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WOT Analysis of Micromax Mobiles with USP, Competition, STP (Segmentation,

Targeting, Positioning) - Marketing Analysis

Micromax Mobiles

Parent Company Micromax Mobiles

Category Mobile phone Handsets

Sector Telecommunication

Tagline/ Slogan Nothing like anything

USP Moderate functions at low price

 STP

Segment Low-Medium range Basic Phones market

Target Group Low income consumers, Tier-2 cities, Villages

Replacing the Biggies like Nokia, Samsung from the low end
Positioning phones market. As a second phone

SWOT

1.Provide simple functions at much lower costs e.g.- Loud

speakers, wireless FM, ultra long lasting battery life
2.Regional languages support, Indian calendars, Torch
3.Most phones are dual SIM/Triple SIM phones
4.Due to Java support a lot of basic applications can be run

Strengths 5. Celebrity brand ambassadors have helped the brand grow

1.Limited market share due to intense competition and less global

presence
2.User interface for not so tech-savvy consumers compared to
Weaknesses Apple

1.Low-end phones market has become very competitive

2. Cut-throat competition has made Dual-SIM phones being
available
3.Can be used as simple second phones as well as cheaper smart
Opportunities phones

1.Threat from low price well known brands

Threats 2.Other lower end phones brands

Competition

Competitors 1.Nokia Low-end Dual SIM phones

 2.Lava phones
3.Samsung Guru Series
4.Maxx mobiles
5.Lemon mobiles

http://www.marketing91.com/swot-analysis-of-micromax/

Strengths in the SWOT analysis of Micromax

1. Economical Handset provider: After starting its operations in 2008, within

3 years of time it became the 3 rd largest Handset manufacturer in India.
Initially it focused on rural market but over the period of time it became
leader in economical (Value for money) handsets in smartphones also.

2. Local market knowledge: After successfully excelling in rural markets

continuously for three years, Micromax has gained enough experience to
focus completely towards the urban market in their current and future
strategies. Due to this change in focus and the increased customer base,
Micromax has seen success in the last 2 years.

3. Word Of mouth: Micromax understood that if they have to be in the game

then they have to target the rural market which consists of 60% of the Indias
population, & due to this strategy they created word of mouth which later on
was capitalized when they introduced their breakthrough model Canvas.

4. Celebrity endorsement: Micromax has sponsored many events like that of

cricket & football. Also its celebritys endorsements got bigger when it signed
Hollywood actor Hugh Jackman as its brand ambassador. Akshay kumar &
Twinkle Khanna (Micromax Bling) were the companys brand ambassador. The
reason for the change was that during research they found out that Micromax
has been perceived as a brand falling between High end smartphone &
feature phone. Thus, In July 2013, Chitrangada Singh posed for Canvas 4
smartphone in New Delhi. However, Micromax has used brand ambassadors
scarcely, continuing with its Value for money strategy by avoiding over
expenses.

5. Extensive distribution: Micromax made its products available through

distributors & resellers far and wide across the country and also exported it to
many countries. The advantage was that it gained many customers due to its
strong distribution channel. It also tied up with E-commerce companies as
exclusive partners.
 6. First mover advantage Micromax was one of the first phones in the
market to concentrate on penetrating the smartphone market. Samsung was
the clear leader when Micromax entered and Micromax penetrated the
market with superb phones are very low cost. Thus, later on when other
mobile brands with the same strategy entered, Micromax was a brand by that
time.

Weaknesses in the SWOT analysis of Micromax

1. Limited global presence: Micromax have operation only in SAARC

countries which is restricting their growth. Recently they have planned to
enter European Union.

2. Not preferred by Tech-Savvy people: Although Micromax is successful in

emerging as 3rd largest handset player but they are not able to create trust
among the tech-savvy users about the handset quality.

3. Low price means low quality The price vs quality debate is always on in
the mind of the customer when purchasing electronic products. Because of its
low price, Micromax is several times considered as low in quality.

Opportunities in the SWOT analysis of Micromax

1. Market Expansion: Entering in developed nations like US & European

nations will be the future strategy of Micromax which will bring advanced
capabilities to even home nations & this will help Micromax in creating trust
among its users.

2. Penetrating the Urban market: Further penetration in the urban market

just like they have done in rural market will help in the growth of the
company.

3. Improving the brand perception: Working on changing the brand

positioning will help the company in changing its brand image in the urban
markets where it is perceived as a low quality mobile.

Threats in the SWOT analysis of Micromax

1. Competition from national & global players: Handset market is going

through intense transformation & all the national & international players are
leaving no stone unturned to increase their market share. Price wars & eating
up each other market share is a common scenario.

2. Dynamic tech environment: Continuously changing technological

environment can be serious threat to the Micromax. Since already established
players like Samsung, LG etc. can cope with this, it will difficult for Micromax
to handle this challenge.
 3. Replication of business model: The strategy used by Micromax is itself
commendable but lots of other Local & Chinese handset mobile makers like
Geonee, Lava etc. can imitate their business models which will have adverse
effect on existing players and Micromax will not be an exception in such a
scenario.

https://www.scribd.com/doc/242019315/MICROMAX-COMPETITIVE-STRATEGY-ROLL-
NO-55-pdf

http://www.micromaxinfo.com/

https://www.scribd.com/doc/38701173/Micromax-Mobiles

https://www.scribd.com/doc/34421330/REPORT-ON-MICROMAX