as an evolutionary process”. As per industry, experts, this product category was expected to maintain such elevated levels of growth in, the coming years, and an International Data Corporation (IDC) report in 2012 on the Indian, smartphone market reported that Samsung maintained its leadership spot with about 33, per cent in terms of market share. 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. Consumer Electronics: Apart from mobile handsets, the company also has variety in consumer goods like sound systems, power banks, LED TV and Air conditioners. He had to ﬁnd a way to make the marketing strategy speak for itself. you may also see Plan Templates. Access scientific knowledge from anywhere. Business, peaked in 2007, with sales of over 250,000 devices. including Samsung, Apple, Lenovo and Sony; homegrown competitors like Karbonn and Lava; and Chinese entrants like Xiaomi and Huawei. Perhaps, Joydeep was staring at marketing strategy innovation. As of now, the brand provides more than 60 models with different and exclusive features. Gu, S., Adeoti, J., Castro, A., Orozco, J. and Sinh, B. Having a marketing strategy presentation is essential for any business, large or small. Exhibit 10. As a result, a global content marketing education and training organization was founded by Joe Pulizzi (2012), accompanied by a website, namely Content Marketing Institute (CMI). Supplementary Materials comparison in features). Micromax is not content with a number two position, and in this business it does, not take long to sink to number 10 if one is not careful, Joy. These theories would provide further insight into how a company can gain, competitiveness in emerging markets such as India, Russia and Brazil. According to Seal, once again, at the CMO Summit in 2010, “The greatest challenge in, India, was – creating a brand in a cluttered environment”. Canvas was the Success Series of this Brand. In a business context, ﬂexible, and inclusive approach to problem solving and innovation”, says Professor, Jaideep Prabhu, of Cambridge University’s Judge Business School. performance in the marketing strategy of Micromax Informatics Ltd. As Joydeep shared, Micromax had 340 super-distributors across India working on this, business model. an interview with the case author. CUS TOMERSCurrently Micromax is dominating the rural market.Initially the marketing strategy of Micromax was totarget rural market. Rahul, had commented that, as there was no debt on the balance sheet, they could afford to put, more money into overseas expansion. responded to this by launching new models quickly at lower price with a quick turnaround. taxi drivers and delivery boys. Price should not be driving his, customers to retail stores after this advertisement; rather, a change in brand perception, mobile phone, so that anyone who could not afford an Apple or Samsung smartphone did. Here students will take up opposing stands – one supporting the existing, philosophy, while the second school of thought will propose a more structured and decisive, market expansion policies used by multinational companies. Case overview Visa did it years ago with Richard Gere, but that campaign ran not only in India but, also across the Asia Paciﬁc market. build and sell the whole thing themselves and sell it for 40 per cent less than the Nokia 32. This is how Canvas range of, mobiles was born in 2013, with the sign-up of a brand ambassador at a huge cost to the, company but not to the consumer. Seal, in the CMO Pitch Summit 2010, identiﬁed effective segmentation for this product. This discussion helps to build the background for devising the strategies, required for coping with marketplace challenges in the face of tough internal and external, competition. Mr Dubey was entrusted with the task of creating a market for the product and successfully sell it in the Indian market. Joydeep Pal as the CMO, chief marketing ofﬁcer. International Marketing, Marketing Strategy. It adopts the theoretical lenses of the sectoral system literature to discuss how the interplay of the supply and the demand side affects firm boundaries. Case overview Here the instructor has to focus on the unique marketing, philosophy at work, bereft of a deﬁned structure or process or budget, prevalent in global, companies. This does seem workable to you, does it not? And an expanding global presence, Exhibit 9. 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. Joydeep reﬂected on the. Teaching Notes are available for educators only. – Teaching Notes are available for educators only. February 2010: Rs 4,999. economic development, from the role of domestic capabilities of firms, to the differences existing across sectors, to the measurement of catch-up, to the effects of IPR , and so on. Here is the Micromax SWOT analysis. This was a unique strategy considering the fact that most companies start with the urban market before penetrating the rural markets. A video, clipping of the advertisement may be used by the instructor at this point to highlight the, brand identity viewpoint. strategy had been to identify the target group and then customize the product around them. The company provides wide range of products with different features like 30-days battery backup, Dual SIM, QWERTY keypads etc. As a consequence, knowledge integration capabilities have increasingly become core competences for firms competing on world markets. Just like model-based sourcing followed by, Micromax right in the beginning, distributor as stakeholder was a highly innovative concept, with demand-side focus enhancing the affordability, quality and sustainability of their, experiment continually and creatively engage people who are typically left out of 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. Innovative technology is not always, the answer to beating tough market competition. With over 14 years of experience in, international business and planning and the information technology sector, Vikas played a, crucial role in garnering and accelerating the business dynamics of Micromax. technology integrating the smartphone, tablet, TV and a PC experience into one gadget. The research presented here is part of a larger program of studies concerned with the examination of various aspects of the phenomenon of catch-up in, Subject area Micromax products have been widely accepted by rural India mainly due to lower cost, though the penetration in urban India is comparatively low against the giants like Sony, Samsung etc. Micromax seemed to have mastered this art of frugal manufacturing and, marketing for the Indian market (Source: An article published by, The same year, the mobile revolution took over in India. For the emerging markets, it was important to optimize the. keep prices low and salability high in the new markets. Tushman, M. and Anderson (1986), “Technological discontinuities and organizational environments”, Viotti, E. (2002), “National learning systems: a new approach on technological change in late. Share this ebook: Introduction “ it is typically very focused ” up and the quality products. 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