Corporate Introduction

Who is Huawei?
Founded in 1987, Huawei is a leading global information and communications
technology (ICT) solutions provider. We are committed to bringing digital to every
person, home and organization for a fully connected, intelligent world. We have
nearly 188,000 employees, and we operate in more than 170 countries and regions,
serving more than three billion people around the world.

Huawei's end-to-end portfolio of products, solutions and services are both

competitive and secure. Through open collaboration with ecosystem partners, we
create lasting value for our customers, working to empower people, enrich home
life, and inspire innovation in organizations of all shapes and sizes. At Huawei,
innovation focuses on customer needs. We invest heavily in basic research,
concentrating on technological breakthroughs that drive the world forward.
Who owns Huawei?
Huawei is a private company wholly owned by its employees. Through the Union
of Huawei Investment & Holding Co., Ltd., we implement an Employee
Shareholding Scheme that involves 96,768 employee shareholders. This scheme is
limited to employees. No government agency or outside organization holds shares
in Huawei.

Who controls and manages Huawei?

Huawei has a sound and effective corporate governance system. Shareholding

employees elect 115 representatives to form the Representatives' Commission.
This Representatives' Commission elects the Chairman of the Board and the
remaining 16 board directors. The Board of Directors elects four deputy chairs and
three executive directors. Three deputy chairs take turns serving as the company's
rotating chairman.

The rotating chairman leads the Board of Directors and its Executive Committee
while in office. The board exercises decision-making authority for corporate
strategy and operations management, and is the highest body responsible for
corporate strategy, operations management, and customer satisfaction.

Meanwhile, the Chairman of the Board chairs the Representatives' Commission.

As Huawei's highest decision-making body, the Representatives' Commission
makes decisions on important company matters, like profit distribution, capital
increases, and the elections of members of the Board of Directors and the
Supervisory Board.
Who does Huawei work with?
Externally, we rely on our customers. They are at the center of everything we do,
and we create value for them with innovative products. Internally, we rely on our
dedicated employees. Dedication is a core part of our work ethic. At Huawei, those
who contribute more get more.

We work with stakeholders including suppliers, partners, industry organizations,

open source communities, standards organizations, universities, and research
institutes all over the world to cultivate a broader ecosystem that thrives on shared
success. In this way we can help drive advancements in technology and grow the
industry as a whole.

We create local employment opportunities, pay our taxes, and comply with all
applicable laws and regulations in the countries where we operate. We help local
industries go digital, and we openly engage with governments and the media.

What do we offer the world?

We create value for our customers. Together with our partners, we provide
innovative and secure network equipment to telecom carriers. We provide our
industry customers with open, flexible, and secure ICT infrastructure products. In
addition, we provide customers with stable, secure, and trustworthy cloud services
that evolve with their needs. With our smartphones and other smart devices, we are
improving people's digital experiences in work, life, and entertainment.

We ensure secure and stable network operations. We have made cyber security and
privacy protection our top priorities since 2018. Over the past three decades, we
have worked closely with our carrier customers to build over 1,500 networks in
more than 170 countries and regions. Together, we have connected more than three
billion people around the world, and we have maintained a solid track record in
security throughout.

We promote industry development. Huawei advocates openness, collaboration, and

shared success. Through joint innovation with our customers and partners, we are
expanding the value of ICT to develop a more robust and symbiotic industry
ecosystem. Huawei is an active member of more than 400 standards organizations,
industry alliances, and open source communities, where we work with our peers to
develop mainstream standards and lay the foundation for shared success. Together,
we are driving the industry forward. We enable sustainable development.

Huawei has contributed significantly to bridging the digital divide and promoting
digital inclusion, helping to connect places as remote as Mount Everest and the
Arctic Circle.We are keenly aware of the importance of telecommunications in
emergency situations. Having faced Ebola in West Africa, nuclear contamination
triggered by the tsunami in Japan, and the massive earthquake that struck Sichuan,
China, our people hold fast in disaster zones to restore communications networks
and ensure the reliable operation of essential telecoms equipment. To further
promote sustainability, we prioritize a low-carbon footprint and environmental
protection. We are also supporting the development of the next generation of local
ICT talent to boost the digital economy.

We provide dedicated people with a strong growth platform. Inspiring dedication is

one of Huawei's core values, and it manifests itself in many ways. We assess
employees and select managers based on their contribution, as well as the extent of
their responsibilities. We provide our teams with a global development platform,
giving young team members the opportunity to shoulder greater responsibilities
and accelerate their careers. In this way, we have enabled over 100,000 Huawei
people to yield ample returns and gain memorable life experience.
 Huawei Marketing Plan
Huawei Marketing Plan with latest marketing analysis and competitive analysis.
According to Definition of Marketing, Huawei is creating interest in its potential
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.

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, Video calls.
 New technology improvement: For example quad camera setup phones, in
display finger sensor and full view display
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 mobile
Rank Country or region Population % of population Last updated date
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

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

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

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

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

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

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 www.cellular-
28 South Africa 42,300,000 47,850,700 101.3
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

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

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

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

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

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

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, 2019 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. India and Bangladesh 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 0.15% over 2018, the television advertising revenue for 2019
in Pakistan was Rs 19.62 billion, 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
2019 were the telecom companies with Rs 9.5 billion, followed closely by fast
moving consumer goods (FMCG) sector with Rs. 8 billion.
In addition to financial services, the two key service sectors with explosive growth
in last two decade (1999-2019) in Pakistan include media and telecom, both of
which have helped create jobs.
APP (Associated press of Pakistan) reported that overall size of Information and
Communication Technology (ICT) industry in Pakistan has crossed more than $
4.5 billion Dollars, of which $ 1 billion is foreign direct investment (FDI).

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
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.
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.

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
 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
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