Table of Contents

Executive Summary................................................................................................................... 3
Company Analysis..................................................................................................................... 3
Company Background.................................................................................................... 3
Mission Statement.......................................................................................................... 4
Market Analysis......................................................................................................................... 4

AN
Environment Analysis................................................................................................................ 5
The Macro Environment:................................................................................................5

PL
The Michael Porter’s Five Forces:................................................................................ 6

G
The Micro Environment:................................................................................................ 7
N
SWOT Analysis..........................................................................................................................8
TI
Key Issues.................................................................................................................................. 9
KE

Marketing Objectives................................................................................................................. 9
AR

Marketing Strategies................................................................................................................ 10
Recommendations.................................................................................................................... 11
M

Implementation Plan................................................................................................................ 13
E

Controls.................................................................................................................................... 13
PL

Contingency Plans....................................................................................................................14
M

Conclusion................................................................................................................................15
SA

References................................................................................................................................ 16
Appendix.................................................................................................................................. 20

2
Executive Summary

Huawei is an international technology company that was founded in 1987, specialising in

telecommunications equipment, electronics and enterprise solutions (Corporate information
n.d.). Despite Huawei’s innovative products and long standing market presence, they are
currently facing challenges relating to brand perception and reputation, and a lack of market
share. This marketing plan indicates that the smartphone market is in a mature stage and is
currently facing the effects of a fragile economy and high demand for good quality products
and new features from consumers in the macro and micro environment. A SWOT analysis of
Huawei is also included, highlighting key areas where improvements need to be made.

AN
Following this, the marketing objectives of improving brand perception and increasing
market share as well as the marketing strategy of market penetration whereby Huawei will

PL
use their lower prices as a competitive advantage is suggested. The report is finalised with
detailed recommendations surrounding product, place, price and promotion, implementation

G
plan with a duration of 11 months, and controls for Huawei to follow in its future operation.
N
TI
KE

Company Analysis
AR

Company Background

Huawei Technologies Co. is a technological provider that operates worldwide, specialising in

M

communications technology and smart devices (Corporate information n.d.). The company
E

has its headquarters in China however in terms of its operations in Australia, they currently
PL

employ 260 people and had a pre-tax profit of $17.1 million in 2020 (Duckett 2021). On a
M

global level, Huawei has expanded significantly in the last ten years, becoming the second
SA

largest consumer electronics manufacturer globally in terms of volume (O’Malley 2022).

This growth can be attributed to the various partnerships formed with other
telecommunications groups such as Vodafone Group PLC as well as the introduction of their
new smartphone technologies such as their P50 Pocket Foldable Smartphone and Matebook
Laptop (Huawei n.d.).

Despite this global growth however, Huawei only obtains a small amount of market share in
Australia at 2.7% (Hughes 2023) as 85.5% of their revenue comes from the regions of China,
Europe, Middle East and Africa (O’Malley 2022). Huawei currently faces issues of bans in
participating in the construction of Australia’s National Broadband Network (nbn) and 5G

3
Network which has hence negatively affected their mobile phone sales. Huawei currently
operates against the key competitors of Apple, Samsung, Oppo, and Google (see Appendix
A).

Huawei prioritises research and innovation as a marketing goal to drive society forward,
allocating a total of 25% of total revenue in 2022 to research and development spending
(Corporate information n.d.). In recent times, Huawei has also focused on the digital
transformation of their marketing strategy. Utilising digital platforms, the company has been
able to improve their marketing and promotion by bringing certain activities and events to the
one source allowing all international markets to come together (Huawei n.d.). Additionally,

AN
Huawei also employs the fast development of new products as a component of their strategic

PL
marketing to keep up with the ever evolving smartphone industry. This can be seen through
the development of their new P50 Pocket Foldable Smartphone. Addressing the marketing

G
elements of price and distribution, Huawei focuses on a competitive pricing strategy and uses
N
e-commerce and retail outlets as their main distribution (Shastri 2022).
TI
KE

Mission Statement
AR

Huawei expresses that their mission is to be committed to “bringing digital to every person,
home and organisation for a fully connected, intelligent world” (Corporate information n.d.).
M

This mission statement emphasises their customer-centric commitment and instils a positive
E

image of the firm which can be seen as an element of their strategic marketing.
PL

Market Analysis
M
SA

The Australian Smartphone industry has “remained flat with 7.38 million units in 2022, a
meagre growth of 0.1%”. This drop can be attributed to the tapering consumer demand and
cautious spending due to rising living costs and high inflation” (Cruz, 2023). Due to these
consumer trends, the smartphone market is in a mature stage where companies are trying to
focus on their unique competitive advantage. Highly competitive and concentrated, the
industry is dominated by two key players who already have an extremely loyal customer
base, “Apple remains the leading smartphone brand in Australia. Just in the first quarter of
2020, Apple had sold around 842 thousand Apple smartphones, followed by Samsung with
364 thousand units sold” (Law, 2023).

