This presentation analyses the prospects of Micromax in television market.

1. PROSPECTS OF MICROMAX
TELEVISIONS IN RAJASTHAN

3. Micromax Informatics Limited
O Micromax is an Indian consumer
Electronics Company located in
Gurgaon, Haryana, India which focuses
on the manufacturing of mobile
telephones, tablets, data cards and LED
televisions.
O It has 23 domestic offices across the
country and international offices in
Hong Kong and Dubai. Presently, the
company has about 1900 employees.

4. O In 1991, Micromax focused on reselling and
distribution of hardware equipments and as
an IT software company in the year 2000
working on embedded platforms.
O After being a distributor for hardware
equipments, in 2008, it entered mobile
handset business.
O By 2010 it became one of the largest
Indian domestic mobile handsets company
by offering unique affordable innovations.

5. O The company has a 24% market share in
the smartphone segment in India as per the
report for April 2013.
O It claims to be the top tablet maker in
India, and the 12th largest handset
manufacturer in the world.
O Micromax is currently dominating the
tablet space in India with 18.4 percent
market share, followed by Samsung with
13.3 percent for the three months to June,
according to CyberMedia Research.

6. TELEVISION MARKET IN INDIA
O Television is one of the major mass
media of India and is a huge industry
and has thousands of programs in all the
states of India.
O Today India boasts of being the third
largest television market in the world.
O Approximately half of all Indian
households own a television.

7. O Further, Price (15%), Personal research (28%) and
consumer ratings (14%) are also considered to be
the major factors taken into consideration by the
consumers while buying the products.
O Among CRT, LCD and other varieties of TVs the
clear choice of the Indian consumer is CRT TVs
which literally dominate the market with almost
90% of the market share. But with changing
tastes and increase in paying capacity there is a
constant increase in the share of the LCD
televisions which has become the first choice of
those who can afford.

8. O LCD Television market share is around 6.6% of
the total CTV market.
O Due to sleeker and better picture quality
models in the television market, demand for
LEDs (Light Emitting Diode)and LCDs (Liquid
Crystal Display) has grown tremendously.
O Also, lesser power consumption and advanced
features have been other factors behind the
surge in demand for LEDs and LCDs.
O Although the demand for CRT televisions is
declining, still it is expected that the demand
from lower income groups and the rural areas
will drive these market for a next few years.

9. FOUR SUB-GROUPS OF THE
MARKET
O The television market has been divided
into four groups namely:
1. The Upgraders
2. The First-time buyers
3. Multiple-set buyers
4. Replacement purchasers

10. The Upgraders
O Upgraders segment comprise of those
buyers who have upgraded from black and
white televisions to Colour televisions.
O Primary reason behind upgradation is cable
and satellite boom and increasing coverage
of major sports and other events.
O This segment shows a distinct preference
for multi brand outlets to compare brands
and gather unbiased information.

11. The first-time buyers
O This segment constitutes of buyers who
are buying a Colour Television for the
first time.
O Brand loyalty is not very high but focus
is towards the brand offering the
latest and consumer friendly
technology.
O Price also plays a major role in decision
making.

12. Multiple-set buyers
O This segment represents people buying
more than one set.
O Main consumers are joint families with
the need to own personnel television
sets.
O Price is the most important purchasing
factor combined with lookout for a high
tech product.

13. Replacement purchasers
O This segment usually trades in old CTV’s
for new ones.
O It forms around 12% of the market and
holds immense potential for the future.
O With increasing disposable incomes and
the introduction of new models and
declining prices, replacement demand
has surged over the years.

14. COMPETITION IN THE
TELEVISION MARKET
O Major players in the overall television
market are Samsung, LG, Sony and
Videocon.
O Samsung and LG are reported to have
the largest share of 25% each followed
by Videocon (22%) and Onida (11%).
O But in the context of LEDs and
LCDs, Sony has been a tough competitor
to both the leaders.

15. MICROMAX ENTERING TV
MARKET
O In October 2012, Micromax entered the
television market with the launch of LED
TV in nine states like
Delhi, Haryana, Maharashtra, Karnataka
and Rajasthan across the 24-inch to 55-
inch range.
O The price of the televisions stands between
Rs. 15,990 and Rs. 1,29,990.
O The company entered the market with the
aim of selling 1 lakh units in the first year
and 8% share in LED market.

16. O Also, it is aiming to grow overall
revenues to Rs 2,800 crore for year
ending March 2013
O Micromax has set up a one-lakh square
feet manufacturing facility spread over
5 acres at Rudrapur in Uttrakhand. It
has a production capacity of 2,000 LED
TV units per day.

17. Price Comparison
Micromax Samsung Sony
20” LED 9000 - -
24” LED 12000 16000 17200
32” LED 20000 28000 30000
42” LED 40000 60000 60000

18. ANALYSIS
O According to the industry experts, with the
entry of Micromax in the television sector,
the sector is likely to become more
competitive.
O This is because Micromax has a reputation
of flooding the market with devices in each
possible budget category.
O Some analysts disapprove the entry of
Micromax in the television market because
it is believed that the market is at
saturation stage.

19. Why Micromax Will Succeed?
O Prices lower than its competitors.
O Well-established distribution network.
O Ever-growing demand for LEDs.
O Replacement buyers augmenting.
O Good-quality products.
O Brand Image.
O Manufacturing factory situated in
India.

20. CONCLUSION
OMicromax’s foray into
the television
industry will succeed
because it has wide
scope of expanding in
the market.

21. THANK YOU! 