The startup culture in India has now thrown light on some of the major Indian startups, which have made a mark globally. Micromax, an Indian tech company, is one of those.
In 2014, Micromax surpassed Samsung to be the number one mobile phone manufacturer in India with 34.3% of the market share in terms of volume, achieving a benchmark most brands in the market can merely dream of. From being categorised as a low quality Chinese mobile phone company, Micromax has emerged to be the sole Indian mobile phone brand to carve a niche for itself, not only in India, but globally. Micromax is now the 10th largest mobile phone vender in the world, selling more than a million handsets every month. What has been the reason for this spurt in the growth of Micromax in such a short period of time? Will it be able to sustain its position for long?
Let’s find out
There are multiple reasons as to why Micromax has done so well over the years, ranging from pricing to marketing to appropriate target groups. However, none of these factors individually is a reason for this tremendous growth. Instead, it is a harmony of all these and many more factors that has caused this phenomenon. It’s all about an effective marketing mix- Product, price, place and promotion employed by Micromax.
We now look at the various elements of the marketing mix that are responsible for the Micromax revolution
- Product: Micromax focusses a lot on development of an all round product that creates a demand for itself in the market. It follows a consumer centric approach, i.e. it produces only those products which the consumers would like to buy. The phones are usually loaded with latest features and seldom tend to disappoint the consumer with respect to both hardware and software. The product they offer in many ways, match up to the premium products and flagship devices from other major players. For example, the Micromax Canvas 2 was a ground breaking device with features matching up to flagship devices by Samsung and Sony. Similar is the case with YU Yureka, which is again a ground breaking device and matches up premium devices like Samsung Galaxy S5. At the same time, Micromax launches up to 50 different models of smartphones every year, which caters to needs of different consumers with different requirements.
- Price: The factor that sets Micromax apart in true sense is the pricing of the products they offer, whether it is for the mobile phones, tablets, televisions or any other product that Micromax offers. They sell very close to their costs and use off the shelf technology, instead of proprietary technology, which is relatively more expensive. When Galaxy S5 from Samsung sells for more than Rs 25000 as of now, YU Yureka, a phone with similar features, sells at around Rs 10000. India has the second most registered mobile users in the world and has the third largest number of smartphone users. However, as the users in India do not prefer spending much on mobile phones, primarily due to lower income levels and income disparity, Micromax offers a much needed respite. However, it does not cater to the lower income groups alone. For higher income groups, Micromax devices are like fast fashion as they offer a regular replacement and upgradation to new devices, that too with decent features at a low price, which is a boon for Indian youth
- Place/ Physical distribution: There is not much to talk about in this element of the marketing mix, except for the fact that Micromax products are usually available at all times across various markets across both online and offline platforms in abundant quantities, which ensures brand visibility and customer retention. There have been no complaints of Micromax products being out of stock for long periods of time. An effective B@C supply chain management makes this possible. Along with an effective B2C supply chain that encompasses markets over large geographical areas, Micromax also has a B2B supply chain in place, which make corporate sales possible, ensuring bulk sales.
- Promotion: One place where Micromax prides itself is effective and impactful marketing and promotion strategies, with respect to its counterparts. It cannot match the marketing budgets of premium companies like Apple and Samsung, it has done sufficiently well for itself in this area. With endorsements in the past by Akshay Kumar and Twinkle Khanna, the extremely talked about advertisement featuring the Hollywood biggie Hugh Jackman, to current endorsements by the popular actor Chitarangada Singh, Micromax has delivered some impressive advertisements, with focus on the product features and price, which develops a good brand image before the people. Along with that, Micromax has sponsored various international and national level events such as various cricket tournaments, which ensures immense marketing of the product.
With its recent performance, it seems that Micromax has been doing everything right. However, it has been facing some criticism due to inferior after sales services and lack of market penetration in urban markets. However, the way Micromax has been going, it might soon overcome these obstacles as well. Micromax has already introduced measures such as extended warranty for 2 years and increased number of service centres. However, it may face a lot of competition at the global stage with emergence of brands like One Plus, Xiomi, Asus and other such brands, which have been employing a strategy similar to Micromax and are setting up global base very rapidly. How Micromax fares against such players, only time can tell.
Vidit is a student at SSCBS, DU. The views expressed are his own based upon the analysis and research he did on the topic from various books, reports and web articles. He regularly writes for Corporate Monks as a research associate. The writer takes person responsibility for the ownership of the content shared and incase some sources have not been given credit, you can directly mail him at-.Vidit.firstname.lastname@example.org