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One plus
- 1. STRATEGIC EVALUATION OF “ONEPLUS” -GROUPNO.: 4 Ashna Mathews Sara Susan Sreedhu Nasiha PC
- 2. INTRODUCTION • Chinese smartphone manufacturer. • Founded on 16 December 2013. • Carl Pei and Pete Lau -former workers of OPPO • When it began operations, OnePlus had only 6 employees. • Cutting cost was a priority for the company early on – so opted to sell exclusively through online.
- 3. Carl Pei Director ofOnePlus Global Pete Lau CEO
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- 5. Motto • The company’smain goal was to design a smart phone that would balance high-end quality with a lower price than other phones in its class, believing that the users would “Never Settle” for the lower-quality devices produced by the company.
- 6. OnePlus – Introductioncontd. • First device – OnePlus One (2014) - Released through Amazon in India. • Emphasize its focus on high-quality products with simplistic, user-friendly designs. • Operates in 34 countries and regions all over the world.
- 7. OnePlus – Introductioncontd. • The company employed an unconventional invite-only system that limited buyers to those who had received an invite from the company directly or from someone who had already purchased the device • Low profit margin and online marketing strategy attributed for low prices
- 8. WHY IN INDIA? •Indian markets have changed and online market is huge. • Rapid demand for smartphones. • India is one of the top markets for OnePlus smart phones.
- 9. OnePlus Market inIndia • Ranked as the 3rd biggest seller of premium smart phone selling in India • Captured over 50% of the Indian smartphone market (2017). • OnePlus has 48% of market share of the premium online smartphone segment in India.
- 10. Operational plans inIndia • OnePlus plans to open stores in 10 Indian cities by the end of 2018. • With 10 service centres, the company looks to expand its service networks as well. • Offline presence increases customer trust and brand awareness. • Focus to increase its offline presence through Croma by entering into all its 100 stores across various Indian cities.
- 11. Target Audience • Target: 14-35years old, tech savvy, premium customers.
- 12. SEGMENTATION • OnePlus segmentgroups are separated by various number of variables. • Geographic Segmentation • Demographic Segmentation • Psychographic Segmentation. • Benefit Segmentation
- 13. Geographic Segmentation • companyis using REGIONAL APPROACH • to appeal to the local population and gain their respect and trust. Demographic Segmentation • OnePlus has Smartphone devices to appeal to all the age categories • It doesn’t box the users into categories based on age, gender or demographic. • Its target user is simply anyone who wants the best, those who don’t want to settle.
- 14. Psychographic Segmentation. • OnePlusOne indulges the tastes of nerd and geek people and other who are technology enthusiasts. • it is the first device from the company, which appeal to customers with various lifestyles. Benefit Segmentation • Among benefits OnePlus..it offered advanced hardware, pleasant design, great specifications, various number of applications for different needs and wants, low price makes this phone very attractive
- 15. Positioning strategy forOnePlus • ‘Never Settle’ • Branded itself as Beast • Most Economical Phone • Exclusivity • Segmented Consumers
- 16. SWOT ANALYSIS 1.STRENGTH • Lowcost smart phones with high specs • Rising as one of the fastest growing companies • Exclusive partnership with major e-tailers ..Amazon • Special android platform Oxygen OS is a big strength since it sets them apart from android users.
- 17. 2.WEAKNESS • Limited productioncapacity • New entrants • Highly competitive industry • Online sales may eliminate offline audience • OnePlus One has limited number of service Centers in India 3.OPPORTUNITIES • Broaden the geographic market base • Resort to mainstream product advertising • Diversifying Advertising 4.THREATS • New entrants selling equally competitive phones are lower prices • Change in Tastes • Distribution .
- 18. Competitor analysis • OnePluswas the fastest growing brand (+192%) in the segment capturing 25% of the share. • OnePlus has been maintaining its second spot in the premium segment which it is has been holding since Q3 2017.
- 20. • OnePlus 5Twas the best-selling model during the quarter, driven by its limited edition variant launch and expansion in the offline segment. • The highly anticipated OnePlus 6, is likely to cash in on the momentum built by the OnePlus 5T. • This year, the brand will expand its presence across multiple cities by opening new stores, enabling it to reach out to a larger user base.
- 21. CUSTOMERS’ RATING OFCOMPETITORS ON KEY SUCCESS FACTORS Customer Awarenes s Product Quality Price Design Performance & Specifications iPhone 5 5 1 5 4 Samsun g 5 4 2 3 5 Xiaomi 3 4 4 2 3 Nexus 3 5 5 2 5 Meizu 1 3 5 2 2 OnePlus 1 5 5 4 5 Noted: Very Excellent = 5, Excellent = 4, Good = 3, Fair = 2, Poor = 1
- 22. PRODUCT PORTFOLIO OnePlus OneOnePlus 2 OnePlus 3T
- 23. OnePlus X OnePlus5 Oneplus 5T OnePlus 6
- 24. Other products • OnePlusBullets Wireless • OnePlus Power Banks • Protective cases • OnePlus JCC Baseball cap • OnePlus JCC T-shirt • OnePlus travel Backpack
- 25. PLACE • As ofJuly 2018,OnePlus serves to 34 countries and regions. • Sale of products was initially through the online website of OnePlus alone. • OnePlus products were banned in India on 16th December 2014. • Customized version of android specially designed by OnePlus has been released, later allowing OnePlus to be sold in India.
