DraftFCB Ulka wins Rs 50 crore Micromax biz

By Neha Kalra , afaqs!, New Delhi | In Advertising | June 08, 2009
The agency has won the business following a multi-agency pitch

DraftFCB Ulka has won the creative duties for Micromax, which provides wireless telecommunication solutions. This decade-old company has been mainly into landline phones. However, last year, it stepped into the retail market with its decision to launch mobile handsets.

Rahul Sharma, chief operating officer, Micromax Informatics, confirmed the win to afaqs!. It is learnt that the company had called for a multi-agency pitch.

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The company has a big task in hand. The mobile handset market already has players such as Nokia, Motorola, Samsung and Sony Ericsson, and these players already enjoy great loyalty amongst consumers. It will be a big challenge for any new player to shift this loyalty.

Sharma explains Micromax's strategy, "Playing the price game doesn't guarantee sales. The product needs to have a value proposition for the consumer - and that's the core idea of our brand."

Innovation is the key for Micromax mobile phones, he adds. "If I'm offering a dual GSM-dual standby QWERTY keypad phone at less than Rs 5,000, there's definitely something that my brand is planning to change." The Q3 Ezpad would offer all these features, along with a pre-loaded mobile social messenger - Nimbuzz.

"We will offer the consumer value for his money," Sharma adds. Micromax plans to launch the GC 700 Gravity, which will have a dual-reception mode (CDMA/GSM) using gravity sensors. Sharma claims, this is a first of its kind.

The mobile handset space is currently about big brands with big advertising budgets. Will Micromax be able to compete in the same league? "We are not looking at these brands as our competitors, as we plan to build a niche segment for our products. We are also looking at targeting the low-end consumer and the rural market," Sharma states.

The company has an advertising budget of Rs 50 crore, confirms Sharma. Television will definitely be the primary medium, considering it wants to reach the masses. It will also consider other media, such as digital.

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