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Case study : Micromax

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Micromax, the 12th largest handset manufacturer in the world, started as an IT software company in the year 2000 working on embedded platforms. In 2008, it entered the mobile handset business and by 2010, it became one of the largest Indian domestic mobile handsets company by offering unique yet affordable innovations.

The Challenge: Micromax was mostly preferred in rural areas and that is the reason why it was not considered desirable in urban areas. In order to penetrate the urban markets, they require to change their image and they need to take one brand strategy so that it can create a positive image in the minds of the customers..

Strategy: Micromax brought Twinkle Khanna in order to grab the attention of GEN next girls who are smart and have fascination about cellphones.On the basis of that, Micromax announced the launch of its new phone Bling and targeted fashionable and smart women.

Execution: An advertisement featuring Twinkle Khanna with Akshay Kumar’s voice-over created high impact. The tagline ‘it twinkles’, created a very positive effect among the audience. The print ads were designed keeping in mind that the phone was considered to be a fashion accessory nowadays.

Promotion strategy – In order to increase more sales micromax started giving advertisements through online, radio, newspapers etc.

Distribution strategy – For the B2C model, higher margins up to 15 per cent were offered to the dealers, which was higher than the industry average of 6 per cent to 10 per cent. And distributors were offered higher margins than what Nokia offered. This helped them penetrate the market deeper into the urban markets.

Customer acquisition & retention – They started providing better after sales service along with an extended warranty of 2 years thereby gaining more trust of the customer.

Results:

All these strategies help to increase the market share of Micromax and its sales increased in the urban markets. They offer product differentiation with every phone and thus it became the largest Indian mobile company.

 

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