MARKETING PLANNING

GROUP 4
Shikhar Agrawal Sachi Ahuja
Ayush Bansal Nishtha Gupta
Nikarika Mishra Sagar Taneja
 Industry overview & Current Market Scenario
Mobile phone accessories market in India was valued over USD 1.5 billion in 2017 and is projected to grow at a CAGR of 10.5% in next few years which is currently dominated by unorganized sector. Growing
smartphone penetration will further push the accessories market in India. People add value to their mobile phones through various accessories that enhance the functionality as well as provide additional benefits.
Rise in wireless devices will drive the accessories segment like currently Bluetooth devices are growing
Top selling categories with penetration level

CATEGORY Penetration %
Price
Cases 93% Product Quality
Indian Market Continuous to remain young. This
People have become quality conscious specially
market exhibits strong individual preferences.
Power Bank 78% while buying speaker and earphones as the wire
Consumers are not loyal towards any brand the
quality, sound and bass play very important role.
Chargers 95% same goes with the retailers. Over 40 per cent of
Brands which are famous for quality products are
mobile phone accessories revenues in India will
JBL, Sony and Samsung
Earphone 89% remain under mid-price range. Brands which are
following penetration pricing are ERD and Oraimo
Bluetooth headset 60%

Bluetooth speakers 42% Key Growth

Drivers of
Fitness bands 9%
accessory
Cables 85% business

Screen Guard 95% Service Distribution Channel

Due to change in market dynamics, consumer wants
Battery 89% Service is a key differentiator among organized and accessories at any place. According to 90% retailers
Market Needs unorganized sectors players. Due to lack of whom we interviewed , they accepted that
government regulations in this business there is high distribution channel plays vital role in accessories
threat of new entrants but service policies creates business and companies should not forget online
• Affordable premium product will reach to mass segment and medium to increase awareness. Companies like
an additional value on consumers. Brands like ERD
company selling in that segment will earn maximum profit Philips, Sony and Oriamo are known for their
which is having on counter replacement strategy and
• Demand of cheaper, more efficient and more feature rich products distribution channel in offline retail
achieved significant market share
will increase
• Overall industry will grow and threat of new entrants is very high as it
requires less investment and gives higher margin than handsets
• Company with good warranty and service policy may charge higher
premium than unorganized players
• Power bank demand is declining due to availability of big battery
smartphones
Industry Overview
 Competition Analysis
Product Offerings and Pricing : Market Share in Value (Crores)
Lava , 3.6, 3% Product offerings and pricing
Intex, 3, 2%
• Headset 249-3800 Plantronix,
• Headset 310-1100
Oraimo • Charger 599-1499 5, 3% Unorganised Players
Ubon, 5, 3% • Charger 500-2100
• Speaker 1500-2000
Samusng • Power bank 335-1600
Low Cost • Cables 199-399
ERD, 8, 5% • Speaker 1000-2000
High Quality Syska Syska
Product Distribution strategy:
Distribution Strategy:
Offerings • Intensive distribution channel Oraimo
• Indirectly through offline Famous for
in offline retail Oraimo, 10, 7% ERD and online retailers Power banks
• More focused at the tier
and follows
2/3/4 outlets Ubon • According to retailers, premium pricing
• Known for service strategy
Syska, 11, 7% they have to keep Syska products
• Les visible in Tier1 and Unorganised Plantronix
accessories if they want
Modern Trade Market Players, 79.4, 53% Lava to sale Samsung handsets
Samusng, 25, 17% Intex

Product Offerings and Pricing :

• Headset 200-2800 Brand Customer Feedback Product offerings and

Samsung • charger 999-2100 Pricing :
Philips Good Quality at average Price
• Back cover 450-1000
Most • Speaker 3000-48000 JBL The most preferred earphone due to • Headset 200-400 ERD
innovative • Cables 300-700 audio quality • Charger 200-450
product • Power bank 375- Famous for
Distribution Strategy: Syska Aware only about power bank which 2000 low pricing
offerings
• Two level distribution channel are over priced • Cables 90-150 products
through retailers but not Oraimo Quality is good at given price but no
available at every outlet Distribution Strategy:
awareness
• Samsung Products were not • indirectly through
available to every outlet Lava Brand awareness was there, and offline and online
• Directly through digital plazas quality is good but lack of availability retailers
and innovation

Competition Analysis
 Market Trends

Average accessories Monthly Sold Per store by Volume (Number of units per shop)
Category Margin Price Range Best Selling Specification
Cables, 111, 15% Screen Guards,
182, 24%
Covers and 350- 400% (unbranded) Unbranded - • Back cover with design on
Cases INR 60-300 back or sides in urban market
For brands up to 50% (mostly), in • Flip covers in rural market
Earphones, 125, some cases more than that • Mostly unbranded back
17% Cases and Screen covers were selling across the
Guards are the most market
popular SKUs and this • Branded selling mostly in MT
segment is dominated
Chargers, 167, by unorganized
22% players if customer Screen 350% (unbranded) INR 80-500 • Tempered
Covers and wants to purchase Guard • Flexible glass are considered
Cases, 165, 22% back cover either they For branded up to 35% (mostly), as premium/better quality
have to buy non- in some cases more than that products
Average accessories sold Monthly (Value) branded product or
expensive one
11519 Chargers 100% (unbranded) INR 30-1000 • 1A product is considered as
Cables For branded up to 35% (mostly), cash cow product
in some cases more than that
18058
Earphones
Earphones 80-90% (unbranded) INR 30-4000 • Normal round cables are
18483 For branded up to 35% (mostly), preferred
Chargers in some cases more than that • In ear are perceived as better
quality earphones
23020 • Earphones With mic are
Screen Guards
preferred
23612
Covers and Cases
Cables Around 200-300% unbranded Unbranded– • Braided are considered as
For branded up to 35% (mostly), INR 20-150 premium
0 5000 10000 15000 20000 25000
in some cases more than that Branded –
INR 200-600

