Submitted by:

Anjney Verma PGP14009

Chandan Lakhani PGP14067

Gaurav Awal PGP14070

Gaurav Kumar PGP14071

Lokesh Kumar PGP14028

Final Project – Analysis of Mobile Phones

Submitted to –Prof. Pingali Venugopal

Subject: Sales and Distribution

Management

Executive Summary

This report provides analysis of the marketing, sales and distribution aspects of three mobile phone

brands –Apple, Micromax and Intex and then trying to find out the gaps in the marketing and

selling strategies of these brands. This project is a small demonstration of the knowledge and skill

that we have attained through the Sales and Distribution Management Course.

The project was broadly classified into five parts –choosing the product category, identifying three

brands of that product category, assessing the Marketing and the Sales strategy for all the three

brands chosen for the product category and based on this assessment finding out the current gap

in marketing goal and possible areas of conflict between marketing and selling. These parts were

further sub categorized further. The product taken by our group was mobile phones. Out of the

three mobile phone brands that were supposed to be chosen, one was ‘Apple’, the second was

‘Micromax’ and the third was ‘Intex’. These brands were considered on the basis of its presence

in the international, national and regional arena.

After selecting the product category and three brands, the next step was to analyze the marketing

plan of all the three brands. In this first, we had to assess the current behavior of these brands

towards the consumer. Second, we had to understand the different marketing strategies adopted by

these brands which was done by studying its advertisement strategies and various secondary

sources. The third was to map these marketing behavior displayed by these brands on a generalized

framework which was discussed in the class.

The next part was to analyze the selling aspect of these brands. This was done by studying the

selling activities which included discussing with different retailers about the available consumer

schemes, pricing and discount options etc. After studying the selling activities, we identified the

impact of these selling activities on the attributes the company was promoting. This was done by

mapping these efforts on a matrix which was taught in the class.

The last part was to evaluate these brands and try to find out the gap in the marketing strategy and

possible conflict between marketing and selling. Apart from this a comparative analysis was also

done among these brands and then some recommendations were also suggested in order to further

improve the consumer appeal of these brands.

Contents Executive Summary ...................................................................................................................................... 2

Introduction: .................................................................................................................................................. 4

Industry Analysis .......................................................................................................................................... 5

Porter’s Five Force Analysis ..................................................................................................................... 5

Marketing Aspects ........................................................................................................................................ 7

1. Apple ................................................................................................................................................ 7

Current Behavior: ............................................................................................................................... 7

Marketing Strategy: ............................................................................................................................ 7

What is Apple’s marketing trying to achieve? ................................................................................. 9

2. Micromax ....................................................................................................................................... 10

Current behavior .............................................................................................................................. 10

Marketing Strategy: .......................................................................................................................... 10

What is Micromax’s marketing trying to achieve? ........................................................................ 13

3. Intex ................................................................................................................................................ 14

Current behavior .............................................................................................................................. 14

Marketing Strategy ........................................................................................................................... 14

What is Intex’s marketing trying to achieve? ................................................................................. 16

Selling Aspects............................................................................................................................................ 17

1. Apple .............................................................................................................................................. 17

2. Micromax ....................................................................................................................................... 19

3. Intex ................................................................................................................................................ 20

Generalized framework for Marketing and Selling .................................................................................... 21

MARKETING: ...................................................................................................................................... 21

SELLING: ............................................................................................................................................. 21

Evaluation ................................................................................................................................................... 22

Gaps in Achieving the Marketing goals .................................................................................................. 22

1. Apple .......................................................................................................................................... 22

2. Micromax ................................................................................................................................... 22

3. Intex ............................................................................................................................................ 22

Recommendations ....................................................................................................................................... 23

Comparative Analysis ................................................................................................................................. 25

Introduction:

Mobile phones have become a salient part of our lives. Cell phones have been one of the biggest

innovation since mankind embraced technology and have changed the way we communicate with

each other. In India the smartphone penetration is increasing at a rapid rate of 16.8% and is

expected to further grow in the coming years. The increase in purchasing power of customers has

led to a flurry of firms getting into the smartphone market.

