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Study on OPPO Company Marketing 1

Study on OPPO Company Marketing


--------U like
Huang Ju (12153122)

College of Foreign Languages, Beijing University of Technology

2015-06-15

Instructor: Feng Xie


Study on OPPO Company Marketing 2

Abstract
30 million products sold in a single year, OPPO is regarded the most healthy and

profitable business in the phone-manufacture industry. However, it could not come

true without its marketing. This paper aims to analyze its effective marketing and find

its way of success in the competition. The methodology of this thesis is researching

through books, articles and related materials in both paper form and online form. The

thesis presents the effectiveness of OPPO’s marketing strategies, including branding,

placing, product and pricing, under the model of SWOT analysis. This paper finds

that through accurate marketing, OPPO gained large market share and kept a one-fold

growth in the year of 2014 (referencing, 2015). Thus it is important for enterprises to

perform well in marketing. This paper illustrates how to conduct suitable and effective

marketing for relatively new companies in the competition with the well-established

ones. The values might not be detailed, but it is universal.

Key words: OPPO, marketing strategy, branding

手机行业风起云涌,竞争激烈,欧珀公司的盈利能力却被公认为行业翘楚。它的

成就离不开公司的成功的营销。本文旨在通过对其营销战略的分析,包括品牌建

立、分销及产品等,探寻资历尚浅的企业如何在竞争之中求生存,甚至是求成功

其普遍价值值得借鉴。
Study on OPPO Company Marketing 3

Acknowledgement
First and foremost, the author would like to show her deepest gratitude to the

instructor Ms. Feng Xie, who has been providing considerate guidance and advice in

doing this thesis. Without her, this thesis would never be possible. Then, the author

really appreciate the help from her fellow classmates, who discussed with her about

the questions and problems concerning this thesis. Thank them all.
Study on OPPO Company Marketing 4

Table of Contents

Chapter 1 Introduction....................................................................................................5

Chapter 2 Literature Review..........................................................................................7

2.1 Product and its Customer......................................................................................7

2.2 Reaching the Market ……………………………….….….……………………8

2.3 Brand Building ………………………………………………….……………...8

Chapter 3 Chances and Challenges..............................................................................10

3.1 Outside Air..........................................................................................................10

3.2 Self Evaluation ……………….………………………………………….……11

Chapter 4 OPPO Marketing.........................................................................................13

4.1 Right Product, Right People...............................................................................13

4.2 Approaching the Market.....................................................................................15

4.3 Pricing for Position …………………………………………………………....17

4.4 Branding ………………………………………………………………….…...18

4.4.1 Lighter Brand, Lighter Burden………………………………………….…18

4.4.2 Effective Advertising ………………………………………..…………….19

4.4.3 Conceptual Marketing ………………………………………………….…20

Chapter 5 Conclusion...................................................................................................22
Study on OPPO Company Marketing 5

Study on OPPO Company Marketing

--------U like
Chapter 1 Introduction
The popularity of smart phone have increased over years, together goes the

intensification of competition in the industry. With well-established international

brands like Apple and Samsung, it is really difficult for new firms to survive,

especially national brands. However, OPPO found its way. It sold 30 million phones

in the year of 2014 alone, and the growth rate was over 130% (referencing, 2015).

This paper is going to analyze how this company utilizes its marketing strategies

under the model of SWOT. The focus is on marketing strategies, including product,

placing, pricing and branding. The methodology of the thesis is doing research by

referring to books, articles and related materials in both paper form and online form.

Some ideas are adopted critically and analysis are put up. Hope the outcomes could be

valuable to those who need it.

This research finds that in order to compete with other brands, OPPO developed its

own marketing strategy. OPPO’s product strategy is to be young and fashionable,

though its quality or system is not the best, it becomes rather attractive added with

fashionable design and strong entertainment function. Its flat distribution channel

leaves large profit margin for distributors, thus promoting the sales. Prices are lower

compared with international brands, yet are comparably higher than national brands.

Conceptual marketing and advertising constitute its branding, which is the biggest

attraction to the public. OPPO makes people believe that when they are buying an

OPPO product, they are buying a kind of life style--- the pursuit of freedom and joy.
Study on OPPO Company Marketing 6

Plus, it has also built a public image of an international and modern brand by using

foreign celebrities as adverts. All these methods made OPPO the biggest brand in

second and third-tier cities in China. Companies who want to win their own places in

the fierce competition against other big brands could learn from OPPO’s experience

and transform it into their own success.


Study on OPPO Company Marketing 7

Chapter 2 Literature Review


In this thesis, the analysis on OPPO’s marketing strategy is performed. It includes

product, pricing, placing and branding. Materials relating to these four aspects are

referred and cited, and some comments and analysis are after the views of the

scholars.

