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Two-year-old Micromax becomes India's 3rd largest mobile phone vendor: Can they become No.1??

Created by : Sujatha srivastava, Associate/Senior Associate, AT Kearney  | 04 28 2010 11:45:10 +0000
Industry : ITES / BPO / Customer ServiceFunctional Area : Mobile Vending(Others)
Keywords : india mobile phones vendor cell phones micromax micromax cell phones cell vending
Activity:  3039 views;  last activity : 03 10 2011 08:30:56 +0000

Micromax, the David, is now the third-largest GSM mobile phone vendor in India, after Nokia and Samsung, with a market share of 6%, according to research firm IDC. The Rs 1,600-crore brand, which sells around 1 million mobiles every month, has a presence in more than 500 districts through 70,000 retail outlets.


http://www.priceindia.net/wp-content/uploads/2010/03/Copy-of-micromax-q3-image_regional-avatar.jpg

Just two-years old, still in its nappies, this David has pushed Goliaths into a tight corner and is giving them a run for their money.

So, can Micromax become no.1 in the mobile vending market??

  
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Top Argument
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In my opinion Micromax may surpass Nokia & Samsung. The way they have approached the Indian market & catered the segments is really amazing. They are fast in innovating & implementing things.

The company already has a universal remote control phone, one that can be paired to household appliances like the TV, AC, to act as a remote control for them. Then there are gravity sensitive phones and a whole gamut of different feature laden phones that the company is guarded about, but is going to launch in the days ahead.
By Sujatha srivastava, Associate/Senior Associate, AT Kearney  04 28 2010 11:45:10 +0000
 
Top Argument
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Very confused with this Micromax market share. According to Times of India of 29-Dec, G'Five has dislodged Samsung from its #2 position in India and has a 10.6% market share. Check this: http://timesofindia.indiatimes.com/business/india-business/Nokia-slips-GFive-pips-Samsung-to-No-2-slot/articleshow/7182191.cms
By ktaja , Consultant, Independent Consultant  12 31 2010 01:02:06 +0000
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I support your views, Sujatha.

& Best of Luck to Micromax & want to see it on No. 1.
By SHRIKANT MANOHAR DANKE, Consultant, Project Management Consultancy Firm  | 03 09 2011 06:45:44 +0000
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think same as you.
By puneet kaushik, Operations Manager,Financial Analysis,hedging, NBFC  | 07 25 2010 12:33:33 +0000
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I agree with prabhakar raos statement ,If the quality is maintained in both marketing stratagy product  they can defenetely reach the top slot.

Rajagopalan


By srinivasanrajagopalan , manager marketing, ivr prime urban developers limited  | 07 24 2010 07:32:05 +0000
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THANK YOU SUJATHA.

FIGURES ARE QUITE CONVINCING.THE START IS GOOD.THEY CAN DEFINITELY REACH No I POSITION,MAINTAINING THE SAME STANDARD OF QUALITY AND SERVICE,ADDED WITH PRICING ADVANTAGE.HAPPY SELLING.
By s.baalu , Consultant, XYZ LTD  | 05 01 2010 13:28:38 +0000
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it's a market any thing can happen. but chance to rise for mac..
By puneet kaushik, Operations Manager,Financial Analysis,hedging, NBFC  | 04 30 2010 17:42:33 +0000
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Micromax has done a simple thing, following CK's philosophy of Bottom of Pyramid market for phones. India has been at the mercy of Nokia's of the world and paid thru the nose for the same. Some may argue that the price we paid and are paying are well worth the money due to issues of quality, but did Nokia not start like this. Micromax has the potential to be a leader is a market which is poised to be the biggest in the world for mobile phones in future. 

What does a average Indian want from his phone Voice clarity, Seamless connectivity, some games, Radio & Bluetooth. The upper crest wants more like e-mail connectivity etc. but by estimates this should be around 20% of the market and uses Nokia & Samsung.

