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11/9/2018 One Plus 3
Understanding Markets and
Consumers Report
Mayank Agrawal
JINDAL GLOBAL BUSINESS SCHOOL, 2018
Page | 1
A REPORT ON:
ONE PLUS 3
Submitted to: Dr. Renu Emile
In partial fulfilment of the requirement of the
Understanding Markets and Consumers Course
By:
Mayank Agrawal
On:
November 09, 2018
Page | 2
Letter of Transmittal
November 09, 2018
Dr. Renu Emile
Associate Professor
Understanding Markets and Consumers
Department of Business Administration
Jindal Global Business School
Subject: One Plus 3 Marketing Report
Dear Ma’am
As per the guidelines provided by you during the classroom discussion and course outline, we hereby
submit a report on the case titled ‘One Plus 3’. This report has been prepared after going through
the entire case and carefully scrutinizing the facts and assumptions, while linking it to respective
analysis as appropriate. The report contains the relevant facts in the introduction, problem
statement and list of possible alternatives and best action plan to be implemented.
Kindly evaluate the same and provide your valuable inputs.
Thank you so much.
Best Regards,
Mayank Agrawal
Jindal Global Business School
Page | 3
Table of Contents
List of Illustrations
S.No. Contents Page No.
1 Introduction 5
2 Initial Marketing Strategy used 7
3 Macro Analysis 10
3.1 Legal Analysis 10
3.2 Economical Analysis 10
3.3 Socio-Cultural Analyis 11
3.4 Technological Analysis 11
3.5 Environmental Analysis 15
4 Micro Analysis 15
4.1 Target Market 15
4.2 Distribution Channel 16
4.3 Suppliers 16
4.4 Competitors 17
4.5 Customers 17
5 Current Target and Marketing Mix 17
6 SWOT Analysis 20
7 Recommendations 22
8 Conclusions 23
9 References 24
S.No. Contents Page No.
1 Figure 1 - One Plus Products Line up Image 6
2 Table 1 - Unveiled date and International Release of One Plus products 6
3 Figure 2 - oneplus.net Incoming website visits 7
4 Figure 3 - One Plus traffic share to the website from different countries 8
5 Figure 4 - One Plus traffic share to the website through different mediums 8
6 Figure 5 - One Plus advertisements 9
7 Figure 6 - Tweet by Carl Pei 12
8 Figure 7 - OnePlus 5 and iPhone 7 Design comparison 12
9 Figure 8 - OnePlus 5 and iPhone 7 Design comparison 13
10 Figure 9 - AMOLED Display in OnePlus 5 14
11 Figure 10 - OnePlus 3T Brand Ambassador 18
12 Table 2 - Pricing of OnePlus Products 19
Page | 4
Introduction
One Plus was founded on 16 December 2013 by ex-employees of
OPPO Electronics, Pete Lau and Carl Pei. The company is based
out of Shenzhen, Guangdong, China and has a presence in 34
countries worldwide. One Plus is a subsidiary of OPPO, which is,
in turn, owned by BBK Electronics.[1]
Thus, it's a sub-brand of a
sub-brand. The company's main goal was to design a smartphone
that would balance high-end quality product with a lower price than
other phones in its class, believing that users would "Never Settle"
(Chinese: 不将就) for the lower-quality devices produced by other
companies and be the “Muji of the tech industry”, referring to the
Japanese lifestyle brand’s simple products and high build quality.[2]
Lau explained that "We will never be different just for the sake of being different. Everything
done has to improve the actual user experience in day-to-day use." The company unveiled its
first device, the OnePlus One, on 23 April 2014.[3]
One Plus initially targeted the niche market, as they called them,
due to various restrictions that they had, and since they were just
starting up. This niche market mostly comprised of tech enthusiasts
and developers, since they needed an Android device that provided
them with the flexibility to play around with the software whilst
using its hardware to the full potential. Their popularity grew as it
impressed this niche market and in-turn grabbed the attention of the
global market. They targeted sales of 50,000 units to be sold for One
Plus One but ended up selling more than 1 mil+ units at the end of
2014 fiscal year. The company’s anticipation was surpassed at each
and every point as they introduced new smartphones every year.
They followed a strategy of referral marketing at the start of their journey and continued to do
so till their 3rd
iteration of the smartphone, namely One Plus 3.[4]
In the analysis, we discuss
and analyze at various strategies that forced them to change their marketing strategy from
referral to Influencer marketing.
Page | 5
The saga of brand OnePlus in India includes more than just one or two great phones. It's a story
of near flawless execution and Zen-like focus. The success of OnePlus in the Indian market has
been due to its relentless focus on delivering the best possible phone at prices that are quite
affordable. Then, there is its focus on clean software and feature rich OxygenOS, something
that OnePlus CEO Pete Lau calls Android Plus.[6]
Oneplus product line up is shown below with
their respective M.R.P. at the time of launch.
Figure 1
One Plus Products Line up Image[7]
Table 1
Unveiled date and International Release of One Plus products
Product Code Name Unveiled Date International Release
OnePlus One Bacon 23 April 2014 6 June 2014
OnePlus 2 Oneplus 2 27 July 2015 11 August 2015
OnePlus X Onyx 29 October 2015 5 November 2015
OnePlus 3 Oneplus 3 14 June 2016 14 June 2016
OnePlus 3T Oneplus 3T 15 November 2016 28 November 2016
OnePlus 5 Cheeseburger 20 June 2017 27 June 2017
OnePlus 5T Dumpling 16 November 2017 21 November 2017
OnePlus 6 Enchilada 16 May 2018 22 May 2018
OnePlus 6T Fajita 29 October 2018 6 November 2018
Page | 6
One Plus has been selling exclusively through online portal Amazon.in till 2015 and on its own
website https://www.oneplus.in in India. From 2016 onwards they decided to open their own
dedicated experience store in M.G. Road, Bangalore and partner up with Chroma electronics
to facilitate offline sales of the phone as well. Thus, the company has evolved to a global level
and is competing with the top players in the premium smartphone segment while maintaining
their quality standards. We discuss about their journey from One Plus One to their latest
iteration and how One Plus 3 was a game changer in terms of their marketing strategies.
Initial Marketing Strategy Used
It was a new company that manged to dominate the market in a very short amount of time, an
impressive feat accomplished largely due to clever marketing plan.
The demand for invite-only smartphone (till 2015) was so great that the traffic to their website
skyrocketed to around 25.6 million visits in December 2014 – just after one year OnePlus was
launched.
Figure 2
oneplus.net Incoming website visits
Page | 7
Figure 3
One Plus traffic share to the website from different countries
Figure 4
One Plus traffic share to the website through different mediums
The company aimed at two most basic human fundamentals through their marketing
campaigns: curiosity and anticipation. All in all, they followed one key motto: do things
differently [8]
, which is evident in the unorthodox approaches it took.
Page | 8
Their (initial) marketing strategy focuses on the following three main elements:
1. Their phones are relatively cheap with best specifications available in the market.
They produce flagship killers at a fraction of their competition price.
2. It was invite-only, creating the craze and buzz among young enthusiast buyers
appealing to basic human nature: we always want what we can’t have. This
technique also adds on to the product value of being exclusive only.
3. Educated and instilled within public of it being a niche product with the reputation
of being the ideal phone for technology enthusiasts.[9]
The success of these campaigns is evident from figure 4 graph which shows the maximum
traffic generated by direct traffic, referrals and the search among other mediums available.
