MARKETING Marketing Name of the Student Name of the University

Running head: MARKETING
Marketing
Name of the Student
Name of the University
Author Note

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Table of Contents
Part 1................................................................................................................................................3
Introduction..................................................................................................................................3
Situational Analysis.....................................................................................................................4
PESTEL Analysis....................................................................................................................4
SWOT Analysis.......................................................................................................................7
Competitive advantage................................................................................................................9
Excellent product quality along with local service team.........................................................9
Unwavering PIPE strategy.......................................................................................................9
Evaluation of current marketing strategy....................................................................................9
Perceptual Map..........................................................................................................................10
Competitive profile Matrix........................................................................................................10
Survey........................................................................................................................................11
Part 2..............................................................................................................................................12
A new brand:..............................................................................................................................12
Brand name:...........................................................................................................................12
Product description:...............................................................................................................12
Brand color:...........................................................................................................................13
Segmentation Targeting and positioning...................................................................................13
Segmentation.........................................................................................................................13

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Targeting................................................................................................................................14
Positioning.............................................................................................................................15
Time Space Chart......................................................................................................................15
SMART Goals...........................................................................................................................16
Marketing Mix 4Ps....................................................................................................................18
Obliquity....................................................................................................................................19
Conclusion and Recommendation.............................................................................................19
Reference List................................................................................................................................21
List of Figures
Figure 1: Ranking of political stability in various countries...........................................................4
Figure 2: Gross domestic product of China.....................................................................................5
Figure 3: Hofstede chart of China...................................................................................................6
Figure 4: Ranking of china in EPI frame work................................................................................7
Figure 5: Perceptual Map...............................................................................................................10
List of Tables
Table 1: SWOT Analysis of Huawei...............................................................................................9
Table 2: Competitive profile Matrix..............................................................................................12
Table 3: Segmentation of Huawei Primium..................................................................................15
Table 4: Time Space Chart............................................................................................................17

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Table 5: Smart Goals.....................................................................................................................18
Table 7: 4P Analysis......................................................................................................................20

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Part 1
Introduction
The Huawai Technologies Co. Ltd. refers to a Chinese multinational organization that
deals with telecommunication equipment as well as consumer electronics manufactures. The
organization has its headquarters at Shenzhen, China. The organization was founded by Ren
Zhengfei, a former military engineer, in the year 1987. Initially, the chief focus of Huawei was
on phone switches. However, eventually the organization has expanded its business by building
telecommunication networks along with provision of consultation and operational services both
in local as well as international market. Currently the company has more than 170,000
employees all over the world and is considered to be the largest telecommunication equipment
manufacturer across the world (Shubbak 2019). The current target of the organization is to come
out of its “value for money” image and enhance it consumer base by offering a Smartphone line
to the premium segment of the market. In this report, PESTLE analysis and SWOT analysis of
the mentioned company along with evolution of its competitive advantage, current marketing
strategy, Perceptual Map, Competitive profit Matrix and a survey will be conducted in order to
understand the potential strengths, weaknesses, opportunities and threats that can be faced by the
organization. Based on this part, the second part will include analysis of the premium target
segment and development of set clear marketing objectives to increase brand awareness, market
share, sales or profitability for the new brand recommended.

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Situational Analysis
PESTEL Analysis
The PESTLE analysis model helps marketers to analyze the macro environment of an
organization. In order to understand the external environment of Huawai, PESTLE analysis of
the Chinese electronic industry has been conducted bellow.
Political Environment
The political environment of China is more stable than majority of the developing
countries of the world. As per the data obtained from the Fragile state index 2018, China has
ranked 89th when it comes to political stability. According to researchers, the level of political
stability of a country imposes high impact on the business policies, laws and regulations of the
same (Feldman 2017). Considering the fact that China is working on expanding its electronic
industry, a good number of incentives and tax relations are provided on behalf of the Chinese
Government. Thus expanding its business in the Chinese electronic industry will be beneficial
for Huawai.
Figure 1: Ranking of political stability in various countries
Source (Fundforpeace.org. 2019)

