63873126 project report on retailers perception about micromaxx mobile handsets

8/11/2019 63873126 Project Report on Retailers Perception About Micromaxx Mobile Handsets

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1.6 MAJOR MILESTONES

Being the makers of software and embedded technology Micromax started

its entry into mobile hardware business by making a cell phone which has

long battery life. This product became a huge success after its launch

because people required there mobile to have a long standby time required

for their long usage.

(Table1.1)

From its inception into makers of cell phone it has now become a

renowned cell phone maker which has over a market share of (6.9)

percent after Nokia (39 per cent) and Samsung (17 per cent).

Micromax is the only company whose design lab to marketing time

is 3 months whereas most of the cell phone makers take more than 1

year to design and bring a new phone loaded with hi-tech features.

Contd....


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In 2008, when the Indian handset market was dominated by

multinational companies such as Nokia, Samsung, LG, Sony

Ericsson and Motorola, Micromax joined the party with an aim to

provide mobile users entry-level and mid-level handsets priced

between Rs 1,800 and Rs 2,400. In the initial phase of their journey,

Micromax had confined itself to small towns and rural areas, but

now, after three years of operations, it has a distribution network of

around 75,000 retailers across the country.

"Micromax has sold 7.05 million mobile handsets in the last fiscal.

The company's handset sales have grown by 132.43 per cent from

1.11 million units in the quarter ended June 30, 2010 to 2.58 million

units in the quarter ended March 31, 2011," figured out by Mr. Rahul

Sharma, executive director of Micromax.

Erratic power supply is a major problem in rural as well as urban

India, and to address this problem Micromax increased the size of

the battery to 1800 mAh, as a result of which its X1i phone lasts for

30 days on standby and that too at an affordable price of Rs 2,150.

The phone was a big success in rural India and gave the company an

initial boost.

Micromax knew that if it wants to maintain momentum andchallenge well established players such as Nokia it needs to

strengthen its distribution network because even after the success of

initial launches its brand recall value among customers wasn't great.

So the company came up with another innovation, this time

pertaining to distribution. Micromax knew that commissions given

by phone manufacturers to their channel partners are often very low,

leading to a lot of dissatisfaction. The company decided to give

around five per cent commission to each of its distribution chain

partners, which rapidly led to increase in sales .

Contd....


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After this, Micromax expanded its range of handsets in keeping with

new market demands. In 2010, it even tied up with MTV for co-

branded phones to connect with potential customers in metros.

Another way in which Micromax innovated was by launching

dual SIM and dual reception (GSM and CDMA) handsets before

Nokia did. In its latest innovation, to suit the requirements and

preferences of different consumer groups, Micromax has released

Android and touch screen handsets for less than Rs 7,000 each.

The most important thing that increases customer loyalty is its after

sales service, and to achieve this Micromax has more than 370

strategically located sales service centres in India, and also one each

in Nepal and Sri Lanka. In addition to the service centres, Micromax

also has tie ups with five third party owned, modular (component)

service centres which are exclusive to Micromax and provide a full

suite of after sales services excluding chipset and printed circuit

board (PCB) replacement.

Micromax will continue to offer a variety of commercially appealingmobile handsets with attractive aesthetics, designs and a

combination of innovative features that are easy to use, and are

suited for local requirements and preferences of different consumer

groups.

The company plans to target segments in which it is currently not

present and will grow its portfolio of CDMA and 3G products. In

the coming months Micromax plans to launch more handsets in the

Android and touch screen categories.
http://www.themobileindian.com/glossary/SIMhttp://www.themobileindian.com/glossary/CDMAhttp://www.themobileindian.com/glossary/CDMAhttp://www.themobileindian.com/glossary/SIM


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1.7 VISION AND MISSION

Micromax India's Vision entails helping people improve the

quality of their lives by providing them with superior quality, state-of-the-

art technology products at the right time and the right price. But beyond its

role as a purveyor of quality products in India, Micromax seeks to

contribute to the economic growth of the country though its export

commitments and large scale production facilities generating secured

employment for hundreds of INDIAN people. At Micromax, we strive to

contribute to the development of the electronics and components industry in

India by enhancing the knowledge levels of our workforce through the

introduction of our advanced management systems and production we want

and to be seen as the 'Most Respected' Indian Company . know-how in our

manufacturing facilities by introducing our Indian vendors to our world

class quality systems and helping them in improving them in their own

quality systems and production processes and setting benchmarks for the

industry both in terms of after sales service for our products, quality systems

and management techniques at our facilities or our products themselves.

At Micromax, we believe in returning to the community some of the profits

we earn from it, through the social causes we espouse. We view ourselves

not as an MNC operating in India, but as an 'Indian Company' operating

here, conforming to the laws of the country and committed to working for

the Indian community . We believe that consumers in India have unique

preferences with respect to mobile handsets such as long battery life, dualGSM capability, low-cost QWERTY phones, universal remote control and

gaming phones. In addition, we also focus on developing higher value

premium products targeted at urban populations. We believe that our

product development capabilities have enabled us to establish ourselves as

an innovative Indian mobile handset company.


