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C1 Mobonik

Mobonik launched two new phones, the K5 and L2, to improve sales as Chinese companies began gaining market share by offering affordable phones. While the L2 was successful, cannibalizing sales of the older L1, the K5 did not see sustained sales growth. Most of Mobonik's sales occurred through low-end outlets, making the company vulnerable to competitors on price. Recommendations included expanding partnerships with more dealers, tailoring mass market phones to price and features for value outlets, and adding exclusive attributes to premium phones targeting higher-end outlets.

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KANIKA GORAYA
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605 views

C1 Mobonik

Mobonik launched two new phones, the K5 and L2, to improve sales as Chinese companies began gaining market share by offering affordable phones. While the L2 was successful, cannibalizing sales of the older L1, the K5 did not see sustained sales growth. Most of Mobonik's sales occurred through low-end outlets, making the company vulnerable to competitors on price. Recommendations included expanding partnerships with more dealers, tailoring mass market phones to price and features for value outlets, and adding exclusive attributes to premium phones targeting higher-end outlets.

Uploaded by

KANIKA GORAYA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Case: Mobonik

Mobonik has been able to capture the large part of Indian mobile market and was doing
well in business until January 2014 when Chinese companies started penetrating the
market with good phones at attractive price points.
So, to improve sales, 
 Management decided to launch two new phones in premium category, K5 at INR
23,320 and L2 at INR11,780.
 Changed the visual displays in exclusive outlets to maintain their market
leadership
 For better visibility of new launches, changes were made to the current
planogram for May-June period and was provided to dealers.

85% of sales were through 1-star category outlets which became a concern for the
company.

Recommendations:

 Sales of L1 fell by 82.14% in June from 1372 to 245 units after Launch of L2 with
growing sales showing cannibalization. Thus, L2 proved to be a successful
product launch.
 But in case of K5, there was an increase in sales for the month of June probably
because of Planogram, but in subsequent months, sales reduced to 301 units.
However, Sales of K4 reduced just by 12% in June and later grew by >60%.
Though the sales reduced even later but not drastically.
Hence, we can say that K5 might not be that successful launch.
 Since Chinese companies will have the upper hand in 1-star club due to price
factor. And, Revenue generated by 5,4-star clubs remains less affected, but for
3-star clubs it goes down by 24%. Mobonik could tie up with more dealers to
improve this downfall as 85% of its mobiles are sold through 1-star category
outlets.
 Mass category phones should be more focused towards price sensitivity and
product features in volume outlets, i.e. 1,2 & 3-star outlets.
 Phones in premium category can add an exclusive attribute in value outlets, i.e.4-
star outlets and 5-star outlets.

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