INTRODUCTION of HTC Marketing Strategy For Concentrate
This report is framed with an aim to simplify the term marketing strategy. “A marketing strategy assignment is a procedure which allows an organization to concentrate on its limited resources as well as on the greater opportunities to get a rise in sales and achieve a sustainable competitive advantage”. Various tools are being used to formulate any marketing strategy by looking towards the market condition, the market segregation, market which is needed to be targeted and SWOT analysis etc. are being used for marketing the product (Shankar and et al., 2012).
This report emphasizes on the HTC organization and in deep context about the marketing department of this company. What activities are being deployed by its marketing department? This report includes brief introduction of HTC and its marketing strategies to gain the market share and a depth analysis which we suggest should be considered necessary for analyzing the organization. HTC was founded in 1997, by Cher Wang, H.T. Cho, and Peter Chou. It was initially a manufacturer of notebooks. HTC also designed some world’s first touch and wireless hand-held devices in 1998 (Fifield, 2012).
The objective of this report is to find out that what problems HTC is facing and the reasons behind those issues. So basically they include low attachment of middle class society because they do not catch attention due to the price factor. HTC also faces the problems of changing customer taste because competitor are also coming up with the best phones in the market with low price as compared to them. Low customization and prices are too high. This leads to a lower market share of HTC (O’grady, 2009).
TOOLS OF MARKETING STRATEGY
SWOT Analysis of HTC is as follows:
- Strength: Abeyant resources through which they strengthen their market position are:
- Branding: When the concept of an idea or an image is marked by the organization so that it can easily be sighted by more and more peoples and also identifies their variable products and services which they are offering. In case of HTC it is HTC quietly brilliant. This logo allows peoples to understand easily that this is an HTC product.
- Innovation: HTC keeps on enhancing their research and development capabilities and bringing in new technology to be used and creating new wings for its process (Ireland and et.al., 2011).
- Differentiation: HTC is a unique which not only is engaged in developing mobile but also in tablet pc and laptops.
- Retail Strategy: It has strong relationship with their vendor which enables it to address changing customer’s needs effectively.
- Ease of Use: HTC products are so familiar with every people that it can be used even by a new purchaser without any guidance and help of other. No user ever complaint regarding operating their products and this makes their strength to dominant the market (Ferrell and Hartline, 2010).
- Superior Quality: HTC phones are expensive but with this cost they are providing us the new features and the extreme high quality features in them which satisfy their customer against their resources that they have spent.
- Diversified Areas: HTC has diversified business areas through which it gathers revenue resources which reduces business risk and enhances operating performance (Handlechner, 2008).
- Now talking about weakness’s of HTC following drawbacks come in mind and are shared below:
- High Price: HTC products are very high in range due to that each person cannot afford their phone. It normally starts from 15K which seems so high priced products for middle level customers. This high price proprietary system is one of the weaknesses of HTC.
- Less Penetration: HTC is just limited to their high level segment. Means the phones they are producing targeting only to the high class people or status quo people. They are not trying to capture the segment of upper middle class or middle class (Cheverton, 2005).
- Niche Market: Niche market is defines as the narrow market where company focusing on specific product or specific market. As explained above that they are focusing only to the higher level segment.
- Cannibalization: HTC is too much related on Microsoft’s platform which was not mainstream in the smart phone system market. Thus peoples demanding other features on their phone which was not fulfilled (Sadghi, 2012).
PESTEL analyses are done to identify the present position of the organization and here we have summarized the report for HTC. In this context we will present views regarding HTC. The PESTEL analysis of HTC is as under:
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- Political Influences: By the year 2009 it is reported that the 62% sales of HTC were generated from outside of Taiwan. Because of bad international relations, wars and terrorism have affected the sales of HTC largely. These are some factors that HTC should now take into consideration and must be careful about them and their changing trends. On these factors HTC is unable to control, they have to cope with them or go accordingly All this factor let HTC to manufacturer some of their parts from outside from Taiwan like Ireland, Czech, China etc (Brace, 2006).
- Economic Influence: Next factor under the PESTEL analysis comes economic influences. The global economic depression might have immense impact on HTC Inc. At that time inflation rate becomes high and on the other hand consumer’s incomes was as usual as it was before no changes are found in the incomes of the consumers. Moreover the rate of unemployment has increased. As a result of this the leading consumers of HTC are spending less on their products. U.S. dollar has lost their value of money, still HTC Inc. is not as endangered economically. This all happens because the HTC Inc has already purchased the foreign currency, so that in the crucial time it can minimize its economic effect of inflation (Wedel and Kamakura, 2000).
- Social Influence: In PESTEL analysis, social influences are related to the society. HTC is operating globally which includes the interaction of people worldwide, for which technology plays the main role. HTC seen globally as the King of technology, this not said by the company. People agree upon that not for their products but the service, their design and models. Similarly, another big social influence through which companies wants to get in contact with public is the research and renovation, which is so necessary (Hunt and Madhavaram, 2006).To get familiar with the public, HTC keep on working and brining the latest technology for peoples which keeps them well ahead than any other competition of this direction. HTC shows that they are following modern individual life styles and providing them advanced function with new designs. This portrays the positive image of HTC in the society (Yannopoulos, 2011).