2.1 Product and its Customer

Product is of extreme importance to business, and OPPO knows this. Thus, the

company pays much attention to the well-built of its products.

According to Soellner (2014), the product of company is essential for strengthening

marketing and achieving sustained success. Without well-built products, no matter

how plausible the marketing is, it is just lying. OPPO learned this from the former

failure of other national brands---they spent more on marketing their products than

improving them---and pursues success from the beginning, that is, the products.

Guaranteeing the quality of product is good, but it is not enough. Products are made to

satisfy customer need, so who is the buyer of the product must be taken into

consideration. Kaleikini (2009) believes that figuring out who the target market are

would help companies reach them easier. Plus, marketing strategy could be developed

in the light of target market, which means high utilization rate of expenses and a

lower marketing budget. OPPO focused on its target market---the youth ( this research

defines it as people under 40), especially in second and third-tier cities, and developed

special marketing strategy accordingly, which can be illustrated in the company’s

most famous jingle---U like. Right product for the right market is as good as meeting

the right person in the right time, shall this be right?


Study on OPPO Company Marketing 8

2.2 Reaching The Market

When products are made and market are targeted, the next assignment is to distribute

them, which is one of the four major components of marketing mix. Lunn (2012) puts

up that placing is about getting the products to customers, and if this process is

ignored, companies are likely to lose sales. Indeed, OPPO’s proper distribution

system benefited the company. Its flat distribution channel makes it possible for both

the company itself and the distributors to have large profit margin. This prominently

promotes the sales of OPPO. What’s more, the nearly full cover of second and third-

tier cities builds its reputation of the biggest national brands in the industry. The easy

access and large profit margin contribute a lot to the 30-million-sales in the year of

2014.

2.3 Brand Building

Tailor (2015) defines a brand as a marketing tool that allows consumers to recognize

the maker of a product. He thus holds the view that brand is a valuable equity of a

company in the long run. Customers tend to build a relationship with the brand they

trust, and this could be beneficial. OPPO found its brand when it firstly entered the

phone manufacture industry in 2005, then through advertising and distinct product,

OPPO successfully built itself a trustworthy brand name nationwide. Advertising and

conceptual marketing made up its branding strategy. By putting advertisements on

nearly every hot TV program, OPPO rooted it in people’s mind that this is a big

company because its advertising expenses are huge beyond doubt. OPPO also

promotes its concept of pursuing freedom and joy, and this makes people believe they
Study on OPPO Company Marketing 9

will become such kind of people if they buy OPPO products. The branding strategy

really works.
Study on OPPO Company Marketing 10

Chapter 3 Chances and Challenges

Know the enemy and know yourself, and you can fight a hundred battles with no

danger of defeat, this is the old wisdom of Chinese strategist Sun Tzu. When it comes

to the business world, companies should not only know the enemy and themselves,

but also the whole industry. When there is a challenge, there is a chance.

3.1 Outside Air

When analyzing the external and internal environment of business, SWOT model is

very much helpful. In the phone manufacture industry, opportunities are prominent.

With the development of technology and economy, mobile phones became more and

more affordable. Plus the huge population of China, there was really a promising

potential market for mobile phones. Theoretically, OPPO could have a bright future.

However, everything has two sides, and mostly these two sides are opposite. Mobile

phone developed so fast, and this industry could hardly be blank. In fact, there were

already some well-established companies in this industry, like Nokia and Samsung.

These companies are big international brands which had entered the market much

earlier and already gained their customer group. In contrast, OPPO is a national brand,

and is comparably young and less-experienced. How could OPPO compete with these

“big brothers”? This remained the most difficult problem.

In conclusion, the external environment in the phone industry was rather complex

when OPPO first entered in the year 2005. Opportunities were huge, yet threats could

not be ignored. These well-established companies were the biggest obstacles in


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OPPO’s development. In order to achieve something, OPPO must come up with

countermeasures.

3.2 Self Evaluation

The O(opportunity) and T(threat) of SWOT model are analyzed in the last part, which

concerns with the external environment of the industry. The S(strength) and

W(weakness) are of same importance, which deal with the internal environment.

