Research Report On Comparison Of Marketing Strategies Adopted By Oppo And Vivo
Lal Bahadur Shastri College of Higher Education (Affiliated to Mahatma Jyotiba Phule Rohilkhand University) For the partial fulfillment of Bachelor of Business Administration Session: 2014-17
Submitted To:
Submitted By:
Ms. Payal Gulati
Prashant Singh Rana
Assistant Professor
BBA
LBSCHE
3rd Year (6th Sem.)
CERTIFICATE
This is to certify that PRASHANT SINGH RANA (BBA- 6th Sem.) of Lal Bahadur Shastri College of Higher Education has prepared a research project entitled “COMPARISON OF MARKETING STRATEGIES ADOPTED BY OPPO AND VIVO”. The research project is full of efforts and endeavors.
Ms. Payal Gulati Assistant Professor & Mentor (Signature) PREFACE
The research project entitled “comparison of marketing strategies adopted by Oppo and Vivo”. In recent times, Oppo and Vivo have emerged as big players of the Indian smart phone market and they have grabbed a huge market share of the Indian smart phone market according to the recent research conducted by research firm International Data Corporation (IDC). Vivo and Oppo have also started sponsoring very big events and festivals in the Indian subcontinent. Event like ICC Championships such as ICC Cricket World Cup, ICC T20 World Cup, and ICC Champions Trophy. Vivo and Oppo have focused on Camera Performances and they have launched the smart phones which deliver high quality pictures with both primary as well as secondary camera.
STUDENT DECLARATION
I hereby declare that the project report titled, “COMPARISON OF MARKETING STRATEGIES ADOPTED BY OPPO AND VIVO” is a genuine research work undertaken by me under the guidance of Ms. Payal Gulati (Asst. Professor, LBSIMT).
The research report has been submitted to Lal Bahadur Shastri College of Higher Education, for the purpose of Market Survey Project Report under the compliance of fulfillment of Bachelors of Business Administration (B.B.A.).
Prashant Singh Rana B.B.A. (6th Sem.) Roll No. : 1515711010
ACKNOWLEDGEMENT
Every piece of work has some invisible helping hands with their invaluable support and inspiration. For the completion of the project report many person directly and indirectly assisted me. The successful completion of a market survey project report requires guidance and help from a number of people. I was fortunate to have all the support from my teachers. I therefore take this opportunity to express my profound sense of gratitude to all those who extended their whole hearted help and supported me in completing the project report on: “COMPARISON OF MARKETING STRATEGIES ADOPTED BY OPPO AND VIVO” I also express our deep sense of gratitude to Ms. Payal Gulati (mentor & faculty), who has helped us to the successful completion of this project.
Thanking You!!
CONTENTS
1. Industry overview Introduction Company Profile Oppo Marketing Strategies Opted by Oppo Vivo Marketing Strategies Opted by Vivo 2. Research analysis Introduction Objectives of the study Research methodology Scope of the study Tools and techniques 3. 4. 5. 6. 7.
Findings Conclusion Limitations Suggestions and recommendations References
INDUSTRY OVERVIEW:
India registered 109.1 million units of smart phone shipments with a marginal 5.2 per cent annual growth in 2016, market research firm International Data Corporation (IDC) said. Chinese players led the pack. In the fourth quarter of 2016, Smartphone shipments clocked 25.8 million units - registering similar volumes as that of 2015 but declining sharply by 20.3 per cent over the previous quarter. This was mainly due to a seasonal decline after an all-time high festival quarter and demonetisation in November, which led to relatively lower consumer sales in November and December. “Feature phone to smart phone migration has slowed down as prices of smart phones are still quite high for a feature phone user,” said Karthik J, Senior Market Analyst, Client Devices, and IDC. The share of China-based vendors touched a whopping 46 per cent in the fourth quarter of 2016. Their shipments doubled over the same period last year while the share of homegrown vendors slipped to 19 per cent. Samsung continued to lead the smartphone market with 25.1 per cent share despite a 13.1 per cent sequential decline in the fourth quarter of 2016. But Samsung’s annual shipments grew 3.2 per cent in 2016, driven majorly by the J-series. Xiomi climbed up to second spot with 10.7 per cent share against 3.3 per cent share in the same period last year. Year-on-year shipments grew threefold while sequential growth was 15.3 per cent. Lenovo (including Motorola) slipped to third place as shipments declined 17.4 per cent sequentially in the fourth quarter of 2016 and 14.5 per cent over same quarter of previous year, the report noted. Oppo made it to the top five lists with 8.6 per cent share.
