Analysts feel marketing strategy behind Oppo's exit as Team India sponsor
- By IANS Team
- Jul 25, 2019
- 90 views
By Baidurjo Bhose
New Delhi, July 25 (IANS) With Oppo transferring Team India's sponsorship to Bjyu's mid-way into their deal with the Board of Control for Cricket in India (BCCI), one would think that Virat Kohli and boys' failure to win any major championship in recent time could be a reason. But if brand gurus and analysts are to be believed, it is the market position of the mobile brand as well as their future plans that has seen them move away from their position as team sponsors.
Speaking to IANS, Ad Guru Prahlad Kakkar believes it is a match made in heaven for the two companies with the biggest event in the cricket calendar done with -- 2019 World Cup.
"I think the World Cup was the climax of this season and we are not going to get something like this in the next year (till the World T20 in October 2020). And since these sponsorship issues are huge and the money is really big, I am sure they must have thought that now that the World Cup is over, if someone wants to take over from them, that is ok," he explained.
Kakkar also believes that for Oppo to continue its position in the market, it needs to work on its technology and the market for a brand like Byju's is always bullish. So, the sponsorship deal of the Indian team works well for the education app.
"Oppo is a brand that is based on technology. So, the better technology you have, better the brand. They were pretty big last year, but nobody knows if someone comes up with a completely new technology at the same price range whether Oppo will have the same market share. Their market share also fluctuates depending on the technology they put in. Technology is also expensive. You cannot sit back and enjoy brand share. It is a critical situation.
"Byju's as a brand has grown exponentially and it has got massive funding. As a learning app they are definitely among the best advertised in the country so far and they are likely to grow further. The market for them is always bullish. For them to actually step in with Oppo suits both of them really well," he explained.
Another analyst who worked closely with previous sponsors Star said that it was a case of Oppo looking to invest in its products and so they decided to move off and resale the rights to Byju's.
"In this case, it is an onward sale. It is not necessarily an investor investing in a property. This is more of a resale of a property where the original investor is not keen to hold onto it. Oppo isn't doing as well as its projections were and 2019 hasn't been that good. They have had two launches and those haven't worked. So, they are getting rid of this investment primarily as an austerity drive.
"They want to reduce their cash out and this is a long season and you have loads of Indian matches. Oppo's outgoing would be quite a bit and that is where they have taken this call. It is like after looking at the profit and loss and the revenue that has been generated so far and what my liability is towards the marketing asset and that shows a situation which isn't favourable. This isn't a distress sale, but based on what my capacity to pay is. Correcting oneself when things haven't gone their way," he told IANS.
Another advertisement analyst added that the organisation - in this case BCCI - and its functioning is also kept in mind when such huge moves are made. "Indian cricket is a huge brand. Who would not want to be associated with it? But with the present state of affairs there is obviously a lot of uncertainty.
"There is an element of ad-hocism around the functioning of the BCCI and the sense that we are getting is that decisions are being taken without authority and may be reversed in the near future. Our due diligence processes have raised red flags. When an important person leaves an organisation it has an impact on the share value you see. In this case, the entire leadership has been wiped out and the professionals aren't inspiring confidence," he explained.
Oppo on its part has also pointed at a change in strategy. "As OPPO enters into its sixth year, India will continue to remain a key growth market. To meet rapidly growing consumer demand, OPPO will accelerate its efforts on local Production, R&D and Retail. This will help OPPO bolster its commitment to offer Indian consumers cutting-edge technology and a premium experience," it said.
(Baidurjo Bhose can be contacted at [email protected])
Source : ians