Apple, the highest valued and profit making firm in the world is a full time smartphone

manufacturer and mobile phones are its major source of revenue. In India, Micromax recently

outran Samsung in the rat race of country’s most selling smartphone brand with a share of 24%,

while Intex completed the top 3 with a share of 6.5 percent, a surprise but well deserved entry.

Apple meanwhile continued to be the second largest mobile phone selling company in the world,

behind Samsung with a share of 13% in the global market.

The international brand we have chosen for the analysis is Apple because of the fact that it is one

of the most loved brands across the globe. The power of this brand can be seen in the fact that

people wait for hours in queue on the launch day of Apple’s flagship smartphone, the iPhone to

get their hands on one of it. Apple also enjoys a strong brand loyalty across its customers and has

seen itself resurrect from the cries of bankruptcy just two decades ago.

We have also chosen two national brands, Micromax and Intex. Both these brands have seen a

surge in their market share in the past few years with Micromax coming from nowhere to become

the market leader in India and Intex triumphing global brands like Sony, LG and Motorola to

acquire the third spot.

These brands have successfully ridden the tidal waves of internet and smartphone penetration in

India and have been the biggest gainers in the recent past. Not only they’ve enjoyed success in

terms of numbers, these companies have also gathered the trust of millions of Indian customers

who were earlier hesitant in buying Indian brands when it came to a purchase decision involving

a mobile phone.

Industry Analysis

Porter’s Five Force Analysis

Mobile phones like any other consumer durable is a high involvement product. Like any other high

involvement product, there are tons of options for the consumers to choose from as a number of

firms are present with their product offerings in the market. We try take a look at the current

situation in the market.

1. Existing Rivalry (High)

The existing rivalry among the brands is very high. Major players like Samsung, Apple

and Sony have presence across the world, while the world has also seen an up rise from the

Chinese manufacturers with brands like Xiaomi and Oppo entering the Americas. Although

there is significant difference in the offerings of different brands, most of the technology

has matured and is available with major manufacturers.

2. Threat of New Entry (Medium)

The threat of new entry is medium. Although it requires a decent amount of capital

investment to setup a manufacturing for a mobile phone, the technology is easily available

and there are tons of third party suppliers to choose from. In fact, Apple doesn’t

manufacture a single part of iPhone and procures all of it from the market and then

assembles it.

3. Threat of a Substitute (Low)

The threat of a substitute if low. This is because smartphones have become an integral part

of our lives and it would require radical innovation to substitute this product. It has been

incorporated in the lifestyles of people around the world and although there can be

significant improvement in the product itself, there is little chances of the product itself

being replaced.

4. Bargaining Power of a Supplier (Low)

With tons of suppliers and single part manufacturers to choose from, the bargaining power

of a supplier is low. Most major companies have tie ups with multiple suppliers and are in

legal contracts with defined prices for each component. Hence, it is very difficult for a

supplier to bargain with the manufacturing company.

5. Bargaining Power of Buyer (High)

With so many different options available to the customer to choose from, along with high

number of customers the buyer power in this industry is very high. Brands constantly try

to compete with each other to gain the bigger share of pie and keep their customers loyal

to their brand. With the advances in social media and networking, buyers can easily post

online and look for product reviews when selecting a mobile phone. A simple social media

post highlighting the bad experience can become a huge cause of negative word of mouth

for the brand.

Bargaining Power of Suppliers - Low

Bargaining Power of Buyers - High

Threat of New Entry - Medium

Threat of Substitutes - Low

Rivalry among Existing Competitors - High

Marketing Aspects

1. Apple

Apple is present in the global market with its flagship device, the iPhone. It has a share of

approximately 13% in the global market and continues to enjoy strong growth. Apple has always

been an innovation driven company and tries to position itself as someone which offers the latest

and the best to the consumers.

Current Behavior:

The current marketing behavior of Apple is unique. It is unlike any other firm present in the market.

While other firms go for brand ambassadors and heavy advertising, Apple targets the niche market

and surprisingly has no marketing budget. Their only ads are the product ads they make for the

launch. In India though, Apple has come up with India specific ad and has a marketing budget

because it is unable to get its product marketed from the telecom operators like it does around the

world. The iPhone individually is also not heard or seen in Radio ads, TV commercials or print

media advertisements. The only ads we see relating to Apple iPhone is by the telecom operators

like Sprint and AT&T, which use the iPhone as a medium to increase their own reach.

