浅析HTC手机市场营销策略

On the Marketing Strategies of HTC Smart Phones [Abstract] With the continuous growth of the smartphone market, competition between mobile phone manuf
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On the Marketing Strategies of HTC Smart Phones

[Abstract]

With the continuous growth of the smartphone market, competition between mobile phone manufacturers has become increasingly intensive. To avoid being surpassed, firms have put their full effort into searching for effective keys to enhance their core competitiveness. HTC (HTC Corporation) was once a leading company specialized in intelligent communication terminals but is no longer the leader in this field. In this study, the main object is the marketing strategies of HTC Corporation. Firstly, it introduces the background information and describes the basis on which HTC became stronger. Secondly, this study addresses the importance of analyzing the existing advantages, weaknesses, opportunities, and challenges of HTC smartphone marketing channels using the SWOT analysis method. Besides, this study analyzes the status and existing problems of HTC's terminal marketing structure based on the analysis of HTC's smartphone marketing case, analyzes the HTC terminal marketing strategy (including Product Strategy, Pricing Strategy, Marketing Strategy, Channel Strategy, and Consumer Marketing Relationship Strategy), and proposes terminal rebranding strategy, customer-oriented business philosophy, operating system and reform of the existing product lines, and its optimization suggestions. Also, this study breaks through the limitations of previous research materials, which could not keep up with the trend of science and technology. In addition, this article proposes a brand new way in which HTC can integrate the cost advantage in the OEM (original equipment manufacturers) field and the technological advance in the VR field.

[Key words]

HTC, Smart Phone, Strategies, Marketing

HTC智能手机市场营销策略浅析

[摘要]

随着智能手机市场的不断发展，手机制造商之间的竞争越来越激烈。为了避免被超越，各个企业已经全力以赴寻找能提升核心竞争力的有效方法。HTC（宏达电）曾经是智能通信终端领域的龙头企业，但现在已经不再是了。本文主要研究对象是HTC公司的营销策略。首先介绍了背景信息，并阐述了HTC得以发展壮大的基础。其次，本文运用SWOT分析方法分析了HTC智能手机营销渠道的现有优势、弱点、机遇和挑战。此外，本文还着手于HTC的4P营销策略，分析了HTC终端营销体系的现状和存在的问题，在分析HTC智能手机营销案例的基础上，分析了HTC终端营销策略（包括产品策略，定价策略，营销策略，渠道策略和消费者营销关系策略）并提出品牌重塑战略，以客户为导向的经营理念，操作体系和现有产品线改革及其优化建议。此外，本文突破了先前的研究材料老旧无法紧跟科技潮流的局限性，提出了将HTC当前在虚拟现实领域与OEM（原始设备制造商）领域的技术优势整合的新方式。

[关键词]

HTC 智能手机 策略 营销

Contents

Introduction

An OEM (Original Equipment Manufacturer) is a company that makes a part or subsystem that is used in another company's end product. For example, if Foxconn makes power cords that are used on IBM computers, Foxconn is an OEM. As one of the largest OEMs in the telecommunication terminal field, HTC had succeeded in the great competition about grabbing market share. It’s no doubt that HTC once got the dominant position, but HTC has entered a period of crisis with the severe challenge of continuously losing its market share. Hongda International Electronics Co., Ltd. was established on May 15, 1997, also known as HTC, is a Taiwan-based mobile phone and tablet computer manufacturer. Also, it’s the world's largest manufacturer of smartphones for Windows Mobile and Android. It was founded by Wang Xuehong, Zhou Yongming, and Zhuo Huotu. Now, Wang Xuehong is the CEO (Chief Executive Officer) of HTC.

HTC's slogan is "quietly brilliant" and "HTC Innovation". In 2011, HTC met its high point in sales and became one of the most well-known global mobile phone manufacturers. HTC series mobile phones are equipped with the Android system and Windows Phone (latterly replaced by Windows Mobile Edition) system. The world's first smartphone equipped with the Android Operating System - HTC G1 was designed by HTC and launched in September 2008. HTC G1 was not the only model of HTC smartphones which enjoyed worldwide popularity: HTC G2, HTC G7, HTC G12, HTC One X, and HTC M8 were also popular. However, HTC has been losing its market share in the smartphone field.