Figure 5 illustrates some of the examples of their effective advertisements that it ran, taking a
dig at their competition with fun. These ads were clean, crisp, concise and minimalist.
Figure 5
One Plus advertisements
Page | 9
Macro and Micro Analysis
Macro Analysis – PESTEL Analysis
Legal Analysis
On December 17, 2014 Micromax filed a lawsuit against OnePlus against the use of Cyanogen
software being used as the main operating system in their Android devices. Micromax had the
exclusive rights to use Cyanogen OS in South Asia, and OnePlus violated their exclusivity.
The problem arose because Cyanogen signed a non-exclusive global agreement( barring China
but including India) with OnePlus many months ago. Micromax claimed that their agreement
supersedes the one with OnePlus.
"Your client [Cyanogen] did not show fairness to either Micromax or Shenzhen. If this is how
you want to proceed, that is wrong," said the Delhi High Court to Cyanogen's legal counsel.
As a result, it forced OnePlus to opt for Oxygen OS and drop Cyanogen completely out of their
ecosystem.[10]
Economical Analysis
Acquiring 40 % of India’s premium smartphone market in June, 2018 comparing with zero
when it arrived in 2014 says a lot about their product and brand positioning in the Indian market
beating Samsung Electronics Co. with 34 % market share and Apple Inc’s 14 % share, which
were the leaders in the premium smartphone markets for almost a decade.
With huge competition from brands foreign and local, India is one of the most fiercely
competitive smartphone markets in the world. Of OnePlus’ $1.4 billion of revenue last year, as
much as a third came from India. “The premium smartphone segment may be small, but buying
power among young Indians is surging and will create a huge opportunity by 2020,” Lau said
in an interview with Bloomberg. The company lags behind companies such as Samsung, Vivo,
and Oppo in the non-premium market. “We try not to be overly distracted by what’s going on
in the market or our competition,” he added. “Its pricing strategy has appealed to the cost-
conscious and flagship-aspiring consumers in India who want to own the ‘best’ smartphone in
the market but at a competitive cost.” [5]
Page | 10
Socio-cultural Analysis
OnePlus’s prime focus is on the community and how people react and respond to its various
events and activities that it hosts. Their entire ecosystem is built around making the public
happy and providing solutions accordingly. They have analyzed the market and improved from
One Plus One till their latest iteration, i.e., One Plus 6T by varying marketing strategies.
They started manufacturing and advertising special limited edition for One Plus 3T, namely
Midnight Black and One Plus 5T limited edition Star Wars smartphone. They advertised
OnePlus 5T with the tagline “May the 4th be with you.” on May 4, 2017. Vikas Agrawal,
General Manager, India explained in an interview with AdAge India that they generally treat
success in terms of how the customers have responded to the activity or the product launched,
and then try to capture feedback through various channels. Getting 4+ average rating on online
portals made them sure that they are heading in the right direction and improved on customer
complaints. They faced and overcame two social challenges by selling online:
1. Is e-commerce a trusted enough channel or not?
2. Is OnePlus a trusted enough brand for customers to consider it?
To engage the public more, OnePlus has assigned OnePlus brand ambassadors in certain
colleges and host photo walks with students using their product, which is an educating event
in itself. Thus, they not only focus on promoting their products but have brand-building
advertising also. They have adopted Influencer ATL (Above the Line) advertising since
OnePlus 3, and have Mr. Amitabh Bachchan as their current worldwide brand ambassador.[11]
Technological Analysis
Six major challenges faced by OnePlus are as follows:
1. Design
The biggest fear that fans had, looking at the leaked renders for OnePlus 5 was it
looked exactly like iPhone 7 plus and even the antenna bands were positioned in
the exact same manner. The repercussions were so much that the CEO was worried
about sales backslash and went ahead and made the following claim on Twitter. [12]
Page | 11
Figure 6
Tweet by Carl Pei
Figure 7
OnePlus 5 and iPhone 7 Design comparison
2. Camera
OnePlus tried to match the top competition but never really beat them. The portrait
mode on their devices (which was first seen on iPhone 7) was mostly a hit and miss.
A similar disappointment is the optical zoom feature which was supposed to give
‘lossless’ zoom up to 2x, as claimed, but that doesn’t happened either. [12]
Page | 12
Figure 8
OnePlus 5 and iPhone 7 Design comparison
3. Benchmarks
Developers at XDA, who were handed a review unit, discovered that the OnePlus
5’s Operating System was tweaked specifically to boost performance in
benchmarks. What makes it worse for the company is that it appears to have applied
this hack specifically to review devices, which mostly includes most reviewers and
bloggers who help form an initial opinion of the device. The main problem here
though is that this isn't the first time the company's been caught cheating on
benchmark scores. Previously for OnePlus 3T, XDA Developers had caught the
company cheating on benchmarks when it built a mechanism into its OS that would
check if certain benchmark programs were running. This would then programme
the device to keep the cores of the phone clocked higher to achieve better scores.
Carl Pei did address the situation saying, “We have set the OnePlus 5 to run
benchmarks at a high-performance level that is both natural and sustainable for all
devices, media and consumer so that users can see the true potential of the device
when running resource intensive apps and games. At no point do we overclock the
CPU, nor do we set a CPU frequency floor.” While this attempts to improve the
brand image imply that the company did not overclock the review units, it does not
disprove the fact that the OnePlus 5 manipulated the benchmarks. [12]
Page | 13
4. Display
When the OnePlus 2 was launched in July 2015, a lot of users justified the use of a
full HD display panel on the phone, but two years down the line, a qHD screen has
become pretty much the norm for a flagship. While the likes of Samsung and LG
have gone a step further and managed to pack a larger screen with a taller aspect
ratio in the same footprint of the OnePlus 5. An improvement, however, was
expected on the OnePlus 3T. The company pretty much recycled the same panel for
the new flagship, albeit with better color reproduction owing to a new color profile
and a new 'screen calibration' feature. This isn't a major issue per se, but coming
from a company that claimed to "never settle", settling for the same display on 3
flagships in a row is pushing, when the company is made claims on how hard they
worked. [12]
Figure 9
AMOLED Display in OnePlus 5
5. Invite system and its discontinuation
Early iterations were available only through online invite to purchase it at irregular
intervals. The system was claimed to be necessary to manage huge demand. In
advance of the OnePlus 2 launch, OnePlus assured customers that obtaining invites
would be easier, and handsets would ship a lot quicker than with the OnePlus One.
However, in a public apology, Carl Pei admitted the company had "messed up" the
Page | 14
launch, and that OnePlus "only began shipping meaningful quantities [the week of
10 September 2015], nearly a month after the initial targeted shipping date."
However, they ended the invite system with the launch of OnePlus 3 on June 14,
2016. OnePlus 3 went on initial sale within the Virtual App itself, touting it as the
world’s first VR shopping experience. [13] [14]
6. One Plus 2 software update
Despite promising 24 months of software updates, and telling consumers that the
OnePlus 2 would be updated to Android 7 "Nougat", it was eventually confirmed
that this was not to happen, leaving the device on the older Android 6.0.1. [15]
Environmental Analysis
On 25 April 2014, OnePlus began its "Smash the Past" campaign. [16]
The promotion asked
selected participants to destroy their phones on video in an effort to purchase the OnePlus One
for $1 (US). Due to confusion, several videos were published by unselected users
misinterpreting the promotion and destroying their phones before the promotion start date. The
campaign was heavily criticized for environmental waste and safety concerns, due to batteries
and phone components posing potential hazards to participants destroying their phones. [17] [18]
Micro Environmental Analysis
Micro environment includes details about resources that are available to the company and how
it’s usage could impact the consumers, positively. In any company, these factors strongly
influence planning and executing the right business strategies. Our analysis discusses six key
factors that OnePlus is focusing on.
