70% Annual Marketing Budget Is Allocated To Digital: Tao Zhang, realme India

The smartphone industry in India represents both challenges and opportunities for brands. In a market where competition is fierce and innovation is key, realme held a 13.45 per cent market share in India's smartphone industry during Q1 24, reshaping technological boundaries and consumer engagement. 

In an exclusive conversation with BW Marketing World, Tao Zhang, Chief Marketing Officer, realme India unveils the brand's strategic vision, highlighting the brand's focus on young users, marketing strategies, tech integration, sustainability and personalised brand experiences.

NARZO 70 Pro 5G Partnerships

Central to realme's recent developments is the partnership with actor Shahid Kapoor for the release of the NARZO 70 Pro 5G, scheduled to debut on March 19, 2024. They also teamed up with Amazon to leverage smart marketing strategies and a customer-centric approach at an affordable price point.

Zhang emphasised the significance of the collaborations stating, “Through collaborative efforts, the NARZO 70 Pro 5G promises to provide a forward-thinking experience, particularly appealing to tech enthusiasts and Gen-Z users.” He adds, “With the help of Amazon, we have streamlined the online shopping experience for consumers, aligning with realme's goal of making technology accessible to everyone.”

Nuanced Marketing Strategy

realme's marketing strategy reflects a nuanced approach, allocating budgets across various channels and campaigns. While traditional media like television, print and outdoor advertising still have a role, realme prioritises digital platforms such as social media, online display ads, influencer partnerships and experiential marketing as its primary means of engagement. 

Zhang notes that the NARZO 70 Pro relies solely on digital marketing, while the Realme 12 Pro adopts a balanced mix of digital and traditional marketing, split 50-50 per cent.

For realme's overall marketing spends Zhang reveals, “30 per cent of our annual marketing budget is spent on traditional, the balance 70 per cent is allocated to digital spends.”

Additionally, realme leverages AI integration and celebrity partnerships, resonating with tech-savvy consumers across digital platforms to enhance marketing impact.

Tech Integration

realme's integration of tech into marketing strategies mirrors its commitment to innovation. The introduction of the brand's ‘Spire Strategy’ concentrates on pioneering technology within each product series and complements it with novel marketing strategies, explains Zhang.

The brand also harnesses AI for consumer data analysis, targeting refinement and campaign optimisation to ensure maximum efficiency in its marketing endeavours. 

“Starting this year, realme will comprehensively layout AI smartphones, concentrate resources for long-term investment, strengthen AI technology reserves and its application in products”, he remarks.

Zhang shares that the brand's AI strategy will target young people and concentrate on four major tracks namely ‘AI assistant’, ‘AI entertainment’, ‘AI imaging’ and ‘AI efficiency’. 

He informs, “The AI strategy will be announced in the middle of the year.” By leveraging the most advanced AI capabilities globally, more research and development efforts will be invested to create differentiated AI functionalities to enhance user experience.

Moreover, realme's integration with virtual influencers like KYRA resonates well with the futuristic outlook of Gen AI, enhancing brand appeal and engagement.

Personalisation & Localisation

Zhang highlights the brand's heightened investment in Research and Development (R&D) for 2024, signalling a 470 per cent increase. By leveraging data analytics, the brand identified a growing demand for budget-friendly smartphones with advanced features, leading to the successful launch of the NARZO series and fortifying its capacity to provide individualised brand experiences that connect with customers from a wide range of demographics and geographic areas.

With an extensive distribution network of over 50,000 retailers across India in 2023 and a focus on personalised marketing, realme ensures to cater to individual preferences, especially in Tier 2 and Tier 3 cities.

Focussing on the use of data analytics and AI to tailor campaigns to regional nuances, Zhang underscores, “Through a blend of data-driven insights and localised initiatives, realme creates a personalised brand experience that transcends geographic boundaries, catering to consumers across India.”

To further enhance the personalised brand experience, realme has expanded its footprint with exclusive retail stores. These stores serve as hubs for localised experiences, providing personalised interactions and understanding consumers' unique needs.

Sustainable Practises

realme is actively integrating eco-friendly practices into its marketing messaging and product development. Zhang stresses, “realme aims to minimise the full life-cycle carbon footprint of its products, setting a target of achieving a 30 per cent reduction in carbon emissions during production.”

Through initiatives like its sustainability report showcasing initiatives in areas like green products and smart operations to adhere to the '3R+1D' design concept, prioritising reduction, recycling, reuse and degradability of its products, realme aligns with environmentally conscious consumerism and responsible practices.

The Way Forward

“Our core philosophy, 'make it real' revolves around tangible value through cutting-edge technology,” Zhang asserts as realme charts its course forward.

With a focus on technological advancement and customer-centricity in 2024, the brand aims to pioneer a new era of innovation that seamlessly integrates into the lives of its consumers. 

Zhang encapsulates realme's vision stating, “With a focus on meeting the diverse needs of our consumers, we envision a future where technology enhances every aspect of life, making it more convenient, connected, and fulfilling.”