Marketing Plan for HUAWEI
By: PIRTHIP A/L RAMADASS
Student ID: J17023232
In just a little over 20 years Huawei has surpasses many famous companies, becoming the number two global telecom solution provider. It is a Chinese company which makes smartphones which the main headquarters located in China. It is to be the largest telecommunications equipment maker in the world, hosting overtaken Ericsson Previously, 2012. . Ken Hu is the deputy chairman of Huawei technologies and chairman of Huawei USA. During his 20 years he has seen the company grow into a global leader in the telecommunications market. Huawei was established in China in 1987 with an investment of only several thousands of dollars. The company started as a business that resold PBX equipment (private branch equipment). In 1992 it developed and deployed its own digital switching solution ruled the Chinese market. Soon after, Huawei expanded to major cities in China and other emerging markets with a comprehensive product portfolio. By 2000 Huawei international sales had exceeded 100 million dollars. With that experience and success Huawei quickly won major customer in Europe, Latin America and almost every region of the world. Today Huawei provides customized network solutions for telecom carriers in over 140 countries, serving approximately one-third of the world's population and has been trusted by 45 of the top 50 telecom operators around the world. Huawei success is due to its commitment to develop cutting edge technology. Huawei has over 100 000 employees worldwide.
1.0 – VISION & MISSION STATEMENT
Huawei is most recent and also junior innovation particular organization that mostly keeps tabs with respect to keen phones. Constantly, Huawei's dream may be “to concentrate on their customers” advertise tests Furthermore needs Eventually Tom's perusing giving work to fantastic correspondences system results What's more benefits in place on reliably make most extreme worth for customers”. The mission of Huawei may be those sole purpose behind the Huawei's presence on completely comprehend their customers' needs Also fulfil them for those precise best items Also benefits. Their point is on attain win-win-win circumstances for their customers, suppliers, and partners.
2.0 – SITUATIONAL ANALYSIS
2.1 – Internal Environment
2.1.1 – Company Analysis
HUAWEI might have been established done 1987 by Ren Zhengfei, Huawei innovations co. Ltd. (Huawei) need changed from a one-room workshop Previously, Shenzhen, China, of the world's biggest majority of the data Also interchanges innovation (ICT) results Also administrations supplier. Over the years, it need created competencies crosswise over transporter network, endeavour Also customer fields. With a dream “To improve life through communication”, Huawei need earned a notoriety as a standout amongst those the greater part dynamic, fastest-growing, imaginative multinational engineering organization organizations. Towards those beginning, Huawei picked up fundamental engineering towards reverse-engineering outside results What's more utilizing that Likewise the establishment on create more perplexing advances. Toward the later stages, Huawei put solid accentuation once in-house Examine & advancement (R&D). For solid in-house R&D Furthermore hostility undercutting from claiming prices, Huawei need stretched fast over those a long time Furthermore its items What's more results need been deployed in through 140 countries, serving more than one third of the world's populace. Previously, 2014, Huawei recorded benefits from claiming USD 5. 5 billion (Huawei fiscal Results, 2014). Its systems administration supplies serves 45 of the world's 50 biggest interchanges operators, with BT Group, Vodafone, Orange, and T-Mobile amongst its outstanding clients. Huawei may be those just Chinese particular organization that created a higher income from business sectors outside about china (67 for every cent) over from the local business sector. Currently, Huawei need around 170,000 disappointments and outrage on his/her staff Comprehensively (De Cremer & Tao, 2015), for 22 territorial work places Furthermore over 100 subsidiaries around the globe.
2.1.2 – Customer Analysis
Using a big data platform, HUAWEI Smart Care® customer experience analytics solution offers per Service per User (PSPU) data analysis capabilities on the basis of correlating the data of the Business Support System (BSS) and the Operations Support System (OSS) in the telecom network. Based on the practice of customer lifecycle management, HUAWEI Smart Care® helps to identify and rectify problems in operators' network and service processes, improve customer satisfaction and Network NPS, reduce churn, and discover new business opportunities. Huawei is rapidly growing though, spreading its smartphones across the world to reach new customers or audiences. HUAWEI has become a hardware company in its own right, creating consumer products that have found fans around the world. Huawei has demonstrated it can build a premium smartphone well, winning the endorsement of Google to create last year's Nexus 6P, a well-received phone. Clement Wong, Huawei's vice president for global product marketing, said the company's success is down to the consumer appeal of its products. "We don't want the consumers to just love our price tag, we want our consumers to love our product," said Wong. Nowadays, everyone wants phone with good specifications with a reasonable price. This is the reason why consumers like to use HUAWEI smartphones which is with great camera quality, specifications and also with reasonable price.
