Hqc Mobile Phones Case Study

Table of contents

1. Table of contents-------------------------------------------------------------P1.

2. Company Background-------------------------------------------------------P2.

--------About HQC background

--------Marketing objective

--------Marketing Mix

3. How to choose a strategy---------------------------------------------------P3-5.

--------International expansion

--------China market: environmental analysis

--------Product

--------Market

--------Costs

--------Communication strategy

4. Analysis and suggest strategy----------------------------------------------P6-8.

--------Analysis the strategic alternatives

--------Recommendation

5. Harvard Referencing--------------------------------------------------------P9.

Our company background

HQC (call High Quality International Electronic Limited Company) is a listed company in 2006. The main products are mobile phones, such as Smartphone.

Founded by Cherry Wong, Henry Lam, Joe Chan, Director of the board & Chairman of HQC Foundation and Andy Chou, President and CEO. It established special partnership with the main mobile brands, including the leading five operators in Europe etc. Then, we had three hundred employees to help our company to create equipments.

Marketing objectives are testing and observation Hong Kong reaction by our product and matching our consumer's needs.

According our company annual business report, HQC's sale revenue is US $12 billion to increase 40 percent in 2009-2010.

Marketing Mix

Product

Our company was launched HQC 4G phone in Hong Kong to meet our consumer need and satisfy because people need the mobile phone to communicate with others.

Price

We face our business may increase or decrease the price of 4G phone if other stores have the same product. The price of HQC 4G phone about 5000 dollars.

Place

We can use horizontal marketing system to distribute our 4G phone in various regions of Hong Kong mobile phone shops. We must sell fifty above 4G phone per day.

Promotion (communication strategy)

In Hong Kong, we through the internet to promote our product because many people like surfing the internet, such as our target customers are 18-59 years old. Then, we put the advertising in Yahoo of eMarketing because it has many people like to yahoo website to find information. We used Dual Adaptation in Hong Kong, the total of cost about 5 billion and the profit about 3 billion.

International expansion

Our company wants to expand in China market so we should develop the HQC 4G phone to launch in China market to increase market share. Then, we through the product or cost to choose communication strategy to help our firm's development.

China market-Environmental analysis

Economy

China has over 1.3 billion people so the People's Republic of China is the world's fourth largest country and the world's fastest growing economy. Then, China is a dynamic market, so some of international buyers can find lots of quality products at the competitive prices.

According to the National Bureau of Statistics of China released data of the China's economy in 2010, GDP was 397983 trillion RMB in 2010, at the constant price an increase 10.3 percent so the growth rate 1.1 percentage points faster than the previous year (National Bureau of Statistics of China, 2011).We can see China's economic was booming.

Competitive analysis

In China market, our main competitors are HTC, Apple Iphone 4, Nokia, Motorola or Samsung. According Gartner Dataquest's analysis, mobile phones competitive among mobile phones are increasing because there are different types of new products to launch, such as Iphone 4, HTC Wildfire (G8), etc. It can make consumers optional to continue increasing (HK-APPLE, 2010).

In 2010, HTC's market share increased 0.5 percent and Nokia decreased 1.5 percent. Other brands also use the low price, usually between about 1,500-2,700 RMB. Then, the price of Apple Iphone 4 about 5,600 RMB (HK-APPLE, 2010). We can decrease the price of our product to fit in China market because we should consider competitors price and customers incomes, such as decrease the price of our product to 4,300 RMB.

Market size

In 2009-2010, our overall products reached US $ 12 billion to increase 40 percent. Our company forecasts 2011-2015 Compound Annual Growth Rate for China's Smartphone market can reach 20 percent.

In 2010, the Current Mobile Market Size was 590 billion with RMB. The total of China Mobile Market Share was 78 percent, such as Nokia or HTC etc. The total of China Mobile Market Revenue was 555.4 billion with RMB. (YAHOO'S BLOG of Hong Kong, 2008). So that our company can take advantage of growth of China Mobile to launch HQC 4G phone increase sales, make customers use our 4G phone to broaden our company market size in China market.

Target market

When our company launch HQC 4G phone, we want to focus on the part of city people in Shenzhen. The age of 18 to 59 years old with male and female, the main of people have working experience because they have the ability to almost buy the phone advantage.

According National Bureau of Statistics of China, the total urban population of Shenzhen is 1400 million people. Disposable incomes of urban residents are 17175 RMB per month so the real incomes increase of 9.8 percent. In 2011 of January, The total level of urban consumer price increase