Question

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

Let's begin with PESTEL Analysis.

Huawei is one of China’s leading smartphone manufacturers. Like everyone, Huawei is subject to forces from all six of the PESTLE categories: Political, Economic, Sociocultural, Technological, Legal, and Environmental. Identifying the individual factors that affect Huawei’s success can help us understand why Huawei is performing at its current level, and what could be done to change that. That’s why today we’re diving into a PESTLE analysis of Huawei — to see exactly what opportunities and threats it’s facing!

Political

Huawei itself is operated out of China, where most of its manufacturing also takes places. However, Huawei smartphones are sold across the world. In particular, their smartphones are extremely popular in the European Union (relatively speaking). As a result, Huawei is subject to political forces from across the globe, especially those relating to China and the European Union.

es from across the globe, especially those relating to China and the European Union.

The most notable area of politics is likely trade politics. Currently, trade policies are widespread and facilitate the export of good from China to the European Union. If the European Union were, for example, to place trade sanctions on China (for example, due to lack of regard for environmental concerns), this would have a huge effect on Huawei.

Economic

As above, Huawei smartphones are mostly built in China and sold abroad, which means they are subject to at least two geographies’ macro environments. In particular, Huawei’s economic success is a function of both the Chinese economy and the economy of its target market — mostly the European Union.

The relationship between these economic factors and Huawei’s success is very simple. If Huawei’s target markets perform well economically, Huawei is likely to sell more phones in that target market. Right now, the European economy is relatively stable, which gives Huawei a consistent amount of business regardless of economic conditions in other areas of the world.

China itself is also worth mentioning as a target market. Huawei doesn’t just export their smartphones — they also sell them to local consumers. As such, China’s rapidly growing economy has paved the way for growing numbers of smartphone sales — including sales of Huawei smartphones.

The Chinese economic landscape affects Huawei in a multitude of ways, beyond the growing number of smartphone purchases. Notably, labor costs in the country are quickly increasing, which is causing Huawei’s overhead (in terms of production costs) to rise proportionally. This will eventually force the company to increase the end cost of its goods, or to absorb the additional costs itself and suffer from reduced net profit. Thankfully, China’s economy is also a relatively liquid area of investment. This means that Huawei shouldn’t struggle should it need more funds to support it.

Sociocultural

As touched on above, there is a growing demand for smartphones across the world, including China. This is mostly a sociocultural phenomenon, although its effects are economic. However, this growing need for smartphones is affecting the entire market, not just Huawei.

One unfortunate sociocultural factor affecting Huawei is the widespread association Chinese products have with poor quality. This belief is especially prominent in Western countries like the United States, where some consumers stay away from technology brands like Huawei just because of their origin.

Technological

The most interesting technological factor for smartphone manufacturers is the rise of 5G. The successor to 3G and 4G, 5G is the fifth generation mobile communications technology, which boasts improved speed, lower cost, and energy saving. However, 5G technology requires new hardware — a need which will have to be filled by component manufacturers somewhere in the world!

Huawei has been quick to develop its own 5G modems, which will allow it to adopt the technology as early as entire years before other major competitors. What’s more, Huawei has extended an offer to sell its modems to smartphone pioneer Apple. All in all, Huawei appears to be riding the 5G wave, and it might seriously pay off!

Legal

Huawei is subject to all sorts of laws, across multiple jurisdictions. As a technology company, Huawei has to be especially careful with the area of patent law — ensuring it doesn’t infringe on others’ rights while protecting its own designs. Aside from that, Huawei has to manage the many consumer laws in its target markets, like the European Union. Typically, this has not been a problematic area for most smartphone manufacturers.

In China, Huawei is also subject to a range of labor and environmental laws. These laws often increase overheads by forcing manufacturers to treat laborers better and take environmental concerns more seriously, but there is simply no way around them.

Environmental

As mentioned above, Huawei is subject to a range of environmental laws. These mostly affect manufacturing processes within China, but — presumably — Huawei has to adhere to certain environmental standards to sell in markets such as the European Union.

Thankfully, Huawei has policies in place to reduce its waste products and carbon emissions. Although manufacturing companies typically have a hard time when balancing the massive need for new goods with environmental concerns, Huawei seems to be doing a reasonable job of managing this.