2.1.3 – Competitor Analysis
In China, Huawei has three main competitors which is OPPO and VIVO which also produces smartphones. OPPO entered the mobile phone market in 2008. The OPPO Find 5 was released in America in February 2013, the OPPO Find 5 features clean lines, thin rectangular shape, and overall elegant appearance. The OPPO Find 5 features a pixel density of 441 ppi, which puts it in the highest range of the mobile phones with HD display at its release time. Vivo has become a mainstay of the Chinese smartphone landscape since it first opened its doors seven years ago. While OPPO and Huawei made their names by initially offering budget and midrange devices, Vivo has always focused on the high end market. OPPO and VIVO are the brands which growing faster in the market. OPPO's annual sales in China to 78.4 million, up 122 percent year-on-year, first on the list, while Vivo sat slightly lower in third with 69.2 million shipments, up 97 percent and HUAWEI has overtaken OPPO and VIVO as the number one smartphone seller in China for Q1 2017, research firm IDC has revealed.
2.2 – External Environment
2.2.1 – Political/ Legal Factor
In China, the help from Chinese government is how Chinese cell phone producers have profited, and still do, from government bolster. For instance, they have possessed the capacity to use the assembling framework in Shenzhen, a purpose-built city constructed that obliges gadgets creators, and along these lines manufacture cell phones with leader standard specs effortlessly and at very low cost. China government has various political legislations that affect Huawei's external strategic environment.
2.2.2 – Economic Factor
From 2013 to 2016, China had an average GDP growth rate of 7.2 percent, far higher than the global average of 2.6 percent and 4 percent of developing economies, NBS data shows. For example, the services sector has become an economic pillar. In 2016, the additional value of the tertiary industry represented 51.6 percent of China's GDP, up 6.3 percentage points from 2012, NBS data shows. "Under the Made in China 2025 initiative, the high-end manufacturing and high-tech sectors are also powering the domestic economy”. He cited the smartphone sector, where domestic brands such as Huawei and Vivo are eating into the market share of traditional tech giants such as Apple and Samsung. For Huawei it is potential and huge market.
2.2.3 – Social/Cultural Factor
According to the study, customers are mostly their smartphones and also discovered that the average person checks their device 85 times a day, spending a total of five hours browsing the web and using apps. Fully 63% of all teenagers exchange text messages every day with people in their lives using the app called WHATSAPP. Just 1% of teenagers say they text less than once a week, and 26% of respondents (including those without cell phones) said they do not text with other people at all. When specifically asked about texting with friends, 49% of teenagers send and receive text messages with friends every day while 28% of all teenagers say they do not text their friends. Overall, the number of teenagers who text daily with their friends has remained flat over the past two years. In 2009, 54% of all teenagers, (regardless of whether they owned a cell phone) texted with friends daily. This is a statistically insignificant difference with the 49% of all teenagers who text their friends every day in 2011. Huawei is really good for the design and specs which is loved by the customers.
2.2.4 – Technological Factor
Enterprise is about developing technology that helps make companies, even cities, more efficient and even more secure. At the Shenzhen headquarters, it's clear that huge efforts are going into video conferencing - from standard desktop or mobile use to the kind of systems used by large corporations and governments. The goal is to create near face-to face communication. The design team is now working on reducing today's distracting seams between the multi-screens. Besides making phone calls, nearly all smartphones today can natively provide directions through GPS, take pictures, play music and keep track of appointments and contacts. In the past few years technology has drastically changed the way business is conducted. Not only has the internet empowered the consumer, but it has also given new powers to sales reps. Equipped with smartphones, tablets, and an arsenal of applications and software to interpret loads of data, the savvy salesperson must remain “in-the-know” with today's technological trends.
2.3 – SWOT ANALYSIS
Huawei has wide range of innovative touch screen phones which can be helpful in capturing the China market. The all-new touch screen phones of Huawei recognizes multi finger gestures, just as the human hand normally behaves. Huawei is well known for cool essential gadgets like the fixed wireless terminals, Broadband modems along great technological innovations like the original gateways in market. Huawei mobile phones would be sold at a reasonable price for its value which can be there competitive advantage.
