Analysis Of The Competitive Strategies Adopted By Leader , Challenger And Follower in the

Smart Phone Segment

Group No.-6Arjun Bhatia- G007Ujjal Bose-G009Ekta Chhotaria-G012Dhwani MehtaShubrha SarohaAmartya Sen

PORTER’S FIVE FORCES

Intensity of Rivalry:

HIGH

Threat of New

Entrants: MEDIUM

Power of customer:

HIGH

Threat of New

Substitutes : HIGH

Power of Supplier: MEDIUM

MARKETING MIX PRODUCT

•Better quality front camera •Leveraging on the selfie culture•Slim and easy to carry products are being developed •Enhanced processors on heavy data usages

PROMOTIONPRICE

PLACE

• Various new features are provided in a very less price as compared to biggest rival APPLE

• Faster processors comparable to iPhones in much lesser price

• Accessories such as ear phones, chargers, screens etc are available in reasonable price

Works through Channel Marketing concept – 3 segments

1) Sales and Services2) Modern Retails3) Distributors

• Offers and discounts during the festive seasons

• Bollywood celebrities e.g. Aamir Khan is a brand ambassador• Tie up with Airtel to promote 4G in India

Segmentation Targeting Positioning

SEGMENTATION

• GEOGRAPHIC – Guru segment for rural areas Galaxy segment for urban areas

• DEMOGRAPHIC – Guru for middle class and lower income category Galaxy, adept for business usage, security concerns

PSYCHOGRAPHIC – Samsung mobile is available for people based on lifestyle e.g. cheaper touchscreen

TARGETING

• Trendy young peoples, professionals, large businesses• Organisations such as services to public safety, government, manufacturing sectors• Institutional sales for colleges• Target is not only number driven but also acquiring and retaining customers

POSITIONING

• SAMSUNG concept stores• Market making in small cities• Wider care network• Access to Samsung care line• Pioneering in the 3G segment

SWOT ANALYSIS

STRENGTH• Hardware integration with many open source OS• Innovation and design• Low production cost• Largest share in mobile phones and smartphones

OPPORTUNITIES• Growing smartphone market in India• Growing mobile advertising• Growing demands through quality application process• Obtaining patents

WEAKNESS• Low profit margin• Lack its own OS and software• Too many products, hence may loose focus

THREATS• Rapid technological change• Declining margin on hardware production• Breached patents• Price wars with competitors

MARKETING MIX

PRODUCT PRICE

• Unique needs- longer battery life(e.g. Micromax X1i)

• Best variety at lower cost with excellent quality of smart phones.

• First to launch Dual-SIM phones • Canvas and turbo series.

• Penetration pricing strategy • The first product Micromax X1i was

priced at Rs 2150.• The success or failure of Micromax

is solely dependent on the pricing of the smart phones.

PLACE

• Targets - Indian market. • Flank strategy- Rural market • By placing the product in popular stores

like Croma , The mobile store, Reliance Digital etc., high visibility was assured along with the competitive brands

PROMOTION

• Hollywood, Bollywood celebrities and MTV

• Partnered with other companies like Yamaha, to enhance audio experiences.

• Online marketing, print and TVC advertising and billboards

• Point of purchase advertising

Strategic objective- Attacking the market leader

Segmentation ,Targeting , Postioning

Segmentation Targeting Positioning

• Geographical segmentation

Immediate geographic target is Non urban and rural segment of India

• Demographic segmentation

Segmentation on basis of gender(Ex:Q55(Bling))

Segmentation on basis of age by focusing on age group 18-25

• The target audience - youth , Fashion savvy women and professionals

• Low cost and warranted product

• As a second phone• Offering value for

money

High price

High trendy

Less trendy

Low price

SWOT ANALYSIS

STRENGTHS• Efficient distribution network.• Low pricing• Strategic planning• Innovation

WEAKNESS• Intense competition and less global

presence• User interface for not so tech-savvy

consumers compared to Apple

THREATS• There is a risk of the brand

perceived not as an aspirational brand but a ordinary price warrior.

• Threat from low price well known brands

OPPORTUNITIES• Foreign market• Can be used as simple second

phones as well as cheaper smart phones

• Reverse engineered from Samsung and Apple phones, but with cheaper material

• Decent quality phone at a low price • Robust case, high resolution display

and a good battery• Operating system MiUi developed in-

house• Highly customizable operating system

MARKETING MIXPRODUCT PRICE

• Pay less now, pay more later strategy• Revenue generated from selling

content such as games, apps, financial services etc.

• Sells mostly online to further reduce cost of sales

• Priced at around half the price of competing Iphone

• Cheaply priced but not the cheapest

PLACE• 97% of shipment is local• International market restricted

to South East Asia and BRIC countries

• No presence in developed markets like U.S and Europe because of potential IP infringements

PROMOTION

• Flash sales with little advertising to build a sense of anticipation and urgency.

• Encourages users to interact with engineers over social media

• Open source operation system MiUi• Hosts parties for fans• Actively promoted on social media

Segmentation ,Targeting , Positioning

Segmentation

Targeting

Positioning

• Demographic SegmentationBoth genders between 20 and 35 years of age

• Psychographic segmentationSegmentation the working middle class

• Young working middle class adults who are tech savvy and want an increasing flexibility and customizationability in their phones

• Product with high functional value that is priced affordably

SWOT ANALYSIS STRENGTHS Frequent Line extension Low selling price of products Effective promotion campaigns Innovation and featured products Effective online business model

WEAKNESS Unable to shed the “MADE IN

CHINA” Tag Poor after sales support Low brand image

THREATS Steep competition from

established brands eg. Ssamsung, Karbonn

Entry of new players eg.Lenovo, Gionee, Hauwei

Easily replicable marketing strategy Low pricing in this segment Saturated China Market Currently being sued in India by

Ericsson for patent infringement

OPPORTUNITIES Increasing growth rate of sales of

mid and low cost smartphones in the Indian market

Entry into emerging markets Deep penetration of 2G and mobile

internet services in semi urban towns

Leverage fan base Expansion into Retail Channel

Thank You