PESTLE Analysis of Huawei: Final Thoughts

Huawei itself is an excellent smartphone manufacturer. Throughout this PESTLE analysis, we’ve seen that Huawei is mostly affected by the country in which it operates: China. Ultimately, Huawei being Chinese has determined and will continue to determine crucial Political, Economic, Sociocultural (to an extent), Legal, and Environmental factors affecting the organization. Aside from this, Huawei sells its products on a global market — most notably including the European Union — where it has little power in influencing the decisions of regulators or circumventing them.

As a result, it seems that Huawei’s best bet is to make do with the macro environment it has — closely adhering to Chinese regulations and adapting to local needs — and focus on building and optimizing new technologies. It’s clear that Huawei wants to be at the forefront of mobile technological advances, especially with its early foray into the world of 5G, and it looks like that might greatly pay itself off.


Now let's start with SWOT Analysis

With an annual revenue for 2018 of more than $100 billion, Huawei is one of the fastest growing consumer electronics manufacturers. Huawei primarily competes in one of the toughest markets out there: the smartphone market. With business analysis tools like SWOT analysis, we can gain powerful insight into the tech giant’s current standings and future potential. That’s exactly what we’ll do today, by identifying the individual Strengths, Weaknesses, Opportunities, and Threats affecting this dynamic organization, as a follow-up to our recent PESTLE analysis of Huawei.

Strengths

Competitive pricing

One of Huawei’s biggest strengths is its extremely competitive pricing. For several years, the smartphone market was dominated by luxury brands such as Samsung and Apple, with little space for cheaper alternatives to compete. However, the prominence of smartphones has skyrocketed over the last 10 years, and that’s lead to a huge demand for budget-friendly devices. Huawei isn’t the cheapest smartphone manufacturer on the market, but it’s significantly cheaper than those luxury competitors we mentioned above.

High quality products

Despite its extremely reasonable prices, Huawei products are generally considered to be of relatively high quality. While their devices might not compete with names such as Samsung and Apple in terms of quality, they appear extremely well-made when compared to other budget-friendly smartphone brands. Many of Huawei’s smartphones are rated four stars and above on major retailing sites such as Amazon, which is a true testament to their quality.

Weaknesses

Lack of capital

As a company, Huawei is mostly stripped for cash. Comparing to Apple — which is the world’s largest company by market capitalization (almost a trillion dollars) — Huawei is worth peanuts. Relating to this, the Huawei organization itself has very little capital behind it. This means they need to be extremely careful in planning all of their business moves. More importantly, it leaves little money to invest in marketing or branding, which would be an essential next step for Huawei to become a top-tier brand in the eyes of consumers.

Weak brand

Perhaps as a result of the lack of capital mentioned above, Huawei does not have a particularly strong brand. While appreciation for budget smartphone manufacturers such as Huawei is indeed growing, they have long been viewed as plainly inferior choices. In the case of Huawei, this isn’t helped by their lack of marketing efforts. Admittedly, Huawei’s brand is stronger in some regions than in others: the brand is much stronger in the European Union than in the United States, for example. It’s also worth mentioning that Huawei’s weak brand is partially caused by the prominent Western belief that Chinese products are somehow inferior to their alternatives; this belief is especially prominent in the United States.

Opportunities

5G technology

5G is the next generation of mobile communications technology. As it turns out, Huawei has been quick to innovate, having designed and built 5G-friendly mobile modems even before major chipset manufacturers such as Intel. If Huawei is quick to ride the 5G train, they may be able to cement themselves as a luxury brand by offering technology unavailable even to top-tier brands such as Apple and Samsung. Huawei have even offered to sell their 5G modems to Apple, which could net them a large windfall. Naturally, this would come with all the tradeoffs of selling technology a major competitor.

SWOT Analysis of Huawei: Tackling Competition in Smartphone Market

Thomas Bush Apr 12, 2019

With an annual revenue for 2018 of more than $100 billion, Huawei is one of the fastest growing consumer electronics manufacturers. Huawei primarily competes in one of the toughest markets out there: the smartphone market. With business analysis tools like SWOT analysis, we can gain powerful insight into the tech giant’s current standings and future potential. That’s exactly what we’ll do today, by identifying the individual Strengths, Weaknesses, Opportunities, and Threats affecting this dynamic organization, as a follow-up to our recent PESTLE analysis of Huawei.

Strengths

Competitive pricing

One of Huawei’s biggest strengths is its extremely competitive pricing. For several years, the smartphone market was dominated by luxury brands such as Samsung and Apple, with little space for cheaper alternatives to compete. However, the prominence of smartphones has skyrocketed over the last 10 years, and that’s lead to a huge demand for budget-friendly devices. Huawei isn’t the cheapest smartphone manufacturer on the market, but it’s significantly cheaper than those luxury competitors we mentioned above.