BBK Industrial
Corporation

BBK Educational BBK Audio-Visual BBK Communication


Electronics Electronics Technology

OPPO Electronic
Industrial Corporation

source: http://www.oneplusbbs.com/forum.php?mod=viewthread&tid=548227&page=1&mobile=2

The most obvious strength of OPPO is that it is a part of the BBK corporation which

is of large scale and a nationwide famous brand. The above graph shows their relation

clearly. Plus, BBK was founded in 1995, much earlier than OPPO. Therefore, BBK is

more experienced in the industry. Because of its relation with BBK, when OPPO

began to manufacture phones, it could make use of the resources accumulated by

BBK. For example, OPPO selected the best BBK distributors and turned them into its

own agents. While distributing products, the former BBK distribution channels could
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be used directly. As it is a relatively young brand, it is able to draw lessons from

others’ experiences so as to avoid making the same mistake. New companies are also

more flexible when making changes.

Nothing could be perfect without weaknesses, and OPPO is of no exception. Its

newness was the biggest challenge the company had to face on the premier stage, for

it took time and money for OPPO to make itself known to the public. What’s more, it

is a national brand. This is not a disadvantage, it is just that culturally people tend to

trust international brands more than national brands. Therefore, national brands are at

a relatively negative position comparing with international brand, even before the

competition begins.

In all, chances and challenges co-exist in the development of OPPO. It has the well-

laid foundation of BBK and is more flexible in making changes. However, it is really

hard to compete with other big brands. Success or failure, both are possible.

Therefore, every move it takes could be fateful.


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Chapter 4 OPPO Marketing

According to the above SWOT analysis, chances and challenges co-exist in the

development of OPPO. In order to survive or even to succeed, OPPO has to minimize

its weaknesses and avoid threats in the SWOT analysis; meanwhile it is also necessary

for OPPO to utilize its strengths to the largest extent and make good use of the

opportunities in the industry.

4.1 Right Product, Right People

Product is the soul of a company, without it, everything is meaningless. Just as

Soellner (2014) puts it, we so often rush to the promotion and pretty pictures,

forgetting that the right service or product can do a lot of the work to begin with. The

right product or service is also essential for underpinning your marketing

communications and achieving sustained success. She has a point. OPPO obviously

got this point and devoted itself in making the right product. Yet what is the right

product?

To answer this question, it is necessary to know who buys the product. Because

customer needs are different, and the standard for the right product tends to change

accordingly. That is why companies have to figure out their target market. Kaleikini

(2009) explain this more clearly--in marketing if you have no target it's not like the

motivational speech of "Shoot for the moon if you miss, you'll land among the stars."

It just doesn't work that way in business. You'll be shooting into the black expanses of

space--where no one exists. Target who you are after and you will know how to reach

them easier and find that you won't have to invest so much into your marketing to get
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the results you want. Indeed, targeting the market is of fatal importance in marketing.

How to realize this? Bloom and Conti (2007) provide a solution.

To get a strong handle on target audiences, startups need to identify the

different types of buyers. One of the best ways to make this happen is looking

at who actually makes or influences the buying decision. From there, you look

at what their needs or problems, what they’re trying to achieve, how they can

be successful, and their budgets. What you may discover is slight, but

important, differences that will impact how the product should be pitched so a

prospect can be pushed down the sales funnel. By clearly identifying target

audiences, it becomes easier to capture someone’s attention because their

needs and goals are front and centre.

In OPPO’s case, the company targets the youth as its potential buyer. This could be

seen in its most famous jingle—U like. Here, U means youth, indicating that youth

are the target market of OPPO. Therefore, what the youth would like should be the

right product.

Firstly, youth like fashionable things. They want their phones to illustrate their

identity and become their symbols. OPPO outsources the design of product to the

famous Dutch company--Studio Dumbar, and their products are all of no exception

beautifully cultivated. Sometimes the appearance alone could attract young girls rush

to buy it.

Then, youth spend lots of time on their phones, they have high requirements on the

social and entertainment function of phones. OPPO provides users a 1080P screen on
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which colors could be presented vividly and brightly. Its music player and camera are

carefully designed to meet youth’s preferences. In addition, to meet the popularity of

selfie, OPPO also provides camera beautifier which shall be girls’ favorite. All these

satisfy the social and entertainment requirement of the youth and distinct OPPO from

other competitors.

Besides, battery capacity is becoming more and more important in modern life. As

youth are more and more reliable on their phones, they spend lots of time playing with

them. Most smart phones have big-size screens,that could bring comfortable visual

experience. While on the other hand, it is very costly of electricity. Thus, most phones

have to be charged daily. This is the common drawback in the industry, OPPO could

not avoid it. Yet it has found another way to counter it. The fact that phones have to

be charged daily could not be changed, then just shorten the time for every charge.

OPPO has invented the VOOC technique which can charge 75% power in just 30

minutes. This is really a breakthrough. The innovation brings OPPO not only praises

in the industry, more importantly, also the increase of sales of the products.

