SUMMER TRAINING REPORT ON

EXPANSION OF INTEX IN INDIA

For INTEX TECHNOLOGIES By: Roll no. Student id:

In partial fulfillment for the award of the degree Post Graduate Diploma In Business management Session:

INDIAN INSTITUTE OF PLANNING AND MANAGEMENT

Acknowledgement
We express our sincere gratitude to our faculty mentor for his superb

guidance and insightful information which helped us to give a full fledged framework to this project and consistently motivated us to do things differently. Working on this project on Intex expansion in India was a great learning experience. We got the opportunity o actually analyze how a company expand themselves to be in a competitive market. We would like to thank all the people involved in this project for their help and suggestions without which this report would not have materialized. A word of thanks to the all the Intex Centers and other mobile centers that helped us to get an idea about the existing position of the various models of Intex. Finally, we would once again thank our faculty for giving us this fulfilling opportunity to work on this project report. With Regards,

Contents
S.No. 1. 2. 3. 4. 5. Particulars Executive Summary Introduction Objectives Methodology Analysis and interpretation SWOT Analysis BCG Matrix Porters 5 Forces Model Findings Recommendations Bibliography 64 Page No. 4-7 9-43 44-45 47 49-58

6. 7 8.

60-61 62-63

Executive Summary
Iniex is the world's largest manufacturer of mobile devices; a leader in, services and solutions for network operators; and a driving force in bringing mobility to businesses. Intex is about enhancing communication and exploring new ways to exchange information. It produces mobile phones for every major market and protocol, including GSM, CDMA, and W-CDMA . This Project has been undertaken with an objective of analyzing the EXPANSION STRATEGY of intex in India. To Achieve Our Primary Objective Our Team with the Help of BCG and SWOT Analysis has tried to explain the Dual Market and Three Tier Expansion Strategy of Intex in India .(Page no.-5) We have collected data through primary(visit to mobile centers)

& secondary sources (internet, newspapers and business magazines) Overview of Expansion Strategy of Intex in India. Dual Market Strategy of Intex. They have segmented the market on the basis of income i.e.,

Upper Income and Lower income Group .For upper income group they are into manufacturing mobile phones with high technical

facilities like multimedia services etc. For lower end they concentrate on manufacturing mobile phones which provide just basic voice and messaging facilities. Dual market strategy of Intex is also reflected in its

distribution channel network. Besides selling their sets through the general retail outlets and their priority centers they are on a spree of going under Strategic Alliance with service operators under which they manufacture specific handsets. Three-tier strategy of Intex.

Under this strategy they have divided the market on the basis of needs of customers and it is categorized in three categories.

High Volume Under this category they manufacture low-cost mobile phones which are being produced for the sole purpose of providing the customers with only basic features.

High FashionUnder this category they are into producing fashion oriented sets. High Technology Under this category they produce handsets which are technology oriented. Actually this strategy is only an expansion of its dual strategy.

 SWOT Analysis.

In SWOT analysis we have given the strengths, weakness, opportunity and threats of Intex Company in India. BCG matrix of few selected model of Intex. In BCG matrix we have focused on different models of Intex and have divided them under question mark, star, cash cow and dog with respect to the current market scenario of India and at the same time we have also provided detailed findings on the basis of BCG model. We have also tried to relate three tier expansion strategy of Intex with BCG matrix in order to give a complete analysis. Porters 5 Forces Model

In this model, we have tried to analyze Intex existing position on the basis of the 5 forces given by Porter, i.e., Competitive rivalry, power of suppliers, power of buyers, threat of new entrants and threat of substitutes. The major findings of our project are:Intex still is the largest player in Indian Mobile Market and has the ability to lure its customers very well.

Intexs Expansion strategy has been quite successful inspite of huge competition. It has the policy of always bringing the best to the people and keeps innovating new products with the technology.

Some of the critical recommendations that we have listed are :-

Intex should create customer awareness in the form of

educative promotion and at the same time should also look to educate the dealers about the latest development in the field of technology.

Intex needs to develop models which are less in weight

and at the same time more fashionable. It is also important that Intex targets its customer segments not only in Metropolitans but also in small cities with proper advertising and promotions.

COMPANYS INTRODUCTION

Introduction About the Company

Intex Technologies is a 15-year-old IT Hardware, Mobile Phones and Electronics Company, headquartered at New Delhi. It has a pan-India presence though its own network of 35 offices and 500+ service points. Brand 'Intex' covers 9 business segments- Computer Peripherals, Mobile Phones, PC, Consumer Electronics, Security Software, Power Electronics, Retail, Enterprise and International Business. It has built for itself a high credibility amongst its vast network of channel partners and several million satisfied end users by offering value-for-money quality products supported by effective service and a consistent policy of transparent, fair and ethical dealings. The business segments cover a portfolio of 28 Product Groups spread across 350 items including Mobile Phones (Dual & Triple SIM), Multimedia Speakers, Desktops, TFT-LCD/LED monitors, LCD & CRT TVs, DVD players, Computer UPS, Cabinets, Headphones, Web Cameras, Security Software (Antivirus) to name just a few. In Computer UPS, INTEX occupies 1st position as the most selling brand as per the quarterly IDC Tracker. For several other product groups such as Multimedia Speakers, Keyboards, Mouse, Add-on cards, etc. also, Intex enjoys a enjoys a leading market share in many states in India.

