case study on oppo

7/24/2019 Case study on OPPO

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OPPO IN PAKISTAN: Challenges to enter in the Market

Company background

Founded in 2004 and based in Guangdong, OPPO is an electronics manufacturer that delivers

mobile devices in more than 20 countries. Its major product lines include portable media plaers,

!"# $%s, #%#& 'lu(ra disc plaers, feature phones and, most recentl, smart phones and

tablets.

)aving successfull entered "hina*s mobile phone mar+et in 200, OPPO began e-ploring

international e-pansion in 200.

' mid(204, OPPO had established a presence in the /, "hina, 1ustralia and other countries

in urope, 1sia, the 3iddle ast and 1frica. ' no, the tactile and aesthetic 5ualities of

OPPO*s designs, and its commitment to co(developing products ith its customers through user(

e-perience feedbac+ channels had achieved idespread recognition.

1s such, ith its latest 67 and 89 models, OPPO started in the final 5uarter of 204 its most

challenging cross(border e-pansion project et : delving into Pa+istan;s saturated martphone

mar+et.

The contet

$he rise of smart phones has been sift, ith technological innovation creating an incredibl

sophisticated mobile ecosstem. Pa+istan;s advanced infrastructure meant it as uni5uel poised

ithin this vibrant scene. $he earl introduction of 7G and public nation. ' 204, Pa+istan had the highest martphone adoption rate globall, ith

most consumers carring either an 1pple or amsung model.

=1s a ne entrant in a mature and small, but affluent mar+et, 5uic+l building brand e5uit

ould be essential for successful e-pansion. o e sought a partner that could provide a


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comprehensive understanding of and access to local consumers across multiple platforms,> said

ean #eng, managing director of OPPO Pa+istan.

'uilding brand e5uit involved a three(step approach?

Increasing brand aareness among consumers mostl li+el to purchase smart phones.

#riving preference b communicating the distinctiveness of the ne 67 and 89 smart

phones.

ncouraging product trials at the nel opened OPPO "oncept tore at 3all and $rade

centre in Gujranala and in other cities of Pa+istan.

Finall, the campaign had to be consistent ith OPPO*s brand positioning, =$he 1rt of

$echnolog>, hich re5uired its mar+eting partner to consider the granular details in everda

living and combine that ith technolog to create trendsetting b(products and uni5ue consumer

e-periences.

Marketing Strategy

!arly Challenges:

In 204 OPPO plans to enter in the ne geographical area called sub(continent, in its initial

analsis OPPO found that Pa+istan and India are the most advance and technolog oriented

nations in the area so the found an opportunit and starts their operations in India ith heav

investment, after entering in Indian mar+et OPPO*s major focus as on mar+eting activities as

production as being continued in "hina, in mar+eting activities OPPO*s initial focus as on

developing an television commercial based on Indian culture, that contains Indian actors, so that

ne target mar+et can easil understand it and $%" can capture the attention of target audience

because of Indian actors. For this purpose@ ne idea as developed on one of the successful

model of OPPO martphone called 6 and transformed on to Indian actors onam Aapoor and

)ariti+ 8oshan. 1fter completion of television commercial it runs of different channels


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successfull, all this as going smoothl and successfull in India and no OPPO began to thin+

about entering into second largest mar+et of sub(continent called Pa+istan.

OPPO as thin+ing about to enter in the ne mar+et but B mobile the largest selling mobile

phone in Pa+istan too+ the entr of OPPO martphone as a serious threat and do some planning

that OPPO had never ever thought about that. 1s OPPO*s Indian $%" contain to Indian actors

that ere also famous in Pa+istan that*s h OPPO decided to pla the same $%" Pa+istan to

reduce its mar+eting costs, B mobile someho came to +no all the internal planning of OPPO

martphone and launch their ne model CD ith highest specifications and highest price at

present time, after launching its ne model B mobile planned to made to ne $% ad as ell that

ill contains one of Indian actors OPPO had casted in their ad, for this purpose the made a

contract ith onam Aapoor, the ad as developed and run on $% successfull, further more B

mobile gets the "op 8ights for its celebrit that have endorsed and made it a clear ban for

OPPO to run its same ad in Pa+istan o OPPO before entering in the Pa+istan gets some serious

urprises in terms of competition the have never thought. 1fter all this OPPO had to do all the

stuff related to $% ad again for Pa+istan. OPPO tried to do this again in ne mar+et as ell but

the costs this time ere much higher than the e-pectations of OPPO mar+eting management

team. 1s ell +non celebrities of Pa+istan demanded a much higher amount than Indian

celebrities so OPPO left this all and decided to run the same $% ad hich the used in "hina, thesame $% ad in Pa+istan did not get the attention of target audience as it as totall in "hinese

culture and conte-t. o it becomes challenge for OPPO to manage $% ads in countr here the

$% ad has significant impact on customer buing behavior, the had to thin+ about ho to

manage this issue ith a limited budget.

1c+noledging that digital media had created a more elusive consumer ith short(term thin+ing

and ho lives across multiple screens, OPPO sought a partner that had been +eeping up ith the

times, one that apart from offering a cross(platform approach as agile and armed ith the latest

mar+eting technolog.


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"usiness results

OPPO evaluates a mar+eting campaign b loo+ing at ho it increases brand aareness, drives

product preference, increases foot traffic at its "oncept tore and contributes to revenue. Overall,

the campaign led to an increase in brand aareness and consumer purchasing intent, contributingto a rise in OPPO*s martphone sales during the final 5uarter of 204, hile delivering the

folloing?

. Increased brand aareness b engaging more than 247,000


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. OPPO;s 1dvertorials and banners on Geo nes, ensuring clutter(brea+ing brand

visibilit.

. Product giveaas and in(store footage hich encouraged product trials and drove foot

traffic to the OPPO "oncept tore from October 204 to #ecember 204.

0. 1 5uiE as incorporated in 209, alloing vieers a chance to in a ne 67

smartphone.

. egments of Goals HQere shot in the OPPO "oncept tore to provide a snea+ previe

of the store*s phsical space and location.

= #eng said.

=Given the integrative nature of the


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=


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OPPO 8K P!/ 7.0

OPPO 67 9,00

!hibit ' Promotions


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!hibit ( Income Statement o) OPPO

Particulars Years

2013 (Rs) 2014 (Rs) 2015 (Rs)

Sales 0,D7,200 7,09K,D0 29,,44

Less COGS D,72,D00 ,290,D0 D,74,4D0

Gross Proft *+,(-+.-- *+,-.+,'- ,+,#*+/,,

Less:

Op.Expenses

Administration

Expenses

49,200 4D,720 949,92

Selling Expenses ,200,000 ,720,000 ,492,000


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Total expenses ,D9,200 ,D,720 ,K,92

Operating Profts (+#0/+*-- '+//-+1-- .+,#0+-(.

Less Tax (17% 940,4 90,79 ,9,D

Proft A!ter Tax '+.(,+/-' '+*,'+##1 1+.1,+#(/

case study on oppo

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