Target Market
To design marketing strategies and have increasing sales, understating the Market that the firm
is willing to cater and targeting them is extremely crucial. OnePlus, right from its penetration
into the Indian Market witnessed high potential in the buyers’ whose ages range from sixteen
to thirty-four. OnePlus has been specific about concentrating firmly on this category of
Page | 15
customers because they considered this set of market to be enthusiasts of technology. During
the launch of OnePlus 3, the brand established campaigns to explicitly target students and
working professionals. They ensured that they introduced OnePlus 3 to the market and
explained about it to them in a way that created a demand for the product among the consumers,
a few of their campaigns include photo walks[19]
, providing sponsorships to events like Comic
Con[20]
, recruiting a Campus Ambassador[21]
from various colleges across the country and
engaging with students, using social networking sites of celebrities with huge followers for
promotions, making the tech experts perform unboxing videos[22]
, several tests and upload on
YouTube etc. OnePlus reached every corner its potential customer was probable to go.
Distribution Channel
OnePlus while entering into the market, tread on the heels of a system called the Invite System.
Initially, it caused some confusion but later it was adopted by the consumers. There were two
reasons why OnePlus introduced the Invite System, while one reason was that the brand didn't
want to sell out entirely and keep its customers waiting, the second reason was that they didn't
want to produce too many phones and have them not sold leading the firm into losses. One
could only purchase a OnePlus phone if they had an Invite with them, also the invite was valid
only for a day which created urgency and desire to purchase the products from OnePlus. After
they witnessed success in the initial three phones they launched, OnePlus introduced OnePlus
3. It was the first product that the brand launched that did not follow the Invite System. The
product was available only on the Official Website of OnePlus and the Amazon Site. Though
the consumers did have complains about not being able to feel the phone before purchasing it,
OnePlus didn't change its strategy for very long. [23]
Suppliers
OnePlus 3 was manufactured in Shenzhen, China. It is considered one of the best places in the
world for developing hardware, due to its proximity with factories and suppliers of individual
products.
OnePlus takes its products through rigorous levels of testing, every change they implement
post testing the parts, they incorporate to the product and check it again. To do this with proper
regularity within less timeframe, Shenzhen was chosen to be the ideal location for
manufacturing the devices.
Page | 16
OnePlus has a lot of third-party companies manufacture various parts, for example the device
uses Samsung displays with Pentile-Matrix, Qualcomm manufactures the processor, and the
camera sensors are from Sony.[24]
Since the launch of ‘Make in India’ campaign by Mr.
Narendra Modi, OnePlus started to assemble their phones in Delhi, India from 2017 onwards.
Competitors
The OnePlus 3 device was strong enough to compete with the big players of the smartphone
industry, the devices which were launched into the market with a similar price bracket, offering
similar services at around the same time were Xiaomi Mi 5, LeEco Le Max 2, Samsung Galaxy
S7. [25]
To check which phone performs better and out beats which various tests were made on
the above-mentioned devices by digit. OnePlus stood out. It scored the maximum points in
industry tests like Antutu Benchmark, GFX Bench Car chase, Geekbench 3 Single Core. [26]
It
competed extremely hard, not with any other brand but with itself. OnePlus only tried to
innovate from product to product making the consumer build trust over the brand and
eventually fall in love with it.
Customers
OnePlus has tapped its customers, by innovating in a way that satisfies their necessities and
demands. By doing so, OnePlus has developed a strikingly loyal customer base in India. The
smartphone company is working extensively to attract new customers and retain the existing
ones. The trust that customers have on OnePlus also, has been exponentially increasing. 1
Million Units of OnePlus 5 and OnePlus 5T were sold in about three months whereas OnePlus
6 only took 22 days to achieve the milestone. It replicates that OnePlus is making its mark in
the smartphone industry inevitably. [27]
Current Target and Marketing Mix
OnePlus initially targeted smartphone markets in Europe, China and the United States in early
2014 and entered into the Indian smartphone market in December 2014. Even though OnePlus
had no market presence in India back in early 2014, India was one of the top seven countries
when it came to generating website traffic.
Page | 17
The customary target market of OnePlus comprises of users who fall in the age bracket of 14
to 35 years which has been further divided into two sub-age groups. Teenagers and people in
their early 20s are usually tech-savvy and the purchasing power among young Indians is on the
rise. Teenagers can be considered to be one of the major target groups of OnePlus. Adults
falling in the age bracket of 26 to 35 years form OnePlus’ largest target market as they have
the financial resources and can potentially purchase the smartphone. OnePlus smartphones are
catered towards anyone who is an avid technology enthusiast.
Majority of the users are concerned about the company’s reputation. Hence, initially the focus
was on developing brand awareness within the existing smartphone market by launching
campaigns (OnePlus has partnered with White Rivers Media to launch PAN India campaign to
reach across to the millennial audience), promotions in association with Avengers and Star
Wars to launch limited edition smartphones, invite only purchasing system and influencer
marketing (OnePlus has got superstar Amitabh Bachchan[28]
to reinforce its flagship product
OnePlus3T’s claim of being the highest rated smartphone on amazon). It also ventured into
capturing youth’s attention by launching a campaign on Snapchat to further increase their
base.[29]
Figure 10
OnePlus 3T Brand Ambassador
Page | 18
Marketing Mix (Product, Price, Place, Promotion)
Product
OnePlus 3 has integrated exceptionally good hardware with their oxygen OS to provide
premium looking smartphone which is built to last. This smartphone meets the needs of
OnePlus’ diverse target market as it had the then latest and greatest of specifications for the
tech-savvy segment (had also launched X series phones for design enthusiasts), an
exceptionally good camera, and an easy to use interface so that anyone and everyone is able to
the use this smartphone.[30]
Price
OnePlus 3 smartphone is priced surprisingly low (Rs 28000 at the time of launch) considering
the specifications and the quality of hardware it offers as compared to their competitors.
OnePlus 3 is priced at approximately half of what the flagships from Apple and Samsung retail
for. The target segment of OnePlus are people who are not willing to or cannot purchase
flagship smartphones which are priced exorbitantly (north of 800$). OnePlus caters to the needs
of these people. [7]
They kept on increasing their price at small increments each year as the
popularity grew exponentially.
Table 2
Pricing of OnePlus Products
Product Price in ₹
OnePlus One 25,999
OnePlus 2 28,999
OnePlus X 18,999
OnePlus 3 27,999
OnePlus 3T 30,999
OnePlus 5 32,999
OnePlus 5T 35,999
OnePlus 6 40,999
OnePlus 6T 45,999
Page | 19
Place
OnePlus smartphones can only be purchased online and are sold exclusively on amazon.
OnePlus 3, which was the company’s 4th
smartphone was made available to the consumers on
14th
June 2016 and was available for purchase only through amazon. Selling on online platforms
is beneficial for the business as it helps in cutting costs associated with intermediaries and the
trust and credibility issues concerning ecommerce has been reducing. One Plus 5 onwards they
have started to sell through offline partner Croma and their exclusive store based out of M. G.