Sales are routed through a channel network comprising of 3000+ distributors and 20,000+ dealers spread across the country. The company launched its chain of exclusive retail outlets- INTEX SQUARE in Sep, 2009 and has opened 80 stores so far. Products are also available at more than 130 dedicated counters of reputed chains of hyper markets and specialty stores across the country. Intex's manufacturing domain comprises of three manufacturing units belonging to the Group located at Jammu (30,000 sq.ft. & 20,0000 sq. ft built-up area) and Manpura (Baddi, HP) (51,000 sq. ft). The units have been producing desktops, multimedia speakers and PCBs and had also produced UPS, home UPS, notebooks and DVD players in the past. The company intends to vertically integrate backwards into manufacturing of more products and also bring in foreign technology from global leaders. During the last 8 financial years, the company turnover has increased from INR 32 crore in 2001-02 to INR 733 crore in FY 2010-11 (at a CAGR of 32% over the last 5 financial years). Our aggressive growth journey has been recognised by reputed IT trade journals. Dataquest has been rating 200 fastest growing IT companies in India, covering both Software and Hardware. Intex has improved its ranking in this survey in the last 6 years from 108 to 87. The company has also been recognized by consumers and channel partners through various rankings and awards received over the years. Some recent highlights are:

Most Visible Indian Brand, Best Multimedia Speaker & User Friendly UPS by NCN, May, 2011

Best Peripherals Brand by Digital Terminal magazine, May, 2011 Amongst the Top 300 most trusted brands of the country, The Brand Trust Report, Jan, 2011

A score of 9.5 (out of 10) and a place amongst the Top 10 Innovations for INTEX Mobile Phone V.SHOW (Indias first mobile phone with in-built projector) by Rajiv Makhani on the popular show- Cell Guruaired on NDTV India and NDTV profit, Dec, 2010

SMB Champion Award from Intel, August, 2010 Digit magazines Best Buy Award for INTEX mobile phone IN 2020 Elegant, April, 2010 edition

Largest selling brand in UPS category as per IDC India Q 2, 2009 Tracker-Market Review (August, 2009)

A score of 9.1 (out of 10) for INTEX Mobile Phone IN 4495 by Rajiv Makhani on the popular show- Cell Guru- aired on NDTV India and NDTV profit.

Intel Premier Partnership (IPP) Track I channel association with Intel (March, 2009)

Best Value award for Intex Gaming Keyboard in Chip magazine, (February, 2009)

Intex is the most persuasive brand (in PCs) as per a survey on India's Favourite IT Brands in PCQuest (September, 2008)

RECOMMENDED Award for Intex IT 22 TV LCD Monitor from AV MAX Magazine (October, 2008)

INNOVATION CHAMPION & STAR ACHIEVER award from Intel (December, 2007, June, 2008 & November, 2008)

'Special Commendation' medal from Indian Trade Promotion Organisation (ITPO) in IT & Electronics category at India International Trade Fair (IITF) (November, 2007)

'Best Buy' Award for Intex Platinum PC in Digit (September, 2007) 'Best Buy Silver' Award for Intex mobile phone- Infi in Digit (May, 2007)

The brand has now been growing beyond computer peripherals. Over the last 3-4 years, Intex has expanded its product offerings by adding more products with a consumer interface such as Mobile Phones, LCD TVs, DVD Players, TFT-LCD /LED Monitors, Desktop PCs, Antivirus & Internet Security, etc. Intex is ISO 9001:2008 certified. All India sales & service operations are managed on a world-class collaborative business solution- SAP. The aftersales service solutions are web enabled (e-service). Intex's own Virtual Private Network roll-out has also begun. Total Quality Management (TQM) and Business Intelligence initiatives have also been launched.

The company has a strong Centre for Design and Development in Delhi which is well-equipped with modern facilities and highly qualified engineers looking after product development, specifications, benchmarking, quality up-gradation, technology development and scanning, etc. This activity ensures that state-of-the-art products are offered as per the latest global standards. One of the most valuable assets of the company is its team of more than 1800 employees with over 9000 man years of experience. The average age of an Intex employee is 30 years. Intex acknowledges the support and cooperation provided to the company by its dedicated network of channel partners and the hard work of its employees. The vision of the company is to make itself a globally respected name and to improve the quality of life of the people. Mr.NarendraBansal (Chairman & Managing Director, Intex Technologies (India) Ltd.) Mr. Narendra Bansal, 47, is the CMD of Intex Technologies (India) Ltd. He is a first generation entrepreneur and a 'visionary' in the true sense. Mr. Bansal is the driving force behind Intex. In the year 1993, Mr. Bansal identified IT Hardware as a field with high growth potential and initiated the incorporation of Intex Technologies (India) Limited in 1996. He started business that year with just one item - Ethernet Cards under INTEX brand and had to face severe competition from various MNC brands who ruled the market.

With his keen interest about the products and their manufacturers located in Taiwan and China, he was able to rapidly expand the product range to over 26 product categories including Computer Peripherals, Mobile Phones, PCs, TFT-LCD / LED Monitors, Mobile Phones, LCD TVs, DVD Players, Home Theatre Solutions, Multimedia Speakers, Headphones, Web Cameras, etc. Now, the conglomerate has three manufacturing associate units at Jammu and Himachal Pradesh. In an independent survey by DataQuest magazine, of India's fastest growing 200 IT companies, Intex has been rated at 101. In the last 5 years, Intex has moved up in rank from 108 to 101 and, now 87. This survey covers both Software and Hardware companies. Under his dynamic leadership, the growth at Intex has seen a substantial acceleration. Company turnover, which reached a level of Rs. 32 crores in the first six years of business (2002) has since increased to 593 crores in next eight years (2010), with a CAGR of 38% (over last five years). Head count has gone up from 150 to more than 1800. Mr. Bansal is a hands-on Manager who believes in walking the talk and managing his business through systems and processes. Considering company's diversification into various new verticals & requirements of the ever-changing business environment, the company has upgraded its operations from its own home grown ERP to SAP. Mr. Narendra Bansal finished his graduation in Commerce from Delhi University. Driven by a strong desire to build business and discharge social responsibilities, his family runs charitable educational and health activities