It is not known in mobile phones as compare to its other strong competitors in the market. The Huawei brand is not targeted towards business people and does not have a reputation as being compatible with the corporate world Threat. Distribution channel is not so strong and have no service center in Lahore
Financial muscle is strong and also can target more market segments. As in China they are giving supplies to UFONE and ZONG so they have opportunity to interconnect with other telecom companies in China. There is high hype and interest of keypad phones in China since smart phones are better known and already widely used
Phones are easier to make now more than ever. More companies may enter the market, and competition is increasing. The Huawei is marketed as a high-end phone worldwide, but phone prices in China are almost certainly going to fall when other companies undercut the price of their phones.
3.0 – MARKETING OBJECTIVES
Huawei's marketing objectives is to set an aggressive buy achievable objective for the first and second years of market. Their first year objectives is that the company should aim for a 2 percent share of the China mobile phone market through unit sales volume. The second year objectives are to achieve a 10 percent share based on sales where can extend on the brand name and link to the established meaningful positioning and also to extend on Huawei image of innovation, quality, and value. They also measure the awareness and response in order to make adjustments to the marketing campaigns as necessary and also to differentiate the Huawei from other competitors in the market. A primary customer target is the middle-upper income professional to coordinate their busy schedules and communicate with colleagues, friends and family. Secondary consumer targets are high school, college and graduate students who need one portable multi-function device. Their Primary business target is to partner with cell phone service providers, UFONE, WARID, ZOND and TELENOR and their secondary business target is to cater mid-size corporations that want to help managers and employees stay in communication or access critical data on the go.
4.0 – MARKETING STRATEGIES
Being a new player in the smartphone market, Huawei was not armed with sufficient data to determine the right online channel to reach out to target customers. In order to meet marketing objectives, Huawei worked with iClick. IClick planned a 2-phase strategic approach. Firstly, it found who their potential customers were and them it we adopted a data-driven approach to reach target customers across channels in the most cost-effective manner. The first strategy is leveraging on iClick's programmatic marketing platform, which is connected to over 300,000 websites in China, Huawei was able to identify users interested in smartphones by analysing content these users liked, the content they shared with friends, and what they commented on. The users identified were then matched with the audience database of iClick's through cookie matching. The second strategy is that Huawei targets audience profile as the basis of programmatic media buying on iClick's technology platform. Connecting to major ad exchanges in China and other biddable and non-biddable private exchanges and portals, Huawei was able to effectively convey its advertising messages to a target audience scattered across millions of websites and devices. Huawei is the only phones that can survive in both offline and online markets or segments.
5.1– TACTICS – MARKETIN MIX
5.1 – Product strategy
Huawei started its product line by making phone switches and later it earned a contract to build telecommunication network for an army. In the year 1997 company was able to gain its first contract in overseas market and provided fixed-line networking products. Later it launched GSM-based wireless products and eventually UMTS and CDMA. In the year 2011 company announced that it would be providing cloud-computing solutions, data center, wireless and fixed communication and network infrastructure for global customers. Currently, product portfolio of Huawei core business includes telecom networks that include solutions and technologies like fixed and mobile soft-switches, Internet-protocol-Multimedia-Subsystems and home location register. It also facilitates mobile infrastructure, service provider switches and routers and broadband access. Global services of Huawei offer telecommunication operators necessary equipment for building and operating network. It also provides engineering and consulting services for the improvement of operational efficiencies and it comprises of network integration services for fixed and mobile network, learning service like competency consulting and assurance services like network safety. Device division of Huawei offers to its content service provider white-label products that include wireless modems, USB modems and wireless routers for connectivity through mobile Wi-Fi, wireless gateways, embedded modules, mobile handsets, set-top boxes and video products. The company also sells devices under its own brand names like smartwatch, tablet PCs and smartphones.