Road, Bangalore.[31]
Promotion
OnePlus 3, the 4th
edition to the OnePlus family was promoted by word of mouth (as it is with
the previous generation OnePlus devices), launching limited edition (such as the midnight
black), a different variant of the same phone such as the OnePlus 3T Midnight Black, using
social media and youtuber reviews as the majority of the technology savvy population look
over youtuber reviews to find out about the product in depth. Further collaborations and
associations with Marvel and Disney to promote and produce the limited editions OnePlus 5T
and the recently launched OnePlus 6 has further helped in the company’s expansion. Rather
than plastering shops with advertisements, OnePlus has appointed student ambassadors to
promote the Shenzhen based company’s products.[11]
SWOT Analysis
OnePlus 3 was company’s first ‘metal unibody’ phone. The phone was well regarded amongst
critics, mostly for its low price and high specifications.
The company is positioning itself as the flagship brand to be reckoned with in Indian market.
It has targeted the mid segment of the Indian population as we all know the middle-class
population is more in India than in any other country. According to the stats from IDC One
plus was number one in the premium segment market in India.
Page | 20
Strengths
• Low cost smart phone with High Specs, one plus is growing as one of the fastest
growing companies exclusively partnering with Amazon. It sold out 30,000 phones
within 64 seconds.
• The new design includes USB Type-C port which is new to the market and has a
capability to charge a dead battery to 60 % within half an hour, touted as Dash Charge.
• It has a side switch like iPhone to switch to silent.
• They have also come up with new strategy which sets them apart from other
competitors with the new Operating System named Oxygen OS which is their biggest
strength.
Their proposition is to make future mobiles with all specification at a very low price which
attracts the customers to buy the product. [32]
Weakness
• The One Plus 3 weakness was the storage capacity. They had a storage capacity of 64
GB and was not expandable. Two variants in a year and the second one is updated
version for the first.
• The repairing cost (Screen replacement) is very high as the company earns a very small
margin on that. Limited production capacity (Playing safe).
They now offer variants with 128 GB and 256 GB that overcomes the storage issue.
Opportunities
One plus captures 48% of market share in India but when we see on a whole they are yet to
penetrate Global market completely. Their main share is from East Asia and second is from
USA, third is from India. One Plus can launch newer phones that can compete with other big
market players like Samsung and Apple which will help to increase the visibility of the brand
in the market. [33]
Page | 21
Threats
The mobile phone market is intensively growing, and it is getting price competitive which
makes it very difficult to survive in the industry. Less secure in terms of security is concerned.
For E.g.- There is a face recognition system and there are ways to hack it by putting a photo in
front of it to open your lock.
Recommendations
We have the following two recommendations for OnePlus to further expand and get hold of
larger market share across electronics.
1. OnePlus should penetrate into offline sales more in the Indian market and thus should
open more exclusive experience stores in major cities. The reason is that India being a
huge country, most of the people don’t buy via online channels very often. Elderly
people are still comfortable buying from physical stores and thus this potential market
is lost. OnePlus would see a significant increase in their sales if they start selling via
offline stores more, the way Xiaomi did.
2. OnePlus should further penetrate into producing following electronics and excel on it.
Since these are the electronics where competition is not there in the way OnePlus
places their strategies: High quality products at competitive price.
• Tablets
• Smart TVs
• Cheaper Phones like One Plus X
• Smart Watches
• Audio wearables
Thus, they could build an entire OnePlus ecosystem like Apple and Google have
done. This way OnePlus could retain even more their loyal customers and lure more
people to get into their ecosystem and use more products.
Page | 22
Conclusions
One plus has done intense research before entering the market and with Chinese political
support they came into market by launching very economical mobile where everyone can
afford. They have used the help of social media and linked with one of the leading E-commerce
website Amazon for their product launch.
Trust is a major factor in India, particularly with regards to internet business which has as of
late observed nationwide acknowledgment. What's more, it must be noticed that kindred
Chinese cell phone producer Xiaomi, which additionally entered India at generally a similar
time ran with homegrown web-based business site Flipkart as a component of its dispatch
methodology.
In 2014, OnePlus as a brand name was obscure to the overall public. However, the market had
been examined enough that it justified taking a gander at a differential way to deal with brand-
building. The promoting group at OnePlus stayed unconvinced that the site just offering model
would work in a nation as assorted as India. Enter Amazon India, which had additionally begun
a year prior in June 2013.
"Amazon had worldwide clout and nearness, something the homegrown internet business
locales needed. Also, they were beginning in India like Amazon, India. We took a gander at
the cell phone showcase in India and every one of the brands were publicizing crosswise over
stages – Flipkart, Snapdeal and so forth. The locales did not claim on the selectiveness,
premium cell phone front, something OnePlus demands."
Because of this mix of a worldwide nearness, trust, and dependability factor OnePlus turned
into the main portable brand to solely dispatch on Amazon India at the time and from it never
looked back.
As their sales increased year on year, they have penetrated the offline market as well, since
2017, and are on the lookout to focus even more on India. They have plans to open up their
second R & D center in Bangalore, India soon.
Page | 23
References
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8. Discussing the Interesting Trends in OnePlus' Marketing Strategy. (n.d.). Retrieved
from https://www.linkedin.com/pulse/discussing-interesting-trends-oneplus-
marketing-nivedit-majumdar/
9. Rosenstein, A. (2018, June 12). How OnePlus One's Marketing Strategy Made it So
Desirable. Retrieved November 06, 2018, from https://thenextweb.com/market-
intelligence/2015/03/17/how-oneplus-ones-marketing-made-it-the-most-desirable-
phone-in-the-world/
10. Rao, R. (2015, December 04). It's raining lawsuits in India: Micromax and OnePlus
face off in battle of the Cyanogens. Retrieved from https://www.zdnet.com/article/its-
raining-lawsuits-now-micromax-and-oneplus-faceoff-in-battle-of-the-cyanogens/
11. Ad Age Homepage - Ad Age. (n.d.). Retrieved from
http://www.adageindia.in/interviews/cmo-interviews/oneplus-challenge-is-what-e-
commerce-in-india-is-also-struggling-with-vikas-agarwal-
explains/articleshow/62109438.cms
12. OnePlus 5: Five controversies surrounding the budget flagship- Technology News,
Firstpost. (2017, June 26). Retrieved from https://www.firstpost.com/tech/news-
analysis/oneplus-5-five-controversies-surrounding-the-budget-flagship-3834981.html
13. Carl. (n.d.). Retrieved from
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y-for-the-delay-guys.362497/
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phones/oneplus-admits-it-messed-up-the-oneplus-2-launch-1304055
15. Carlon, K. (2017, June 10). OnePlus finally confirms no Nougat update for the
OnePlus 2. Retrieved from https://www.androidauthority.com/oneplus-confirms-no-
android-nougat-update-oneplus-2-779029/amp/
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16. Want the OnePlus One for $1? (n.d.). Retrieved from
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smashings/
18. Smith, C. (2014, April 25). Warning: You really shouldn't smash your phone for a
OnePlus One just yet. Retrieved from https://bgr.com/2014/04/25/oneplus-one-smash-
contest/
19. Aditi Rao Hydari on Instagram: "Vintage romance. On @vogueindia #May 2018
issue #ShotOnOnePlus6 Photographed by: @errikosandreouphoto Styled by:..."
