Oppo & Vivo's Rs 2,200 crore marketing strategy to overtake Samsung in India

Oppo & Vivo's Rs 2,200 crore marketing strategy to overtake Samsung in India

Oppo and Vivo whose billboards lend colour to the Delhi Metro's beige interiors, would spend about Rs 2,200 crore on marketing this year, dwarfing spends by the Koreans and the Japanese. 

A back-of-the-envelope calculation shows that the war chest of the two brands, one of which lends its name to India's most watched sporting event, would exceed the marketing budget of Samsung, LG, Videocon and Sony. The proposed spend is part of a strategy that involves expansion of their sales network by 25%  through non-conventional stores, such as cellphone recharge and repair outlets, and consumer electronic stores. 

The tactic of the Chinese duo is aimed at overtaking market leader Samsung in the next one year in the Rs 6,000-20,000 smartphone segment, which accounts for 78% of the market. 

Three senior industry executives said these two smartphone makers have also approached several smaller cellphone stores, asking them to reduce their focus on Samsung smartphones, promising to compensate the potential loss of business. 

"Oppo-Vivo are focusing on volume sales, paying retailers upfront for prominent signages and branding for the next 1-2 years and even offering 5-10% more margin to retailers and shopfloor sales promoters," said a senior executive with a leading cellphone retail chain. 

"They are extremely aggressive on the outdoor sites of prestigious brands like Apple and Maruti," he said. The Oppo spokesperson, however, denied any plans of offering money to retailers to reduce Samsung sales and also did not confirm the marketing budget.