project report on retailers perception about micromaxx mobile handsets

A PROJECT REPORT ON

“RETAILERS PERCEPTION TOWARDS MICROMAX MOBILE

SETS”.

Project Submitted by:

Manish Kumar Singh

Regd. No.-420921105

42, Post Graduate Diploma in Management.

Regional College of Management Autonomous.

REGIONAL COLLEGE OF MANAGEMENT

CHAKADOLAVIHAR, CHANDRASEKHARPUR

BHUBANESWAR-751023

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EXECUTIVE SUMMARY OF THE PROJECT

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EXECUTIVE SUMMARY

A motivated person will be ready to act. How he actually acts is influenced

by his perception of the situation. PERCEPTION is a complex process by

which people select, organise, and interpret their sensory stimulation into a

meaningful picture of the world.

Telecom industry is one of the fastest growing and the next best

revolutionary concept in today’s communication. As we know that cellular

phone are now used as one popular tool in communicating with each other.

People are getting benefited in numerous ways. Increase in the teledensity

and the net mobile phone addition which is around 50% every year has

made cell phones business go swift.

This industry is not only restricted to urban areas. It’s growing popularity

has been flagged in rural areas as well. Availability of high end features

with affordable price tag has made this industry to penetrate into rural areas.

These radical changes marks out that telecom industry has brought a boom

to our economic development creating a high perceptional value in between

the makers of the cell phone companies, the retailers selling these phones

and the consumers using these phones. If we take a look at the

demographics of INDIAN consumers with respect to cell phone markets

then it is predominantly huge the reason being rise in need of

communication in day to day life.

MICROMAXX a popular cell phone maker in INDIA has tapped the market

by adopting the strategy of making low cost mobile phones and adding high

end features to these models. The major reason being consumers in India

has unique preferences with respect to the selection of mobile handsets.

Therefore, the company is focusing on innovation, design and use of latest

technologies to develop products at affordable prices. In addition to that

Micromax also focuses on developing higher value premium products

targeted at urban populations.

Contd....

3

Thus my project is made to analyze the present scenario of micromax

business and its scope of development to tap the market potentiality and to

maximise the productivity. It is not only intended to focus on the sales

concept but also a guide to deliver effective expertise in being familiar with

the mindset of the retailers. During the course of the survey, statistics have

been collected from various outlets of Sambalpur & its peripheral areas.

Steps have also been taken in the project to analyze the solutions for

Micromax with special attention being driven to consumer demand.

Although all my research study is based on primary data that is collected

through questionnaire but few information is collected through secondary

data like company profile. The sample size is 150 and the research design

chosen is exploratory research design. A number of personal, psychological,

demographic and other factors influence customers buying behaviour. Most

of the customers get information from their friends and their evaluations are

based on that information’s. Advertising and Word of mouth

communication play important role to create brand awareness and lead high

sales figures for mobile handsets.

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INTRODUCTION

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1. TELECOM INDUSTRY IN INDIA

The Indian telecommunication industry is the world's fastest growing industry with 826.93 million mobile phone subscribers as of April 2011.

It is also the second largest telecommunication network in the world in

terms of number of wireless connections after China. As the fastest growing

telecommunications industry in the world, it is projected that India will have

1.159 billion mobile subscribers by 2015. Besides that, projections by

several leading global consultancies indicate the total number of subscribers

in India will exceed the total subscriber count in the China by 2013.The

industry is expected to reach a size of 344,921 crore (US$76.92 billion) by

2012 at a growth rate of over 26 per cent, and generate employment

opportunities for about 10 million people during the same period.

(Figure1.1)

According to analysts, the sector would create direct employment for 2.8

million people and for 7 million indirectly. In 2008-09 the overall telecom

equipments revenue in India stood at 136,833 crore (US$30.51

billion) during the fiscal, as against 115,382 crore (US$25.73 billion) a

year before.

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1.1 HISTORY

Telecom in the real sense means the transfer of information

between two distant points in space. The popular meaning of telecom

always involves electrical signals and as a result, people often exclude

postal or any other raw telecommunication methods from its meaning.

