Solution Id	Length	Case Author	Case Publisher
1015	3000 Words (26 Pages)

Contents
1.      The vision of Huawei 1
2.      The mission of Huawei 1
3.      Brand Equity of Huawei 1
3.1.       Brand awareness. 2
3.2.       Brand association. 2
3.3.       Brand loyalty. 2
3.4.       Brand asset. 2
3.5.       Brand element. 3
4.      Situational Analysis of Huawei 3
4.1.       SWOT. 3
4.1.1.         Strengths. 3
4.1.2.         Weakness. 4
4.1.3.         Opportunity. 4
4.1.4.         Threats. 4
4.2.       PESTEL. 5
4.2.1.         Political 5
4.2.2.         Economic. 5
4.2.3.         Social 5
4.2.4.         Technological 5
4.2.5.         Environmental 6
4.2.6.         Legal 6
5.      Marketing Objectives for Huawei: The Marketing Strategy of Huawei 6
5.1.       Brand building activities. 7
5.2.       Business growth and expansion. 7
5.3.       Increase size of the segments. 7
5.4.       Purchase Growth. 7
6.      Huawei’s Segmentation. 8
6.1.       Demographic segmentation. 8
3.1.1.         Age. 8
3.1.2.         Gender. 8
3.1.3.         Life-cycle stage. 8
3.1.4.         Occupation. 9
6.2.       Psychographic segmentation for consumer business segment. 9
6.2.1.         Social class and Lifestyle/ Benefits sought. 9
6.3.       Geographic segmentation. 10
6.3.1.         Region. 10
6.3.2.         Density. 10
7.      Targeting and positioning of Huawei 10
7.1.       Target market. 10
7.2.       Mass marketing. 11
7.3.       Focus on quality. 11
8.      Competitive Advantage in the marketing strategy of Huawei 11
8.1.       Cost-effectiveness. 12
8.2.       Innovation Research and Development. 12
8.3.       Strong consumer understanding. 12
9.      Huawei’s Distribution Strategy. 13
9.1.       Intensive distribution strategy including direct and indirect distribution strategy. 13
9.2.       Role of distributors in indirect distribution. 14
9.3.       Roles of VAPs in direct distribution. 14
9.4.       Roles of Gold, Silver and Authorized Partners in direct distribution. 14
10.         Competition Analysis in the marketing strategy of Huawei 15
10.1.          Strategic Group Analysis. 15
10.2.          Industry rivalry. 16
11.         Marketing mix for Huawei 16
11.1.          Product. 16
11.2.          Place. 16
11.3.          Price. 17
11.4.          Promotion. 17
11.5.          People. 17
11.6.          Process. 18
11.7.          Physical evidence. 18
12.         Promotional tactics for the marketing strategy of Huawei 18
12.1.          Digital marketing. 18
12.2.          Conventional marketing. 19
13.         Monitoring and evaluation of the marketing strategy of Huawei 19
14.         References. 20
 

1.The vision of Huawei

The vision for Huawei is to enable digital for every person, home and organization to pave the way for and create a fully connected, intelligent world (Huawei, 2019).

2.The mission of Huawei

To achieve its vision, Huawei has developed specific strategic routes. These routes work as the mission of the company in its various steps towards digitalizing the world. These routes, to the mission of the company may be encompassed as Huawei’s ability to:

• Provide full connectivity so that everyone has access to connections
• Support business through pervasive intelligence facilitations
• Personalize the digital for each of its customer segments as per the needs and demand (Huawei, 2019)

3.Brand Equity of Huawei

Huawei is listed amongst the top most valuable brand sin the force’s list – standing at a brand value of US$8.4 billion (Huawei, 2018). The company enjoys a relatively high brand equity and global recognition as well as consumption fuelled by the full range of its products featuring the Mate, P and Nova series – which gave the brand access to the high—end markets as well. The band value of Huawei influences its marketing strategy and equity through a number of characteristics:

3.1.Brand awareness

• Huawei is the second largest retailer for smartphones globally, after Samsung (Forbes, 2019)
• Huawei enjoys a global brand awareness of 62.8 point (Vizard, 2018)
• Huawei continues to focus on innovation and collaboration for increasing brand awareness and consumption (Vizard, 2018)

3.2.Brand association

• Huawei is associated with having a Chinese origin (CFR, 2019)
• Huawei is also associated with high innovation (Friedman, 2019)
• The Huawei brand is also associated with affordable and competitive pricing (SCMP, 2008)
• Huawei is also associated with high quality products (Huawei, 2019 b)

