Strategic Marketing at The Huawei_ Assignment (GC0402)

Table of Contents

1.0 Introduction.

2.0 Strategic marketing strategies for Huawei

Segmentation strategy for Huawei

Targeting strategy for Huawei

Positioning strategy for Huawei’ 2018.

McKinsey 7-S Analysis.

Ansoff Growth Matri for Huawei 2018.

Marketing Mix (7’P) Analysis.

2.0 Action plan.

4.0 Controls, Measurement, Review, Risks, and Contingencies.

Marketing Evaluation and Control Plan for Huawei 2018.

Potential risks and contingency ideas for Huawei 2018.

Conclusion.

References.

1.0 Introduction

Huawei is a China-based technology company that is now operating in the global market. It is now operating in over 140 countries across the world. It offers several technology products including IT products, smart devices, and telecom network equipment. Huawei‘s vision is to one of the leading technology companies in the world. Huawei’s mission is to gain the expected percentage of market share with revenue and profit by offering quality products and excellent service (Huawei Annual Report, 2017). This paper develops marketing strategies for Huawei.

2.0 Strategic marketing strategies for Huawei

Segmentation strategy for Huawei

Johnson et al. (2015) said segmentation refers to grouping/profiling characteristics of the target and potential customers. According to Huawei Annual Report (2017), Huawei follows demographic, geographic as well as psychographic strategies for its business. As a geographic segmentation strategy, is now operating in the majority of cities (including Beijing and Shanghai) of 140 countries across the world, where it focuses on strategic locations like shopping malls, airport areas, and crowd areas. As a demographic segmentation strategy, it targets all age groups of people except children. As a psychographic segmentation strategy, it attracts all classes of people including the poor, middle class, upper class, and rich. As a behavioral segmentation strategy, it attracts cheap products sought people, fashion-aware people, quality sought people (Huawei Annual Report, 2016).

Huawei Customer Segmentations in 2018
Huawei’s segmentation strategy for 2018	Variables	Typical breakdowns
	Geographic	· 140 countries and the majority of cities (including Beijing and Shanghai) across the world · Strategic locations like a shopping mall, crowd areas, and airports areas
	Demographic	· Most importantly young people under 40 years old · Both men and women · Adult
	Psychographic	· Poor class · Middle class · Upper and rich class
	Behavioral	· Cheap product sought people · Fashion aware people · Attractive design sought people · Quality sought people

Table: Huawei Customer Segmentations for 2018 Source: Huawei Annual Report (2017)

Targeting strategy for Huawei

The targeting strategy of a business refers to the breakdown of target markets into a number segment by product differentiations. Targeting strategies are classified as single-segment targeting, mass targeting, and multi-segment targeting (Kotler et al. 2016).

Huawei in China Market	Product ranges	Target customer segments
	Telecom network equipment	· Most importantly young people under 40 years old and adults. · Both men and women · Poor class, middle class, and upper and rich class · Cheap product sought people, fashion-aware people, the attractive design sought people, and quality sought people
	Smart devices
	Smartphone
	Seasonal
	IT products
	Others

According to Huawei Annual Report (2016), Huawei is using a multi-segment differentiation strategy. Applying this strategy Huawei offers different products for different classes of target customers. Huawei offers a different range of products including IT products, smart devices, and telecom network equipment.

Table: Huawei targeting strategies for in 2018 Source: Huawei Annual Report (2017)

Positioning strategy for Huawei’ 2018

Market positioning of a business refers to the target point of business and its products and services in the competitive marketplaces (Palmer, 2016). The positioning map for Huawei 2018 is developed in the following figure:

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Justification: the study on the Huawei business case and its annual report show that in the present competitive market it is offering a poor range of products in comparison to its main competitors including Samsung and Nokia (Bhasin, 2018). In addition, it has been able to make awareness among its target customers regarding its products and services in comparison to its competitors including Apple, Samsung, and Nokia. On the other hand, many customers raise the issue of higher product prices in comparison to prices offered by Nokia and HTC (Bohatala, 2016). Thus, Huawei can take initiatives to overcome these challenges by reducing its product prices, introducing more product ranges, and developing more promotional strategies to make awareness among the target and potential customers.

McKinsey 7-S Analysis

According to Johnson et al.’s (2015) suggestion, McKinsey’s 7’S model can be applied to analyze the internal factors of Huawei and develop marketing strategies based on the finding. The application of this model can analyze the structure, strategy, systems, style, staff, skills, and shared values of Huawei. Among these internal factors, shared values and strategies closely focus on the other factors. Kotler et al. (2016) said if a business like Huawei fails to create a stronger relationship between all of these components; it will not be possible to achieve sustainable competitive strategic capacities. However, this model only focuses on the business internal factors, thus, businesses including Huawei need to apply other models to analyze external issues and develop effective marketing strategies (Palmer, 2016)……………….

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