MM-1 Assignment
OnePlus: Selecting the Target Group
Submitted by: Group-10
MIT KUMAR YADAV - 2401410
BHUKYA ROHITH KUMAR - 2401420
N KARTHICK - 2401430
NAMITA - 2401440
REENA PRABHA M - 2401450
SIVA YOGITHA T - 2401460
YOGESH BHADAURIA - 2401470
After carefully reviewing the persona profiles of different segments, we have identified two
market segments that can be targeted for the following OnePlus product. The target groups are:
1. Social Teenager
2. Business Professionals
Reasons for Choosing Social Teenagers
The market size of social teenagers is around 20%, and they mainly belong to the age group of
13-17 years old. This age group is highly familiar with technology and trends and is often an
early adopter of new gadgets. This demographic is highly active on social media platforms.
Targeting this group can increase online engagement and word-of-mouth promotion, leveraging
social media platforms. This age group is often more price-sensitive but also seeks value.
Younger users are more likely to experiment with and adopt new technologies, making them an
ideal target for introducing new products and features.
Stakeholders Involved in the Buying Process
1. Social Teenagers are the users/influencers who will use the product for social media
and entertainment and initiate the buying proposal.
2. Parents are the Buyers/Deciders who actually make the purchase. The purchasing
power lies with the parents.
3. Friends, Classmates, Social networks, and Family are the influencers. They
influence the buying decision.
4. Retailers, Social Media Influencers, and Celebrities are influencers as teenagers
constantly try to stay in the trend and want to stand out among their peers.
Though parents have the purchasing power in the present situation of the Dual Income Single
Kid (DISK) model, parents tend to purchase what their child asks as compensation(gift) for not
spending time. In this way, the influence of teenagers is significantly high. Similarly, Teenagers
are highly influenced by their peer group and seek validation from them. So, if Oneplus
establishes itself in this segment, it can leverage word of mouth marketing and peer
recommendation and increase its market share.
Competition We Might Face Targeting Social Teenagers
OnePlus may come across several competitors who have already made a significant impact in
the social teen market when pursuing this market. These rivals have evolved their approaches
to meet youngsters' tastes and actions. Here are a few of the main rivals and the difficulties they
present:
1. Apple
Due to several important factors, Apple dominates the teenage market, particularly with its
iPhone series:
1. Brand Loyalty and Perception: Perceived as fashionable and status symbols by
teenagers
2. Ecosystem: Tech-savvy teenagers are drawn to the MacBooks' smooth integration with
Apple Watches, iPads, iPhones, and iPads.
3. iOS Platform: Young consumers favor iOS because they perceive it as secure and
user-friendly.
2. Samsung
Another big rival is Samsung, which has a large selection of smartphones at various price
ranges, including the mid-range market, which targets teens on a tight budget.
1. Diverse Product Line: Its Galaxy series offers competitively priced features, including
powerful processors, quick charging, and high-quality cameras.
2. Brand Recognition: a prominent player in the teenage market because of its reputation
for innovation and cutting-edge technology.
3. Xiaomi
1. Xiaomi has increased its market share significantly by providing high-end smartphones
at affordable costs.
2. It is renowned for offering top-notch functionality and performance at reasonable costs,
essential for teens concerned about their budgets.
3. It employs aggressive marketing strategies to target the teenage market, such as
utilizing internet platforms and social media influencers.
4. Oppo and Vivo
Particularly in Asia, these brands have significantly increased their market share among
teenagers.
1. Teenagers who place a high value on social media and photography are drawn to
smartphones from Oppo and Vivo, frequently recognized for their exceptional camera
capabilities.
2. These companies prioritize creating slick, fashionable looks that appeal to a younger
market.
5. Realme
Teenagers are rapidly adopting Realme, a relatively recent newcomer.
1. Realme provides smartphones at meager costs with amazing specs.
2. Realme targets the teenage demographic by using influencer marketing and social
media to significant effect.
Factors on which Oneplus should work:
1. Brand positioning: In a crowded market where Apple and Samsung still sway, OnePlus
must stand out by balancing price and premium appeal.
2. Price Sensitivity: Even while OnePlus is renowned for producing high-quality goods, it
must ensure its prices consider teens' limited budgets, who depend on parental
assistance for large purchases.