4.2 Approaching the Market

In the above SWOT analysis, placing is the strength of OPPO as it has the well-laid

foundation of BBK. How to maximize this strength?

Lunn (2012) holds that

place, however – as in making sure that the product gets to the customer, be it

on supermarket shelves, local shops or just available online – is often largely

ignored. But if you don’t make it easy for the customer to purchase your
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product, you’ll probably lose the sale. If your competitors make it easier to

buy an equivalent product from them, then the chances are you’ll miss out on

the sale. So much these days is geared to making the user-experience as

straightforward as possible. But it does create an imperative to keep it simple

for the customer.

The point here in very clear—make it simple for customers to get the products, and

OPPO performs well in this aspect.

BBK’s well-laid foundation provides OPPO with an advantage—BBK’s nationwide

distribution channels are there, reaching the market is not that difficult for OPPO.

With the help of the former resources, OPPO built a nationwide distribution channel

covering nearly all the second and third-tier cities where most of its products are

purchased. Walking on the streets there, it is easy for customers to find OPPO agents.

If customers miss an agent, only three or four meters away will they find another one.

OPPO has made its products easy-get ones.

Still, there is innovation. OPPO takes the distribution channels of BBK and simplify

them, then develops an unique form of flat distribution channel. There are not many

layers between OPPO and its lowest body, thus the distribution expenses are reduced

largely. Under this circumstances, the profit margin is large. Agents could profit more

in selling OPPO products than other brands, thus are motivated as a result. When a

customer comes in, the agents will introduce OPPPO products wholeheartedly and

persuade the customer to buy one even if the customer’s original plan is some other

brand.
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4.3 Price for Position

Pricing is no easy task. According to Ebert and Griffin (2010), setting prices involves

understanding how they contribute to achieving the company’s sales objectives.

Therefore, prices are not only determined by the costs, but also by a company’s

objectives and positions.

As Kotelnikov puts it, price is also a powerful trigger for the subconscious. A higher

price conveys a premium product experience, causing a powerful subconscious

emotional mix of self-esteem, recognition and joy in consumers. OPPO positions

itself as a high-grade national brand. The company invites foreign celebrities to be its

adverts, and produces advertising films which are full of modern and fashion

elements. Considering this, the prices of OPPO products can not be low-ranked.

However, the external T (threats) shall not be ignored. There are lots of strong

competitors in the industry, it is necessary for the company to weaken the negative

threats to the smallest extent. Taken both these two into consideration, OPPO chooses

the medium. Its pricing is higher than most other national brands, demanded by its

high-grade position. Yet it is comparably more economical than some international

brands, after all, OPPO is a relatively new national brand.

Besides, OPPO adopts the strategy of uniform pricing. That is, for every single

product of OPPO, the price nationwide is the same. This has two prominent

advantages. First, this allows both the company and the distributors to have large

profit margin. Vicious price competition could be eliminated, all they have to do is

selling as more as possible products using their talents. Second, the uniform pricing
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strategy regulates the distribution of OPPO’s products. When people go to different

shops and find the price of a single product is all the same, they tend to believe that

this is a big brand and could be trusted. A healthy and strong public image is built in

this way. Its tight grip on price helps the company win the customers.

4.4 Brand Building

Tailor (2015) says that

A brand name helps an organization differentiate itself from its competitors. In

today's competitive world customers expect products to have branding.

Customers often build up a relationship with a brand that they trust and will

regularly purchase products from that brand. Some people will only purchase a

particular brand even though there are acceptable alternatives on the market.

Brand equity refers to the value of a brand. Brand equity does not develop

instantaneously. A brand needs to be carefully nurtured and marketed so

consumers feel real value and trust towards that brand.

As this research has mentioned in the former part, OPPO is a relatively new brand, its

brand equity is not well built yet. To some extent, this is a W (weakness) in the

SWOT model analysis—OPPO is less-experienced compared with other well-

established. To deal with this is rather tough.

4.4.1 Lighter Brand, Lighter Burden

Lack of experience in the industry makes OPPO a lighter brand compared with other

big brothers. However, the company survived and even succeeded, there must be

some points.
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Lighter brand could be a disadvantage, but the company cleverly minimizes the

negative impact and utilizes the positive one. New brands are the one who dare to

make changes, sometimes even revolutions. Because they have lighter brands, their

burdens are lighter as well. When time comes to 4G era, many big brands are

indecisive in promoting their 4G products, for their stocks of 3G products are quite

large. This becomes a heavy burden on their making changes. The situation of OPPO

is different. Its stock of 3G products are not that huge because of its newness and

limitation of capacity, when time comes the company bravely emptied all its stock of

3G products. Therefore, the company is able to devote wholeheartedly in the research

and development of 4G products. Now this move is proved right and long-sighted.

