POM REPORT

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GROUPWORK
REPORT
Principles of Marketing
1
2
GROUP MEMBERS
Le Minh Thuy – BABAIU17156
Le Tran Lam Tra – BABAIU17164
Bui Diu Cam Tien – BABAIU17027
Ton Nu Hoang Uyen – BABAIU17081
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4
HTC (High-Tech Computer Corporation), a Taiwanese consumer
electronics company, is a known brand for manufacturing mobiles
and tablets in the field of telecommunication. HTC started its
operations in 1997 with the goal of bringing the power of computing
into the hands of people around the world. The major turning point
took place in 1999 when HTC entered the field of
telecommunications. At present, HTC is one of the largest in terms of
smartphones manufacturing in the world. Since founded till around
2011, HTC had remained one the strongest brand of mobile phones,
especially in the market of Vietnam.
However, from around 2013, HTC reported to have suffered a loss
of $ 101.2 million for the very first time. From that point till now, HTC
has been stuck with the smartphone market for years, gradually
weakening. Although the company has launched many promising
products, with unique technologies, everything seems to be against
them and outcomes did not meet the company’s expectations. The
market value of the company has fallen nearly 20 times since 2011,
which to some extent, the value of the HTC up to this point may be
considered to be worthless.
In order to bring back HTC from its decline phase, the following
analysis and marketing plan have been conducted and illustrated.
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INTRODUCTION
HTC (High-Tech Computer Corporation), a Taiwanese
consumer electronics company, is a known brand for
manufacturing mobiles and tablets in the field of
telecommunication. HTC started its operations in 1997 with
the goal of bringing the power of computing into the hands
of people around the world. The major turning point took
place in 1999 when HTC entered the field of
telecommunications. At present, HTC is one of the largest in
terms of smartphones manufacturing in the world. Since
founded till around 2011, HTC had remained one the
strongest brand of mobile phones, especially in the market of
Vietnam.
However, from around 2013, HTC reported to have suffered
a loss of $ 101.2 million for the very first time. From that point
till now, HTC has been stuck with the smartphone market for
years, gradually weakening. Although the company has
launched many promising products, with unique
technologies, everything seems to be against them and
outcomes did not meet the company’s expectations. The
market value of the company has fallen nearly 20 times since
2011, which to some extent, the value of the HTC up to this
point may be considered to be worthless.
In order to bring back HTC from its decline phase, the
following analysis and marketing plan have been conducted
and illustrated.
h
t
c
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SWOT
Analysis
Strength of HTC
HTC has an advantage in mobile phone industry over most top
competitors that they have been manufacturing phones since 1997. They are
the first corporation in the world, introducing 4G and 4G LTE smartphone.
Moreover, HTC is well-known for the best overlay of Android OS which is
added with HTC interface. Additionally, HTC has a strong association with
industry leading players such as Apple, Microsoft, Nokia, Philips and Siemens technology giants who allow them to deliver innovative products, or leading
telecommunication service providers in US, Asia and Europe who enable HTC
to address large markets. Beside strong cooperation with large businesses,
HTC also has presented strongly in global in some key markets like America,
Europe and Asia-Pacific. One more thing is that HTC invests heavily for
research and development. They have their own technology and R&D
department to offer mobile phones. Therefore, products of HTC innovating
every year with new ideas and unique customizable features, never repeat
the previous phones.
weakness of HTC is lacking their own OS and software. Recently, they are
applying Google Android OS in their phones. As a result, HTC becomes
dependent on third party of software providers.
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SWOT
Analysis
Weakness of HTC
Although HTC used to be the
most popular mobile phone brand
in the past, today some people
don’t recognize this brand. Even
They have seemed to disappear in
Vietnam market. It’s because HTC is
losing their market share to the
giants of this industry like Apple,
Samsung and some new Chinese
brands such as Oppo, Vivo,
Huaweii…. In addition, HTC has just
focused
on
research
and
development and has not spent
much on advertising and marketing
of products, which has affected
significantly on the sale of their
mobile phones. This is a main reason
that make
them
lose
their
competitors. Likewise, HTC has
introduced various features in their
smart phones every year, but they
cannot get attention of customers.
The reason is the specification of
their products are not worth with the
price that consumers have paid.
Also, the design of their smart
phones
is
still
not
unique,
fashionable and not catching
current trends to attract people
purchasing. Because of high
competition with some of the
industry giants, HTC is subject to
pricing
pressure.
They
have
reduced selling price of their cell
phones, which leads to decline in
revenue and difficulty in financial
issues. The last weakness of HTC is
lacking their own OS and software.