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Economic Environment
In the past 5 years, the economy of China has experienced GDP growth. However,
according to Lin et al. (2018) the exchange rate of Chinese money is fluctuating and thus it may
impose negative impact on the business. From the increasing GDP of China, it can be understood
that the living standard of the residents of the nation is gradually increasing. Currently, the GDP
of the nation is second highest, the first highest being USA. However, due to huge population,
the per capita income of the nation is not as high as the GDP of China. The Taiwan province of
China ranks 37th when it comes to per capita income and thus it can be understood that majority
of people in the nation belongs to lower middle and middle class.
Figure 2: Gross domestic product of China
Source (Gross domestic product 2019)
Social Environment
The society of china is considered to be more on the conservative side when it comes to
culture and public morality. With the help of thee Hofstede model, six socio cultural factors of
China that has the potential to impose impact on the business organizations established in the
mentioned country that is Power Distance, Uncertainty Avoidance, Individualism, Masculinity,
Long-term Orientation, and indulgence has been plotted bellow. It has been found that in the
nation subordinate-superior relationship tends to be polarized and there is no defense against

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power abuse by superior (Hu 2016). The society of china is also found to be pragmatic in nature
which can impose positive impact on the business of the Huawai Technologies Co. Ltd.
Figure 3: Hofstede chart of China
Source (Hofstede Insights 2019)
Technological Environment
In spite of being a developing country, China is quite advanced in technology. New
digital media technologies as well as internet technologies occupies the lives of the consumers.
More than 73.24 percent of the nation is currently available on popular social media platforms.
The technological development of the nation act as a highly beneficial factor for The Huawai
Technologies Co. Ltd, since it enables the company to reach out a huge number of consumers
within very limited amount of time though online marketing and online promotional techniques
(Bengtsson and Wang 2016).

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Figure 4: Top 20 Worldwide Technological leaders
Source (doingbusiness.org 2019)
Environmental Environment
When it comes to environmental environment, china needs to develop more strict rules
and regulation in order to enhance and maintain the environmental sustainability of the nation.
One of the major environmental issues faced by the mentioned organization includes air
pollution. According to the global EPI ranking, the position of China is as low as 120th amongst
180th countries.

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Figure 4: Ranking of china in EPI frame work
Source (EPI FRAMEWORK 2018)
Legal Environment
The laws and regulations of China impose high impact on the basic requirements of the Huawai
Technologies Co. Ltd. The business legal environment of china is currently disturbed due to
good number of factors. From Table 1, it can be clearly understood that China is lacking ease of
doing business which can be major obstruction for organizations who has established their
business in the Chinese Electronic industry.
Figure 5: Ranking of china in Economy and ease of doing Business
Source (doingbusiness.org 2019)

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SWOT Analysis
Strengths
1. The Huawai Technologies Co. Ltd is
the largest telecommunication
manufacturer across the world.
2. The organization has high brand equity
across the nation
3. The chief focus of the management is
on innovation
4. The consumer base and loyalty of the
company is high
5. The organization follows cost
leadership and possess technical
advantage
Weaknesses
1. The management is unable to capture
the upper middle class an elite class
consumers in both local as well as
global market
2. Failure to enter US
Opportunities
1. The untapped Indian market can be
considered as a major opportunity for
the company
2. The organization can expand its
consumer base by launching premium
Threats
1. The increasing competition in both
local and global market
2. import tariffs in China are relatively
low compared to other countries

