Download - LAVA Mobiles (Final)
LAVA Mobile PhonesGet the Power in Your Hand
Introduction
Industry: Telecom Hardware
Category: Mobile Phone Handset
Promoters: Hari Om Rai, Shailendranath Rai, Sunil Bhalla, Vishal Sehgal
History: 27 May 2009 Company got incorporated
Turnover: 750 Crores INR
About LAVAVision: To Empower People to do more, to be more
Goal: By 2014 LAVA is a $ 1 billion Company trusted by people through
innovation and empowerment.
Core Values:
Integrity:
Steadfast adherence to high moral and professional
Passion for Excellence:
Intense keenness to stretch the limits of great in everything we do
Adaptability:
The ability to quickly evolve in response to changing circumstances
Organizational Structure
R &DMr. Arvind Jha
Designing Team
Innovation Team
General AdminMr. Sunil Bhalla
HR
Finance & Accounts
MarketingMr. Vishal Sehgal
Branding & Advertising
Sales Team
LogisticsMr. Rai
Distribution
After Sales Services
A distinguished management with an excellent industry track record
Mobile Handset Market Share in India
Indian mobile Industry is the fastest growing across the world adding 15-20million
subscribers every month
It is 2nd largest market after china in terms of number of subscribers
All India Cellular Subscriber base (as on July - 2011) = 800 Million (Approx)
Mobile Handset Market Share in IndiaNokia leads the GSM market with 63% market share
Market Share of LAVA : 4%
*Others Include: Micromax, LAVA, Karbonn mobiles, Spice, Lemon, Intex
Growth Drivers of LAVAUnique innovations at affordable cost through strong customer understanding (pocket friendly &functionality rich handsets)
For Instance:
Alpha Key Pad
IPS Screen – To facilitate wide-angle viewing
Dual Sim Handsets with dual charging points
Multilingual Handsets – To target rural customers
Maximum Battery life of 30 days
Milestones – The First’
• 100 distributors in just 47 days by 23 TM’s – 5 State Launched (UP-E, Punjab & HP, Raj., Delhi, Haryana and Mumbai Distributors appointed in just 59 days by 34 TM’s – 12 States Launched (UP_W, TN, Gujarat, Bihar, Jharkhand, WB, NE, Orissa, AP, Karnataka & Kerala, Maharashtra and Goa.
• The first1 Lakh customers-106 days.
• The next 1 lakh customers – 43 days.
• Company sold 5 lakh handset -177 days.
• March 31, 2010 Co. touched turnover of 307 crore with currently 2.7 millions plus using LAVA handset.
Brief on LAVA Mobile
LOGOParent Company Lava Mobile
Category Mobile phone Handsets
Sector Telecommunication
Tagline/ Slogan Power in Your Hands; Life Gungunaaye
USP Moderate functions at low price
Segment Low-Medium range Basic Phones market
Target Group Low income consumers, Tier-2 cities, Villages.
Positioning Replacing the Biggies like Nokia, Samsung from the low end phones market. As a second phone
Basic Low Cost Models
Price Range: 1699 -2999
No. of Handsets: 10
Features: FM Radio, Torch, Dual Sim, Long battery life, Indian Calendar
Models: LAVA KKT 15, KKT 11, KKT22 etc.
Mid Segment Models Price Range: 3000 - 4999
No. of Handsets: 8
Features: FM Radio, Bluetooth, Sound recording, Long battery life, SRS WOW HD,
Internet surfing, Colour Matcher, MP3 player, Mobile tracker
Models: LAVA ARC 02, ARC 241, LAVA KKT25, KKT 35, LAVA M30 etc.
LAVA mobiles plan to launch 2 handsets every month
Premium Segment Models Price Range: 5000 and above
No. of Handsets: 3
Features: IPS screen, JAVA embedded games, Map my India, nimbus, Mini opera,
GPRS, One touch music player
Models: LAVA A9, LAVA A10, LAVA B5
LAVA – Distribution Network Has a network of 1000 distributors
Has 50,000 Points of sale through retail counters
Presence in North, some parts of South & West
Two Base Mechanics
After Sales Support Service LAVA has 750 after sales
service centers across IndiaNo.of Service Centers across India
1000
1200
400550370
335
380
436
750
NokiaSamsungMicromaxKarbonnSpiceLemonZTEVideoconLAVA
SWOT Analysis (Strengths)
Distinguished management and full implementation of TQM
Planned foothold in unexplored rural segment which has high potential
Customer driven Innovations
Pocket friendly prices with rich featured applications
Dedicated R & D facility at China and Bangalore
Substantial no. of after sales centers comparable with Industry in short span of two years
Lava boasts of a network 1000 distributors and 50000 retail counters (P.O.S.)
SWOT Analysis - Weaknesses After sales services not up to the customer’s expectations
Dearth of qualified and experienced engineers due to rural positioning
and high attrition rate
Low consumer confidence and low reliability
Constrained margins being in low and medium segment
Relatively high emission of radiation
The user interface does not satiate the needs of tech savvy consumers
Only single product in the kitty compare to versatile competitors
Poor brand awareness
SWOT Analysis - Opportunities
Target Premium segments in urban market
Premium segment still uncovered
Concept of 2nd phone
Substantial part of Rural India is still uncovered
Increased Per Capita Income of Indians
Indian mobile handset market estimated to grow at around 8 million per
month
Triple SIM handsets in the pipeline
SWOT Analysis (Threats)
Multiple manufacturers in the same segment
Brand conscious customers do not subscribe to local brands
Expansion entails huge capital investment
Low margin due to cut throat competition
Difficult to enter in premium market due to presence of established players
Innovations: Sales Promotions – Rural
Strategy 1 –
Closed User Groups (CUG)
Village Panchayat Levels
Coordinate with Local Service provider
Strategy 2 –
Target “Haat”, Melas, Week Bazars
Tie Ups with Retailers for Showcase/Shelf display of products
– No investment but commission basis to retailer
Home delivery of product within 48 hours
Innovations: Sales Promotions – Urban
Strategy 1 –
Tie up with premium Service Providers
Full cost of cell phone to be returned spread over two years
Monthly deductions in the from the assured billing (slab-wise)
Monthly deductions = Sale Price of the cell Phone/24 Months
Promotional cost will be shared by M/s Lava and Service
Provider
Recommendations: Brand Awareness
Rural
Scheduled Ads in newspapers of local language
Digital Media with Popular regional TV channel
Association with camps on Agricultural Know how & Illiteracy
Eradication
Radio jingles
The connection of Dual Sim with Family Planning Programme
Urban
Teenager Target through teaser Ads on MTV, 9XM, ESPN,Zoom
Print Media : Mirror, Mid Day .
Canopies/ Standees in mallls
The Next Big Thing for LAVA
• Roping in –People centric Applications
• 3 G The way Ahead
• Android Phones
• Tablet
• Smart Phones
• Triple Sim phone
Motto: The future device will be one that is
• Easy to carry,
• Connected all times &
• Delightful to use.
“When you are willing to make sacrifices for a great cause, you will never be alone.”