for the benefit of the urban under-privileged people of Delhi. He is also a member of various organisations working towards social causes like Rotary Club of Ashoka, Manthan and Rajasthan Club. Mr Ramesh A. Vaswani, 67, is the Executive Vice Chairman of Intex Technologies (India) Ltd., New Delhi and is responsible for organizational and business development, strategic decisions and overseeing the operations.. A gold medalist in Mechanical Engineering from the Indian Institute of Technology-Madras, Chennai, Ramesh Vaswani has 44 years of vast and rich industry experience in various sectors in India and overseas, including refrigeration, diesel engines, automotive components, plastics processing and packaging, small appliances, electric motors, industrial flexible metal hoses, Software applications, IT hardware, etc. He has been a member of various committees at Confederation of Indian Industry (CII) and PHD Chamber and was also Vice-Chairman of Indo-Italian Chamber of Commerce and Industry (NR). Currently he is a member of CII National Committee on ICTE Hardware Manufacturing. He started his career in 1965 as a Senior Management Trainee with the reputed Shriram Group, Delhi and held several senior positions over a period of 14 years. His last assignment in the Group was that of General Manager of an Automotive Component manufacturing company where he was responsible for turning around the sick company and bringing in a fresh Technical Collaboration agreement with a globally reputed Japanese manufacturer. In 1979 he took up an overseas assignment for 5 years, as Managing Director of two manufacturing companies of CHELLARAM

Group in Nigeria. He successfully turned around the 2 sick companies and also brought in new technology to Nigeria for local manufacturing of a widely used sophisticated flexible packaging film. On returning to India in 1984, he was Vice President of INALSA, Delhi where he set up 2 new businesses, Appliances Division and Flexitubes Division. The latter was hived off as a JV and finally taken over by a British MNC. From engineering industry he switched over to IT industry in 1999 and was Managing Director of a Software company offering Baan ERP solutions, SAS Data Warehousing solutions, etc. In 2000 he established an alliance with a leading Canadian company for a large Indian Group to set up a new business, dealing in high-speed wireless data transfer radios. This business was moved in 2002 to INTEX Group. During his career, Ramesh Vaswani has taken a keen interest in development of systems and processes and human assets. His aptitude for designing relevant MIS reports, analysis of data, trouble shooting and root cause analysis have been instrumental in turning around sick companies and substantial improvements in internal efficiency of many companies. Many of his trainees and reportees are holding key senior positions in reputed companies in India and overseas. Ramesh Vaswani has been with Intex for 8 years. Under his leadership, the growth at Intex has seen a substantial acceleration. Incorporated in 1996, Intex achieved a turnover of Rs. 32 crores in the sixth year (2002) of business which was stepped up to 593 cr. in the next 8 years (2010), giving a CAGR of 38 % (over last five years) and a growth rate of 2-3 times the industry growth rate. In the last Annual Survey conducted by Dataquest in

July 2010, Intex was ranked 87, amongst the 200 fastest growing IT companies in India. Intex product range covers IT Hardware, Mobile Phones and Electronics including INTEX branded Computer Peripherals, Mobile Phones, PCs, TFT-LCD / LED Monitors, Mobile Phones, LCD TVs, DVD Players, Home Theatre Solutions, Multimedia Speakers, Headphones, Web Cameras, etc.

Strategic Alliances

INTEX's Alliances and Partnerships ensure our customers receive the best the industry has to offer. Many of INTEX's innovative services are underpinned by technology and solutions provided through partnerships with industry-leading organisations, including Processors Intel: Certified Premier PartnerAMD: Certified Platinum Partner

Seagate: Premier Partner

Industry Recognition

2011

85th rank amongst top 200 fastest growing IT companies (both hardware and software) : As per the annual survey conducted by DataQuest, covering both software and hardware companies. Rank improved in the last 5 years from 108 to 87 and in July 2011, to 85.

Most Visible Indian Brand, Best Multimedia Speaker & User Friendly UPS Best Peripherals Brand by Digital Terminal magazine, May, 2011 Amongst the Top 300 most trusted brands of the country, The Brand Trust Report, Jan, 2011

2010

87th rank amongst top 200 fastest growing IT companies (both hardware and software) : As per the annual survey conducted by DataQuest, covering both software and hardware companies. Rank improved in the last 4 years from 108 to 101 and in July 2010, to 87.

Digit magazines Best Buy Award for INTEX mobile phone IN 2020 Elegant, April, 2010 edition

2009
No 1 - most selling UPS brand as per IDC Quarterly Tracker (Q 2, 2009) Track I Pemier partners of Intel, March, 2009

2008
Most Persuasive Brand (n PCs) : As per a survey conducted by PCQuest, Sep, 2008 issue with more people likely to purchase it than those who could recall it on the top of their mind.

 101st rank amongst top 200 fastest growing companies : As per the annual survey conducted by data quest, covering both software and hardware companies. Rank improved in the last 3 years from 108 to 104 and in July 2008, to 101.

2007
'Best Buy Silver' award for Intex mobile phone Infi amongst eight other models of Nokia, Motorola & Bleu brands in popular magazine Digit, May, 2007. Cyber Media Lab's Highly Recommended Award for Intex Notebook Performer 032 DW in PCQuest, April, 2007.

2006
360 Magazine's Bhoomi Brand Awards, August, 2006

2nd rank in PC category,TFT-LCD Monitor category, Speakers category and Mouse segment. 3rd rank in CRT monitors and Keyboard segment.