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quality electronic goods
3. 5G opportunities
Table 1: SWOT Analysis of Huawei
Source (created by author)
Competitive advantage
Excellent product quality along with local service team
As a telecommunication service provider, the organization has succeeded in increasing the
product quality along with building a strong local service team for fast responding of consumer
request. In order to gain competitive advantage the organization provides special training to the
employees so that any kind of network problem can be eliminated within a limited amount of
time
Unwavering PIPE strategy
Since the initial days of Huawei, the pipe strategy has been built by the management of the
organization. The organization has become the largest network infrastructure vendor across the
globe after investing 10 percent of its revenue to R&D (Schlegelmilch 2016). Instead of looking
for the fast money process, the organization focuses on building the core of its business.
Evaluation of current marketing strategy
In china, the market share of Huawei is 15.8 percent (Blakeman 2018). The competitive
advantage gained by the mentioned organization is majorly due to the high quality of its product
and services provided to the consumer at a lower cost compared to its competitors. Considering

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Apple
Price high
Low
Samsung
Xiaomi
Huawei
Nokia
Qualit
y low High
the fact that Huawei has adopted cost leadership, the strategy of the consumer to gain profit by
capturing a huge amount of consumer base (Piercy 2016).
Perceptual Map
Figure 5: Perceptual Map
Source (Created by author)
Competitive profile Matrix
Samsung Hauwei Apple
Critical
Success factor
weight Rating 1-4 Score Rating 1-4 Score Rating 1-4 Score
Advertisement 1 2 3 3 2 1 2
Financial
support
2 2 2 4 2 2 3

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Consumer’s
loyalty
1 3 2 4 3 3 4
Management 2 1 3 2 4 3 2
Innovation 1 4 2 3 4 4 3
Market share 2 1 3 1 3 2 2
Total 9 15 18 16
Table 2: Competitive profile Matrix
Source (created by author)
Survey
1. What is your age?
2. What is your educational level?
3. What is your income level?
4. Which of the three companies do you prefer for buying a Smartphone?
5. Do you think the price of Huawei Smartphone is reasonable?
6. Do you think the quality of the product is high?
7. Do you find the logo of the brand attractive?
8. Do you think that the battery life of the product is good?
9. Which of the three celebrities will you prefer most acceptable for a Huawei performance?
10. Do you pay for Smartphone on a monthly contract or all upfront?
11. How much is your yearly budget for your smartphone?
12. What are your 3 favorite apps for your smart phone?
13. How much data per month do you use on your smartphone?
14. Approximately how many messages do you send on a daily basis?

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15. Approximately how many calls do you make on an average day?
After conducting the survey, it has been found that more than 65 percent of the consumers
prefer Huawei smartphones compared to Apple and Samsung. Majority of the consumers think
the company provides high quality product within a limited price range.
Part 2
A new brand:
Brand name:
Huawei Premium
Product description:
The idea behind Huawei Premium is to provide the consumers with a premium quality
smartphone with multiple futuristic features. The Huawei Premium offers the consumers with
5.8" OLED display, Faster A11 Bionic processor, edge to edge display, wireless inductive
charging facility and facial detection. The edge-to-edge top-to-bottom Super Retina
display adopts OLED technology for true-to-life colors, deep blacks, and a million-to-one
contrast ratio. It features a 2436 x 1125 resolution and 458 pixels per inch.

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Product logo: Huawei Premium
Brand color:
The color of the brand is golden that signifies its premium quality and features.
Segmentation Targeting and positioning
Segmentation
The chief purpose of the segmentation, Targeting and positioning model is to select the right
consumer in the market in order to experience an increased revenue and consumer loyalty (Xia
and Gan 2017). In the following table, segmentation of consumers of the Huawei Premium
smartphone line has been conducted.
Segmentation type Segmentation criteria Huawei premium segment
Demographic Age 30 years to 60 years
Gender Male and female
Income Upper middle class and elite

