By SALONI DUTTA
Q] Micromax associated with Hugh Jackman for the launch of the Canvas Sliver 5 through a high decibel campaign. What has been the result of the association with the actor over the last two years?
Micromax’s association with Hugh Jackman is in its second year. The impact of this association on Micromax has changed over time. When the first advertisement campaign with Jackman went live in 2013, our strategy at that point was aimed to pull the brand apart and make it new and give it a global, aspirational and premium equity. That campaign clearly did the job, as is apparent in the equity scores and in the ensuing conversations in Digital. It brought in a lot of sunlight between us and the local players. This is the second campaign in which we’ve used Hugh Jackman and it is slightly different because the core objective has changed. This time, the objective is our breakthrough product – the Canvas Sliver 5. The core focus or the message is to position or communicate how slim and how great this product looks. This idea gets amplified by a million because it has Hugh Jackman in it. It doesn’t happen too often, but this was one instance where the product and the brand ambassador came together beautifully in the ad.
We are going across all touchpoints - TV, Outdoor, Print, Cinema, Digital - and the coherence is around one single fact that this is the slimmest phone ever. Not more than 40% of the spends are on TV and the rest of it is across all the other media, taking it 360 degrees. And for every Rs 10 we would spend on TV, we would spend around Rs3 on Digital.
Q] Is the brand moving towards a premium image from the mass positioning it has?
Are we a premium brand? I clearly think we are. We can see that in most of the models we have launched recently – they are in the mid-premium category. Our market-share and strength was in the entry-level smartphone sub-category. It was a combination of the fact that our product portfolio was not very strong in the premium and mid-premium range. And as a result of that, our distribution was a bit skewed towards small stores. But, as our portfolio developed, and with the partnership of celebs like Jackman we have augmented our business efforts to capture a higher share in the premium category.
Q] What is your USP and market-share?
In terms of the category, it’s going through a big churn. What’s driving the category growth is that there are 82 million users who are moving from feature phones to smartphones. But our bet is that over the next few years, as people start moving to their second, third and fourth phones, we will go up the value ladder. So we need to be ready for the market with a premium range, with a distribution system that’s perfect and service quality standards which are ready for the more discerning consumers. That’s where we’re trying to head the business and so far, it’s working out well. We clearly are a leading player in the category right now, with about 17% market-share. We are also really proud of the fact that we are the first Indian brand to be among the world’s top 10 handset brands.
Going forward, and also with the Canvas Sliver 5, we are going to add two more layers – one, that we want our phones to stand out in terms of design; and the other, about service, especially after sales service, as there is a lot to be desired. We are innovating with new service models to address this.
Q] Which are some strongplay markets for the brand?
Some strong and high-share markets for us are clustered around North and West of India – Maharashtra, Madhya Pradesh and Punjab, to name a few. There are pockets and parts in the South where we can amp up our market-share. On the distribution front, what has changed dramatically in the last six months is the advent of e-commerce.
Q] Micromax has been associating itself with IPL, do you think the recent controversies will hamper this association?
Cricket will continue to remain the most viewed and engaging sports platform. I don’t think anything will come up to the reach that cricket can give. If a brand is interested in sports, cricket will have to remain its foundation.
Q] How is the brand building on its service relationships with customers?
We’re building a fairly robust model where we’re trying to hand-hold the consumer right from awareness to purchase of the product. So right from making the consumers aware of the product in a very impactful manner, to having a very competitive range as well as ensuring that the consumers touch and feel the product through demos, etc., and finally, of course, just effective management of the actual sales transaction, whether online or offline – it’s important to have all these working in sync. Having the right messaging and communication strategy absolutely geared to each stage of the purchase cycle is also critical. You need to have coherence about your idea that carries right through the campaign and service stages.
Q] What is the brand’s strategy for the next year?
For us, the trajectory of growth has been phenomenal – from merely being present in 2008 to becoming one of the leading handset companies in 2014-15. Within the mobile industry, we not only need to maintain but also strengthen our leadership in the entry-level mass smartphone market. Reinforcing our core vision of democratizing technology and giving consumers the best in class global technology but at a price that is accessible to them, will continue to be a key part of our strategy.
Our product portfolio needs to be refreshed with flagship products which target the mid-premium section because over time, we will have more consumers there. These strategies are at the core of our mobile business. We’re trying to diversify and we’re doing a pretty decent job at it. We’ve got a really good line of tablets and laptops, doing very well in the market. We’ve made a big splash in the LED TV business and that has also taken off well. We’re ramping up our efforts to become the leader in newer markets. We’re pretty strong in South Asian markets, we’ve moved into Russia and we’re now starting a phased approach to other areas. That’s the way we’re growing Micromax as an organization, and so far the story has been great.
ABOUT THE BRAND
Micromax Informatics Limited is a consumer electronics company in India and the 10th largest mobile phone player in the world. The company has many firsts to its credit when it comes to the mobile handset market, such as 30-day battery backup, dual-SIM dual- standby phone, QWERTY keypad, universal remote control mobile phone, first quad-core budget smartphone, etc. The brand’s product portfolio embraces more than 60 models, ranging from feature rich, dual-SIM phones, 3G Android smartphones, tablets, LED televisions and data cards. Micromax sells around 2.3 million Mobility Devices every month, with a presence in more than 560 districts through 1,25,000 retail outlets in India. With presence in Russia and SAARC markets too, it is reaching out to global frontiers with its innovative products, and challenging the notion that innovation comes at a price.
FACTS
CREATIVE AGENCY: LOWE LINTAS + PARTNERS
MEDIA AGENCY: ZENITH OPTIMEDIA
SOCIAL & DIGITAL MEDIA MARKETING AGENCY: INTERACTIVE AVENUES
PR AGENCY: GENESIS BURSON MARSTELLER
CMO FILE
Shubhajit Sen has been recently appointed the Chief Marketing Officer of Micromax Informatics. At Micromax, he is tasked with leading all marketing efforts for the company across markets while strengthening the overall brand communication. Prior to Micromax, he was Executive Vice- President – Marketing, Glaxo SmithKline Consumer Health Limited for 21 years. While at GSK, some of his key initiatives include launch of Women’s Horlicks, three launches in OTC in 2007, the best ever re-stage of Boost and award-winning advertising campaigns that drove sales. He is an economics graduate from SRCC, Delhi University and an MBA from IIM-Ahmedabad.
MARKETING TIP
Don’t tell customers what would be a good choice, instead, ask them to make a choice. On your part, choose early between being a generalist or a specialist.
Feedback: saloni.dutta@exchange4media.com
