In the present competitive world, many companies are performing their business operations in offering the smart phones to the customers. The smartphone industry is booming in the Indian market as these gadgets are considered as essential part of human life. Vivo is well-known Chinese company that was established in the year 2000. The company is considered as another Chinese smartphone company who entered in India within 2-3 years. In the market, the company might deal with the different challenges, which will be identified and evaluated, in this report.
The aim of the report is to explore marketing concepts and challenges based on the Vivo mobile phones in India. This assignment will be built on the previous task that includes the situation analysis of the company that help in making the effective strategies after analysing the marketing challenges. The major concepts that are discussed in the report include target market, competition that is faced by company and marketing mix strategy that is formed by company. The strategies of marketing mix are majorly formulated by the Vivo mobile with the motive to deal with the challenges in the Indian market.
Target market is a group of consumers at which the product or service is majorly aimed by the company. The customers of the company are people with all segments because smartphones are used by everyone in Indian market (Armstrong, Adam, Denize & Kotler, 2014). Vivo Company makes use of multi-segment targeting strategy with the help of which the company can target different segments in the market.
|
Age |
Occupation |
Model |
|
18-30 years |
Less than 10,000 |
Y11, Y15, Y22, Y28 |
|
22-30 years |
10K-20K |
Y28, X3S |
|
26-35 years |
15K-25K |
X3S, XSHOT |
|
30-40 years |
25-40K |
XSHOT, X5MAX, X5MAX PRO |
Psychographic segmentation: – This segmentation is also targeted by the company as it involved the segmentation of market on basis of values, interests, and lifestyle of the people. In the Indian market, the people have the lifestyle to make use of smartphone and to purchase smartphone with different features (Chernev, 2018). The customers of company value for the new features that are offered by the Vivo and this is the major reason due to which they remain interested for the products of company.
Behavioural segmentation: – The segmentation of behaviour is defined as the process through which the total market is divided into the small groups that are based on the behaviour of the customers (David, 2011). The major factor which is considered by the vivo company while targeting the customers include membership status, usage rates as well as the activities that helps them to participate.
The usage rate of the vivo products is increasing in the market of India due to which the company is targeting youth who generally have high usage rates. Some customers like innovative feature as well as quality of product due to which they remain loyal to company. Thus, this is the reason due to which the customer with the high membership status as well as the usage rates are two major factors that are considered by company while targeting.
Vivo Company in India found the intense competition in the market with the company like Samsing, Xiaomi, Oppo and many others. The major products, which are offered by the Vivo, are Smart phones and Mobile Accessories. In India, the company launched the mid-market mobiles in India but the company is targeting the upper-class market by offering those relative new designs as well as functions. This is offering the challenge to the companies who are already present in the market which include Samsung, Xiaomi and many others.
There is presence of the direct competitors in the market that include most of the Chinese companies. The substitutes of the company are not major in the market of India. The products of the company are smart phones and mobile accessories are laptop, tablet, and many others (Frynas & Mellahi, 2015). However, this is the fact that customers presence is to the smartphones and this is the reason due to which they the demand of smartphones are increasing in the market. The substitutes are different but they can somewhere meet the people’s time and attention.
Marketing mix is a set of marketing tools that is used by the firm with the motive to pursue the objectives of marketing (Grant, 2016). The combination of factors like product, price, place, and promotion can influence the consumers of Vivo Company to purchase the product. Thus, the marketing mix strategy of Vivo in Indian market is done.
Vivo is leading company who offers smartphone as well as consumer electronics with the ensuring of products as well as superior services (Grant, 2016). The products that are offered by the company are considered as tangible products. The company position itself as one of the perfect selfie smartphone and due to which its appeals to its customers. Company believe in introducing the new products in the market with the benefit of great appearance to offer the fast as well as smooth user experience. The product strategy of brand is to make use of effective technology that helps them to offer innovative products. This is evidence as the company launched X1 that is considered as first smartphone that associate a Hi-Fi chip that offers an unparalleled audio experience.
The branding strategy that is followed by Vivo is to offer improved features to grab the attention of customers (Hollensen, 2015). However, this branding strategy of the company is not working effectively because Samsung has acquired the market of India. Further, the competitor Xiamo also improved the strategy of branding due to which the company was able to deal with the Samsung and other companies in India.
The above graph shows the data of the company and its related competitors that are present in the market of India.
The product life cycle is a new product evolution through a system of the phases from the introduction, growth, maturity as well as decline (Išorait?, 2016). Presently, the products of the company are at the introduction stage in the Indian market as they have the opportunity to expand their business operations in the market.
Thus, the company need to bring the improvement in the brand strategy that helps to reach the growth stage. The company need to focus on the prices as well as after sales services that will help them to improve the market share. It is suggested to the company to improve the prices, as people are cost conscious.
Price is the amount on which the company offer its services and products. Vivo Company provides the high quality product at the competitive prices (Kotler, 2015). Thus, the strategy that is used by the company is competitive strategy in which they compare the prices of competitors and then they decide the prices for their products. However, the company generally keeps the high prices than the competitors because of the number of features, looks, and design and battery life of the products. The price is the weakness of company due to which the products of the company remain in the reach of the upper range and mid-range who are equipped with the different options in the market. This is the reason due to which most of the customers in the Indian market shift to other companies who can offer them featured products at fewer prices. The objective of the company can be achieve if the company implement the new pricing strategy that is low pricing strategy in the Indian competitive market (Rothaermel, 2015).