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class
Generation Middle aged and young
Occupation Business personnel, managers ,
CEOs
Geographic Density Urban
Region Both domestic and
international
Psychographic Social class Upper middle class and elite
class of the society
Consumer personality Confident, suceeder, explorer
Behavioral Consumer loyalty Both hardcore royal and
switcher
Consumer user rate Regulars, first times, potential
Buying frequency yearly
Benefits sought Sense of achievement and
belonging, speed of service,
advanced features and
capabilities
Table 3: Segmentation of Huawei Primium
Source (created by author)
Targeting
The Huawei Premium brand has been launched focusing the upper middle class and elite
class of the society and thus is using a differentiated targeting strategy (Tsai and Chang 2018).
The differentiated marketing strategy of the mentioned brand is to expand its consumer base in

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the upper middle class and the elite class of the society. The manufacturing and investment cost
of the product is high in order to ensure premium quality and service. The target consumers of
the Huawei iphone X middle aged businessman with very high disposable income. The
smartphone for now will only be available online and at Huawei stores.
Positioning
Positioning of a brand is defined as the market effort and can be done with the help of
promotion and advertising (Kim and Chao 2018). The brand identity, elements and quality of the
product offered by Huawei does play a major role in the positioning of Huawei Premium.
Huawei has positioned its Huwei premium series by offering a Smartphone series that has
futuristic features and are uniquely different from its competitors. The premium smartphone line
is promoted as one of its kinds and is presented as a status symbol of the consumers. The
company’s chief target is to create a product differentiation by applying effective positioning
strategies so that it can be distinguished from the product offered by its competitors. considering
the fact that the target consumers of the brand is the elite class society, the company is not
focusing on gaining competitive advantage by lowering the price range of its product. Instead
highlighting the uniqueness of the product along with establishing it as a new status symbol is
the technique adopted by the management to position its new product.
Time Space Chart
Time space Media exposed to
7.30 am to 8.30 am Morning work On hoardings
8.30 am to 11 am Getting ready for work Advertising in newspaper and
social media
11 am to 1 pm At work Internet via laptop

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1pm to 6 pm Afternoon work Social media through phone and
internet in laptop
7 pm to 10 pm Driving back home Advertisement in hoardings by
the side of the road
10 pm to 11 pm Night walk Advertisement in hoardings by
the side of the road
11 pm to 12 pm Getting ready to sleep Social media through phone and
internet in laptop
12 pm to 7.30 pm Sleep time NA
Table 4: Time Space Chart
Source (created by author)
SMART Goals
Specific 40 percent of the market share by the end of 5 years
Enhance the target consumer base by at least 35
percent with the 5 year
Measurable 1. Achieve 5 percent of the market share
by the end of 1st year
2. Achieve 10 percent of the market share
by the end of 2nd year
3. Achieve 17 percent of the market share
by the end of 3rd year
4. Achieve 25 percent of the market share

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by the end of 4th year
5. Achieve 40 percent of the market share
by the end of 5th year
attainable 1. implementing a good number of
promotional techniques both online and
offline
2. regular monitoring of the sale
percentage
Realistic 1. to communicate regularly with the
consumers through social media
platform
2. T o provide effective training to the
consumer service executives for
excellent after purchasing service
(Malysheva et al. 2016)
Time specific 1. To achieve 5 % level of brand influence
share within the first 12 months of the
business started.
2. To achieve 10% level of brand
influence share by the end of 2 year of
the business started.
3. To achieve 15% level of brand
influence share by the end of 3 year of

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the business started.
Table 5: Smart Goals
Source (created by author)
Marketing Mix 4Ps
The 4P marketing mix can be defined as the set of tactics used by an organization to
promote its brand or product in the market and enhance its revenue and consumer base.
Product Considering the fact that the target consumer of the
mentioned brand belong to the elite class of the
society, Huwei premium Smartphone are luxury
Smartphone with crystal cut design. The unique
features of Huwei premium Smartphone include
stainless steel frame and hand-wrapped Italian
leather backplate. 5.8" OLED display, Faster A11
Bionic processor, edge to edge display, wireless
inductive charging facility and facial detection. The
edge-to-edge top-to-bottom Super Retina
display adopts OLED technology for true-to-life
colors, deep blacks, and a million-to-one contrast
ratio. It features a 2436 x 1125 resolution and 458
pixels per inch.
The Internet of Things is an emerging