These mobile operators like to tell their own customers that are now selling the latest version of

iPhone, so they spend millions in advertising for iPhone itself which is a win for Apple. It also

helps the telecom operator as they get lots of revenue from contracting out these iPhones to their

customers. Apple does have branding restrictions which allows them to control these

advertisements around the world, this is the reason why most ads look similar or try to convey the

same message to the consumer.

Marketing Strategy:

Like every other thing Apple does, Apple’s marketing strategy is also very unique. Apple tries to

make the consumers feel special by using the exclusivity techniques. It tries to position itself as

different and special, that’s why it came up with a mini ad series of “If you don’t have an iPhone,

you don’t have an iPhone” a couple of years ago. This helps Apple to create special consumer-

business relationship hence increasing the brand loyalty. In the mobile market, Apple by far enjoys

the most brand loyalty when compared to any other brand. It is therefore difficult to move a

consumer to part ways with Apple iPhone, once he/she has used it. Apple’s technique also creates

two opposing groups within the society. One owning the iPhone and other who don’t have an

iPhone. This eventually ends up in verbalization between these two groups through online

platforms and even in person, which in turn helps Apple’s word travel to the farthest corner of the

planet, without having to extensively advertise.

What is Apple’s marketing trying to achieve?

Apple has a simple policy, let others advertise for their brand, let others pay for it and let everyone

involved reap the benefit out of it. Every time a new version of iPhone nears its launch date, it is

the hot topic around the world. It is the main spot light in the media and all this incited speculation

and bickering leads to more and more free publicity for Apple. Without having to shed a penny,

Apple creates so much hype that every newspaper, TV channel, blog covers the entire iPhone saga;

from buildup to the launch itself.

Apple realized very early that word of mouth is the most effective way of promoting its product

or rather brand itself as it does not involve any commercial angle to it. This is the reason Apple

has tried to ensure that they have a strong brand community with a strong loyalty for the brand.

These people spread the word about the iPhone on each and every platform, generating free

publicity. It does not cost Apple a single penny when people around the world indulge into hot

debates over which phone in the market is better, the iPhone or one of its competitors. What Apple

gains from it is free publicity for its device, an increased reach, audiences they might have never

reached these hot debates, involve themselves in it and thus help Apple in selling more and more

iPhones across the world.

2. Micromax

Micromax is an Indian mobile handset manufacturing company with over 24% market share

in India. Micromax has reaped the benefits of increased purchasing power of the consumer in India

due to the growth in economy and tried to position itself as a brand that offers you more in less. It

has seen itself to rise to the position of number one handset selling manufacturer in India,

triumphing big guns like Samsung, Apple, LG and Sony. It is present in India, Sri Lanka,

Bangladesh and Nepal.

Current behavior

The current behavior of Micromax is to focus on expansion and improved reach. The company is

currently using brand ambassadors like hot shot Hollywood actor Hugh Jackman for the brand

promotion. In parallel, the company also has Indian actor Akshay Kumar promoting the brand.

Micromax’s mantra is plain and simple. Delivery the best to you in the best price. It positions itself

as a brand that is easy on your pocket, yet brings you all the things you could’ve ever wished for.

They believe in aggressive advertising and have even used other celebrities to promote the brand.

These include actress Kalki Kochien and Twinkle Khanna as well. They want to gain attention of

as many people as they can and make them try Micromax. Their ad campaigns with Hugh Jackman

attracted a lot of audience and generated high traction for the brand. It was all over the print media,

radio, TV channels and the internet. Currently, they are targeting people who wants the right

product at the right price.

Marketing Strategy:

Micromax uses celebrity endorsements to build its brand. They try to ride on the credibility and

popularity of the celebrity to promote the brand itself. They have always tried to market their

products as new, innovative products at a price which is easy on their consumer’s pocket. They

have also jumped into the segment of low cost premium products, which offers similar specs, look

and feel of a high end smartphone but instead of INR 50000, it is available for INR 25000. The

company regularly comes up with new products and doesn’t try to promote one single handset

aggressively. It focuses on building the brand equity by sponsoring matches of India’s most loved

and watched sport; cricket. This helps them to position Micromax as a brand itself, rather than

gaining sales for just one single handset. It tries to cash in on the domino effect and get into the

awareness set of the consumers.

