Huawei (Report Draft) - Marketing Principles PDF

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Marketing Principles...

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Table of Contents Introduction

2

Marketing Strategies

3

Core Customer Value Actual Product

4 4

Augmented Product

5

Market Segmentation 6 Geographic

6

Demographic

7

Psychographic

7

Behavioural

8

Market Targeting

8

Type chapter title (level 2)

5

Type chapter title (level 3) 6

Differentiation 4

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Positioning

4

Conclusion

4

Introduction The objective of this report is to identify and discuss the current marketing strategies that Huawei approach and how it positioned in today’s competitive world. Business branding is essential for an organization as its portrait an identity. It leaves an impression on consumers which allows them to distinguish between the different product and brand while making purchasing decisions (Smithson, 2015). Smartphone today have a significant impact on our lives, not only it is essential for our daily communication which has changed the way we communicate with each other. It also offers various types of entertainment and convenience that have already become a companion to us. Over the past decades, there has been an incredible development in the smartphone industry as companies continue to introduce new features to their products to gain a competitive edge. Competition breeds innovation and fair prices which certainly benefits the customers. Huawei Technologies, a Chinese company that was only founded in 1987, has surprised everyone with the rapid growth and worldwide recognition over a short period. Back then, it was just a low-profile Chinese company in Shenzhen with little presence outside of China. It was during 2009, where chances came knocking at their door, and they seize the opportunities given by Teliasonera, a Swedish telecom giant set to build the world’s first fourgeneration wireless network. In that same year, Huawei was also given another big project which saw them surpassed two established telecom giants Nokia and Ericsson (Johnson, Groll, 2019). Today, Huawei has become one of the world’s largest telecom technology brand that is competing with another behemoth like Apple and Samsung. Through the operations in 170 countries which reached out to more than one-third of the world, the population has helped them to exceed $107 billion of revenue last year. Through these years, Huawei has transformed its brand image from a low-cost phone to brands with quality and premium products (Johnson, Groll, 2019). An electronic device such as a smartphone it requires comparison among the various brand models. Customer will compare the different types of quality, features, specification, design and price that the brand has to offer. Hence, Huawei’s smartphone for marketing consideration belongs to the ‘Shopping’ category. Over the years, Huawei has developed more range of the premium smartphone to compete with Apple and Samsung. For them to stay competitive, both companies have just released their latest smartphone model with the enhanced features in the same sector. Huawei’s P30 and Apple iPhone 11 Pro Max are always compared among the customers (Boom, 2019). 409 words

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Marketing Strategies In order to achieve and meet the customer needs and wants, it is essential for a business to examine the product and by using the three product levels model. It helps the company to understand the different levels of needs from the customers by configuring its business by 2|Pag e

adding value to their products. The three products consist of core customer value, actual products and augmented product with each level adding a different aspect of value to the products (Claessens, 2015).

Augmented Products After-Sale Service Brand name

Actual Products Core Customer Value

Quality Level

Product Support

Features

Design Packaging Warranty

Delivery and Credit

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Core Customer Values For Huawei, their core customer values for their products is to bring convenience to their customers by providing a wide range of good quality smartphone with a competitive price.

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Comparing to Apple and Samsung, Huawei’s users can enjoy the same quality but at a much lesser cost (Browne, 2019). Actual Product For actual product, the constant innovation and quality of the products have benefit Huawei by gaining a reputation in the global market (Global Times, 2019). Many people base their choice of a smartphone on the quality of its camera. Huawei understand it and in order to meet the market demand, Huawei has enhanced its camera features by collaborating with Leica the famous camera brand.

Figure 1. Huawei’s P30 features a super powerful camera system with Leica camera lens. Retrieved 26 March 2019, from https://metro.co.uk/2019/03/26/huawei-unveils-p30-p30-pro-smartphonesglobal-launch-event-paris-9024658/ The collaboration with Leica gives Huawei a prominent edge on its smartphone over its competitors. Being one of the leaders for over 100 years in producing premium cameras enables Huawei to offer the market with the best photography feature in their smartphone (Lee, 2018).

