This project covers Huawei Marketing Plan with latest marketing analysis and competitive analysis.

According to Definition of Marketing, Huawei is creating interest in its potenetial clients and customers
to buy his products and services.

Executive Summary:
This Huawei Marketing Plan illustrates Huawei market segments and the strategies they will employ to
get customers and create a solid revenue stream. In this plan our unique focus to create or market a
mobile phone with attractive features which gives Huawei an advantage over their competitors by giving
customers a new outlet to enjoy mobile phones usage.
In this report we focus on the Pakistan mobile Phones market as a ‘cash cow’ in some countries noting
that Pakistan was experiencing significant macroeconomic problems, yet the mobile market steams
ahead as the effects of the global economic recession on the global mobile network are so far limited.
Pakistan mobile market has potential as the usage of mobile connections are increasing day by day and
with every new connection people need to buy a new mobile phone which make this industry more
profitable and attractive for the investors.
The report contains the Marketing strategy, situation analysis and defining the target market for Huawei
mobiles and the current trend of the mobile usage in Pakistan as people are now more focusing on the
features of the mobile rather than the price. From last few years some mobile company’s enter in the
competition by introducing there smart phones. SWOT analysis to define the company’s strength,
weaknesses, opportunities and threats.

In Marketing mix strategy we more focus on advertising as the company need to launch their product in
the market, so how can they market it and position it so that it create a positive image on consumers mind
which gives them good share in the market in term of sales.

[wpdevart_youtube]https://youtu.be/N_cvKt4Jzs0[/wpdevart_youtube]
Mobile Phone Industry in Global Context
Market Size:
The cell phone industry is one of the fastest growths besides the Internet. Cell phones have gone
through a huge change and its market has expanded globally. Since 1994, the cell phone industry has
increased from 24 million to about 182 million in wireless phone and related devices operating worldwide.

The cell phone market is increasing very fast with today’s ever-emerging technology and innovation in
improving cell phones. Today, society is living with advance technology and everyone wants to keep
pace with the new technologies. Cell phone industry is growing larger because it has become a
necessity. Parents are getting mobile phones for their teens because they want to communicate in case
of an emergency and the wireless carriers have made it easy to add users to their existing plans. And
carriers are becoming successful in getting parents to expand their plans to include their teens. This
increases buyers and increases market size worldwide.
 Scope of Competitive Rivalry:
The cell phone industry has become increasingly larger within the last few years as a result of more
affordable cellular phones as well as lower service costs. Companies are competing in an advance
technology and communication sector in which success attracts customers to buy their products and
services. The market is very competitive because they offer the same products and services, but has
different physical attributes to the phones and different costs, which buyers have choices to choose
from. Companies want to provide the best products and services to attract buyers by lowering cost and
improving products, which makes the cell phone industry very competitive.

Here are the main factors of competitive rivalry:

 Cell phone cost: Customers wants better services and products at a lower cost.
 Bundle functions into just one cell phone: For example E-mail, text messaging, internet
 New technology improvement: For example camera phones
Stage in Life Cycle:
The cell phone industry is in the Mature Life Cycle Stage, where nearly all-potential customers are
already users of the industry’s product. The cell phone industry’s growth and profitability depends entirely
on its ability to attract new customers. By increasing and improving the cell phones and services, it will
attract more potential buyers, because technology alone will not attract buyers, instead companies want
value-added services for mobile-phone securities.

Cell Phone companies attract buyers in two ways during the Mature Life Cycle State:

 Service: Making cell phone more affordable will attract buyers to buy more cell phones and increase
competition between companies to lower service fee.
 Innovative Phone Style: The new designs and improvement in the physical appearance of the cell
phones, and more add-on features attracts customers to buy it at a higher rate.
List of countries by number of mobile phone usage
This data has been extracted from Wikipedia:
Number of
Country or % of
Rank mobile Population Last updated date
region population
phones

