This project covers Huawei Marketing Plan with latest marketing analysis and competitive analysis. According to Definition of Marketing, Huawei is creating interest in its potenetial clients and customers to buy his products and services.
This Huawei Marketing Plan illustrates Huawei market segments and the strategies they will employ to get customers and create a solid revenue stream. In this plan our unique focus to create or market a mobile phone with attractive features which gives Huawei an advantage over their competitors by giving customers a new outlet to enjoy mobile phones usage.
In this report we focus on the Pakistan mobile Phones market as a ‘cash cow’ in some countries noting that Pakistan was experiencing significant macroeconomic problems, yet the mobile market steams ahead as the effects of the global economic recession on the global mobile network are so far limited. Pakistan mobile market has potential as the usage of mobile connections are increasing day by day and with every new connection people need to buy a new mobile phone which make this industry more profitable and attractive for the investors.
The report contains the Marketing strategy, situation analysis and defining the target market for Huawei mobiles and the current trend of the mobile usage in Pakistan as people are now more focusing on the features of the mobile rather than the price. From last few years some mobile company’s enter in the competition by introducing there smart phones. SWOT analysis to define the company’s strength, weaknesses, opportunities and threats.
In Marketing mix strategy we more focus on advertising as the company need to launch their product in the market, so how can they market it and position it so that it create a positive image on consumers mind which gives them good share in the market in term of sales.
Mobile Phone Industry in Global Context
The cell phone industry is one of the fastest growths besides the Internet. Cell phones have gone through a huge change and its market has expanded globally. Since 1994, the cell phone industry has increased from 24 million to about 182 million in wireless phone and related devices operating worldwide.
The cell phone market is increasing very fast with today’s ever-emerging technology and innovation in improving cell phones. Today, society is living with advance technology and everyone wants to keep pace with the new technologies. Cell phone industry is growing larger because it has become a necessity. Parents are getting mobile phones for their teens because they want to communicate in case of an emergency and the wireless carriers have made it easy to add users to their existing plans. And carriers are becoming successful in getting parents to expand their plans to include their teens. This increases buyers and increases market size worldwide.
Scope of Competitive Rivalry:
The cell phone industry has become increasingly larger within the last few years as a result of more affordable cellular phones as well as lower service costs. Companies are competing in an advance technology and communication sector in which success attracts customers to buy their products and services. The market is very competitive because they offer the same products and services, but has different physical attributes to the phones and different costs, which buyers have choices to choose from. Companies want to provide the best products and services to attract buyers by lowering cost and improving products, which makes the cell phone industry very competitive.
Here are the main factors of competitive rivalry:
- Cell phone cost: Customers wants better services and products at a lower cost.
- Bundle functions into just one cell phone: For example E-mail, text messaging, internet
- New technology improvement: For example camera phones
Stage in Life Cycle:
The cell phone industry is in the Mature Life Cycle Stage, where nearly all-potential customers are already users of the industry’s product. The cell phone industry’s growth and profitability depends entirely on its ability to attract new customers. By increasing and improving the cell phones and services, it will attract more potential buyers, because technology alone will not attract buyers, instead companies want value-added services for mobile-phone securities.
Cell Phone companies attract buyers in two ways during the Mature Life Cycle State:
- Service: Making cell phone more affordable will attract buyers to buy more cell phones and increase competition between companies to lower service fee.
- Innovative Phone Style: The new designs and improvement in the physical appearance of the cell phones, and more add-on features attracts customers to buy it at a higher rate.
List of countries by number of mobile phone usage
This data has been extracted from Wikipedia:
|Rank||Country or region||Number of mobile phones||Population||% of population||Last updated date|
|World||Over 5.6 billion||7,012,000,000||79.86||2011|
|3||United States||327,577,529||310,866,000||103.9||June 2011|
|15||United Kingdom||75,750,000||61,612,300||122.9||Dec. 2008|
|17||Egypt||71,460,000||78,300,000||91.3||Egypt Ministry of Communications & IT, February 2011|
|28||South Africa||42,300,000||47,850,700||101.3||2008 Q3 www.cellular-news.com]|
|38||Saudi Arabia||46,000,000||27,137,000||169.5||Jun 2010|
|42||Sri Lanka||17,359,312||21,000,000||80.95||Dec. 2010|
|46||Hong Kong||13,264,896||7,008,900||187.9||Nov. 2010|
|49||United Arab Emirates||11,540,040||5,860,000||197.1||Nov 2011|
Boom of Communications in Pakistan
Pakistan is among the five most dynamic economies of developing Asia in terms of increased penetration of mobile phones, internet and broadband, according to the Information Economy Report, 2009 published by the United Nations Conference on Trade and Development (Unctad). Among the five countries in terms of mobile penetration in South Asia, Pakistan is placed at number three followed by Sri Lanka and Bhutan. Iran and Maldives are ranked above Pakistan.