- 26. OnePlus in India •The marketing team at OnePlus was unconvinced that the website-only selling model would work in a country as diverse in India. • Tie-up with AmazonIndia helped OnePlus sell over 20000 phones in no time. • They even came up with a unique strategy of allowing Ola and AirAsia customers to request for the phone just to experience it.
- 27. Offline Stores • Oneplusopened its first OnePlus experience store in January 2017 in Bangalore. • OnePlus has other offline stores in Pune, Mumbai, Chennai, Bangalore, New Delhi, Hyderabad,etc. • Oneplus has announced that it will be opening new 3 offline stores in India on july 28, 2018.
- 28. • The newstores: Bangalore, Mumbai,Kolkata. • Oneplus says Indian market is the biggest revenue contributor for it. • It made one third of company’s revenue in 2018. • In 2018, the company states that it will open over 10 new touchpoints in 10 key markets and also an R&D centre in india.
- 29. PRICING STRATEGIES • LOCATIONPRICING Oneplus has the lowest feasible price for its devices in each geographical market. • They only use class components and advanced chips in their high end value smart phones and they offer competitive pricing(40-50% lower than its competitors). • COMBO PRICING Clubbing of two or more products.
- 30. PROMOTIONAL STRATEGIES • ONLINESTRATEGIES 1.Invite system 2. Tie up with Amazon, Ola, AirAsia 3.Celebrity endorsement
- 31. • OFFLINE STRATEGIES 1.Theatrescreenings 2.Popup stores 3.Experience stores • FAILED CAMPAIGNS 1. Ladies first 2.Smash the past 3.KBC Rip off
- 32. FUNCTIONAL LEVEL STRATEGIES Efficiency 1)Partneringwith Amazon. 2)Perfect marketing toolbox for the digital era. 3)Transition to a mass-market brand. 4)Focus on offline footprint. 5) R&D centre in India. Customer Responsiveness 1)Partnering with Croma to access products offline. 2)Launch of ‘OnePlus Authorized Stores’ and expansion of ‘Experience Stores’ to new locations. 3)Pre launch and popup events for devices. Innovation 1)Two flagships a year with incremental improvements. 2)Technically brawn but intuitive and user- friendly. 3)OnePlus Communities and Forums. Quality 1) Inspection by hand followed by machine precision. 2)Post construction Quality assessment and tests for robustness. 4)Working with companies that align with OnePlus’s core values. Competitive Advantage: High end phone for a modest price
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- 34. Porter’s Five ForcesAnalysis of OnePlus Rivalry between competitors- HIGH Threat of new entrants- LOW Bargaining power of buyers-HIGH Threat of substitutes- LOW Bargaining power of suppliers- MODERATE
- 35. CONCLUSION • With thechanging market, OnePlus changes it’s functional strategies. • Sticks to it’s focused cost leadership strategy. • Never settles.
Editor's Notes
- #14 Geographic segmentation Segmentation on the basis of area ..cities,regions,country..internationally Demographic segmentation is market segmentation to age, race, religion, gender, family size, ethnicity, income, and education.
- #15 Psychographic segmentation market into segments based upon different personality traits, values, attitudes, interests, and lifestyles of consumers. By the new innovations ..it is the first device from the company, which appeal to customers with various lifestyles. Benefit segmentation market based upon the perceived value, benefit, or advantage consumers perceive that they receive from a product or service.
- #16 The customers’ perception about a brand relative to other competitive brands, based on various product attributes, positions a product in market company would strive for the best user experience and not rest till they have found it. often referred to as ‘The Beast’ due to its unparalleled configuration, which ensures smoother and faster performance. OnePlus One has the best features available when compared to phones priced in its range OnePlus One positioned itself apart from others by providing exclusivity by invitation-only mode of sale. targeted the technology savvy youth which is always hungry for more when it comes to performance
- #18 Distribution – The distribution for this phone is only online. The average consumer is still sceptical of purchasing expensive products like smartphones online. Competitors such as Micromax may take advantage of this by pushing their products through retailers.
- #22 OnePlus One, the company’s first phone, is designed to meet the demands of technology enthusiasts through high quality hardware and software, which is highly customizable. The most attractive feature is of course the price of the device. It is a unique feature that one can only buy the OnePlus One via online with an invitation.
- #35 Threat of new entrants-low-proprietory learning,high investment,distribution network,stiff resistance to new entrants Bargaining power of suppliers-MODERATE-
- #36 QUALCOMM SNAPDRAGON 845