3. Innovation and Features: To be current and appealing to teenagers, OnePlus must
continuously innovate, especially in light of competitors like Xiaomi and Realme, who
often release new features.
4. Marketing and Outreach: To effectively reach and engage teenagers, OnePlus needs
to invest in strong marketing efforts that use social media channels and influencers.
Consumer buying behavior of social Teenagers towards smartphones:
Various factors shape teenage consumer behavior, especially in the digital age when these
individuals are exposed to the latest technologies from a young age in their daily routines. Since
they have young minds, they can be influenced by the following:
1. Peer Influence: Friends and Social Circles own or endorse a particular smartphone
brand, which can increase the likelihood of others in the group considering the same
brand. They want to look trendy and updated with new technologies and aesthetically
designed smartphones.
2. Research-Driven Purchasing: Teenagers are thorough researchers, often relying on
online reviews, comparison websites, and tech forums to gather information before
purchasing. They frequently watch unboxing videos, reviews, and tech demonstrations
on YouTube. Influencers play a significant role in shaping their opinions and preferences.
3. Price Sensitivity: Teenagers often depend on their parents for significant purchases,
making them price-sensitive. They need to justify the cost and benefits to their parents
that offer the best features and performance within an affordable price range.
4. Brand Perception: Teenagers are driven by brand perception among their age groups.
Owning a famous brand can give them a sense of belonging and status within their
social circles.
5. Feature Emphasis: High-performance gaming capabilities are crucial for many
teenagers. The ability to quickly recharge their devices is a significant factor. Features
like fast charging are particularly appealing as they cater to their fast-paced lifestyle.
Teenagers are keen on capturing high-quality photos and videos for social media.
Superior camera performance is a significant selling point.
By understanding these factors, brands like OnePlus can tailor their marketing strategies to
effectively reach and resonate with the teenage demographic, offering products that align with
their preferences, lifestyles, and values.
Does it align with the past position?
Targeting the Social Teenager aligns with the past position of the product. Oneplus has
positioned itself as delivering high-quality smartphones that are user friendly with an affordable
price point. As Social Teenagers are price sensitive, it aligns with the past position. Teenagers
value sleek designs and aesthetics, and Oneplus can appeal to them. OnePlus majorly used
Social Media, Guerilla Marketing, and Influencer Marketing as their marketing strategies, and
these strategies align well with Social Teenagers as they are voracious users of digital
platforms.
Reasons for Choosing Business Professionals
The reason for Choosing Business Professionals is:
a) 30% Market Share( Highest Compared to other Audience)
b) High Purchasing Power- These people are not tech enthusiasts; they don't jump on the
next best thing. They see devices as productivity tools and like devices that are secure
and well-constructed. As working-class people, they have the purchasing capacity to
spend $550 for a new phone, given the phone provides the value these guys are looking
for.
In the next segment, OnePlus phones might encounter competition from various well-known
brands:
1. Samsung is well-known for its excellent displays, advanced camera technology, and wide
range of features, maintaining a strong presence in the smartphone market with its Galaxy S
and Note series.
2. Apple's iPhone has a loyal following due to its seamless connectivity with other Apple
products and regular software updates, positioning it as a significant competitor. The company's
focus on privacy and security also draws in many users.
3. Google offers a pure Android experience, prompt updates, impressive camera features, and
unique attributes such as integration with Google Assistant through its Pixel series.
4. Xiaomi is renowned for providing high-quality devices at competitive prices, appealing to
cost-conscious consumers without compromising performance and innovative features.
5. Despite difficulties in specific markets, Huawei remains committed to innovation in its flagship
models, incorporating cutting-edge camera technology, robust processors, and durable build
quality.
6. In the BBK Electronics family, Oppo and Vivo, alongside OnePlus, are formidable
competitors, emphasizing camera technology, quick charging, and sleek designs.
7. Realme, another brand under BBK Electronics, delivers feature-rich smartphones at
competitive price points, targeting the mid-range and budget segments.
These rivals present challenges to OnePlus in terms of innovation, price competitiveness, brand
loyalty, and market share. To maintain its lead, OnePlus must continue to leverage its strengths,
such as performance, software experience, and community engagement, while also exploring
new features and technologies to set itself apart in the market.
Customer Buying Behavior
1. Uses Smartphone as a Productivity Tool for managing Emails and staying in contact with
clients and Business associates.- Need a Good Performance/ Multitasking Device.