COMPANY PROFILE:
OPPO: OPPO is a camera phone brand enjoyed by young people around the world. For the last 10 years, OPPO has been focusing on manufacturing camera phones, while innovating mobile photography technology breakthroughs. OPPO started the era of Selfie beautification, and was the first brand to launch smart phones with 5MP and 16MP front cameras. OPPO was also the first brand to introduce the motorized rotating camera, the Ultra HD feature and the 5x Dual Camera Zoom technology. OPPO's Selfie Expert F series launched in 2016 drove a Selfie trend in the smartphone industry. In 2016, OPPO was ranked as the number 4 smartphone brand globally, according to IDC. And today, OPPO provides excellent smartphone photography experience to over 100 million young people around the world. Oppo entered the mobile phone market in 2008 and launched its first feature phone. Later on in 2011 Oppo launched its first ever smartphone named ‘Find me’. And the latest one under the brand name of Oppo is the Oppo f3 plus. All the mobile phone devices under Oppo brand name are:
In 2008- the first feature phone. In 2011- the first smartphone named ‘find me’ In 2012- Oppo launched 2 smart phones- finder, find 3 In 2012- Oppo launched find 5, N1, ColorOS In 2014- Oppo launched R1, Find 7, N1 mini, N3 and R5 In 2015- R7 series and ColorOS 2.1 In 2016- F1s and F1 plus In 2017- f3 plus
Marketing strategies opted by OPPO:
In over 20 countries, including the United States, China, Australia and many countries throughout Europe, Southeast Asia, South Asia, the Middle East and Africa, OPPO is dedicated to delivering customers with the most extraordinary mobile experience through meticulous designs and smart technology. According to OPPO, India is a strategic market for them primarily because there is clearly a huge potential to grow in the Indian Smartphone market. OPPO is speeding up the sales and service network and expects a fair growth and a bigger share of the market in the times to come. On the brand aspect, they expect brand to become a well-known name for its innovation, quality and service over the next five years. The company has plans to expand more service centers this year. OPPO has recently announced the new ‘After Sales-Service Policy’ for its handsets. This includes an added focus on service performance, quality, understanding the customer and proactive communication to address any query or call for support. As a part of OPPO’s strategy to strengthen its global market and after-sales, the company plans to open 200, new service centers across India. As a part of the new policy every OPPO smart phone will now have extended warranty. All new handsets purchased from December 2015 onwards will have a 2-year service warranty applicable across all OPPO service centers in India. Talking about the price sensitive market for OPPO, there is a certain section of consumers who are extremely technology savvy and looking for innovative and power-packed devices. OPPO has already introduced products in the price range of Rs 6,500 to Rs 42,999 which gives many options to Indian consumers. They focus to cover low end, mid segment and high end segment covering the consumer preferences. Mike Wang, CEO, OPPO Mobiles India says, “We are looking at more nation-wide channel partners so that we can satisfy the huge customer need at the earliest. The company also has plans to expand more service centers in the next one year. Right now we are retailing in over 20 major cities and regions, mainly through multi-brand stores. We are also planning to build our showrooms and exclusive stores in a short time”. “Right now we are retailing in over 20 major cities and regions across the nation, mainly through multi-brand stores. We also have unique customer-oriented activities as per each local market demands like seasonal activities for OPPO fans and customers” he added. Talking on the future plans in India, OPPO have R Series which is the recently launched flagship series in India. Also, they are planning mid-range Neo series and Mirror series. OPPO will bring more products catering to the Indian consumer demands. Company is planning to come up with more mid segment smart phones which fits the budget and delivers the best in class experience to our customers.