High quality products

Despite its extremely reasonable prices, Huawei products are generally considered to be of relatively high quality. While their devices might not compete with names such as Samsung and Apple in terms of quality, they appear extremely well-made when compared to other budget-friendly smartphone brands. Many of Huawei’s smartphones are rated four stars and above on major retailing sites such as Amazon, which is a true testament to their quality.

Weaknesses

Lack of capital

As a company, Huawei is mostly stripped for cash. Comparing to Apple — which is the world’s largest company by market capitalization (almost a trillion dollars) — Huawei is worth peanuts. Relating to this, the Huawei organization itself has very little capital behind it. This means they need to be extremely careful in planning all of their business moves. More importantly, it leaves little money to invest in marketing or branding, which would be an essential next step for Huawei to become a top-tier brand in the eyes of consumers.

Weak brand

Perhaps as a result of the lack of capital mentioned above, Huawei does not have a particularly strong brand. While appreciation for budget smartphone manufacturers such as Huawei is indeed growing, they have long been viewed as plainly inferior choices. In the case of Huawei, this isn’t helped by their lack of marketing efforts. Admittedly, Huawei’s brand is stronger in some regions than in others: the brand is much stronger in the European Union than in the United States, for example. It’s also worth mentioning that Huawei’s weak brand is partially caused by the prominent Western belief that Chinese products are somehow inferior to their alternatives; this belief is especially prominent in the United States.

Opportunities

5G technology

5G is the next generation of mobile communications technology. As it turns out, Huawei has been quick to innovate, having designed and built 5G-friendly mobile modems even before major chipset manufacturers such as Intel. If Huawei is quick to ride the 5G train, they may be able to cement themselves as a luxury brand by offering technology unavailable even to top-tier brands such as Apple and Samsung. Huawei have even offered to sell their 5G modems to Apple, which could net them a large windfall. Naturally, this would come with all the tradeoffs of selling technology a major competitor.

Indian and US markets

Oftentimes, weaknesses can also be opportunities. Above, we mentioned that Huawei has a poor brand perception in the United States. As you’d expect, this means that Huawei has little penetration in the American market. The same is true for the Indian market. This means that both India and the US represent untapped revenue sources. If Huawei were able to develop a powerful strategy to enter these two markets, they could see a huge increase in their total revenue figures, given the number of potential customers.

Brick and mortar stores

Bricks and mortar stores are one of the reasons that brands such as Samsung and Apple stand a tier above all others. The luxury, boutique feel of a dedicated Samsung or Apple store not only provides potential customers with yet another way to purchase their devices, but also improves brand perception on a subconscious level. By opening their own physical locations across the world, Huawei would be able to improve its marketing and sales numbers simultaneously.

Threats

High competition

One of Huawei’s biggest threats is the smartphone market itself. The consumer technology industry is fiercely competitive across the board, and that’s especially true for the smartphone market. Not only does Huawei have to deal with competition on behalf of major brands such as Samsung and Apple (who both possess significant amounts more capital), but it also has to deal with the threat of new entrants. Even if top-tier brands don’t pursue the development of their own budget-friendly devices, a new competitor could join the market at any time and wipe away a portion of Huawei’s market share with just one technological advancement.

Rising labor and material costs

A less severe threat for Huawei is the rising labor and material costs. Manufacturing smartphones is relatively labor intensive (although some parts of the process are automated), so the slow but sure rise in Chinese labor costs is gradually increasing Huawei’s overhead. The same is true for materials, which are progressively more expensive simply due to increasing demand. Together, these factors will force Huawei to increase the prices of their devices, or suffer a reduction in profit margins.

SWOT Analysis of Huawei: Final Thoughts

Huawei has done an excellent job of entering one of the toughest markets there is: the smartphone market. With low cost, high-quality products, it shouldn’t be too difficult for Huawei to thrive, even in tough conditions. What’s more, Huawei has significant opportunity to grow its business, by entering and dominating new markets (including technological ones like 5G and geographic ones like India or the US) and improving its brand perception, perhaps through the use of brick and mortar stores. With that said, Huawei needs to keep a close eye on its competition and ensure it has plans in place to manage growing labor and material costs.