Therefore, the history of Indian telecom can be started with the introduction

of telegraph

In 1880, two telephone companies namely The Oriental Telephone

Company Ltd. and The Anglo-Indian Telephone Company Ltd. approached

the Government of India to establish exchanges in India. The permission

was refused on the grounds that the establishment of telephones was a

Government monopoly and that the Government itself would undertake the

work. In 1881, the Government later reversed its earlier decision and a

licence was granted to the Oriental Telephone Company Limited

of England for opening telephone exchanges

at Calcutta, Bombay, Madras and Ahmadabad and the first formal telephone

service was established in the country. On the 28th January 1882, Major E.

Baring, Member of the Governor General of India's Council declared open

the Telephone Exchanges in Calcutta, Bombay and Madras. The exchange

in Calcutta named the "Central Exchange” was opened at third floor of the

building at 7, Council House Street, with a total of 93 subscribers. Later that

year, Bombay also witnessed the opening of a telephone exchange.

While all the major cities and towns in the country were linked with

telephones during the British period, the total number of telephones in 1948

numbered only around 80,000. Post independence, growth remained slow

because the telephone was seen more as a status symbol rather than being an

instrument of utility. The number of telephones grew leisurely to 980,000 in

1971, 2.15 million in 1981 and 5.07 million in 1991, the year economic

reforms were initiated in the country.

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1.2 PRIVATIZATION OF

TELECOMMUNICATIONS IN

INDIA

The Indian government was composed of many factions (parties) which has

different ideologies. Some of them were willing to throw open the market to

foreign players (the centrists) and others wanted the government to regulate

infrastructure and restrict the involvement of foreign players. Due to this

political background it was very difficult to bring about liberalization in

telecommunications. When a bill was in parliament a majority vote had to

be passed, and such a majority was difficult to obtain, given to the number

of parties having different ideologies.

Liberalization started in 1981 when Prime Minister Mrs. Indira

Gandhi signed contracts with Alcatel CIT of France to merge with the state

owned Telecom Company (ITI), in an effort to set up 5,000,000 lines per

year. But soon the policy was let down because of political opposition. She

invited Sam Pitroda a US based Non-resident Indian NRI to set up

a Centre for Development of Telematics (C-DOT); however the plan

failed due to political reasons. During this period, after the assassination of

Indira Gandhi, under the leadership of Rajiv Gandhi, many public sector

organizations were set up like the DepartmentofTelecommunications (DoT)

VSNL and MTNL. Many technological developments took place in this

regime but still foreign players were not allowed to participate in the

telecommunications business.

The demand for telephones was ever increasing. It was during this period

that the Narsimha Rao-led government introduced the national

telecommunications policy [NTP] in 1994 which brought changes in the

following areas: ownership, service and regulation of telecommunications

infrastructure.

Contd....

8

They were also successful in establishing joint ventures between state

owned telecom companies and international players. But still complete

ownership of facilities was restricted only to the government owned

organizations. Foreign firms were eligible to 49% of the total stake. The

multi-nationals were just involved in technology transfer, and not policy

making. After 1995 the government set up TRAI (Telecom Regulatory

Authority of India) which reduced the interference of Government in

deciding tariffs and policy making.

The DoT opposed this. The political powers changed in 1999 and the new

government under the leadership of Atal Bihari Vajpayee was more

Pro-reforms and introduced better liberalization policies. They split DoT in

two- one policy maker and the other service provider (DTS) which was later

renamed as BSNL. This was a gateway to many foreign investors to get

entry into the Indian Telecom Markets. After March 2000, the government

became more liberal in making policies and issuing licenses to private

operators. The government further reduced license fees for cellular

service providers and increased the allowable stake to 74% for foreign

companies. Because of all these factors, the service fees finally reduced and

the call costs were cut greatly enabling every common middle class family

in India to afford a cell phone. Nearly 32 million handsets were sold in

India. The data reveals the real potential for growth of the Indian mobile

market.

In March 2008 the total GSM and CDMA mobile subscriber base in the

country was 375 million, which represented a nearly 50% growth when

compared with previous year. As the unbranded Chinese cell phones which

do not have

Contd....