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1.8 CORE VALUES

Accessibility

Life is a challenge. We know that. But communicating doesn't have to be.

At Motorola, we recognize that customers have different needs and

capabilities. We are committed to creating products that meet the needs of

everyone possible regardless of abilities.

We provide a wide range of products for people with diverse

communications needs with hearing, speech, vision, dexterity, mobilityor cognitive needs at varying levels.

Business Conduct

The Micromax Code of Business Conduct reaffirms what each Micromax

employee stands for: Doing the right thing. Every day. No excuses.

Micromax's "Key Beliefs" have been in existence for decades, andMicromax continues to have a strong culture of corporate ethics and

citizenship.

Our Key Beliefs: The Way We Will Always Act

Uncompromising Integrity

Constant Respect for People

The Micromax Code of Business Conduct sets the standards for Micromax

commitment to uncompromising integrity. Since its original establishment

Contd....


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in the 1991s, the Code has provided Micromax employees guidance for their

business activities, placing a priority on establishing trust with our

stakeholders. However, it is not enough to declare our good

values. Micromax is committed to acting on them through the potential

of our technology and the way we conduct our business.

Environment, Health & Safety

Recycling

Micromax is a strong proponent and supporter of global environmental

sustainability and recycling programs. In partnership with our carriers,

customers, retailers and recyclers and on our own, we operate take back

programs across the globe .

Our Management Philosophy

"We will devote our human resources and technology to create superior

products and services, thereby contributing to a better global society."

Our management philosophy represents our strong determination to

contribute directly to the prosperity of people all over the world - a single

human society. Key to our efforts is our own people, whose talent and

creativity are dedicated to doing their best at all times.


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1.9 BOARD OF DIRECTORS

Mr.VikasJain Director of the Board, Micromax Informatics Ltd.

Mr. Vikas Jain, Business Director Micromax , said, Delivering best of the

technology and path breaking innovation has always been our priority. We

work towards bringing exclusive technology in the hands of the masses. A

3G Mobile is still considered an expensive piece of technology, but H360 is

here to break all the rules. The journey of 3G in India has just begun and

there is a need for mass awareness of 3G. We are thankful to MTNL forhaving worked with us to enable us to bring forth a revolutionary product

for the Indian 3G subscribers. We are confident that this handset will

redefine the 3G experience in India and with increasing awareness and

availability, 3G mobiles will gain mass popularity.

Mr. Rajesh Agarwal

Mr.Rajesh Agarwal is the Managing Director and one of the Promoters of

our Company and has been involved with our Company since its inception.

He holds a bachelors degree in electrical engineering from Institute of

Engineering, Calcutta. He has over 22 years experience in business

restructuring, channel management and information technology. He has

previously worked with Partech Computers Limited as customer support

engineer and Universal Computers as customer support engineer.


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1.10 ORGANISATION STRUCTURE

(Figure 1.3)

We can see the figure which depicts the organisation structure of micromax.

The design is well structured and thus each and every department is

coordinated and interlinked with each other. The managing director has an

interconnection with the other managers which are actively involved in the

business process.

The decisions taken are centralized and the top management is well

conversant with all the team members of the organisation. Any issue

pertaining to organizational matters is thus reported to the managing

director of the organizational body by the forces deployed below and hence

is resolved by the managing director of the company.

Contd....


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This kind of organisation structure makes the managing director to oversee

all the areas of the organisation and take necessary action if required.

Information flow is smooth and precise therefore avoiding communicational

interruptions.

There is single set of standards for operational, financial, human resource

management. A rapid decision making is possible because of availability of

required data from each corner of the organization. This is the only reason

why MICROMAX has adopted this structure

Discipline in work is associated with this kind of organisational structure

thus avoiding staff conflicts which are hectic and cant be easily resolved.

One more issues to be talked off is the managing of vital resources and

crucial information which is relevant for the company in times.. For

example the necessity of acquiring or raising funds for any sort of project is

the sole responsibility of the chief financial officer. He will directly report to

the managing director for aid and hence seek permission directly to go

ahead for complying with the requirement.

Thus making a consensus about MICROMAX it has typically tried to strike

a balance between theory and experience. Managers have applied various

management and leadership theories in varying degrees thus combining

their graphs with varying levels of success.


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1.11Objectives

It is necessary to specify the objectives of the study. This is because of

specification of objectives will enable us to study various areas and aspects

with clarity.

To know retailers opinion about the Micromax products.

To know the sales performance of micromax product in Sambalpur

market.

To identify retailers perception about competitors products.

To know existing promotional strategy for micromax handsets.

1.12 Aim

Aim of the study is to analyze the gap and suggest strategy to retailers, for

marketing Micromax mobile handsets.