(n.d.). Retrieved from https://www.instagram.com/p/BieXmDJBgun/
20. Online, F. (2017, December 02). Bengaluru Comic Con event: Are you OnePlus 5T
lover? And, fan of Star Wars too? Here is big news for you! Retrieved
from https://www.financialexpress.com/industry/technology/bengaluru-comic-con-
event-are-you-oneplus-5t-lover-and-fan-of-star-wars-too-here-is-big-news-for-
you/957947/
21. Student Ambassador Program. (n.d.). Retrieved from https://www.oneplus.in/campus
22. Fukrey, W. T. (2018, May 26). Ashish Chanchlani Unboxing Oneplus 6 | Avengers
Edition. Retrieved from https://www.youtube.com/watch?v=Bs_ahWTwXeA
23. OnePlus to target growth from offline stores in India; to set up R&D centre. (2018,
August 02). Retrieved
from https://economictimes.indiatimes.com/tech/hardware/oneplus-to-target-growth-
from-offline-stores-in-india-to-set-up-rd-centre/articleshow/65246106.cms
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24. Jonnalagadda, H. (2018, August 31). OnePlus factory tour: An inside look at how the
OnePlus 6 is made. Retrieved from https://www.androidcentral.com/oneplus-factory-
tour-see-how-oneplus-6-manufactured
25. Simhan, R. (2018, July 31). OnePlus beats Samsung, Apple to lead India's premium
smartphone league. Retrieved from https://www.thehindubusinessline.com/info-
tech/oneplus-beats-samsung-apple/article24566009.ece
26. Singh, H. S. (2016, June 16). OnePlus 3 vs Competition: Specs and Benchmark
comparison. Retrieved from https://www.digit.in/mobile-phones/oneplus-3-vs-
competition-specs-and-benchmarks-30669.html
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August 01). Retrieved
from https://economictimes.indiatimes.com/tech/hardware/oneplus-6-witnesses-
record-sale-of-one-million-units-in-22-days-in-india/articleshow/65222617.cms
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the path to success. (2017, March 29). Retrieved
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bringing-in-a-celebrity-endorsement-paves-the-path-to-
success/articleshow/57872205.cms
29. W. (2018, April 27). OnePlus kick-starts a Snapchat campaign to promote its latest
launch - ET BrandEquity. Retrieved
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kick-starts-a-snapchat-campaign-to-promote-its-latest-launch/63939316
30. Online, F. (2016, April 11). How to market differently: A lesson or two from
OnePlus. Retrieved from https://www.financialexpress.com/industry/how-to-market-
differently-a-lesson-or-two-from-oneplus/235217/
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31. How OnePlus India Plans To Leverage 'Never Settle' To Build A Premium O2O
Smartphone Experience For Indian Users. (2017, July 18). Retrieved
from https://inc42.com/startups/chinas-oneplus-india-smartphone/
32. Rothman, W. (2018). OnePlus 3 Review: Why Pay $700 When a $400 Smartphone
Can Do It All? [online] WSJ. Available at: https://www.wsj.com/articles/oneplus-3-
review-why-pay-700-when-a-400-smartphone-can-do-it-all-1466169485 [Accessed 3
Nov. 2018].
33. India Today. (2018). OnePlus 6 sales make OnePlus top brand in Indian premium
phone market, it now has 40 per cent share. [online] Available at:
https://www.indiatoday.in/technology/news/story/oneplus-6-sales-make-oneplus-top-
brand-in-indian-premium-phone-market-it-now-has-40-per-cent-share-1301198-2018-
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Marketing - One Plus Report

  • 1. 11/9/2018 One Plus 3 Understanding Markets and Consumers Report Mayank Agrawal JINDAL GLOBAL BUSINESS SCHOOL, 2018
  • 2. Page | 1 A REPORT ON: ONE PLUS 3 Submitted to: Dr. Renu Emile In partial fulfilment of the requirement of the Understanding Markets and Consumers Course By: Mayank Agrawal On: November 09, 2018
  • 3. Page | 2 Letter of Transmittal November 09, 2018 Dr. Renu Emile Associate Professor Understanding Markets and Consumers Department of Business Administration Jindal Global Business School Subject: One Plus 3 Marketing Report Dear Ma’am As per the guidelines provided by you during the classroom discussion and course outline, we hereby submit a report on the case titled ‘One Plus 3’. This report has been prepared after going through the entire case and carefully scrutinizing the facts and assumptions, while linking it to respective analysis as appropriate. The report contains the relevant facts in the introduction, problem statement and list of possible alternatives and best action plan to be implemented. Kindly evaluate the same and provide your valuable inputs. Thank you so much. Best Regards, Mayank Agrawal Jindal Global Business School
  • 4. Page | 3 Table of Contents List of Illustrations S.No. Contents Page No. 1 Introduction 5 2 Initial Marketing Strategy used 7 3 Macro Analysis 10 3.1 Legal Analysis 10 3.2 Economical Analysis 10 3.3 Socio-Cultural Analyis 11 3.4 Technological Analysis 11 3.5 Environmental Analysis 15 4 Micro Analysis 15 4.1 Target Market 15 4.2 Distribution Channel 16 4.3 Suppliers 16 4.4 Competitors 17 4.5 Customers 17 5 Current Target and Marketing Mix 17 6 SWOT Analysis 20 7 Recommendations 22 8 Conclusions 23 9 References 24 S.No. Contents Page No. 1 Figure 1 - One Plus Products Line up Image 6 2 Table 1 - Unveiled date and International Release of One Plus products 6 3 Figure 2 - oneplus.net Incoming website visits 7 4 Figure 3 - One Plus traffic share to the website from different countries 8 5 Figure 4 - One Plus traffic share to the website through different mediums 8 6 Figure 5 - One Plus advertisements 9 7 Figure 6 - Tweet by Carl Pei 12 8 Figure 7 - OnePlus 5 and iPhone 7 Design comparison 12 9 Figure 8 - OnePlus 5 and iPhone 7 Design comparison 13 10 Figure 9 - AMOLED Display in OnePlus 5 14 11 Figure 10 - OnePlus 3T Brand Ambassador 18 12 Table 2 - Pricing of OnePlus Products 19
  • 5. Page | 4 Introduction One Plus was founded on 16 December 2013 by ex-employees of OPPO Electronics, Pete Lau and Carl Pei. The company is based out of Shenzhen, Guangdong, China and has a presence in 34 countries worldwide. One Plus is a subsidiary of OPPO, which is, in turn, owned by BBK Electronics.[1] Thus, it's a sub-brand of a sub-brand. The company's main goal was to design a smartphone that would balance high-end quality product with a lower price than other phones in its class, believing that users would "Never Settle" (Chinese: 不将就) for the lower-quality devices produced by other companies and be the “Muji of the tech industry”, referring to the Japanese lifestyle brand’s simple products and high build quality.[2] Lau explained that "We will never be different just for the sake of being different. Everything done has to improve the actual user experience in day-to-day use." The company unveiled its first device, the OnePlus One, on 23 April 2014.[3] One Plus initially targeted the niche market, as they called them, due to various restrictions that they had, and since they were just starting up. This niche market mostly comprised of tech enthusiasts and developers, since they needed an Android device that provided them with the flexibility to play around with the software whilst using its hardware to the full potential. Their popularity grew as it impressed this niche market and in-turn grabbed the attention of the global market. They targeted sales of 50,000 units to be sold for One Plus One but ended up selling more than 1 mil+ units at the end of 2014 fiscal year. The company’s anticipation was surpassed at each and every point as they introduced new smartphones every year. They followed a strategy of referral marketing at the start of their journey and continued to do so till their 3rd iteration of the smartphone, namely One Plus 3.[4] In the analysis, we discuss and analyze at various strategies that forced them to change their marketing strategy from referral to Influencer marketing.
