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AMB 211 – Brand Management
Assignment 1: Brand positioning Analysis
Brand: Huawei
Student name: Leshi Luo
Student number: n8999562
Background
Huawei is a Chinese Multinational networking and telecommunication equipment
and services company, is the largest telecommunication equipment company in the
world. Huawei offers a variety technologies and solutions for operators, such as
Telecom Wireless network, Telecom Fixed network, core network, network energy and
enterprise network. Moreover, Huawei offers global services to build network for
mobile and fixed network. In addition, Huawei has mobile phones, tablets, mobile
broadband and so on. Their mission is to create value for customer, promote industry
development, boost economic growth, drive sustainable development and provide
dedicated employees with a strong growth platform (Huawei, 2016).
Frame of Reference
Segmentation Base Mindset younger customers
Geography Youth who live Europe or Asia.
Demographic 15 -24 youth, might not have income or, little to mid
income. Male and Female.
Psychographic Fashionable teenagers. Be familiar with new technologies
and always keep up with latest technologies or trends.
Behaviours They use social media to contact with their friends and
families. Update and share information on Facebook or
Instagram every day.
Table 1 Market Segmentation for Hauwei
Based on the market segmentation analysis, the target audiences for Huawei is 15
to 24 years youth, who use social network all the time, have well knowledge of
technologies (Hicks, 2011). Social network communication is very important part of
young people’s life, is the latest communication tools that allow people to interact with
their friends and families (Subrahmanyam, Reich, Waechter & Espinoza, 2008).
Therefore, in order to enable Huawei to become well known, it is vital to target young
people because they tend to use social network to share their information and
experiences and also they are more willing to accept new technologies. The
motivation for the people to buy products from Huawei are influenced by their friends
and families, also the price and performance of the products. Young teenagers will be
affect by their friends, the numbers of their friends using a mobile phone, and they
feel they need to have a mobile phone not only to be the same as their friend, but also
to connect with each other (Walsh, White, Cox & Young, 2011). Moreover, price would
be a factor that influence the youth to decide to buy this brand or not, because
teenagers cannot afford an expensive mobile phone. Huawei always offer their
customers with modernized technologies with economical price (Low, 2007). In
addition, Huawei created a campaign to engage with their customers, which is “for go
anywhere mobile phone” (appendix 1), this champion indicates that the new mobile
phone from Huawei can resist the water, dust and shock in a creative way, to attract
people’s interest (Hicks, 2012). Furthermore, form the advertising poster (appendix 2),
it can be seen that they have numerous application, includes Facebook, internet
access, YouTube, Instagram, a live music player, Twitter and camera, which can
indicates that Huawei is the technology brand that put the consumers at the first place,
know what their target audiences need (Hicks, 2012). Huawei understand their target
audiences need social networks, so have mobile phones that associate with their
target markets in order to motivate their consumers to buy their products.
There are some competitors compete against Huawei, which are Apple and
Samsung. The main competitors of Huawei are Apple and Samsung, because there are
the three main smartphone sellers in the world. Additionally, Huawei is now be able
to compete with any high-end device in the marketplace, such as Apple and Samsung
(Tech.pinions: Apple v samsung v huawei and others: Measuring processor efficiency,
2016). Huawei increased its global share of the smartphone market from 6.8% in 2014
to 9% in 2015, in compare to Apple with 14% and Samsung with 21.2% of market share
(Sengupta, 2016). Huawei always take the leadership in innovation in order to enable
the customers to understand that they could get the best smartphone from Huawei
rather than other competitors (Skilton, 2016). Moreover, Huawei’s smartphone is less
expensive but have high-end handset than Apple and Samsung’s smart phone, so
Huawei have better position to compete with Apple and Samsung.
Points of Parity
When target audiences buying smartphones, there are few things that they would
considered. Firstly, smartphone’s battery life. Consumers are most care about are to
have longer battery life when they buy their smartphones (Wu, Kang & Yang, 2015).
According to Nuckles (2016), it can be known that Huawei Ascend Mate 2’s battery life
is 14 hours and 45 minutes, Apple 6 plus’s battery life is 10 hours and Samsung Galaxy
S5’s battery life is 9 hours and 42 minutes. Therefore, it can be known that Huawei
have longer battery life. Secondly, smartphones are responsive. With the development
of technologies, the smartphone are faster and faster in order to meet the consumers’
need. The smartphones will be 1000 times faster than before with today’s technologies
(Communication technologies including smartphones and laptops could now be 1,000
times faster, 2012). The faster the smartphone is, the more people are willing to use.
Thirdly, all three smart phones, IPhone, Samsung Galaxy and Huawei, are enable
customer to do what they want, such as texting, email, access to internet and so on.
Fourthly, smartphones has great UI. In order to make the target market to buy a
smartphone, whether it is easy to use is the first thing to consider. Apple IPhone are
easily to access, people can find the app or something they need very quickly (Nutting,
Olsson, Mark, LaMarche & Topley, 2014). Although Samsung Galaxy looks like very
complicated to use, it has an easy mode for consumers to access (Hart-Davis, 2014).
