Question

Marketing

Huawei Technologies Brief History Huawei Technologies Co., Ltd. is a Chinese multinational technology company that provides telecommunications equipment and sells consumer electronics, including smartphones and is headquartered in Shenzhen, Guangdong province. The company was founded in 1987 You have been appointed as a Marketing Specialist to assist Mancosa to develop a Marketing Plan for year 2020. Please note: Your Marketing Plan must be based on market research, situation analysis and must clearly present marketing mix strategies and tactics that are likely to achieve Huawei Technologies business goals. It is important that you explain the rationale for your recommendations - why you are recommending these strategies and tactics - and why the 'client' should believe your recommended marketing strategies and implementation will be successful. Project Requirements: Develop a Marketing Plan that will help Huawei Technologies to attain a competitive advantage in a customer driven market: Report Structure: The Marketing Plan should have the following headings Each section should start on a new page. 1. Title Page:  Includes the title, submission date and your name/student number. 2. Table of Contents:  Page with major section names and their associated page numbers. 3. Executive Summary: (3)  Summary of the highlights of the entire plan.  Tip: It is easiest to write this last. 4. Situation Analysis: (10)  Summary of the key market and environmental factors, Tip: PESTEL, SWOT analysis. 5. Competitive Review: (10)  Including a focused marketing review of the company and their top three competitors. 6. Segmentation of customers (15)  Discuss the segmentation variables and select one that should be used by Huawei Technologies. 7. Marketing Mix strategies (20)  Discuss, Product, Price, Place, Promotion and the extended 3Ps. 8. Bibliography: (2)  Include all of your sources including information from articles, books, websites and other sources in Harvard style.

Answer 1

Marketing Plan Huawei Technologies

Executive summary

Huawei is a leading mobile phone organization operating in the international mobile phone industry. The company gave a strong competition to the iPhone inc which is an international leading mobile phone brand. But the competition is rising with the passage of time and it has become difficult for the organization to grow continuously in such a competitive market. The PESTLE analysis is used to show the impact of political, legal, economic, social, technological and environmental forces over the organization in recent times. the market segmentation shows two potential market form which youngsters is used as a potential target market to how the revenue and consumer size in the international market. Finally using 3P's marketing mix strategy some beneficial strategies are recommended to influence buying decision of the target market.

Table of Contents

1. Introduction

1. Introduction

2. External environmental analysis

4. Market segmentation

5. Marketing Mix strategy

7. References

1. Introduction

Huawei is a Chinese multinational telecommunications hardware and distribution corporation headquartered in Guangdong, China. Founded in 1987, the firm originally concentrated on the manufacturing of mobile switches but extended its activities to include the development of telecommunications networks and the production of communications equipment (Wong, 2019). In last five years the growth rate of Huwei has been raised. From 2016 to 2018 the growth rate of employes raised by 25% to 31% and now it is gworing at a 35% in intertaional makret (Hooker & Palumbo, 2019). The continuous development of technology has created strong competition in the electronics industry so this report will analyze the external market environment to recommend the marketing plan for Huawei in order to increase growth are and consumer size.

2. External environmental analysis

3. Competitive analysis

External environmental analysis includes all the external variables which are affecting the growth of Huawei with the help of PESTLE Analysis(Jurevicius, 2013).

Political: The political factor includes all the political forces such as government interventions that are affecting the market of Huawei. Huawei operates in the international market and due to the trade war of China and the U.S, the taxes imposed by u.s government over import and export have affected the profitability of Huwie in the international market (Blustiein, 2019).

Economic: Recently due to coronavirus almost all industries got affected which slow down the growth of the economy and it will negatively affect the income of consumers and will affect the customer size of the organization.

Social: Today, having a smartphone have become a trend which forces youngsters to upgrade mobile phone which can be beneficial because it will increase the demand of the consumer but Chinese products are associated with the low quality around the world due to some people believes which also negatively affect the demand.

Technology: Due to continuous development in technology it has become difficult to compete with the other rivals in the industry. The technology development iPhone and Samsung organization have created a high competition for Huawei which is not letting the organization grow in the international market.

Legal: All the electronic products need to go through product safety regulations and packaging requirement which reduces production time which slows down the production of Huawei. There are many legal enviornmental policies which forces all techinal organisations to focus on reducing their carbon footprint because it imposes a penalty to reduce carbon emmsion into the environment which is also affecting the organization negatively.

Environmental: With the rising climate change awareness in the society it has become mandatory to use renewable energy sources and to create biodegradable products that increase the cost of the production in the mobile industry that also creates a hurdle to grow.