2.1 Research status in China
The domestic research selects the content related to the smartphone marketing of this paper, including Apple, Samsung, Huawei, OPPO, Xiaomi, Lenovo, Meizu and other major mobile phone manufacturers marketing strategy research. As well as consumer purchase behavior, big data analysis, network marketing, experience marketing and other aspects of the literature, Other literature research on the purchase behavior of luxurious smartphone consumers and improve the brand image of enterprises and suggest the flattening of channels is of great help to the topic of this paper.The main content of this chapter is the research on the marketing strategy of the main mobile phone manufacturers, through the help of some literature, so as to make the research of marketing strategy more in-depth and specific. According to the literature consulted, Jiang Xiaolin, Qiu Jing, Zhang Yanju, Wu Fangyong, Wang long, Song Tao, Yu Jingrui, Ji Yongze and others took the marketing model and experience marketing of Apple phones as the research objects (Qiuliang,2015). This paper puts forward that enterprises should pay attention to the individualized needs of consumers, construct an efficient sales network and attach importance to experiential marketing (Hedan,2015), and think that experiential marketing can meet the psychological demands of customers for product differentiation(Wufangyong,2014), individualization and diversification. Based on the investigation and research of customers, this paper constructs the customer loyalty model of experiential marketing, analyzes the relevant influencing factors and the model of experiential marketing to shape the value of brand image, and gives the concrete methods of implementation based on experiential marketing. It provides help for other domestic enterprises to carry out similar marketing models. Based on the background of the decline in demand in the domestic mobile phone market, the outbreak of e-commerce channels and the decline in Samsung mobile phone sales, Xu Zhaosheng studied the marketing strategy of Samsung mobile phones and pointed out Samsung's marketing problems and improvement measures(XuZhaosheng,2014).Luo Jiali, Liu Yun and Shi Yalei compare and analyze the marketing strategies of Samsung and Huawei and Samsung and Apple respectively, point out their differences and suggestions for improvement, and provide reference for Huawei's marketing strategy optimization. Through the study of Samsung's FD channel model, Zhao Yi put forward the strategy of improving sales in the aspects of cost control(ZhaoYi,2016), brand monopoly, platform service and so on. It also points out that strict control of channeling, encouragement of channel customers, improvement of after-sales service, strengthening of terminal promotion and other safeguard measures. Lei Peng specially studied the example of "Happy Base Camp" sponsored by OPPO mobile phones(LeiPeng,2016), and pointed out that enterprises should attach importance to advertising investment in order to enhance users' association with publicizing brands; Cao Tianyi through the film and television advertising creation and practical research on OPPO mobile phones. It is pointed out that advertising should be creative, photography should have a sense of presence, picture should be aesthetic and other key requirements, which has a good reference significance for Huawei's mobile advertising creation. Zhang Chenggang analyzed the importance of brand to mobile phone products, encouraged domestic manufacturers to launch luxurious smartphones, and opened differentiated; with foreign manufacturers in terms of products and services. Sun Shijie used Delphi method, quantitative analysis and qualitative analysis to combine the method of Delphi method, quantitative analysis and qualitative analysis. This paper puts forward a comprehensive evaluation system of domestic mobile phone brand value, which provides guidance for enterprises to enhance brand influence. Zhu Jing analyzed the motivation of mobile phone users and the influencing factors of purchase behavior from the perspective of consumer behavior; Jian Li Qingkun and Lin Zhijian specially studied the purchase behavior of luxurious smartphone users(JianLiQingkun ＆ LinZhijian,2012).The user purchase behavior model and conspicuous consumer psychological demand given in this paper are very helpful to enhance Huawei's luxurious smartphone sales. Meng Huixia's analysis of Vs and 4Rs marketing mix theory provides a certain help for the writing ideas of this paper.