Market Trends
 Customer’s Pain Points
For the less costly accessories, Availability in the remote parts of Problems with the designs- like
Incompatibility of the the quality is not up to the mark the country, hence a lack of good the earplugs not fitting properly,
CAMPAIGN and for good quality, the prices
accessories with all the distribution channel. Brands like or the quality- like charger not
are high that’s why brands like
different varieties of Handsets Oriamo and ERD were visible in charging fast, or the low quality
Oriamo and ERD are doing good
in mid price band tier 3 and tier 4 shops leading to fast wear and tear.

PORTABLE New Product

PEN DRIVE/ DATA
CHARGER STORAGE DEVICE EAR PHONES
AND HOLDER
ALL
IN
ONE!
Customer’s Pain Points
FOUR P’s - PRODUCT New Product Offerings Strengths Weakness
USB Slot
- Price range higher than
Pen Drive Slot - Portable and extremely light
individual products
weight (Travel Kit)
(Storage Device) - Awareness about the product
- Simple and Fast Music
- One Place for data storage - Only device’s ear phones will
with easy access be applicable. Others not
Features: applicable
1. Music Control - Call anyone from anywhere
with just one click - Pre-defined Space
2. Caller ID
- Battery Saver
3. Data Storage
- Compatible with all
4. Ear Phones Ear Plugs
5. Portable Charger
smartphones SWOT
6. Ear Plug Holder ANALYSIS
7. Radio Portable Charger
8. Bluetooth (Sensor Based) - Existence of Smartphones
9. IOT Enabled - Growth in Global Market - Continuous innovation in
technology
- Increasing income levels
- Substitute products like IPod,
- Needs of next generation
Smart Watches etc.
- Changing customer needs
- Chinese companies making
Ear Plug Holder replicated products

Opportunities Threats
New Product Offerings
 Competition Mapping

FEATURES NEW PRODUCT FIT BITS SMART WATCH IPOD

Target Audience Travelers, Youth Health Conscious Fitness Freak, Affluent Music Lovers
people watch lovers
Compatibility Any Phone Any Phone Depending on the Apple devices
device
Price Range Medium Low High High

Weight Medium Low Medium Low

Earphone Yes No Yes Yes

Accessibility
Battery Life Sustains for 1 full day Sustains for 1 full day Need to be charged Need to be charged
with one time charge with one time charge more number of times more number of times
Storage System 64-128 GB No Storage 16-32 GB 2-128 GB

Competition Mapping
FOUR P’s - PRICING
Pricing Strategy : Skimming
• Initially charge high price as our product is unique
and has a first mover advantage
• Since this advantage can be copied by other
Chinese manufacturers, price will eventually be
reduced due to increase in competition
• This pricing will allow the firm to recover the sunk
cost before competition steps into this segment

Individual Cost Collective Cost

Charger- INR 250-1000 Manufacturing Cost

+
Ear Phones- INR 50-4000 Transportation Cost
+
USB Cable-INR 50-1000 Distribution Cost
+
Memory Card- INR 80-250 Retailer Cost
+
Bluetooth- INR 500-2000 Marketing Cost
+
Total Cost- INR 930-8250 Packaging Cost

Pricing Strategy
FOUR P’s - DISTRIBUTION Strategy (Distribution Channel)
HQ

Target Audience

Income Based C&F A

Class
22% 52% 13% 11% 2%

Lower Class Lower Middle Class Middle Class Upper Middle Class Upper Class Distributor
Macro Distributor
(Urban, handset distributors)
(UP West, handset distributors)
New Distribution Channel
Divide state into a few parts where we can assign a macro distributor, and connect all
the small distributors to macro distributors. Macro- Distributor will provide products as Retailer
Micro- Distributor Micro-Distributor Retailer
well as service support to Micro-Distributors. Coverage area of micro-distributors will
be clearly and no other distributor will provide services in that area. Example: We can (Ghaziabad) (Saharanpur)
divide UP into two parts : UP West and UP East. In UP West we can appoint macro
distributors and under him we can assign distributors of all the districts like Ghaziabad,
Saharanpur and Mathura Retailer Retailer Retailer Retailer Target Customers

Why do we need micro/macro distribution channel?

Our Target audience lies in the range of Lower middle class to upper class. To target these tiers we need to enter deep inside the market as well as semi-urban
market where distributors has two problems: 1) Low demand, accessories come in bulk order which are not required in some regions which make unprofitable
business for distributor 2) Low margin in accessories segment Aspiring middle class, which, to a
large extent includes young
professionals, entrepreneurs
Advantages of micro/macro distribution channel?
1) Fast Money rotation in business 2) Product will move fast which will increase awareness among customers , and in result company's vision of market
expansion will be achieved 3)Small distributor can order in smaller quantity 4) Larger market coverage as in rural area markets are scattered 4)Focus on rural as
well as semi-urban market will increase
• Quality Products at affordable price
• Robust Service Propositions
After Sale Policy • Local marketing campaign to increase
We will be following the conventional method which will include the consumer to return the damaged product to the retailer. There will be a 6 months word of mouth publicity
warranty policy. The following factors should be kept in mind while returning/exchanging: 1) Damaged during delivery 2)Hardware/ Software issues • Premium product perception

Industry Overview
 THANK YOU

The End