Marketing Strategy: Huawei Premium Brand - MDIS Sunderland 2019

This report presents a comprehensive marketing strategy analysis for Huawei, focusing on its ambition to penetrate the premium smartphone market. It includes a situational analysis using PESTLE and SWOT frameworks to evaluate the external and internal factors influencing Huawei's business environment. The report assesses Huawei's competitive advantages, current marketing strategies, and market positioning through perceptual maps and competitive profile matrices. A survey is conducted to gauge consumer preferences and perceptions of Huawei's products. The second part of the report proposes a new brand, 'Huawei Premium,' outlining its product description, logo, and brand color. It details the segmentation, targeting, and positioning (STP) strategy for the new brand, along with SMART goals and a marketing mix (4Ps) analysis. The report concludes with recommendations for Huawei to achieve its marketing objectives and enhance its brand image in the premium segment. Desklib provides access to similar reports and solved assignments for students.

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