9

International Mobile Equipment Identity (IMEI) numbers pose a serious

security risk to the country, Mobile network operators therefore planned to

suspend the usage of around 30 million mobile phones (about 8 % of all

mobiles in the country) by 30 April. 5–6 years the average monthly

subscribers additions were around 0.05 to 0.1 million only and the total

mobile subscribers base in December 2002 stood at 10.5 millions. However,

after a number of proactive initiatives were taken by regulators and

licensors, the total number of mobile subscribers has increased greatly to

811.59 million subscribers as of Mar 31st 2011.

India has opted for the use of both the GSM (global system for mobile

communications) and CDMA (code-division multiple access) technologies

in the mobile sector. In addition to landline and mobile phones, some of the

companies also provide the WLL service.

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1.3 THE INDIAN MOBILE HANDSET MARKET

The Indian cellular market is very dynamic. New carriers and many new

local mobile device manufacturers have entered this already crowded

mobile device market. The intense competition results in very low call rates

and low-cost devices from multiple manufacturers in the market. This

market was previously dominated by just a few vendors such as Nokia,

Motorola, Reliance and Vodafone.

Mobile device sales in India are forecast to reach 138.6 million in 2011, an

increase of 18.5 percent over 2010 sales of 117 million units, The mobile

handset market is expected to show steady growth through 2014 when end

user sales surpass 206 million units.

“Established global device manufacturers are losing ground due to fierce

competition from local and Chinese manufacturers in the low-cost

segment,” “Price remains the main criteria when buying any consumer

electronic device in India, including a mobile device. Carrier strategies,

lower tariffs and/or third-generation (3G) data plans will continue to shape

the mobile device market in India.”

India, contributing approximately 10 percent of worldwide sales, is an

important market for manufacturers with aspirations to grow their global

market share. Due to its sheer size and open market (mobile devices being

sold independently of cellular connection); it has attracted many global

mobile device manufacturers. The market is also supported by many local

manufacturers. This has led to more than 50 brands vying for consumer

attention in India, besides the many brands in the black markets (selling

without invoices).

Contd....

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(Figure 1.2)

The entry of Indian mobile handset players focusing on low-end, value

conscious consumers has intensified competition in the Indian mobile

device market. A large volume of mobile device sales in India come from

the low-end device segment. The average selling price (ASP) of a mobile

device is approximately $52, with 85 percent of devices sold costing below

$100.

With the growing influence of local handset players in the low-end segment,

the traditionally stronger, big global players have had their positions

weakened. At the same time, the midrange to high-end market is getting

increasingly competitive too, with a greater focus from global players on the

Indian market and the launch of competitively priced midrange and high-

end mobile devices.

The Indian cellular market is highly voice-centric with just 10 percent of

carriers' revenue coming from data services. Within that, 85 percent of

revenue comes from Short Message Service, leaving less than 2 percent of

overall carriers' revenue coming from data access on mobile devices.

Contd...

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Another fact which separates India, though not the only one, from other

markets is that it is a prepaid market, with approximately 95 percent of

existing subscribers on prepay schemes, and 98 percent of new subscribers

choosing the prepaid option.

This all corroborates the fact that the Indian mobile device market is driven

by the lowest call rates in the world and dominated by low-cost devices,

which account for 80 percent of overall sales in India in 2010.

Although 3G technology has not been introduced in India yet, 3G device

sales are expected to account for 16.7 percent of total sales in 2011, up from

9.2 percent in 2010. By 2014, 3G devices sales are expected to account for

69 percent of total sales. Smartphone sales in India made up 5.2 percent of

total device sales in the first quarter of 2011, and are expected to

increase18percentin2014.

With so many players in fray , mobile handset marketers are banking on

innovation and differentiated positioning for getting heard. The brands

which are able to come out with some innovative functionality in the mobile

handset get noticed and see spurt in sale.

“Cellular phone penetration in India stood at 45 percent in 2011, and the

market is entering into a second phase of growth, with replacement sales

increasing from 45 percent in 2010 to 50 percent of total sales in 2011.

Moves to high-speed 3G networks is bringing in more challenges in terms

of innovation and keeping up with fast changing consumer demand.

Shortening product life cycle times and declining sales of voice-centric

devices will bring changes to the market during the next five years.

