Marketing

Presentation
Group V
Aditya Gupta
Rashi Dalmia
Shreyas Meher

Presentation Timeline

Introduction

Background

Major Players
& Market Share

Strategies
Adopted

Emerging
Trends

The Future

Introduction

Government Regulations
Industry
Factors for high growth
Smartphones

The Mobile
Industry

Government Regulations
1.Till1984, telecom services were under the
state governemnt control with the
Department of Posts and Telegraph.
2.In 1985, the Depertmentof
Telecommunication was set up and
3.In 1994 the National Telecom Policy was set
up Liberalisation was allowed, foreign
firms were eligible to 49% of the total
stake,
4.The market did not increase much until
1997 why?
5.Telecom Regulatory Authority of India

Industry Reasons for High

Growth
1.Highly competitive - The HerfindahlHirschman Index of 2000 - availability of
more affordable handsets, including
smartphones, and significantly lower call
rates
2.Growing income of middle class families
3.Low rate of mobile connection plans
4.Technological advancement
5.India offers a demographic profile that few
countries can match.

The domestic demand for handsets is expected to touch 350 million units
per year by 2020

Cellular Operators Association of India forecasts the handset

market will reach 1.24 billion one mobile phone for every
person living in the country within 2015.

Smartphones
India is among the fastest growing smartphone
markets in the world, being the 3rd largest in the
world. This trend is evident by the massive influx
of handsets into the country, 22 million
Smartphones were shipped in India in Q4 2014
alone.
The number of devices launched in India during
the first half of 2015 stood at 857 and an
estimated 1,700+ devices will be launched before
the end of the year.

Smartphones penetration in
India's mass market has
accelerated from 2.5 million
handsets in 2009 to about 27
million in 2014 and is

In 2012 they accounted for 10-12

per cent of the total handset
market. This share is expected to
rise to half of the markets total
expected sales of 156 million
units by 2017.

Rural buyers
1. Increase in procurement price by Govt
2. Increase in agri employment boosted by good
harvests and governemnt plans like National Rural
Employment Guarantee Scheme (NREGS) that
guarantes 100 days of emplyment to one
memeber of every rural househols and raised
wages

Why is India the next

frontier?

India is currently the second-largest

telecommunication market and has the third highest

number of internet users in the world

Strong Adoption

Large
Investments into
the country

Government
backing

Samsung is a South Korean multinational conglomerate headquartered

in Samsung Town, Seoul.
Diversified into areas including food processing, textiles, insurance,
securities and retail
Highly globalized in electronics, particularly mobile phones and semi
conductors.
Highest market share in India 22% (IDC)
Outright market leader in India
High volume support from sub 15,000 rupee phones such as Galaxy
Star Pro, Galaxy S Duos, etc.
Aggregate revenue of INR 7,891 crores in 2012

Indian consumer electronics company headquartered in Gurgaon,

Haryana
Established in 2000, as an IT software company
Entered the mobile handset business in 2010.
Market share is 2nd 18% (IDC)
As of Q3, 2014 Micromax is the tenth largest smartphone vendor in
the world
Most competes in the lower-middle tier of smartphones, with a low
share in feature phones
Total revenue INR 2,289 crores in 2011
In 2014, they created a spinoff venture named YU Televentures

Intex Technologies was incepted in the year 1996, and is an Indian

smartphones brand
Present in a lot of consumer electronics products, and IT accessories
Is currently at number 3, in relation to market share of smartphones
(8%)
Intensive marketing efforts, along with a focus on lower end mobile
phones

Lava International Ltd. Is an Indian mobile handset company

In 2012, they created a spinoff called XOLO along with Intel
They also entered the tablet business in 2012
Only Indian brand to make phones for both Windows Phone as well as
Android
Heavy marketing spend, along with having a good amount of visibility
among its distributors
Market Share of 7%

Xiaomi is a Chinese company which entered India in early 2014

Known for their value for money products, and good quality
It is the largest mobile phone vendor in China
Entered the Indian market in July 2014 and sells via Flipkart, Amazon,
and Snapdeal
Case Study
Market Share 4% of the smartphone market share

Nokia is a Finnish multinational communications company

Annual revenues of around 12.73 billion
Nokia was dominant in the mobile market before the advent of Apples
iPhone, which shook the market apart
In 2011, they made a pact with Microsoft to exclusively make Windows
Phone devices

How did Xiaomi succeed?

High quality products
Innovative products
Ecosystem development
Great relation with the Customer
Innovative Marketing methods
Fast Iteration cycles & Lean manufacturing

High Quality Products

Xiaomi products are known for their value proposition
Products having a relatively low cost, but offering high levels of
quality
Decent profit margin, even with low prices
Similar to the Kindle model, created by Amazon

Innovative Products
Constant lowering of costs so as to further enhance their
accessibility
Development of MiUI, which is their version of Android
Extremely intuitive features for various age groups

Ecosystem Development

Great relationship with the

customer
Removed barriers between employees and customers via the
creation of forums
Direct communication possible
Social activities both online and offline led to creation of fans
Also led to a fast iteration cycle, based on actual usual feedback

Innovative Marketing Methods

No actual marketing budget
Exclusive marketing through various social media platforms
Decrease in overall costs, as marketing costs are getting bigger
and bigger
Use of Hunger marketing
Use of accessory sales to make the actual profits (Amazon)

Fast Iteration and Lean

Manufacturing
Xiaomi follow a very fast iteration period, where customer reaction
and responses inform them on the needs and wants of the
customer base.
Xiaomi also follows the Just in Time method of production, where
they only produce as needed, and production is more often than
not based on last weeks sales and demand.
This helps them save on inventory costs, and also prevents
stocking up of unsold units.

Thank You!