Marketing Strategy of Huawei analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Huawei marketing mix, help the brand succeed in the market. Let us start the Huawei Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Huawei marketing strategy can be explained as follows:
Huawei is a leading mobile handset and telecom equipment manufacturer company. Huawei has two business divisions and each division has its own product line in its marketing mix that caters to different target audience.
• Huawei Consumer products: Some of the product offering in this segment are: mobile phones like Huawei P10 model, PC and tablets, wearable like Huawei watches, mobile broadband and other accessories. Annually, the brand sells 200 million smartphone units globally.
• Huawei Business Solution: Some of the product offering in this segment are
o Enterprise product: Switches, Routers, WLAN, server, storage, Cloud computing services, Network energy services and many more
o Carrier products: Wireless network, fixed network, cloud core network, carrier software, IT infrastructure, Network energy and Global services
Huawei products are used in various industries like Public safety, Government, Railway, power grid, education, media and entertainment, Finance etc.
Huawei Price/Pricing Strategy:
Below is the pricing strategy in Huawei marketing strategy:
Huawei faces tough competition from Ericson, Cisco System, ZTE corporation, Apple etc. As the numbers of competitors are more in the telecommunication industry therefore Huawei follows a competitive pricing strategy in its marketing mix for its products.
The reason for this pricing strategy is because buyers (consumers) have more bargaining power and can switch brands easily. Huawei always focuses on providing best quality products to its customers as pricing are nearly same by all competitors. Huawei also charges high prices for its new and innovative products that are not in the competitor’s product line. Huawei also sometimes follows elastic pricing policy and gives discount on its products mostly sold through ecommerce. For its business division of Enterprise and carrier products the company charges premium pricing strategy for its innovative products and solutions. Since the pandemic impacted its competitors, the brand became the leading mobile phone manufacturer by units shipped.
Following is the distribution strategy in the Huawei marketing mix:
Huawei company has its presence in more than 170 countries and employs more than 190,000 employees. Huawei along with the telecom partners has built more than 1500 networks which serves to more than 33% of the world’s population. Huawei has been working on developing joint ventures with local companies or authorities and the company provides these local authorities dividend for using Huawei products. Huawei has got a wide distribution network which includes sales person, distributers, suppliers. Huawei do not directly deal with the customers. Also the newly formed joint ventures between Huawei and local authority helps to build new channels for its product distribution.
The company sells its products through its website also.
Huawei Promotion & Advertising Strategy:
The promotional and advertising strategy in the Huawei marketing strategy is as follows:
Huawei uses omni channel to promote its brand and products. The company is involved in promotional activities in its marketing mix on TV, radio, print, social media, events and sponsorships. Huawei has hired Lionel Messi as its global brand ambassador. Some of the other celebrities like Henry Cavill and Scarlett Johansson have appeared in ads for Huawei products. Huawei also offers discount cards and coupons as a part of its sales scheme. The company also engages in sponsoring various events and sports team like Norwegian Ski federation, La Liga. Huawei is also active on social media websites for resolving customer’s issue and better connectivity with people to increase brand awareness. Hence, this covers the entire marketing mix of Huawei.
Huawei Technologies Co Ltd is a Chinese Information and Communication technology company. The company’s product and service portfolio include telecommunication equipments, enterprise network, semi conductor, cloud computing services and consumer devices.
Huawei was founded in the year 1987 by Ren Zhengfei who is also the current CEO of Huawei and the company headquarters at Shenzhen, Guandong in China. Huawei overtook Ericson to become world’s largest telecommunication manufacturer a few years back.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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