So the lessons to be learnt by other new entrants is that either you innovate

for introducing new unheard of features or go for niche marketing and then

go for high decibel advertising. In absence of differentiating positioning

statement it’s difficult to get heard by customer

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1.4 MICROMAXX

COMPANY BACKGROUND

Micromax Informatics Ltd is a New Delhi, India based Telecom

manufacturer and distribution partner to Nokia, Samsung, LG etc for their

IT / Telecom products in India. It has an annual turnover raising to $5000

million and revenue worth $36.17 million. With this it has got 23 domestic

offices across the country and international offices in Hong Kong, USA,

Dubai and now in Nepal. Micromax has been making supplies to the Indian

GSM operators for their different telecom requirements and is now

expanding their product range to the global markets. Micromax's products

come with a quality seal meaning product satisfaction, high reliability

resulting in repeated business. Micromax has 24 hrs operational customer

service centres just in case you need that small bit of information albeit at

the wrong hour. Micromax Inc. has recently seen a rise in market share.

Micromax succeeded with innovation as the guiding force. Most of the

successful handsets of Micromax had something unique to offer either in

terms of features or customization for a segment.

Micromax has a lot of “firsts” to its credit on their versatile product

portfolio. It was the first to introduce: Handsets with 30 days battery

backup, Handsets with Dual SIM / Dual Standby, Handsets Switching

Networks (GSM - CDMA), Aspirational Qwerty Keypad Handsets,

Operator Branded 3G Handsets, OMH CDMA Handsets, etc.

With a 360 degree advertising and marketing strategy sketched out, the

company has an optimistic outlook for the telecom consumer space.

Currently present in more than 40,000 stores across the country, the

company plans to have an aggressive market incursion to reach out to its

customers through 70,000 operational stores in the coming year.

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One of the major aspects that contribute towards the substantial monthly

growth of Micromax is its 80% sales in the rural areas. After building a

strong presence in the rural market, where the prominence of both

subscribers and operators is rapidly increasing, Micromax’ is now

progressively moving towards establishing its foothold in the competitive

urban towns as well.

With young enthusiasts as its anchor, Micromax Informatics Limited

created a niche for itself in the telecommunication industry. Micromax

ventured into the telecommunication industry with an end-to-end solution of

Fixed Wireless Devices and Wireless Data Cards.

In the year 2008, after delivering upon the technology of fixed wireless-

powering desired products, the company forayed into one of the most

predominant genres of telecommunication – Mobile handsets. Since then

Micromax has received commendable response for its unique and

interesting handsets. Innovation, Cost-Effective, Credible and an Insightful

R&D, have now become synonymous to Micromax in the telecom vertical.

Today Micromax has become a brand which people relate and look up to

for realizing their individual device preferences and other out-of-the-box

solutions.

Micromax is currently the third-largest GSM vendor in the Indian

market, A share of 8.1%, perhaps just a few marks behind Samsung.

Samsung at the second position has 10.4% control, as per market

reports.

Nokia with 52.7% share is the number 1 vendor.

(Source: Forbes India, 27 Feb. 2010)

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HISTORY

Micromax made its debut in 1991 but it presence has been felt majorly in

few previous years. Serious developments and rise was seen in the year of

2008 when the company entered Indian Cell phone handsets market.

Company entered market in March 2008 in which it had a market share of

meagre 0.59% average.

Micromax Inc. has recently seen a rise in market share. Micromax is the

largest Indian domestic mobile handsets company in terms of units shipped

during the quarter ended March 31, 2010 and the third largest mobile

handset seller in India as at March 31, 2010 On March 31, 2010 the

company registered the market share of 6.24% for that quarter which grew

from 0.59% in September, 2008.

Micromax became the fastest growing mobile brand in India for the fiscal

year 2009-10. Handset sales have grown by 123.48% from 1.15 million

units in the quarter ended June 30,2009 to 2.57 million units in the quarter

ended March 31, 2010. Micromax also sells data cards to service providers

in India

Micromax mobile needs no introduction today. Just two years back people

were not aware of the brand at all but today it is .India’s third largest mobile

selling company by volume after NOKIA and Samsung (IDC report).brands

success can be attributed to its ability to understand the need of the market,

aggressive marketing with a budget of 100crore and smart distribution and

channel management.