1.13 Key Questions

1. H1 What is retailers opinion regarding Micromax mobile handsets?

2. H2 What are retailers expectation form micromax handsets?

3. H3 Identifying the existing strategy of Micromax?

4. H4 Finding the gap in existing strategy of Micromax?


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LIMITATIONS OF THE

STUDY


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1.15 LIMITATIONS OF THE STUDY

While conducting a Marketing Research, the researcher faces with a lot

of limitations. The present study is not an exception. A few errors have

been expected despite of best efforts to avoid them but this is expected

that still the study is much relevant, in spite of following;

As the study is based mainly on primary data and some of secondary

data are used in this study, the possibilities of personal bias cant be

ruled out.

The researcher intention to reach to a large sample size could not be

accomplished due to lack of time and financial resources the

intention could not be accomplished upon the desired level.

Some respondents were reluctant to reveal the informations on the

pretext that they di dnt have sufficient time.

There was information bias occurred at the time of data collection.

Motivating the people for the survey was a challenging part of the

survey.

Despite all of the limitations efforts are being made to overcome the

errors in the survey.


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RESEARCHMETHODOLOGY


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2Research Methodology

Research design is needed because it facilitates the smooth sailing of the

various research operations, thereby making research as efficient as possible

yielding maximal information with minimal expenditure of effort, time and

money. Just as for better, economical and attractive construction of a house,

we need a blueprint well thought out and prepared by an expert architect;

similarly we need a research design or plan in advance of data collection

and analysis for our project. Research design stands for advance planning of

the methods to be adopted for collecting the relevant data and the techniques

to be used in their analysis, keeping in view the objective of the research

and the availability of the staff, time and money.

Preparation of the research design should be done with great care as any

error in it upset the entire project. Research design, in fact, has a great

bearing on the reliability of the results arrived at the end as such constitutesthe firm foundation of the entire edifice of the research work.

Aim Of The Research

Aim of the study is to analyze the gap and suggest strategy to retailers, for

marketing of Micromax mobile handsets.

2.1 SAMPLE DESIGN

Sample Unit: Retailers of mobile handsets

Sample Size: 150 retailers by covering parts of SAMBALPUR (ORISSA).

Sampling Type: Non probability judgment sampling


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2.2APPROACHES OF DATA COLLECTION

RESEARCH DESIGN:

DESCRIPTIVE RESEARCH

The research is primarily descriptive in nature. The sources of information

are both primary and secondary.

Approach constitutes of both

I.Primary data.

II.Secondary data.

Primary sources:-

Questionnaire Analysis (ENCL.)

SECONDARY DATA:

It refers to those data that was already being corrected by and analyzed bysomeone else. This data is collected from

Reports Magazines. Newspapers and books Internet

2.3SCOPE OF THE STUDY

The study was aimed at understanding and analyzing the retailer

perception towards Micromax handsets.

The research was conducted in the geographical area of

SAMBALPUR(ORISSA),


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SCOPE FOR FURTHER RESEARCH

SALES ANALYSIS:

The study will help in analyzing the sales of territories where the respondent

retailers are located in terms of sales volume, their sales calls closing ability.

MOTIVATION-MIX ANALYSIS:

This study will definitely help in ganging the adequacy of current

motivators on sales performance of retailers.

RETAILERS ANALYSIS:

The study also focused on evaluating retailers in terms of sales performance

and mention expectations by keeping in view other performance of last 2 to

3 years. This will help them ranking in terms of sales turnover and their

consistency in sales performance and additional sales generation.

MARKET ANALYSIS:

This study will help in knowing that the numbers of retailers are energies to

capture this particular market. This study will help in knowing the

companys share and total market demand through market argument

competition density etc.

ANALYSIS BETWEEN COMPANY & RETAILERS:

The studies are also focused on the expectations of retailers from company

and extend of their fulfilment though communication effectiveness,

complaints, handling etc.

2.4Hypothesis

H1: Micromax provides the best service.

H2: Expectation is met by the micromax Solutions.

H3: Response of retailers towards micromaxis positive.


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H4: Micromax sales process is better.

2.5 RATIONALE OF THE QUESTIONNAIRE:

A questionnaire may fulfill all the requirements as discussed earlier like it

should be short, precise, unbiased etc. However if the questionnaire is not

properly constructed, it will fail to fulfill the objectives of the survey. In my

research I have set up 16 questions required to collect the data which is

necessary to complete my research work. Most of the questions asked are

closed response and multiple choice based questions. The importance of

each question thus described below;

1. The first question is to check the density of the retailers selling the

handsets on an average which will determine the attrition rate of

handset selling.

2. The second question resembles about customer response. Response

for a product tells us about the awareness level of customers related

to the companys product. 3. The third question is about the retailers opinion on micromax

products which will reflect the perceptional values of retailers

towards the company. This question relates to my research topic as

well.

4. My fourth question asks about the availability of the product because

it determines the products reach to its customer in its area of

operation.5. Resp ondents age is the fifth question which is to know which age

group influenced to purchase the company products.

6. The sixth question is to find out the promptness of distribution

system of the company. Physical distribution manages the flow of

products from producers to customers in a cost effective way.

7. Creation of superior customer value and delivering high levels of

customer satisfaction are the core areas in marketing the seventh


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question thus highlights to know the performance of marketing

efforts adopted by the company to increase the sales figure.