2. Think entertainment on mobile devices is a waste of Time.
3. Needs devices that are Secure and Well Constructed.
4. Not Very Active on Facebook and Instagram but on professional sites like Linkedin.
5. Not very enthusiastic about Latest Technology.
6. HiLike Microsoft Products.
7. It doesn’t use YouTube, but it uses Skype and WebEx. Display quality is required.
8. Read Industry Specific Journals.- Need a Good and Big Display
Stakeholders involved in the Buying Process:
The purchasing process for corporate professionals involves a variety of parties to ensure that
devices meet the organization's needs and provide value:
1. IT Department: Assesses technical specifications, compatibility, and security features.
2. Procurement Team: Handles negotiation, procurement, and logistics.
3. Finance Department: Manages the budget and evaluates cost-effectiveness.
4. End Users: Contribute feedback on usability and performance.
5. Senior Management: Gives final approval based on recommendations.
6. Vendors and Suppliers: Provide product information, demonstrations, and post-purchase
support. These parties align device selections with strategic objectives, budget limitations, and
user needs.
Does it align with the past position?
Targeting the Social Teenager aligns with the past position of the product. Business
professionals want reliable, practical tools that enable them to work effectively and multitask.
They value features like long-lasting batteries and simple connections. Business professionals
typically work in good positions in organizations in the age range of 30 to 50. So their high
income demonstrates good financial stability. So, they enjoy spending money on electronic
devices that help improve work and time management, as they work under high pressure and
challenging circumstances. This category prefers products that are secure and manufactured by
trusted brands.
Which Segment Should OnePlus Target?
Introduction
In this assignment we are looking into the OnePlus case. OnePlus after starting out well are now looking
where and how they can ensure company growth. OnePlus needs to find the perfect segments to cater to in
order to achieve and sustain growth. We are discussing the various challenges they might face with respect
to different segments and also trying to come out with the segments that might work out for them.
The Tech Enthusiasts
The tech enthusiasts constitute 15% of the total market share. They use mobile phones to influence others
and evangelize new technologies. They are willing to pay a premium for high-quality devices, often around
$700. Many of them are in technical jobs or are tech content creators, staying updated with the latest
technological trends.
Targeting this segment might seem advantageous because of their willingness and ability to pay for high-
end devices. However, there are significant challenges:
1. Constant Technological Upgrades: Tech enthusiasts demand the latest technology, requiring frequent
updates and innovations. This can be an expensive and resource-intensive task.
2. High Specifications: They need devices with high specifications, which can be difficult and costly to
maintain within OnePlus's price positioning.
Given these factors, targeting the tech enthusiast segment may not be the best choice for OnePlus.
The Design Enthusiasts
Design enthusiasts also represent 15% of the market. They are aged between 24-38 and prioritize the
aesthetics and feel of the phone over its technical specifications. Willing to spend up to $600 on a
smartphone, they view their devices as status symbols reflecting their taste and aesthetics.
While this segment has high purchasing power and a preference for premium products, OnePlus faces
challenges in targeting them:
1. Brand Loyalty: Design enthusiasts often associate design excellence with established brands like Apple,
making it difficult for OnePlus to penetrate this market.
2. Evolving Trends: Keeping up with rapidly changing design trends can be resource-intensive and may
impact OnePlus's pricing strategy.
3. Social Media Perception: Platforms like Twitter highlight posts made from iPhones, reinforcing the status
symbol aspect. OnePlus, being an Android brand, may find it challenging to compete in this regard.
Therefore, targeting the design enthusiasts segment may not be effective for Oneplus.
Social Teenagers
Social teenagers account for 20% of the total market share and are aged between 13 to 17 years. They use
mobile phones primarily for entertainment, social connections, and status among peers. However, they
depend on their parents for purchases, who are typically willing to spend around $400 on a smartphone.
This segment presents several challenges:
1. Purchasing Power: Teenagers lack the financial means to buy high-end smartphones independently.
2. Dual Targeting: OnePlus would need to appeal to both teenagers and their parents, complicating
marketing strategies.
3. Feature Requirements: Teenagers demand phones with extensive social media features and high-quality
cameras, which can be expensive to provide.
Thus, targeting the social teenager segment may not be effective for OnePlus.
