Mkt - Mobiles Phones

Marketing presentation on the Mobile Phone market in India.
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Marketing Presentation Group V Aditya Gupta Rashi Dalmia Shreyas Meher Presentation Timeline Introduction Background Major Players & Market Share Strategies Adopted Emerging Trends The Future Introduction Government Regulations Industry Factors for high growth Smartphones The Mobile Industry Government Regulations 1.Till1984, telecom services were under the state governemnt control with the Department of Posts and Telegraph. 2.In 1985, the Depertmentof Telecommunication was set up and 3.In 1994 the National Telecom Policy was set up – Liberalisation was allowed, foreign firms were eligible to 49% of the total stake, 4.The market did not increase much until 1997 – why? 5.Telecom Regulatory Authority of India Industry – Reasons for High Growth 1.Highly competitive - The HerfindahlHirschman Index of 2000 - availability of more affordable handsets, including smartphones, and significantly lower call rates 2.Growing income of middle class families 3.Low rate of mobile connection plans 4.Technological advancement 5.India offers a demographic profile that few countries can match. The domestic demand for handsets is expected to touch 350 million units per year by 2020 Cellular Operators Association of India forecasts the handset market will reach 1.24 billion – one mobile phone for every person living in the country – within 2015. Smartphones • India is among the fastest growing smartphone markets in the world, being the 3rd largest in the world. This trend is evident by the massive influx of handsets into the country, 22 million Smartphones were shipped in India in Q4 2014 alone. • The number of devices launched in India during the first half of 2015 stood at 857 and an estimated 1,700+ devices will be launched before the end of the year. Smartphones penetration in India's mass market has accelerated from 2.5 million handsets in 2009 to about 27 million in 2014 and is In 2012 they accounted for 10-12 per cent of the total handset market. This share is expected to rise to half of the market’s total expected sales of 156 million units by 2017. Rural buyers 1. Increase in procurement price by Govt 2. Increase in agri employment boosted by good harvests and governemnt plans like National Rural Employment Guarantee Scheme (NREGS) that guarantes 100 days of emplyment to one memeber of every rural househols and raised wages Why is India the next frontier? “India is currently the second-largest telecommunication market and has the third highest number of internet users in the world  Strong Adoption Large Investments into the country “ Government backing Samsung is a South Korean multinational conglomerate headquartered in Samsung Town, Seoul. Diversified into areas including food processing, textiles, insurance, securities and retail Highly globalized in electronics, particularly mobile phones and semi conductors. Highest market share in India – 22% (IDC) Outright market leader in India High volume support from sub 15,000 rupee phones such as Galaxy Star Pro, Galaxy S Duos, etc. Aggregate revenue of INR 7,891 crores in 2012 Indian consumer electronics company headquartered in Gurgaon, Haryana Established in 2000, as an IT software company Entered the mobile handset business in 2010. Market share is 2nd – 18% (IDC) As of Q3, 2014 Micromax is the tenth largest smartphone vendor in the world Most competes in the lower-middle tier of smartphones, with a low share in feature phones Total revenue – INR 2,289 crores in 2011 In 2014, they created a spinoff venture named YU Televentures Intex Technologies was incepted in the year 1996, and is an Indian smartphones brand Present in a lot of consumer electronics products, and IT accessories Is currently at number 3, in relation to market share of smartphones (8%) Intensive marketing efforts, along with a focus on lower end mobile phones Lava International Ltd. Is an Indian mobile handset company In 2012, they created a spinoff called XOLO along with Intel They also entered the tablet business in 2012 Only Indian brand to make phones for both Windows Phone as well as Android Heavy marketing spend, along with having a good amount of visibility among its distributors Market Share of 7% Xiaomi is a Chinese company which entered India in early 2014 Known for their value for money products, and good quality It is the largest mobile phone vendor in China Entered the Indian market in July 2014 and sells via Flipkart, Amazon, and Snapdeal Case Study Market Share – 4% of the smartphone market share Nokia is a Finnish multinational communications company Annual revenues of around €12.73 billion Nokia was dominant in the mobile market before the advent of Apple’s iPhone, which shook the market apart In 2011, they made a pact with Microsoft to exclusively make Windows Phone devices How did Xiaomi succeed? High quality products Innovative products Ecosystem development Great relation with the Customer Innovative Marketing methods Fast Iteration cycles & Lean manufacturing High Quality Products Xiaomi products are known for their value proposition Products having a relatively low cost, but offering high levels of quality Decent profit margin, even with low prices Similar to the Kindle model, created by Amazon Innovative Products Constant lowering of costs so as to further enhance their accessibility Development of MiUI, which is their version of Android Extremely intuitive features for various age groups Ecosystem Development Great relationship with the customer Removed barriers between employees and customers via the creation of forums Direct communication possible Social activities both online and offline led to creation of fans Also led to a fast iteration cycle, based on actual usual feedback Innovative Marketing Methods No actual marketing budget Exclusive marketing through various social media platforms Decrease in overall costs, as marketing costs are getting bigger and bigger Use of Hunger marketing Use of accessory sales to make the actual profits (Amazon) Fast Iteration and Lean Manufacturing Xiaomi follow a very fast iteration period, where customer reaction and responses inform them on the needs and wants of the customer base. Xiaomi also follows the ‘Just in Time’ method of production, where they only produce as needed, and production is more often than not based on last weeks sales and demand. This helps them save on inventory costs, and also prevents stocking up of unsold units. Thank You!