5.2 – Pricing strategy
Huawei faces tough competition from Ericson, Cisco System, ZTE corporation, Apple etc. As the numbers of competitors are more in the telecommunication industry therefore Huawei follows a competitive pricing strategy in its marketing mix for its products. The reason for this pricing strategy is because buyers (consumers) have more bargaining power and can switch brands easily. Huawei always focuses on providing best quality products to its customers as pricing are nearly same by all competitors. Huawei also charges high prices for its new and innovative products that are not in the competitor's product line. Huawei also sometimes follows elastic pricing policy and gives discount on its products mostly sold through ecommerce. For its business division of Enterprise and carrier products the company charges premium pricing strategy for its innovative products and solutions.\
5.3 – Place/Distribution strategy
Huawei company has its presence in more than 170 countries and employees more than 1.7 lakh employees out of which nearly 76 thousand employees work in the 21 R&D departments all over the world. Huawei along with the telecom partners has built more than 1500 networks which serves to more than 33% of the world's population. Huawei has been working on developing joint ventures with local companies or authorities and the company provides these local authorities dividend for using Huawei products. Huawei has got a wide distribution network which includes sales person, distributers, and suppliers. Huawei do not directly deal with the customers. Also the newly formed joint ventures between Huawei and local authority helps to build new channels for its product distribution. The company sells its products through its website also.
5.4 – Promotion strategy
Huawei uses OMNI channel to promote its brand and products. The company is involved in promotional activities in its marketing mix on TV, radio, print, social media, events and sponsorships. Huawei has hired Lionel Messi as its global brand ambassador. Some of the other celebrities like Henry Cavill and Scarlett Johansson have appeared in ads for Huawei products. Huawei also offers discount cards and coupons as a part of its sales scheme. The company also engages in sponsoring various events and sports team like Norwegian Ski federation, La LIGA. Huawei is also active on social media websites for resolving customer's issue and better connectivity with people to increase brand awareness. Hence, this covers the entire marketing mix of Huawei.
6.0 – CUSTOMER RELATIONSHIP MANAGEMENT
Customer relationship management (CRM) is not just the application of technology, but is a strategy to learn more about customers' needs and behaviours in order to develop stronger relationships with them. By strengthening Huawei's CRM, they can get some customers loyalty. Huawei should utilize their CRM to strengthen their already existing bond with their customers. They can do this by utilizing the personal information and details of the customers stored in CRM database, and thereby sending out regular and timely updates about the business and organization to them. They can also use the CRM software to send out sweet nothings such as “thank-you” too. This will make them feel more valued, involved and part of the business family, which in turn will make them prefer Huawei and their organization over others the next time they want to do business. Next, one of the most important business segments where in they should use the CRM to its fullest is to deliver supremely quick response to the queries and complaints of their customers. For a customer, there is nothing better than a quick response from an organization's side to his/her query or complaint. In fact, it can even be said that from a customer's point of view, the quality of a business organization majorly depends on the customer service provided. Hence, as a business owner they cannot and should not take any chances as far as acknowledging the queries and complaints of their valued customers is concerned, and they should utilize their CRM for this very purpose.
Marketing Plan - Timeline
Period Highlight: 1 Plan Duration Actual Start % Complete
ACTIVITY PLAN START PLAN DURATION WEEK
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52
sponsor of German club Dortmund 1 52
sponsor of Ghana football association 1 52
sponsor of Venice marathon 2 28
publish advertisements on newspapers 4 8
launched the first annual NEXT-IMAGE AWARDS 1 26
donation for the homes and poor citizens 1 52
7.0 – TIMELINE
8.0 – BUDGET
Company Name : Huawei
Expense Budget Actual Difference (MYR) Difference (%)
sponsor of German club Dortmund ¥ 5,000,000,00 ¥ 4,000,000,00 1,000,000,00 MYR 0.20
sponsor of Ghana football association ¥ 700,000 ¥ 600,000 MYR 100,000.00 MYR 0.70
sponsor of Venice marathon ¥ 250,000 ¥ 170,000 MYR 80,000.00 MYR 0.32
publish ads on newspapers ¥ 150,000 ¥ 140,000 MYR 10,000.00 MYR 0.07
launched the first annual of NEXT-IMAGE AWARDS ¥ 150,000 ¥ 150,000
donations for the homes and poor citizens ¥ 200,000 ¥ 200,000
9.0 – CONCLUSION & RECOMMENDATION
In recent times, Huawei need attained uncommon prosperity over numerous fields likewise those speediest rate of developing band to Chinese cell phone industry, in music, open function, photography and etc. Nonetheless morals Huawei even now need fields requirement on improve, in battery term Furthermore national transforming unit, Furthermore Huawei need will make parts from claiming chance also money if creating these innovations. In this way to quickly expand those sales, business share, What's more growth, making those showcasing want will be a great approach on assistance Huawei accomplish it.
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