Marketing plan †Huawei Essay

This selling plan is speci whollyy measured to the company Huawei. Huawei is an international company which produces devices for telecommunication, with their phones being the most primary(prenominal) product. Their vision is to deliver electronic communicating solutions to make the life of their consumers better. This grocerying plan is requested by Huawei to find a way to accelerate the sales of Huaweis phones internationally, with a targeted 10% rise in market share in Europe. In this advertise the proposition of the marketing plan can be found, with specific data about the diametrical subjects and explanation of a market winning approach. We will start by analysing the company and the environment, to define the SWOT of the organization. Afterwards we will introduce these conclusions into a ground substance where it will be visible what the companys best aspects are. Then we will choose strategic options and further instruct on the matter. Next, we will occasion a mix of s trategic marketing aspects that will further help to develop the importance on how and where to place the advertisements and stores and so on. Finally, a fiscal compend will be done in order to predict the costs Huawei is going to make on this venture, and whether or non their refreshing mission come alongs feasible. This report has been pee-peed by Quirijn, Ruben, Robbert, Amine and Erim.Management summaryThis marketing plan gives answers to the question whether it is feasible for Huawei to increase daub awareness in Europe by open up a market campaign and to increase market share with 10% in spite of appearance 4 years. The research phase had various angles.Based on micro, macro and meso level some interesting strengths, weaknesses, opportunities and threats are revealed. The most important ones are (Strength )Huawei has a great cost advantages in comparison with the competition. (Weakness) Inability to maintain in high spirits character reference master key fruit serv ice and sales support in western markets (Opportunity) Huawei offers blue priced phones, which can be actually attractive for people affected by the financial crisis. (Threat) A chaw of competition in the western markets.The internal analysis consist out of various models. The canvas model was created to analyse Huawei as a company. Within the BCG-matrix, Huaweis smartphones are placed as a question mark. And the com vagabonded Abell matrix shows that Huawei targets students and the most important need is the price and the most important technologies are calling and texting, internet and connectivity.On external level a survey is conducted within this marketing plan. The most striking result is from the question Do you know Huawei?. 53% of the surveyed audience was not aware of what Huawei is as a brand.Within the Meso level, Porters five forces is analysed. The most important findings are The powerfulness of the customers is not particular strong.The threat of new entrants is n ot very impactful as Apple and Samsung are the undisputed leaders. If done right the power of substitutes can see an impact on the market. There is no threat in the power of the suppliersHuawei operates within a highly competitive market, the rivalry is massive.After doing research on 5 strategies, the best strategy proven is the impression-cost strategy. The reason it is a perfect match for Huawei is because they are subject, because of their cost-saving combined with their excellent financial situation, to sell their products for a lot less than the competitionThe BCG matrix is an analytical tool for companies to evaluate their occupancy units and their business potential. With help from this matrix Huawei can create and adapt marketing strategies, product strategies and much, all to help the strategic management of a company. The BCG matrix connects a companys market share with a companys growth rate. The model is divided into four areas, the stars, dogs, cash cows and quest ion marks.Huawei and its mobile phones are placed in the box of question marks. Its put in this box because of the fact that the worldwide market share of Huaweis mobile phone is relatively low, and the market growth rate, again worldwide, is relatively high, with expanding markets all over the world. Market leaders already eat established and a lot of companies operate in this market, but because of the wide and depth of the mobile market there is still a lot of potential for Huawei. In the coming time they will find out if their question mark can stimulate a star.Abell modelThe Abell model is a model for seeing in what kind of market a company operates. With segments, ask and technologies there is a speedily overview of what a company or a product is about.The Abell matrix for smart phone HuaweiStudents, young starters and parents are the main segments that Huawei is targeting, excluding senior citizens and children. The most important needs are the price of the phone, togethe r with its appearance and the quality. Convenience is important but not a main objective. The technologies specific to the phone are being able to call and text, having internet, and being able to connect all around the world. Interactive display and such, are also not the main objective.Strengths & WeaknessesStrengths1. Huawei has very strong financial position. Being financial healthy path that they can investment and start new projects.2. They have great cost advantages in comparison with the competition, this allows them to produce against low prices and have low production costs.3. Because of these great cost advantages Huawei is able to sell products against relatively low prices. This gives them a huge competitive benefit4. Huawei has high brand recognition and is rapidly increasing their brand awareness in their new markets, such as Europe, which gives them fast closure to the big brands.5. Superior technologies enable Huawei to beget with fast efficient solutions, and giv es the whole company effective process.6. Huawei has a very high customer loyalty. Customers are satisfied and keep their preference for the brand, which allows Huawei to focus to a greater extent on finding new customers.7. R&D is a very strong department within Huawei technologies, having R&D centres all over the world, to create products that are needed by every person all over the world.8. Their market share in the African markets is very high and Huawei invests a lot here, which pays off with a high return rate.9. Huawei has a broad range in products, which give them the beneficial ability to provide end-to-end solutions, keeping more customer processes inside Huawei.10. They have a strong connection with the Chinese government, which helpsthem to maintain their number one position in China.Weaknesses1. the supply chain of Huawei has a lot of flaws, with late and insufficient deliveries occurring. This is partly because of the high amount of products and the market penetration in the US and