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Rahul Kumar
CUJ/I/2012/MBA/27
VITH Semester
“A Study on Mobile Handset Industry”
India’s Handset industry
The situation has changed over the past few years with the entry of more global brands
and the emergence of home grown manufacturers in the handset market. Wider
availability of more affordable handsets, including smartphones, and significantly lower
call rates has catalysed growth in the market, most notably in rural areas. Competition
within the crowded market is intense with more than 50 device manufacturers now
selling their products. Most of these companies focus on low cost feature phones.
According to International Data Corporation (IDC),
India is the fastest growing market in Asia/Pacific
with a quarter-on-quarter growth of 27% in Q3 2014
(July – September). The market observed exceptional
growth owing to festive demand and recorded a new
high in smartphone shipments in Q3 2014. As a
result, the India smartphone market outshone other
emerging markets in the Asia/Pacific region in terms
of quarter-over-quarter growth.The overall mobile
phone market stood at 72.5 million units in Q3 2014,
which is a 15% quarter-on-quarter growth and a
9%year-on-year growth.
INTRODUCTION
• To know the attractiveness of the industry with the help of Porter’s
five forces model.
• To understand the key drivers leading to growth of the industry.
• To know the current position of different players in mobile handset
industry.
• To know the internal and external business environment of Micromax
and Samsung
• To understand the marketing strategy w.r.t Samsung and Micromax
Objective of the study
RESEARCH METHODOLOGY
The research is secondary in nature. For the purpose of the study, relevant
information has been collected through books, articles, websites and annual
reports of the company under study.
LIMITATIONS OF THE STUDY:-
As the study is based on secondary data, the inherent limitation of the
secondary data would have affected the study.
The figures in market analysis are likely to be a least several months out of
date, and so might not give a proper indication of the company’s current
position.
This study need to be interpreted carefully. They can provide clues to the
company’s performance or financial situation. But on their own, they cannot
show whether performance is good or bad. It requires some quantitative
information for an informed analysis to be made.
PORTERS FIVE FORCES MODEL
• Threats of new entrants :- Low
High start-up-cost as well as high technological investment cost needed to compete
and attain economies of scale. Difficult to enter the market with existing firms
operating on cost and differentiation strategy.
• Bargaining power of supplier :- Medium
Rely on key suppliers of required raw materials and open sourcing of different OS.
• Bargaining power of buyers :- Medium
Wide variety of phones , major brands and higher prices for latest phones.
• Threats of substitute :- Low
Mutifunctionality of smartphones .
• Competitive rivalry :- High
Major brands dominating the market so competitors find hard to compete and gain
economies of scale & market share.
KEY DRIVERS FOR THE HANDSET SEGMENT
• Increasing level of disposable income and education
• Potential large rural market
• Rise of smartphones
• Value added services
Key players in mobile handset industry
• Micromax
• Samsung
• Nokia (Microsoft)
• Lava
• Karbonn
• Xiaomi
• Motorola
• Sony
Market analysis
micromax
22%
samsung
20%
karbon
9%
lava
7%
motorola
7%
xioami
4%
others
31%
Market share of different players smartphone
market Q4 2014
Source:- The Economic Times
samsung
16%
micromax
14%
nokia
11%
lava
10%
karbonn
8%
others
41%
Overall market share of different players in
mobile phones Q3 2014
Source:- International Data Corporation (IDC)
• There is an increasing demand for more trendy and easy-to-use products. As
people in India are generally very price sensitive so they are always looking for
value for money products (i.e. higher the benefits and lower the cost so that
total value will be more).
• Price is the dominant factor affecting the consumer decision to buy mobile
phone. Secondly, the features incorporated in a mobile phone handset are also
the most important factor which is considered by the consumers while
purchasing the mobile phone. However, all features of mobile phones are not
equally important.
• The other factors equally correlated and have moderate relationships with the
decision to buy are brand name and durability of mobile phones. Both the
factors are highly associated with the quality of mobile phone devices.
• The least correlated factors are after sales service and social influences.
Providing better after sales service to customers also make them delighted.
Customer analysis:-
SWOT ANALYSIS OF MICROMAX
STRENGTH
• Innovative products and features
• Low cost of production
• Effective promotion campaigns
WEAKNESS
• Weak brand image in urban areas-
• Perception of low-quality Chinese brand
OPPORTUNITY
• Increase penetration in urban market
• Entry into international markets
THREATS
• Increasing competition from local and
international players
• Rapid technological change.
