Marketing Mix of Micromax and 4Ps (Updated 2023)

The marketing mix of Micromax analyses Micromax’s 4Ps, which include the product, price, place, and promotion. Micromax’s marketing mix proves why Micromax has grown by leaps and bounds in India. Micromax Mobile was founded in 1991 by Rajesh Agarwaand, who used to work as a computer hardware distributor. Three more Indians joined Rajesh Rahul Sharma, Sumit Arora, and Vikas Jain in 1998 as co-founders. The four joined hands in transforming the company from a mere distributor to a telecommunication equipment marketer. In 2008, Micromax joined the mobile handset market.

By 2010, the company had grown to become one of the largest Indian mobile handset companies, and it differentiated itself by offering feature-rich smartphones at very affordable prices. The company has ensured it survives the market by adapting to the changing market dynamics by introducing smartphones and phones that are mostly “me to products” and entering the market at an aggressive price. The company enjoys an impressive 22% market share in the smartphone segment in India, thanks to its excellent marketing mix.

About Micromax

• Type: Consumer electronics company
• Industry: Electronics
• Founded: March 2000
• Founder: Rahul Sharma
• Headquarters: Gurugram, Haryana, India
• Area served: India, Middle East, Africa, Southeast Asia
• Key people: Rahul Sharma (Chairman) and Vikas Jain (CEO)
• Number of employees: 10,000

Micromax Product Strategy

Micromax provides various phones with different features, thus serving various customers. The major differentiating factor of Micromax is that it has managed to distinguish different unique needs of customers and offer a product that solves them, such as providing rural customers with long battery life and providing urban customers with the best variety at the least cost with excellent quality smartphones. The company is also developing new and modern models that will compete with the existing mobile markers. So, the company has launched many types of dual-SIM phones (this makes up 85% of the total product portfolio). The company mainly produces Android phones, which have proved an enormous success.

Micromax has seen massive success from low-end mobiles in their latest Canvas and turbo series. These feature-rich smartphones have established them in the league of mobile giants. Sales figures show that Micromax is second only to Samsung in India.

The product mix of Micromax in 2023 is as follows (Source)

1. Smartphones: Micromax is well-known for its range of budget and mid-range smartphones. They often feature the latest Android operating systems, decent camera specifications, and competitive pricing. Popular series include the Micromax In series.
2. Feature Phones: Besides smartphones, Micromax also offers a variety of feature phones. These phones are known for their affordability, basic functionalities like calling and texting, long battery life, and durability.
3. Tablets: Micromax has a range of tablets known as the Canvas Tab and Canvas P series. These tablets typically cater to the budget segment, offering basic tablet functionalities at an affordable price.
4. Consumer Electronics: Beyond mobile devices, Micromax has expanded into other consumer electronics, including LED TVs, air conditioners, and soundbars. These products are aimed at offering value for money in their respective categories.
5. Laptops and Computer Peripherals: The company has also ventured into the laptop market with the Micromax Canvas Lapbook and other models, primarily targeting the affordable laptop segment. Additionally, they offer computer peripherals like data cards.
6. Accessories: Micromax provides a range of accessories for its devices, including cases, chargers, headphones, and power banks. These accessories, like smartphones and tablets, are typically designed to complement their primary product lines.

It’s important to note that the product mix of a company like Micromax can evolve rapidly, with new products being introduced and older ones being phased out.

Micromax Place Strategy

The company employs a unique marketing strategy that targets the Indian market position. One strategy it used very successfully was targeting the rural market when it started. This was a unique strategy because most companies started with the urban market before penetrating the rural markets. The first phone launched in the rural market was Micromax X1i, a unique brand with good battery backup. This hinged on the general consumer insight that rural folks typically have problems with electricity, and producing a battery that lasts much longer would be a big success.

The success of this first phone triggered the company to make significant steps in entering the market despite the many challenges it had to face in penetrating the rural market. The logistics problem was solved by establishing an elaborate distribution network comprising 450 distributors and more than 50,000 retailers. One of the highlights of the company’s distribution strategy is that it made the distributors pay for the products in advance but offered generous margins as incentives in return. For those who did not make advance payments, they received thinner margins.