The report sees the mobile industry as a ‘cash cow’ in some countries noting that Pakistan was experiencing significant macroeconomic problems, yet the mobile market steams ahead as the effects of the global economic recession on the global mobile network are so far limited.
With an increase of 38% over 2008, the television advertising revenue for 2009 in Pakistan was Rs 16.4 billion ((US $200m), accounting for about half of the total ad market during the year. The TV ad revenue is continuing to rise as a percentage of total ad revenue, mostly at the expense of the print media ads. The biggest spenders in 2009 were the telecom companies with Rs 8 billion, followed closely by fast moving consumer goods (FMCG) sector with Rs. 7 billion.
In addition to financial services, the two key service sectors with explosive growth in last decade (1999-2009) in Pakistan include media and telecom, both of which have helped create jobs.
APP reported that overall size of Information and Communication Technology (ICT) industry in Pakistan has crossed more than $ 12 billion, of which $ 1 billion is foreign direct investment (FDI).
Pakistan has one of the fastest growing the tele-density in the world, currently at 63.5 percent, while neighboring India is just 37 percent.
There are more than 95 million mobile connections in Pakistan and are still growing in numbers. This is exponential growth as mobile telephone market has seen a 14-fold increase since the year 2000.
“To focus on our customers’ market challenges and needs by providing excellent ICT solutions and services in order to consistently create maximum value for our customers.”
Huawei Core Values:
Huawei exists to serve customers, whose demand is the driving force behind our development. We continuously create long-term value for customers by being responsive to their needs and requirements. We measure our work against how much value we bring to customers, because we can only succeed through our customers’ success.
We win customers’ respect and trust primarily through dedication. It includes every effort we make to create value for customers and to improve our capabilities. We value employees’ contributions and reward them accordingly.
Continuous improvement is required for us to become better partners for our customers, improve our company and grow as individuals. This process requires that we actively listen and learn in order to improve.
Openness & Initiative
Driven by customer needs, we passionately pursue customer centric innovations in an open manner. We believe that business success is the ultimate measure of the value of any technology, product, and solution or process improvement.
Integrity is our most valuable asset. It drives us to behave honestly and keep our promises, and, thus, win our customers’ trust and respect.
We can only succeed through teamwork. By working closely in both good times and bad, we lay the foundation for successful cross-cultural collaboration, streamlined inter-departmental cooperation and efficient processes.
Huawei Brand Portfolio
Our offering provides the building blocks for the cloud, spanning applications & services, storage & security, and O&M
Our end-to-end infrastructure enables operators to build an efficient, profitable, and scalable network, for today and tomorrow
Our diversified device portfolio provides a smarter and simpler user experience for individuals, homes and businesses alike
HuaWei Marketing Strategy
General environment means and includes the general condition under all the factors influencing them. These factors may be social, cultural, economic technological etc.
The demand of mobile phones in Pakistan is high from last few years.
These uncertainties that is extremely variable in the political condition of Pakistan. Constant political instability does affect the company’s relation with the government.
Economical growth worldwide is in a big recession which needs careful manipulation but potentiality of the mobile market in Pakistan is increasing and higher than any others sector
Population and educational growth in Pakistan leading to expansion of the sector needs for cell phones and people depend more and more on mobile communication everywhere. Literacy & illiteracy level is not affecting using cell phones but affecting high technological cell phones, this fact needs to be considered by Huawei.
Level of technology in the world is increasing. Internet level of awareness & usage for individuals & industrial aspect are increasing in Pakistan. New technologies in the cell phones are increasing. Future plans for technological linkage between cities, universities, colleges, hospitals and other institutes are increasing and can be connected to cell phones Levels of usage of the E- Technology (online bidding, billing, complaints, blogging etc) are high and trendy. So Huawei must have this in mind that to enter in market of Pakistan they need to keep these technological points in their mind while launching cell phones in Pakistan.
There are 19260 cell phone producers in the world, but there are more than 15 big companies competing at the world level Market and in the Pakistan level market.
Cell phones industries are one of the most profitable industries everywhere and the Market is increasing
The Main Key Competitors in the Local Market of Huawei Mobiles are:
The competitors in the International market are:
- Apple I-phone
- Black berry
Its target market includes all age groups except children. The current trend in Pakistan is of smart phones which is increasing day by day due to which every company is introducing there smart phones with new features to attract the business class as well as students. Recently few new companies entered Pakistan market with their new attractive phones. Dual sim phones are also in hype which attracts the students and people belonging to local class, who use two and more network connections but do not like to carry two phones so they prefer dual sim mobile phones.