World Over 5.6 billion 7,012,000,000 79.86 2011

1 China 987,580,000 1,341,000,000 73.6 Jan 2012

2 India 903,727,208 1,210,193,422 74.89 Jan 2012

United
3 327,577,529 310,866,000 103.9 June 2011
States

4 Indonesia 250,100,000 237,556,363 105.28 May 2009

5 Brazil 245,200,000 192,379,287 127.45 January 2012

6 Russia 224,260,000 142,905,200 154.5 July 2011

7 Japan 121,246,700 127,628,095 95.1 June 2011

8 Pakistan 111,126,434 178,854,781 65.4 Oct 2011

 Number of
Country or % of
Rank mobile Population Last updated date
region population
phones

9 Germany 107,000,000 81,882,342 130.1 2009

10 Nigeria 90,583,306 140,000,000 64.7 Feb. 2011

11 Mexico 88,797,186 112,322,757 79.8 Sep.2010

12 Italy 88,580,000 60,090,400 147.4 Dec.2008

13 Philippines 86,000,000 94,013,200 91.5 October 2011

14 Bangladesh 85,455,000 150,093,000 76.4 Dec. 2011

United
15 75,750,000 61,612,300 122.9 Dec. 2008
Kingdom

16 Vietnam 72,300,000 90,549,390 79 October 2010

Egypt Ministry of
17 Egypt 71,460,000 78,300,000 91.3 Communications &
IT, February 2011

18 Turkey 66,000,000 71,517,100 92.2 2009

19 France 58,730,000 65,073,842 90.2 Dec. 2008

20 Thailand 69,000,000 65,001,021 105 2010

21 Iran 68,000,000 75,078,000 91.2 2011

22 Ukraine 54,377,000 46,143,700 117.9 April. 2009

23 Spain 50,890,000 45,828,172 111.0 Dec. 2008

24 South Korea 50,767,000 48,580,000 104.5 2010

25 Argentina 50,409,800 40,134,425 125.6 2010

26 Poland 47,153,200 38,186,860 123.48 2010

27 Colombia 46,147,937 45,393,050 101.6 2011

2008 Q3
28 South Africa 42,300,000 47,850,700 101.3 www.cellular-
news.com]

29 Algeria 33,000,000 35,000,000 94.2 2011

30 Venezuela 27,400,000 28,200,000 98.0 2008]

31 Peru 27,100,000 29,000,000 95.5 Dec. 2010

 Number of
Country or % of
Rank mobile Population Last updated date
region population
phones

32 Taiwan 25,412,000 22,974,347 110.6 2008

33 Romania 22,800,000 21,438,000 108.5 March 2008

34 Canada 25,543,862 34,482,779 74.1 Q3 2011

35 Morocco 27,050,000 32,993,000 81.9 Q1 2010

36 Netherlands 20,000,000 16,515,057 121.1 Nov. 2009

37 Australia 21,260,000 21,179,211 100.4 Jun 2007

38 Saudi Arabia 46,000,000 27,137,000 169.5 Jun 2010

39 Malaysia 30,379,000 28,250,000 106 2010

40 Chile 21,000,000 17,094,270 122.9 Dec. 2010

41 Guatemala 17,571,895 14,713,763 119.4 Jun. 2010

42 Sri Lanka 17,359,312 21,000,000 80.95 Dec. 2010

43 Ecuador 15,900,000 14,300,000 111.18 Jan. 2012

44 Portugal 14,500,000 10,632,000 137.0 2008]

45 Nepal 14,240,670 28,500,000 53.5 Mar. 2011

46 Hong Kong 13,264,896 7,008,900 187.9 Nov. 2010

47 Belgium 11,822,000 10,414,000 113.6 2009]

48 Hungary 11,833,000 10,020,000 118.3 Sept. 2010]

United Arab
49 11,540,040 5,860,000 197.1 Nov 2011
Emirates

50 Bulgaria 10,655,000 7,600,000 140.2 2008

51 Israel 9,319,000 7,310,000 127.5 2008

52 Denmark 7,000,000 5,543,819 126.2 February 2008

53 Azerbaijan 7,000,000 8,900,000 78.7 November 2009

54 Jordan 6,010,000 5,950,000 101.0 March 2010

55 Singapore 7,289,000 5,076,700 143.5 December 2010

56 New Zealand 4,620,000 4,252,277 108.6 2008

 Number of
Country or % of
Rank mobile Population Last updated date
region population
phones

