Target Market, Competition and Marketing Mix Assignment

This assignment explores the target market, competition, and marketing mix strategy of Vivo mobile phones in India. It discusses the demographic, psychographic, and behavioral segmentation used by the company to target different customer segments. It also analyzes the competition faced by Vivo in the Indian market and the objectives and strategies of the marketing mix, including product strategy, pricing strategy, place/distribution strategy, and promotion strategy.

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Assignment 2- Target Market, Competition and Marketing Mix Assignment
3/19/2019

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Contents
Introduction......................................................................................................................................1
Target Market..................................................................................................................................2
Competition.....................................................................................................................................3
Objectives........................................................................................................................................4
Marketing mix.................................................................................................................................5
Product strategy...........................................................................................................................5
Pricing strategy............................................................................................................................7
Place/ Distribution strategy..........................................................................................................8
Promotion strategy.......................................................................................................................8
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

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Introduction
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.

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Target 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.
 Demographic segmentation: - Vivo Company targets the customers based on
demographic segmentation, which is done bases of income, age, gender, and many others
(Baker, 2014). The below given table show that company target different demographic
customers in the Indian Market according to their product model. In addition to this, the
company targets the people with middle to high-income group.
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

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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.
(Source: Economic Times, 2018)
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.

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Competition
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.
Objectives
 Increase market share: - Vivo company objective is to increase the market share by
10% in the Indian market in next one year that can be measured with the rise in sales of
company.
 Rise in manufacturing capacity: - Vivo is dealing with the tough a competitor in the
market due to which objective of the company is to improve the local manufacturing
capacity in India by opening manufacturing unit in next year (Mukherjee, 2018). This
will help the company to make their products easily available to the customers who order
it through the e-commerce platforms in the overseas market.

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Marketing mix
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.
Product strategy
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.

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(Source: Dutta & Pinto, 2017)
The above graph shows the data of the company and its related competitors that are present in
the market of India.
Product life cycle
The product life cycle is a new product evolution through a system of the phases from the
introduction, growth, maturity as well as decline (Išoraitė, 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.
(Source: Išoraitė, 2016)

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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.
Pricing strategy
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.

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Place/ Distribution strategy
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.
Promotion strategy
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.

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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.
(Source: Exchange 4 media, 2018)
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

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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.

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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.

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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.

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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.
Išoraitė, 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.