Recently, HTC announced its 2016 fiscal year sales; the data shows that the total revenue in 2016 was 78.16 billion NTD (about 16.9 billion RMB) and there was a 121.68 billion NTD revenue fall, just equal to 35.77 percent of that in the 2015 fiscal year. Since the ''New HTC One (M7)" launched in 2013, media placed high evaluation on HTC's capability in industrial design. Several news came along and dedicated the troubles HTC would meet in the next few years: the dimission of its Chief Designer, the changes of its top management team, the increasingly worsening financial condition, etc. Just 11 months after HTC's chief designer - Scott Croyle, was revealed to be leaving the company, one of his former allies who stepped in to fill the vacancy has also left. HTC has confirmed that Jonah Becker has left the company, having previously served as its head of product design. Becker and Croyle joined HTC six years ago when their design studio One & Co was acquired by the Taiwanese company. In April 2014, just after the departure of Crowley, Becker was promoted to chief designer. This showed that was truly a period of difficulties for HTC smartphones.

Fortunately, HTC found its new way to make a living, that is to become a new VR (Virtual Reality) equipment manufacturer and developer and achieved great success. Virtual reality or virtual realities (VR), also known as immersive multimedia or computer-simulated reality, is a computer technology that replicates a real or imagined environment and simulates a user's physical presence in it through a way that allows the user to interact with it. In March 2015 MWC2015, HTC released virtual reality helmet products named "HTC Vive" with joint development of Valve (an American video game developer and digital distribution company). HTC has announced that "HTC can confirm that the company has established a wholly-owned subsidiary, called 'HTC Vive technology company'". It is said that the newly established HTC Vive technology company will act "as a virtual reality business operating platform. Meanwhile, HTC will also cooperate with global VR developers to build the VR ecosystem.

In the HTC management planning, HTC's VR business will not only rely on selling VR hardware to make money; the ecosystem is more important. In April 2016, HTC set up the Asia Pacific Virtual Reality Industry Alliance, which has 13 members, including content producers, chip manufacturers, content distributors, and sales channels. In specific cooperation, HTC has divided the entire VR industry chain into multiple parts as follows and seeks partners: Such as NVIDIA offers graphics cards, Intel offers processors, Iqiyi and Youku to do the development and distribution of film and television content, Tmall, Jingdong, and Gome to be responsible for retail.

It is encouraging that HTC got success in the VR field, but HTC smartphones should be rescued and make a contribution to HTC. That is a healthier way of development. So, this study is going to research the substantial reason that HTC came to this.

1. Analysis on HTC's Marketing Environment

1.1 Political Environment

The development of a business by the country's political environment is enormous, and now China's political stability, peace, and prosperity, so that the stability of the social environment for the HTC business development and growth is very favorable, so this is a very rare opportunity, HTC companies to seize this opportunity, united, and strive to change the marketing strategy, access to market recognition.

1.2 Economic environment

The purchasing power of consumers and the demand for the product is an important consideration in the network marketing strategy and implementation of HTC. In the process of searching for information, China's GDP grew at a rate of 7.7% in 2013, which is excellent on a global scale. China's residents' income is also maintained steady growth, so consumers are no doubt about the purchasing power, with high purchasing power at the same time, Chinese consumers for smartphones are doubled year by year.

Although HTC in China's network market competition power compared to other smartphones such as Xiaomi is relatively weak, but in China's economic environment, HTC still has prospects for development.

1.3 Technological Environment

The existing level of technology directly determines the smartphone hardware, software level. SoC (System on Chip), screen, operating system, and other progress in order to promote the performance of the entire mobile phone to enhance, in order to allow more consumers willing to buy their own products and even dig out more potential customers to spend. HTC in this respect is at an absolute disadvantage. And because Apple has a large number of fruit powder support and support in the brand can not shake the status of Apple in the smartphone industry king.

1.4 Social and Cultural Environment

Social and cultural factors refer to a certain period of time the general situation of social development, including the trend of population changes, social class, social morality, cultural traditions, values, and so on. HTC for the country's social and cultural characteristics and produce a lot of series suitable for the seller's products, which for these products in the global market sales are very favorable, but also improve the international competitiveness of HTC, making it the world's top mobile phone manufacturers one. And because of the differences in social and cultural factors around the world, HTC needs a variety of series and various types of products and functions of the timely research and development and improvement, which led to the cost of research and development enterprises to improve production R&D difficulty, increase.