Recently, they are applying Google
Android OS in their phones. As a
result, HTC becomes dependent on
third party of software providers.
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Opportunity
of HTC
Not just in Vietnam, most people in whole world these days has preferred
touch screen cell phones. This market has grown rapidly every year and is
expected to grow from six to eight percent in the next five year. HTC is engaged
with producing these smart phones, so they should enhance the production of
touch screen mobile phones with high quality applications as well as impressed
designs. Furthermore, HTC has collaborated with Google and launched their
products with Google Android OS installed in them, so this is an opportunity for
them to increase the market. It also can be said that due to name of Google,
HTC can base on it to expand their popularity. Additionally, Marketing is
considered as an important factor that determines the development of any
businesses. For this reason, to positioning their brand and rise the sales, the
revenue, HTC should invest more in marketing and advertising for their smart
phones. Besides that, they cannot ignore about offering additional services for
customers who can contribute significantly to their revenue in the future.
Nowadays, the demand for 4G-LTE in mobile phones is increasing strongly and is
estimated to continue growing in the next years. And HTC has already
introduced 4G-LTE smartphones to the market. This can be a good chance for
them to benefit from that demand.
Threaten
of HTC
HTC is the leader in Android using. However, Samsung is the most successful company
in using this operating system. With rapidly changing technology, HTC needs to constantly
innovate to be able to stand the competitive environment which requires investing heavily in
R&D. HTC also has many competitors like Apple, Samsung,etc. The competition become more
and more intense. Beside the technology innovation affect, it can put pricing pressure on
companies to provide good quality product with competitive price. There are many commercial
disputes in patent between HTC and Apple, Nokia. Many human and financial resources is
mobilized for lawsuits. Last but not least, mobile phone company with cheaper technology and
inferior quality of software can be dangerous for the sale of smart phones of HTC. Pricing
pressures influence ASPs which in turn affects the operating margins for the companies.
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STDP Analysis
SEGMENTATION
The market for any product is normally made up of several
segments. And through these segmentations, the marketers
can look at the differences among the customer groups and
decide on appropriate strategies or offers for each group.
Before 2017, HTC has been segmented based on mid- range
market segment. While Apple and Samsung have dominated
high-end segment, there is an intense competition with
Chinese companies in mid- range segment market. Moreover,
the lacking “unique selling point” and low margin profit require
a change in orientate the market segmentation.
To avoid the middle trap and reposition HTC brand, since
2017, the company decided to focus on close and high-end
segment market with the opening of U- Ultra line. Therefore,
HTC only launches 5-6 smartphones per year instead of running
by number to increase the quality and experiences for exist
and potential consumer.
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STDP Analysis
targeting
Targeting the market involves assessing the attractiveness of
each market segment and selecting one or more markets to
penetrate. Businesses need to select their target market sensibly in
order to devise appropriate marketing strategies for the chosen
market. It is depended on the human and financial resources to
select mass or individual marketing. This brand has targeted
selective segment of the market of primarily young customers and
first time/ savvy smartphone users. They also provide more
services in the same package and at attractive prices. These
multimedia features attract the youth as they are always concerned
about having the latest trends.
After that, although HTC
targeted in higher-end and
status quo customers to gain
more benefit and built again the
brand recognition, its products
are well-designed for young
generation which equipped dual
speaker, selfie dedicated
camera, etc.
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DIFFERENTIATION
& POSITIONING
HTC is working on purely differentiation strategy targeting Niche marketing.
HTC brought the mobile device industry to a new level by combining
environment, video and personal assistant functions and embedded it into a
device with high resolution, brilliant colors and multiple connectivity features.
These features attract only specific class of people who know actually what
they are taking. They hit those people who really know what he is taking. HTC
faced many competitors in the market but became successful above all of
them due to its highly differentiated strategies.
HTC differentiation strategies were based on product designing,
developing instinctive user interfaces and software implications and
developing its own operating system. HTC fulfilled all requirements of the
customers with increasing innovations in technology. The pursuit of innovation
was reflected in the regularly updated product lineup. HTC gave whatever
customers want. HTC was following the policy “Be the first one, get the
maximum out of it”. As differentiation is related to uniqueness perceived by the
customer. Customers would pay a premium price for a meaningful, perceived
difference in the product/service.
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HTC U12+
- “Live on the Edge”
special
features
TAP, HOLD, SQUEEZE
Double tap can
get an adjustable
mini screen that
puts everything in
thumb’s reach
A simple hold can
keep the screen
the way you want.
No more annoying
and unnecessary
screen rotations or
dimming.
