Marketing Plan Case Study: VIVO S1 Smartphone Launch Strategy

This report presents a detailed marketing plan for VIVO's S1 smartphone, focusing on its launch strategy in Australia. It begins with an executive summary and table of contents, followed by an introduction outlining the report's objectives. The company profile covers VIVO's history, vision, and mission, emphasizing its focus on innovation and customer satisfaction. A comprehensive situational analysis includes PEST analysis (political, economic, social, and technological factors), and an internal analysis of employee, customer, competitor, and supplier issues. The SWOT analysis highlights the company's strengths, weaknesses, opportunities, and threats. Segmentation, targeting, and positioning strategies are discussed, along with marketing objectives and a description of the S1 product. The report outlines the marketing mix strategies for product, price, place, and promotion, followed by an implementation plan and conclusion. References are included to support the analysis.

Marketing Plan
Case study of VIVO
1
4

Executive summary
The report gives a detailed description of the company named VIVO. The company was
founded in the year 2009 in China. It is the Chinese technology company that is owned by
the BBK electronics that manufactures and designs Smartphone accessories, smartphones,
and various kinds of software that are sold in India. The organization also develops software
for its smartphones that are distributed through its vivo app store. It is an android based
operating system with manager included in its proprietary. The company has been expanded
over the 100 countries over the world.
This report would undertake market analysis, the findings of which would offer a base to
identify the threats and opportunities so that future scope of improvement and development
can be highlighted for the company. There are various smartphones series that is launched
by the company like Y series, V series, X series, NEX series. VIVO is going to launch a
new product S1 in Australia. A company is successful in capturing the market of the world
in a short span of time due to the moderate rates of smartphones along with a variety of
features in it. Vivo is one of the fastest growing mobile companies in India; the reason
behind it is it gets the sponsorship for the Indian Premier league by replacing the PepsiCo.
2
4

Table of Contents
Executive summary........................................................................................................................2
Introduction....................................................................................................................................5
Company Profile.............................................................................................................................5
Vision/Mission Statement..............................................................................................................6
Situational Analysis: External.......................................................................................................6
PEST Analysis............................................................................................................................6
Situational Analysis: Internal........................................................................................................8
Employee’s issues......................................................................................................................8
Customers issues........................................................................................................................8
Competitors issues.....................................................................................................................8
Suppliers issues..........................................................................................................................8
SWOT Analysis..............................................................................................................................9
Segmentation, targeting and positioning analysis.......................................................................9
Geographic................................................................................................................................10
Demographic............................................................................................................................10
Behavioural...............................................................................................................................10
Psychographics.........................................................................................................................10
Marketing Objective....................................................................................................................10
3
4

Description of the New Product..................................................................................................11
Marketing Mix strategy: Product...............................................................................................11
Marketing Mix Strategies: Price.................................................................................................11
Marketing Mix Strategy: Place...................................................................................................11
Marketing Mix Strategy: Promotion...........................................................................................12
Implementation Plan....................................................................................................................12
Conclusion....................................................................................................................................12
References.....................................................................................................................................13
4
4

Introduction
The main motive of this report is to highlight the status of the company, vision and mission
statement, external and internal situational analysis, and swot and pestle analysis of the
company named VIVO. The company has been regarded as one of the most valuable brands
of mobile all over the world. The company regularly tries to improve their products day by
day. The company is going to launch a new product S1 in Australia. The company is
investing the major funds in the improvement and development of the services and
technologies. The vivo customers are more satisfies with the product and its prices.
Company Profile
Vivo started its business of selling smartphones from the year 2012. As of 2014, the
company ranked at the 10th position in the selling smartphones globally. The sale volume for
the year 2015 was around 45 million worldwide. The production capacity of the company
annually is 60 million units. Around 20,000 people are employed by the company in the
production unit. There is a proper ecosystem maintained by the company from manufacturer
to hardware design, to the software developer. The technology named Pioneering is included
in all kinds of vivo phones ever since (Baganzi, et. al., 2017).
The loss of the company has been decreased and the revenue has just doubled in the last two
years. The strategy of the company is long term investment that will take years to show its
full impact but it will definitely make its position stronger in the world. The company is
planning to launch its products with proper planning for capturing the world market. The
company plans to hire the local executives so that they can easily understand the position o
the domestic markets. The current products of the company are V9, V15, V15pro, etc. The
new products the company is going to launch are Vivo S1, Vivo X27pro. The interesting
fact that company has is One plus, Oppo, Vivo have the same parent company, BBK
electronics (Xing and He, 2018).
5
4