2. Analysis on HTC's Marketing Strategy

At the very beginning, the market positioning is in the high-end, is a fashion, personality mobile phone. HTC is not selling mobile phones, but in selling life. HTC is a very special market segment is the female market. HTC to keep the classic design of the HTC at the same time, into the more feminine aesthetic design through the fuselage color, exclusive accessories, the application reflects its unique fashion charm. Equipped with the mainstream Android system, out of the female mobile phone has always been heavy appearance, light function of the ills, let it both practical and beautiful.

At present, HTC uses 4Ps (Product, Price, Place, Promotion) marketing strategy, the main analysis is as follows:

2.1 Pricing Strategy

The price has become a weapon of business warfare, you can defeat the enemy, you can also hurt yourself. Price comes from value, price is the exchange of value. The best price is the customer can accept, but also very satisfied with the highest price. The maximum profit is not the higher the price the better, nor the lower the better. The higher the price, the lower the market share; the lower the price the less profit margins, and the worse the perception of the customer will be.

HTC flagship smartphones in the high-end market were equipped with the application of some high-end hardware configuration, so that the performance of mobile phones to reach the forefront of similar products and the price of mobile phones is relatively high — the current price between 2000-4500. In the high-end market, will reflect the differences in mobile phones, so that consumers at the same price, more inclined to HTC smartphones. But with the improvement of technology and technology development, the major domestic and international mobile phone brand prices continue to decrease. HTC also some low-end products, while maintaining the same quality and process to reduce the phone's hardware configuration to lower the price range to meet the low-end consumers, so that people get satisfaction.

2.2 Product Strategy

HTC mobile phone to people as the center, "humble among the excellence" for the brand, the product according to a specific target customer groups, In the shape function and other brands to distinguish between mobile phones, highlighting the advantages of the brand, and allow consumers to perceive the existence of this advantage. HTC key products include social, audio and video entertainment, technology business, Tablet PC, and other four types of products.

Before the 2012 World Congress, HTC has exposed many new products, the media said it was HTC's "machine tactics", and in the 2012 World Congress, HTC launched a series of products, including the latest flagship model - HTC One X.

2.3 Place Strategy

HTC's online distribution and online direct marketing combined with the way, retail channels (HTC online store, HTC experience store and retailer retail counters) and operators (HTC telecom operators website and business hall) and the current mobile phone manufacturing Business use of the distribution channel model, directly to the consumer to sell, at the same time, the use of cooperation with the electricity business, and Xing long letter up to the alliance line direct line, offline operators centralized procurement; offline retail distribution (regional Market, such as the United States, Suning and other chain stores)

2.4 Promotional Strategy

HTC's promotional strategy mainly in the following two aspects:

(1) Advertising strategy: online advertising is the most important and most basic form of one. HTC companies in a number of navigation sites, portal publishing some promotional information, the recent product information to attract users to click, increase product visibility, attract potential users. Keyword advertising vector is the search engine, there are mainly Baidu PPC and Google keyword advertising.

(2) Internet marketing: HTC's website, although simple, but the site is still very good to meet the user's information needs. Through the website, providing free services, can attract some potential customers, enhance the effectiveness of network marketing.

2.5 Brief Summary

This chapter mainly describes the terminal marketing theory, related concepts and domestic and international terminal marketing development process. First, this chapter details the inevitability of terminal, terminal marketing and terminal marketing, and analyzes the marketing strategy of terminal marketing (Product, Price, Place, Promotion, Power, Public Relations). Secondly, this chapter analyzes the development of foreign terminal marketing And analyzes the development process, current situation and future development trend of domestic terminal marketing. At the same time, China's policy, social, economic, cultural and other environmental development of the terminal is still more favorable, as long as the appropriate strategic measures, you can make the terminal market extended.

3. SWOT Analysis on HTC's Terminal Marketing Channel

3.1. Definition of Terminal Marketing

"It's the marketing channel that determined the superiority, and this is the essential element of the marketing process." The marketing channel decision is determined by the type of business, the user's needs, the company's internal resources and the market competition status. Decisive factors change, can not be rigid, need to adjust the channel strategy according to the actual situation changes. HTC since the development, in an open, pragmatic and win-win attitude, and the terminal industry chain of high-quality channel partners to carry out in-depth cooperation, this section will be excellent through the HTC terminal marketing channel development environment advantages, disadvantages, opportunities and threats are analyzed in detail.