Research status abroad There are great differences between foreign and domestic markets. foreign countries focus on social media, online and offline marketing, big data and user experience. It is pointed out that enterprises can use digital methods such as social media marketing to increase their interaction with users and let users participate in the marketing strategy of enterprises. And establish a long-term close relationship with enterprises, to explore the impact of new marketing models such as social media on customer perception of brand value. At the same time, this paper studies the use of big data analysis and marketing to establish the relevant market strategy. The research hotspots in foreign countries focus on the digital direction of marketing model, but the research on traditional marketing model is less. Anna S. Cui-Fang Wu points out three innovative models for customers to participate in customized products(Anna S. Cui-Fang Wu,2016), and TamillaMavlanova et al. point out that the credibility of internal and external evaluations of product experiences in the online consumer market can have an impact on seller sales. Increasing the credibility of the product experience helps online sellers refine their digital business strategies. Peter S. H. Leeflang, C. M. Sashi, Pierre R. Berthon, Bruno Godey et al.'s research points out that the digital direction of marketing can bring great opportunities to B2B/B2C marketing model. The adoption of digital innovation model can fill the cognitive gap between enterprises and customers, enhance the communication between the two and improve the relationship between the two, which is helpful to create value together. Their research shows that the use of social media marketing can enhance customers' interest in participating in enterprise marketing strategies(Peter S. H. Leeflang,1992),help to enhance customers' cognitive value of corporate brands, and bring about the relationship between personal activities and corporate strategies. It provides effective guidance for enterprise managers to formulate marketing strategies, and links customers, enterprises, brands, prices, loyalty and other marketing elements through social media to form a new social media marketing strategy.


Marketing theory
2.3.1 Core theory of marketing-4PS Marketing (Kotler, 2009), MBA, EMBA and other classical business management courses, marketing as an important module of management and education for managers included. Marketing is an activity, process and system that brings economic value to customers, partners and the whole society in the process of creating, communicating, disseminating and exchanging products. Mainly refers to the marketing personnel in the market to carry out business activities, sales behavior of the process.

The core of marketing theory is 4p theory, product, price, place and promotion. 4p concept is the basic theory frame of marketing. The theory holds that there are two factors leading to the final effect of marketing activities: one is the factors beyond the control of the enterprise, including political, legal, economic, social and cultural, technology and other environmental factors, called "uncontrollable factors", but also become an external factor; Another is the enterprise controllable factors, including production, pricing, channels, sales promotion and other factors of business activities, become enterprise controllable factors, that is, the internal environment. Controllable factor Uncontrollable factors Product price promotion place Natural environment politics law society culture population economy and technology Internal environment External environment

4P Theory-Product Strategy A product is anything that is supplied to meet the needs and the needs of the market, including tangible and intangible products. According to the value of products to customers can be divided into five levels: core products, basic products, expected products, improved products, potential products. Each of these five levels adds customer value.
According to the 4p theory, every product includes five levels:

(1) Core products: the most basic interests pursued by consumers when they buy a certain product, which is also the core demand of customers when they buy this product; The core interest layer is also the most critical part in the customer value level. The basic need to go to the store to buy clothes is to keep warm.

(2) Basic products: refers to the material forms that satisfy the core interests of consumers, for example: clothing is divided into top and bottom.

(3) Expected product: it means that the consumer hopes to satisfy some conditions when buying the product. For example, when you buy clothes, you want them to look good on you.

(4) Improved products: new benefits and services for consumers in addition to their core interests. The purpose of improving product is to realize product differentiation.

(5) Potential product: a product that is likely to be improved or upgraded in the future to meet new requirements that may arise from future consumers. Each enterprise's product will compete in five levels. When products, enter the market, the main goal is to meet the core interests of consumers; with the intensification of competition, enterprises begin to upgrade on the basis of the original products, so as to achieve product differentiation; with the excess capacity of products, the Enterprises have begun to tap the potential needs of consumers.

4P Theory--Price Strategy Price is the only factor that generates revenue in marketing, and it is also the best factor to adjust. However, companies must consider some specific factors when pricing, including the company, consumers, competitors and the market environment.
The pricing strategy consists of six steps:
(1) pricing objectives
(2) determining demand
(3) estimating costs
(4) analyzing competitors' products and costs
(5) choosing pricing methods
(6) choosing final prices.
When choosing the pricing, target, the company must ensure the maximum profit and the maximum share of the product. Therefore, only the choice of pricing objectives can ensure that the product price strategy is in line with the corporate strategy; there is a certain correlation between the price and demand of the product, usually the price and demand show a reverse relationship. Therefore, when determining the demand, we should comprehensively consider the customer demand and product characteristics, and estimate the elasticity of demand and price of the product; cost is one of the aspects that the enterprise must pay attention to, and the cost determines the lowest price. When the enterprise estimates the cost, it must pay attention to the possible cost of all the links, but also analyze the cost of competitors, in order to ensure that their products get a reasonable profit and market share. Once the pricing method is clear, the scope for determining the final price can be narrowed, at which point the company also needs to consider other factors, such as policy, risk, etc.