  • 6. Page | 5 The saga of brand OnePlus in India includes more than just one or two great phones. It's a story of near flawless execution and Zen-like focus. The success of OnePlus in the Indian market has been due to its relentless focus on delivering the best possible phone at prices that are quite affordable. Then, there is its focus on clean software and feature rich OxygenOS, something that OnePlus CEO Pete Lau calls Android Plus.[6] Oneplus product line up is shown below with their respective M.R.P. at the time of launch. Figure 1 One Plus Products Line up Image[7] Table 1 Unveiled date and International Release of One Plus products Product Code Name Unveiled Date International Release OnePlus One Bacon 23 April 2014 6 June 2014 OnePlus 2 Oneplus 2 27 July 2015 11 August 2015 OnePlus X Onyx 29 October 2015 5 November 2015 OnePlus 3 Oneplus 3 14 June 2016 14 June 2016 OnePlus 3T Oneplus 3T 15 November 2016 28 November 2016 OnePlus 5 Cheeseburger 20 June 2017 27 June 2017 OnePlus 5T Dumpling 16 November 2017 21 November 2017 OnePlus 6 Enchilada 16 May 2018 22 May 2018 OnePlus 6T Fajita 29 October 2018 6 November 2018
  • 7. Page | 6 One Plus has been selling exclusively through online portal Amazon.in till 2015 and on its own website https://www.oneplus.in in India. From 2016 onwards they decided to open their own dedicated experience store in M.G. Road, Bangalore and partner up with Chroma electronics to facilitate offline sales of the phone as well. Thus, the company has evolved to a global level and is competing with the top players in the premium smartphone segment while maintaining their quality standards. We discuss about their journey from One Plus One to their latest iteration and how One Plus 3 was a game changer in terms of their marketing strategies. Initial Marketing Strategy Used It was a new company that manged to dominate the market in a very short amount of time, an impressive feat accomplished largely due to clever marketing plan. The demand for invite-only smartphone (till 2015) was so great that the traffic to their website skyrocketed to around 25.6 million visits in December 2014 – just after one year OnePlus was launched. Figure 2 oneplus.net Incoming website visits
  • 8. Page | 7 Figure 3 One Plus traffic share to the website from different countries Figure 4 One Plus traffic share to the website through different mediums The company aimed at two most basic human fundamentals through their marketing campaigns: curiosity and anticipation. All in all, they followed one key motto: do things differently [8] , which is evident in the unorthodox approaches it took.
  • 9. Page | 8 Their (initial) marketing strategy focuses on the following three main elements: 1. Their phones are relatively cheap with best specifications available in the market. They produce flagship killers at a fraction of their competition price. 2. It was invite-only, creating the craze and buzz among young enthusiast buyers appealing to basic human nature: we always want what we can’t have. This technique also adds on to the product value of being exclusive only. 3. Educated and instilled within public of it being a niche product with the reputation of being the ideal phone for technology enthusiasts.[9] The success of these campaigns is evident from figure 4 graph which shows the maximum traffic generated by direct traffic, referrals and the search among other mediums available. Figure 5 illustrates some of the examples of their effective advertisements that it ran, taking a dig at their competition with fun. These ads were clean, crisp, concise and minimalist. Figure 5 One Plus advertisements
  • 10. Page | 9 Macro and Micro Analysis Macro Analysis – PESTEL Analysis Legal Analysis On December 17, 2014 Micromax filed a lawsuit against OnePlus against the use of Cyanogen software being used as the main operating system in their Android devices. Micromax had the exclusive rights to use Cyanogen OS in South Asia, and OnePlus violated their exclusivity. The problem arose because Cyanogen signed a non-exclusive global agreement( barring China but including India) with OnePlus many months ago. Micromax claimed that their agreement supersedes the one with OnePlus. "Your client [Cyanogen] did not show fairness to either Micromax or Shenzhen. If this is how you want to proceed, that is wrong," said the Delhi High Court to Cyanogen's legal counsel. As a result, it forced OnePlus to opt for Oxygen OS and drop Cyanogen completely out of their ecosystem.[10] Economical Analysis Acquiring 40 % of India’s premium smartphone market in June, 2018 comparing with zero when it arrived in 2014 says a lot about their product and brand positioning in the Indian market beating Samsung Electronics Co. with 34 % market share and Apple Inc’s 14 % share, which were the leaders in the premium smartphone markets for almost a decade. With huge competition from brands foreign and local, India is one of the most fiercely competitive smartphone markets in the world. Of OnePlus’ $1.4 billion of revenue last year, as much as a third came from India. “The premium smartphone segment may be small, but buying power among young Indians is surging and will create a huge opportunity by 2020,” Lau said in an interview with Bloomberg. The company lags behind companies such as Samsung, Vivo, and Oppo in the non-premium market. “We try not to be overly distracted by what’s going on in the market or our competition,” he added. “Its pricing strategy has appealed to the cost- conscious and flagship-aspiring consumers in India who want to own the ‘best’ smartphone in the market but at a competitive cost.” [5]
  • 11. Page | 10 Socio-cultural Analysis OnePlus’s prime focus is on the community and how people react and respond to its various events and activities that it hosts. Their entire ecosystem is built around making the public happy and providing solutions accordingly. They have analyzed the market and improved from One Plus One till their latest iteration, i.e., One Plus 6T by varying marketing strategies. They started manufacturing and advertising special limited edition for One Plus 3T, namely Midnight Black and One Plus 5T limited edition Star Wars smartphone. They advertised OnePlus 5T with the tagline “May the 4th be with you.” on May 4, 2017. Vikas Agrawal, General Manager, India explained in an interview with AdAge India that they generally treat success in terms of how the customers have responded to the activity or the product launched, and then try to capture feedback through various channels. Getting 4+ average rating on online portals made them sure that they are heading in the right direction and improved on customer complaints. They faced and overcame two social challenges by selling online: 1. Is e-commerce a trusted enough channel or not? 2. Is OnePlus a trusted enough brand for customers to consider it? To engage the public more, OnePlus has assigned OnePlus brand ambassadors in certain colleges and host photo walks with students using their product, which is an educating event in itself. Thus, they not only focus on promoting their products but have brand-building advertising also. They have adopted Influencer ATL (Above the Line) advertising since OnePlus 3, and have Mr. Amitabh Bachchan as their current worldwide brand ambassador.[11] Technological Analysis Six major challenges faced by OnePlus are as follows: 1. Design The biggest fear that fans had, looking at the leaked renders for OnePlus 5 was it looked exactly like iPhone 7 plus and even the antenna bands were positioned in the exact same manner. The repercussions were so much that the CEO was worried about sales backslash and went ahead and made the following claim on Twitter. [12]
  • 12. Page | 11 Figure 6 Tweet by Carl Pei Figure 7 OnePlus 5 and iPhone 7 Design comparison 2. Camera OnePlus tried to match the top competition but never really beat them. The portrait mode on their devices (which was first seen on iPhone 7) was mostly a hit and miss. A similar disappointment is the optical zoom feature which was supposed to give ‘lossless’ zoom up to 2x, as claimed, but that doesn’t happened either. [12]