Contd...

8. Eighth question is to know about the sales promotion schemes provided by the company. Sales promotions are to stimulate the

customer interest in products hence is a crucial part of my research

topic.

9. Relevance of the ninth question is to judge the overall opinion of

micromax mobiles assumed by the retailers and the numbersobtained would help me to ascertain the retailer s quotient.

10. The tenth question ask about the attributes of micromax mobileswhich are important to know because presence of the attributes

makes the product a special one and lets consumer to choose the

products on behalf of these attributes.

11. It is crucial to make the comparison of micromax products related to

its competitor because the results are essential and any discrepancieswill take the product to further development. So eleventh question is

based on this.

12. Twelfth question is related to make a comparison on pricing of the product with competitors. Pricing is essential for both the retailers

and the consumers.

13. Discounts are a part of sales promotion. Hence the schemes designed

by the company in appropriate schedules is very important becauseconsumer purchase the products when there is discount scheme

available and retailers also sell the products more in number with

available discount schmes.

14. After sales service provided by the company are a part of valueaddition to company and its product.

15. The fifteenth question asks about any element that is missed in the

product. It is because market is dynamic and hence to do the business the product must correlate with the market change.


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16. Since retailers are associated with the selling of products to the endusers they can only depict the future of the micromax business.

ANALYSIS OF DATA


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DATA ANALYSIS ANDCOMMENTS

This chapter is the core part of my dissertation because it includes the

research findings expressed by text, figures, tables, charts and graphs. It is

absolutely important to present them clearly for precise analysis.

In order to get the 150 respondents are chosen as sample space thereby

making them fill my questionnaires. To conduct the survey 10 respondents

are interviewed each day. Total of 15 days being taken to complete the

entire process and 1 more day for calculating the figures thus obtained.

My areas of survey includes main areas of Sambalpur town shops closer to

market areas, residential area, city malls, station square, bus stands and the

like .

My visits included outskirts of Sambalpur town like Burla, Durgapalli,

Ainthapalli, Chaurpur and the like.

The charts and graphs used are pie chart, column and bar graphs.

Therefore I present my findings of the survey report conducted in this

chapter.


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Q.2. Consumers response towards Micromax products?

RESULTS

PARAMETERS NO OFRESPONDENTS

PERCENTAGERATINGS

EXCELLENT 30 20

GOOD 70 46.67

AVERAGE 30 20BELOW AVERAGE 20 13.33

TOTAL 150 100

(Table 1.3)

(Figure 1.5)

20%

47%

20%

13%

CONSUMER RESPONSEEXCELLENT GOOD AVERAGE BELOW AVERAGE


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Q.3 Retailers opinion about products offer?

RESULTS

(Table 1.4)

(Figure1.6)

50%

23%

17%

10%

RETAILERS OPINIONExcellent Good Average Below Average


PERCENTAGERATINGS

Excellent 75 50Good 35 23.33

Average 25 16.67Below Average 15 10

Total 150 100


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Q.4 Product availability of Micromax in the territory?

RESULTS

(Table 1.5)

(Figure 1.7)

10%

43%30%

17%

PRODUCT AVAILABILITY

excellent good average below average


PERCENTAGERATINGS

excellent 15 10good 65 43.33

average 45 30

below average 25 16.67TOTAL 150 100


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Q.5 What age of people do you think purchase micromax mobiles?

RESULTS

(Table 1.6)

(Figure 1.8)

3%

57%23%

17%

Age Group Of Buyersless than 20 20 - 30 30 - 40 40 & above

Parameters NO OFRESPONDENTS

PERCENTAGERATINGS

less than 20 5 3.3320 - 30 85 56.6730 - 40 35 23.33

40 & above 25 16.67TOTAL 150 100


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Q.6 Opinion on delivery of Micromax products as per order made

distributors?

RESULTS

(Table 1.7)

(Figure 1.9)

3%

17%

57%

23%

PRODUCT DELIVERY

excellent good average below average


PERCENTAGERATINGS

excellent 5 3.33good 25 16.67

average 85 56.67

below average 35 23.33TOTAL 150 100


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Q.8 Promotional support that has been provided by company?

RESULTS

(Table 1.9)

(Figure 2.1)

6%

30%

63%

1%

PROMOTIONAL SUPPORTexcellent good average below average


PERCENTAGERATINGS

excellent 10 6.67good 45 30

average 95 63.33 below average 1 0.6

TOTAL 150 100


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Q.9 Overall opinion about Micromax by the consumers?

RESULTS


PERCENTAGERATINGS

excellent 45 30good 85 56.67

average 15 10 below average 5 3.33

TOTAL 150 100

(Table1.10 )

(Figure 2.2)

30%

57%

10%3%

overall opinion of consumer'sexcellent good average below average


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Q.10 Attributes you consider most important in mobile handsets?

