Professional Documents
Culture Documents
2015-06-15
Abstract
30 million products sold in a single year, OPPO is regarded the most healthy and
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
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
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 5 Conclusion...................................................................................................22
Study on OPPO Company Marketing 5
--------U like
Chapter 1 Introduction
The popularity of smart phone have increased over years, together goes the
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
This research finds that in order to compete with other brands, OPPO developed its
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
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.
Product is of extreme importance to business, and OPPO knows this. Thus, the
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
most famous jingle---U like. Right product for the right market is as good as meeting
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.
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
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
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.
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
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
countermeasures.
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
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
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
Study on OPPO Company Marketing 12
others’ experiences so as to avoid making the same mistake. New companies are also
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.
According to the above SWOT analysis, chances and challenges co-exist in the
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
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
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
Study on OPPO Company Marketing 14
the results you want. Indeed, targeting the market is of fatal importance in marketing.
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
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
Study on OPPO Company Marketing 15
which colors could be presented vividly and brightly. Its music player and camera are
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.
In the above SWOT analysis, placing is the strength of OPPO as it has the well-laid
place, however – as in making sure that the product gets to the customer, be it
ignored. But if you don’t make it easy for the customer to purchase your
Study on OPPO Company Marketing 16
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 point here in very clear—make it simple for customers to get the products, and
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.
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.
Study on OPPO Company Marketing 17
Pricing is no easy task. According to Ebert and Griffin (2010), setting prices involves
Therefore, prices are not only determined by the costs, but also by a company’s
As Kotelnikov puts it, price is also a powerful trigger for the subconscious. A higher
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
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
Study on OPPO Company Marketing 18
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.
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
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
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.
Study on OPPO Company Marketing 19
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
and development of 4G products. Now this move is proved right and long-sighted.
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,
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
impact of its shortcoming—being young, and even tries to take advantage of it.
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
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
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
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
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
References
Bloom, Robert. & Conti, Dave. (2007). the Inside Advantage: The Strategy that
Da, Da. (2015). Total Sales of OPPO in 2014. [online] available from:
Renmin University.
Kakeikini, Michael. (2009). Why is it Important to Define a Target Market for Your
http://www.1000ventures.com/business_guide/marketing_2subconscious.html
[June 8, 2014]
http://www.walltowallsunshine.com/blog/the-importance-of-service-product-