It is one of the leading INDIAN telecom companies with a futuristic vision

and an exhaustive R&D at its helm, Micromax has successfully generated

innovative technologies that have revolutionised the telecom consumer

space

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1.5 CURRENT PERORMANCE

Micromax is the largest Indian domestic mobile handsets company in terms

of units shipped during the quarter ended March 31, 2011 and the third

largest mobile handset seller in India as at March 31, 2011. On March 31,

2011 the company registered the market share of 6.24% for that quarter,

which grew from 0.59% in September, 2008. Micromax became the fastest

growing mobile brand in India for the fiscal year 2010-11. Handset sales

have grown by 123.48% from 1.15 million units in the quarter ended June

30, 2010 to 2.57 million units in the quarter ended March 31, 2010.

Micromax also sells data cards to service providers in India.

As per IDC report micromax has displaced LG to become third largest

selling mobile handset company in INDIA with a market share of 6%. The

company today sells more than a million handsets a month and is a RS 1600

crore worth brand .The company has presence i more than 500 districts and

90,000 retail outlets, The company started its mobile handset business in

2008 and the challenge was to establish an identity in a market dominated

by bid MNC ‘s like NOKIA and SAMSUNG companies.

Today Micromax has become brand which people relate and look up to for

realizing their individual device preferences and other out of the box

solutions. Micromax is now churning out 1 million phones a month.

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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....

18

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 and

challenge 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....

19

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 it’s 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 appealing

mobile 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.

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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, dual

GSM 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.

1.8 CORE VALUES

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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, mobility

or 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, and

Micromax 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....

22

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.

1.9 BOARD OF DIRECTORS

23

Mr.VikasJainDirector 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 for

having 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 bachelor’s 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.

1.10 ORGANISATION STRUCTURE

24

(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....

This kind of organisation structure makes the managing director to oversee

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

25

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 can’t 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.

26

OBJECTIVES OF THE STUDY

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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 retailer’s 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 retailer’s 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

1.15 LIMITATIONS OF THE STUDY

29

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 can’t 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 information’s on the

pretext that they didn’t 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.

30

RESEARCH METHODOLOGY

2Research Methodology

31

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 constitutes

the 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

2.2APPROACHES OF DATA COLLECTION

32

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 by someone 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),

SCOPE FOR FURTHER RESEARCH

33

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

company’s 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 retailer’s towards micromaxis positive.

H4: Micromax sales process is better.

2.5 RATIONALE OF THE QUESTIONNAIRE:

34

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 company’s product.

3. The third question is about the retailer’s 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. Respondent’s 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

question thus highlights to know the performance of marketing

efforts adopted by the company to increase the sales figure.

Contd...

35

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 numbers

obtained would help me to ascertain the retailer’s quotient.

10.The tenth question ask about the attributes of micromax mobiles

which 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 discrepancies

will 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 retailer’s

and the consumers.

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

by the company in appropriate schedules is very important because

consumer 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 value

addition 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.

16.Since retailers are associated with the selling of products to the end

users they can only depict the future of the micromax business.

36

ANALYSIS OF DATA

DATA ANALYSIS ANDCOMMENTS

37

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.

Q.1. How many Micromax handsets you sell in a month on an average?

38

RESULTS

(Table1.2)

43%

57%

no of handsets sold in a month on an average

0 - 10 Nov-20 21 - 30 31 & above

(Figure1.4)

39

parameters

NO OF RESPONDENT

SPERCENTAGE

RATINGS

0 - 10 0 0

Nov-20 65 43.33

21 - 30 85 56.67 31 & above 0 0

TOTAL 150 100

Q.2. Consumers response towards Micromax products?

RESULTS

PARAMETERSNO OF

RESPONDENTSPERCENTAGE

RATINGS

EXCELLENT 30 20

GOOD 70 46.67

AVERAGE 30 20

BELOW AVERAGE 20 13.33

TOTAL 150 100

(Table 1.3)

20%

47%

20%

13%

CONSUMER RESPONSE

EXCELLENT GOOD AVERAGE BELOW AVERAGE

(Figure 1.5)

40

Q.3 Retailer’s opinion about product’s offer?

RESULTS

(Table 1.4)

50%

23%

17%

10%

RETAILERS OPINIONExcellent Good Average Below Average

(Figure1.6)

Q.4 Product availability of Micromax in the territory?

