Marketing Plan for Huawei Enterprise Solution in 2016
This report comprises of a comprehensive international marketing plan for Huawei Company that operates within the technology industry, for their new branch in Saudi Arabia. The marketing plan basically intends to create awareness within the target market concerning the services and products rendered by the company. In the new market, the branch will target people that are fascinated by technology products such as phones and show great interests in the newly emerging designs of electronic devices. Huawei enterprise solution will focus on cloud computing particularly within the government sector. The target group will also involve people aged between 20 and 60years. In designing this marketing plan, I followed a detailed analysis of the Saudi Arabian market to discover the existing business opportunities for Huawei products and services. In discovering the factors affecting the target market, I applied the Pestle analytical tool to establish the economic, political, social, technological and environmental issues. In addition, I used the SWOT analysis to analyze the company’s internal environment (Gilligan 108).
- To build a strong brand name even within foreign markets
- To enlarge the company’s clientele base and market share
- To boost company’s revenues through business sustainability and subsequent expansions
- To increase Huawei’s competitiveness across all markets
Technology is among the core strengths of Huawei. The company sources their supplies and technologies from the highly ranked corporate firms, which allows the sourcing of the latest, and high quality hardware and software. Under such standards, the firm manages to constantly improve their devices thereby facilitating efficiency when customers are operating the gadgets. Secondly, Huawei has a strong management team that is highly capable of motivating employees for better performance and increased reputation. The company has built a strong work culture that involves factors like timely payment as well as training and development programs (Ting 20).
The company has a weak organizational structure that results in the company recruiting very many new staffs (Ting 24). As a result, this consequently leads to an increasingly high labor cost. In addition, with an increasingly huge workforce, the company is pressed to start up new departments and divisions, which affects the company’s growth.
Competitors such as Telecom are among the major threats facing Huawei business (Gilligan 92). Secondly, international trade agreements may also threaten the company’s expansion to some foreign markets. Regulatory as well as legal policies can limit a business’s ability to excel.
Huawei works in collaboration with a limited number of firms. This enables the company to generate more clients and more profits. The application of Wi-MAX allows global internet connectivity access. Consequently, the firm manages to generate profits that offset labor and production costs due to cost-efficiencies linked to development and production of devices due to using other operators (Kotler 522).
Saudi Arabia will present an attractive investment opportunity for Huawei because of its strong economy majorly augmented by the oil industry. Moreover, the country has massive oil reserves that generate around 16% of global oil reserves. In this case, the high revenue atmosphere has been spurring a boom both in oil and non-oil projects of development (Ting 29).
The stable political environment of Saudi Arabia will be a great advantage to Huawei business in the region. However, political leaders such as ministers can risk the operation of a business in a foreign market by destroying its reputation. Such politicians may cite scams plus false information regarding foreign technology. As Huawei ventures into the Saudi Arabian market, such persons may claim that foreign technologies can disrupt network or cause security threats (Ting 28).
Environmental issues including carbon emissions are considered to lead to global warming. For a number of years, there have been claims of a certain percentage of such emissions. Such factors threaten operations of telecommunication companies like Huawei (Ting 30).
The high living standards enjoyed by Saudi citizens by adopting western lifestyle will be beneficial to Huawei business. The financial position will enable the target audience purchase Huawei products. The society’s multicultural nature also will be beneficial to the firm by allowing the hiring of many foreigners.
The technological environment of Saudi Arabia will be a great opportunity for Huawei business. The region’s population consists of young and very technologically knowledgeable professionals (Ting 31). Further, the IT sector tends to support other sectors including IT service sector. Indeed, Saudi population is among the biggest number of satellite, internet and mobile phone users within Middle East.
The marketing plan targets the Saudi Arabian market. After executing this plan successfully, Huawei will accomplish their objectives in the foreign market. The target group involves persons aged between 20 and 60years, comprising of people with a reliable income to afford such gadgets. In addition, the outlet will also target the government sector to offer cloud computing services.
- To create awareness and build a strong brand name for the company in the new market
- To secure a bigger market share within the global market while also securing a bigger share of at least 5% of Saudi Arabian market within year one of marketing plan implementation
- To secure a considerable trust and confidence from the Saudi customers
The marketing strategy will be based on the 4Ps of marketing (Kotler 816).
- Product: The Company will develop and supply products of high quality, whose designs will be based on satisfying the needs of the target market. In order to serve diverse types of customers, Huawei enterprise solution will provide variety of products and services. The outlet will focus on supplying cloud computing services particularly within the government sector. The business also intends to ensure exceptional consumer services. Eco-friendly products will similarly be introduced to meet the need of the increasing sensitivity to environment among Saudi consumers.
- Price: The pricing tactic will involve a blend of premium and competitive pricing strategy. This will ensure that the target audience has the ability to spend on the various products.
- Place: The business will be located in a strategic location to ensure visibility and accessibility. The Saudi Arabian branch of Huawei will be wholly owned to ensure full control of the business.
- Promotion: The business will adopt diverse promotional channels including public relations, e-marketing and social networking, among others. Indeed, the main promotional channel will be e-marketing particularly using social media sites such as Twitter. This is because this medium is very popular in Saudi Arabia. Moreover, it is expected that the society will become increasingly digitalized in the future, a trend which will create business opportunities for Huawei. The brand will aggressively engage in creating a strong and constant presence within Saudi Arabia. The business will also adopt the online PR to keep customers updated and increasingly build the company’s brand by supporting low carbon economy and global ecology.
The intended marketing budget in this marketing plan will be approximately $20,000 in the first year of operations in Saudi Arabia. The budget will aim to cater for the marketing activities, establishment of business premises and labor costs, amongst others.
Monitoring and Evaluation
In assessing the effectiveness and success of this marketing plan, I will employ various performance indicators to establish the outcomes. The performance indicators will include increased number of clients, obtaining the expected results linked to the marketing activities, increased brand awareness, enhanced quality of consumer services and obtaining a larger market share, among others.
Appendix I: SWOT Analysis
|Huawei SWOT Analysis
|Weak organizational culture
|Competitors such as Telecom
|Collaboration with few firms
|Strong management team
|Extremely huge workforce beyond control
|International trade agreements
|Application of Wi-MAX technology allowing worldwide internet connectivity access
|Strong work culture
|Regulatory & legal policies
Gilligan, Colin. Strategic Marketing Planning. UK: Butterworth-Heinemann, 2003. Print.
Kotler, Phillip. Marketing Management. NJ: Prentice Hall, 2000. Print.
Ting, Pan. “Improving Huawei International Supply Chain.” International Management Journal 1.1(2008):1-76.