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Table of contents 1. Table of contents-------------------------------------------------------------P1. 2. Company Background-------------------------------------------------------P2. --------About HQC background --------Marketing objective --------Marketing Mix 3.

How to choose a strategy---------------------------------------------------P3-5. --------International expansion --------China market: environmental analysis --------Product --------Market --------Costs --------Communication strategy 4. Analysis and suggest strategy----------------------------------------------P6-8. --------Analysis the strategic alternatives --------Recommendation 5. Harvard Referencing--------------------------------------------------------P9.


Our company background HQC (call High Quality International Electronic Limited Company) is a listed company in 2006. The main products are mobile phones, such as Smartphone. Founded by Cherry Wong, Henry Lam, Joe Chan, Director of the board & Chairman of HQC Foundation and Andy Chou, President and CEO. It established special partnership with the main mobile brands, including the leading five operators in Europe etc. Then, we had three hundred employees to help our company to create equipments. Marketing objectives are testing and observation Hong Kong reaction by our product and matching our consumers needs. According our company annual business report, HQCs sale revenue is US $12 billion to increase 40 percent in 2009-2010. Marketing Mix Product Our company was launched HQC 4G phone in Hong Kong to meet our consumer need and satisfy because people need the mobile phone to communicate with others. Price We face our business may increase or decrease the price of 4G phone if other stores have the same product. The price of HQC 4G phone about 5000 dollars. Place We can use horizontal marketing system to distribute our 4G phone in various regions of Hong Kong mobile phone shops. We must sell fifty above 4G phone per day. Promotion (communication strategy) In Hong Kong, we through the internet to promote our product because many people like surfing the internet, such as our target customers are 18-59 years old. Then, we put the advertising in Yahoo of eMarketing because it has many people like to yahoo website to find information. We used Dual Adaptation in Hong Kong, the total of cost about 5 billion and the profit about 3 billion.


International expansion Our company wants to expand in China market so we should develop the HQC 4G phone to launch in China market to increase market share. Then, we through the product or cost to choose communication strategy to help our firms development. China market-Environmental analysis Economy China has over 1.3 billion people so the Peoples Republic of China is the worlds fourth largest country and the worlds fastest growing economy. Then, China is a dynamic market, so some of international buyers can find lots of quality products at the competitive prices. According to the National Bureau of Statistics of China released data of the Chinas economy in 2010, GDP was 397983 trillion RMB in 2010, at the constant price an increase 10.3 percent so the growth rate 1.1 percentage points faster than the previous year (National Bureau of Statistics of China, 2011).We can see Chinas economic was booming. Competitive analysis In China market, our main competitors are HTC, Apple Iphone 4, Nokia, Motorola or Samsung. According Gartner Dataquests analysis, mobile phones competitive among mobile phones are increasing because there are different types of new products to launch, such as Iphone 4, HTC Wildfire (G8), etc. It can make consumers optional to continue increasing (HK-APPLE, 2010). In 2010, HTCs market share increased 0.5 percent and Nokia decreased 1.5 percent. Other brands also use the low price, usually between about 1,500-2,700 RMB. Then, the price of Apple Iphone 4 about 5,600 RMB (HK-APPLE, 2010). We can decrease the price of our product to fit in China market because we should consider competitors price and customers incomes, such as decrease the price of our product to 4,300 RMB. Market size In 2009-2010, our overall products reached US $ 12 billion to increase 40 percent. Our company forecasts 2011-2015 Compound Annual Growth Rate for Chinas Smartphone market can reach 20 percent. In 2010, the Current Mobile Market Size was 590 billion with RMB. The total of

