Consumer Durables Ppt
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Girish Jindal – 071092Ashutosh Yadav –
071095Robinder S. Wasu –
071255Rajat Gupta – 071419
Harsh Mohan - 071458
Road MapRoad Map
What are What are ConsumerConsumer
Durables ?Durables ?
Key FindingsKey FindingsThe rapid rise in incomes will lead to an even faster
increase in demand for consumer durables and
expendables
As a result, the ownership of goods will also go up
significantly
What will power this is the increased usage in different
income classes..
…coupled with the rise in the size of the Great Indian
Middle Class
Demand Of Consumer Demand Of Consumer
DurablesDurables
1995-1996 2001-2002 2005-2006 2009-2010
Car276 788 1560 3466
Refrigerators
1850 3006 4335 6774
Motorcycles760 2599 4663 8369
White Goods3437 6024 8727 13149
-- Figures in ‘000
Growth Of Mobile Phones Growth Of Mobile Phones
In INDIAIn INDIA
Contd…Contd…....• Revolutionary steps taken by the government.
• 4-5 million people buy mobile phones every
month.
• Services in ~ 5000 cities & towns, & even ~1
lakh villages.
• Easy availability.
• Mobile is the primary driver of growth.
Contd…Contd…
• 584 million mobile phone connections as of
March 2010.
• Industry is expected to reach a size of
Rs 3,44,921 crore by 2012
• Growth rate of over 26 %.
• Generate employment for about 10 million.
Few Statistic of Indian Few Statistic of Indian
CommunicationCommunication
Telephony Subscribers (Wireless and Landline): 562.21
million (Dec 2009)
Cellphones: 525.15 million (Dec 2009)
Land Lines: 37.06 million (Dec 2009)
Broad Band Subscription: 7.83 million (Dec 2009)
Monthly Cellphone Addition: 19.20 million (Dec 2009)
Teledensity: 47.89% (Dec 2009)
Projected teledensity: 893 million, 64.69% of
population by 2012.
NOTHING LIKE ANYTHING
VisionVision• To develop path-breaking technologies and
efficient processes.
• To incubate newer markets, enliven customer
aspirations and continue to make Micromax a
trusted market leader amongst people.
• The ideology(MM’s) stems from its rooted belief in
'Innovation' and delivering "nothing short of the
best".
HistoryHistory• It was founded in 1991 by Rajesh Agarwal as a
distributor of computer hardware for brands like
Dell, HP and Sony.
• In 1998, three more people Sumit Arora, Rahul
Sharma and Vikas Jain joined Micromax as co-
founders.
Contd…Contd…• Introduced Micromax Mobiles in the year 2008
in India by Rajesh Agarwal, Sumit Arora, Rahul Sharma and Vikas Jain.
The Entrepreneurial The Entrepreneurial IDEAIDEA
• On a hot summer afternoon in 2007, executives at a small Indian
pay phone company called Micromax noticed a curious sight.
• In a village in the eastern part of the country, they watched people
line up next to a man with a car battery strapped to the back of his
bicycle and hand him a few rupees to plug their cell phones in for a
half hour's worth of charge. The villagers' homes didn't have
electricity.
• Less than a year later Micromax sold its first cell phone,
the X1i. It came with an oversized battery, a small
screen, and tweaked electronics that made the phone
run for as long as five days, and on standby for as many
as 30 days.
Micromax ? Micromax ?
• Micromax, based in Gurgaon.
• Introduced 37 phones in just over a year and a half.
• Designing in India and manufacturing with partners in
China.
• Micromax has 23 domestic offices across the country.
• International offices in Hong Kong, USA, Dubai and
now in Nepal.
•Currently there are more than 40,000 stores.
•Company plans to increase their stores to 70,000 .
•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 meager 0.59% average.
ProductsProducts
StrategyStrategy
STRATEGIESSTRATEGIES
• Their marketing strategy:
focuses on the unique
functionalities
to further develop their reputation
innovation.
• Since their entry into the Indian mobile handset
market in March 2008 they have introduced more
than 40 distinct mobile handset models and as of
August 31,2010 they have sold more than 30
distinct mobile handset models.
• They believe that their product development
capabilities have enabled them to establish
themselves as an innovative Indian mobile
handset company.
Contd…Contd…• They differentiate themselves from their competitors
through :
innovation
design
use of advanced technologies
in-depth understanding of rapidly
changing consumer preferences .
