From celebrity collabs to virtual influencers; here’s how realme is marketing its new NARZO

• realme taps into the power of celebrity partnerships, notably with Shahid Kapoor, and embraces virtual influencers like KYRA to bolster its NARZO series marketing

• The brand has collaborated with Amazon to build a stronger reach

• By leveraging data analytics and AI, realme tailors campaigns to individual preferences, focusing on tier 2 and tier 3 cities

• With an eye on global expansion, realme strategically segments its product lineup and emphasises competitive pricing

The smartphone category in India stands as one of the most fiercely competitive markets globally, characterised by a plethora of brands vying for consumer attention. In such a landscape, a top-tier marketing strategy becomes indispensable for any brand aspiring to thrive. 

realme’s NARZO, a smartphone series that features budget, and mid-range devices, has been doing numbers since its inception in 2020. In fact, last year, NARZO N53 became the bestseller smartphone in its segment on Amazon in Q3.

The success of the brand, as per Tao Zhang, who is the chief marketing officer, is an outcome of rigorous consumer research and refined marketing strategies. 

realme has announced the launch of its latest addition to the NARZO series, the realme NARZO 70 Pro 5G, scheduled to debut on March 19, 2024. The smartphone will succeed its predecessor realme NARZO 60 Pro 5G.

To push the new offering, the brand has partnered with Bollywood actor Shahid Kapoor, in a bid to attract millennial and Gen Z customers. 

Celebrity endorsements are commonly employed in the smartphone industry. For better or worse, it is one of the many ways brands are able to stand out of the mix. For realme, celebrities have been fairly important in their marketing. In 2023, the brand roped in Shah Rukh Khan as the brand ambassador. This year, realme has added to its star power with Shahid Kapoor.

“By leveraging celebrities like Shahid Kapoor, known for their wide appeal across generations, realme enhances brand credibility and resonance. For instance, Shahid Kapoor's recent exploration of the role that technology plays in our lives aligns perfectly with realme's vision, making him an ideal brand promoter,” says Zhang, alluding to Shahid Kapoor’s latest film Teri Baaton Mein Aisa Uljha Jiya.

Going local

Beyond celebrity endorsements, the brand is also very bullish on personalised engagement, particularly with ambitions to woo tier two and tier three markets. Realme increased its retail touchpoints from 30,000 to 50,000 outlets in 2023, ensuring a significantly broader market reach. 

But these outlets also serve as localised experiences, facilitating personalised interactions and understanding unique consumer needs, as per Zhang. 

“By leveraging data analytics and AI, realme has tailored campaigns to individual preferences, focusing especially on tier 2 and tier 3 cities. This is done by curating messaging that connects with a wide range of demographics to strengthen relationships with customers.”

All about digital

To this effect, realme’s digital marketing mojo makes good use of social media in its efforts to reach out to its target audience.

Zhang explains, “Demographically speaking, India is a young nation and industry reports have highlighted its working-age internet users spend 44.4% of their online time on social media. This is higher than all other Asian countries. Consequently, at realme, we pay close attention to evolving social media trends to understand the pulse of our users and the larger community of millennials and Gen Z. This is key to remaining relevant and engaging with our user community.”

As social media algorithms become more data-driven, personalised content is on the rise, demanding greater creativity and understanding of consumer preferences. realme appears to be responding to these trends by investing in variegated marketing approaches. What stands out, is the brand testing waters with virtual influencers.

“Our partnership with virtual influencer KYRA began with the realme NARZO 60 Series 5G and continues, aligning perfectly with the tech-savvy next-gen Indians deeply entrenched in digital culture. This is experiential marketing at its extreme as it taps into the growing fascination of experience-seeking audiences across demographics. We are seeing that these influencers are offering strong engagement with our target demographics.”

Zhang underscores realme's dedication to fostering deeper engagement with NARZO users through the establishment of a dedicated social media account exclusively for the NARZO lineup. This initiative aims to create a vibrant community and reinforce user connectivity.

"Through targeted marketing efforts, realme continues to strengthen its position in the market and solidify NARZO's reputation as a preferred choice among consumers seeking innovative smartphones," he adds.

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For the unacquainted, the NARZO series is a co-creation partnership between realme and Amazon. Zhang points out that this coming together of these two brands not only enhances the visibility of NARZO products but also provides valuable insights into consumer behaviour and market trends. 

“Through this alliance, realme gains access to Amazon's extensive distribution network and customer base, while Amazon benefits from offering exclusive, high-quality products that cater to the demands of tech-savvy consumers.”

The game of competitive pricing

In the fiercely competitive smartphone category in India, price points play a pivotal role in persuading customers to make a purchase. With a diverse array of options available across various price segments, Indian consumers are inherently price-sensitive and meticulously weigh the cost against the perceived value of a smartphone.

It makes sense, then, that realme is very calculated in its pricing of its devices, particularly the NARZO series. With the cheapest phones in the series priced at below Rs 8,000, how does the brand operate?

Zhang answers, “The company achieves this through various strategic approaches. Firstly, realme’s manufacturing processes and optimised supply chain minimise production costs without compromising on quality, enabling it to offer smartphones at competitive price points. realme, committed to the Make in India initiative, manufactures a major portion of its smartphones locally.”

realme also leverages economies of scale by producing smartphones in large volumes, allowing it to negotiate better deals with suppliers and reduce per-unit manufacturing costs. Moreover, the company employs value engineering techniques to identify cost-effective design and engineering solutions that prioritise features providing the most value to consumers. 

“We have strategically positioned our products across different price segments to cater to diverse consumer preferences and budgets, ensuring there is an option available for every type of consumer without compromising on quality. realme also strongly prioritises consumer feedback, gathering insights from fans and targeted consumers to understand their preferences before finalising product launches.”

Growth and expansion

realme's global expansion strategy for 2024 and beyond encompasses ambitious goals aimed at solidifying its position among the top five smartphone brands globally within the next five years. 

The company's product lineup is strategically segmented into the GT series, Number series, the NARZO series and the C series, each tailored to focus on and cater to specific market segments. 

“realme is bolstering its presence through significant investments in R&D, which includes a 470% enhancement in R&D budgets in 2024 alone. With a focus on AI integration, realme aims to enhance camera innovations, picture quality, and identification in its upcoming releases, benefiting its young consumer base,” Zhang says.

Over the next five years, realme is committed to investing in both our core markets and potential markets, Zhang points out. 

“We aim to expand our reach to over a hundred markets globally, with a particular focus on building a strong foundation in fifteen key markets where we aim to achieve 1 million shipment volumes. We recognize the vast opportunities that lie within emerging markets and are eager to make rapid advancements in these regions. As part of our expansion strategy, we're setting our sights on Latin America, Central and East Africa.”

In the core markets like Indonesia, the Philippines, Thailand, Malaysia, and others, realme is striving for consistent growth while concurrently pursuing breakthroughs in budding markets. 

“To achieve this, we will employ a customised strategy tailored to the unique needs and opportunities of each market. Furthermore, we plan to strengthen the fundamental construction of our sales channels to provide a more convenient purchasing and service experience for our young users. We believe that by doing so, we can boost customer satisfaction and cultivate enduring loyalty among our users.”