 "Sampling isn't dead. It's evolving")
Sampling has been a proven marketing mix in the fast-moving consumer goods sector for luring consumers to try new products at a low risk by holding out small sample packs. What’s uncommon is a smartphone player betting on sampling to connect with buyers, generate word-of-mouth publicity and build brand salience.
Three year-old Chinese brand OnePlus, a late entrant in the crowded Indian smartphone market, is riding on sampling to woo buyers. It is doing so by leveraging pop-up stores — creating an experience zone in mobile (moving) vehicles, a temporary platform in an open space or in malls to engage buyers. With the company offering new models to buyers in markets such as Bengaluru, Delhi and Mumbai through pop-up stores, it begs the question as to why an “online only” smartphone brand is keen on going offline to connect with buyers.
OnePlus India’s thrust on creating experience zones for buyers is inspired by the brand’s less than encouraging experience of a virtual launch of OnePlus 2 in the market.
In 2015, the smartphone maker introduced OnePlus 2 by distributing about 1,000 virtual glasses targeting consumers and media simultaneously. However, the launch did not get a favourable response from either. This was in stark contrast to consumer attention and media buzz that its previous launch OnePlus One commanded.
The company realised that with its fast global expansion touching 35 countries in just about three years it was becoming hard to maintain brand connect with consumers. And to make an impact in the market it needed a differentiated strategy. So, in line with its global strategy, OnePlus introduced pop-up stores in India simultaneously with its roll-out of the concept in international markets including the US and Europe.
Vikas Agarwal, general manager of OnePlus India, says, “Since we don’t have brick-and-mortar presence, we don’t have an offline connect with buyers. A potential buyer cannot touch and feel the product. So it’s difficult for her to take a call while making a purchase decision. Pop-up stores allow us to move closer to buyers and help us engage with them.” Such stores enable OnePlus to move beyond a transactional relationship with buyers. More importantly, such a concept is a cost-effective marketing exercise for promoting the brand. Without revealing marketing spends on creating pop-up stores, Agarwal says the cost of such initiatives is significantly lesser than those that competitors incur on advertising on traditional media such as TV or print.
He claims unlike players catering to mass smartphone market at price points of under Rs 10,000, OnePlus is not aiming for top-of-the-mind recall. Instead, it’s chasing the premium segment that is less crowded and is dominated by aspirational brands.
So, to compete in a segment which commands loyalty, OnePlus needs to create a differentiated experience for buyers which can be delivered by being closer to them. While competitors follow “push” marketing, the focus for OnePlus is on a “pull” strategy.
As per industry reports, the premium segment (models priced above Rs 20,000) accounts for five per cent of the smartphone market in India. OnePlus commands seven per cent of the market share in the category, after Samsung and Apple which boast 44 per cent and 27.3 per cent, respectively.
OnePlus has gone about creating various touch points for pushing device sampling through pop-up stores and by forging alliances with telecom brands and cab aggregators. For example, with OnePlus 2’s launch, the company tied up with cab aggregator Ola. OnePlus 2 was available for an on-demand experience on the Ola app in major metros. For the launch of OnePlus 3, it got into an alliance with Idea Cellular and Vodafone India to give buyers a hands-on experience with the device at the operators’ brick-and-mortar stores. All such initiatives help OnePlus increase brand visibility.
Sumit Sehgal, chief marketing officer, Intex Technologies, says, “In case of smartphone, consumer experience revolves around ease of use and quick access to key features. And once a consumer is convinced of a good experience, it lowers entry barriers to purchase the product. It also helps focusing and refining the marketing mix for launch.”
While one can gain a customer through sampling, there is an equal likelihood of brands losing a customer in the process. A negative product experience will not only put off the customer but also negative word of mouth prior to or immediately after the launch can make it more difficult for the marketing task to find acceptance.
Even as OnePlus goes all out to engage value-conscious buyers with pop-up stores, Agarwal says the brand faces the challenge of delivering a unique yet uniform consumer experience with every new launch.
Sehgal says, “Since the smartphone industry is moving at a lightning speed with the consumer experience of devices improving by the day, brands have to be fairly nimble in terms of product development so as to recognise consumer feedback and change things in a short period of time to take out the true value from sampling.”
Brands have to be extremely confident of their key differentiators and focus on those during sampling, he says, adding that prior consumer research and usability feedback are a must before sampling a new product.