57 Estonia 1,982,000 1,340,602 147.8 April 2009]

58 Lebanon 2,720,000 4,224,000 64.4 Oct 2010

59 Lithuania 4,960,000 3,341,966 148.4 February 2010

60 Montenegro 1,294,167 672,180 192.53 Dec 2009

61 North Korea 1,000,000 24,051,218 3%-4% 2011

Boom of Communications in Pakistan

Pakistan is among the five most dynamic economies of developing Asia in terms of increased penetration
of mobile phones, internet and broadband, according to the Information Economy Report, 2009 published
by the United Nations Conference on Trade and Development (Unctad). Among the five countries in
terms of mobile penetration in South Asia, Pakistan is placed at number three followed by Sri Lanka and
Bhutan. Iran and Maldives are ranked above Pakistan.
The report sees the mobile industry as a ‘cash cow’ in some countries noting that Pakistan was
experiencing significant macroeconomic problems, yet the mobile market steams ahead as the effects of
the global economic recession on the global mobile network are so far limited.
With an increase of 38% over 2008, the television advertising revenue for 2009 in Pakistan was Rs 16.4
billion ((US $200m), accounting for about half of the total ad market during the year. The TV ad revenue
is continuing to rise as a percentage of total ad revenue, mostly at the expense of the print media ads.
The biggest spenders in 2009 were the telecom companies with Rs 8 billion, followed closely by fast
moving consumer goods (FMCG) sector with Rs. 7 billion.
In addition to financial services, the two key service sectors with explosive growth in last decade (1999-
2009) in Pakistan include media and telecom, both of which have helped create jobs.
APP reported that overall size of Information and Communication Technology (ICT) industry in Pakistan
has crossed more than $ 12 billion, of which $ 1 billion is foreign direct investment (FDI).
Pakistan has one of the fastest growing the tele-density in the world, currently at 63.5 percent, while
neighboring India is just 37 percent.
There are more than 95 million mobile connections in Pakistan and are still growing in numbers. This is
exponential growth as mobile telephone market has seen a 14-fold increase since the year 2000.
Huawei’s Mission:

“To focus on our customers’ market challenges and needs by providing

excellent ICT solutions and services in order to consistently create maximum
value for our customers.”
Huawei Core Values:
Customers First
Huawei exists to serve customers, whose demand is the driving force behind our development. We
continuously create long-term value for customers by being responsive to their needs and requirements.
We measure our work against how much value we bring to customers, because we can only succeed
through our customers’ success.

Dedication
We win customers’ respect and trust primarily through dedication. It includes every effort we make to
create value for customers and to improve our capabilities. We value employees’ contributions and
reward them accordingly.
Continuous Improvement
Continuous improvement is required for us to become better partners for our customers, improve our
company and grow as individuals. This process requires that we actively listen and learn in order to
improve.

Openness & Initiative

Driven by customer needs, we passionately pursue customer centric innovations in an open manner. We
believe that business success is the ultimate measure of the value of any technology, product, and
solution or process improvement.

Integrity
Integrity is our most valuable asset. It drives us to behave honestly and keep our promises, and, thus, win
our customers’ trust and respect.

Teamwork
We can only succeed through teamwork. By working closely in both good times and bad, we lay the
foundation for successful cross-cultural collaboration, streamlined inter-departmental cooperation and
efficient processes.

Huawei Brand Portfolio

Cloud
Our offering provides the building blocks for the cloud, spanning applications & services, storage &
security, and O&M
Pipe
Our end-to-end infrastructure enables operators to build an efficient, profitable, and scalable network, for
today and tomorrow

Devices
Our diversified device portfolio provides a smarter and simpler user experience for individuals, homes and
businesses alike

HuaWei Marketing Strategy

Situation Analysis
General Environment
General environment means and includes the general condition under all the factors influencing
them. These factors may be social, cultural, economic technological etc.

Demand
The demand of mobile phones in Pakistan is high from last few years.

Legal/ political
These uncertainties that is extremely variable in the political condition of Pakistan. Constant political
instability does affect the company’s relation with the government.

