AMAHLE KHANYILE ST10035088 BRAND MANAGEMENT TAKE HOME ASSESSMENT BMBS5121 09 May 2023 QUESTION 1 1.1.1 According to Kotler and Armstrong (2021) the core product also known as core customer value is more what the brand has to offer to their consumers beyond the actual physical product or service. It is more of the experience or benefits that come with purchasing a product or service. With the OPPO brand, the brand has much to offer to its consumers besides just a smartphone. According to hypertext (2021) the brand provides world class technology at an affordable price with uncompromising function. This goes to show that the OPPO brand provides their consumers with an innovative technology experience when purchasing their smartphones. 1.1.2 The actual product is the physical product or the intangible being a service that the brand offers. As stated by Kotler and Armstrong (2021) the actual product also includes a specific design, brand name and packaging. The OPPO brand’s actual product is the OPPO smartphone along with the additional accessories they provide as stated by hypertext (2021) which are their Enco buds, their 64W SuperVOOC Charger and their other premium products and accessories. 1.1.3 The augmented product is according to Kotler and Armstrong (2021) the additional benefits that the brand provides after offering the core and actual product. The OPPO brand’s additional accessories after consumers purchase their smartphone they have an option of according to hypertext (2021) but OPPO’s Enco buds, their 64W SuperVOOC Charger and their other premium products and accessories that they have. 1.2 A service unlike a product is not physical but rather as stated by Kotler and Armstrong (2021) is intangible. A service is something that the consumers experience that is in a form of activity and is beneficial for the customer. As stated by hypertext (2021) the OPPO brand has representatives in selected retail stores to assist their customers with any questions they have and information they need have regarding their smartphones. This is how the OPPO provides good service to their customers by providing them with assistance and consumers will be able to rely on the brand to provide great service even after purchasing its products that will make OPPO consumers have a great experience of the brand as a whole. 1.3.1 According to Kotler and Armstrong (2021) product attributes include the product's quality, the design, all its features and overall style. The OPPO smartphone according to hypertext (2021) has advanced technological features as they have collaborated with brands such as Google, Amazon, Microsoft and AI. These features allow OPPO consumers to access different parts of the internet and make use of different technological features. They partnered up with these brands to better and improve their features and to give their customers a better experience. The OPPO also offers great quality as according to hypertext (2021) they have a 0.3% return rate, which proves that their consumers are happy with their quality. 1.3.2 According to Kotler and Armstrong (2021) branding refers to a brand's name , sign or design. Branding helps the consumer distinguish the brands products or services from competitors. Most consumers attach different meanings to brands and for relationships with a brand so it becomes more than just a brand's physical product or their service. Branding is very important as it is a perception that stays in the mind of a consumer and as stated by Kotler and Armstrong (2021) can add value to a consumer's purchase. The OPPO is not only the brand name but also the logo as seen in hypertext (2021). The brand OPPO is associated with a brand providing smart devices at a reasonable price. They have branded themselves very well as they are according to hypertext (2021) in the top 4 most sold smartphones in the 2 of the markets largest operators. QUESTION 2 2.1 Customer value-based pricing is according to Kotler and Armstrong (2021) based on the perception of the buyers or consumers’ value rather than the cost of the seller’s. Customer value based pricing uses the price that the consumer believes is worth the product’s or services value that it provides them , this value is determined by the customer's experience or benefits of the product and over all what they can receive from the product. So therefore customer value based pricing allows businesses or brands to set their prices according to what their customers are willing to pay for their products based on their experience with them. OPPO as a brand according to hypertext (2021) entered the South African market and introduced their mid-tier smartphones which are more affordable with great quality therefore their prices of their smartphones are of a reasonable price and accommodating to the large and majority of the market in South Africa. This pricing also accommodated the Covid -19 period where many lost jobs and were unemployed so customers have less of a budget but OPPO provides smartphones for them to still buy with amazing features as well. 2.2.1 Product costs would be setting a price based on how much it cost to produce a product, essentially the value of the product. According to Kotler and Armstrong ( 2021) when brands set their products' price really high it usually indicates that a lot was put into the production process, effort and expenses to produce the product so that would justify their high price and usually high quality is guaranteed. The OPPO brand , also known as, according to hypertext (2021) the Chinese smartphone maker , produces their own products being smartphones. As a producer OPPO has the power to set their prices high or low but the market that they are operating in, in South Africa they sell affordable phones , this may result in high profits for them. 2.2.2 Competition based pricing is according to Kotler and Armstrong (2021) setting prices of products based on what the prices of the brands competitors are charging on the same or similar products. But according to hypertext (2021) OPPO does not depend or focus on their competitors so this indicates that their price settings are not dependent on their competitors but more on accommodating their consumers and giving them a great experience in the use of their devices. But what did influence their pricings is external factors, one of them being the economy. According to hypertext (2021) the OPPO brand launched in South Africa in September , 2020 during a global pandemic. This was at a time where many businesses closed down and many lost jobs, this heavily affected the economy. OPPO introduced their affordable smartphones which are mid-tier devices. The devices and prices made sense at a time like the pandemic. 2.2.3 According to Kotler and Armstrong (2021) the customer's perception of the brand's product value sets a specific price limit on how much a brand can charge for their products.OPPO are willing to pay the price that the brand has set as according to hypertext (2021) have over 150 000 users of the brand’s product who are happy. So this proves that the prices that OPPO has set align to the consumers perception of the brands products worth, based on what they offer and their experience with OPPO smartphones. QUESTION 3 3.1 According to Kotler and Armstrong (2021) supply chain is the relationship with the suppliers , resellers as well as the consumers or customers of the business. The supply chain includes upstream partners which are the firms that supply the raw materials and all that is needed and important in the production process to produce the final product or services. The downstream partners consist of the retailers or resellers and wholesalers and are very important as they connect the suppliers to the customers. An example stated by hypertext (2021) OPPO as the producer has formed a relationship and partnership with Vodacom, MTN, Cell C as well as Tekom to distribute their smartphones, these 4 brands are examples of the OPPO’s retailers that will then connect them to their customers which is very important part of the OPPO supply chain. QUESTION 3.2 3.2.1 Kolter and Armstrong (2021) defines the value delivery network as a network that is made up of the businesses distributors, suppliers as well as its customers who work together to improve the system’s performance in the delivery of customer value. There are alot of people and sectors needed to not only produce the final product but to deliver the experience of the brand. The people are also known as according to Kotler and Armstrong ( 2021) the marketing channel. The marketing channel consists of interdependent organizations , which help the brand get their products to its consumers for consumption. These are also known as channel members. Channel members add value to the OPPO brand as it is a Chinese brand so therefore they are international and need to have local distributors in South Africa. OPPO’s distributors and retailers according to hypertext (2021) Telkom, Cell C and MTN are very important channel members as they connect OPPO consumers to OPPO products which are their smartphones by providing and reselling OPPO smartphones in their stores. Because OPPO according to hypertext (2021) does not have physical stores in South Africa their provided retailers and distributors which are part of their channel members add a lot of value to their brand. REFERENCE LIST 1. hypertext. 2021.How the first year in SA shaped up for Oppo and what the future holds, 22 October 2021. [Online]. Available https://htxt.co.za/2021/10/22/how-the-first-year-in-sa-shaped-up-for-oppo-and-wh at-the-future-holds/ [Accessed 08 May 2023]. 2. Kotler, P. and Armstrong, G. 2021. Principles of MARKETING. 18th ed. United Kingdom: Pearson Education.