Micromax’s tagline “It’s nothing like anything” also tries to differentiate the brand from other

competitors. There is huge competition in the category Micromax is catering to. There is a wave

of low cost Chinese manufacturers along with other Indian manufacturers which are also targeting

the same middle-low end smartphone market. Here the margins may not be high, but the volumes

are high which serves well for the firm.

Micromax has also targeted the working women and housewives, by launching handsets like Q55

and A55. They have realized that Indian women, including housewives have started purchasing

smartphones and have tried to position some of their phones as devices that are easy to use for

older aged or less educated people.

To gain attention of the consumers, Micromax has involved itself in aggressive marketing and

advertising by releasing frequent ads in a short span on time. They have also associated themselves

with social causes, and tried to improve their image so that the consumers can relate to the brand

easily.

What is Micromax’s marketing trying to achieve?

Micromax wants to reach out to the masses of India. They want to become a volume player in the

Indian market and to do this they are using the celebrity appeal to gain the trust of the consumers.

They are using their marketing strategy to target the unique price-quantity comparing mindset of

Indian consumers and trying to inform the market that they can get the latest technology without

having to spend a lot of money for it. With this Micromax has successfully penetrated into the

Indian urban market and products like Micromax Bling have helped the company to attract

working class of women to its customer portfolio.

Micromax is also trying to differentiate itself from other Indian and Chinese smartphone

manufacturer. They have already tried to position themselves as the only India brand that has gone

global and have effectively used Hollywood actor Hugh Jackman for this. Apart from this,

Micromax has positioned itself as a jack of all trades kind of brand with a device for every price

range and every type of consumer. Their marketing strategy has effectively cannibalized the share

of the previous market leaders.

3. Intex

Intex is another Indian brand that has seen a huge upsurge in its sales in the past 2 years. The

brand was not even in the top ten selling brands 2 years ago and now it currently sits at the third

position with a market share of 6.5 percent. Most part of its success can be credited to its aggressive

marketing strategy and ability to differentiate itself from the market leader Micromax which also

in an Indian brand.

Current behavior

Intex is currently offering products in the low and middle end segment of the smartphone market.

Currently it has products ranging from INR 4000 to INR 12000. It is using Bollywood actors

Farhan Akhtar and Kareena Kapoor to advertise for the brand. Intex also has advertised through

movies like Mary Kom, where they compare the product to be as tough as boxer Mary Kom. One

reason of choosing both these actors as brand ambassadors are because of their popularity in the

youth. Intex is trying to target the young audience. The college goers and people who have just

joined jobs. People who have a certain limit to their disposable income but would still like to buy

a stylish and trendy phone with latest features.

Marketing Strategy

Intex is aggressively advertising across all media platforms. They have ads for TV channels,

Radios, social media platforms, print media and even billboards across major urban cities. They

have also involved themselves in retail branding strategies to boost their sales. They have partnered

with colleges to sponsor them in college fests and youth festivals to promote their brand. They are

also the sponsors of major TV shows aired on MTV which is a channel that is watched by the

youth of this country.

Intex is trying to penetrate into the lower segment of smartphone market by offering smartphones

for as low as a price of INR 2500. These offerings will help Intex to penetrate deeper into the

market and help establish itself as a brand loved by masses.

Intex has also focused on different brand ambassadors for the southern part of the country.

Knowing that the Bollywood actors do not enjoy much credibility in South India, they have used

popular actors like Mahesh Babu of Andhra Pradesh and Suriya of Tamil Nadu to promote the

brand in these regions. Intex is doing well in South Indian market, because of its connect with the

local audience is better than most of the other national brand and they are able to ride on the trust

and credibility of the actors they have chosen as their brand ambassadors.

Intex is focused on studying the consumer trends and launching its new range of products based

on that study. They were the first to bump up the front facing camera to 8 Megapixels when they

realized that people are now more interested in taking their pictures themselves. Intex cashed in

from the recent ‘selfie’ culture and other brands followed suite. Similarly, Intex was one of the

first companies to launch the much hyped smartphone with an octa-core processor. The phone

served to well to spread the name of Intex and position it in the Indian markets.

