Micromax: Preparing for the Chinese Invasion
This case focuses on the marketing strategies of Micromax Informatics Limited (Micromax). Micromax was founded in 1991 as a distributor of computer hardware by Rakesh Agarwal. In 1999, he was joined by three of his friends and based on a persuasive suggestion of one of them (Rahul Sharma), got into the mobile handset business in 2008. This was based on an observation that even the most popular brands of handsets launched by global players did not fully satisfy the local needs. Micromax was good in spotting opportunities based on identification of their potential customer’s unmet needs. Despite not having a manufacturing facility then or a large research and development setup, they have introduced various innovative solutions in the market. The handsets were manufactured in China. The small R&D team had its focus on product engineering and design. They first focused on the rural markets and then proceeded to the urban markets. They have been innovative in the handling of channels and also in their communication and brand building efforts. They used celebrities and sports (cricket) to help in building their brand. They are very strong believers in the value for money proposition. Keeping their ambitions and realizing their strengths they also launched their products abroad. Micromax is currently number one in tablets, Number two in the smartphone market and number three in the overall handset category in India. However, with the launch of Chinese mobile phones in India, the stage was set for Chinese companies’ growth in India.
The case provides students with an opportunity to understand how entrepreneurial marketing orientation helps organizations scale up and how organizations with good consumer insights and marketing strategies can become major players in the market and achieve their growth dreams.
The objective of this case is to elucidate the importance of integrated marketing strategy. This case can be used to:
- • Discuss how consumer insights can help an organization to come out with innovations that can help differentiate your product
- • Illustrate how a small new entrant (Micromax) with an entrepreneurial spirit of seeking opportunities can help it grow from INR6.5 billion (USD128 Million) revenues in 2008-2009 to estimated INR75 billion (USD1.25 billion) by 2013-2014
- • Demonstrate that, even if an organization is not the first-mover in a technology oriented industry, it can still become a dominant player in the market
- • Highlight some of the marketing mix decisions taken by Micromax which helped them become one amongst the top two players in the Indian mobile handset and tablet market.
Case Positioning and Setting
The case is beneficial for discussions among students pursuing a postgraduate degree in management and who are interested in Marketing, Entrepreneurial Marketing, International Business and International Marketing. The course where this case has high relevance is Marketing.