One Plus is a Chinese company founded by Carl Pei and Pete Lau. It was founded in the year 2013 and serves 34 countries around the world. In this blog, we will learn how this company has left behind giants like Apple and Samsung and captured the market. The main reason behind the success is satisfied customers as they were giving the best premium android phones at low prices.
When Carl Pei and Pete Lau left Oppo, they did not have a lot of funds for marketing. So they went for viral marketing strategy. They launched a campaign called SMASH THE PAST, where the customer had to smash their old premium smartphone and upload the video on Youtube. One plus advertised that it will give away their first phone one plus one to 100 such people for 1$. This contest went viral, thousands of people attempted this strategy worked very well for the company’s publicity and the term Flagship Killer was born, the positioning of One Plus was placed like a flagship killer in customer’s mind.
Below given points explain how One Plus deviated from vision and suffered. Three mistakes made by the founders which no entrepreneur should make and the deals that the company rejected, smart pricing strategy and its retail innovations and the process to get hockey stick growth in your business.
The Mission of One Plus
Mission of the company was to dominate premium smartphone market but they lost focus in 2015 when they launched One plus X, which was a budget phone and they wanted to sell budget phones but it failed and they learned a lesson that they should not lose their focus on their mission and they never launched a phone like one plus X.
They also followed the latest trends in marketing apart from traditional techniques, to know more amount One plus Digital Marketing strategy. Click on the below link
Best Learning advise from One Plus
The 6 Success mantras of One Plus are
1. Never depend on a few customers
In 2014 one plus was approached by a Chinese telecom company for a 90 million dollar deal but One Plus declined it as it focused on making a brand and wanted to reach more customers. If it accepts the deal, then they have to work only with that company and had to make products as a manufacturing unit but one plus focus was to reach more customers. If you want to establish a brand always focus on reaching more customers. The problem with having very few clients is that they take advantage of your business and ask for discounts, make late payments that hurt your business and we have to work according to the customers as you are dependent on them.
Business should always attract customers and should aim at satisfying the needs of customers apart from earning profits. If you are able to identify the needs and design your products as per their requirements, then success will automatically follow In order to have a better idea of how to understand the needs and start a business, click on the below link
2. Smart Pricing
Apart from earning the title of flagship killer after the contest, they also implemented a smart pricing strategy. In those days Samsung and Apple used to have expensive phones for 40-50k and others used to have budget phones ranging from 10-15 k and one plus captured a category of 25-30k where there was a vacuum in market. It made innovation to give top quality at low prices they did not open stores in mall as apple does but opened pop-up store where you can experience phone but can’t buy there and have to buy online. As there were no middlemen involved, the cost of the phone came down. They placed their phones next to Samsung premium phones in Tata’s retail chain Croma, so that the comparison of their phone will be with a high-end phone but not with Oppo or Vivo. One plus never gave any discounts on their phones. The reason is that it wants the customers to buy phone immediately on launch and should not think or wait that prices will drop in some time.
One more company which captured the market because of smart pricing was Reliance Jio which was successful because if its tariff. To know how vision of Mr.Mukesh Ambani and smart pricing helped in success of Reliance Jio Click on the below link
3. A Power team of professionals
One plus was banned in India for some time as it was sued by Micromax saying that the operating system Cyanogen which one plus was using was exclusively for Micromax.One plus lost the case and they later appointed Kapil Sibbal a very famous top lawyer and won the case and reentered the market, which shows that professional team is crucial for your success. Always keep top-quality professionals like doctors, lawyers, engineers, and architects and business coaches and don’t compromise on their quality. Try to invest in them even if you are not able to afford them during your initial stage the business as they help in long term benefit of the company.
4. Closer to the user
Apple and Samsung are ahead of One Plus in R&D. Samsung manufactures the screen of One Plus 7 Pro but still, the market share of One Plus is more than Samsung because they focus more on what customers want than R & D. This is also called as second-Mover advantage, where 2nd company takes the advantage and save costs in R&D. They believe that customer know more than their engineers’ team that’s why they focus on their community and listen to their needs and believe that their customers will only suggest what features the phone should have like fast charging, better built-in quality, quick gestures which One plus have implemented in their phone
Customers are the king of any organization and they make or break your business. To know how to focus on customers and market research helped the success of FOGG, click on the below link
As an entrepreneur, you should always understand your customers and work towards their satisfaction. A company should retain old customers and also try to attract new customers. To know more about how to attract new customers, click on the below link
5. Stop doing things to feed your ego
Carl Pei, the founder of One plus believes; stop doing things to feed your ego. As per their experience in 2015 where they were nominated in an award ceremony and their team knew they were the winners of the award. They started their celebrations; got expensive suits and made other preparations for that function that but after reaching at the ceremony they came to know that they were not the winners. They worked so hard to present themselves well as it was their first award. They all realized that instead of working on their appearance they should work on company growth. Carl said that he got 15 grey t-shirts to avoid this kind of decision making. He also believes that if you focus on work, then awards will keep coming to you.
6. The Biggest strength is culture.
The Company’s culture is its strength. Carl says they focus on company’s culture. Before the successful launch of their first phone one plus one, people were not ready to work for one plus company but after its first hit phone they started receiving resumes from talented people from Google, Uber, Apple, etc. They hired them but these new people were aggressive and materialistic and did not fit in the company’s culture. So Carl made a big decision and he gave priority to attitude of a person rather than talent and some of those shiny people were fired from One Plus. Carl even takes updates of employee’s personal New Year resolutions and helps them to fulfill them as he has the right intentions for them and respects them. When you have right intentions and direction then things go right. When One Plus was launched in 2014, in India there were many favorable conditions like- e-commerce was on boom and internet was gaining importance. People were doing online shopping in popular sites like Amazon, Flipkart. One Plus has 80% of sales from India because their launch timing in India was perfect. Sales of HTC, LG, Sony phones were all on decline and one plus online sales gained momentum.
It is very important for any company to have the best work culture to work together and run a successful business. The below link provides tips to make better work culture in any organization
With these success mantras One Plus has gained huge market share by their vision and motto to make great quality phones and thereby offering directly to consumers with less pricing. They created a massive change in the smartphone market but we should also understand that the Smartphone industry is quite dynamic and constantly needs changes and improvements to sustain in the market.