Simple squeeze to
take
photos,
launch
voice
assistants and bring
up Edge Launcher.
 Do things faster, better even more one-handed convenience
AR STICKERS
Stick on fun
Spice up photos
and
videos
by
adding
funny
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effects and playful
AR stickers in real-
Dual cameras. Front and back
AUTO FOCUS
Enjoy unprecedented levels of details and clarity in just about
any condition and even when your subject is on the move
ZOOM
2x optical zoomvi and 10x digital zoom allow you to focus on
the action and details like a pro
BOKEH
Offers our most natural, artistic and captivating soft
background effect yet. It’s like bringing a professional studio
HDR BOOSTS 2
Clearer photos when the lights are brights or low
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PRODUCT
Substitute products of Smartphone are those technology
productions, such as laptops, netbooks, PDAs, and tablet PCs. However,
the power of the alternatives is low because those technology
productions just have individual function in terms of substitute
productions. Furthermore, Smartphone do wide variety functions, such
as work everywhere via Wi-Fi network or GSM network, and Global
Position system. Most importantly, people can access the company
data anywhere and anytime via Smartphone without miss a beat
wherever they are. Nowadays, all features and conveniences which
Smartphone have could against the functions of the laptops, PDAs, and
even GPS (Hill F., 2008).
Product innovation is always the important part of industry life.
Customers always want to have the new and efficient products and
industry always need to develop and innovate the products that meet
the customers’ needs. In the mobile phone industry, People used to use
the mobile phone as oral communication. After that people start to use
the mobile phone to memory some of the data such as pictures, songs,
phone book and address book. Mobile phone was becoming a small
personal memory book. Now mobile phone is also called as
Smartphone that combine with operating system and become very
small PC in your pocket. Smartphone can be use as GPS, access the
internet, download, games, and translate language. Therefore, the
Smartphone industry should be always considered innovation as
primary objective. (HTC Corporation, 2009).
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).
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
PRICE
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. This high price proprietary system is one of the weaknesses of
HTC.
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place
In this category, it is important that the HTC products are located where it is easy
for the targeted customers and also potential customers to access.
As stated in latest speeches of HTC’s vision in the future, HTC has eliminated
medium-quality, low-quality products and mostly focused on the premium ones
instead, aiming at the young working people who are sophisticated and elegant,
which are the similar attributes that the HTC phones have. To easily approach this
target customers, HTC showrooms and stores should be located in the centers of the
cities, for example like district 1 or district 3 in HCMC, or maybe near by the universities,
colleges, office buildings, cinemas, or in shopping centers. These are the places
where a majority of people who are the right kind of customers that HTC has targeted
to usually go by, like students, office workers and other young people.
As can be seen on the HTC website, there is only 1 showroom, located at number
1, Cong Truong Quoc Te street, District 1, HCMC, and 3-4 stores for the entire country,
which mostly take care of warranty and other support. Comparing to the number of
Oppo’s stores – one of the most popular phone brands nowadays in Vietnam with
approximately 55 stores, we can see that HTC has not given much attention and
effort in expanding their stores and locations to reach to customers.
Moreover, cooperating with other popular distribution channels is also an effective
way for HTC to expand their location and frequency of appearance to their
customers. People usually go to specific electronic stores, which are stores consist of
many brands of electronic devices, to buy a product. For example, in Vietnam, most
of the people would definitely go to Thegioididong, Dienmayxanh or Nguyenkim to
find the information or choose if they want to buy a new mobile phone. Therefore,
working with these retailers helps
HTC to improve its distribution
process. For this strategy, HTC has
already accomplished but still
need to be more adaptive with
many new electronic stores in the
future.
In many cases, ‘places’ are not
limited to only ‘real’ locations
where customers can directly or
make the purchase in person.
Recently, a lot of people have
switched to online shopping, making online transactions. As a result, it is important
that HTC copes with this trend, providing more online services and convenience for
customer to buy its products not only through its home, traditional websites but also
from e-commerce websites such as Tiki, Lazada and Shopee. A lot of brands, from
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cosmetics, house furniture to electronic devices, have chosen this form of ‘place’ due
to its effectiveness, cost-saving and time-saving.