China Mobile Market Share was 78 percent, such as Nokia or HTC etc. The total of China Mobile Market Revenue was 555.4 billion with RMB. (YAHOOS BLOG of Hong Kong, 2008). So that our company can take advantage of growth of China Mobile to launch HQC 4G phone increase sales, make customers use our 4G phone to broaden our company market size in China market. Target market When our company launch HQC 4G phone, we want to focus on the part of city people in Shenzhen. The age of 18 to 59 years old with male and female, the main of people have working experience because they have the ability to almost buy the phone advantage. According National Bureau of Statistics of China, the total urban population of Shenzhen is 1400 million people. Disposable incomes of urban residents are 17175 RMB per month so the real incomes increase of 9.8 percent. In 2011 of January, The total level of urban consumer price increase 4.9 percent. The urban increase 4.8 percent and the rural areas increase 5.2 percent. The urban residents consumer ability can buy HQC 4G phone because the urban residents of buying power is increasing continuously (National Bureau of Statistics of China, 2011). Product Positioning Our 4G phone is firstly launch a powerful mobile phone in the China market. It contains some unique specifications and WiMax network. For example, compare with LG and Samsung products, our 4G phone has a competitive advantage because they are not launch more high quality mobile phone and their phone do not offer WiM ax Network so our 4G phone has unique differentiation, such as it can offer multimedia services and the price about 4300 RMB so the urban residents have the ability to buy. So our 4G phone can help to business to get value and consumer to create benefit potential and put the impression in their mind (Gary, Philip, 2009, p222). Product Our company expands our products line length in China market so our company launch the HQC 4G phone to attract customers to buy. The 4G phone will support WiMax network and use Android system. The 4G phones speed compare with other phones is faster. It can offer some multimedia services. In functional specification, the HQC phone contains 4.5 inch WVGA AMOLED

display, 1 GB capacity etc. If HQC 4G phone fits the China market, we do not execute product adaptation because the HQC 4G phone functions can be fit in China market and customer had used the same phone, such as there are the same Smartphone in China about Iphone 4 (China Mobile 2003-2010). Both have touch screen, so they will adapt to HQC 4G phone. Market In the market, everyone needs to use the phone to communicate with others and can through the network service of the phone to find some information and play games so the phone is important for everyone. According our company research, the main target customer through functions, quality or colors to buy the phone, such as they like the colors of the phone are black or grey and they want to have Bluetooth, network services with the phone. According our company to interview with customers, our target customers through their income to decide to buy the phone, they want the price is 2000-4300 RMB. Cost Our company does not execute product adaption because we launch the HQC 4G phone base on the original of parts. It can reduce more manufacture costs. But we should use Product extension-Communication Adaptation strategy to fit China market because we should change promotion approach to attract some customer to buy it. According our company analysis, When we forecast sales amount 200,000,00 of 4G phones 4300 RMB , the original of parts cost are 250.5 RMB , the manufacturing costs are 10 RMB, the total cost are ( 250.5 RMB 10 RMB ) = 260.5 RMB. The

total of advertising costs are 27,200 RMB 30days= 81,6000 RMB. The total costs are (260.5 RMB 200,000,00 RMB )+ 816000 RMB= 521,0816,000 RMB. Communication strategy In the part of promotion, we want to use television advertising to promote our product because our target customers are 18-59 years old male and female like the Smartphone. They have TV in their home so it is easily to see many advertising, such as we want to focus the advertising about twenty minutes on CCTV-4 of China International Channels. We use television advertising can increase brand awareness and estimate to gain market share 54 percent.


Analysis the strategic alternatives Strategy 1: Product and Communication Extension This strategy involves marketing standardized product to use uniform communications strategy. When the firm sells the same product, they use the same advertising promotional themes and appeal in domestic market. (Warren J, 2002, p347). But all things do not change, so it can make customers difficult to adapt our product and strategy. According our company analysis, if our company uses this strategy, we forecast the profit will be: The cost of manufacture: 200,000,00 260.5 RMB = 521,000,0000 RMB Advertising cost : 27,200 RMB 30days = 81,6000 RMB The net result is = 521,081,6000RMB

Strategy 2: Product Extension-Communication Adaptation It refers to the same product sold in foreign market with adjustments in marketing communications because a product fill different need or serve different function (Warren J, 2002, p 347-348). According our company analysis, if our company uses this strategy, we forecast the profit will be: Sales : 200 ,000,00 4,300 RMB = 860,000,0000 RMB The cost of manufacture: 200,000,00 260.5 RMB = 521,000,0000 RMB Advertising cost : 27,200 RMB 30days = 81,6000 RMB The net result is= 338,918,4000 RMB

Strategy 3: Product Adaptation-Communication Extension It refers to the product modified but the communications strategy remains to unchanged. (Sak, John J p350). It modifies the product but does not change communication strategy, so it may reflect the disagreement situation. Because as a product to select the right communication strategy. When we modify the product, the manufacture cost will increase.