Micromax addresses the mass consumer and has great future but has 2 major obstacles - the first is consistent quality & the second is service availability. The day Micromax does this magic no body can stop it.
By Goutham , Upgrades Engineer(Sales), Control Components Inc.  | 04 30 2010 14:26:57 +0000
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In todays time we can not predict any thing about these high end gadgets,every month a new model is coming in the market with better features, who knows who is number one?
By B.Mehernath , Marketing & Technical Head, Bondit Construction Chemicals Pvt. Ltd.  | 04 30 2010 06:53:05 +0000
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Micromax is definitely the upcoming brands in handset sector because of dual sim feature and price point.To sustain the position they need to have sufficient touch points which i think is still lacking.To compete with Nokia and Samsung i think that will be the differentiators. Still people have a mindset that nakia has got the best battery backup and samsung has got the best features,they need to overcome that also.
By subrata kumar, BD Manager, Unitech Wireless  | 04 30 2010 06:09:51 +0000
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Yes, this product maintains same strategy in future also. I  am sure because, how this company came  farward in a short time, So in future we Indian use these swadeshi products, wihout having any technical problems and added with new features....
By mahesh , Software Developer, Vidit Technologies pvt. Ltd  | 04 29 2010 12:07:38 +0000
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yes micromax covers indian market in a very short time, its due to its marketing, service, technology and the main point low cost. soon it will become no one...
By rajneesh , jr. engineer, ericsson india pvt. ltd.  | 04 28 2010 16:39:41 +0000
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yes the technology and functions quality etc all are available in the same secondly because of competetion nw the product will sell at the price at price which ti should be given to customer and also because of less competeion in starting years the other mobile selling companies has earned a lot of high percentage of profits
By virender kumar, REGIONAL BUSINESS MANAGER, CELON LABS LTD  | 04 28 2010 15:46:13 +0000
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Yes they can, in fact they are on their way I presume. Being one of their users, I got no grievances what so ever. They have the same features as to the top ones, only they have to confirm heir quality.
By Avisek Roy, Executive, Wipro Consulting Services  | 04 28 2010 14:37:52 +0000
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If they could become No. 3, from Zero, in Two years, they can very well become No. 1, soon, if their marketing strategies continue to be as effective as they are Today.
By M. Prabhakar Rao, Author of "Mayhem Of The Miserables!", http://www.smashwords.com/books/view/52075  | 04 28 2010 12:22:26 +0000
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its ture Micromax become 3rd largest mobile phone vendor in two year due to lowest price and maximum applications... But it is not that it will become no-1,Because i am using micromax windows phone from last 6 months and i find there is so many problem and whatever he lunch in last 3 months in Anoride series. in these phone most of the application is not working properly. so if they change its hardware then may be.......
By MD ASIF ALAM, Assistant Project Manager, U foam  | 03 10 2011 08:30:56 +0000
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I agree with the above arguement. I am of the openion that It will take more time and money for Micromaxto reach top position
By srinivasanrajagopalan , manager marketing, ivr prime urban developers limited  | 03 10 2011 06:27:07 +0000
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It no doubt helps in stepping into feature rich phones...but quest for better performance and brand consciousness makes it in favor of Samsung or Nokia in the next buyout/switch...
By Prad Roy, Lead Developer, Avaya India Pvt Ltd  | 12 01 2010 15:46:33 +0000
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Being No.1 long way to go for micromax.............Nokia the No. 1 manufacturer has 52% share where as micromax 5+%....I agree that the devices ae good and are easily accepted by customers...........

one should understand the segment they have pitched in and perception of organisaton in customers mind..........they are predominantly low cost device for rural market...........
By Shailesh A Wankhade, Business Consultant, Phoenix Technologies  | 07 23 2010 20:21:10 +0000
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Dear Sujatha,

Mobile is good. It will take time if they heartly focus them on after sales service & the availibility of acessories in market.Ageing after 2 years I gathered a better experience regarding acessories.
By Debasish Dutta, Sales Head, R.H.Automobiles Pvt Ltd  | 05 02 2010 05:47:07 +0000
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I agree that micromax has gained very big access in the indian market through the price policy,ofcourse their selling stratagy is good.However they may not reach no 1 .Asustained quality standards,and good service  may pay in future by that time the present leaders gain advantage.this is my openion
By srinivasanrajagopalan , manager marketing, ivr prime urban developers limited  | 04 30 2010 07:22:55 +0000
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Though I am a proud owner of a MICROMAX, i would not be so lofty as to say that it would surpass the Nokia's and Samsung's etc.

Micro Max has a long way to go in terms of gaininga loyal consumer bae. Its the initial WOW factor thats getting them the sales. Its what comes after in terms of services and keeping a consumer happy that LOYALTY will set in. Value adds, service centres and CRMs will eventually have to be in place alongwith a mission that sets it apart from a melee of Indian manufactirers who have surged suddenlhy!! The Olive's, Maxx, LAVA's .... They are all visible and have created a huge noise, who dies with a whimper will purely depend on the focus and business plan. The company which has a set of clear goals, funds ad a strategy in place will eventually win!!
By Makrand Bhave, Marketing & MICE, WIZCRAFT International  | 04 29 2010 05:44:06 +0000
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The pace at which the Micromax is gaining its share is amazing and even threatening to biggies in the market. But the question is, after a big wave  "Can it sustain the phenomenal growth?".

I have seen people who constantly change phone but loyal to a particular brand irrespective of the features offered by the other brand in the same price band. Yes, Micromax mobiles are cheaper than the other brands, but if my understanding is that the sales it obtained are from the customers who do not  care too much about the quality.

If it has to crack the market of Nokia or Samsung, Micromax has to improve the quality a lot. Obviously improvements is leading to increase the cost of the mobile and  may affect the Micromax which is following cost leadership policy.
By deepan , Sr.Research Analyst, Beroe  | 04 29 2010 04:47:12 +0000
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