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OK Augmented Products Lastly, for augmented products, Huawei provides its customers with their HUAWEI HICARE Service, which is an after-sales service. Under this HICARE service, Huawei ensures that 4|Pag e

their customer has an ease of mind when purchasing their smartphone with a two years warranty. It also comes with a free screen replacement for their premium products (Figure 2). Apart from that, Huawei also offers a Huawei Service Day. Huawei’s customers can receive a complimentary service for their phones. (Figure 3). -73 Words

Figure 2. Huawei’s HICARE after sales service. Retrieved 26 March 2019, from https://consumer.huawei.com/sg/support/hicareservice/

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Figure 3. Huawei’s Service Day. Retrieved 26 March 2019, from https://consumer.huawei.com/sg/support/service-day/

Market Segmentation

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To better understand the market, segmentation is essential as it helps to develop the marketing strategy by understanding and cater to the needs and wants of the current and prospective target market. It has benefit Huawei by dividing and categorize the different characteristics of the market demand by focusing on the right customer (Bhasin, 2018). It enables Huawei to improve and learn more about their customer so that they can better cater to their preferences and needs. There are four different types of segmentation strategy which consist of geographic, demographic, psychographic and behavioural.

Geographic Firstly, geographic segmentation creates different target customer groups based on their geographical location. It segments the market by areas such as cities, region or even neighborhoods. Different customers have various needs and want (Tow, 2019). Huawei is intensively distributed worldwide with operation in more than 170 countries (Johnson, Groll, 2019) shows that they are continually improving their global brand position by reaching out to more consumer. In Singapore, Huawei currently has a total of 11 Huawei Concepts Stores intensive distributed. All these 11 stores are located islandwide (Figure 3). It offers convenience to the customers as Huawei have an extensive range of product which caters to different market groups with different purchasing power. -198 words

Figure 4. A screenshot of Huawei’s Singapore Store List. Retrieved from https://consumer.huawei.com/sg/store-list/

Demographic Segmentation

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Demographic segmentation is mainly based on variables like age, occupation, income and interest. It is essential for a company as it supports the business with information (Tow, 2019). Huawei phone is relatively affordable. Their consumer is mainly from all income group of users, mainly because they offer a wide range of smartphones that caters to different needs. Their smartphone listed on their official website today are ranging from $298 to $2298. Customers who are from the low-income group could also enjoy the quality smartphone with the necessary features from Huawei. In addition, students these days are also able to afford to an own a smartphone from Huawei. Professional like the photographers would prefer Huawei as they would like to utilise the camera features from Leica on Huawei’s smartphone -88 words (974 WORDS)

Psychographic Segmentation Psychographic segmentation differentiated by the lifestyle, social class and personality of the customers (Tow, 2019). The lifestyle of Huawei’s smartphone users belongs to the hectic and busy lifestyle. Today Huawei smartphone is well-known for its camera features after they have collaborate with Leica. Having one of the best camera lenses in their smartphone, it is easy to say that Huawei owners are more extroverts who enjoy the fun of taking photos and videos. The advance camera features not only allow them to take a much better photos but it also allows them to use it more often especially during social events. Whereas for personality, Huawei users is more towards the working class and skilled working class.

https://www.digitalartsonline.co.uk/reviews/creative-hardware/huawei-p20-pro-is-best-phone-forartists-designers-photographers/

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Behavioural Segmentation Behavioural segmentation is customers are divided according to their buying behaviour like occasion, user status, brand loyalty and benefits sought and determine what kind of reactions and decisions the customer goes through during the buying process.

Figure 6. A photo of Huawei customer who purchase a smartphone with the $100 voucher – Consumer Journey. Retrieved from https://www.straitstimes.com/tech/huawei-54-smartphone-deal-nearly-2000who-registered-receive-100-voucher The photo above (Figure 6) shows that one of customer who just purchase the new Huawei phone with the $100 vouchers that was given out to those who was promised but missed out on the $54 smartphone promotion deal (Wong, 2019). Through behavioural segmentation, Huawei will be able to identify this group of customers buying behaviour are based on price.

Figure 7. A screenshot of Huawei VIP website – Consumer Journey. Retrieved from https://consumer.huawei.com/my/campaign/vip/artists-designers-photographers/ For every business, it is important to retain their customer loyalty. Huawei has also offered the VIP programme to those loyal customers by registering through their website after they have purchased their new phone. It is necessary for every business as they deserved recognition and rewarded. 8|Pag e

Market Targeting https://www.essay48.com/marketing-strategy/13640-Huawei-Marketing-Strategy google - huawei target market 2019 In order to gain attention from the market among the other big brands like Apple and Samsung back then, Huawei have to approach the marketing penetration strategy. Huawei has been targeting the lower-income group since the day when they enter the smartphone market (Roll, 2018).