4
Environment Analysis

The Macro Environment:

Political & Legal

Again, there are serious and growing political/legal concerns over Huawei and their
associated security risks. “In August 2018, the Australian government banned ‘high-risk
vendors’—including Huawei—from involvement in the country’s 5G networks…So, what
motivated the Australian government’s decision on Huawei?...it’s about whole-of-economy
security assurance” (Cave, 2019). Not only does this impact the image of the brand, it has
critically weakened their revenue streams and position in the smartphone market.

AN
Economic

PL
Australia’s economy is extremely fragile currently, with the rise in inflation and interest rates

G
not slowing down any time soon. In essence, higher interest and inflation rates reduce
N
consumer spending and the willingness to pay for goods that are high in price, in turn
TI
revenue; “consumers are now choosing to keep their existing smartphones for almost three
KE

years in response to higher prices” (Tung, 2019).

AR

Social
The premiumisation of smartphones is notably the driving force behind the industry’s market
M

growth and evidently consumer preferences. It is here where “consumers want top-notch
E

performance, massive battery, and high-end 5G chipsets – all rolled into an ultra-slim build,
PL

without cutting any corners on product promise” (Sheth, 2022). In addition to this, another
M

key consumer preference influencing smartphone market growth is the increase in online
SA

purchases. It is here where “factors such as convenience, assortments, and special prices or
discounts are increasing the online sales of smartphones” (Smith, 2023).

Technological
There is no doubt that artificial intelligence is driving the smartphone industry and ultimately
changing the way in which consumers interact with technology. It is here thanks to the
advancements in technology, smartphone companies have been able to offer features such as
facial recognition and augmented reality. “Huawei….have introduced AI-based chips on
smartphones that can perform multiple operations per second and use significantly less power
to perform these tasks” (Smith, 2023).

5
The Michael Porter’s Five Forces:

Rivalry Among Competitors

Porter's Five Forces is a model that identifies and analyses five competitive forces that shape
every industry and helps determine an industry's weaknesses and strengths (Scott, 2023).
Buyers of the smartphone industry may seek out a company’s competition, in this case
Huawei offering the latest technologies in their smartphones whilst remaining lower in price;
“The larger the number of competitors, along with the number of equivalent products and
services they offer, the lesser the power of a company” (Scott, 2023). This is appealing to

AN
consumers now more than ever as inflation continues to rise, limiting the amount of
household disposable income.

PL
Threat of Potential Entry

G
In the mobile phone industry, the threat of new entrants can be seen as relatively low given
N
the barriers of entry (Rajasekar & Al Raee 2013) and the amount of trust required for
TI
customers to use smartphone brands. These barriers to entry may include strong capital
KE

requirements that are required to cover the high costs associated with the smartphone industry
AR

and challenges in gaining access to distribution channels including both direct channels as
well as retailers (Rajasekar & Al Raee 2013). Additionally, the notion of brand loyalty can
M

play a factor particularly for a competitor such as Apple, as it is unlikely that consumers will
E

switch to a new entrant in the industry (Beers 2022).

PL

Bargaining Power of Suppliers

M

There is a moderate level of bargaining power of suppliers in the smartphone industry. As

SA

smartphones are so prevalent with consumers in today’s society, it is not significantly difficult
to acquire products from different suppliers. There is also a relatively low switching cost and
no major difference in price of different suppliers (Maverick 2022). The only factor which
may increase the bargaining power of suppliers in the smartphone industry is the importance
of the suppliers products to the final consumer product.