Vision/Mission Statement
The company intends to bring innovations to their lives. The vision of the company is to
become more innovative with respect to smartphones all over the world. The company
thinks that technology is used for the good and it will help in making life better for everyone
(Silva, et. al., 2016).
The company main vision is to provide a better quality of the products at the cheap prices.
The company tries to keeps the customers close to the heart. The motive of the company is
customer’s satisfaction and timely delivery of the products (Bokhari, et. al., 2018).
The main mission of the company is building its brand value and become the creative leader
in terms of smartphones all over the world. The mission statement of the vivo is “perfect
selfie”. The company regularly works providing the best quality of smartphones to the
people at reasonable prices. The selfie camera of the vivo smartphone is very good. The
main focus of the company is on the quality of the camera. The quality of vivo phones
cameras is excellent in comparison to the other phones compared with the price
(Almunawar, et. al., 2018).
Situational Analysis: External
PEST Analysis
Political factors There are various kinds of political factors that have an impact on
the production of the company factors such as changing policies
with a change in government, regulatory practices, governance
system and political constancy in the existing markets. All such
factors have impacted the manufacturing of the S1. If the policies
of the government are favorable at the current time but with the
change in the government policies are also changed and if it
becomes unfavorable it is difficult for the company to launch its
products and to capture the market (Yu, 2017).
Economic factors There are various kinds of the economic factors that have an
impact on the products and demand of the products of the
company like inflation rate, economic cycle, buying powers of
the consumers, etc. if all conditions are favorable for the
company it is good. When a company is launching any particular
6
4

product such as vivo S1 it faces issues such as at the same time
another Smartphone company also launches its products. In this
case, there is a tough competition between both the companies
(Luceri, et. al., 2018).
Social factors There are various kinds of the social factors that impact the
growth of the company such as the growth of smartphones in the
rural areas is too difficult because people are not interested in the
buying the Smartphones, internet, etc. As in today's time,
Smartphone is the basic requirement of each and every
individual. If the cost of the product of the company is more,
poor people can't afford the product and due to this reason, the
sale of that particular smart phone will decrease. As all people
cant afford to buy S1 due to high prices (Graafstra, 2017).
Technological factors All smart phone companies are using advanced technology while
manufacturing the products. Updated technology is used by the
company in manufacturing of S1, to cope up with the competitors
and to capture the market. The technological issue faced by the
company in earlier years is that there were almost the same
features in all products irrespective of prices. So people do lie to
purchase the products (Yu, et. al., 2018).
7
4