4.4.2 Effective Advertising

The advertising strategy of OPPO is very effective, and it is carefully designed to

please and charm the target market—the youth.

Firstly, the company invites international celebrities to advertise for their products.

This works best among the youth. Because most youth like stars, and using the same

product which their idol has advertised would make them feel satisfied. Besides, the

advertising strategy is also consistent with the position of the company. Big star for

big brand, this is the common logic in people’s mind. By the proper use of adverts,

OPPO re-emphasized its position as a high-grade fashionable brand.

Second, the company only sponsors the hottest and most watched TV programs.

These TV programs own a large amount of audience and enjoy big fame. What’s

more, the target market—the youth, are the loyal audience of these programs. In this
Study on OPPO Company Marketing 20

way, OPPO trickily shaped an illusion that the advertisements of OPPO are

everywhere. People would presume that only companies of big scale and sufficient

fund can do that. So they will take OPPO as one of them. The expenses of advertising

in this strategy is acceptable, but the results are beyond calculation. Every one knows

OPPO, and everyone knows its distinct feature—young.

Through well-planed advertising strategies, the company minimizes the negative

impact of its shortcoming—being young, and even tries to take advantage of it.

4.4.3 Conceptual Marketing

Conceptual marketing cares not the specific products, instead it focuses on the brand

identity. By establishing the brand as a cultural or social focus point, companies need

to focus on specific products less; essentially, anything associated with the brand is

seen in the same light. More precisely, companies are not only selling products, they

are also selling concepts.

OPPO tries hard to convey the message to the market that this company is always on

the pursuit of freedom and sheer joy of life. When this idea is widely accepted, it will

motivate people to buy the product. For conceptual marketing creates subconscious

connections without the customers even being aware, that is to say, customers will

consider themselves as the freedom-chasing one when they buy OPPO products. This

idealization pushes people to become the loyal supporter of the company.

In all, advertising and conceptual marketing make up the branding of OPPO, and the

result of sales proved that this strategy really works. The strengths are utilized to the

largest extent, and the negative impacts are minimized.


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Chapter 5 Conclusion

Operating business is no easy job, especially in the fierce competition against strong

competitors. The SWOT analysis shows this well. Yet OPPO made itself a success in

the industry, its marketing contributed a lot. First, the company provides the right

product for the right people. According to the needs of its target market, the company

develops distinct products—young, fashionable and entertainment-oriented. Then, the

placing is also notice-worthy. Based on the former foundation of BBK, the company

develops a nationwide distribution channel and makes its product easy to get. The flat

distribution allows large profit margin for both the distributors and the company, thus

promoting the sales of the product. Besides, the pricing strategy of the company really

works. Its pricing is comparably higher than most other national brands due to its

high-grade position; while compared with the big international brands, the pricing of

OPPO is lower. That is where the charm lies. Last but not least, the company builds a

strong brand through advertising and conceptual marketing. The effective advertising

shapes OPPO a healthy and strong brand, the conceptual marketing attracts people

into its loyal supporters. In these ways, OPPO utilizes the S (strength) and O

(opportunity) to the largest extent and trickily minimizes the W (weakness) and

T(threat).

The values here are universal, though not specific. Companies struggling in the

competition could learn from OPPO—maximize the strengths and avoid drawbacks.

If competitors are too strong, then just find another way establish one’s own distinct

model. Chances and challenges are always tied together.


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Unlocks the Hidden Growth in Your Business. McGraw-Hill Education

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Ronald J. & Griffin, Ricky W. (2010). Business Essentials. Beijing: China

Renmin University.

Kakeikini, Michael. (2009). Why is it Important to Define a Target Market for Your

Business. [online] available from:

http://www.entrepreneur.com/topic/marketing [December 1, 2009]

Kotelnikov, Vadim. (2014). Marketing to the Subconscious. [online] available from:

http://www.1000ventures.com/business_guide/marketing_2subconscious.html

[June 8, 2014]

Lunn, Ruth. (2009). The importance of Place. [online] available from:

http://consil.co.uk/blog/2012/05/10/the-importance-of-place/ [May 10, 2012]

Soellner, Julie. (2014). The Importance of Service/Product Development in Your

Marketing Mix[online] available from:

http://www.walltowallsunshine.com/blog/the-importance-of-service-product-

development-in-your-marketing-mix [December 3, 2014]

Tailor, P. (2014). Branding. [online] available from: http:// www.learnmarketing.net

[April 23, 2014]

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