3.3.Brand loyalty

• The high brand loyalty for Huawei can also be seen through its global consumption and global sales of  58.4 million units of smartphones in the first quarter of 2019 (Yang, 2019)
• Huawei enjoys the highest brand loyalty in china, and amongst Chinese users (Byford, 2019)
• Focus on innovation, smart and strategic marketing, and fulfilling consumer needs and demands through technological breakthroughs have facilitated Huawei in maintaining high consumer loyalty (Huawei, 2018 b)

3.4.Brand asset

• Huawei has a brand value of US$8.4 billion (Huawei, 2018)
• Huawei’s experienced a growth in revenue of 19.5 percent in 2018
• The Net profit enjoyed by Huawei in 2018 approximated 59.3 billion Yuan, - which reflected an increase of 25.1% compared to 2017 (Kharpal A. , 2019)

3.5.Brand element

• Huawei adapts technology and provides its target customer groups with device characteristics as per their needs (Hopkinson, 2015)
• Adaptability and flexibility in its products, and marketing, as well as focused consumer behaviour research has allowed Huawei to excel (Hopkinson, 2015)

4.Situational Analysis of Huawei

The situational analysis of Huawei is important in understanding the various factors that influence the marketing strategy decisions for the company with respect to the market trends, consumer expectations and the overall macro-economic factors of the business environment.

3.1.SWOT

4.1.1.Strengths

The designing and the implementation of marketing strategy for Huawei makes use of the following internal strengths:

• Competitive pricing (SCMP, 2008)
• Consumer research investment (Kharpal A. , 2018)
• Integrated marketing communications (Hammett, 2019)

4.1.2.Weakness

The designing and the implementation of marketing strategy for Huawei keeps note of the following internal weaknesses:

• Mature market setup (Wong, 2012)
• Limited investment in physical retail (Huifeng, 2016)

3.1.PESTEL

3.1.1.Political

• The relationship direction between USA and China would directly influence its business operations (The Global Economy, 2019).
• Any upheavals or tensions between the USA and china will lead to a negative affect for Huawei as well as its sales and operations in the USA (Ezrati & Beston, 2019)

3.1.2.Economic

• Huawei should develop its marketing strategy based on knowledge and research about consumer confidence and purchasing power (Amadeo, 2019).
• Huawei should maintain expenditures with respect to the prevailing interest rates as well as make contingent plans for sales and marketing using the indicator for interest rate and other economic indicators (Amadeo, 2019).

3.1.3.Social

• For Huawei, higher education and high bracket in the working translates into higher sales, as well as increased access to qualified and skilled labour for its operations (World Population Review, 2019)
• For Huawei higher education level in the population also means an increase in the talent pool in addition to an empowered consumer base (Harvard, 2019).

3.Marketing mix for Huawei

The marketing mix for ABC Company as per the marketing strategy is the following:

3.1.Product

• Huawei provides smartphones primarily to consumers
• The company also provides digital solutions to industrial and business clients
• Huawei provides its products for all segments across the market
• These products differ in terms of features offered as well as price points
• Huawei makes sure to tailor its product offerings to meet consumer specifications, demands and needs across different regional markets as well as consumer segments
• Huawei maintains high focus on quality and innovation in all its products (Huawei, 2018 b)

3.2.Place

• Huawei wants to have a strong brand appeal, and a viable brand connection with its consumers
• Huawei uses emotional and functional brand appeals in marketing to attract consumer attention
• Huawei makes use of direct as well as indirect channel distributors to make its products available to the consumers
• Huawei is working on opening company operated retail stores to increase consumer interaction and awareness about its products (Huawei, 2019 d)

3.1.Conventional marketing

• Huawei is also known to recently introduce a 360-degree approach in its marketing strategy
• Huawei also makes use of traditional channels of marketing – however, relies largely on PR activities and digital interfaces for connecting with consumers
• The company is also opening its own retail spaces for increasing brand awareness, and consumer interaction with Huawei products

4.Monitoring and evaluation of the marketing strategy of Huawei

To evaluate the marketing strategy, Huawei should:

• Track and monitor sales, and note any changes upwards or downwards in the sales figure. This should especially be done near and during the launch of a marketing campaign.
• Conduct focus groups and surveys to identify changes in important brand metrics – such as brand awareness, brand recognition, brand familiarity etc.
• Track changes in the profits and revenue of the company with respect to the marketing strategy and campaigns.