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1. Marketing Smart Phones in Rural India Group 3

2. Market overview Existing products Low cost phones Rugged phones Phones with Extra features Need Identification Latent Needs Leveraging Existing Players Use of Services Use of Technology

3. Entry of Desi Players MicroMax is no more Micro

4. Success of Desi Mobiles Consumers want more and more features at as low price points as possible. The Desicompany offers customers the same features and quality that they get in global brands at an affordable price range of Rs. 1,700 to Rs. 6,500.

5. Strengths o Low cost—about 30 per cent cheaper than MNC equivalents. o High on features, some of them better than global models. o Will offer latest features like 3G, Android at a fraction of MNC costs. Weaknesses o Quality, design often not up to the mark, use primitive software. o Servicing could be an issue, most companies are primarily importers. o Government rules on components, materials could erode price advantage.

7. PHONY JOURNEY 30‐DAY BATTERY PHONES April 2008: Rs 2,249; Now: Rs 1,999 The X1i,Micromaxs first phone, had a battery that could give 17 hours of talk time and go 30 days on a single charge. DUAL‐SIM PHONES July 2008: Rs 1,999‐12,999 For those who want two numbers but one handset PHONE‐CUM‐REMOTE May 2010: Rs 2,999 A mobile that can switch TV channels and even change the AC temperature PHONE‐CUM‐STEREO Feb 2010: Rs 4,999 With 3D surround sound, fed by Yamaha and Wolfson BLING Feb 2010: Rs 5,500 A big hit with women, comes with Swarovski embellishments.

8. Entry to the Rural Market Wide range of products at attractive price points. Deeply penetrated distribution set-up Wide range of devices, with attractive features at competitive prices Strong marketing and branding initiatives

9. Business Model Research and innovation teams that provide India-centric design specifications to contract manufacturers in neighboring countries of China, Taiwan etc. These phones are shipped to India which are then routed through the domestic distribution channel for sale in the domestic market. Time-to-marketfrom design-to-production-to-end market is critical in this sector as such players have set-up three-layered distribution system that includes regional distributors to support micro-distributors that in turn service the retail outlets. The success is largely attributable to the price-elasticity of demand prevalent in the Indian market. Provide phones loaded with various features at an affordable price.

10. Use of Pull Strategy Identify Latent Needs Solution Creation Solution Marketing Creation of Awareness Need Recognition Market Pull

11. STP & Marketing Mix Solution (Product combined with Services) Features Services Alternate uses Place Place of Gathering Co operative Societies Agri Clinics Price Range of Prices Promotion Credible Medium Effective carriers (local community, Regional star)

12. Product Manufacturing Technology Services Service package Feel Local Language Integration

13. Innovation-ideas that could be adopted Airtel has also launched a GPS-based unveiled ship Locating services in order to enable tracking of fishing vessels.

14. Distribution Channels Total solution centers (Help centers) Pull startegy Solution Agent (Persons from Local community) Government Organizations NGOs Co operative societies

17. NGOs

18. Co operative societiesLOCAL ICON AS BRAND AMBASSADOR

20. Thank you