Situational Analysis: Internal
Employee’s
issues
The main problem that employees face in the company is that company
layoff without providing any prior notice to the customers. There were
many problems that were faced by the employees because they were not
having any other job opportunities at that particular time period. After this
action, there was a clear statement given by the company in respect of this,
"With continuous growth and strategic review, the company is looking at
staffing the right size in various divisions to improve productivity.
Customers
issues
There are various issues that are faced by the customers with vivo
smartphones such as over-heating issues, wifi and Bluetooth errors, and lag
in the device. Overheating is the major problem faced by almost all
customers in the world (Reddy and Gopal, 2018).
Competitors
issues
There are various competitors of Vivo smartphones. The biggest threat that
any company is having is Samsung. As day by day vivo is capturing the
market in the world the sales of Samsung is slowing down. There is the
various marketing strategy of the famous companies that are adopted by
the vivo and this planning is helping the company in capturing the world
market (Xing, et. al., 2019).
Suppliers
issues
The major problem that suppliers are facing is of poor communication. Due
to the poor communication, information is not shared properly and this
creates various types of hurdles. Stressed supplier is also the main
problem as at a once suppliers deals with many organizations. Sometimes
orders are late delivered by the suppliers due to unavailability of products
(Zhang, et. al., 2017).
SWOT Analysis
Strength
It is innovating brand as it is launching S1
phone with HiFi chip.
The first company to launch a phone with
the HiFi chip. The company focuses mainly
on research and development.
Association with big sports event such as the
Indian Premier League.
Products are present in seven overseas
markets.
Weakness
There is no major difference in the products
of Vivo, Oppo, one plus, etc.
Company does not have any high kind of
brand awareness.
Poor post-sales support and S1 as it is
expensive every one can’t afford.
8
4

Opportunities
The company is having huge markets in
Europe and the United States.
The smartphones that are launched by the
Vivo come with a high end that competes
with the smartphones of Samsung and Apple.
The company should work more on the
tweaking its image with the launching of S1.
Threats
Competition in the market for S1.
Regulations of the local governments.
Increasing the price of raw materials.
Segmentation, targeting and positioning analysis
In simple words, segmentation means a division of the market place in terms of segments or
parts that are profitable, actionable, accessible and definable. The main motive behind the
segmentation is that, if the company is unable to handle the entire market due to cost, time
and various types of restrictions.
Geographic
Vivo has divided its market regionally that will help the company in understanding the
needs and wants of the customers. In case of geographic the company has chosen Australian
customers as Vivo is in high demand in the continent. The market is divided by the company
for launching S1.
Demographic
The markets are divided on the basis of the variables such as family cycles, age, occupation,
sex, etc. The vivo will keep the S1 within the reach of youngsters so that sales can be
increased. in the case of demographic section the company mainly focuses on the youth
because in today’s time youth is too much involved in smartphones.
9
4

Behavioral
In this, market is divided according to the behavior, needs, benefits, values, etc. Vivo offers
the best value for money product. The need of S1 is of high class people as it is not
affordable by everyone.
Psychographics
In this market is divided by the company on the basis of the lifestyle and values. The
company chooses the group of people like high societies for selling the costly smartphones.
Targeting Strategy
Generally targeting is done by the company to target the market to sale the particular
product. As Vivo is going to launch the S1 proper study is to be done for the situation
market. Proper analysis is done by the company for targeting the customers for increasing
the sales.
Positioning Strategy
Positioning generally helps in building the brand image of the company. The company has
positioning of the low pricing and high pricing specifications. As there are various models
of the company of every range for all types of customers. As S1 is not of all people, the
person who wants to invest high in mobile then S1 is best option for them.
Marketing Objective
The main aim of the company is to provide good quality of products along with services to
the customers. The motive of the company is to provide smartphones with the perfect selfie
that appeal to the youth. The vivo is trying to launch the product with the professional music
system with an excellent appearance that will provide a better experience to the customers.
The company adopts advanced technology in products (Shi, et. al., 2018).
10
4