Economical Situation
Economical growth worldwide is in a big recession which needs careful manipulation but potentiality of
the mobile market in Pakistan is increasing and higher than any others sector

Socio-Cultural Situation
 Population and educational growth in Pakistan leading to expansion of the sector needs for cell phones
and people depend more and more on mobile communication everywhere. Literacy & illiteracy level is
not affecting using cell phones but affecting high technological cell phones, this fact needs to be
considered by Huawei.

Technological Situation
Level of technology in the world is increasing. Internet level of awareness & usage for individuals &
industrial aspect are increasing in Pakistan. New technologies in the cell phones are increasing. Future
plans for technological linkage between cities, universities, colleges, hospitals and other institutes are
increasing and can be connected to cell phones Levels of usage of the E- Technology (online bidding,
billing, complaints, blogging etc) are high and trendy. So Huawei must have this in mind that to enter in
market of Pakistan they need to keep these technological points in their mind while launching cell phones
in Pakistan.

Competition Situation
There are 19260 cell phone producers in the world, but there are more than 15 big companies competing
at the world level Market and in the Pakistan level market.

Sales Situation
Cell phones industries are one of the most profitable industries everywhere and the Market is increasing

Competitive Analysis
The Main Key Competitors in the Local Market of Huawei Mobiles are:
 Q-mobile
 Alcatel
The competitors in the International market are:

 Nokia
 Samsung
 HTC
 Motorola
 LG
 Apple I-phone
 Black berry
 Sony
 Others
Marketing Analysis
Its target market includes all age groups except children. The current trend in Pakistan is of smart phones
which is increasing day by day due to which every company is introducing there smart phones with new
features to attract the business class as well as students. Recently few new companies entered Pakistan
market with their new attractive phones. Dual sim phones are also in hype which attracts the students and
people belonging to local class, who use two and more network connections but do not like to carry two
phones so they prefer dual sim mobile phones.

Target market
 People looking for mobiles, and who have different preferences in mobile usage, moreover People
located in Lahore which also include office workers, college universities students and business man who
living a busy life having a great need to stay connected with their colleagues, friends, family and business
mails. So Huawei mobiles have a great opportunity to target these customers by giving wide range of
mobile phones with added features in the market.

Statistics about the target market (according to the last census)

Lahore
Area: 1,014 km²
Population (1998 census): 5,143,495
Average Lahore household size (1998): 7.12
Lahore Population Trend
Huawei SWOT Analysis
Strengths
 The Huawei has wide range of innovative touch screen phones which can be helpful in capturing the
Pakistan market
 The all-new touch screen phones of Huawei recognizes multi finger gestures, just as the human hand
normally behaves
 Huawei is well known for cool essential gadgets like the fixed wireless terminals, Broadband modems
along great technological innovations like the original gateways in Pakistan market
 Huawei mobile phones would be sold at a reasonable price for its value which can be there competitive
advantage.
Weaknesses
 It is not known in mobile phones as compare to its other strong competitors in the market
 The Huawei brand is not targeted towards business people and does not have a reputation as being
compatible with the corporate world Threat
 Distribution channel is not so strong and have no service center in Lahore
Opportunities
 Financial muscle is strong, can target more market segments.
 As in Pakistan they are giving supplies to UFONE and ZONG so they have opportunity to interconnect
with other telecom companies in Pakistan
 There is high hype and interest of keypad phones in Pakistan since smart phones are better known
and already widely used
Threats
 Phones are easier to make now more than ever. More companies may enter the market, and
competition is increasing
 The Huawei is marketed as a high-end phone worldwide, but phone prices in Pakistan are almost
certainly going to fall when other companies undercut the price of their phones
 MARKET SEGMENTATION
Geographic Location
Include almost all Urban; areas of Pakistan.

Demographics
Gender: Male; female except children

Age: 15years to 60 years

Socioeconomic Status
Huawei can mainly target the elite class, upper middle class and middle class in urban and sub-urban
areas – primarily Lahore.

Psycho-graphics
Young generation, executives and business class who love to have a mobile with all features they need.