People looking for mobiles, and who have different preferences in mobile usage, moreover People located in Lahore which also include office workers, college universities students and business man who living a busy life having a great need to stay connected with their colleagues, friends, family and business mails. So Huawei mobiles have a great opportunity to target these customers by giving wide range of mobile phones with added features in the market.
Statistics about the target market (according to the last census)
Area: 1,014 km²
Population (1998 census): 5,143,495
Average Lahore household size (1998): 7.12
Lahore Population Trend
Huawei SWOT Analysis
- The Huawei has wide range of innovative touch screen phones which can be helpful in capturing the Pakistan 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 Pakistan 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, can target more market segments.
- As in Pakistan they are giving supplies to UFONE and ZONG so they have opportunity to interconnect with other telecom companies in Pakistan
- There is high hype and interest of keypad phones in Pakistan 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 Pakistan are almost certainly going to fall when other companies undercut the price of their phones
Include almost all Urban; areas of Pakistan.
Gender: Male; female except children
Age: 15years to 60 years
Huawei can mainly target the elite class, upper middle class and middle class in urban and sub-urban areas – primarily Lahore.
Young generation, executives and business class who love to have a mobile with all features they need.
Huawei Marketing Objectives
Set an aggressive buy achievable objective for the first and second years of market
First-year Objectives – Company should aim for a 2 percent share of the Pakistan mobile phone market through unit sales volume
Second-year Objectives – are to achieve a 10 percent share based on sales
- Extend on the Huawei brand name and link to the established meaningful positioning.
- Extend on Huawei image of innovation, quality, and value.
- Measure the awareness and response in order to make adjustments to the marketing campaigns as necessary.
- 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.
- Primary business target is to partner with cell phone service providers, UFONE, WARID, ZOND and TELENOR
- 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.
Marketing Mix Strategy
A— Pricing Strategy
The company should use the price skimming strategy that is to say that the company for this product should keep the price higher than the competitor and keep the target market fixes on level. Accordingly the management would be able to recover the cost as well as some profit and we all are aware of that every business seeks some profit to continue on the production.
According to distribution channel there is no discrimination in price since it has been introduced in Pakistan with the help of UFONE and ZONG. All the prices such as sale price retail sale price and purchase prices are the same as the product was launched.
B— Distribution Strategy
It should be available in all the mobile phone centers such as Hafeez Center etc. in Lahore.
Following the some of the distribution channels in Pakistan
- Mobile Zone
- United Mobiles
Product positioning is based on what image the company is going to portray in the customers minds. In this regard, the company should position its product with respect to the customer’s needs such as, executives, students and business men.
C— Product Strategy
The Product Mix includes basic phones, Smart phones, Touch phones which cater to the needs of people accordingly.
- User friendly
- Longer Battery life
- Longer talk time
- Good camera and video recorder (price varies)
- Fulfills requirement of every type of customers
- Stable quality.
- Various packages and models.
- It comes in a protective packaging with consistent quality.
- It is a multinational brand with quality standards kept same for all countries.
Huawei is providing two different categories in mobile phones.
- Smart Phones
- Touch Phones
D— Advertising and Promotion Strategy
In the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Marketing communication decisions include:
- Use broadcast media to provide coverage of 80% of the target market over a 6 month period.
- Reach 60% target audience at least three times over the six month period.
- Concentrate heaviest advertising in main areas of the Lahore.
Almost 135 Advertising agencies exist in market and Huawei should select that Advertising Company which is known by their outstanding work in Pakistan.
The Huawei strategy for promotion is to use all the channels to promote the product and to make the loyal customers or brand customers. Only by heavy promotion company can achieve the goal by using the 360-degrees of promotion it means all the channels of promotions including Print media, Electronic media and other Support media. For TV commercials see Ethical Marketing Report.
Huawei must advertise the product in a manner that it will attract the customers and general public who can buy it or who afford it.
ATL & BTL Campaigns
Personal Selling & Sales Force
Huawei must follow the distribution channels or you can say distributors sell the goods on behalf of company and getting the commission for their services and they must open some of their company owned outlets or they can hire brand activation agencies, so that they can help the brand in activation through kiosk activities in different institutes and universities etc.
Huawei must use different sales promotion like
- Offer Free memory cards
- Prize coupons
Public Relations & Publicity
Huawei need to give much importance towards the solid public relations and feedback.
Sponsorship and Event Marketing
Once the market for Huawei Mobiles has been established but just to make it more appealing among the people, the company can sponsor the events like
- Cricket tournaments
- Youth adventures