SWOT ANALYSIS OF SAMSUNG
STRENGTH
• Innovation and design
• Brand name
• Low production costs
WEAKNESS
• Too low profit margin
• Lack in its own OS and software.
• Focus on too many products
OPPORTUNITY
• Growing India’s smartphone market
• Potential large rural market
THREATS
• Competition from rivalry
• Rapid technological change
• Price wars.
• GEOGRAPHIC:- Rural And Urban
Areas
• DEMOGRAPHIC :- Income,
Occupation & Age
SEGMENTATION
• Rural people, Youth , Low Income
Groups
TARGETING
• Offering value for money products
POSITIONING
• GEOGRAPHIC:- Rural And Urban
Areas
• DEMOGRAPHIC :- Income,
Occupation & Age
SEGMENTATION
• Youth , middle class and high class
TARGETING
• Innovative as well as user friendly
products.
POSITIONING
MICROMAX
SAMSUNG
PERCEPTUAL MAP
STRATEGIC BRANDING OF MICROMAX
• MICROMAX uses umbrella branding as they are selling their product with the
brand name of Micromax. They are also having sub brands like Canvas for the
Canvas series, BOLT for Bolt series.
• Micromax using penetration pricing strategy which giving the company a
competitive edge.
• Micromax has recently signed Hugh Jackman as their brand ambassador.
• LOGO :-
• USP:- Moderate/variety of function at low prices.
• Slogan:-The slogan of Micromax is “Nothing like anything”
• Website: - http://www.micromaxinfo.com
• EVENTS: - In 2012, Micromax has bagged the title sponsorship for Asia Cup
cricket tournament for the second consecutive year (Micromax Asia Cup 2012.)
STRATEGIC BRANDING OF SAMSUNG
• Samsung uses umbrella branding as they are selling their product with the brand
name of Samsung. They have also introduced some products with their sub-brands as
Samsung Galaxy for the galaxy series, Samsung Guru for the guru series phones.
• Samsung uses different types of pricing strategy. Firstly, Penetration Strategy,
Secondly, they uses Odd Pricing Strategy. Lastly, Skimming Strategy.
• To promote the brand, Samsung signed celebrities like Amir Khan and Priyanka
Chopra as its brand ambassador.
• Events:- Samsung has agreed to extend its sponsorship of the Olympics Games until
2020, when Tokyo will host the Games. Since 1988, Samsung is in association with
the Olympics.
• Slogan:- “inspire the World , create the future”.
• Logo:-
• Website:- http://www.samsung.com
• USP:- Innovation, user friendly products
1958. 1979-1993 1993
• Samsung is still the market leader in Indian mobile handset industry till the 3rd
quarter with the market share of 16%. Micromax with the market share of 14%
spotted 2nd position.
• Micromax surpassed Samsung to become the leading supplier in India's
booming smartphone market for the first time in the fourth quarter with the
market share of 22%. Samsung's market share fell by 2% to 20% and spotted
2nd position.
• Instead, Micromax is giving a tough competition to Samsung in the handset
industry but still they were not able to establish themselves as a global player in
the industry.
Since the company is going through the growth stage, they can work on
their new product features, can increase its distribution channel, enters into new
segments so that they can maintain their growth stage in the upcoming future
also.
• Samsung should focus on their Research & Development, so that the cost of
production can be lower down and sell at much cheaper price.
 FINDINGS AND SUGGESTION
Devices. C.R.Kothari. (2004). research methodology(second revised edition. new age
international (P) limited.
Armstrong, P. K. (2010). Principles Of Marketing 13th Edition. Pearson, USA.