What is Intex’s marketing trying to achieve?

Intex is spending around INR 150-160 crores on its marketing and the main reason for this is to

change the consumer perception about Intex from a cheap brand to a premium brand which offers

value for money. Intex’s marketing is trying to boost its brand image and establish itself as a high

end brand. Intex has realized that it is very difficult to grab market share from Micromax which

has already established itself as a brand loved by masses. The main focus of Intex is to differentiate

itself from all other non-major brands and try to grab the market share distributed in these brands.

There tagline ‘This or Nothing’ tries to send a message that they are indeed a unique brand which

cannot be compared by others and their products too have no alternatives. They have focused on

the aesthetics of their product and tried to highlight the beautiful seamless designs of their

smartphones in the advertising campaigns.

Selling Aspects

1. Apple

Apple like its marketing strategy also has a very unique selling strategy. Apple ties up with the

telecom operators to sell its iPhone through contract basis around the world. In the United States,

major carriers like AT&T, Sprint and T-Mobile offer iPhone on a contract basis. This helps Apple

to reach more audience and easily gain sales through these operators. In India, Apple has tie ups

with Vodafone and Airtel who offer iPhone on contract in which the customer can get an iPhone

for a monthly payment of around INR 2000 for 24 months. They also get free call benefits and

other incentives from the operator if they make a purchase. One prime example is free 3GB 3G

data for first six months which was used by Airtel to attract the customers.

Apart from tie-ups with telecom operators itself, Apple also sells iPhone through its own stores

which are called Apple stores. These stores are present across the globe in major cities. They

product a customized experience to the consumer which goes into the shop to make the purchase

and customers can also get a look and take feel of other latest Apple offerings. The staff in these

stores is highly trained with a high sense of love for the brand itself. Apple has special incentive

schemes for its staff which allows them to connect with the brand. Apple also educates its own

staff very well about the product, so the staff can easily influence the non-regular buyers. They are

well versed with all the features and advantages of the iPhone over other brands and are quick to

draw comparisons and conclusions.

Apple also has tie-ups with multi retail outlets across the world. For example, it is sold at Wal-

Mart in the United States and in Croma in India. Apple has a different section altogether in these

stores, where only Apple products are kept. The idea is to differentiate itself from other brands.

Usually, all other brands are kept together in a multi-retail outlet but an Apple product is kept in a

special Apple booth where other products like Apple iPods, MacBooks and iPads are also kept.

This helps in making the consumer feel special right when he walks in the outlet. It also helps in

grabbing attention and generate traction as usually the Apple booth is very attractive and there are

always a few individuals standing on that side of the store, checking the products out.

Apart from this, Apple also sells through online channels like Amazon, eBay and Flipkart in the

Indian context. The prices are usually regulated at these websites so there is little or significant

difference even in the online channel as Apple keeps a check of price at which their product is

being offered. No online partner is allowed to give out heavy discounts unless the company is

providing the same offer across different platforms. This way Apple maintains its brand equity and

keeps all its partner happy as there is no price conflict. It also helps establish the fact that their

products are premium and are only offered at a premium price. Although, prices usually see a drop

every year in the third quarter as new models of iPhone are launched in this period, but still the

price drop is not huge and more or less standardized.

Apple also has a best in class after sales strategy as they continue to focus on customer satisfaction.

Unlike other companies, Apple doesn’t hesitate in replacing the product altogether if there are even

minor damages in their product. There have been several instances where the company has

replaced the iPhone in minor cases like non-working of a button. This has helped establish a strong

brand equity and a high brand loyalty among its user and not only people love the product itself,

they are always happy with the after sales service. There have been instances in the past when the

company has sold faulty handsets to its consumer, but they have always recalled and replaced the

faulty products with new ones and even given promotional schemes to their customers, making

them happier at the end of everything.

In the United States, Apple also sells its smartphone through its own website where consumers can

get an iPhone with a carrier sim card or an unlocked version of the iPhone where they can put their

own sim cards. The prices here do not fluctuate unless and until a new version of phone is launched.