RESULTS

(Table 1.11)

(Figure 2.3)

43%

30%

17%

10%

IMPORTANT ATTRIBUTESPRICE QUALITY DEMAND BRAND IMAGE

ATTRIBUTES NO OFRESPONDENTS PERCENTAGE

PRICE 65 43.33QUALITY 45 30DEMAND 25 16.67

BRAND IMAGE 15 10TOTAL 150 100


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Q 11. Comparing to other company products, you rank Micromax productsas?

RESULTS

PARAMETERS NO OFRESPONDENTS PERCENTAGE

excellent 14 9.33good 130 86.67

average 5 3.33 below average 1 0.67

TOTAL 150 100

(Table 1.12)

(Figure 2.4)

Q .12 Comparing to other company products the price of products ofMicromax is?

9%

87%

3% 1%

Comparing to other companyproducts, you rank Micromax

products as

excellent

good

average

below average


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RESULTS


very high 0 0high 0 0

reasonable 140 93.33low 10 0.67

TOTAL 150 100

(Table 1.13)

(Figure2.5)

Q .13 Opinion about the discounts offer of Micromax products is?

0%0%

93%

7%

comparing the price of micromaxproducts with competittor's

very high high reasonable low


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RESULTS

(Table 1.14)

(Figure2.6)

Q14 After sales service that has been provided by company is?

80%

17%

3% 0%

opinion on discount offered by thecompany

Very attractive Fairly attractive Not attractive No offer


Very attractive 120 80

Fairly attractive 25 16.67

Not attractive 5 3.33

No offer 0 0

TOTAL 150 100


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RESULTS

PARAMETERS NO OF

RESPONDENTS PERCENTAGE

Excellent 20 13.33

Good 95 63.33

Average 30 20

Below Average 5 3.34

TOTAL 150 100

(Table1.15)

Figure 2.7)

Q 15 What are the elements you miss in micromax mobile sets?

67%

20%

13%

0%

AFTER SALES SERVICEOF MICROMAXMOBILES

Excellent Good Average Below Average


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RESULTS


Durability 10 6.67

Availability 110 73.33

Design 27 18

Any other 3 2

TOTAL 150 100

(TABLE1.16)

(Figure 2.8)

7%

73%

18%

2%

elements you miss in micromaxhandsets

Durability Availability Design Any other


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Q16. In your opinion what is the future of Micromax mobile handsets?

RESULTS

PARAMETERS NO OF RESPONDENTS PERCENTAGE

Excellent 100 66.67

Good 30 20

Average 20 13.33

Below Average 0 0

TOTAL 150 100

(TABLE1.17)

(Figure 2.9)

67%

20%

13%

0%

future of Micromax mobile handsetsby predicted by the retailers

Excellent Good Average Below Average


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RESULTS


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Following results has been interpreted from the research work.

1. COMMENTS

While conducting my survey in Sambalpur area I found that there is a good

progress in selling of micromax handsets. 21-30 number of handsets of

micromax recorded highest selling in one month on an average in those

shops which are strategically located in the central parts of Sambalpur city

area. Then 11- 20 nos of handset are sold in outskirts of Sambalpur area

mainly due to available feature in an affordable price. So location and price

are the two crucial factors which made to sell the handsets more in numbers.

Due to stiff competition the handsets figures have not yet reached to 31 and

above in the city areas because city dwellers are a bit brand consciousness.

2. COMMENTS :

Consumers opinion is taken to use them while figuring out of sales

performance. In their opinion they rated micromax products as good one

because they believe that it is the only product available in the market with

good quality and affordable price. They also replied that the products have

an innovative design with embedded technology which makes it a product

for middle class and to some extent higher middle class. They replied that

the main reason to rate it good because of its battery life which gives them

long standby time to gossip and use it for other purpose as well. The reason

for not saying Micromax as an excellent product is not having proven

technology like Nokia, Sonyericcson & Samsung brands of cell phones.


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3. COMMENTS

Near about 50% retailer s marked that micromax produc t offer as excellent.

The reason is Micromax products comes with low cost which itself is a good

offer made so far as comparison to other leading brands in this segment are

concerned. Apart from good price range, accessories like Bluetooth headset,

USB cable comes with every purchase of micromax products which is the

main theme for increase in its customer base. They also added that handsets

with dual sim / dual stand by handsets switching networks (GSM - CDMA)

aspirational QWERTY keypad handsets are also the some key features thatexerts pull on customers.

A reasonable sales volume generated by the retailer thus adds profit margins

to his account. Retailers also replied most of their target customers are the

college students and they the micromax handsets because of its sleek design

and reasonable pricing.

4. COMMENTS

Sambalpur area is far away from the capital city and also has less population

as compared to the capital city of Odisha. This is the reason why the city is

not upgraded with the latest models available in the Micromax range. If we

take a look at the graph we can see that the numbers are high in the optionsof good and average. The reason being consumers are not updated to the

latest product availability in the market. Creating awareness by retailers is a

way to make people updated which is not given a due importance in these

areas. The only awareness quotient being the TV ads and paper ad

published by the company.


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5 COMMENTS

The highest number of purchase is made by the age group 20-30 which is 85

out of 150, as compared to other options.