4P Theory-Place
The channel is the way that connects the product and the consumer, the marketing channel can influence the product decision-making. Some companies often use a lot of money to use middlemen's channels to promote products, or use advertising, etc., to increase the visibility of the enterprise. In addition, the establishment of the enterprise value network is also very important, the company's supply chain forward or backward integration, can strengthen the company's control of the channel.
The establishment of channel strategy needs to solve four problems:
(1) choosing middlemen;
(2) the service level of the channel;
(3) the management and control of the channel;
(4) the support of manufacturer to dealer. Marketing channels on behalf of certain interest groups, often conflict and competition, the establishment of a long-term, mutually beneficial channel model for the development of enterprises is essential. Table 2-2 Consumer product marketing channel Channel level Level 0 Level 1 Level 2 Level 3 Producer Manufacturer Manufacturer Manufacturer Manufacturer Intermediary Wholesaler General wholesaler Wholesaler Retailers Retailers Retailers End user Consumers Consumers Consumers Consumers

4P Theory-Promotion
Promotion strategy refers to the enterprise through advertising, personnel, sales, direct marketing and other means, so that consumers know about the company and products, so as to better guide consumers to buy products. There are eight common ways to promote sales: advertising, direct marketing, promotion, interactive marketing, word-of-mouth marketing, public relations, time and experience. Through the above method, can establish the good brand image of the product, improve the popularity of the enterprise. 2.4 Marketing analysis tools


PEST analysis model

PEST model is not only the analysis of market macro-economy(,2016), but also the basic tool for enterprises to analyze the external environment. The model evaluates the impact of political, economic, social and technological factors on corporate strategy and marketing strategies. The political environment includes a country's social system, the nature of the ruling party, and the principles, policies, and decrees of the government. Different countries have different social nature and different social systems have different restrictions and requirements of the organization of activities. Even in the same country where the social system remains the same, at different times and because of the differences of the ruling party, the attitude and influence of the principles, characteristics, and policy tendencies of the government on the organization and activities of the government are constantly changing. The economic environment, mainly includes the macroscopic and the microscopic two aspects content. The social and cultural environment includes the residents' education level and cultural level, religious belief, customs and habits, aesthetic views, values and so on. Technological factors include revolutionary inventions, new technological processes and technological trends, and businesses need to identify information that is useful to them.




Internal Environment Analysis-4p

Theory According to the current situation of the domestic smartphone market in 2016, the market share rankings TOP5 are: OPPO, Huawei, VIVO, Apple, Xiaomi, But Apple, Huawei and Samsung have most of the market share in the luxurious smartphone market; OPPO phones have worked hard in the mid-market in the past two years, won the love of young consumers, and will enter the luxurious mobile phone market in the future. Huawei is a strong potential competitor to luxurious phones.

Based on the 4Ps marketing theory of marketing, this paper analyzes Huawei's direct competitors Apple, Samsung and potential competitor OPPO on luxurious smartphones. Huawei Terminal Co., Ltd., established in December 2003, belongs to Huawei Technology Co., Ltd., and is one of the three core businesses of Huawei operators, enterprise networks and consumers. Huawei Terminal's products cover smartphones, personal computers and tablets, wearable devices, mobile broadband terminals, home terminals and terminal clouds. The enterprise defines the target audience of communication as the ideal action school, that is, a challenger with a vision, a group of people who are enterprising, have dreams and pursue, and firmly believe that dreams can be realized through hard work, hoping that everyone can enjoy the new technology