6
Bargaining Power of Buyers
The bargaining power of buyers in the smartphone industry can be seen as moderate as there
is a high level of buyer concentration and buyers in this market can be sensitive to prices
depending on the company (Rajasekar & Al Raee 2013). One of the main elements that
increases the power of buyers in this industry is the pressure that can be placed on companies
to increase smartphone quality, or add features. However the element of high switching costs
can somewhat diminish this power of buyers in the smartphone industry (Rajasekar & Al
Raee 2013).

Threat of Substitutes

AN
There is a high threat for substitutes in the smartphone industry given the amount of

PL
competitors producing essentially the same product with many of the same features and price
points. However these even slight differences still pose a threat, particularly to companies

G
like Huawei who have a low market share. The main threat is a company able to provide
N
better products and features to their customers whilst maintaining a low price (Rajasekar &
TI
Al Raee 2013). Additionally, there are companies such as Apple who have saturated such a
KE

large portion of the market that it makes it difficult for smaller companies to be chosen as a
substitute product by customers.
AR
M

The Micro Environment:

E

Customers
PL

Huawei targets “college students as their main target customers, because they believe most
college students will become a part of people with mid-level income in the future” (Yueyuan,
M

2022). College students are usually highly educated and technology savvy, meaning that there
SA

is little concern about figuring out use of new and innovative products. Additionally, this
group has very little assets and has a fairly low disposable income due to their educational
commitments.

Intermediaries
Consumers mainly purchase from Huawei's through traditional [in-store] and digitised
channels. It is here where the company and their distributors such as Catch, Kogan and The
Good Guys are already taking advantage of growing consumer preference of online
purchases.

7
Competitors
There is no doubt that growing concerns over Huawei's security risks have put off many
buyers from purchasing from their latest collection of high-tech smartphones. Consumers are
likely to seek other businesses in this highly competitive environment such as Apple or
Samsung; “Australia is among the Western countries that have banned the Chinese tech giant
from building their 5G networks on national security grounds…stemming from Beijing's
influence over Chinese companies” (Zhou, 2019). This impacts Huawei’s reputation
negatively, and the organisation's market share and revenue.

AN
SWOT Analysis

PL
Strengths Weaknesses
● Competitive pricing with a wide ● Huawei has low market share in the
variety of priced products - ranging Australian market at an estimated

G
from $185 - $1899 (Amazon n.d.). 2-3% (Burgio-Ficca 2022).
N
● Large global presence - operating in ● Poor positioning with the market
TI
170 countries and regions perception of low price and low
KE

(Corporate Information n.d.). quality products

(Low 2016).
AR

● Controversies: being banned in the

US (Davidson 2020)
M

Opportunities Threats
● Huawei is a relatively large brand in ● Main competition Apple and
E

the Asian market, giving Huawei the Samsung hold a large majority of the
PL

opportunity to leverage influence in Australian market share (64.7% and

other countries in Australia (28.92% 10% respectively) (Burgio-Ficca
M

market share in China, 14.4% in Sri 2022).

Lanka, 12.51% in
SA

Malaysia)(Kameke 2022). ● Australia has banned Huawei from

contributing to 5G technology and
● New potential technological telecommunications (Buchholz
developments in artificial 2020).
intelligence.
● Rise in cost of materials for
● Opportunities to gain more brand smartphone production such as
recognition and market share in the precious metals and minerals
Australian consumer market for (Lotzof 2020).
smartphones as 85.5% of revenue
comes from the regions of China,
Europe, Middle East and Africa
(O’Malley 2022).

8
 Key Issues

It is evident that Huawei is experiencing key issues in their operations from a strategic and
marketing position. The key issues identified surround the areas of brand perception and
reputation and hence, market share. One of Huawei’s issues is the external impact of the
Australian government ban on the company engaging in the construction of nbn and 5G
networks. These bans ultimately create a negative brand perception and reputation for
customers as they develop concerns for safety and security when using Huawei’s products,
despite the mobile phones still being available for use. This in turn affects sales revenue and

AN
subsequent market share for the company. Obviously, these conditions are out of the
company’s control being implemented from the political element of the macroenvironment;

PL
however Huawei has the opportunity to alter their brand perception and favorability among
the mobile phone market in Australia. This leads to a second issue of extremely low market

G
share in the Australian mobile phone market at 2.5% making it extremely difficult for
N
Huawei to develop a brand presence and competitive advantage amongst Australian
TI
consumers.
KE
AR

Marketing Objectives
M

Following the identification of Huawei’s key issues, three marketing objectives have been
E

developed which will allow Huawei to improve its brand perception, market share, and
PL

revenue diversification, ultimately positioning itself for sustained growth and success in the
M

evolving smartphone industry.