The Baby Boomers
Baby boomers make up 20% of the market and are aged 50 and above. They use mobile phones primarily
to stay connected with family and friends and are typically willing to spend around $400 on a smartphone.
Challenges in targeting this segment include:
1. Low Interest in Technology: Many baby boomers prefer feature phones over smartphones and are
generally less interested in new technology.
2. Limited Willingness to Pay: Their willingness to pay for a smartphone is relatively low.
3. Buying Hesitancy: The process of purchasing and adapting to a new smartphone can be daunting for
them.
Therefore, targeting the baby boomer segment may not be beneficial for OnePlus.
The Business Professionals
Business professionals represent the largest segment at 30% of the market share. They are aged between 28
to 50 years and require smartphones to manage their work efficiently. They are willing to pay around $550,
which aligns with OnePlus’s pricing.
Targeting this segment is advantageous for several reasons:
1. Functional Needs: Business professionals prioritize functionality and reliability over the latest
technology.
2. Moderate Specifications: They do not require high-end social media features or top-tier cameras, aligning
well with OnePlus’s offerings.
3. Willingness and Ability to Pay: They have the financial means and willingness to purchase a new
smartphone.
Conclusion
Given their focus on productivity and functionality, business professionals are the most suitable segment
for OnePlus to target. They represent a substantial market with the right balance of needs and purchasing
power, making them an ideal choice for OnePlus’s strategic focus.
Team members -
Aman Pal 2401409
Bani Bienvenu Massar 2401419
Jai Mehta 2401429
Naman Patil 2401439
Rathod Rutvik Manoj 2401449
Siddharth H 2401459
Vishal Baisoya 2401469
MM-1 Assignment
One Plus: Selecting Target Groups
Group - 4
Section F
ADITYA PRAKASH - 2401404
ANURAG KUMAR - 2401414
DHWANI A - 2401424
KUNAMI HANSDA - 2401434
PETKAR PRANAV RAVINDRA - 2401444
SAURABH PRAKHAR - 2401454
SRISHTI SAHU - 2410464
We have decided to target business professionals and teenagers for the
launch of One Plus upcoming models.
Business Professionals:
Business Professionals have a market size of 30%, and their intentions
with the product and the budget they seek are similar to what One Plus is
offering. The price range that this segment expects is similar and higher
than what One Plus prices its products at. Owing to this fact, we could price
our product so that bulk products can be bought. It is a new demographic
that One Plus has not yet catered to, so this segment has much potential.
We can target new companies that are starting or companies that
predominantly use Android OS and require smartphones for their
employees. We will first approach the tech enthusiasts using the phones
and ask them to do word-of-mouth marketing for some credit. We could
also directly approach the decision makers in all the B2B organizations and
pitch our product, emphasizing productivity, e-mail, and client satisfaction
and discussing the security features that could be brought into the phones
through updates.
The 30% of the market that the business professional segment includes is
a highly profitable segment and could be a segment that One Plus can
target as it is something they have not done before and is something that
can be targeted for expansion of market demographics of the company.
DMP for One Plus:
Users:
Enthusiasts from two age groups 14-25 (teenage to early adults and those
ages 26-35 (adults). Also a very wide range of persona profiles like
Technology enthusiasts, The design enthusiasts, Business professionals,
Social teenagers and old aged.
Influencers:
Influencing factor is different for different characters as:
Tech enthusiasts are influenced by latest technology advancements and
to own it before their respective peers.
Design enthusiasts are highly influenced by visually appealing designs
and status symbols and want to own the latest and beautiful design before
their peers.
Business professionals focused more on their respective business
productivity and devices well constructed and secure hence, they are
influenced by devices rather than any peers.
Social teenagers are highly influenced by their peers and surroundings
and had to have the latest version of smartphone.
Old age people are not obsessed with smartphones and hence nothing
can influence them.
Buyers:
Buyers for every persona is different and hence as follows:
Tech enthusiasts are usually people around the age group of young adults
to middle age and hence can afford to buy their own devices.
Design enthusiasts are usually around the age group of young adults to
people in their 40 and 50s and hence can afford to buy on their own.
Business professionals are people usually in the age of adults and hence
can afford to buy top-to-of-the-line smartphones. If provided by an
organization, reimbursing employees for smartphones involves several vital
departments: Finance, Human Resources, Information Technology, and
top-level Management.