In terms of products, Huawei Terminal adheres to the high-quality strategy, differentiates and innovates, bravely breaks the technological limits, allows people all over the world to enjoy the joy of technological progress, and works with consumers all over the world to live up to their words and realize their dreams. The specific embodiment on the mobile phone product line is: the extreme technology of the Mate series, the extreme fashion of the P series, the extreme performance-price ratio of the G series and the extreme price ratio of the Y series. In short, Huawei Terminal strives to provide the best products for consumers around the world. Huawei Terminal products and services in more than 170 countries, serving 1 to 3 of the world's population, its 2016 global smartphone shipments ranked third, after Samsung and Apple, second only to OPPO in domestic market share. In second place. The company has set up 16 R & D centers around the world, such as the United States, Germany, Sweden, Russia, India and China, with more than 10,000 employees by the end of 2016. According to Huawei's 2017 annual report, Huawei's terminal business shipped 1.1% of smartphones for the whole of 2016. 3.9 billion units, with sales revenue of 179.8 billion, an increase of 43.6% over the same period last year. After Huawei was licensed to produce and sell mobile phones in China in 2005, the mobile phone business entered a stage of rapid development. In 2010, the retail number of Huawei's C8500 handsets exceeded 1 million in 100 days. By the end of 2010, Huawei had shipped more than 20 million Tianyi handsets for China Telecom. At the WMC exhibition in Barcelona in 2012, Huawei released the first mobile phone with a self-developed quad-core processor and a K3V2 chip, becoming the first mobile phone manufacturer in China to launch a self-developed CPU. In the same year, Huawei released the Emotion UI operating system. This is Huawei combined with its own product characteristics, based on the Android system deep customization of the operating system.The Ascend P1, Ascend D1 quad-core and Glory products launched that year are selling well in developed countries. In 2013, it pushed out the world's thinnest smartphone, the P6, with a thickness of just 6. 5%. 18mm, in the same year, the smartphone business made a historic breakthrough, and the Mate product for business people, which was launched in 2014 by TOP3 all over the world, has become a popular style in China. Established the image of Mate high-end flagship aircraft, Huawei terminal officially entered the high-end mobile phone club, with the Mate8, Mate9 and P9, P10 two generations of products on the market, With the help of the Leica brand, Huawei has successfully established its brand image of high-end smartphones in the world, ranking third in sales in the high-end market in 2016 after Apple and Samsung.Huawei has always adhered to the principle of customer-centered, product design based on customer needs as the starting point, with its technical advantages and low-cost strategy, has achieved business success.As a private enterprise, Huawei has established a standardized and transparent corporate governance structure, which provides an institutional framework for Huawei's sustainable growth. The analysis of Huawei phones in this paper focuses on the Mate series and P-series products, which belong to Huawei's flagship product line.Global smartphone sales in 2017, released by IDC, an international data company, showed that global smartphone sales reached 1.47 billion in 2017, up 2.3% from the previous year.Its Chinese market has performed well, with sales of 467 million mobile phones.The top five brands in the world by sales are Samsung, Apple, Huawei, OPPO and VlVO, which together account for nearly 20% of the world's market share.Huawei ranks third in the world with a market share of nearly 10%, maintaining steady growth against the backdrop of slowing growth in the mobile phone industry, up 30.2% year-on-year and 139.3 million shipments for the whole year.Huawei shipped 76.6 million handsets in China in 2017, up 21.13% from 62.9 million units a year earlier, according to IDC, ranking second with a market share of 16.4%. Huawei's two heavyweight flagship products, P9 and Mate9, released in 2016, continue Huawei's high-end mobile phone strategy-high-performance boutique, winning the recognition of global consumers for product configuration, functional design and product experience.P9 series products sold more than 10 million units in the world for the first time, the first time in Huawei's history of high-end products.However,according to Huawei's internal disclosure, Huawei's high-end smartphones have a domestic market share of only about 10%, while Apple has 83% of the market share; Huawei's high-end market share is only 3% in the international market.Therefore, the analysis of Huawei's high-end smartphone marketing strategy has a very practical reference significance for other domestic manufacturers to move towards the high-end market.