Huawei Marketing Objectives

Set an aggressive buy achievable objective for the first and second years of market

First-year Objectives – Company should aim for a 2 percent share of the Pakistan mobile phone market
through unit sales volume
Second-year Objectives – are to achieve a 10 percent share based on sales
 Extend on the Huawei brand name and link to the established meaningful positioning.
 Extend on Huawei image of innovation, quality, and value.
 Measure the awareness and response in order to make adjustments to the marketing campaigns as
necessary.
 Differentiate the Huawei from other competitors in the market.
 A primary customer target is the middle-upper income professional to coordinate their busy schedules
and communicate with colleagues, friends and family.
 Secondary consumer targets are high school, college and graduate students who need one portable
multi-function device.
 Primary business target is to partner with cell phone service providers, UFONE, WARID, ZOND and
TELENOR
 Secondary business target is to cater mid-size corporations that want to help managers and employees
stay in communication or access critical data on the go.

Marketing Mix Strategy

A— Pricing Strategy
The company should use the price skimming strategy that is to say that the company for this product
should keep the price higher than the competitor and keep the target market fixes on level. Accordingly
the management would be able to recover the cost as well as some profit and we all are aware of that
every business seeks some profit to continue on the production.

Price Discrimination
According to distribution channel there is no discrimination in price since it has been introduced in
Pakistan with the help of UFONE and ZONG. All the prices such as sale price retail sale price and
purchase prices are the same as the product was launched.
 B— Distribution Strategy
It should be available in all the mobile phone centers such as Hafeez Center etc. in Lahore.

Distribution channels
Following the some of the distribution channels in Pakistan

 Mobile Zone
 Teletec
 United Mobiles
 Advance
Positioning Strategy
Product positioning is based on what image the company is going to portray in the customers minds. In
this regard, the company should position its product with respect to the customer’s needs such as,
executives, students and business men.

C— Product Strategy
Product Mix
The Product Mix includes basic phones, Smart phones, Touch phones which cater to the needs of people
accordingly.

Product Attributes
 User friendly
 Longer Battery life
 Longer talk time
 Good camera and video recorder (price varies)
Product Benefits
 Fulfills requirement of every type of customers
 Stable quality.
 Various packages and models.
 It comes in a protective packaging with consistent quality.
 It is a multinational brand with quality standards kept same for all countries.
Product Offering
Huawei is providing two different categories in mobile phones.

 Smart Phones
 Touch Phones
Product Line
 D— Advertising and Promotion Strategy
In the context of the marketing mix, promotion represents the various aspects of marketing
communication, that is, the communication of information about the product with the goal of generating a
positive customer response. Marketing communication decisions include:

Communication objectives
 Use broadcast media to provide coverage of 80% of the target market over a 6 month period.
 Reach 60% target audience at least three times over the six month period.
 Concentrate heaviest advertising in main areas of the Lahore.
Agency Selection
Almost 135 Advertising agencies exist in market and Huawei should select that Advertising Company
which is known by their outstanding work in Pakistan.

Broadcast media
The Huawei strategy for promotion is to use all the channels to promote the product and to make the loyal
customers or brand customers. Only by heavy promotion company can achieve the goal by using the
360-degrees of promotion it means all the channels of promotions including Print media, Electronic media
and other Support media. For TV commercials see Ethical Marketing Report.
Advertising
Huawei must advertise the product in a manner that it will attract the customers and general public who
can buy it or who afford it.

Electronic Media
TVC
Radio
 Print Media
Newspaper
Support Media
ATL & BTL Campaigns

Personal Selling & Sales Force

Huawei must follow the distribution channels or you can say distributors sell the goods on behalf of
company and getting the commission for their services and they must open some of their company
owned outlets or they can hire brand activation agencies, so that they can help the brand in activation
through kiosk activities in different institutes and universities etc.

Sales Promotions
Huawei must use different sales promotion like

 Offer Free memory cards

 Prize coupons
Public Relations & Publicity
Huawei need to give much importance towards the solid public relations and feedback.
Sponsorship and Event Marketing
Once the market for Huawei Mobiles has been established but just to make it more appealing among the
people, the company can sponsor the events like

 Cricket tournaments
 Jashan-e-Baharahn
 Youth adventures