Formulating a strategy for Micromax to expand its retail footprint in India

Abstract

Micromax is an Indian consumer Electronics Company headquartered in Gurgaon, India. It started as an IT software company in 2000 as Micromax Informatics Ltd. It entered the mobile handset business and focused on lower prices to compete with international brands. It launched its first phone with one month battery life which was a great hit among the Indian masses. In 2014, it became the second largest smartphone company in India after the launch of its Canvas 2 A110 smartphone. Recent reports indicate that Micromax was the largest smartphone company in India by volume in Q4 2014-2015. Micromax has an extensive distribution network with presence in more than 600 districts through around 125,000 retail outlets in India. It is available mostly through e-retail or Croma, The Mobile Store, Easyday, Vijay Sales, Reliance Digital, etc. Although e-retail is booming in India, the sales through traditional brick and mortar stores contribute the major part of sales. This report details the sales and distribution strategies of major companies in the mobile handsets category and attempts to understand which of these strategies would best suit Micromax.