2. Micromax

Micromax has tried to become a volume leader in the Indian market and therefore it works on

very thin margins. It is like skating on thin ice, but the dividends are high in this case as well. They

reduce their own margins to increase the margins of the sellers so that they will push the products

more to the consumer. They try to incentivize the shops, pay for the billboards and hoardings with

the shop name along with the name of the Brand. They also supply the product to limited sellers

so that sellers have a say in the market.

Micromax has a special relationship with its dealers and vendors. It tries to maintain the trust

relationship it has with its dealers. It also incentivizes its dealers by sending them and their families

to trips in countries like Malaysia and Singapore. These trips are fully sponsored. Micromax also

gives incentives to retailers and distributors who meet the targets and over achieve their required

targets. They also involve themselves in training the staff of these stores to properly communicate

the attributes of the products.

Micromax gives special discounts to the vendors so that they can sell the product at a reduced price

and make sure that they can attract more price conscious consumers. Micromax also offer free

goodies with its smartphones and accessories like SD card, snap on covers, scratch guards etc.

Micromax has also gauged the consumer preference in the Indian market and have thus launched

dual sim phones. They have tried to target the people who use multiple sim cards with these line

of phones. They have also tried to address the battery woes of the consumer by launching products

with a 30-day battery backup.

They have also divided the incentives into different slot processes. The dealers are incentivized

according to their performance in the market.

3. Intex

Intex has a similar selling strategy like Micromax. It focuses on pushing its smartphone in

the market through the dealers and the retailers. Intex like Micromax incentivizes its dealers

and retailers to push sales. They have specified set of targets to meet, on which they get

incentives. Intex also invites its distributors to launch event of its phone where they come with

their families and are given a stay and dinner while they attend the launch parties and events.

They are also given fully sponsored trips to abroad for achieving their targets. They enjoy a

very trustworthy relationship with the dealers and vendors. Their hoardings and billboards are

fully sponsored by Intex and they also constantly train the staff about the product so they can

communicate the same to the consumer. Intex also organizes special dealer-company

relationship building events where people from Intex meet their distributors and dealers and

talk about their future prospects. These events help in maintain the relationship between both

the parties involved and by keeping their dealers happy, Intex makes sure that the sales of their

smartphones are pushed.

The impact of these selling aspects are that the company is able to attract the customers through

its salesforce, dealers and retailers. Their smartphone line is also in sync of their buyer’s

behavior which wants a stylish and trendy smartphone at a low cost and differentiate itself

from other Indian brands.

Intex also provides multiple deals to the consumer and heavy discounts. These deals include

free gifts and accessories and other Intex products like headphones and portable speakers.

These gifts are bundled with the smartphone to promote the sales and attract more consumer.

This strategy works well for the company as the youth which is their main target audience is

generally interested in buying such accessories and when they see a bundled pack for a same

price, they are usually attracted towards it and is the difference between choosing a regular

brand and going for Intex.

Generalized framework for Marketing and Selling

MARKETING:

Low

High

Low

Picking

iPhone: Habit or

Heuristics

High

Micromax

Intex :

Variety Seeking

Price-Quantity

evaluation

Problem Solving

SELLING:

Low

High

Low

Picking

iPhone: Habit or

Heuristics

High

Variety Seeking

Micromax

Intex : Problem Solving

and/or Sub Contracted

Uncertainty of untried brands

Dif

fere

nce

bet

wee

n b

ran

ds

Uncertainty of untried brands D

iffe

rence

bet

wee

n b

ran

ds

Evaluation

Gaps in Achieving the Marketing goals

1. Apple

a. The scope for innovation in the mobile phones is getting reduced day by day and hence,

other brands are catching up and trying to reduce its exclusivity among consumers.

b. New mobile phones brands are coming up that offers same features at low cost and

some are even termed to better than Apple which never happened earlier. This is a

threat to Apple’s market share and it can also face the same consequences faced by

other mobile phone brands like Nokia and Blackberry.

2. Micromax

a. The marketing team is failing to convey the distinctive features that it boasts about in

its ad campaigns to the rural masses. The people in rural India are not educated enough

to understand those different features and hence, Micromax needs to come up with an

ad campaign which can be easily understood even by the uneducated masses.

b. Consumers do not recognize Micromax as a premium brand which can make high-end

phone like Apple and Samsung. Therefore, the marketing team needs to work in this

area so that it can enter the high-end market segment of Rs. 20000 – Rs. 40000.