Additionally, Huawei is easy to access and consumers can make the change UI smaller
or bigger easily (Huawei; A breakthrough in power and efficiency - Huawei mate 8
launches in Southeast Asia, 2016). Last but not least, smartphones should have quality
hardware. Apple IPhone has better hardware and perform better than Samsung Galaxy
and Huawei (Tiongco, 2016).
Points of Difference
Huawei is a low price brand, it has the lowest price compare to Apple and Samsung
smartphones. Huawei P9 selling price is around $650, Apple IPhone 6s price range
from $649, $749, $849 for the 16 GB, 64GB and 128GB and Samsung Galaxy S7 priced
at around $694 (Tiongco, 2016). It can be established that Huawei has the lowest price
that could attract people to buy the product. In addition, Huawei uses an everyday
low price strategy to satisfy their customers (Huawei, 2016). Moreover, Huawei
differentiate their smartphones from Apple and Samsung by using different distribute
strategies. Huawei sale their phones in the phone operators, such as Optus or
Vodafone. But Apple not only sale their products in phone operators, they also have
their own Apple store for people to experience their products. In addition, Huawei’s
products are widely available, people can access it everywhere. There are some
differences from Huawei’s competitors of online presence. In Huawei’s website, it
have every link for consumers have different needs, such as it people want to buy
products from Huawei or want to work with Huawei, they have different link.
Furthermore, Huawei has latest news for their products on their website and
consumer are able to log into their website. Huawei also have direct link through to
Facebook, Twitter or YouTube (Huawei, 2016). On the other hand, Huawei
differentiate their smartphones based on product design. Huawei has the slimmest
smartphone and that will attract consumers (Warman, 2016). Furthermore, Huawei’s
product attribute for the purpose to distinct in consumer’s mind are low price and big
screen. Apple are quick and security (Hoog & Strzempka, 2011). Samsung has high
resolution of the image and big screen (Electronic equipment companies; samsung's
new 16-megapixel CMOS image sensor features high-resolution sensitivity and
performance for advanced mobile applications, 2011). Moreover, Huawei has the
lowest price compare to competitors, which will attract people to buy Huawei’s
smartphones. Also people can buy Huawei’s products easily. However, if Huawei
continuous to keep this strategy, it will not be able to do well in the long term. It is
important for Huawei to have something that are very different from its competitors,
not only price but other technologies or product design.
Recommendation
The first recommendation is place strategy, Huawei can be access and buy from
many phone operators. However, Huawei need to have its own store for customers to
experience the products. There are many other smartphone brands in phone
operators, so people will be easily attracted by other phone brands. Therefore, the
advantages to have own store is can enable the customers concentrate on the brand
and can make decision on different products under a brand rather than make a choice
for many different brands. It is will be helpful for customers to have the best possible
decision rather than need to mark decision among many different brands (Lee &
Benbasat, 2010). However, there is impossible for Huawei to have retail store in
overseas in the short term. Therefore, Huawei could have 1 to 2 retail store in Asia but
not in China in 3 years. Then Huawei could expand their retail store to Europe in next
5 to 8 years.
The second recommendation is to attract more target audiences. Huawei can have
campaign to enable more customers to join and use the products. It would be good to
have lottery draw and that will make everyone to join the campaign, everyone can
share the post on Huawei Facebook, then Huawei could choose a winner base on the
people that share the post, and that winner could get a free smartphone. After the
winner have the smartphone, he should share his thoughts about this phone. When
people share the post from Facebook, there will be more people know Huawei and
will join the campaign and let more people to know. According to Klapdor (2013), firms
use variety digital channels to send advertising message to consumers, such as create
a campaign for the purpose to increase brand awareness and enable target markets
to involve. The company could have this campaign in 6 months, could be done in the
specific states or territory. Moreover, the organization could target the specific age
group or where they live, and could make advertisement to these specific groups.
However, the newest Apple IPhone has lower their price, so the points of difference of
price for Apple may turn into points of parity for some IPhones that have low price
(Zacks Investment Research, 2016). This would compete with Huawei for the lowest
price. Therefore, Huawei should have some innovation for smartphone to be able to
compete with the competitors.
The third recommendation is product strategy. In order to differentiate from the
competitors, it is vital for Huawei to have some different technologies, design or have
more innovation, and also improve their security system. When there is an innovation
on smartphone, there will be popularly adopted (Trelease, 2008). Moreover,
smartphone security also important for customers, smartphone stores many different
sensitive data so it is vital for Huawei to understand the security issues (Flynn & Klieber,
2015). Furthermore, to have after sale service can help provide remarkable experience
for customers and that will allow customer loyalty for the organization (Ahmad &
Muhammad, 2012).
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Appendix
Appendix 1
Appendix 2