Micromax overtakes Samsung in India smartphone market Canalys research. (2015,
march). Retrieved from Reuters: http://in.reuters.com/article/2015/02/04/micromax-
india-sales-samsung-idINKBN0L808M20150204
Samsung loses pole position in India smartphone market to Micromax:Canalys. (2015,
march).Retrieved from The Economic times
http://articles.economictimes.indiatimes.com/2015-02-04/news/58795772_1_market-
share-micromax-fourth-quarter
www.idc.com
www.samsung.com
www.micromaxinfo.com
www.google.com
www.scribd.com
BIBLIOGRAPHY
Samsung & Micromax -comparative Marketing analysis of Mobile handset industry

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Samsung & Micromax -comparative Marketing analysis of Mobile handset industry

  • 1. Rahul Kumar CUJ/I/2012/MBA/27 VITH Semester “A Study on Mobile Handset Industry”
  • 2. India’s Handset industry The situation has changed over the past few years with the entry of more global brands and the emergence of home grown manufacturers in the handset market. Wider availability of more affordable handsets, including smartphones, and significantly lower call rates has catalysed growth in the market, most notably in rural areas. Competition within the crowded market is intense with more than 50 device manufacturers now selling their products. Most of these companies focus on low cost feature phones. According to International Data Corporation (IDC), India is the fastest growing market in Asia/Pacific with a quarter-on-quarter growth of 27% in Q3 2014 (July – September). The market observed exceptional growth owing to festive demand and recorded a new high in smartphone shipments in Q3 2014. As a result, the India smartphone market outshone other emerging markets in the Asia/Pacific region in terms of quarter-over-quarter growth.The overall mobile phone market stood at 72.5 million units in Q3 2014, which is a 15% quarter-on-quarter growth and a 9%year-on-year growth. INTRODUCTION
  • 3. • To know the attractiveness of the industry with the help of Porter’s five forces model. • To understand the key drivers leading to growth of the industry. • To know the current position of different players in mobile handset industry. • To know the internal and external business environment of Micromax and Samsung • To understand the marketing strategy w.r.t Samsung and Micromax Objective of the study
  • 4. RESEARCH METHODOLOGY The research is secondary in nature. For the purpose of the study, relevant information has been collected through books, articles, websites and annual reports of the company under study. LIMITATIONS OF THE STUDY:- As the study is based on secondary data, the inherent limitation of the secondary data would have affected the study. The figures in market analysis are likely to be a least several months out of date, and so might not give a proper indication of the company’s current position. This study need to be interpreted carefully. They can provide clues to the company’s performance or financial situation. But on their own, they cannot show whether performance is good or bad. It requires some quantitative information for an informed analysis to be made.
  • 5. PORTERS FIVE FORCES MODEL • Threats of new entrants :- Low High start-up-cost as well as high technological investment cost needed to compete and attain economies of scale. Difficult to enter the market with existing firms operating on cost and differentiation strategy. • Bargaining power of supplier :- Medium Rely on key suppliers of required raw materials and open sourcing of different OS. • Bargaining power of buyers :- Medium Wide variety of phones , major brands and higher prices for latest phones. • Threats of substitute :- Low Mutifunctionality of smartphones . • Competitive rivalry :- High Major brands dominating the market so competitors find hard to compete and gain economies of scale & market share. KEY DRIVERS FOR THE HANDSET SEGMENT • Increasing level of disposable income and education • Potential large rural market • Rise of smartphones • Value added services
  • 6. Key players in mobile handset industry • Micromax • Samsung • Nokia (Microsoft) • Lava • Karbonn • Xiaomi • Motorola • Sony Market analysis micromax 22% samsung 20% karbon 9% lava 7% motorola 7% xioami 4% others 31% Market share of different players smartphone market Q4 2014 Source:- The Economic Times samsung 16% micromax 14% nokia 11% lava 10% karbonn 8% others 41% Overall market share of different players in mobile phones Q3 2014 Source:- International Data Corporation (IDC)
  • 7. • There is an increasing demand for more trendy and easy-to-use products. As people in India are generally very price sensitive so they are always looking for value for money products (i.e. higher the benefits and lower the cost so that total value will be more). • Price is the dominant factor affecting the consumer decision to buy mobile phone. Secondly, the features incorporated in a mobile phone handset are also the most important factor which is considered by the consumers while purchasing the mobile phone. However, all features of mobile phones are not equally important. • The other factors equally correlated and have moderate relationships with the decision to buy are brand name and durability of mobile phones. Both the factors are highly associated with the quality of mobile phone devices. • The least correlated factors are after sales service and social influences. Providing better after sales service to customers also make them delighted. Customer analysis:-
  • 8. SWOT ANALYSIS OF MICROMAX STRENGTH • Innovative products and features • Low cost of production • Effective promotion campaigns WEAKNESS • Weak brand image in urban areas- • Perception of low-quality Chinese brand OPPORTUNITY • Increase penetration in urban market • Entry into international markets THREATS • Increasing competition from local and international players • Rapid technological change. SWOT ANALYSIS OF SAMSUNG STRENGTH • Innovation and design • Brand name • Low production costs WEAKNESS • Too low profit margin • Lack in its own OS and software. • Focus on too many products OPPORTUNITY • Growing India’s smartphone market • Potential large rural market THREATS • Competition from rivalry • Rapid technological change • Price wars.