3. Intex

a. There is huge mismatch between its target audience and ad campaigns. Intex is trying

to make its mark in the lower smart phone segment but the brand ambassadors that it

has or had were all big Bollywood and south Indian stars which is a misfit.

b. Intex started as an electronic products manufacturer and that image is still intact in the

mind of the consumers. This is something which is hampering its growth. The

marketing team needs to come up with an ad campaign which can help in changing its

image from a computer accessories manufacturer to a mobile phone brand.

Recommendations

1. Apple

New players are trying to catch up with Apple and some of them are in striking distance. Apple

must either innovate or try to change its marketing strategy for the future. If other manufacturers

catch up with Apple in the near future, Apple won’t be able to differentiate its product from other.

Then taglines like “If you don’t have an iPhone, you don’t have an iPhone” won’t work. All their

marketing is based on the fact that their product is different from others. With the saturation in

technology and expiring patents, Apple could soon lose the ploy. Apple can focus on creating a

backup plan if and when the day arrives. They should also market their product to attract more

consumers to it. Word of mouth is a good way of advertising, probably the best but other media

channels, especially social media campaigns can help Apple in maintain the traction.

Apple almost does everything right. They are the only technology brand that is working on the

pull strategy out there and have made their product a near habit for the consumer. If at all they

need anything, they need a contingency plan to counter their rivals. For that, a dedicated marketing

plan in required and tie-ups with telecom operator and word of mouth can only take them so far.

2. Micromax

Micromax is trying to differentiate itself in the midst of high tension all-out war between all

brands in the smartphone market. Their products are still perceived as a cheap alternative or a poor

man’s smartphone by most of the people who have the purchasing power of going for the big

brands. They are working on thin margins and are using the push strategy to become the market

leader. Such a strategy is good in the short term but bad in the long run. Micromax’s products are

usually available at discount so consumers are already unwilling to pay full price for it. They

expect the products to come with some sort of incentive or at a discounted price from the beginning

itself. Even the dealers and retailers expect Micromax to incentivize them before they push the

sales.

Micromax must differentiate itself from the regular brands and try to pull the audience towards the

brand. It must focus on communicating the benefits of the brand in such a way that the retailers

don’t have to push the product to the consumer. This way the consumer itself will come and ask

for the brand and will be willing to pay the full price for it.

Micromax also has to figure a way out to position itself as a premium brand if it wants to enjoy

continued growth. The lower end of the market is a bloodbath and although it enjoys a lot of

volume, the brand is still associated with cheap products. Micromax should focus on how it is

premium in its ad campaigns and should rope in brand ambassadors which can connect to the

audience. Signing Hugh Jackman as an ambassador is fine if you’re in the Americas, but most of

the Indian audiences do not know him and he fails to generate any sort of traction.

3. Intex

Intex has serious problem with its advertising and target audience. They try to pitch themselves

as a premium product where as their target audience is people who buy phones because they are

only able to spend a limited amount of money for a smartphone. It’s advertising is based on how

premium the product is, rather it should focus on how it is proving value for money.

Intex should not only change its advertising strategy, it should also try and move away from the

push strategy of selling smartphones. It should advertise in areas where its target audience often

visits or can be attracted. Signing multi-million rupee deals with the stars is fine but they should

also try to reach out to the masses, which are the major source of revenue for the company. The

company barely advertises on social media for the youth, and newspapers for the masses. The

youth is still unable to connect to the brand.

Comparative Analysis

Apple is the world’s most profit making company and has a more cash reserves than most countries

in the world. Their products are perceived as one of the most premium products available in the

market. Their marketing strategy is aligned with their selling strategy and they are one of the few

companies in the world who have managed to pull their customers to buy their products.

Indian companies like Micromax and Intex are making their money from targeting the lower

segment of the market. They are dealing with high volumes and low margins and are only focused

in increasing their market segment. Their strategy is completely different from Apple and their

aim is only to push their products into the market. Their aim is more short term and long term and

instead of marketing they are focused on short term selling.

The striking difference in the companies can be seen in terms of their sales, profit, target audience

and marketing strategies.