The reason of more purchase made by this age group is due to likeness in

design, technology and pricing. A long durability battery promise has also

made the youth to switch over. Micromax handsets provide a long battery

standby which can last long hrs even if it is used roughly.

In other segments i.e. 40 and above age are less aware about micromax

products availability, features and its usage hence dont prefer to buy these products. They firmly believe on proven technology and prefer to take

branded items at affordable rates and prefer to take low segment mobile

phone available in branded items category.

6 COMMENTS

The finding states that the product delivery is average. Due to unavailability

of proper shipping facilities in the town or else poor distribution channel

management i.e. arranged by the company is bringing out such

consequences. Distribution channels are probably the most visible aspects of

any companys marketing efforts. In this case, there might be spatial

discrepancy caused in the exchange process because of the geographical

distance. Or else it could be temporal discrepancy caused in the exchange

process because of the time gap the time the product consumed or time the

product is produced.


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7 COMMENTS

Marketing efforts of the company is considerable one. Adoption of new

methods of marketing is less seen in Sambalpur, which is affecting the

increase in handset sales. Marketing increases awareness level in consumers

and priority should be given to these matters. Priority on change in product

addition, introducing new price and models, advertising, sales promotion

and publicity, sales force, customer service and the like are not upgraded

with time . As a result the no of outlets didnt increase subsequently with the

changing times. This concludes to say that marketing efforts are not

properly planned which results in rating average.

8 COMMENTS

Unlike marketing efforts retailers pointed out the same views for

promotional efforts given by the company. Retailers said that promoting the

products through product placements, internet, radio, contest , sponsorships

are not being done by the company to promote the product, which is

hampering the growth in that area. Attractive sales promotion schemes can

pull more customers to purchase the company products.


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9 COMMENTS

Most of the retailers are in opinion to rate micromax products as good. The

reason to mark good is mainly due to the portfolio that has been created by

introducing low cost handsets for middle class people. So both areas

retailers i.e. the central parts and the outskirts of Sam balpur area, are with

same view point that the products of micromax are good.

In addition to that few retailers in the central part of S ambalpur area

marked the product excellent. The reason being the increase in sales figure.

They added that if company will give more priority on the issues like sales

promotions and marketing efforts then the sales figure could grow even

higher and company can make a reach to more inhabitants in that area

10 COMMENTS

The retailers considered price and quality of the products are essentially

important which got high scores.

Price is preferred as an important factor because consumers gives due

preference to pricing factors and select products accordingly. When the

customers come for purchase they look to the price tag and make selection

for purchasing.

So sticking to strategic pricing can result in achieving high sales. Also itwill give rise to strong competition against the competitors and will let to a

fierce full entry into the market thus making a cut throat competition.

They also replied that quality is next important factor after pricing because

a customer having purchasing power will not seek to price rather, will check

the quality of the product , the technology it has is upgraded one or not.

Contd...


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Demand is the next important factor that is chosen by the retailers. Rise in

demand is can be a good sign for the business as well as it is important for

retailers because it will help in creating a gimmick effectively givingenormous revenue generation.

Demand base will increase if there is equilibrium in between Quality and

Pricing of the product. It helps in expansion of business to a large extent.

Moreover some retailers had also rated that brand image is also an important

factor. It is true in case of cities. But in the outskirts i.e. in rural areas people

often pretend to look brand image rather they look for getting products

which are suitable to their pocket.

11 COMMENTS

Remarkably a huge percentage of retailers have marked Micromax products

as goo d its due to the product s pricing and other important accessories that

it is offering for the consumers. One more thing that they added is that the

product is largely accepted by the middle class consumers which are high in

numbers in the market and these categories of consumers look the thing

which is value for money. They said that only with the offer that comes with

the handsets they are able to do excellent business.

Only 9% of retailers are in view to rate the products of Micromax as

excellent because of its new version of phones being launched i.e. is

comparable with Nokia, Sony range of phones because of the technology

micromax has induced with these range of new launch. Their perception is

with the availability of these products in the market they can get huge sales

volume.


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12 COMMENTS

Micromax mobiles have been launched in the INDIAN market by strategic

pricing which has been positioned as low cost mobile phones in INDIAN

market. Thus the choice of option was bit easy for the retailers to say the

phone to be reasonably priced . In addition to that they said that low cost

price is generating revenues for them as sales volume are rising and demand

base for low cost cell phones are up rolling in the markets. To somewhat

branded cell companies are posing a serious threat from these cell phone

makers .

13 COMMENTS

80 percent of the retailers voted that micromax mobiles discount offer is

fairly attractive. The reason for this reply is mainly due to the sales target

they achieve in month is quite high as compared to other mobile products.

And most of the consumers in Sambalpur area are showing a keen interest

towards the purchase of low cost mobile phones for their usage.