Europe.2. the customer service is not what it should be, not relations with customer complaints properly, mainly because there starting services in Europe and the lack of integration with supporting services.3. Inability to maintain high quality professional services and sales support in Western markets.4. Except for China, Huawei lacks the strong global physical presence that a company needs to establish itself as a true market leader.5. contracts with the most important and biggest server providers are not optimal, which prevents an efficient integration between product and server.6. Huawei excels at telecommunication, but does not have much experience in their new services, and does not have the same knowledge to overcome difficulties that some of their big competitors do.7. The brand image of Huawei is generally focused on their mobile process and selling, and customers are on a large scale unaware of the other practices of the company8. employee satisfaction is high within Huawei, but a lot of complaints arise from workers that operate in Huaweis supply chain, which has a negative effect on how ethical Huawei is.9. Huawei still depends on their low-pricing strategy, and has no alternative selling strategys for their products.10. Huaweis ties to the Chinese government are a strength, but is at the same time a weakness, as it complicates creating relationships with other specific governments, such as the US.MESO analysisMeso SWOTStrength R&D, patent ownership, growing their innovative and advanced technological products which have earned their global recognition Weaknesses Lack in transparency and image of secrecy, worrying companies and governments who might otherwise trust the brand to protect valuable aegis information. Huawei has failed to understand the US legal system and market demands, as well as its image as a risk to national security which has resulted in its failed acquisitions. Opportunities Continued innovations and technology advances. The continued growth and expansion of technology usage and literacy offer both brands unlimited growth opportunities, so long as they remain ahead of the competition though continued improvement. Threats R&D takes time, if the competition provides solutions first, the brand will struggle to deal. Development in this industry is simply unfit as the business relies upon continued growth of the internet and internet-based-systems. Merger and acquisitions have no assurance and are inherently risky, particularly in this industry out-of-pocket to the advanced, high-technology companies with particularly high overhead and sunk costs. Global politics and exchange rates are also a threat to international trade as a whole.Porters five forcesNow that Huawei is entering the European market there are certain things to take note of. Porters Five Forces helps us define which types of pressures could be present that have to be identified before entering a competitive market like the smartphone business Huawei is entering on a regional scale. role of customersThe power of customers in the particular market is not that strong. There isnt a lot of make for into the product directly by the consumers.Whatever features are implemented into the product is similar to those of the competition, and is broadly influenced by the R&D departments. So the customers will largely decide on preference of design or depending on the price that is being offered. Altogether there are not endless choices for the customers to choose between. This means that the customers simply dont have the power to strongly influence the market by demanding critical changes from a product or brand. Power of new entrantsThe threat of new entrants is also not very impactful for the market Huawei is entering. This is especially overdue to the reason that it takes a certain brand awareness to convince a large number of the (potential) buyers into buying the new product they are bringing to the mark et. However, when this product is pass a whole range of new features or improvements that seem very attractive, this may threaten the existing products on the market, making them harder to promote against a superior product. But in almost any case it doesnt seem feasible to go up against popular brands like Apple and Samsung. This means that, overall, new entrants arent expected to be a huge threat. Power of substitutesHuawei is financially very strong and strives for operational excellence in which they score relatively high already. This means that they are able to offer considerably low prices compared to competitive brands on the market. At the same time they are able to offer stylish designs and similar features to other brands. This means that Huawei is able to give consumers a choice that they will most likely not regret, but before they do so they are going to have to decide to trust Huawei into fling them a worthy product. The marketing campaign must show the difference Hu awei is bringing to the market, and with that they have to convince the consumers of something worth buying. This will prove difficult however, due to the fact that a lot of people have already been convinced by the flashy designs of Apple for instance. The brand is already widely-known and both Apple and Samsung honor a great deal or the market share today. This means that eventually the power of substitutes is rather high at this point and probably the biggest enigma on the board for Huawei. Power of suppliersThe power of suppliers doesnt have to be seen as a threat to Huawei. They are importing from their region of origin, namely southeast Asia. They enjoy low labor and production costs overall, which goes in combination with high efficiency meaning they are able to keep costs very low. There are many different suppliers for the raw materials that needed for the production process which also lowers the power of the suppliers. RivalryEventually the market proves to be a highly competitive one, especially if we start talking about Apple and Samsung who are highly involved in the mix. They are offering high quality products, one for relatively high and one for relatively low prices. They have similar features but some small differences, mostly in handling the device. It mostly comes down to the design of a smartphone, as almost all brands offer pretty much the same features. This means that the product with the strongest marketing campaign offering the flashiest design will most likely hit the jackpot and win the hearts of most customers which means that this is going to be very challenging for Huawei to compete against. So basically the market growth is rather high as technology development is an ongoing process and there are several key players in the market meaning that they are calling the shots. Huawei has to gain trust in potential customers and attract them by offering as flashy as the newest model Apple has brought to the market, and give it some ex tra features in order to make the difference.