Intex 029CD notebook ranked fourth (in overall rating) amongst nine other players in a review of budget notebooks by Cyber Media in PCQuest, August, 2006. Cyber Media Labs' Highly Recommended Award for Intex Gold PC in PCQuest, February, 2006.

2005 2nd rank for speakers in Icon Of Trust Awards by Digit magazine, February, 2005. .....Golden Rhino awards organized by 360 Magazine, April, 2005

3rd rank for speakers. 3rd rank for cabinets.

Speakers awarded in Value For Money awards by Chip magazine, August, 2005. Bhoomi Brand Awards organized by 360 Magazine, August, 2005

1st rank in speakers category. 2nd rank in mouse category. 3rd rank in TFT- LCD monitor category. 3rd rank in keyboard category.

2004 Golden Rhino Awards organized by 360 Magazine, April, 2004

1st rank in speakers category. 2nd rank in mouse category. 3rd rank in keyboard category. 3rd rank for cabinets.

Bhoomi Brands Awards organized by 360 Magazine, August, 2004

1st rank for speakers.

Most Admired Company Survey by CRN magazine, November, 2004

2nd rank for cabinets. 2nd rank in speakers and multimedia kits category.

2003 Golden Rhino Awards organized by 360 Magazine, May, 2003

2nd rank in speakers category. 2nd rank in mouse category. 3rd rank for cabinets. 3rd rank in keyboard category.

1st rank for speakers in Users' Choice award by NCN magazine, July, 2003.

Most Admired Company Survey conducted by CRN magazine, November, 2003

Intex was rated as the sixth most admired company. 1st rank in speakers category. 2nd rank in cabinets category.

Vision, Mission & Goals

Vision

Make Intex a globally respected name. Improve the quality of life of the people.

Mission

Focus on customer delight. Seek technology and trade leadership. Build corporate image. Quality people. Enhance work culture & environment. Better and effective communication. Optimise resource management. Set benchmarking standards for corporate governance.

Sustained sales and profitability.

Goals We will realize our vision by

Market leadership. Ethical practices. Innovating in all facets of life. Caring for the stakeholders. Uplifting the "Deprived" by providing Healthcare, Education, Vocational Training and basic needs. Conducting ourselves as good citizens.

Intexs Strategy "The Indian market is growing rapidly and the mobile penetration rate is still low. It's got great potential." Song Sauk-hun, Analyst at Gartner We see a great potential for the continued growth of mobile telephony in India where mobile penetration is relatively low. As the leading brand in mobile communications in India, Intex will continue to deliver products which cater to the needs and preferences of Indian consumers."

INTEX - MADE IN INDIA When India witnessed the introduction of mobile phones in the mid-1990s, Motorola, Ericsson and Intex were the major players in its handset market. However, as things stand today, Intex is way ahead of its rivals with more than 74-per cent market share, compared to around 32 per cent globally. According to ORG GFK estimates, in the color segment too, the company has increased its market share to 55 per cent in March 2005 from 33.7 per cent in October 2004. Its nearest rival in the Indian market is a distant second with 7.8 per cent in March 2005. In 2005, Intex was recognized as the Brand of the Year by the Confederation of Indian Industry, Indias apex industry association. Its high brand recall, well-established distribution channels and being most preferred by the consumers contributed to making its choice for the award.

Mr. Sharma, Managing Director, Intex India, said, Intex was judged by brand consulting firm Vertebrand as among the ten most valuable brands in the world, and it was an honour to receive the award in India, too. He added, This award is particularly gratifying for us, since we are only 10 years old in India. This is also reflective of the rapid evolution of the mobile phone from a corporate productivity tool to an essential communication device for people from all walks of life. Last year, it won the prestigious Golden Peacock Innovative Product/Service Award for the N1100. In 2004,

it was also declared most respected company in the consumer durables sector by Business world magazine. The company was also invited by Harvard University to talk about its amazing success in the Indian the market. Intexs business and market strategies combined with management style in India have merited the legitimate attention worldwide. What made the company a resounding success story is its extensive product range, anticipation of consumer trends at the very outset and a retail strategy. With a view to developing an intimate bond with the local customers, Intex introduced tunes like Sare jahan se achcha in its 5110 model. In 2001, the mobile giant introduced the Hindi text messaging facility in the 3610 model. Intex has recently launched a campaign named Jaago India Jaago which captures a new era of mobility. Elaborating the rationale behind the Jaago India Jaago advertising campaign, Mr. Sharma said, Indians are extremely proud of how the country has been progressing. The growth of mobility is one of the key indicators of the economic progress in India. The advertising campaign therefore uses theTalking Alarm functionality of the Intex 1110 and 1600 as a metaphor to convey how more and more Indians were waking up to mobility through Intex handsets and participating in the progress. Sensitive to rising costs, Intex is all set to manufacture in India. It has set up a manufacturing facility for mobile devices in Chennai, the state capital of Tamil Nadu in southern India. The company has invested US$100-150 million in the facility, where the production is expected to begin in the first

half of 2006. Pekka Ala-Pietil, President & Head of Customer & Market Operations, Intex Corporation, said, Establishing a new factory in India is an important step in the continuous development of our global manufacturing network. As the CDMA market in Asia-Pacific is on its way to robust growth, Intex set up its Code Division Multiple Access (CDMA) facility in Mumbai, which provides software and technical support to CDMA consumers in India and other Asia-Pacific countries. Intex views Asia-Pacific as an important region for Intexs CDMA operations. The creation of a new CDMA R&D facility in India is part of the continuous expansion of Intexs global efforts to grow and invest in the CDMA business in this region. They are also constantly looking at opportunities to expand our R&D activities to include markets outside the US. The establishment of such a facility in India testifies to their long-term commitment to this region, Reiterating Intexs commitment to the growing CDMA market in India, Managing Director, Intex Customer and Market Operations, India, said, India is one of the fastest growing cellular markets in the world. 8 With the rapid growth of Intexs CDMA customer base in India and the region, our R&D facility in Mumbai will help us provide centralized software support and technical expertise to cater to the specific market needs in India and this region. Intex has R&D centers in 11 countries throughout

the world. The company considers that R&D is paramount in realizing Intexs vision of Life Goes Mobile and retaining its leadership role in mobile communications. In 2003, nearly 20,000 employees almost 40 per cent of the companys total workforce worked in the area of research and development.