VIVO: Vivo is a leading global smartphone brand focusing on introducing products with professional-grade audio, extraordinary appearance, and fast and smooth user experience. Vivo was founded in 2009 as a sub-brand of BBK Electronics. The brand entered the telecommunication and consumer electronics industry with landline phones and wireless phones. In 2011, Vivo started manufacturing and marketing its own range of smart phones. Vivo entered the Indian market in 2014. Currently 20,000 operators work in Vivo, and 3,000 engineers are in four R&D centers in Dongguan, Shenzhen, Nanjing and Chongqing. From hardware design and manufacture, to software development (Android based Fun touch OS), Vivo has built a complete and sustainable ecosystem. With the creativity and technology, Vivo keeps innovating. In 2012, Vivo created the X1, the first Smartphone to incorporate a Hi-Fi chip, resulting in an unparalleled audio experience. Pioneering this technology, it has been included in all Vivo smart phones ever since. From then on, the innovation never stops:
2012, Xplay, world’s first Hi-Fi smartphone integrated with OPA2604 amplifying power 2013, Vivo X3, world’s first Hi-Fi smartphone integrated with ES9018 decoding chip 2013, Xplay3s, world’s first 2K display Hi-Fi music smartphone with extreme display performance 2014, X5Max, world’s slimmest smartphone with a totally new framework of Hi-Fi 2.0 2015, X5Pro, the extreme Hi-Fi and slim body model was launched 2015, Vivo India joined the Make in India movement by inaugurating our first manufacturing unit in Greater Noida 2016, Vivo India launched V3/V3Max with Faster Fingerprint Unlocking System & Camera Capture along with the opening of VIVO IPL 2016 2016, V5/V5Plus, world’s first 20 MP Moonlight Selfie Camera
From 2011, Vivo has been certified in over 100 countries and regions worldwide, choosing the path of internationalization and moved on. Currently Vivo is present in India, Malaysia, Indonesia, Thailand, Myanmar, Vietnam and Philippines. Vivo entered India in Dec., 2014 and in a short time span, Vivo has established itself as a Hifi & Smart brand. Currently Vivo is serving Indian customers with 8,000 employees and
10,000 retailers, in over 300 cities in 22 states, with a strong focus on Hi-Fi Music. By the end of 2016, Vivo will also have established more than 200 exclusive after-sales Service centers across the country. Vivo is one of the fastest growing companies in India. Vivo believes in diversity and creativity in India and hence has been actively involved in some of the most popular properties such as Colors Comedy Nights with Kapil, MTV Roadies, MTV Bollyland Festival and Vh1 Emerge. Regionally Vivo sponsored Vijay TV– Koffee with DD (Season 2), ETV Telugu–Extra Jabardast, ETV Kannada–Majha Talkies, Mazhavil Manorama–D 4 Dance (Season 2), and Zee Kannada–Onduurnalli Raja Rani. As a new brand for Indian consumers, Vivo believes in reaching out to every person in every state and this increases the kind of effort to establish the brand in the hearts of consumers. Vivo looks forward to more such associations in the future to create a brand visibility amongst the Indian masses. The “Make in India” initiative also resonates with Vivo’s plan. Its assembly unit in Greater Noida is the first step toward this commitment. With Rs. 125 crore first-phase investment, the unit has been operational since November, 2015. About 2,200 Indian employees are currently employed in the factory to help its production capacity reach one million units/month and build a solid foundation for Vivo’s sustainable development in India. Vivo strives to become a world-class enterprise, healthy, progressive and sustainable. Love India, Love Vivo
MARKETING STRATEGIES OPTED BY VIVO Headquartered in Dongguan, Guangdong province, Vivo mostly uses brick and mortar strategy. Vivo focuses on developing retail networks and exclusive service centers and is currently working with more than 8,000 employees and 10,000 retailers across Indian geographies. According to their vision in the Indian market, India is a huge market and holds enormous potential.