  • 13. Page | 12 Figure 8 OnePlus 5 and iPhone 7 Design comparison 3. Benchmarks Developers at XDA, who were handed a review unit, discovered that the OnePlus 5’s Operating System was tweaked specifically to boost performance in benchmarks. What makes it worse for the company is that it appears to have applied this hack specifically to review devices, which mostly includes most reviewers and bloggers who help form an initial opinion of the device. The main problem here though is that this isn't the first time the company's been caught cheating on benchmark scores. Previously for OnePlus 3T, XDA Developers had caught the company cheating on benchmarks when it built a mechanism into its OS that would check if certain benchmark programs were running. This would then programme the device to keep the cores of the phone clocked higher to achieve better scores. Carl Pei did address the situation saying, “We have set the OnePlus 5 to run benchmarks at a high-performance level that is both natural and sustainable for all devices, media and consumer so that users can see the true potential of the device when running resource intensive apps and games. At no point do we overclock the CPU, nor do we set a CPU frequency floor.” While this attempts to improve the brand image imply that the company did not overclock the review units, it does not disprove the fact that the OnePlus 5 manipulated the benchmarks. [12]
  • 14. Page | 13 4. Display When the OnePlus 2 was launched in July 2015, a lot of users justified the use of a full HD display panel on the phone, but two years down the line, a qHD screen has become pretty much the norm for a flagship. While the likes of Samsung and LG have gone a step further and managed to pack a larger screen with a taller aspect ratio in the same footprint of the OnePlus 5. An improvement, however, was expected on the OnePlus 3T. The company pretty much recycled the same panel for the new flagship, albeit with better color reproduction owing to a new color profile and a new 'screen calibration' feature. This isn't a major issue per se, but coming from a company that claimed to "never settle", settling for the same display on 3 flagships in a row is pushing, when the company is made claims on how hard they worked. [12] Figure 9 AMOLED Display in OnePlus 5 5. Invite system and its discontinuation Early iterations were available only through online invite to purchase it at irregular intervals. The system was claimed to be necessary to manage huge demand. In advance of the OnePlus 2 launch, OnePlus assured customers that obtaining invites would be easier, and handsets would ship a lot quicker than with the OnePlus One. However, in a public apology, Carl Pei admitted the company had "messed up" the
  • 15. Page | 14 launch, and that OnePlus "only began shipping meaningful quantities [the week of 10 September 2015], nearly a month after the initial targeted shipping date." However, they ended the invite system with the launch of OnePlus 3 on June 14, 2016. OnePlus 3 went on initial sale within the Virtual App itself, touting it as the world’s first VR shopping experience. [13] [14] 6. One Plus 2 software update Despite promising 24 months of software updates, and telling consumers that the OnePlus 2 would be updated to Android 7 "Nougat", it was eventually confirmed that this was not to happen, leaving the device on the older Android 6.0.1. [15] Environmental Analysis On 25 April 2014, OnePlus began its "Smash the Past" campaign. [16] The promotion asked selected participants to destroy their phones on video in an effort to purchase the OnePlus One for $1 (US). Due to confusion, several videos were published by unselected users misinterpreting the promotion and destroying their phones before the promotion start date. The campaign was heavily criticized for environmental waste and safety concerns, due to batteries and phone components posing potential hazards to participants destroying their phones. [17] [18] Micro Environmental Analysis Micro environment includes details about resources that are available to the company and how it’s usage could impact the consumers, positively. In any company, these factors strongly influence planning and executing the right business strategies. Our analysis discusses six key factors that OnePlus is focusing on. Target Market To design marketing strategies and have increasing sales, understating the Market that the firm is willing to cater and targeting them is extremely crucial. OnePlus, right from its penetration into the Indian Market witnessed high potential in the buyers’ whose ages range from sixteen to thirty-four. OnePlus has been specific about concentrating firmly on this category of
  • 16. Page | 15 customers because they considered this set of market to be enthusiasts of technology. During the launch of OnePlus 3, the brand established campaigns to explicitly target students and working professionals. They ensured that they introduced OnePlus 3 to the market and explained about it to them in a way that created a demand for the product among the consumers, a few of their campaigns include photo walks[19] , providing sponsorships to events like Comic Con[20] , recruiting a Campus Ambassador[21] from various colleges across the country and engaging with students, using social networking sites of celebrities with huge followers for promotions, making the tech experts perform unboxing videos[22] , several tests and upload on YouTube etc. OnePlus reached every corner its potential customer was probable to go. Distribution Channel OnePlus while entering into the market, tread on the heels of a system called the Invite System. Initially, it caused some confusion but later it was adopted by the consumers. There were two reasons why OnePlus introduced the Invite System, while one reason was that the brand didn't want to sell out entirely and keep its customers waiting, the second reason was that they didn't want to produce too many phones and have them not sold leading the firm into losses. One could only purchase a OnePlus phone if they had an Invite with them, also the invite was valid only for a day which created urgency and desire to purchase the products from OnePlus. After they witnessed success in the initial three phones they launched, OnePlus introduced OnePlus 3. It was the first product that the brand launched that did not follow the Invite System. The product was available only on the Official Website of OnePlus and the Amazon Site. Though the consumers did have complains about not being able to feel the phone before purchasing it, OnePlus didn't change its strategy for very long. [23] Suppliers OnePlus 3 was manufactured in Shenzhen, China. It is considered one of the best places in the world for developing hardware, due to its proximity with factories and suppliers of individual products. OnePlus takes its products through rigorous levels of testing, every change they implement post testing the parts, they incorporate to the product and check it again. To do this with proper regularity within less timeframe, Shenzhen was chosen to be the ideal location for manufacturing the devices.
  • 17. Page | 16 OnePlus has a lot of third-party companies manufacture various parts, for example the device uses Samsung displays with Pentile-Matrix, Qualcomm manufactures the processor, and the camera sensors are from Sony.[24] Since the launch of ‘Make in India’ campaign by Mr. Narendra Modi, OnePlus started to assemble their phones in Delhi, India from 2017 onwards. Competitors The OnePlus 3 device was strong enough to compete with the big players of the smartphone industry, the devices which were launched into the market with a similar price bracket, offering similar services at around the same time were Xiaomi Mi 5, LeEco Le Max 2, Samsung Galaxy S7. [25] To check which phone performs better and out beats which various tests were made on the above-mentioned devices by digit. OnePlus stood out. It scored the maximum points in industry tests like Antutu Benchmark, GFX Bench Car chase, Geekbench 3 Single Core. [26] It competed extremely hard, not with any other brand but with itself. OnePlus only tried to innovate from product to product making the consumer build trust over the brand and eventually fall in love with it. Customers OnePlus has tapped its customers, by innovating in a way that satisfies their necessities and demands. By doing so, OnePlus has developed a strikingly loyal customer base in India. The smartphone company is working extensively to attract new customers and retain the existing ones. The trust that customers have on OnePlus also, has been exponentially increasing. 1 Million Units of OnePlus 5 and OnePlus 5T were sold in about three months whereas OnePlus 6 only took 22 days to achieve the milestone. It replicates that OnePlus is making its mark in the smartphone industry inevitably. [27] Current Target and Marketing Mix OnePlus initially targeted smartphone markets in Europe, China and the United States in early 2014 and entered into the Indian smartphone market in December 2014. Even though OnePlus had no market presence in India back in early 2014, India was one of the top seven countries when it came to generating website traffic.
