Chinese mobile phone manufacturer Vivo Mobile has just replaced Pepsi as the title sponsor for the next two seasons of the Indian Premier League (IPL). In conversation with Simran Sabherwal, Alex Feng, CEO of Vivo Mobile India tells IMPACT why the sporting property was an attractive proposition for the young smartphone brand
Q] What is Vivo’s rationale behind coming on board as the title sponsor of the Indian Premier League (IPL) for the next two years?
We entered India in December 2014 and since then, we have been focused on building our foundation here in terms of teams, distribution network, service network, call centres and products. We think now is the right time to make a noise in the Indian market and for us, IPL is definitely the right platform to connect better with consumers. As a young brand, we are dedicated to offering good products to young people and share the same spirit. That’s why we are confident that this association will work well for us.
Q] Controversies have relentlessly dogged and tainted the image of IPL over the years and perhaps prompted the exit of the previous sponsor recently. Is this cause for concern for Vivo?
No, we are not worried about IPL’s history. As I said, it is the right time for us to enter the Indian market with a loud noise and we can offer our experience in marketing our campaigns to IPL to make it a better Vivo IPL for the next two years.
Q] What are the returns you are looking to get from IPL?
The association with IPL goes along with our long-term strategy in India. Our corporate culture is that we focus on what happens now and in the immediate future. We are focussing on this aspect of the association and believe the result will be good.
Q] What are the marketing initiatives you are planning for the next season of IPL?
We are working closely with the Board of Control for Cricket in India (BCCI) for every possible media exposure and campaign. We already have a strong network in terms of BTL with 10,000 retailers. It is necessary for us to launch ATL campaigns across India and you will see a 360-degree pan-India Vivo campaign before and during the IPL season that will include Social Media, Digital, Print, Electronic basically everything.
Q] With a bid of Rs 200 crore, Vivo beat three other contenders as per media reports. What are the contours of your association with BCCI? What is the value of your sponsorship deal?
We are not looking at the exact figures we are paying right now. Instead, we are looking at the long-term benefit that this association will bring us in the Indian market. Also, based on our agreement with BCCI, we cannot disclose any financial details.
Q] You are a late entrant in the very competitive smartphone market in India. What are the strategies in place to expand in the country?
We are a young brand in India and we are fully aware that this is a very competitive and cluttered market right now. We started from China and created the category of a Hi-Fi (high fidelity) music smartphone. By creating this category, we became the fourth largest smartphone brand in China and we will bring that experience from China to India. We are not focussing on our competitors, but on our own products and services. That is why we are building our assembly unit, our service centres and training our teams. Given these quality products and services, we are confident that customers will make wise choices.
Q] What are the learnings from China that you would look to implement in India?
I believe that the essence of all businesses is the same that is, to care for your customers and all your stake-holders, and this is a precious legacy we learnt in China. As long as we care for our employees, partners, our customers and our share-holders, we will live and prosper in any market.
Q] You entered India with a strategic marketing and communication partnership with Viacom18’s Integrated Network Solutions (INS). Are you continuing with this relationship?
We choose a partner to work with us based on the stage of our current development. The selection process is always transparent and fair. Viacom18 helped us tremendously in our initial entry into the Indian market. We will take a decision on our long-term association and are open to all options.
Q] Will Viacom18 be assisting you in marketing for IPL?
All the planning for the next season of IPL is still in the very early stages and we are keeping our options open.
THE ASSOCIATION
The next two seasons of the Indian Premier League will see extensive cooperation between IPL and Vivo, extending to sports events, on-ground activations, media exposure and marketing campaigns. Talking about the association, Anurag Thakur, Honorary Secretary of BCCI, said, “IPL is all about opportunities and exhibition of talent, and with Vivo coming in as the title sponsor, it is yet another initiative to showcase a brand which is young, full of life and looking for a platform to showcase its talent. Just like the IPL, Vivo in a very short span has created a niche and legacy in the smartphone market and I am sure this will be a long and enriching affiliation for both the stake-holders. ” This association is part of Vivo’s global expansion and Indian localization strategy. It is the first, and so far the largest brand association that Vivo launched in India and reiterates the importance of the Indian market for the brand. Vivo is confident that it will get good returns from its investment in IPL and believes this association will further advance its Love India, Love Vivo initiative. As a brand, Vivo has shown great interest in sports and sponsored NBA’s live broadcasting in China in 2014.
ALL ABOUT VIVO
Vivo is a Chinese multinational manufacturer of smartphones headquartered in Dongguan, China. As of 2014, Vivo is the fifth top smartphone brand in China, and 10th top smartphone brand globally. Currently, Vivo has presence in India, Malaysia, Indonesia, Thailand, Myanmar, Vietnam and Philippines. Vivo entered India in December 2014. Currently it serves Indian customers with 8,000 employees and 10,000 retailers, in over 300 cities in 22 States, with a strong focus on Hi-Fi Music. The “Make in India” initiative also resonates with Vivo’s plan. Its assembly unit in Greater Noida is the first step toward this commitment. With Rs 125 crore first-phase investment, this unit will be operational by November, 2015. Since its inception, Vivo embedded Hi- Fi & Smart into its brand and product genes and claims to have created the world’s first Hi-Fi smartphone, established smartphone Hi-Fi standard and upgraded it to Hi-Fi 2.0. With extensive R&D, Vivo put Hi-Fi chips into smartphones, so that Vivo’s young consumers could enjoy Hi-Fi music experience in all Vivo products.
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