RetrenchmentRetrenchmentCombinationCombinationCombinationCombination
The Grand StrategiesThe Grand StrategiesThe Grand StrategiesThe Grand Strategies
StabilityStabilityStabilityStabilityGrowthGrowthGrowthGrowth
Combination Combination StrategyStrategy
• Uses growth as well as stable strategy
• Micromax in 2010 is now India’s third-largest GSM mobile
phone vendor.
• Market share of 6 % after Nokia (62 %) and Samsung (8
%), according to research firm IDC with a stable growth rate
of 4.1%.
• It sells anywhere from 700,000 to one million mobile
phones every month.
• Selling nearly Rs.1,500 crore worth of phones annually.
Contd…Contd…Company 2008-09 2009-10 Growth/ Decline
(in percentages)
Nokia 64.0 52.2 -11.8
Samsung 10.0 17.4 7.4
LG 4.5 5.9 1.4
Micromax --- 4.1 4.1
Spice Mobiles 2.0 3.9 1.9
Karbonn --- 3.0 3.0
Sony Ericson 6.0 3.0 -3.0
ZTE 5.6 1.9 -3.7
Huwaii 1.3 1.7 0.4
Motorola 3.5 1.0 -2.5
Other companies 3.1 5.9 2.8
Competitive Competitive StrategyStrategy
Cost LeadershipCost Leadership• They believe that consumers in India have unique
preferences with respect to mobile handsets if
available at affordable prices such as
• Long battery life
• Dual GSM capability
• Low-cost QWERTY phones
• Universal remote control
• Gaming phones
StrengthsStrengths• Low cost—about 30 per cent cheaper than MNC
equivalents.
• High on features, some of them better than global models.
• Will offer latest features like 3G, Android at a fraction of
MNC costs.
• Easy availability to all areas urban as well as rural.
• Effective Advertisement.
• Cater the needs of customers in the ‘Best’ & ‘Cheapest’
way possible.
WeaknessWeakness• Quality, design often not up to the mark, use
primitive software
• Servicing could be an issue, most companies are
primarily importers
• Government rules on components, materials
could erode price advantage
OpportunitiesOpportunities• Ever increasing mobile demand.
• For mobile we have 400 million-plus users.
• As the fastest growing telecommunications
industry in the world, it is projected that India will
have 1.159 billion mobile subscribers by 2013.
• New technologies like 4G still not available in India.
• Targeting the high end customer.
ThreatsThreats• Ever increasing competition with same traits (eg.
LAVA Mobile, Lemon Mobile etc..)
• Big players catching up with cost differentiation of Micromax.
• Technology is changing on a daily basis, so can loose the race where ‘to be the first is everything’.
Recognition and Recognition and AwardsAwards
• Micromax is now India’s third-largest GSM
mobile phone vendor with a market share of 6 %
after Nokia & Samsung
• Awarded the Most Impactful Launches in 2010 by
Pitch India.
• Recognized as a Major Challenge for Nokia &
Samsung Mobiles.
Future…Future…
• diffusion of mobile phones will continue till 2012-13.
• 71 mobile phones per 100 inhabitants in India at the
end of year 2015-16.
• number of mobile phones will exceed the number
of people in the country by 2022-23.
• Total mobile phone demand is projected to increase
from 90 million in 2005-06 to 433 million in 2010-11
and nearly 900 million in 2015-16.
Predictions:
• Thus Micromax has a lot of scope in the coming future.
• Already it has launched some 43 models in the market
with at least 3 more by the end of 2010.
• "The company has registered a phenomenal
growth and may be looking to raise this kind of
money to open its own production plant in India",
said an analyst with a Mumbai based broking firm.
• Associates infused $45 million (Rs 204 crore) in
Micromax valuing the company a little above Rs 1,000
crore.
Our VerdictOur Verdict• The company has nearly two decades of expertise and
continuous research in India and strives to remain as
the vanguard of technological advancement in the
country in the quickest way possible.
• Micromax mobile phones remain at the top spot today
in India giving other international brands surely a tough
time.
• “We are not the poor cousins of Nokia,” says
Vikas Jain founder of Micromax Mobile. This is the
attitude that has brought them this far and will take
them further.
• Their strength to cater the needs of
customers(battery life, qwerty keypad, Dual Sim etc.)
in the most effective way is what has made them
succeed this far and will continue doing that.
The Bottom LineThe Bottom Line
Micromax is gaining market share in India by making cheap phones with long
battery life and offering other features local consumers want.