Under the Go to Market strategy, Vivo associated with some high profile properties to reach out to target group through properties like Comedy Nights with Kapil, MTV Roadies and Vh1 Emerge Festival. Vivo have also invested a huge amount in print ad campaign last year during Diwali and celebrated 100 Smart days which ended with New Year. Also, to succeed in the market Vivo shall focus mainly on great products, progressive brand and approach young people. Talking about their range of products, Vivo has launched three series: X V and Y in India with total of 11 models so far. X Series with X5Pro & X5Max is premium series catering to HNI group (entrepreneurs, fashion lovers, etc.), while V Series is their exclusive series to Indian market, which caters to the mid segment, targeting young music lovers. Y series lies in the affordable segment and is high on features and low on price. Vivo has channel strategy is very simple as they operate through their regional state offices in different state capitals. Followed by micro-distributors city-wise, which distribute products to different retailers and MBO’s. Vivo India till now focused in development of strong retail network on ground. In year 2016, Vivo is definitely targeting every major modern trade outlet as a point of sale. We are now equipped with all the resources, logistics & skilled manpower. We shall tie-up with every outlet within this year which shall agree with our policies. Kent Cheng CEO, Vivo India, CMO, Vivo Global shared his views, “Our journey in India has been very overwhelming till now and the love, trust & support received from our Indian friends motivate us to be more productive and deliver the best in class quality in affordable price range. Keeping in mind the same aim, we recently inaugurated our manufacturing plant
in Greater Noida, which shall for now assemble all the products available in market and reduce the cost of imports and hence help us deliver competitive products”. To promote the product and brand most of the companies have their brand ambassador but currently Vivo doesn’t have any brand ambassador. They will look for a brand ambassador in future depending on market scenario. Talking about the initiative of ‘Make In India’ Vivo has strong support towards PM Narendra Modi’s campaign under which Vivo have set up the first manufacturing plant in Greater Noida, U.P. on their first anniversary in India recently. The new manufacturing unit with a maximum production capacity of one million devices a month will help create around 2,200 jobs. Vivo Mobile India has invested approx. Rs. 125 crore as its first phase of investment in the 30,000 sq.m. Facility which comprises several assembly lines, quality control lab and warehouses.
Mission & Vision
To customers, we promise to provide quality products and superior services. To employees, we commit to build up harmonious work atmosphere of mutual respect. To business partners, we shall furnish a fair and square cooperative platform on the basis of equality and mutual benefit. To shareholders, we are devoted to rendering higher investment returns than average.
Corporate Prospect
To become a healthy world-class enterprise for long.
Core Values: Vivo India general business principles describe our group’s core values, responsibilities and the principles & behavior by which we do business.
Our Values:
Vivo India employees share a set of core values:
Benfen Integrity Team Spirit Superior Quality Sustained Learning Customer Orientation
Make In India We came to India with a vision to give our customers ingenious, ‘Made In India’ products. A year later, with an assembly unit all set to operate from Greater NOIDA, our vision has now become a reality. The first part of our expansion plan in India, we setup the assembly unit to contribute to the ‘Make In India’ initiative with our exclusive ‘Made for India’ V-series smart phones. The 30,000 square meters production facility, located at World Trade Centre, is Vivo’s 7th largest assembly facility outside China. The assembly unit has a maximum production capacity of 1 million smart phones per month, which can be further increased as per future requirements.
OBJECTIVES OF THE STUDY The Primary Objective was to study about the marketing strategies adopted by smart phone brands Oppo and Vivo and how they have a made a significant reach in the Indian Smart Phone market. The Secondary Objectives of this study were to identify:
To study in detail about the marketing strategies adopted by Oppo and Vivo.
To find out whether the strategies were effective or not.