SA

Specific Measurable Achievable Relevant Timebound

Improve Increase Huawei’s Measuring progress Huawei already Improving brand Achieving the
Brand brand favorability of brand obtains high perception may desired
Perception amongst the favorability, survey brand favorability ultimately rebuild improvement
analysis can be in other countries customers' trust, in brand
Australian market
conducted quarterly such as China opening favorability
by 15% to improve by Huawei on the (O’Malley 2022) opportunities to within the next
overall brand audience response new markets and 10-12 months.
perception. to campaigns and growth.
advertisements.

9
Expand Increase Huawei’s Huawei may Huawei generated A larger market Achieve the
Market market share by measure total a relatively high share will lead to targeted market
Share 5% within the revenue over a global total increased share increase
mobile phone revenue of $98.4 revenues and within the next
quarterly period and
industry in billion in 2021. solidify Huawei’s 12 months.
Australia. compare this to the Although the improved
industry wide total majority of sales positioning as a
revenue for the do come from mobile phone
quarter to identify other regions such manufacturer.
market share as China and
growth over the 12 Europe (O’Malley
2022), it does

AN
month period.
demonstrate the
opportunity they
have in Australia.

PL
G
N
TI
Marketing Strategies
KE

It is important for Huawei to implement a successful marketing strategy that would increase
AR

its market share and improve their brand image in this mature market.

Market Penetration Strategy

M

Huawei should introduce a price reduction strategy in which their products are offered at a
E
PL

lower price when compared to competitors. It is here where this strategy helps to stimulate
and entice consumer demand while gaining higher market share quickly; “disrupts the
M

competition…and therefore dominates the market because of its cost-leadership position”

SA

(Smith, 2023). This would ultimately give Huawei a feasible competitive edge compared to
the high prices offered by competitors such as Apple and Samsung.

Product Differentiation

Huawei should adopt a product differentiation strategy that “highlight the unique features and
benefits of its product or service to separate it from competitors” (Hart, 2022). It is here
where the technology company can develop strong brand salience and recognition as a result
of innovative and distinct features. Additionally, it increases the likelihood that consumers

10
will choose Huawei’s products over a generic or undifferentiated product. This ultimately
boosts market share and evidently profit.

Recommendations

Huawei should focus on improving how Australian consumers recognise and think about
their brand. With the negative impacts of Huawei’s ban from working on the nbn and 5G
networks already being a major issue (Hartcher 2021), it is important for Huawei to improve
its reputation and market share through low cost differentiation as product differentiation may

AN
not be feasible for the company due to their low market share and low capital.

Product

PL
To do this, Huawei should launch marketing campaigns that highlight their dedication to

G
quality, security, and privacy. Huawei needs to be factual and reinforce a highly important
N
key message to their audience ‘Huawei’s response has been simple: it’s not a security
TI
threat…there is no evidence that the company works inappropriately with the Chinese
KE

government or that it would in the future” (Leacher & Brandon 2019). Huawei can reassure
AR

their customers and ease their worries by offering a lifetime subscription to a security
software that is already installed in new phones, relieving cybersecurity-related worries.
M

Promotion
E
PL

Huawei should implement a loyalty system known as a ‘point based rewards system’.
Providing buyers with discounts, gifts, and other incentives that are linked to their phone
M

software [e.g Huawei music, Huawei app store etc]. This will ultimately encourage and entice
SA

undecided buyers, boost consumer purchases, repeat business, leading to the development of
a loyal customer base; “customer loyalty program a customer-retention strategy that
motivates customers to continue buying from your brand instead of a competitor” (Black,
2023).

Price

Moreover, Huawei needs to differentiate themselves from competitors and provide

competitive prices that intend to grow its market share. Because of such, the company needs

11
 to adopt price penetration strategies to attract and entice customers away from competitors,
improving their position within the smartphone market.

Place

Huawei may also establish strong partnerships with reliable and trustworthy companies, such
as telecommunications companies and retailers, in order to implement all of these
recommendations in the most effective way (Mindi Chahal 2017). For example, partnerships
with Australian retailers may include officeworks and JBHIFI and Australian

AN
telecommunications companies including Telstra & Optus. Working together with these
reliable partners may increase accessibility to markets, boost brand recognition, and relieve

PL
cybersecurity-related worries.