The company invests huge funds in research and development so that products that are
manufactured by the Vivo will be of the best quality. In the year 2012, the company has
launched a new product with the HiFi chip that helps in providing the best audio experience
to the customers. After that, this feature of HiFi chip is included in all smartphones of vivo.
Due to this feature, the sales of the vivo smartphone was double and the revenue of the
company was also doubled (Almunawar, et. al., 2018).
Description of the New Product
The new product that vivo is going to launch is vivo S1. That particular smartphone is
having the octa-core processor with the display of 6.53inc. The mobile has a storage
capacity of 128 GB with the camera quality of 12 megapixels with the battery life of 3940
mah. The ram of mobile is of 6 GB with many other additional features in it. There are
various other sensors in this smart phone such as light sensor, proximity sensor,
accelerometer, gyroscope, and compass.
Budget of the new product
The company is going to spend around 4000 crore on the manufacturing of the smart phone
S1 that is going to be launched in Australia. It means VIVO is planning to invest around
4000 crore in Australia. The company is having many expectations from the Australian
market.
Marketing Mix strategy: Product
Vivo has launched so many smartphones all over the world in the last few years. In the year
2012, the smartphone named S1 was launched by the company with the special feature of
HiFi chip in it. This feature provides a world-class audio experience that has made the
reputation of the company and now vivo is one of among the 10 smartphone makers in the
world. Product was preferred by the many customers and also has the feature of the perfect
selfie that vivo always tries to provide to the customers. The company sells its products
online as well as in local markets all over the world (Wiggins, et. al., 2017).
11
4

Marketing Mix Strategies: Price
Generally, vivo provides the high quality of products at the affordable prices to the
customers. Vivo is known as the right pricing brand due to its affordable prices.
Competitive pricing strategy is used by the company in its marketing mix. If the price of
any Smartphone is high it is all because of a variety of features and camera quality. Instead
of the high prices of some products customers are convinced to buy the products of the vivo.
The service that is provided by the company is also excellent. The price of the vivo S1 is
quiet high there are lots of attractive features in it. The external factor that affects the price
of product is income of the customers and external factor that majorly affect the price of
product is time of completion of any particular project.
Marketing Mix Strategy: Place
After the registration, the company is being registered in more than 100 countries of the
world. Australia is the biggest markets for the vivo mobile apart from China. There are
various distributors that are appointed by the company to distribute their products in the
local markets. The main focus of the company is to make the product available at every
electronic outlet and mega stores. The Smartphone S1 will be available at all places online
as well as offline. The company is trying to sale their product through online websites. If the
product is sold offline then goods are sold to the distributors and after that it is given to
shopkeepers and from shopkeepers customers can purchase. This will help the company in
increasing its sales and customers will also get the chance to experience the mobile before
purchasing it (Zhang, et. al., 2017).
Marketing Mix Strategy: Promotion
Vivo is very proactive in promoting its brand by the way of advertising. The company is
spending lots of funds for the advertisement of the smart phone S1. There are various
marketing strategies that help in the promotion of the products of a particular brand.. There
is huge investment done by the company on advertising and promotion of the products. Vivo
has several tie-ups with various companies (Baganzi, et. al., 2017).
12
4

Implementation Plan
When any product is launched by the company time period is determined along with the
budget and staff. The time frame for the manufacturing of the product named S1 will take
three to four months in completion and budget allocated for the project is 10 million. The
total number of staff that will work on the project will be 1000 employees of the company.
Conclusion
There is various strength that company has is it is an innovating brand that is present in
seven overseas markets. The company is successful in capturing the markets of Europe and
the United States. The research and development department of the company is very
advanced as a company invests lots of funds on this side. The main aim of the company is to
provide excellent quality of goods with the special feature of perfect selfie in the products.
Vivo has done segmentation due to the increase in the demand for goods. It is concluded
from the above report that vivo is becoming famous day by day due to its quality and price
of the products. The projects that are launched by the company are visible and the company
is making continuous profits from the last 2-3 years. The revenue of the company has just
doubled due to the mission and vision of the vivo. The company is successful in achieving
its marketing objectives.
13
4