41

PARAMETERSNO OF


RATINGS

Excellent 75 50Good 35 23.33

Average 25 16.67Below Average 15 10

Total 150 100

RESULTS

(Table 1.5)

10%

43%30%

17%

PRODUCT AVAILABILITY

excellent good average below average

(Figure 1.7)

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

42

PARAMETERSNO OF


RATINGS

excellent 15 10good 65 43.33

average 45 30below average 25 16.67

TOTAL 150 100

RESULTS

(Table 1.6)

3%

57%

23%

17%

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

(Figure 1.8)

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

distributors?

43

ParametersNO OF


RATINGS

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

40 & above 25 16.67TOTAL 150 100

RESULTS

(Table 1.7)

3%17%

57%

23%

PRODUCT DELIVERY

excellent good average below average

(Figure 1.9)

Q7. Marketing efforts of Micromax company as compared to its

competitor’s?

44

PARAMETERSNO OF


RATINGS

excellent 5 3.33good 25 16.67

average 85 56.67below average 35 23.33

TOTAL 150 100

RESULTS

(Table 1.8)

7%

30%

63%

1%

MARKETING EFFORTSexcellent good average below average

(Figure 2.0)

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

RESULTS

45

PARAMETERSNO OF


RATINGS

excellent 10 6.67good 45 30


TOTAL 150 100

(Table 1.9)

7%

30%

63%

1%

PROMOTIONAL SUPPORT excellent good average below average

(Figure 2.1)

Q.9 Overall opinion about Micromax by the retailers?

46

PARAMETERSNO OF


RATINGS

excellent 10 6.67good 45 30


TOTAL 150 100

RESULTS

PARAMETERSNO OF


RATINGS

excellent 45 30good 85 56.67

average 15 10below average 5 3.33

TOTAL 150 100

(Table1.10)

30%

57%

10%

3%

overall opinion of retailer'sexcellent good average below average

(Figure 2.2)

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

47

RESULTS

(Table 1.11)

43%

30%

17%

10%

IMPORTANT ATTRIBUTES PRICE QUALITY DEMAND BRAND IMAGE

(Figure 2.3)

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

48

ATTRIBUTESNO OF


PRICE 65 43.33QUALITY 45 30DEMAND 25 16.67

BRAND IMAGE 15 10TOTAL 150 100

RESULTS

PARAMETERSNO OF


excellent 14 9.33good 130 86.67


TOTAL 150 100

(Table 1.12)

9%

87%

3% 1%

Comparing to other company products, you rank Micromax

products as

excellent

good

average

below average

(Figure 2.4)

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

RESULTS

49

PARAMETERSNO OF


very high 0 0high 0 0

reasonable 140 93.33low 10 0.67

TOTAL 150 100

(Table 1.13)

93%

7%

comparing the price of micromax products with competittor's

very high high reasonable low

(Figure2.5)

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

RESULTS

50

(Table 1.14)

80%

17%

3%

opinion on discount offered by the company

Very attractive Fairly attractive Not attractive No offer

(Figure2.6)

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

RESULTS

51

PARAMETERSNO OF


Very attractive 120 80

Fairly attractive 25 16.67

Not attractive 5 3.33

No offer 0 0

TOTAL 150 100

PARAMETERSNO OF


Excellent 20 13.33

Good 95 63.33

Average 30 20

Below Average 5 3.34

TOTAL 150 100

(Table1.15)

67%

20%

13%

AFTER SALES SERVICEOF MICROMAX MOBILES

Excellent Good Average Below Average

Figure 2.7)

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

RESULTS

52

PARAMETERSNO OF


Durability 10 6.67

Availability 110 73.33

Design 27 18

Any other 3 2

TOTAL 150 100

(TABLE1.16)

7%

73%

18%

2%

elements you miss in micromax handsets

Durability Availability Design Any other

(Figure 2.8)

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

RESULTS

53

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)

67%

20%

13%

future of Micromax mobile handsets by predicted by the retailers

Excellent Good Average Below Average

(Figure 2.9)

54

RESULTS

Following results has been interpreted from the research work.

55

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 no’s 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:

Consumer’s 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.

