e zee mobiles
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The Scenario
We are the Business Heads of
A cell phone company dealing
In premium mobiles
You all are the Board members
of our CompanyTask at hand : To introduce
a new product in the low
price segment and get you all to
approve the plan
Concern : You all are apprehensivethat such a step would affect
our companys premium image.
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Blueberry-Entering A NewPhasePresented by:
Elizabeth Betsy Joy - 11017Pankaj Naik - 11037
Ullasa Kumar Jha - 11057
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Company Profile Founded in 1998 by the Mario family in
Munich, Germany Established a reputation for providing high end
mobiles Headquarters located in Munich Went global in 2002 focusing primarily on huge
mobile markets Net worth is $17 billion Listed in Frankfurt Stock Exchange 5th largest mobile phone manufacturer in the
world Occupies 14.8% share in global smart phone
sales
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Some Variants Product Features
Intel Processors
Large Memory
(32 GB micro SD cards,1GB flash memory)
Long Battery back-up(6 hrs. talk time and528 hours standby)
Qwerty keyboard
Push e-mail, text
messaging, internetfaxing
Video conferencing
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Present Scenario of IndianMobile Industry
India constitutes approximately 10% ofworld wide sale of mobile devices
Growing influence of local players in thelow-end segment
Mobile Handset market is expected toshow steady growth through 2014 whenend user sales surpass 206 million units
Despite very high competition, theindustry is growing at a very high pace.
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Market Distribution of MobileIndustry in India
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Blueberry- India
Launched in 2004
Manufacturing unit at Bhubaneswar, Orissa
First company to provide smartphones in India
Targeted Business professionals and youngachievers
Second Largest provider of smart phones andhigh end phones having market share of 27%
Competes with Nokia, Samsung, HTC, LG andApple.
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Why low price segment? To increase market share.(Market penetration) Indian market is very diverse with BOP
consumers coexisting with sophisticated
consumers(10:1) Low- end mobile industry is rising at a rate of
17% annually Rural areas will fuel growth in the mobile
industry according to our consultancy groupDeloitte
30-40% mobile users use low-end mobiles Rising trend of people having more than one
mobile phones.
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Market Structure and
Segmentation of Low- Endmobiles
Low end mobiles have price band ofapprox. Rs 1000 to Rs 3000
This segment contributes about 38% oftotal Indian mobile device market
These phones are generally meant forbasic function, meant for people for
whom cellphones are just anothercommunication device.
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Competitors in India in Regardto Low Price Segment
Nokia
Micromax
Maxx
Lemon Mobiles
LavaGfive( Chinese brand)
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Introducing
E-zeemobiles
THE NEW PHASE
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Features of E-zee Long battery back up
(12 hrs talk-time and48 hrs standby)
Radio and MP 3player
Attractive colouredpanels (target- youth)
Mobile Torch
1.3 mp camera
GPRS and mobiletracking
Easy texting features
Water proof, robustand durable
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Expected Expenditure Cost of production : Rs1350
Distributors margin : Rs 99 (5% on sales)
Marketing expenses : Rs 100 (5% on sales)
Debtors profit : Rs 250 (12.5% on sales) Proposed price of the phone : Rs 1999
Companys profit : Rs 200 (10% on sales)
Target sales for first year : 2 million handsets
Expected revenue : Rs 4 billion
Expected profit : Rs 400 million
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Target Customers First time mobile users in semi urban and rural
areas
Senior Citizens
Economic Class (BOP) School Students
College Students( many
of whom maintain two mobiles,
one usually being a low end phone) Users needing temporary phones
Migrant Workers
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Promotional Strategies Slogans like Ab bari E-zee ki
Hoardings in public areas
Promoting through e-choupal
Tie-up with service providers like Airtel,Vodafone etc.
Radio ads-Cost effective and to reach ruralareas
Ads in print media and also in television totarget urban youth and senior citizens
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Addressing the Concern New brand name - E-zee
Provide value for money
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Thank youDisclaimer : This is a hypothetical situation
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