Huawei Technologies Marketing Plan Template
Please use this Term Paper Template to organize Marketing Plan.
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Marketing Plan
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Huawei technologies remain one of the leading Chinese multinational telecommunication and networking establishment that was founded in 1988. Following 20 years of development, the organization grew to be one of the most known suppliers of telecommunication and networking equipment globally. In 2012, the organization was listed as one of the most extensive networking and telecommunication manufacturers globally. During the early stages, Huawei is alleged to have placed its emphasis on the development of an in-house research and development (R&D) strategy to remain competitive. With an intense research and development strategy, aggressive marketing approaches, and the undercutting of the prices of its products, Huawei expanded at a faster pace over the recent years, with its product solutions deployed in close to 140 nations. In 2014, the organization was believed to have recorded a net profit of over $5.5 billion. Its networking and telecommunication equipment mainly serves some of the largest communication entities and operators globally. The fast growth of this organization not only reveals its reputation in varied economies such as China, but equally establishes the fact that the organization is currently a market leader in several segments of the telecommunication industry globally. The growth and development of Huawei technologies within the global market is a testament to how the organization in a developing nation successfully strategized to access the global market. This marketing plan intends to illustrate Huawei's marketing strategies, as well as the establishment's market segments. The audit intends to underscore the measures Huawei employs to maintain its customers while on the other hand, creating a robust and efficient revenue stream. The focus of this plan lies in the need to create or rather market a voice recognition device in an effort directed towards ensuring that the organization creates an advantage over its competitors. The report will, in this case, the detail, the organization's current marketing environment, its marketing objectives, and marketing strategies.
TABLE OF CONTENTS
1. CURRENT MARKETING ENVIRONMENT………………………………………………………………………….……
1.1 MARKET SEGMENTS……………………………………………………………………………………………..
1.2 PRODUCT ENVIRONMENT…………………………………………………………………………………….
1.3 COMPETITIVE ENVIRONMENT………………………………………………………………………………
1.4 DISTRIBUTION ENVIRONMENT…………………………………………………………………………….
1.5 MACROECONOMIC ENVIRONMENT…………………………………………………………………….
2. MARKETING OBJECTIVES……………………………………………………………………………………………………
3. MARKETING STRATEGIES…………………………………………………………………………………………………….
3.1 TARGET MARKET……………………………………………………………………………………………………
3.2 PRODUCT STRATEGIES…………………………………………………………………………………………
3.3 PROMOTION STRATEGIES……………………………………………………………………………………
3.3.1 CUSTOMER SERVICE………………………………………………………………………………
3.3.2 ADVERTISING…………………………………………………………………………………………
3.3.3. PERSONAL SELLING………………………………………………………………………………
3.3.4. SALES PROMOTION………………………………………………………………………………
3.4. DISTRIBUTION STRATEGIES…………………………………………………………………………………
3.5. PRICING STRATEGIES……………………………………………………………………………………………
4. CONTROLS……………………………………………………………………………………………………………………………
APPENDIX………………………………………………………………………………………………………………………………
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Marketing is a science and an art. According to Viardot (2014), marketing is a process of planning as well as executing the development, promotion, pricing, and distribution of goods, services, and ideas with the intent of creating an exchange that satisfies an organization or individual objectives. Globally, the role and functions of mobile brands are increasingly gaining significance and importance in this epoch's telecom industry. Huawei’s marketing situation mainly encompasses the firm’s cultural, economic, political, and natural factors that present opportunities as well as potential threats to an organization. Given this, the organization may lack the capacity to control its marketing environment; however, the firm may have the capacity to make appropriate marketing decisions from the realization of its marketing environment. The organization invested close to 10 percent of its annual sales volume in the design of new products and research and development. Huawei's efforts saw the contraction of its sales that reached $8.2 billion in 2005, with 58 percent of these revenues generated from the international markets. The firm's overseas sales equally doubled in five years. In 2006, the company had employed close to 62,000 workers, with 48 percent of this population dedicated to its R&D and marketing (Viardot, 2014). This saw the organization increase its capacity to provide its products as well as services to 300 other telecom giants globally.
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Businesses in this age and time are continually establishing measures directed towards undertaking client segmentation analysis with the intent of understanding the factors that motivate their clients to shop for their products while equally aligning their established marketing campaigns. Huawei often relies on the use of next generation technologies with the intent of ensuring the organizations apply the targeted marketing approaches that increase the brand's awareness and revenues. Huawei's customer segment mainly relies on the use of big data analytics, the manageable cloud platforms, and Wi-Fi with the intent of determining the firm's client's demographics that is segmented in terms of the genders, age, occupation, interests, as well as spending habits (Viardot, 2014). The organization, therefore, relies on this information in configuring, scheduling, and the execution of its marketing strategies in an accurate manner through the firm's marketing resources. These resources are directed towards improving client services to maintain the firm's loyal clients, identifying some of the potential gaps within the market, thus enabling the firm to gain a competitive advantage over its competitors and increasing the organization's revenues and product awareness.
The Chinese electronics firm Huawei recently unveiled another large-screen smartphone besides the last luxury wearable’s and tablets designed with the intent of meeting the firm’s client’s needs. Huawei revealed that it was focusing on being the second global vendor within the industry, a spot that is currently held by Apple. In an effort directed towards meeting its client's growing needs, the organization launched a premium smartphone claiming an improved battery life and better performance than those of its rivals such as Apple and Samsung. With a six-inch screen display, the device is considered to have a smaller footprint than other phones. This product enabled the organization to boost its market share by 7.7 percent during the third quarter behind Apple and Samsung. On the other hand, Huawei is currently taking the leading position within China, followed by Samsung. However, the firm's offering remains limited over the recent years following an agreement to engage in the production of Nexus phone primarily for Google (Viardot, 2014). Reports from the company revealed that its total consumer device revenues streamed and grew to 70 percent in 2015 for the shopping of its products to various markets.