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14 COMMENTS

Retailers said that the after sales service has not set up in full fledged by the

company particularly in Sambalpur. Customers are facing problems in

getting support assistance from the company. People those who stay in the

outskirts of Sambalpur area are finding difficulties to come and show there

problems in the city based service centres. This is taking a reasonable

amount of time. Also they said that company after analysing a problem in

the telephone is taking much of time to resolve them which is a big matter

of concern for those customers who mainly depend on their phone. Looking

at the reasons overall reply is good when it comes to after sales service

support provided by the company.

15 COMMENTS

Retailers said that the new launch version are not made available in

Sambalpur market by the company which is why customers are not able to

know the latest versions of the models available in the market. There is stilltechnological faux pas. They said that with rapid industrialisation in

Sambalpur income of the people are rising and they are slowly changing

their minds to make themselves upgraded with latest features of cell phones.

So company needs to think about the growing income in demographics and

take strategic actions as necessary. Design and durability got less numbers

because Micromax has made its debut in the handset market by making

innovative design and also promising a long lasting durability. The only

problem is with the availability of the handsets which is big matter of

concern. So retailers should try to pull the attention the distribution

managers who have the task of establishing the channel.


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16 COMMENTS

Retailers are in a view that micromax has an excellent future in mobile

handset business, mainly because of its value for money promise to the

customers. The key drivers for its success are its innovating design, look,

technology, dual sim features, long battery life support, Qwerty keypads for

easy sms, strategic pricing, providing other necessary accessories like

Bluetooth headset, USB cable, travel charger, internet facility, memory card

and the like. They also added that growing income and demographics of

consumer in Sambalpur area is of main concern so there must be plentily

available option in the market so that selection would not be a constraint for

consumers to make selection as per their choice.


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SWOT ANALYSIS ON THE PERFORMANCE RESULTS

OBTAINED

STRENGTHS WEAKENESS

Technological skills

Leading brands

Distribution channels

Consumer preference to the

brand Quality of production

Strong management

Large scale production

Technological faux pass

Poor access to distribution

channels

Weak after sales service

Sluggishness in sales Stiff competition

OPPURTUNITIES THREATS

Changing customer taste.

Liberalization of geographical

markets.

Technological advancement.

New distribution channels

Change in population age

structure.

Dynamic markets.

Closing of geographic markets.

Advance technology.

Pricing of competitors.

Quality products available in the

market.

Innovative design available in

the competitors product.

(Table1.18)


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DISCUSSION AND CONCLUSION


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DISCUSSION AND CONCLUSION

TO ANALYZE THE GAP AND SUGGEST STRATEGY TO

RETAILERS, FOR MARKETING MICROMAX MOBILE HANDSETS.

(Aim Of The Dissertation)

COMMENTS MADE ON RESEARCH OBJECTIVES

About 57% retailers overall opinion for Micromax handsets is good,

because since its launch in Sambalpur it has got attention build up

among consumers.

Analysing the sales performance is the important part of the study as

it helps to identify where its sales performance has been good or

mediocre. Sales analysis is done by product and consumer,

Sales analysis by product: breaks out the sales data by product and

by year and shows maximum sales, average sales, minimum sales,

annual sale, average unit price per product, best selling year of each

product and contribution of each product sales to the total. Thus past

3 years graphs have been taken to show the sales performance by

product.

Contd...


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year sales% change

in sales sales units% change

in unitsaverage unit

price2008 59000 5900 102009 64450 8.45 5859 0.69 112010 72528 11.13 6307 7.1 11.49total 195978 18066

Table 1.20

Figure3.1

Figure 3.2

Contd...

0

2

4

6

8

1 2

p e r c e n t a g e

c h a n g e

i n u n i t s

percentage change in units

0

2

4

6

8

10

12

1 2

p e r c e n t a g e

c h a n g e

i n

s a

l e s

percentage change in sales


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Percentage sales is calculated by

percentage sales for 2009 59000/64450*100 = 91.54

Therefore percentage change: 100-91.54 = 8.45Other calculations on percentage change in (in units and sales) are same.

Therefore the results for sales by product shows that year 2010 has gothighest sales nos.

Sales analysis by consumer: consumers preferred micromaxhandsets as good for its pricing and battery backup.

Retailers think that micromax needs more up gradation in order tocompete with branded items. The reason to mention this is thatIndian consumers now comprehend that quality comes with priceand better quality means a super brand. So there rating is good whenit comes to micromax.

Micromax has ventured into Sambalpur market by showcasing thefeature of low cost and long standby time handsets. Thus the existing

strategies used are......

In 2008 Micromax ventured into the mobile handset market The brand wanted to create a base before taking on the large players GO-TO- MARKET STRATEGY Micromax launched its first phone in the market with a very

unique USP- 30 days battery standby time The first product was a big success -- Micromax X1i priced at Rs

2150 was lapped by the consumers.


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Micromax has a lot of interesting and thoughtful products to its credit ontheir versatile product portfolio. It was the first to introduce:

1. Handsets with 30 days battery backup 2. Handsets with Dual SIM / Dual Standby 3. Handsets Switching Networks (GSM - CDMA) 4. Aspirational Qwerty Keypad Handsets 5. Operator Branded 3G Handsets 6. OMH CDMA Handsets, etc.