Social teenagers do not work and hence their respective parents and
guardians bought purchase devices for them.
Old age people are close to or already retired so they can afford and
purchase by themselves or by their next of kin.
Deciders:
Tech enthusiasts own their decisions and choose their brand preference.
Design enthusiasts also choose their own brand.
Business professionals either choose their own brand or sometimes
suggested by organization.
Social teenagers are influenced by social media or peers or their
respective parents and guardians decide on behalf of them.
Old age people do not know much about technology so they are either
advised by their next of kin or the store salesman.
Gatekeepers:
Other competitors like Apple and Samsung pitching their products as
superior and managers who are favorable to their requests.
Social Teenager:
For the social teenager segment, which is 20% of the total market share.
Users from this segment are of digital age social networks are important,
e.g., Snapchat, Instagram, YouTube, [Link] spend up to 6 hours daily
consuming media. They quickly get bored with mobiles and want their
parents to purchase the latest one. Also, willingness to pay from this sector
was $400.
One Plus heavily relied on social media to generate awareness & drive
demand. The company's social media strategy focuses on the same
platforms used by this segment. Hence it is easy to position the one plus
product in this segment.
Also, willingness to pay from the sector is $400 & products, i.e., one plus
one, one plus two & one plus X, are in that range. ($349,$389 & $249
resp.)
Oneplus Crossing The Chasm In The Smartphone Market Case Study Analysis
Bargaining Power of Supplier:
The supplier in the Taiwanese Oneplus Crossing The Chasm In The Smartphone Market sector has a low
bargaining power despite the fact that the sector has dominance of 3 gamers consisting of Powerchip,
Nanya as well as ProMOS. Oneplus Crossing The Chasm In The Smartphone Market makers are mere
original tools suppliers in tactical alliances with foreign gamers for technology. The second reason for a
low negotiating power is the truth that there is excess supply of Oneplus Crossing The Chasm In The
Smartphone Market devices as a result of the big scale production of these dominant industry players
which has lowered the rate each as well as raised the bargaining power of the purchaser.
Threat of Substitutes & Degree of Rivalry:
The threat of alternatives in the market is high offered the truth that Taiwanese suppliers compete with
market share with global gamers like Intel, Motorola, IBM, Hitachi, NEC, Toshiba, Samsung and Fujitsu.
This suggests that the marketplace has a high level of competition where makers that have design and
advancement abilities along with manufacturing proficiency might be able to have a greater bargaining
power over the marketplace.
Bargaining Power of Buyer:
The marketplace is dominated by gamers like Micron, Elpida, Samsung and also Hynix which better
minimize the buying powers of Taiwanese OEMs. The truth that these critical gamers do not enable the
Taiwanese OEMs to have access to technology shows that they have a greater negotiating power
relatively.
Threat of Entry:
Risks of entrance in the Oneplus Crossing The Chasm In The Smartphone Market production industry are
reduced owing to the reality that structure wafer fabs and purchasing equipment is very [Link]
simply 30,000 devices a month the funding requirements can vary from $ 500 million to $2.5 billion
depending upon the dimension of the units. In addition to this, the manufacturing needed to be in the
latest technology and there for new gamers would certainly not have the ability to compete with dominant
Oneplus Crossing The Chasm In The Smartphone Market OEMs (initial equipment manufacturers) in
Taiwan which were able to enjoy economic climates of range. The present market had a demand-supply
discrepancy as well as so surplus was already making it tough to allow new gamers to delight in high
margins.
Firm Strategy:
Given that Oneplus Crossing The Chasm In The Smartphone Market manufacturing makes use of
common processes and also typical and specialized Oneplus Crossing The Chasm In The Smartphone
Market are the only 2 groups of Oneplus Crossing The Chasm In The Smartphone Market being
produced, the procedures can easily make usage of mass production. While this has led to availability of
modern technology and also scale, there has actually been disequilibrium in the Oneplus Crossing The
Chasm In The Smartphone Market sector.
Threats & Opportunities in the External Setting
As per the internal and outside audits, possibilities such as strategicalliances with technology companions
or development with merging/ purchase can be explored by TMC. A step towards mobile memory is
likewise a possibility for TMC especially as this is a specific niche market. Risks can be seen in the kind of
over reliance on international players for technology and competition from the United States as well as
Japanese Oneplus Crossing The Chasm In The Smartphone Market producers.