Promotion includes elements like:
HTC can emphasize and truly show the
advertising, public relations, social media
special features of its products, or even
marketing, email marketing, search engine
with emotional videos to arouse people’s
marketing, video marketing and more. This
feelings, making people have good
category is one of the main reasons why
impressions and opinions related to the
HTC has fallen behind compared to other
brand. Not only creating a good marketing
brands in these current years, particularly
video, HTC must also make sure to work
in Vietnam.
closely with social media sites such as
For the case of HTC, although HTC has
Facebook or Youtube, because these are
stated clearly that its products are made
where a lot of ads are run and it is easy to
for young people who are sophisticated,
get these commercials and messages to
elegant, etc, but they have not expressed
customers.
those attributes much through promotion,
The third and final to promote HTC’s
advertising to make the impression on
products is to have the influencer - the
customers that HTC phones are really that
person who represents HTC and share
elegant, intelligent with AI, ‘designed for
similar characteristics with the products,
you, work for you’ and exclusive functions
have huge impacts on young people and
which no other brands has.
have the ability to persuade and make
There are three main ways that HTC can
them follow. Taking Apple as an example,
apply to spread their names. The first is to
one of the reasons why Iphone has been
get more involved in sponsoring popular,
such a popular product for its simplicity,
famous events, and TV shows, reality
smart, innovativeness is because the image
shows. Taking OPPO as an example, OPPO
of Iphone is attached to the image of Steve
has significantly been one of the main
Job – a simple, modern and intelligent
sponsors for The Voice Kid, The Face, The
man. Applying this strategy to HTC, sticking
Remix, etc. It should be mentioned that a
the product to an intelligent, elegant
lot of young people, as we discuss earlier is
person, take him/her to be the
the target customers of HTC, watch and
representative of the brand is a good way
highly participate in these competitions
to promote HTC mobile phones. Moreover,
and shows. Therefore, if HTC can learn to
it is also possible that HTC can take
capture what the young people are into
advantage of the spread of online creators,
and usually spend time on, HTC can raise
youtubers in specific to promote the
HTC brand awareness in all key markets
products. Brands nowadays send samples,
and make its brand familiar with
sponsor youtubers’ videos so that they can
customers.
share their opinions to viewers, spread the
The second and also the most effective
names of the brand and the products to
way is to make marketing video, in which
many people.
promotion
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References
Adam, (2010, June 4). HTC corporation SWOT analysis. Retrieved from
https://www.freeswotanalysis.com/telecommunication-companies-swot-analysis/57-htccorporation-swot-analysis.html
Ansuya Harjani, (2012, 25 May). Why HTC Is Losing ‘Relevance’ in the Smartphone War.
Retrieved from https://www.cnbc.com/amp/id/47562020
Faizul, (2017, August 29). SWOT analysis of HTC corporation. Retrieved from
http://www.gotabout.info/swot-analysis-of-htc-corporation/
Get up, HTC. (2015, August 12). Retrieved from http://ttvn.vn/games/dung-len-nao-htc72015108204532732.htm
Hai Dang, (2017, June 6), HTC “né” Samsung, Apple tại Việt Nam và hướng đi cho các hãng
mới. Retrieved from http://www.brandsvietnam.com/12549-HTC-ne-Samsung-Apple-taiViet-Nam-va-huong-di-cho-cac-hang-moi
Haseeb, (2015, November 18). SWOT analysis of HTC. Retrieved from
http://marketingdawn.com/swot-analysis-of-htc/
Hitesh Bhasin, (2018, May 6). Marketing Strategy of HTC. Retrieved from
https://www.marketing91.com/marketing-strategy-of-htc/#Segmentation-targetingpositioningin-the-Marketing-strategy-of-HTC
HTC Corporation Analysis – Competitive Analysis and Swot from
Answers Ltd - https://www.ukessays.com/essays/marketing/htc-corporation-is-asmartphone-manufacturer-marketing-essay.php
Ngo Minh, (2018, July 4). HTC: Collapse of one big smartphone brand. Retrieved from
https://news.zing.vn/htc-su-sup-do-cua-mot-ong-lon-smartphone-post857284.html
Phuong Thao, (2018, Aug 3). Chiến lược STP là gì? Vai trò của STP trong Marketing doanh
nghiệp. Retrieved from https://marketingai.admicro.vn/chien-luoc-stp-la-gi-vai-tro-cua-stptrong-marketing-doanh-nghiep/
Supply Chain Research Articles
http://javedaslam9.blogspot.com/2015/02/cost-leadership-differentiation-of-htc.html
Thanh Duy, (2017, January 29). CEO of HTC Vietnam: ‘Crisis help us to look back at
ourselves’. Retrieved from https://news.zing.vn/tgd-htc-viet-nam-khung-hoang-giup-chungtoi-nhin-lai-minh-post714817.html
Why online shopping has become a trend. (2015, April 10). Retrieved from
https://www.sapo.vn/blog/vi-sao-kinh-doanh-online-dang-la-xu-phat-trien/
Website of HTC in US
https://www.htc.com/us/
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