Indias first mobile call was made via Intex GSM network and on Intex handset in 1995. Intex has strong leadership across major segments of the Indian market: monochrome, colour and camera. Making another stride in the Indian market, in March last year Intex opened a dedicated Concept Store to ensure an easy and informative shopping experience. The store which is based on the pattern followed by Intexs concept stores in the European countries features the full range of the companys offerings, including handsets, mobile enhancements, ring tones, graphics, games, software and exclusive Intex merchandise. Mr. Sharma said, We are constantly looking to enhance the consumers experience with the Intex brand. The Intex concept store provides customers with an interactive and informative shopping experience and the opportunity to experience the product before making a purchase decision. Besides offering Intex products, the sto re also houses an Experience Zone and a Intex Lounge. As part of its distribution strategy, Intex has ensured that it has a presence of its priority dealers in more than 255 towns. It has the widest care network

with a presence in 408 cities. The company has some 560-odd care centres with 25 hi-tech facilities In the developed world, the mobile market is becoming saturated. As most adults already carry a mobile phone, existing subscribers are switching in droves to todays more advanced models. The landscape in India is somewhat different. Here, both new and existing users are driving the market. Meanwhile, the number of mobile phones in use has overtaken the number of fixed-line phones in 2004. Talking about the expansion strategy of Intex in India, it follows these two basic paths 1) DUAL MARKET STRATEGY 2) THREE-TIER EXPANSION STRATEGY

9 1. Dual Market Strategy

DUAL MARKET STRATEGY

INCOME SEGMENT

DISTRIBUTION SEGMENT

INCOME SEGMENT
UPPER SEGMENT LOWER SEGMENT

DISTRIBUTION CHANNEL

PRIMARY

SECONDARY

Income Segment No One-Size-Fits-All Approach Market segmentation is the basis of EVOLUTION of Intex mobile phones.

Intex uses a dual market strategy around the world to address high-end segments with multimedia and other sophisticated services while simultaneously driving voice and basic messaging at lower income segments. They focus on low total cost of ownership from both the operator's and the consumers perspective. For the operator this means creating profitable business in the low ARPU segment, and simultaneously for the consumer they offer affordable, yet attractive mobile devices. This is their way to stimulate growth. In an attempt to reduce the "cost of ownership" of networks to cellular operators (whom it calls the company's `customers', as against mobile users who are identified as `consumers'), Intex has come out with prototypes of equipment that can operate in a non-air-conditioned environment and also totally "shelter less" network equipment sites that can withstand the natural environment. A system of "prepaid tracking" has been introduced to enable subscribers to buy more call time or transfer entitlements without having to buy a SIM card. "Visual Radio" enabling visual access to the radio station is another product in the stable. Though Intex is involved in both GSM and CDMA phone sectors, its advice to Indian operators ("customers") in the CDMA segment is to switch over to WCDMA since the CDMA technology has exhausted its potential for further evolution in a competitive manner. Distribution Strategy

Intex always believed India as the potential market, Intex believed India was market to be explored. Intexs strategy in India is to explore, identify and extract revenue from the most profitable and fastest growing segments of the business and anticipating consumer needs in this area, and developing innovative products and services Intex intends to capture profitable segments of the corporate market by offering products and services that will benefit both companies and individual business people a like. Intex thinks it must cultivate a strong local presence in all growing markets and pursue collaboration and investment opportunities in order to obtain complementary technologies and a strong market position. Intexs commitment to India is fulfilling their promise to bring high-quality equipment and services to provide world class mobile services to the Indian consumers. In order to maintain its market share and deliver the India consumers of what they really deserve i.e. high-quality equipment and services Intex decided to opt for DUAL MARKET STRATEGY . Dual Market Strategy of Intex is to capture Indian market via two ways; the two ways are as follows 1) First is to sell products under the sole banner of Intex without any strategic alliance with any corporate house following a simple distribution network, so as to form a permanent image in the minds of customer. 2) Intex always knew that mobile service providers are life line of India, so in order to penetrate rural market and provide India consumers with world class high quality services Intex decided to go in with strategic alliance with leading service providers of India.

This teaming up with strategic partners helped Intex to penetrate deeper in Indian market and at same time helped Intex increased its revenue. This strategy gave Intex a clear edge over its customers.