For the connotation of terminal marketing, the current academic and industry have the following four views:

First, from the consumer point of view, that the terminal marketing that is under the guidance of corporate marketing principles, the integration of internal and external human, financial, material and information resources to store as the basis for consumers to carry out a series of marketing-related activity.

Second, from the terminal business point of view, that the terminal marketing that is through the terminal with the cooperation, so that with the implementation of terminal manufacturers strategy and other marketing strategy.

Third, from the perspective of terminal communication, that the terminal marketing that is the terminal link to spread as the core, with outstanding "terminal performance" to promote the brand of a marketing campaign.

Fourth, starting from the terminal integration, HTC mobile phone before the planning general manager that:"Terminal marketing is a terminal link to the strong promotion and dissemination as the core, as far as possible to ensure that the balance between the marketing elements of a unified marketing model.It can be said that the terminal marketing is a prominent advantage of the terminal integration system.

Although the above-mentioned views on the terminal marketing focus is different, but one thing is common, that they have recognized that the terminal marketing is the focus of the sales work carried out a series of marketing activities. Li Chuanjiang in the "terminal marketing" mentioned: "terminal marketing, refers to the terminal work elements and the formation of a set of scientific and systematic organization and management system, including the organization and operation system, marketing personnel selection and management, product display, terminal Publicity, terminal promotions, terminal relationships, terminal visits and terminal maintenance and other elements".

HTC since the development, in an open, pragmatic and win-win attitude, and the terminal industry chain of high-quality channel partners to carry out in-depth cooperation, this section will be excellent through the HTC terminal marketing channel development environment advantages, disadvantages, opportunities and Threats are analyzed in detail.

3.2 Superiority

HTC Electronics was founded in 2006 and had won the leadership in the mobile phone industry. HTC was the biggest Windows Mobile smartphone manufacturer, the world's largest smart OEM and manufacturers. With intelligent images and reference design model built many years of smartphones, so that HTC's unique design shape, smooth interface, maintaining a good reputation; HTC and Europe and the United States operators have good relations of cooperation HTC in Europe and The US field sales to maintain a good momentum; Finally, HTC market sensitivity is high, the market rapid response capability super and effective must improve the HTC brand influence.

HTC specific advantages are the following aspects:

  1. Global smartphone leading brand;
  2. To innovation and cutting-edge technology as the core competitiveness;
  3. In the world, with the largest operator experience;
  4. HTC brand influence in the world (especially North America / Europe) China's rapid rise to a certain extent.

3.3 Weakness

HTC has maintained a good momentum of development since its establishment in 2006 and reached its record-high. But HTC’s sales began to decline in the third quarter of 2013. HTC electronic came across several declines in net profit, shipment ranking and the alteration of the top management team. HTC electronic loss of 3.5 billion Taiwan dollars in operating profit and the sales reduced by one-third of that of the previous year. Even though it acquaint a 22.8 billion surplus, HTC still met terminal market operations since the brand since the creation of a serious problem.

HTC disadvantages mainly in the following areas:

  1. The sales channel is not smooth, the lack of a clear channel structure and the overall grasp of capacity; second-tier cities, the channel coverage get weaker.
  2. The new market into the brand, the brand is weak (including visibility and reputation) brand core values failed to fully play;
  3. Team execution to be greatly improved.

As conclusion, HTC based on these weak and not mentioned the weak, need to improve their own management, enhance customer brand awareness and loyalty, HTC late development needs long way to go.

3.4 Opportunity

HTC was established in 2006, that was a period in which the six major telecommunication operator in China competing for the issuance of 3G licenses. This brought about a great opportunity for HTC brought in the following fields:

  1. 3G license issued, the demand for China's smart machine market is particularly alarming, its 1.3 billion population accounted for one-fifth of the global market, the smartphone market demand for space, the rapid growth in demand;
  2. HTC global fast Growth and good momentum of growth, especially in 2011, rapid growth, once became the world's top Well-known mobile phone manufacturers, the development of application software, portable entertainment needs have become a trend;
  3. HTC (HTC) has been the world's largest manufacturer of smartphones Windows Mobile, the world's largest smartphone foundry and manufacturers, with the world's rich product line, as well as for China's research and development efforts to ensure that HTC stock Adequate and keep pace with the development of the times;
  4. HTC retail experience to expand the depth of the user to facilitate the purchase before the personal experience, greatly brought back the user's purchase desire, effectively improve the HTC turnover rate;

In summary, opportunities and challenges coexist. Eight years of struggle, laid the HTC to further develop and strengthen the solid foundation; the face of difficulties, HTC people are full of confidence and determination to win. At present, HTC is "Quietly Brilliant" to create a strong HTC, and then strive to build a world-class HTC mobile terminal operators.

