Fahim ShahMarketing Mix of Huawei (4Ps of Huawei)
This is a thorough analysis of the marketing mix of Huawei (4Ps of Huawei). It starts with an analysis of the strengths and the weaknesses of the company and ends with exploring some opportunities and threats. Huawei is a Chinese multinational technology company which was founded in 1987.
Product strategies of Huawei
Huawei is a world renown provider of information and communication technology infrastructure and smart devices (Huawei, 2021). It has various products in its portfolio. They include smartphones, laptops, tablets, watches, headphones and speakers, accessories. Huawei also provides services such as mobile services, cloud computing services, Wi-Fi services and more.
The products of Huawei are used in different industries such as media, finance, power grid, railway etc. Around 3 billion people around the world use its products and services. However, it should be mentioned that the sales of its handsets have declined across Europe. Many customers prefer Samsung and iPhones to its products. Similarly, some of its services have come under huge scrutiny in some countries because of allegations of security concerns (Kleinman, 2021).
Pricing strategies of Huawei
Huawei has many competitors. Therefore, its products need to be priced in line with the competition. Consumers have the ability to change the brands they purchase if they are not satisfied with the price. Therefore, the price the company charges is often similar to that of its competitors.
However, the company charges high prices for products introduced newly in the market and that are not sold by its competitors. Therefore, it is evident that its pricing policy includes both competitive and premium pricing in addition to others applied time to time.
Place/Distribution strategies of Huawei
Place is an important component in the Marketing mix of Huawei (4Ps of Huawei). Huawei operates in more than 170 countries and regions (Huawei, 2021). It also has many research and development centers around the world. It has formed joint ventures with local authorities and companies who are given dividend for using its products and services.
Huawei sells its products through distributors. It also operates a website from which consumers can make purchases. Online selling gives it an opportunity to reach a wider audience of consumers who might not have access to a Huawei distributor. It can also get new information on consumer trends in different regions by analyzing online sales.
Huawei has a number of experience stores and customer service centers in different countries. In 2020, it announced an investment of £10 million to launch 3 stores in the UK. This demonstrates its commitment to the customers in the UK (Huawei, 2021).
Promotion strategies of Huawei
Huawei hires celebrities as brand ambassadors to promote its products. Lionel Messi was appointed as the company’s brand ambassador in 2016. It has also worked with other celebrities e.g. Scarlet Johansson, David Beckham’s son, Blooklyn and Henry Cavill.
Huawei promotes its products on television, social media, newspapers, billboards etc. It sponsors global events which gives it more publicity. It also has various offers and discounts in order to gain more customers and increase sales. However, its PR campaigns have not been much effective to counter the negative perception that some people have concerning some of its operations. Similarly, some of its ads were removed from Facebook in the past.
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Last update: 16 July 2021
References:
Huawei (2021) Who is Huawei, available at: https://www.huawei.com/uk/corporate-information (accessed 16 July 2021)
Kleinman, Z. (2021) Why is Huawei still in the UK? available at: https://www.bbc.co.uk/news/technology-57146140 (accessed 16 July 2021)
Author: Fahim Shah
Fahim Shah has been working in the UK as a visiting lecturer in Business and Tourism for the last 10 years. After completing a Bachelor’s degree in Business and Marketing, he went on to gain an MBA from the University of Bradford, the UK. He is a Fellow of Advance HE (FHEA) and a full member of the Association of Business Executives (ABE).
M Rahman