BRAND'S PROMOTION STRATEGIES USED

sales campaigns in various parts of SambalpurMicromax Face book ad

Gravity,

MTV, (Co-Branded phones)

EEZPad are some of its initiatives taken for using them as strategies.


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RECOMMENDATIONS


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RECOMMENDATIONS

The retailers should plan for expansion in the product length.

Company should open more customer care & repair

centres in Sambalpur because consumers find difficulties in

getting their mobile handsets repaired. This will increase the

sales figure as well because repair centres will provide

authentic service and consumer will rely on this service.

Company should more emphasize on the state-or-art . (New

Technology/Advanced Technology) and better quality solutions

and try to make people feel the experience of technology

through the retailers of micromax.

Company should focus on humorous & Emotional appeals in

its advertisement because sentiments play important role in

Indian market-culture and makes easy to draw attention. For

e.g. - ADVERTISEMENT OF X500 handset.

The retailers should be provided with the prevailage partnersfrom the company. The retail shop will get around two thirds

of its revenues from the handsets sold.

With every purchase of micromax handsets trendy and

attractive carry bags should be given to the consumers

designed by the company.

Retailers should also donate money for local sponsorships

like quiz or sports like cricket or other local sports to embark

the popularity of the product.

Following a Frontal and Flanking attack strategy should be

adopted by the retailers

Company should provide attractive racks or carrying case to

keep the handsets to retailers to draw attention of customers.

Any schemes available in the market should be sent to

customers mobile phone by using sms softwares.


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Company should provide attractive sign/glow boards to

retailers for advertising the new launch of models.

Now a days social media is most liked by people and are

more common to young mass. This has not only restricted to

young mass but also driving an influence in the professionals

as well. So application oriented handsets should be brought

by the retailers into the market in large as the population of

young mass and professionals is growing in Sambalpur

rapidly.

3g handsets also needs and introduction in Sambalpur area

because technology of mobile handsets has got a drastic

change in INDIA and other branded companies are focusing

more on these issues.

Every year there should be a MOBILE MELA conducted by

the company in Sambalpur so that people will come to know

the effectiveness of mobile phone in their daily life. These

MELA are to be organised by the retailers as well. There

should be mobile displays and tips to be provided to the

visitors to take care their handsets.....

Location in a pertinent issue which needs substantial

planning before starting of the business. Strategically

locating the store will boost up the sales figure and increase

in footfall also.

Business leads and clients are a crucial for the business.

Making and creating contacts and networking is very

important therefore building the potential clients base before the launch of business. Start marketing of business by

giving away some products and services. By creating a

relationship with your potential customers, a trust should be

built with them, and at launch, it will be easy for them to buy

from you.


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BIBLIOGRAPHY


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QUESTIONNAIRE


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QUESTIONNAIRE:

Dear Sir/Madam,

I would like to introduce myself as an PGDM (AIMA) student of REGIONAL COLLEGE OF MANAGEMENT, Bhubaneswar and doing a

project on the topic. RETAILER PERCEPTION TOWARDSMICROMAX MOBILE SETS .

This project is to be submitted to the AIMA for the award of PGDM. HenceI, request you to kindly spend few minutes of your valuable time inanswering this.

Name of the retailer

Gender -

Name of the retail outlet

Address

Products offered by you

(a) Nokia (b) Sony Ericsson (c) Samsung

(d) Motorola

(e) HTC (f) Blackberry (g) LG(h) Micromax

If you are not providing Micromax then specify reason-


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1. Number of handsets sold by you in one month on an average-

a) 0-10 [ ] b) 11-20 [ ]

c) 21-30 [ ] d) 31 and above [ ]

2. Customers response towards Micromax products.

a) Excellent [ ] b) Good [ ]

c) Average [ ] d) Below Average [ ]

3. Your opinion for product offer to you by Micromax.



4. Product availability of Micromax in this territory.



5 What ages of people do you think purchase Micromax mobile most.

a) Less than 20 [ ] b) 20-30 [ ]

c) 30-40 [ ] d) 40 and above [ ]

6 Your opinion about deliver of products as per your order byMicromax distributor.



7 Marketing efforts of Micromax compared to its competitors is


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8 Promotional support that has been provided by company is



9 Your overall opinion about Micromax with regard to their

relationship withyou



10 Which attributes you consider most important in mobile handsets.

a) Price [ ] b) Quality [ ]

c) Demand [ ] d) Brand Image [ ]

11. Comparing to other company products, you rank Micromax products as?



.12 Comparing to other company products the price of products ofMicromax is?

a) very high [ ] b) high[ ]

c) reasonable[ ] d) Low [ ]


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13 Opinion about the discounts offer of Micromax products is?

a) Very attractive [ ] b) Fairly attractive [ ]

c) Not attractive [ ] d) No offer [ ]

14 After sales service that has been provided by company is?



15 What are the elements you miss in micromax mobile sets?



16. In your opinion what is the future of Micromax mobile handsets?




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TH NK YOU

63873126 project report on retailers perception about micromaxx mobile handsets

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