Three Tier Expansion strategy This strategy followed by Intex to expand their business is also based on more or less same mantra of segmentation. The only difference lies in the fact that under this expansion strategy . They believe that the basic thrust behind owing a mobile phone is different for different class of people and accordingly they design and develop newer models for each section. Based on this segmentation they produce three categories of mobile phones (that is why it is called three-tier expansion strategy) HIGH FASHION HIGH VOLUME HIGH TECHNOLOGY

HIGH TECHNOLOGY

INTEX 8810 The company is now all set to take advantage of the imminent convergence between mobile phones and the Internet. This category is specially designed and developed to cater to the needs of professionals. In this mobile handsets category, Intex is aggressive in developing and marketing , whose 8810 version is already the world's smallest multimedia computer, offering features like a mega pixel camera, 3G (third generation) connectivity, push email, an HTML browser, music player and FM radio. Car navigation is also being built into the 8810 as an innovation, it was stated. Another version, the 6660, was the world's first camera 14

phone equipped with Carl Zeiss optics and takes mobile photography to new levels, with high quality resolution and the possibility of instant printing and sharing (with other mobile users). The Indian market for mobile games is expected to reach $336 million by 2009. Last summer, Intex debuted its first game device in India (the N-Gage QD). India is an important destination for Intex. The company considers the country among top five markets in the world. Providing network equipment and mobile handsets in the country, Intexs presence in India dates back to 1995 when the company started its operations here. Now, along with the N Series of Mobile, Intex has come with the other Series which is the most High tech of all its models. Some of these models are Intex 6661 with wide, high resolution display, faster connections creating competitive edge for the professionals. It has internal security: device lock and device wipe Additional security solutions separately available, such as Point sec Data Protection and Symantec Firewall and Anti-virus and much more. .In its stride towards more and more sophisticated but simple-to-use multimedia devices built into the cell phone, Intex is partnering leading technology players like Microsoft, IBM, CISCO, Avaya, Symphony, CNN, HP and Kodak. HIGH VOLUME

Some people owe mobile phones for the sole purpose of using it as a medium of communication. Actually this strategy is somewhat an extension of their dual market strategy. The segment using this category of mobile phones comes under the lower end segment of their dual market strategy. And this is the largest segment with respect to number of consumers (that is why the name high volume is attached to it) . In order to maintain the existing spirit of competition in the market, Intex has declared its plans for further broadening its R&D and also a reduction in handset prices. According to Intex the potential market of millions of customers in the lower priced handset segment is waiting to be exploited. Intex is planning to move from volume production of low-end mobile phones for millions of new users, to a wide range of low and high-tiered devices. They believe that mobile telecommunications is the most cost effective tool especially in the rural areas in order to access communications. Another thing in strategy that they see in India is the rich culture. In India,

there is not just one solution to explore, but there has to be many solutions and they are willing to work with the operators in order to explore them. Most concretely, consumers can see that in Intex they are adding new languages in mobile phone. Depending on the mobile phone model they intend to have up to 9 Indian languages supported in a mobile phone and this is of course increasing all the time. Languages are very important. They try to make user interface more practical for people who have difficulty in reading and writing. Often it is heard that someone had bought a Intex mobile phone and didnt have to read the handset manual because it was so easy to start to use. They are also working on having interfaces in mobile handsets, which are more graphical, more intuitive. Also, in some of the new handsets, we can learn already, over the handset how to do certain things, not just by reading but also by watching. It is like watching a learning presentation before we start to use our mobile. Keeping in mind the specific needs of the customers, Intex introduced the first Made for India model, the 1120 i, which is the largest selling model in the Indian GSM handset market. Another phone which has been introduced by the company specifically for India is 1108. These phones have been developed after intensive research on the Indian customers specific needs.

In October 2005 Intex launched two entry level handsets for the Indian market. With these two phones -Intex 1110 (black & white display) and Intex 1600 (colored display) and the recent addition is Intex 1110i- Intex expanded its entry level portfolio in India. Two distinct feature of these new handsets were the unique Talking Alarm and Clock in five regional languages including Hindi, Tamil, Bengali, Marathi and Gujarati This effort reiterating Intex's intent to drive affordable mobility in India and grow the base of mobile phone users.. These handsets were yet another example of Intex's innovation and commitment to introduce products that are relevant for Indian consumers

HIGH FASHION There is a category of customers for whom owing mobile also serves the purpose of status symbol. They want to have the latest in the market. This category is specially designed eyeing those customers

Now there have been several models for the high fashion element. The N series and E series models of Intex are too good to look at and appealing for the eyes.

Regular Activities

Balanced mix of ATL and BTL activities happen at all India level to give the brand the desired push. Further, activities like outdoor at strategic locations, print advertisements in major dailies, road shows, vehicle- branding, etc happen on regular basis to increase brand salience in the market. Some of the notable activities are as below.

Road Show activity Branch Network

Bus branding in Kolkata

Our 3000+ distributors & 20,000+ dealers are part of the extended INTEX family. Due to their invaluable support, we have been able to build a high credibility amongst several million satisfied end users. Based on transparent, fair and ethical dealings, INTEX has a simple channel strategy - how to increase sales in every market and at the same time ensure that all channel partners make money and work in harmony. We continue to encourage our existing partners by resolving issues quickly and, in selected markets look for new partners who share the same values as us.

CARRER AT INTEX A career at Intex will allow you to live up to your dreams. A lifelong opportunity to explore your potential, continuous growth, and the joy of

working on the latest technologies alongside the finest minds in the industry. We offer great opportunities for fast growth talented individuals to do the best work of their life. We have a high performance work environment that recognizes individual contributions. We foster initiative and creativity by allowing individual freedom to attain well defined objectives. We believe that investing in people's growth reaps the best dividend. Our energy, free spirit, social responsibility and commitment to human values have played a significant role in our success story so far. We instill these qualities into every new member of the Intex family. Active, unhindered participation brings us closer to each other and to ourselves, making work both fun and fulfilling. Intex offers challenging assignments, world-class working environment, professional management and ample opportunities to train, learn, and execute the most demanding projects, and in turn, get recognition in the form of exceptional rewards. As you scale newer peaks of achievements, we provide you with many benefits. At every step of success there is a special incentive awaiting you. Our responsibility towards new employees does not stop at salaries and compensation alone. We offer all possible help to facilitate their settling down.

We provide leaves on the special occasions like birthday, spouse birthday, anniversary, children birthday etc.