4.3.1 Product Strategy With the reduction of subsidies for mobile phone ODM brands by mobile operators, Huawei terminals have been transformed into their own brands since 2012. the initial product lines are Ascend D (Diamond), P (Platinum), G (Gold) and Y (Youth). Corresponding to high-end people, fashion people, concerned about performance-to-price ratio groups and young low-income groups, after years of market competition, Huawei mobile phones have broken through the high-end market monopolized by Apple and Samsung, and the high-end smartphone series has become the Mate and P series.Huawei attaches great importance to product development, and annual R & D investment accounts for more than 10% of sales. In the early days of entering the mobile phone field, market demand exploded at that time, and users did not attach importance to product quality.Huawei's product strategy is to sell whatever it does based on technology and products. In the past two years, as the capacity of the domestic mobile phone market has gradually become saturated, the speed of upgrading people using mobile phones has slowed down, and the level of market consumption has begun to transform and upgrade.Consumers pay more attention to product quality, Huawei's product strategy has also changed to market and customer-oriented, customers can do what they need.Huawei's product strategy has a principle, that is, customer-centric, create value for customers, and establish a customer-centric product system. (1) Product brand strategy-Huawei mobile phones adopt a dual-brand strategy: HUAWEI and Honor, in which the HUAWEI brand is oriented to both online and offline channels.And the product line covers the end market of high (Mate and P series), medium (Nova and G series, and low (Y series), while the Honor brand mainly runs through the online e-commerce channel, mainly focusing on the mid-end market of 1000 to 3000 RMB, and the consumer groups of the two brands overlap to a certain extent.The difference lies in the different focus of the channel. Huawei high-end mobile phone through the annual foreign and domestic press conferences and television, Weibo and online video placement advertising and other forms, gradually establish an international brand image, brand influence is growing year by year. (2) the product portfolio strategy one mate series is designed for domestic businessmen and politicians, with the strongest CPU,6 inch large screen, long 4000mAh battery life, GSM and business style U design, etc., and so on. (2) the product portfolio strategy one mate series is specially designed for domestic politicians and businessmen, with the strongest Zisheng inch large screen, long battery life, GSM and business style U design, etc. Deep love for male users between the ages of 25 and 39.P series is designed for stylish white-collar and female users, product appearance is compact and stylish, P series and Mate series are very different in product form and specification.Through market segmentation of different groups, Huawei's high-end mobile phones capture the needs of both business and fashion consumers. (3) differentiation strategy-Huawei high-end models use self-developed Kirin chip, on the one hand, it can define and optimize hardware parameters according to product demand, on the other hand, it highlights the brand image of Huawei as a national high-tech enterprise.Through the cooperation with Leica in the field of photography, the unique photo-taking features of Leica dual cameras have been introduced, which have attracted the attention of photography-loving users and become a bright spot different from Apple and Samsung phones.Through the cooperation with Porsche Design Company, the launch of luxury brand customized version of mobile phones, in the ultra-high-end market to establish a benchmark, enhance the brand image, achieve differentiated brand strategy.In addition, Huawei's high-end models are equipped with large batteries above 3000mAh, which is significantly different from Apple and Samsung in product life experience. (4) Product life cycle strategy-Huawei high-end mobile phones maintain the rapid iterative rhythm of the annual generation, releasing P series in spring and Mate series in autumn; Huawei high-end models are packaged in a calm atmosphere, in line with product positioning, and rich in accessories. For this reason, the accessories department has been specially set up to design related accessories for consumers, and has provided users with online software upgrade, V-worker-P hotline consultation, broken screen insurance and other sales and after-sales service, and the company has set up a Voc consumer sound department within the company. Huawei continues to improve the user experience throughout the product life cycle by advising products on behalf of consumers.


4.3.2 Price Strategy Product price is the only factor that can generate income in marketing mix, other marketing factors are regarded as cost, price is also one of the most important factors to determine the market share and profit of enterprise products. Huawei terminal is in the manufacturing industry, strict control of product cost, because its equipment and plant is less, fixed cost is relatively low, variable cost of human resources, R & D and operation, raw material cost accounts for a very high proportion, therefore, effective control of variable costs can reduce the cost of Huawei terminals. There are usually three types of product pricing methods: cost-oriented pricing, competition-oriented pricing and customer-oriented pricing. New product pricing includes skimming pricing and penetration pricing. Huawei's pricing strategy for high-end models is a combination of multiple pricing types, with different pricing methods at different times of the life cycle of the new product. Huawei’s high-end models are mainly divided into three categories: Mate series, P-series and Porsche plate-making. In order to increase product sales, they are priced according to cost-oriented pricing. In order to improve product sales, Huawei's high-end models are mainly divided into three categories: Huawei series, P-series, Porsche plate-making, mass market-oriented products, such as standard and high-end versions of Huawei and P-series. The target income pricing method is adopted to set the price according to the investment cost, expected sales volume and investment income of the enterprise. At the same time, prices refer to the competitive environment, with Apple, Samsung price gap, in the domestic and foreign markets have also formulated a differential pricing, domestic cheaper than abroad strategy, in order to affect domestic important consumer groups, improve product sales. In 2016, Huawei launched a customized version of Mate9 Pro Porsche, which sold for an astonishing 8999 yuan, which has become a hot topic of social discussion. The price obviously far exceeds the cost of the product itself. Huawei’s pricing strategy with high-end luxury brands uses a customer-oriented pricing strategy, pricing according to consumers' understanding of the value of the product, and working with luxury brands makes it easy to connect customers to Porsche cars. Thus affecting the judgment of consumers on the value of goods, Porsche customized version of the listing catered to the pursuit of a different part of the consumer mentality, to meet the special needs of customers. The combination of pricing strategies makes Huawei's high-end smartphone prices meet the needs of different consumers and become a powerful weapon for Huawei to gain a foothold in the high-end market.


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