- Technological Influences:As companies fail to cope up with the technological advancements, it results in eroding company’s image in the market. By the time, people demand for newer technology and features. In the same way technology market for computers and mobile phones has become huge, and it also adds more competition in the market. HTC is considering this factor that’s why they are doing innovation in their product on a continuous basis. Investing largely in Research and Product Development, HTC is on top of the market, in the respect of innovative products (Yannopoulos, 2011).
- Environmental Influence:To study the environmental influence on company, these are some words that should be learned are, cost implication, public opinion and site & location. HTC follows there strategy which in Taiwan were different and if we talk about the India their strategy are different. Ex: in Taiwan adds of HTC products are straight forward i.e. what the basic objective of these add this are communicated straight forward but in the case of India, people are bit emotional. So to attach with them through adds HTC use the stuff or message which links with the emotions. So it is being cleared that company must consider the environmental factor as well (Hunt and Arnett, 2004).
- Legal Regulations:Legal regulations are comprised of the papers, licenses, contracts, documents, norms of the country. In same way, HTC also did the same thing in respect of like what amount of margin should retain in respective country .How much tax has to be paid yearly, what are their restrictions and so on (Dekimpe and Hanssens, 2004).
ADVANTAGES OF HTC PHONES
HTC phones are the only mobile phones in the world come to public with a new innovation and a deep research. Some advantages are shared below:
- HTC is the brand for you. When we think about Smartphone’s which are using cutting edge technology, no other product can chase HTC. Its devices are mostly available on an ample number of cellular service providers in Taiwan, and are becoming widely accessible through the globe. Same models play a different role with different network, but present models are available with many similar features (Singh, 2007).
- HTC Smartphone’s are presently capturing market a good rate. The technology which uses 4g is comparatively new then also HTC is the proud supplier to sell mobile phones equipped and enabled to be used on a 4g network. HTC products have a great speed which is quite ahead of 3G phones (Badur and et.al., 2011).
- Fast processors are proving their worth as cell phone which are not able to work on 4G are also having great performance. They are also enabled with various features which encourage Smartphone users. Some models are also built with cameras having 8 megapixels clarity as compared to normal cameras.
- Various specifications like advanced surfing browsers, big and interacting touch screens and media player have made it easy to play music or watch movie any moment. Also comes additional storage facility which allows to store important files, photographs, and family videos (Ferguson and Hlavink, 2007).
- Quite similar to present era Smartphone’s, HTC products are also having a compatibility to allow access of varying popular applications. These applications which are available either on mobile which are Windows capable or Android supporting.
- HTC Smartphone’s are having the advanced technology and considered to be the leading one in present scenario. As changes will happene in Smartphone industry the company will keep on focusing and shaping it to the desired requirements. HTC phones are gaining popularity among peoples who are tech freaky and love to use newer devices. If you are looking for a mobile phone that is packed with all the latest features, there is a good chance that there is an HTC phone that will suit your needs perfectly (Cooke, 2000).
Above discussion tells us about the present situation of the HTC Inc. Now in this phase discussion will be held upon that how company should target their market and to whom they should target for their products .Their target people should be:
- HTC from the start targeting only to those people whose valet is heavy enough for paying their advanced products. But now they should go for Middle income folks who are love their products but and ready to pay a bit more for them.
- Next, HTC should target those people who love to get indulged in the latest technology. These are the people who like to shoot quality pictures and want to have fun with technology (Marketing strategy. 2009).
Positioning doesn’t means to position the product in the market. It is position the product in the customers mind. For that HTC is working hard upon that and with the superior quality of Smartphone they are placing their products in the mind of the customers. Now to recommend that what other positioning strategy they should use is that they should use simple taglines, jingle or message that when people heard that, they quickly recognize their products and company. Though the logo HTC is sufficient enough, but still the taglines and jingles are necessary. Another way to position is to create a character or using celebrity to endorse their product. With that character or celebrity people remind the product so these are the recommended positioning tools for the HTC Company to place their product in maximum people’s mind (Webinar, 2013).
Before commencement of any business, company first decides their objectives or goals in respect of each department and marketing is one of them. No any department can work without the objective. One more thing the objective should be so clear and concise that it would be clear with all the employees associated with that objective. HTC also have decided their marketing objective of their phones, so that they can analyze that where they are and where they want to be (Odden, 2011). Their objectives are:
- Hype: HTC does not promote their product on large level. This promotion is only limited to specific country. So they should go for extravagant promotion for their product to all the country where they are getting profit out of their product.
- Distribution: HTC should use the efficient channel of distribution so that it can reach to all retail stores to whom they have given licensed. Their stores should also be in reach with the public (Honigman, 2013).
- Pricing: HTC quote their price so high and result of this only few peoples are can able to buy HTC products. So it is recommended to HTC that for other level of people they must quote price as per their purchasing power.
They should target other segment and should create a generation which is defined by HTC lifestyle.
So above report is all about the HTC Company and their present situation of their firm. Report is asked to recommend some strategy regarding marketing the product of HTC phones. Above tools are being discussed which are being recommended to HTC incorporation. It is being cleared with the matter discussed that HTC are doing extreme well with their present Smartphone’s and upcoming phones but the thing is that they are serving to only few segments of the people and are not targeting the people of other segment, but still the people of lower segment are using their phones and are also ready to purchase the product by spending bit more price for their product.
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