G
Implementation Plan
N
TI
The following provides an overview of a twelve-month roadmap of the recommended
KE

strategies for Huawei to improve brand perception and market share.

AR

Marketing Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
M

Activities 2023 2023 2023 2023 2023 2023 2024 2024 2024 2024 2024 2024

Security
E

software
PL

subscription

Price
M

penetration
SA

Points based
rewards system

Increase retail
outlets

12
Controls

Effective controls must be established in order to monitor and measure Huawei's SMM
(Social Media Marketing) plan's development and guarantee its success. Huawei can adapt
efficiently to unanticipated situations or changes in the market by creating contingency plans.

Key Performance Indicators (KPIs)

Finding appropriate KPIs is crucial for evaluating the SMM plan's effectiveness. The number
of followers, engagement rate, website traffic from social media platforms, conversion rates,
and customer sentiment research are examples of metrics that Huawei may develop. The

AN
business may assess the success of the strategy and make data-driven choices by keeping an

PL
eye on these KPIs on a regular basis.

Social Media Monitoring Tools

G
N
Insights regarding audience behaviour, content performance and engagement levels may be
TI
gained by using social media monitoring tools like Hootsuite, Sprout Social, or Google
KE

Analytics. Metrics tracking, brand mention monitoring and opportunity identification are all
capabilities of these platforms. Huawei should make use of these resources to collect
AR

information, examine trends and evaluate how the SMM strategy is affecting consumer
engagement and brand recognition.
M

Regular Reporting and Analysis

E
PL

It is critical to set up a reporting system that offers frequent updates on important metrics and
development. Huawei should establish a reporting schedule, either weekly or monthly, to
M

monitor the effectiveness of the strategy. This will make it possible for the business to
SA

pinpoint its strengths and opportunities for development. The analysis of the data and patterns
will reveal which tactics work and which ones may need to be adjusted.

13
Contingency Plans

Huawei should have contingency plans in order to be adaptable and responsive to any market
shifts or issues that may arise. For instance, if the SMM approach isn't producing the
anticipated results, the business may consider altering its content strategy, focusing on
various audience groups or investigating alternative social media platforms. Huawei can
swiftly react to unanticipated occurrences and make the required modifications to keep the
strategy on track by having contingency plans in place.

Competitive Analysis

AN
It's crucial to keep up with rivals in the social media space by monitoring their activities. To
discover possible areas for development or difference, Huawei should periodically examine

PL
rival tactics, engagement rates, and content performance (Qalati et al 2020). Huawei will use
this information to better comprehend the market environment and modify its SMM strategy

G
as necessary. N
TI
Customer Feedback and Sentiment Analysis
KE

The efficacy of the SMM strategy must be evaluated by paying close attention to consumer
feedback and sentiment (Diab 2023). Huawei has to actively interact with its audience on
AR

social media, answer their questions, and use technologies for sentiment analysis to track
M

sentiment. Huawei can analyse customer feedback to pinpoint areas for improvement, resolve
any problems and increase customer contentment.
E
PL

Huawei can ensure the strategy is progressing as expected by setting key performance
indicators, using social media monitoring tools, using frequent reporting and analysis,
M

creating backup plans, researching rival actions, and keeping an eye on consumer feedback.
SA

Huawei will be able to use these controls to make data-driven choices, adjust to changes and
improve its SMM tactics to meet its marketing goals.

Conclusion

Huawei currently faces poor positioning and brand perception due to issues with security and
reputation impacted by the company being banned from providing 5G services in Australia.
This issue in turn has led to low market share for Huawei in the Australian market. The
recommended strategies to assist with these key issues include: focusing on the positioning

14
and reputation of the brand by implementing a loyalty system for purchasing Huawei
products; differentiating through penetration pricing and product strategies such as offering
security subscriptions; and developing partnerships with more retailers to expand brand
reach. Overall, Huawei may achieve the set objectives of increasing market share and
improving brand perception by applying the recommended strategies to expand the brand’s
presence in the Australian market.

AN
PL
G
N
TI
KE
AR
M
E
PL
M
SA

15
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Appendix
SA

Appendix A: Leading smartphone brands based on number of units sold in Australia in first
quarter 2020 (Hughes 2023)

19
 SA
M
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