Huawei has been targeting the lower-income segment since the day one when they enter the smartphone market (Market-penetration – lower your price against competitors and get attention from buyers) they continue to hold on to his market with the low cost phone that they are offering today. After dividing the large diversified customer market into smaller groups, Huawei are able to properly target their market by evaluating each segments attractiveness.

Differentiation

5 Company Competitive Advantage in the Marketing Strategy of Huawei Lower cost from china -

https://www.essay48.com/marketing-strategy/13640-Huawei-Marketing-Strategy

FOCUSED ON INNOVATION AND GLOBALIZATION, Huawei strategically ultilizes its resources according to market demand and has adopted a new marketing strategy What makes Huawei stand out from the other competitors like Apple and Samsung is its constant

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Positioning With the R&D Centre located in . Huawei is positioning itself in Innovation – 5G and products reliable thus able to retain more loyal customer and at the same time attract more customers. Tagline – MAKE IT POSSIBLE AND CONNECTING THE FUTURE (PHOTOS) Graph + innovation (Huawei no.1) stands out cause the tagline also say they are heading there.

Conclusion https://www.businessinsider.sg/biggest-smartphone-makers-in-the-world-apple-slips-2019-8/ apple knock out of top 3 – in another words apple use to be world no 1 for very long tight competition thus Huawei need to continue to work hard more r&D for better innovation to stay at the top

References 1) Smithson, Elizabeth. (2015). What Is Branding and Why Is it Important for Your Business? Retrieved 14 October 2015, from https://www.brandingmag.com/2015/10/14/what-isbranding-and-why-is-it-important-for-your-business/  https://blog.hubspot.com/marketing/branding  2) Roll, Martin. (2018). Huawei – Transforming A Chinese Technology Business To A Global Brand. Retrieved February 2018, from https://martinroll.com/resources/articles/strategy/huawei-transforming-chinesetechnology-business-global-brand/ 3) Johnson, Keith. Groll, Elias. (2019). The Improbable Rise of Huawei - How did a private Chinese firm come to dominate the world’s most important emerging technology. Retrieved 3 10 | P a g e

April 2019, from https://foreignpolicy.com/2019/04/03/the-improbable-rise-of-huawei-5gglobal-network-china/ 4) Bhasin, Hitesh. (2018). Marketing 91 – Marketing Strategy of Huawei – Huawei Marketing Strategy. Retrieved 3 March 2018, from https://www.marketing91.com/marketing-strategyhuawei/ 5) Tow, Hannah. (2019). The 4 Main types of Market Segmentation (+How to Implement it in Your Marketing Strategy). Retrieved 15 March 2019, from https://learn.g2.com/marketsegmentation 6) Adamowicz, Jakub Hera. (2018). Huawei – Why Huawei is different – core values that matter. Retrieved 25 June 2018, from https://www.huawei.eu/story/why-huawei-differentcore-values-matter 7) Van Boom, Daniel. (2019). Apple iPhone 11 Pro Max vs. Huawei P30 Pro: Who’s cameras are king? Retrieved 28 October 2019, from https://www.cnet.com/news/apple-iphone-11-promax-vs-huawei-p30-pro-whos-cameras-are-king/ 8) Claessens, Maximillian. (2015). Three level of product – Core Value, Actual Product, Augmented Product. Retrieved 27 April 2015, from https://marketing-insider.eu/three-levelsof-product/ 9) Browne, Ryan. (2019). Samsung and Apple are losing ground to Huawei because their phone are too expensive, research shows. Retrieved 21 February 2019, from https://www.cnbc.com/2019/02/21/huawei-takes-market-share-from-apple-iphonesamsung-galaxy-gartner.html 10) Global Times. (2019). Huawei tops brand recognition ranking in China Market. Retrieved 14 March 2019, from www.globaltimes.cn/content/1142162.shtml 11) Lee, Tracy. (2018). CNA Lifestyle – Leica on Huawei collaboration: ‘By far the best phone camera system we’ve ever had. Retrieved 18 October 2018, from https://cnalifestyle.channelnewsasia.com/trending/leica-camera-huawei-mate-20-proseries-triple-lenses-functions-10839124 12) Huawei. (2019). Huawei after sales policy. Retrieved from https://consumer.huawei.com/sg/support/warranty-policy/ 13) Wong, Lester. (2019). The Stratis Times - Huawei $54 smartphone deal: Nearly 2,000 who registered receive $100 voucher. Retrieved 19 August 2019, from https://www.straitstimes.com/tech/huawei-54-smartphone-deal-nearly-2000-who-registeredreceive-100-voucher

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