However, Micromax faces stiff competition from established brands like Nokia, Samsung, Apple, Spice, Karbon, and cheap Chinese-manufactured phones. Another issue it faces during distribution is that it cannot match the surge in demand and is several times found to be unavailable in the market if the purchase rises. Thus, manufacturing needs to increase to keep its distributor base happy.

Micromax’s place strategy is as follows:

1. Extensive Retail Network in India: Micromax has established a vast retail network across India, including in smaller towns and rural areas, ensuring its products are accessible to a large customer base.
2. Online Sales Platforms: The company has leveraged online sales through its website and partnerships with major e-commerce platforms, catering to the growing trend of online shopping.
3. Global Expansion: Micromax has expanded its reach beyond India to international markets, particularly South Asia, Russia, and Europe, to tap into new customer segments.
4. Service Centers and Customer Support: They have set up numerous service centers across various locations to provide after-sales support, enhancing customer satisfaction and trust in the brand.
5. Strategic Distribution Partnerships: Micromax has partnered with various distributors and retailers to enhance its market penetration and ensure efficient supply chain management.

Micromax Pricing Strategy

Pricing strategy is at the core of Micromax’s marketing strategy and aims to provide quality phones at an affordable price. So, the company has adopted a penetration pricing strategy in rural and urban markets. The company realizes that pricing the product at a lower rate increases its market share and fends off the competition from giants like Nokia, Apple, and Samsung. The success or failure of Micromax solely depends on the smartphone’s pricing.

The company has long-term plans and wants to expand its growth to other Asian countries. It plans to come with an IPO in the later part of the year, which it aims to incur in R&D and set up state-of-the-art manufacturing units apart from expanding its presence to other parts of the world.

Micromax’s pricing strategy is a key component of its market positioning and competitive edge, primarily focusing on delivering value for money to its consumers. Here’s an expert breakdown:

1. Competitive Pricing: Micromax strategically prices its products, especially smartphones and tablets, to compete against local and international brands. This approach allows them to capture a significant market share in the budget and mid-range segments.
2. Cost-Plus Pricing: The company likely uses a cost-plus pricing model for some of its products, setting prices by adding a standard markup to the manufacturing cost. This method ensures profitability while keeping prices reasonable for consumers.
3. Psychological Pricing: Micromax employs psychological pricing tactics, such as pricing products slightly lower than a round number (e.g., INR 9,999 instead of INR 10,000) to make the price appear significantly less in the eyes of the consumer, thereby boosting its appeal.
4. Penetration Pricing: For new product launches or entering new markets, Micromax might use penetration pricing, setting initially low prices to attract customers and gain market share before gradually increasing prices.
5. Dynamic Pricing: In response to market trends, competition, and consumer demand, Micromax adapts its pricing strategy. This flexibility allows the brand to stay competitive and relevant in the rapidly evolving electronics market.

By balancing affordability with quality, Micromax’s pricing strategy caters effectively to its target demographic, especially in emerging markets where cost-conscious consumers seek high-value products.

Micromax Promotion Strategy

As mentioned, Micromax has gained traction in penetrating the Indian mobile market, which currently stands at 22%. Now, the company is engaged in a marketing strategy that will help it create product awareness. For instance, it uses Bollywood celebrities and MTV to publicize its brand image. Wolverine fame Hugh Jackman was roped in recently as its brand ambassador, signaling the company’s intentions to expand its presence to the West and tap the overseas market in the coming days.

The company has also partnered with other companies like Yamaha, which it uses to enhance its audio experiences. It is also worth mentioning that Micromax uses online marketing, print and TVC advertising, and billboards to advertise its products. Point of purchase advertising is also a strong feature of Micromax.

Micromax’s promotion strategy is as follows:

1. Celebrity Endorsements and Sponsorships: Micromax leverages celebrity endorsements and sponsorships, particularly in cricket and Bollywood, to increase brand visibility and appeal to a broad audience.
2. Digital and Social Media Marketing: The company actively uses digital and social media platforms for advertising and engaging with customers, capitalizing on the growing digital audience.
3. Attractive Offers and Discounts: Micromax frequently introduces attractive offers, discounts, and seasonal sales, particularly during festive seasons, to stimulate consumer interest and drive sales.

Some Recent Video ads and Print ads of Micromax are:

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