  • 18. Page | 17 The customary target market of OnePlus comprises of users who fall in the age bracket of 14 to 35 years which has been further divided into two sub-age groups. Teenagers and people in their early 20s are usually tech-savvy and the purchasing power among young Indians is on the rise. Teenagers can be considered to be one of the major target groups of OnePlus. Adults falling in the age bracket of 26 to 35 years form OnePlus’ largest target market as they have the financial resources and can potentially purchase the smartphone. OnePlus smartphones are catered towards anyone who is an avid technology enthusiast. Majority of the users are concerned about the company’s reputation. Hence, initially the focus was on developing brand awareness within the existing smartphone market by launching campaigns (OnePlus has partnered with White Rivers Media to launch PAN India campaign to reach across to the millennial audience), promotions in association with Avengers and Star Wars to launch limited edition smartphones, invite only purchasing system and influencer marketing (OnePlus has got superstar Amitabh Bachchan[28] to reinforce its flagship product OnePlus3T’s claim of being the highest rated smartphone on amazon). It also ventured into capturing youth’s attention by launching a campaign on Snapchat to further increase their base.[29] Figure 10 OnePlus 3T Brand Ambassador
  • 19. Page | 18 Marketing Mix (Product, Price, Place, Promotion) Product OnePlus 3 has integrated exceptionally good hardware with their oxygen OS to provide premium looking smartphone which is built to last. This smartphone meets the needs of OnePlus’ diverse target market as it had the then latest and greatest of specifications for the tech-savvy segment (had also launched X series phones for design enthusiasts), an exceptionally good camera, and an easy to use interface so that anyone and everyone is able to the use this smartphone.[30] Price OnePlus 3 smartphone is priced surprisingly low (Rs 28000 at the time of launch) considering the specifications and the quality of hardware it offers as compared to their competitors. OnePlus 3 is priced at approximately half of what the flagships from Apple and Samsung retail for. The target segment of OnePlus are people who are not willing to or cannot purchase flagship smartphones which are priced exorbitantly (north of 800$). OnePlus caters to the needs of these people. [7] They kept on increasing their price at small increments each year as the popularity grew exponentially. Table 2 Pricing of OnePlus Products Product Price in ₹ OnePlus One 25,999 OnePlus 2 28,999 OnePlus X 18,999 OnePlus 3 27,999 OnePlus 3T 30,999 OnePlus 5 32,999 OnePlus 5T 35,999 OnePlus 6 40,999 OnePlus 6T 45,999
  • 20. Page | 19 Place OnePlus smartphones can only be purchased online and are sold exclusively on amazon. OnePlus 3, which was the company’s 4th smartphone was made available to the consumers on 14th June 2016 and was available for purchase only through amazon. Selling on online platforms is beneficial for the business as it helps in cutting costs associated with intermediaries and the trust and credibility issues concerning ecommerce has been reducing. One Plus 5 onwards they have started to sell through offline partner Croma and their exclusive store based out of M. G. Road, Bangalore.[31] Promotion OnePlus 3, the 4th edition to the OnePlus family was promoted by word of mouth (as it is with the previous generation OnePlus devices), launching limited edition (such as the midnight black), a different variant of the same phone such as the OnePlus 3T Midnight Black, using social media and youtuber reviews as the majority of the technology savvy population look over youtuber reviews to find out about the product in depth. Further collaborations and associations with Marvel and Disney to promote and produce the limited editions OnePlus 5T and the recently launched OnePlus 6 has further helped in the company’s expansion. Rather than plastering shops with advertisements, OnePlus has appointed student ambassadors to promote the Shenzhen based company’s products.[11] SWOT Analysis OnePlus 3 was company’s first ‘metal unibody’ phone. The phone was well regarded amongst critics, mostly for its low price and high specifications. The company is positioning itself as the flagship brand to be reckoned with in Indian market. It has targeted the mid segment of the Indian population as we all know the middle-class population is more in India than in any other country. According to the stats from IDC One plus was number one in the premium segment market in India.
  • 21. Page | 20 Strengths • Low cost smart phone with High Specs, one plus is growing as one of the fastest growing companies exclusively partnering with Amazon. It sold out 30,000 phones within 64 seconds. • The new design includes USB Type-C port which is new to the market and has a capability to charge a dead battery to 60 % within half an hour, touted as Dash Charge. • It has a side switch like iPhone to switch to silent. • They have also come up with new strategy which sets them apart from other competitors with the new Operating System named Oxygen OS which is their biggest strength. Their proposition is to make future mobiles with all specification at a very low price which attracts the customers to buy the product. [32] Weakness • The One Plus 3 weakness was the storage capacity. They had a storage capacity of 64 GB and was not expandable. Two variants in a year and the second one is updated version for the first. • The repairing cost (Screen replacement) is very high as the company earns a very small margin on that. Limited production capacity (Playing safe). They now offer variants with 128 GB and 256 GB that overcomes the storage issue. Opportunities One plus captures 48% of market share in India but when we see on a whole they are yet to penetrate Global market completely. Their main share is from East Asia and second is from USA, third is from India. One Plus can launch newer phones that can compete with other big market players like Samsung and Apple which will help to increase the visibility of the brand in the market. [33]
  • 22. Page | 21 Threats The mobile phone market is intensively growing, and it is getting price competitive which makes it very difficult to survive in the industry. Less secure in terms of security is concerned. For E.g.- There is a face recognition system and there are ways to hack it by putting a photo in front of it to open your lock. Recommendations We have the following two recommendations for OnePlus to further expand and get hold of larger market share across electronics. 1. OnePlus should penetrate into offline sales more in the Indian market and thus should open more exclusive experience stores in major cities. The reason is that India being a huge country, most of the people don’t buy via online channels very often. Elderly people are still comfortable buying from physical stores and thus this potential market is lost. OnePlus would see a significant increase in their sales if they start selling via offline stores more, the way Xiaomi did. 2. OnePlus should further penetrate into producing following electronics and excel on it. Since these are the electronics where competition is not there in the way OnePlus places their strategies: High quality products at competitive price. • Tablets • Smart TVs • Cheaper Phones like One Plus X • Smart Watches • Audio wearables Thus, they could build an entire OnePlus ecosystem like Apple and Google have done. This way OnePlus could retain even more their loyal customers and lure more people to get into their ecosystem and use more products.
  • 23. Page | 22 Conclusions One plus has done intense research before entering the market and with Chinese political support they came into market by launching very economical mobile where everyone can afford. They have used the help of social media and linked with one of the leading E-commerce website Amazon for their product launch. Trust is a major factor in India, particularly with regards to internet business which has as of late observed nationwide acknowledgment. What's more, it must be noticed that kindred Chinese cell phone producer Xiaomi, which additionally entered India at generally a similar time ran with homegrown web-based business site Flipkart as a component of its dispatch methodology. In 2014, OnePlus as a brand name was obscure to the overall public. However, the market had been examined enough that it justified taking a gander at a differential way to deal with brand- building. The promoting group at OnePlus stayed unconvinced that the site just offering model would work in a nation as assorted as India. Enter Amazon India, which had additionally begun a year prior in June 2013. "Amazon had worldwide clout and nearness, something the homegrown internet business locales needed. Also, they were beginning in India like Amazon, India. We took a gander at the cell phone showcase in India and every one of the brands were publicizing crosswise over stages – Flipkart, Snapdeal and so forth. The locales did not claim on the selectiveness, premium cell phone front, something OnePlus demands." Because of this mix of a worldwide nearness, trust, and dependability factor OnePlus turned into the main portable brand to solely dispatch on Amazon India at the time and from it never looked back. As their sales increased year on year, they have penetrated the offline market as well, since 2017, and are on the lookout to focus even more on India. They have plans to open up their second R & D center in Bangalore, India soon.
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