References
Almunawar, M.N., Anshari, M., Susanto, H. and Chen, C.K., 2018. How people choose and
use their Smartphones. In Management Strategies and Technology Fluidity in the Asian
Business Sector (pp. 235-252). IGI Global.
Baganzi, R., Shin, G.C. and Wu, S., 2017. Using Choice-Based Conjoint Analysis to
Determine Smartphone Choice-a Student’s Perspective. Journal of Information Technology
Applications & Management, 24(4), pp.93-115.
Bokhari, M.A., Alexander, B. and Wagner, M., 2018, November. In-vivo and offline
optimisation of energy use in the presence of small energy signals: A case study on a
popular Android library. In Proceedings of the 15th EAI International Conference on
Mobile and Ubiquitous Systems: Computing, Networking and Services (pp. 207-215). ACM.
Gómez-García, P.A., Brognara, G., Pratavieira, S. and Kurachi, C., 2016, April. DUAL
CONFIGURATION CLINICAL FLUORESCENCE MICROSCOPE FOR
SMARTPHONES. In Optics and the Brain (pp. JTu3A-41). Optical Society of America.
Graafstra, A., Dangerous Things LLC, 2017. In vivo identity and security application
implant and method. U.S. Patent Application 15/459,780.
Luceri, L., Cardoso, F., Papandrea, M., Giordano, S., Buwaya, J., Kundig, S., Angelopoulos,
C.M., Rolim, J., Zhao, Z., Carrera, J.L. and Braun, T., 2018. VIVO: A secure, privacy-
preserving, and real-time crowd-sensing framework for the Internet of Things. Pervasive
and Mobile Computing, 49, pp.126-138.
Mariakakis, A. and Patel, S., 2016, September. Ocular symptom detection using
smartphones. In Proceedings of the 2016 ACM international joint conference on pervasive
and ubiquitous computing: Adjunct (pp. 435-440). ACM.
14
4

Reddy, M.C. and Gopal, S., 2018. FACTORS INFLUENCING THE EFFECTIVE USE OF
SMART PHONES: A CASE OF RURAL AREAS IN ANDHRA PRADESH. International
Journal of Management Research and Reviews, 8(4), pp.9-22.
Shi, L., Shen, Y. and Min, W., 2018. Invited Article: Visualizing protein synthesis in mice
with in vivo labeling of deuterated amino acids using vibrational imaging. APL
Photonics, 3(9), p.092401.
Silva, E.J., Muniz, B.L., Carvalho, N.K., Sassone, L.M. and de Almeida Neves, A., 2016.
Electromagnetic interference of smartphones on apex locators: An in vivo study. ENDO
(Lond Engl), 10(3), pp.161-165.
Wiggins, B.G., Aliazis, K., Davies, S.P., Hirschfield, G., Lalor, P.F., Reynolds, G. and
Stamataki, Z., 2017. In Vitro and Ex Vivo Models to Study T Cell Migration Through the
Human Liver Parenchyma. In T-Cell Trafficking (pp. 195-214). Humana Press, New York,
NY.
Xing, H., Ren, C., Kong, Y., Ning, C., Kong, D., Zhang, Y., Zhao, D., Li, N., Wang, Z.,
Chen, X. and Lu, Y., 2019. Mechanistic study of absorption and first‐pass metabolism of
GL‐V9, a derivative of wogonin. Biopharmaceutics & drug disposition.
Xing, Y. and He, Y., 2018. Domestic Value Added of Chinese Brand Mobile Phones (No.
18-09). National Graduate Institute for Policy Studies.
Yu, T., 2017. The main applications of smart phones and their security in China.
Yu, X., Anaya, G.J., Miao, L., Lehto, X. and Wong, I.A., 2018. The impact of smartphones
on the family vacation experience. Journal of Travel Research, 57(5), pp.579-596.
Zhang, X., Kang, Y., Huo, T., Tao, R., Wang, X., Li, Z., Guo, Q. and Zhao, L., 2017. GL-
V9 induced upregulation and mitochondrial localization of NAG-1 associates with ROS
15
4

generation and cell death in hepatocellular carcinoma cells. Free Radical Biology and
Medicine, 112, pp.49-59.
16
4