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communication concept that interconnects variety
of devices with people, processes and data along
with allowing them for communicating with each
other in a seamless way. Being a smart phone with
highly advanced technology, the mentioned product
does count in the Internet of Things. In the personal
IoT of the Huawei Premium, it will be easier for
the consumers to locate health and fitness.
The product has been designed s a Veblen good.
Veblen goods refer to desirable consumer products
that are designed for conspicuous consumption due
to the high price of the same.
price Due to high manufacturing costs along with the fact
that the target consumers of the brand are elite class
consumers, the price of the product is higher than
its local competitors. The price of a Huawei
premium Smartphone is 1,700 dollars currently.
Corporate cannibalism refers to a decrement in the
sales of the product or market share after a new
product has been launched by the same
organization. For instance, Apple had suffered
Cannibalism after launching i-Phone afolling i-Pad.
Cannibalism takes place when the target markets of
an organization for the newly launched superior
quality of its products are kept the same.
Considering the fact that the target market of the

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mentioned organization is completely different
from the target consumers of its existing product
range, launching the Huawei premium will not
result in Cannibalism
place The smartphones are currently available at online
marketing sites along with Huawei stores in China.
However, when it comes too global marketing of
the product, the organization will follow the
waterfall strategy. The waterfall market entry
strategy enables the company to revitalize its
products in the maturity stage, which in turn
prolong their life-cycle, while maintaining a stable
position within the market. Huawei will first target
highly developed countries like UK and USA,
followed by developing and underdeveloped
countries.
promotion The management has invested on promoting brand
with the help of celebrity promotion. Popular south
Korean actress Song hye-kyo is the current brand
ambassador of the Huawei Premium range
(West,Ford and Ibrahim 2015). Along with this
internet and social media re also considered as
major promotional sites through which the product
is promoted.
In order to attract a huge range of consumers,
within a limited timeline, the management of the

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organization should implement the AIDA model.
Attention: This step includes attracting the attention
of the consumers. In order to attract its target
consumers, the Huawei Premium brand should
conduct offline campaigns for attracting local
consumers.
Interest: Along with this, promoting the product
with the help of Celebrities will also enhance the
product awareness within the consumers. this will
enhance the interest of the consumers in the
product.
Desire: Once the target consumers are aware of the
existence of the product, it is time to enhance the
desire of the product in the consumer’s mind. For
this, social media platforms and television
commercials can be used. The unique of the
smartphone and how it acts as a status symbol can
be shown through videos in social media.
Action: The ultimate goal is to drive the receiver
of the marketing campaign to initiate action and
purchase the product or service.
Table 7: 4P Analysis
Source (created by author)

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Obliquity
The idea of obliquity includes wining a decisive battle and meet business target by
considering indirect strategies. It case of Huawei Premium, being a company known for “its
value for money” business strategy, has incorporate high tech innovation and launched a luxury
smartphone range. With effective promotional technique and marketing strategies it is expected
that the brand will definitely gain success in near future.
Conclusion and Recommendation
After conducting both macro and micro analysis of the product, it is clear that the consumer
loyalty and the brand equity of Hauwei are high. However, since the company has launched a
brand new product line targeting a completely new consume base, the organization needs to
consider the following recommendation along with following the above discussed strategies.
1. Regular contact with the target consumer should be maintained through popular
social media platforms. This will enable the company to understand the exact
requirements of the consumers and enhance company consumer relationship (Jiang et
al. 2016).
2. Excellent consumer service is the key to retain consumers. Hence, Huawei should
provide its consumer service executives with effective training in order to ensure
consumer satisfaction (Saif and Aimin 2015).

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