国际市场营销报告

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The study of HTC in global marketing

1. Introduction

HTC is the brand of an international electronic company. The full name of HTC is HTC Corporation, and it used to be named High Tech Computer Corporation. It is located in Taiwan. Its market value had exceeded 335 hundred million dollars in 2011, which meant that it had taken the first place of Nokia. We can see how wonderful the product is. HTC is the first company applying the advanced system into mobile phone. With the growth of mobile phone, the smart phone has been achieving a significant penetration in the market. Variety of brands, different feature and system attract a large number of cell phone users. In our report, we will choose HCT as our case to analyze. The choice of HTC is mainly based on research 2011 that the market cap of HTC has surpassed NOKIA. And the HTC target to be the first China Taiwan enterprise into global top 100 brand. What’s more, market

potential of HTC to enter China will be great. In this report, we will explain how the HTC win its place in mobile market.

2. Macro-environment analysis

Chinese design company director Guo Hai Long said :Smart phone market in China had experienced two years of growth，and now it has entered the mature stage of development. Since 2007, the global smart machine Symbian, blackberry Android and Windows mobile under the leadership of the four major operating systems, showed a strong momentum of development. In the second half of 2008, while facing the backdrop of financial crisis, the smart phone still maintained a good growth trend. In 2009, smart phone market still has some growth, but the pressure is very big. Until 2010, the smart phone market will have higher growth after several years of reserves. In the next few years, smart phones will remain more than 90% market share and the feature of Android operating system, as free and open nature of the obvious advantages, will be a high share in the smart phone market.

3. Segmentation and target marketing

Chinese mobile phone users have already been exceeding 0.9 billion. Regardless of the great demand, the competition is vastly fierce. The famous international brand is required to possess not only core technology, but also a powerful design team to bring forth the new through the old technology continually. To gain a firm foothold under this severe circumstance, it is essential for companies to have a strict market analysis and strategies. As we know, the standard of market segmentation have four important factors, they are geographic factors, demographic factors, psychological factors and behavioral factors. HTC has been selling well in many countries with the support of lots of operators all over the world. According to the geographical factors, the segmentation of market of HTC can be divided into: the domestic market and the international market. And as a smart mobile phone, we also can use demographic factors and behavioral factors as standard for market segmentations to divide HTC into business and entertainment.

As for the target marketing, HTC is a special tide and brief beauty mobile phone. Its target market is young people and business people. China’s business people began to rise and expand their annual income. The young people have regular income and financial support from comfortable living standard.

4. Market entry strategy

The main entry marketing strategies HTC uses are exporting and franchising. In the following passage we will discuss the advantages and how these entry marketing

strategies are applied in its marketing. There are some advantages of exporting entry marketing strategy. First, manufacturing is home based, thus it is less risky than overseas based. Second, exporting can give an opportunity to learn overseas markets before investing in bricks and mortar. Third, it can reduce the potential risks of operating overseas. The cell phone companies sell their products through distributor or importer in home country. In view of the special geographical position, it can help the company to save a lot of money of freight and some other cost so that exporting is really a good strategy.

The second strategy is franchising. Franchising is one of the brunches of contractual agreements. Contractual agreements are long term, non-equity associations between two companies. It involves transfer to technology, processes, trademarks, and human skills. A franchise is a contract, which involves two aspects, the franchisor, which provide a standard package of products, systems, and management services, and the franchisee, which provide market, knowledge, capital, and personal involvement in management. Among HTC’s marketing, HTC can be seen as franchisor and the China Mobile Communication Corporation can be regarded as franchisee. These two companies work together to offer consumers a better product and better service. With the usage of franchising, it can be seen a rapidly growing form of licensing and an increasingly important form of international marketing. What’s more, it allows to expanding quickly with minimal capital and foreign laws and regulations are friendlier toward franchising.

5. Marketing Mix Recommendation

Marketing is defined as the activity of presenting the products a company produces to potential customers in the best possible way in order to make sales. The 4 P's of marketing mix recommendation of HTC are: product, price, place and promotion.

Product means product design and packaging that will attract customers. Making product lines that are different from other companies (product differentiation) to meet the needs of well-defined market segments is essential. As a middle and high-end market oriented company, HTC has been using some high-end hardware configuration to produce its products, so the phone’s price is obviously higher. But now HTC will change its strategy to produce the low-end products to satisfy all the needs of the consumers in the future.

Price means finding a suitable price for the product which depends on the company's market share and how competitive the market is. HTC is mainly focus on the high-end market, applied some high standard hardware configuration to reach the forefront of the similar phone products. Thus, the prices of HTC are higher than other brands of smart phones. But, with the development of the science and technology, HTC has also design some low-end products under the basis of same high qualities and same crafts to satisfy the consumers’ needs.

Place includes distribution or logistics which means getting the product from the

factory to the customer through various channels, usually through stores (retailing) or direct sales to customers in their home and increasingly through websites (e-commerce). It can include any physical store as well as virtual stores on the Internet. So it is very vital to make full use of the network marketing. HTC uses advertising way to expand the market. Although the website of HTC is quite simple, it can satisfy the information needs of all the customers. Through the website, it can attract many potential customers and enhance the effectiveness of network marketing.

Promotion includes all communications to customers. Developing brand awareness among potential customers is critical. As for the promotion of their products, HTC can provide free services and implement some strategies which include E-mail strategy, advertising strategies and Cooperative strategies. Advertising includes logo advertising and keyword advertising. It is a form of communication used to persuade an audience (viewers, readers or listeners) to take some actions with respect to products, ideas, or services.

6. Conclusion

Now HTC chose the right strategy that transferring itself from a successful ODM to a successful mobile company with brand. It used its Acknowledge model to understand the customer’s requirements and the applications. Acknowledge is a comprehensive process model that helps HTC acquire the required knowledge and process familiarity to transition work from customer sites to its own facilities, including offshore facilities. Acknowledge uses a well established mentoring process for transferring skills to mentee teams. But it is a road with full of opportunity and challenge. HTC really should catch up very quickly, because now market is so brutal and changeful, maybe it only gives HTC a very short time to determine its own destiny. As my suggestion, the operation system, application, software service of HTC will be the most key factor to determine whether the firms succeed or not. HTC need to deepen the cooperation relationship with Google. It will give HTC more advantage and strength with regard to the service, which is very critical for the success of the smart phone company.

7. Reference:

[1] Market cap (in billion) graft

[2] Horace Dediu, <HTC and self-determination>

/2011/04/09/htc-and-self-determination/

[3] /thread-632475-1-1.html