According our company analysis, if our company uses this strategy, we forecast the profit will be: Sales : 200,000,00 4,300 RMB = 860,000,0000 RMB The cost of manufacture : 200,000,00 270 RMB = 540,000,0000 RMB Advertising cost : 27,200 RMB 30days = 81,6000 RMB The net result is = 319,918,4000 RMB

Strategy 4: Dual Adaptation This means the product and communications strategy modified that it can suit different markets. The strategy used in there is differences in environmental conditions and in functions that product serves (Sak, John J p351). When we use this strategy, the manufacture cost and communication cost will increase. According our company analysis, if our company uses this strategy, we forecast the profit will be: Sales : 20000000 4,300 RMB = 860,000,0000 RMB

The cost of manufacture : 20000000 270 RMB = 540,000,0000 RMB Advertising cost : 27,200 RMB 35 days = 95,2000RMB The net result is = 319,904,8000 RMB

Strategy 5: Product Invention It refers to this strategy involves planning and design of new products for global markets (Warren J, 2002, p349). This strategy about foreign countries does have purchasing power for existing products so it can launch the new products to the market to increase sales (Orville C, John W, 2008, p303). When we use this strategy, the overall costs will increase, such as communication cost. According our company analysis, if our company uses this strategy, we forecast the profit will be:


: 20000000 4300 RMB = 860,000,0000 RMB

The cost of manufacture: 20000000 270 RMB = 540, 000, 0000 RMB Advertising cost : 27,200 RMB 40 days = 108,8000 RMB The net result is = 319,891,2000 RMB Recommendation Our company chooses the Product extension-Communication Adaptation strategy. According our company analysis of all strategy, the strategy 2 can gain the high profit. The strategy 2 is appropriate for our company because we do not modify the product. It is because there is the same phone in China, such as Iphone 4. Both have touch screen, so they will naturally adapt to HQC 4G phone. We mainly focus on the part of promotion because we want to through advertising to increase sales and profits and attract our target customer to buy. It can reduce the parts of costs, such as product modifies cost and manufacturing cost because product modifies cost expensive than change communication strategy cost etc.

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(Excluding the cover page, table of contents and reference list) Harvard Referencing 1. China Mobile, 2003-2011, Handsets & Tariffs, Retrieved March 5 2011, from http://www.hk.chinamobile.com/p_tariff_handset_shops_en.jsp 2. Gary Armstrong, Philip Kotler, 2009, MARKETING An Introduction, 9th ed , Prentice Hall, United States of America 3. HK - APPLE, 2010, July 2010 report on Chinas Mobile Phone Market Analysis (simple version)__C5_Nokia mobile phone/3G, Retrieved March 5 2011, from http://www.hk-apple.com/july-2010-chinau002639s-mobile-phone-market-analys4756.html 4. National bureau of Statistics of China, 2011,CHINA STSTIISTICS OF CHINA 2009, Retrieved March 5 2011, from http://www.stats.gov.cn/tjsj/ndsj/2009/indexeh.htm 5. Orville C. Walker, John W. Mullins, 2008, Marketing strategy: a decision-focused approach, 6th ed, Mc Graw-Hill Companies, New York 6. Warren J.Keegan,2002, Global marketing management, 7th ed , Prentice Hall, United States of America 7. YAHOOS BLOG of Hong Kong, 2008, China Mobile (0941. HK, CHL): Dont forget the market size of growing, Retrieved March 6 2011, from http://hk.myblog.yahoo.com/fred_kk_wong/article?mid=121