We have Sagan policy for different occasions like Marriage, child birth etc Continuous Training & Development initiatives to hone the skill & ensure employee ability. Positive & Performance oriented work culture environment Rewards & Recognition programmes Employee engagement activities to engage every single mind at Intex. Progressive work environment Flexi Timings

We IGNITE the ImaginationsAs for us possibilities are Endless & so as for U. A Career at Intex is an exciting growth phase, so there has never been a better time to join us. The Human Resources team provides support to employees across the country. If you are talented you will enjoy working as part of our exceptional multi talented team.

Objective

Our main objective is to analyze the expansion strategy of Intex in India. For achieving our objective we are Analyzing on different aspects of Intex strategy which are being used in India. These are as follows-:
1) To study the three tier expansion strategy of Intex in India. The three

Tier expansion strategies are all about high volume, high technology and high fashion. In this we have tried to find out how Intex is using this strategy and targeting different customers on the basis of volume, fashion and technology.
2)

To study the dual market strategy of Intex in India. In this we have Shown strategies adopted by Intex in India to penetrate in the Indian Market on the Basis of INCOME.

3) The Dual Market Strategy of Intex not only in their INCOME

SEGMENT but also in their Strong INCOME SEGMENT Used BCG MATRIX of few selected models Of Intex and on the basis of that we were able to analyze the different stages of BCG model and at the same time we would correlate them with the three expansion strategy of Intex.
4) SWOT analysis of Intex India. By the help of this SWOT analysis we

would try to find out strong and weak links of Intex in India, at the same time we would also look into opportunities and possible threats of Intex in India.

5) To find out whether this expansion strategy of Intex is helping them to

sustain their Number one position. 6) Lastly we would provide suggestions on the basis of our findings regarding sustainability and growth of its current market share.

RESEARCH METHODOLOGY

The aim of study is to objectively understand the Expansion Strategy of Intex in Indian Market. Specific aspects to be studied during Our Research Work were: The Dual Market Strategy of Intex for Indian Market. The Tier Expansion Strategy Of Intex in India (High Fashion, High Volume , High Technology). We have collected data by the following two methods: Primary Data Secondary Data Under Primary Sources, We visited several Intex Priority Centers, My Mobile Stores and Hot Spots in Delhi which helped us to get the relevant Information which Proved Vital In Our Successful Completion of Our Project. As Per Secondary Sources is Concerned Relevant Information was Supplied From Internet (Company website), Business Magazines, and Article of Newspaper through Which we Came Across Intexs Three Tier Expansion Strategy which is Considered to be the Core Expansion Move made by the Company in India.

ANALYSIS AND INTERPRETATION

SWOT Analysis
The typical SWOT tends to be situational and takes a snapshot of an entity at a point in time and is used to: Analyze companies, their performance and outlook Evaluate business plans Make preliminary stock investment decisions. Strengths Worlds largest mobile phone manufacturing company It is the clear market leader.

Weaknesses In our own opinion, Intex has a very strong brand position (this one, we think, is more likely to be brand with high quality and low price, if we are not wrong). Therefore it would be very difficult for Intex, once it wants to reposition its brand in customer's eyes.

One of the most important strengths would be Intex's brand image and the amount of customers they have who have a high degree of brand loyalty.

Ability to innovate products

Wide range and competitive product portfolio from "Question Marks"(Series Series,3250) and "Stars" (1110) and especially "Cash Cows" (Intex1100,1108 ,6600) to finance new Product

One of the important weakness of Intex is its bulkiness(size) due to which the high end customers prefer the slik sets of Ericsson or Samsung.

Development.

Wide range of outlets which provides fast Customer Service post- and pre- sales and more comfortable distribution channel, spread over the country

Intexs ability to operate efficiently (its operating margin is 19% ) Opportunity Threats

Potential joint venture with mobile services operators Increasing number of users

We think the most obvious threat is from Competitors product (and brand) with different brand position.

Advances in technology (and especially in networking) it would likely to reduce the cost of sales (cost of production)

One of major threat is saturation of urban areas.

Since network cost is lower, customer would likely to be prepared to purchase the service and buy hand phone, i.e., increasing sales and profit.

The diverse qualities (mind frame, culture, experiences

etc) of customers. These differences among customers are opportunities (and not necessarily problems) as the company could style its relationships and services to specifically serve them.

BCG Matrix Model

Question Mark: Intex models that come under this category are Intex 3250, N 76and N 82,E 61 etc. They have small market share in a high growth market. These models require high investment in the form of promotional expenses. Whether these models would be able to capture market share and become stars is still a question mark. Star:

Models like 6680, 1600 and 1110i has a large market share in the fast growing market. These models are generating high cash but at the same time they require high promotional expenses to maintain their lead. 18 Cash Cow: Models like 1100, 1110i, and 6600 are the one that have large market share and have generated huge revenue for the company. These models generally require less investment and the company strategy is that the company in their other segments will use high revenue generated from these models. Dog: Under this category comes model like Intex 3310, 3315, 5110 and 2100. These models are left with a very small market share and are unable to generate revenue for the company. Due to wide range of Intex models coming over the period company has to divest their investment form these models.

STAR Intex- 6680, 1600, 1110i

Question Mark Intex 3250, N 70, N 90

CASH COW Intex- 1100,1110i, 6600

DOG Intex 3310, 3315, 2100, 5110

Analysis of Intexs expansion strategy based on BCG model. 1) As long as the model is new or in introductory stage there is a big question mark over the future of the newly launched model. To transform its newly launch model from question mark to star category, company invests a huge amount in advertisement The prime examples of this stage are the newly launched models like 9300,8810. .