3.5 Threats

In the third quarter of 2013, HTC (HTC) began to decline, its operating profit loss of 3.5 billion Taiwan dollars, sales fell one-third of the year-on-year, HTC electronic operating profit fell sharply net profit, shipments fell, Executives team changes and other signs of decline. Perhaps the rapid development of HTC in 2011 brought about by the weak rebound, its own ability to continue to weaken the innovation, coupled with the external competitive environment is relatively intense.

HTC threats mainly in the following areas:

  1. iPhone and follow-up products to bring the impact of the market; Samsung, MOTO Android phone on the force, as well as from the operators to obtain more market resources, competition to increase marketing efforts;
  2. profit decline, the cost increases, HTC funds relative rival Apple, Samsung's capital flow is relatively weak, further threat to HTC's living space;
  3. parallel imports and fakes on the impact of the mainstream market, underground miscellaneous goods market imitation ability, even after the release of the brand, soon to be imitated.

4. Resolution to the Problems HTC Facing in Marking

Since HTC has reached great achievement in the VR industry and became one of the leader enterprises in the world, it is feasible that HTC can regain its glory through integrating the technical advantages in the VR field and the cost advantages in the OEM industry. The decline in the traditional smartphone industry is unstoppable according to statistics given by HTC annually. Wagner proposes a theory of "Advantages Integration" and this is the very way in which HTC can get rid of the troubles. At the moment, VR equipment, such as VR Helmet and peripheral equipment are not so convenient for operation.

Smartphone is portable and can be taken to anywhere and the top-up smartphones are capable of computing mass data, this was impossible in the past. Equipping with VR technology, HTC smartphones could acquire VR feature and this is totally revolutionary. All the opportunity comes from change. It is the accumulation of little changes that leads to the opportunity. A well corporate image is the intangible assets and valuable wealth to a firm, which means that firm owns a place in the heart of consumers. Corporate image can also influence pricing decisions. The feeling is that consumers understand the starting point of the product, but also what we call the first impression. In the purchase activities, the consumer's first impression of the product is very important. For the understanding and evaluation of the product, consumers first believe that their own feelings. How to establish and maintain corporate image? The most vital factor is to consider the price.

With obsolete, rigid and conservative ideas and being ignorant, an enterprise's decision-maker will not make the enterprise pioneering and innovative and is unable to adapt itself to the development of the modern market economy. A business in the market economy engaged in business activities, as if the ocean in the sea sailing, only dare to take the wind and waves, determined to forge ahead of the navigator to reach the other side, otherwise it will sink in the competition of many ships. Similarly, a corporate decision-maker lacks modern marketing concepts, is not good at pioneering in a market economy, and sank in competition.

In many years of its glorious period, HTC got lots of unique patents, which can be of great help to HTC phone. So, shift the pricing strategy and make the customers satisfied, HTC still has the chance to rise from the ashes, As the brand value constantly fell, HTC should not keep pricing its phones at a high price. No one will refuse a relatively cheaper produce with high cost performance.

Conclusion

This paper analyzed the marketing environment and difficulties HTC is facing. Such as the weakening in industrial design and the control of the product line. The HTC M9 was an example. Moreover, this study analyzed HTC's terminal marketing channel through the SWOT method, and the 4Ps analysis on HTC also digs deeper.

One of the reasons why HTC came to this is that it can not finish the shift from the top-end line to the second line.

To survive this challenge, HTC should take action as soon as possible. Once the combination of HTC smartphones and VR technology is realized, HTC has not to worry about the future of its smartphone product line.

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Acknowledgements

I am desire to express my sincere thanks to all those who helped me during the writing of this paper, especially when I have ran into difficulties in the writing process. Most particularly, I wish to express my appreciation to my tutor Mr.Huang for his constructive suggestions and academic advice throughout my writing. His instruction and warm encouragement are of great significance to the completion of this paper.

Without the help from Mr. Huang Yuxi, I would not have finished this paper. At the very beginning of my paper writing, he gave an affirmation to my thesis, which encouraged me to continue my writing to a large extent.

Besides, my gratitude goes to the authors of the academic books listed in the Works Cited. I benefit a great deal from my study of these materials.