Vivo Company is marketing the line of products in the market but company generally focus the new products that are introduced by them instead of just one item. The pricing of the marketing varies according to mode of promoting the products. In addition to this, the price of the vivo products can be managed through discounts as well as the rebates. The company should increase the amount of discounts and other offers in terms of prices as well as the mobile accessories. All these elements help the vivo company to maintain fine-tune the base price with the help of discounts.
Place is the location where the company can easily make the products accessible to the customers. The philosophy, which is majorly used by company, is selling, in which the company sells product directly on showrooms and negotiating with retailers. Vivo ensure that they are able to extend their reach that helps them in improving the accessibility of customers. The company sell their products through offline as well as online mode. The offline mode includes the distributors, wholesalers, and retailers who make their products easily available in Indian market. This shows the distribution channel of product that is used by company (Rothaermel, 2015). The distribution of the product is also important for the company to make it easily accessible. Vivo Company in the starting focuses on the semi urban as well as urban areas of the country within the period which helps in forming effective relationship. The company is the offering the easy accessibility to the customers by focusing on the rural as well small towns.
The company majorly focuses on the offline mode as company believes that customer want to get products in their hands, as this will enhance their experience with the company. Along with this, vivo company provide their products through online mode as well as because the people are shifting. However, the customer might face the security threat when it comes to online offering of products.
The strategy of promotion in marketing mix as this helps the brand in forming the image in the mind of customers. The company is proactive for promoting and advertising its brand with the help of traditional as well as online promotion. Vivo make use of the integrated marketing communication, which helps the company to ensure that all the forms of commination as well as the message are linked together.
The company recently introduced its brand campaign with the motive to promote the newly launched Y series (Exchange 4 media, 2018). The aim of the campaign was to generate the awareness about the series and highlighting the performance of products and its features. The major reason behind the campaign in the Indian market was to target the youth that remain free and open-minded with the motive to accomplish the objectives.
This has been found that smartphone brand vivo has announced Aamir Khan as the brand ambassador for the Indian market. Aamir khan is well known eminent actor that is signed majorly for the Vivo future brand for the product communication initiatives of Vivo (Exchange 4 media, 2018). The company has formed a retail presence with the motive to meet the diverse needs of the customers in the Indian market. Further, the company has introduced an e-store and the experience centre with the motive to offer the phenomenal experience to the customers who are loyal and valuable for company.
Thus, it has been found that the company is more inclined towards the television promotion or endorsement. However, it is suggested to company to make use of social media with the motive to promote the products in the market. The rise in the use of social media among the youth of India is giving the opportunity to meet the objectives of company (Luca & Suggs, 2010). The appointment of social media team can manage the advertisement on social media platform.
Conclusion
In the end of the report, this can be said that Vivo Company might deal with the different marketing challenges in the market. Moreover, the market of India is very competitive for the company that makes it difficult for company to survive in market. The effective strategies related to the marketing helps the company to survive in the markets that are discussed with the help of marketing mix tool. In addition, the analysis related to target market as well competitors has been done in the report.
References
Armstrong, G., Adam, S., Denize, S. & Kotler, P. (2014). Principles of marketing. 6th edition. Welbourne: Pearson Australia.
Baker, M. J. (2014). Marketing strategy and management. London: Palgrave Macmillan.
Chernev, A. (2018). Strategic marketing management. Chicago:Cerebellum Press.
David, F.R. (2011). Strategic management: Concepts and cases. India: Pearson/Prentice Hall.
Dutta, A. & Pinto, V.S. (2017). Brand strategy: Xiaomi makes the right calls, Oppo and Vivo. Retrieved from: https://www.business-standard.com/article/companies/xiaomi-makes-the-right-calls-oppo-and-vivo-see-a-lull-117112600654_1.html
Economic Times. (2018). Here’s the list of India’s top 5 smartphone players. Retrieved from: https://economictimes.indiatimes.com/tech/hardware/heres-the-list-of-indias-top-5-smartphone-players/articleshow/62909122.cms
Exchange 4 media. (2018). Vivo celebrates free spirit of the youth in latest Y Series campaign by Publicis India. Retrieved from: https://www.exchange4media.com/advertising-news/vivo-celebrates-free-spirit-of-the-youth-in-latest-y-series-campaign-by-publicis-india-92636.html
Exchange 4 media. (2018). Vivo India announces Aamir Khan as its new brand ambassador. Retrieved from: https://www.exchange4media.com/advertising-news/vivo-india-announces-aamir-khan-as-its-new-brand-ambassador-88968.html
Frynas, J.G. & Mellahi, K. (2015). Global strategic management. USA: Oxford University Press.
Grant, R.M. (2016). Contemporary strategy analysis: Text and cases edition. New Jersey: John Wiley & Sons.
Hollensen, S. (2015). Marketing management: A relationship approach. India: Pearson Education Limited.
Išorait?, M. (2016). Marketing Mix Theoretical Aspects. International Journal Of Research – Granthaalayah, 4(6), 25-37.
Kotler, P. (2015). Framework for marketing management. India: Pearson Education.
Luca, N.R. & Suggs, L.S. (2010). Strategies for the social marketing mix: A systematic review. Social Marketing Quarterly, 16(4), pp.122-149.
Mukherjee, W. (2018). Vivo plans to invest over Rs 4,000 crore in India. Retrieved from: https://economictimes.indiatimes.com/tech/hardware/vivo-plans-to-invest-over-rs-4000-crore-in-india/articleshow/66871796.cms
Rothaermel, F.T. (2015). Strategic management. UK: McGraw-Hill Education.
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