Question Mark Does Not Necessary Reflect that the Product is in Introductory Stage the Best Example- N models of Intex were launched a year and half before but are still in introductory or question mark stage because of their wrong marketing strategy and complex technology which completely led to the failure of the first mobile of this series i.e. N-Gage. 2) The models which generally constitute the star class are 8809; 8810 V. show and 1110 and now 1110i.The models belonging to this class are in growth stage and require a decent amount of promotional expenses but at same time they generate revenues and have the potential to become cash cows. 3) The models which generally constitute the class of cash cows are 1100,1110i, 6600.The models belonging to this class generate a huge revenue for the company and at the same time its promotional expenses are very low or negligible, it is because of this character they are referred to cash cows. When a product reaches this stage company starts acting with a view of developing a product or a model with more refine technology and more advanced features. 4) As soon as a model reaches decline stage it is referred to as dog. The models of this stage are 2100, 3310, 3315 and 5110.When the model reaches decline stage company stops its production with a view of investing this amount in the development of other new models.

The prime example is 2100, when the company got feedback that this set has problems concerned with battery back up and Network, Company immediately stopped its production with a view of developing new model and Came up with 2112 Overcoming its Defects. We can observe the whole BCG model with help of a prime example. For this purpose we start with the dog class or decline stage, when Intex found that 2100 was not working it launched 2112 By changing and overcoming the Draw Backs of Earlier Model , Hence it can be concluded that Intex works according to their expansion strategy i.e. Every model it launches is a more developed and advanced version of former. When model doesnt work it discards the model and launches a new model according to market trends and wants of customer.

Porters 5 forces Model

The five factors in Porters 5 forces Model in case of Intex could be analyzed as follows: 1) Competitive Rivalry Though is the apparent market leader in the Indian Mobile market but no doubt one can not overlook the likely competitor it faces from competitors like Motorola and Samsung which are two big players apart from Intex. Smaller players like LG are also there.

2) Power of suppliers With more manufacturing units in India, Intex may face problems regarding the bargaining power of its suppliers. So, the company should also have an eye on this issue though there has been no recent issues regarding this. But with increasing competition among vendors and also among companies a likely case may arise. 3) Power of buyers With a huge increase in consumer base and competitors in the mobile market, there is obvious impact on the pricing of the models of Intex. The prices of the High end models tend to decrease within a span of weeks. With people opting for the best at the least price, there are certain complications which all companies along with Intex have to deal with and introduce attractive schemes and models to maintain its consumer base and share in the market.

3) Threats of substitutes Talking about the substitutes of mobile phones, there are very rare. So on this front, there is no apparent concern. But may in future we may come across substitute products even for mobiles as in case of Laptops replacing PCs. 5) Threat of new entrants. With increasing globalization and trade barriers melting, new players are entering into every lucrative sector so as in the case of Mobile Handsets.

Companies like HP and Philips have also entered the Mobile Market. So there is ample amount of threat for the existing companies as these new players are too high in technology and with proper planning they may make a hold of their own in some time.

Findings

The main Analysis reflects all the major facts and issues related to the Expansion Strategies of Intex. Following is some of the main findings:

Intex is the Worlds largest mobile phone manufacturing company and is the clear market leader in India Intex's brand image and the amount of customers they have won have a high degree of brand loyalty and this is one of its success factors.

It has the policy of always bringing the best to the people, keep innovating new products

Wide range and competitive product portfolio from "Question Marks"(8809 v show) and "Stars" (1110) and especially "Cash Cows" (Intex1100, 1108, 6600) to finance new Product Development.

Wide range of outlets which provides fast Customer Service post- and pre- sales and more comfortable distribution channel. Based on the BCG matrix, we found out that the number of the question marks-the introductory models or yet to establish models of Intex are many as Intex keeps introducing several models one after another.

On the basis of the Porters five Forces model, we found that that Intex is facing a huge competition from Indias no 2 Motorola and Samsung as well.

There is also a likely threat from the entry new players like HP, Philips in the Mobile handsets market. The Increasing no. of players and the race to win the consumer loyalty has made the consumer a powerful entity and now the Indian

consumer can affect the mobile market more accurately which results in lowering prices of the new launches as well.

Companies are throwing schemes and offers to attract the Customers to buy their brand instead of competitors. In spite of all the facts, Intex still is the obvious largest player in Indian Mobile Market and has the ability to lure its customers very well.

Recommendations
Intex is the market leader in India but there are some important factors which Intex has to keep in mind in order to sustain there current market position. These are listed below.

Intex in Order to continue with its expansion strategy is launching various models with technological advances but at the same they should keep in mind that General Customer is not aware of all this new and complex Usage Pattern. Hence in order to get better results, Intex should create customer awareness in the form of educative promotion and at the same time should also look to educate the dealers about the latest development in the field of technology.

Intex follows a very aggressive advertising strategy but at the same time Intex needs to know that elite customers do not exist only in metropolitans but even in small cities. The newly launched N Series is only advertised in big shopping malls and PVRs, it is right to interpret from the part of Intex that v Series is a potential market for upper segment but at the same time upper segment are not only a part big cities but even exist in small cities where there are no PVRS or shopping malls hence Intex should look to advertise its models via more popular medium i.e. through television etc.

Intex is very popular in India both in terms of sale and brand image but as there is a famous quote which says that no one is completely perfect in this world, this is also applicable in case of Intex because the models of Intex are bulky and somewhat less fashionable compared to its competitors (Motorola, Sony Ericssion, Samsung, LG).Hence Intex needs to develop models which are less in weight and at the same time more fashionable.

BIBLIOGRAPHY

Marketing Management by Phillip Kotler Organisational behaviour by Kavita singh Positioning: The Battle for your mind by Al Ries & Jack Trout

Websites

www.intexmobiles.in www.intextechnologies.com www.google.com