Thus in the current external environment, it is difficult for Huawei to achieve a sustainable growth rate.

3. Competitive analysis

In the international market, Huawei has some dominating leaders which is affecting its consumer size. In 2018, Samsung earned 292.3m revenue and Apple earned 208.8m revenue while Huawei earned 206m worldwide (Richter, 2019). Huawei competed for one of the leading dominating player Apple Inc while there are other rising local brands that have created a heart for Huwie such as Xiaomi. Xiaomi offered high-quality mobile phones at very cheap prices. on the other hand, Oppo also has become a close competitor which can create a strong threat in the future.

4. Market segmentation

Based on the external environment and competitive analysis the market segmentation is designed to target a specific market to increase the revenue in the international market.

Segmentation	Youngsters	working-class
Demographic Age Gender Occupation	16-30 Male and Female Students and workers	30-55+ Males and Females young professionals
Geographic	International region Urban	Domestic region Urban
Psychographic Interest Lifestyle	more featured latest technology Busy	Durable battery Busy
Behavioral   Usage Benefits sought	High Value for money	Low Quality

The potential tow target market are divided into youngsters and the working class in the international region. The demand for Mobile phone is more in youngsters than working people because working professional prefers laptops and tabs instead of mobile phones so the Huwie should target youngsters in the international market (Coughlan, 2019).

Demographic: Huwie should target youngsters in the International market that comes under 16-30 which comes under generation X and Y because these age groups have good technical knowledge and prefer to use the latest gadgets. Huawei should target both males females to increase their sales. The segment includes students and working people across the globe.

Geographic: Huwie should target the international urban region which includes all developed and developing areas.

Behavioral: Behavioral segments include usage rate that shows today's youngsters highly used smartphones for gaming, social media, and other activities while the benefits sought should be value for money because these targetted people generally look for the good and upgraded latest technology at affordable prices.

Psychographic: The photographic variable includes interest and lifestyle. the targetted market is highly interested in the latest technology with more features and application and their lifestyle is very busy and they don't get much time to charge their mobile phones.

5. Marketing Mix strategy

The marketing mix strategy will be helpful for Huawei to get the desired response of targetted consumers towards the brand. It includes product, price, and promotion strategy that is also known as 3P's analysis (Mars, 2019).

Product: The product strategy focuses on the quality of the product by focusing on battery life and different varieties of a new range of mobile phones. it will include designs and colors to attract both male and female youngsters. the main attraction will be the availability of inbuilt social media applications and games that will attract the target market towards the brand.

Price: Huwie should target a psychographic pricing strategy to increase its revenue. i.e. instead of posting $5000 as market price, Huawei should provide a $4999 price which will show that the organization is offering cheap prices. Also, Huawei should consider the prices of rivals and it should offer an attractively affordable price in order to gain a competitive advantage in the industry.

Promotion: Promotion is very useful to increase consumer awareness towards the brand thus, Huwie should promote its latest offering on social media platforms such as youtube, Facebook, Instagram, twitter because the young generation highly uses social media. by promoting the product on social media Huwie will get the advantage of increasing consumer size as well as the market size in the mobile phone indusrtry.

7. References

Blustiein, P. (2019). Schism: China, America and the Fracturing of the Global Trading System. Retrieved from CIGI: https://www.cigionline.org/publications/schism-china-america-and-fracturing-global-trading-system?gclid=CjwKCAjw7LX0BRBiEiwA__gNw5L6EhLrygbZ3CpLTxkFXv--xtBQTvwXXAM03KgabB4whZFD9KPnRBoCPmsQAvD_BwE

Coughlan, S. (2019). Smartphone 'addiction': Young people 'panicky' when denied mobiles. Retrieved from BBC: https://www.bbc.com/news/education-50593971

Hooker, L., & Palumbo, D. (2019). Huawei: The rapid growth of a Chinese champion in five charts. Retrieved from BBc: https://www.bbc.com/news/business-46480208

Jurevicius, O. (2013). PEST & PESTEL Analysis. Retrieved April 8, 2020, from https://www.strategicmanagementinsight.com/tools/pest-pestel-analysis.html

Mars. (2019). The marketing mix in marketing strategy: Product, price, place and promotion. Retrieved from https://learn.marsdd.com/article/the-marketing-mix-in-marketing-strategy-product-price-place-and-promotion/

Richter, F. (2019). Chinese Brands Make Waves in Global Smartphone Market. Retrieved from Statista: https://www.statista.com/chart/14958/global-smartphone-shipments/

Wong, S. (2019). Huawei - Statistics & Facts. Retrieved from Statista: https://www.statista.com/topics/2305/huawei/