While mostChinese brands focused on low-cost smartphone market, Oppo focused on deliveringstellar user experiences and first-class hardware specs, so that consumersreceive the best in both technology and design.
OPPO was selected as one ofChina’s most respected enterprises in 2014-5 by the Economic Observer, thecountry’s leading financial publication. Oppo has its primary target as the young female in theage of 18-30 who are interested in selfie, camera quality and slim handsets.They have implemented an in-house flash charging technology to charge phonesfaster. It has launched dual selfie camera in its F3 plus model phones anddeigned its F5 model phones with a beautification mode cameras. They tried tomarket their product with related taglines such as “selfie expert” and “CameraPhone”.
Place:· Oppo brought about a disruptionthrough its offline sales. Theywanted the potential customers to try and feel the product before they buy andthus, set up a strong distributionnetwork at an early stage to distribute newer phones faster.· They leveraged the power of ‘point of sales conversion at the moment oftruth’· Oppo’s focus has been on volumesales, paying retailers upfront for prominent signages and branding for thenext 1-2 years and even offering 5-10%more margin to retailers and shopfloor sales promoters· They plan to expand their sales network by 25% through non-conventionalstores, such as cellphone recharge and repair outlets, and consumerelectronic stores. .Pricing:The company hasits product priced from Rs.5000 to 25000.The N series phones are price above Rs 23000. The F series products range fromRs.
16000 to Rs.25000. The A series phones range from Rs.8000 to Rs.
15000. Themirror model phones are in the lower segment providing low price phones. Thoughit prices its smartphones in the middle and low end segments, it prices itsdigital products such as headphones at a premium cost globally Promotion:· The company has 200 distributors across India topromote its product. · It has made endorsements with youngand glamourous celebrities in India(Hrithik Roshan, Sonam Kapoor, Ranveer Singh and Siddharth Malhotra) to attractcustomers, and sponsored reality programs to appeal to their young targetaudiences.· It also made a deal to sponsor the Indian cricket team for theduration of 2017-2022. · The company has planned to open550 more outlets all across India in the next few months.
· The company tries to make itspresence in all Tier-1, Tier-2 cities and in small towns. People:· Oppo lays great focus oncustomer intimacy, focusing on every touch point in rural and semi urban areas.· They deploy smart, educatedpromoters” at outlets, spend a great deal on local marketing,disproportionate channel commissions and more· Oppo has also beenclaimed to push retailers for the sale of their smartphones, promising tocompensate the potential loss of business Process:· As product quality cannot existwithout design and vice versa, OPPO invested 6% of its revenue in R&D in2016.
The result is a series of consistently outstanding mid-range devices suchas the OPPO R7, R5 and Mirror 5. Its commitment to quality is evident at everydetail, as evidenced by the Mirror 5’s luxurious, diamond-inspired effect andthe R7’s beautiful “violin arc” design.· In order to realize theserevolutionary designs, custom tools had to be made for machines. For instance,R5 micro-arc frame required tailor-made production tools and enlisted the helpof trained craftsman to smooth and polish the devices by hand in order toguarantee a flawless finish. With such investment across R&D andproduction, it is no surprise that the R5 has been labelled by some as ahigh-end smartphone despite its mid-range positioning.· Oppo has established a rigoroustesting process that sees devices undergo as many as 100 differentexaminations. Its testing center and QE lab abides by quality standard systemshigher than national and industry standards, while its quality monitoringcovers the entire product life cycle.
Physical Evidence:As a result of such detailed focus on design andquality, Oppo smartphones truly stand up to the hype. It has been able to gaugethe user needs in each segment and evolve itself as per the changing smartphonedemands of consumers. STP Strategies Segmentation: Oppo phones haveprice range of Rs5500 to Rs25, 000 effectively covering the lower end andmid-range of smartphone market. ‘Theselfie lovers’ is the behavioural segment Oppo concentrateson. The demography Oppo focus isof age 15-40 urban, suburban and semi-rural people.
Geographically, Oppo isspread across all parts of the country. Targeting:Oppo targetstrendy young people who are conscious users of selfie and camera. Oppo offeringis very attractive to students because of selfie camera and sporty look. Italso appeals to gadget freaks who loves to have updated, contemporary products.It has product offering for lower middle, middle and upper middle class.
Positioning: The flagshipproduct of Oppo is Oppo F5. It is positioned as a camera focused phonecatering to mid upper segment with a slightly premium price Internal Analysis SWOT AnalysisStrengths· Oppohas Strong Offline Concept Store presence, allowing product trials· Thecompany concentrates on aesthetic qualities designs · Theyshow commitment to co-developing products with its customers throughuser-experience feedback channels had achieved widespread recognition · Theyoffer high-end specifications at affordable prices · Theyoffer multiple models with innovative design and features like Selfie Expertand high-end memory · Thecompany ensures end-to-end control over the consumer experienceWeakness· TheProducts does not have much differentiation from the rival products. Thoughthey have brought to the market the best camera features they lack in otherfeatures· Thoughthey have their presence in small markets the awareness that brands like Xiaomihas created is missing in case of oppo· Marketsentiment towards OPPO is not that positive as of rivals like Xiaomi