  • 9. • GEOGRAPHIC:- Rural And Urban Areas • DEMOGRAPHIC :- Income, Occupation & Age SEGMENTATION • Rural people, Youth , Low Income Groups TARGETING • Offering value for money products POSITIONING • GEOGRAPHIC:- Rural And Urban Areas • DEMOGRAPHIC :- Income, Occupation & Age SEGMENTATION • Youth , middle class and high class TARGETING • Innovative as well as user friendly products. POSITIONING MICROMAX SAMSUNG PERCEPTUAL MAP
  • 10. STRATEGIC BRANDING OF MICROMAX • MICROMAX uses umbrella branding as they are selling their product with the brand name of Micromax. They are also having sub brands like Canvas for the Canvas series, BOLT for Bolt series. • Micromax using penetration pricing strategy which giving the company a competitive edge. • Micromax has recently signed Hugh Jackman as their brand ambassador. • LOGO :- • USP:- Moderate/variety of function at low prices. • Slogan:-The slogan of Micromax is “Nothing like anything” • Website: - http://www.micromaxinfo.com • EVENTS: - In 2012, Micromax has bagged the title sponsorship for Asia Cup cricket tournament for the second consecutive year (Micromax Asia Cup 2012.)
  • 11. STRATEGIC BRANDING OF SAMSUNG • Samsung uses umbrella branding as they are selling their product with the brand name of Samsung. They have also introduced some products with their sub-brands as Samsung Galaxy for the galaxy series, Samsung Guru for the guru series phones. • Samsung uses different types of pricing strategy. Firstly, Penetration Strategy, Secondly, they uses Odd Pricing Strategy. Lastly, Skimming Strategy. • To promote the brand, Samsung signed celebrities like Amir Khan and Priyanka Chopra as its brand ambassador. • Events:- Samsung has agreed to extend its sponsorship of the Olympics Games until 2020, when Tokyo will host the Games. Since 1988, Samsung is in association with the Olympics. • Slogan:- “inspire the World , create the future”. • Logo:- • Website:- http://www.samsung.com • USP:- Innovation, user friendly products 1958. 1979-1993 1993
  • 12. • Samsung is still the market leader in Indian mobile handset industry till the 3rd quarter with the market share of 16%. Micromax with the market share of 14% spotted 2nd position. • Micromax surpassed Samsung to become the leading supplier in India's booming smartphone market for the first time in the fourth quarter with the market share of 22%. Samsung's market share fell by 2% to 20% and spotted 2nd position. • Instead, Micromax is giving a tough competition to Samsung in the handset industry but still they were not able to establish themselves as a global player in the industry. Since the company is going through the growth stage, they can work on their new product features, can increase its distribution channel, enters into new segments so that they can maintain their growth stage in the upcoming future also. • Samsung should focus on their Research & Development, so that the cost of production can be lower down and sell at much cheaper price.  FINDINGS AND SUGGESTION
  • 13. Devices. C.R.Kothari. (2004). research methodology(second revised edition. new age international (P) limited. Armstrong, P. K. (2010). Principles Of Marketing 13th Edition. Pearson, USA. Micromax overtakes Samsung in India smartphone market Canalys research. (2015, march). Retrieved from Reuters: http://in.reuters.com/article/2015/02/04/micromax- india-sales-samsung-idINKBN0L808M20150204 Samsung loses pole position in India smartphone market to Micromax:Canalys. (2015, march).Retrieved from The Economic times http://articles.economictimes.indiatimes.com/2015-02-04/news/58795772_1_market- share-micromax-fourth-quarter www.idc.com www.samsung.com www.micromaxinfo.com www.google.com www.scribd.com BIBLIOGRAPHY