RESEARCH METHODOLOGY Data collection
Secondary data
Secondary data This is pre collected data and can be obtained either from external sources such as trade associations, government, etc or from within the company (proprietary information).
COMPARATIVE RESEARCH Comparative research, simply put, is the act of comparing two or more things with a view to discovering something about one or all of the things being compared. This technique often utilizes multiple disciplines in one study. When it comes to method, the majority agreement is that there is no methodology peculiar to comparative research. The multidisciplinary approach is good for the flexibility it offers, yet comparative programs do have a case to answer against the call that their research lacks a "seamless whole.”
SCOPE OF THE STUDY In the present smart phone market; globally as well as in India there is a stiff competition among the brands to be at the top and serve the customers in a way better than ever before. Brands counter the products launched by other brands by giving the same features to their customers at a much lesser price and today customer is at profit because he is getting value for money and he doesn’t have to invest more for enjoying the additional features. Oppo and Vivo have emerged as the two brands which are globally present and feel the importance of Indian smart phone market, and the pace at which the market has grown in India. People here in India are obsessed for Selfie cameras and they want a high quality secondary camera which Oppo and Vivo has provided at affordable prices.
TOOLS AND TECHNIQUES
Secondary data: Research Reports and the information provided on company’s website.
FINDINGS Both the brands have become a focus center as they have provided their customers with a high quality secondary camera for capturing extraordinary Selfie. They have analyzed that Indians are the people who are very much price sensitive, so they have mostly the middle class people and have launched the mid range phones from a price range of 6,499 to 42,999. The brands are also now targeting on their after sales services and for providing their customers a world class experience they are now planning to open more service centers across the parts of India. Oppo as well as Vivo is collaborated with Indian Prime Minister’s initiative “Make In India” and “Digital India”. Vivo is making use of the “Brick and Mortar Marketing Strategy” whereas Oppo is focusing on giving their customers good after sales services. Both Oppo as well as Vivo sponsors big events such as Sports events and award shows to market their product at a global level.
Oppo as well as Vivo know that the customers here in India are really price sensitive so they have launched devices in a price range of about 6,499 to 42,999. Vivo has also applied the “Go To Market” strategy under which it is associated with various shows like Kapil Sharma Show, Koffee with Karan, etc.
CONCLUSION In today’s marketing scenario “Consumer” is the king of the market, so the big houses are deliberately forced to make the products which serve the people’s need in a way better better than before. Oppo and Vivo have done exactly the same; they have always thrived for a better customer experience and through this have become as one of India’s most trusted smart phone brands. They are launching the products which deliver value for money and cater the needs of common man of India. And as Selfie is trending these days; so the brands have provided their customers with some extraordinary features in the secondary camera’s of their smart phones through which they can captures high quality selfie’s at any time they wish to. The brands Oppo and Vivo are also thriving to give their customers better; after sales services and for which they coming up with the service centers across the various parts of the country.
LIMITATION OF THE STUDY
1. Under the research project, I have only studied about the marketing strategies opted by the two smart phone brands of India. 2. As the research project is based on the secondary data, so I had to rely more data which is available on the websites.
SUGGESTIONS AND RECOMMENDATIONS I would like to suggest some points to the two brands:
The brands should come up with some more manufacturing plant in the Indian subcontinent, which will provide employment to the Indian people as well as the brands can also meet out the surging demands in today’s scenario. The brands should also produce some feature phones as every customer doesn’t want to have a smart phone in their pocket. The brands should also focus on other dimensions such as good sound quality, because solely camera performance doesn’t make up a good phone. The brands should work more on the marketing and distribution channel of their smart phone network.
REFERENCES BOOKS: Marketing Management by Philip Kotler
WEBSITES:
http://www.voicendata.com/go-to-market-strategies-of-mobile-vendors-in-india/ http://www.vivo.co.in/About/ http://www.hindustantimes.com/tech/indian-smartphone-market-grew-5-2-in-2016idc/story-OAt1GGj0udGwyUS7nG8uAL.html
http://www.oppo.com/en/about-us