3. COMMENTS

56

Near about 50% retailer’s marked that micromax product 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 that

exerts 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 options

of 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.

5 COMMENTS

57

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 don’t 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 company’s 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.

7 COMMENTS

58

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 didn’t 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.

9 COMMENTS

59

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

retailer’s i.e. the central parts and the outskirts of Sambalpur area, are with

same view point that the products of micromax are good.

In addition to that few retailer’s in the central part of Sambalpur 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 it

will 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...

60

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 giving

enormous 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 good it’s 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.

12 COMMENTS

61

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.

14 COMMENTS

62

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 still

technological 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.

16 COMMENTS

63

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.

64

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 competitor’s product.

(Table1.18)

65

DISCUSSION AND CONCLUSION

66

DISCUSSION AND CONCLUSION

TO ANALYZE THE GAP AND SUGGEST STRATEGY TO

RETAILER”S, 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...

products 2008 2009 2010 TOTALpercentage to total

average price per unit

best selling year

67

product1 12000 9900 10700 32600 16.63 10.76 2008product2 16000 19150 21393 56543 28.85 10.87 2010product3 9000 10350 11903 31253 15.94 10.87 2010product4 10000 11500 13225 34725 17.71 10.87 2010product5 12000 13550 15308 40858 20.87 10.86 2010product6 0 0 0 0 0 0 product7 0 0 0 0 0 0 product8 0 0 0 0 0 0 product9 0 0 0 0 0 0 product10 0 0 0 0 0 0 TOTAL 59000 64450 72529 195979 100 10.84 average 5900 6445 7252 19597 2010

max 160001915

0 21393 56543 10.87 min 0 0 0 0 0 2010

Table 1.19

20%

27%15%

17%

20%

sales analysisproducts1 products2 products3 products4 products5products6 products7 products8 products9 products10

Figure 3.0

Contd...

year sales% change

in sales sales units% change

in unitsaverage unit

price2008 59000 5900 10

68

2009 64450 8.45 5859 0.69 112010 72528 11.13 6307 7.1 11.49total 195978 18066

Table 1.20

1 2012345678

Chart Title

Series1

percentage change in units

perc

enta

ge ch

ange

in u

nits

Figure3.1

1 20

2

4

6

8

10

12

Chart Title

Series1

percentage change in sales

perc

enta

ge ch

ange

in sa

les

Figure 3.2

Contd...

Percentage sales is calculated by

69

percentage sales for 2009 59000/64450*100 = 91.54

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

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

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

Retailers think that micromax needs more up gradation in order to compete with branded items. The reason to mention this is that Indian consumers now comprehend that quality comes with price and better quality means a super brand. So there rating is good when it comes to micromax.

Micromax has ventured into Sambalpur market by showcasing the feature 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.

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

1. Handsets with 30 days battery backup 2. Handsets with Dual SIM / Dual Standby

70

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 Sambalpur

Micromax Face book ad

Gravity,

MTV, (Co-Branded phones)

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

71

RECOMMENDATIONS

RECOMMENDATIONS

72

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 partners

from 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

customer’s mobile phone by using sms softwares.

Company should provide attractive sign/glow boards to

retailers for advertising the new launch of models.

Now a day’s social media is most liked by people and are

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

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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

Web based sources

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www.micromaxinfo.com

www.nokia.com

www.google.com

www.indiacellular.com

Book References

consumer behaviour and research (S Sumathi, vikas publications)

sales and distribution management ( by Tapan Panda, oxford publications)

Video tape

NDTV Profit Money mantra: can mobiles push up the economy

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QUESTIONNAIRE

QUESTIONNAIRE:

Dear Sir/Madam,

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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 TOWARDS MICROMAX MOBILE SETS”.

This project is to be submitted to the AIMA for the award of PGDM. Hence I, request you to kindly spend few minutes of your valuable time in answering 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-

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

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

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

2. Customer’s 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 by Micromax 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 with you



10 Which attributes you consider most important in mobile handsets.

a) Price [ ] b) Quality [ ]

c) Demand [ ] d) Brand Image [ ]

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THANK YOU

Aum Sri Amma Bhagwan

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project report on retailers perception about micromaxx mobile handsets

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