Huawei mainly relies on the Green Partner, Green Pipe, and Green World that incorporates circular economic concepts in the design of its products, with this considered as a prerequisite used in minimizing the organization's environmental impact. The organization equally relies on innovative approaches that denote the essence of using the L.C.A. methods as well as the design for environmental factors to maximize the use of efficient products while equally reducing carbon footprints (Sunny, 2016). The company equally incorporates a concept of energy conservation as well as environmental protection into the design of its products, an aspect that has often enhanced the firm's environmental performance in its product lifecycles.
Table 1. Huawei’s Product Development
Product Lifecycle
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Product Design Considerations
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Acquisition of Raw materials
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The organization reduces raw materials through the use of renewable product materials such as recyclable materials, biological materials, and green packaging materials.
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Production as well as transportation
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Minimizing the use of packaging sizes and manufacturability
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Use
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Low power designs and energy efficiency of an external power supply. The firm uses intelligent power management software (Sunny, 2016).
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Disposal
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The use of recyclable and easy to disassemble materials
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Huawei is alleged to have increased its revenues from consumer businesses that rose by close to 45% and reached 349 billion, following its carrier business dropping of around 1.3 percent to over 294 billion. Enterprise services, as established in this case, remains the third-largest revenue bucket for the organization, with this accounting for 74.5 billion CNY. The company remains reliant on the Chinese market, which is alleged to account for 52 percent of all its revenue streams in 2018. However, the organization's business in the U.S. U.S. lags behind than that of Asia Pacific, Europe as well as the Middle East in regards to revenues. According to Russell (2019), Huawei is believed to be riding on momentum within the consumer's space following its efforts to launch the P30 as well as the P30 Pro phone that comes with an impressive spec, an aspect that saw the organization climb in the sale of its smartphones. On the other hand, Huawei is believed to have grown in the shipment of a volume of 33.6 percent, with this attributed to the sale of its Honor brand in the market. Huawei was, in this case, rankled third following the achievement of a 16.1 percent market share in 2018.
Figure 1. Huawei’s End of the Year’s Financials showing its Consumer Devices Business
Source: Consulted From
With an annual revenue stream of $100 billion in 2018, Huawei remains one of the fastest-growing electronics manufacturers in the market. The organization, therefore, competes in a tougher market with several leading brands (Li & Cheong, 2017). In underpinning the organization's competitive environment, the use of a SWOT analysis can provide insights into the giants standing in the market, and its potential in the future.
Table 1. Huawei’s SWOT Analysis
Strengths
Competitive Pricing. Huawei's strength lies in its competitive pricing structures. For a number of years, the market had been dominated by other brands such as Apple, Samsung, and Lenovo. However, the prominence of smart devices increased, detailing the rise in the demand for budget-friendly smartphone devices (Li & Cheong, 2017). Huawei is however not the cheapest manufacturer but offers cheaper products that those of its competitors mentioned above.
High Quality Products. Despite its efforts to provide products at reasonable prices, the organization's products are relatively high in terms of quality. While the firm's devices may not compete with other brands such as Apple and Samsung in regards to quality, the products are designed to suit the needs of clients (Li & Cheong, 2017). The organization's products were recently rated with four stars above those of its competitors in retailing sites that include Amazon.
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Weaknesses
Lack of Capital. Huawei is equally stripped for revenues as compared to Apple, which tends to be the world's largest entities regarding its market capitalization (Li & Cheong, 2017). Huawei, as an organization, therefore, has limited capital, with this implying that the firm needs a proper planning approach in its business models.
Weak Brand Name: Huawei is believed to have a weaker brand name in the market due to the lack of proper capital. While it is appreciated for the offering of budget phones, the company is viewed as an inferior choice in other markets, an aspect that is equally attributed to the lack of effective marketing efforts (Alkhawajah, 2019). However, the brand is stronger in other regions, such as within the European Union and in China.
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Opportunities
Investment in the 5G Technologies. 5G technologies are regarded as the next thing in the communications industry. Huawei is believed to have been quick in the implementation of this innovation, efforts that have seen the firm develop chipsets and modems that are friendly to the technology (Alkhawajah, 2019). Riding on this technology may enable the firm to cement its competitiveness against other global giants such as Apple and Samsung.
U.S. Markets. Huawei, as established earlier, has poor brand recognition in the U.S. This reveals that the organization has poor penetration in this market. The establishment of a powerful and effective strategy would, therefore, enable the firm to penetrate the market.
Bricks and Motor Stores. The ownership of th4ese stores has enabled brands such as Apple and Samsung to have a higher tier than other firms in the industry. This, therefore, improves the perceptions of these brands (Alkhawajah, 2019). This details the need for the brand to open its own physical locations globally while equally improving its marketing as well as sales simultaneously.
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Threats
High Competition in the Market. The consumer industry is currently undergoing fierce competition globally. Huawei is therefore forced to deal with this competition with other brands such as Apple, Samsung, and Lenovo, who have the required levels of capital (Alkhawajah, 2019). New competitors in the industry may equally pose a threat to Huawei.
Rising Material and Labor Costs. Another threat to Huawei is the increasing costs of materials and labor, as evident in the case of China that increased its labor costs (Alkhawajah, 2019). This is equally true for materials, which are currently expensive due to the increase in demand for products.
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