Assessment Event 2: Academic Research Essay The Recommendation for HTC Company Student’s Name: Viola Xu Student ID#: QING21168 Teacher: Ben Charlton Due Date: 26 September 2012 Word Count: 1682 Table of Contents Executive Summary1 Introduction:1 Method:3 Findings:4 Discussion:6 Conclusions and Recommendations:7 References9 Appendices10 Executive Summary This report was raised to find a method to help HTC have a larger market in China by recommending a marketing mix. A decrease from 8. 9% to 4. % in one year needs to be addressed (Ken Liu, 2012). By looking for the ability of how much the marketing mixes can contribute to the development of HTC, our results showed us that the product development can help more than market development. HTC lost its competitive power since it does not change the products much more, especially compared with IPhone4. People are more likely to buy a long-life phone in shopping places; advertisements can be produced to let people know HTC; and HTC has to find the strategies to cover the more customers in China.
The report concludes that compared with market development, the product development is the most efficient way to develop HTC Company because products in HTC will be more convenient and cheaper than IPhone4. Introduction: 1. 1Objectives of the research The purpose of this paper is to develop the products this company has a little bit or create a new product for this company to satisfy the demand of customers. And at the end, the most efficient marketing mix will be chosen to help HTC to develop. 1. 2. 1Uses and applications HTC is a mobile phone company established in Taiwan. It used to cooperate with Beats and now, HTC has 4. % of market in China (No author, HTC’S Q1 Shipments Drop Amid Strong Smartphone Growth Worldwide, 2012). 1. 2. 2Target market The target market of HTC is usually teens and adults all over the world. But HTC gets to pay more attention on teens since RIM has dominated teens’ market for many years (Blatchford, 2011). 1. 2. 3Key success factors HTC has some beautiful appearances, like it produced some products just for women. The Android system runs the phones very fast and HTC phones are cheaper than many other phones. 1. 2. 4Reasons for choosing Since smart phones became more popular in the public, more and more people get to know HTC.
But the market of HTC is not big enough since they have been developed for many years. 1. 3 SWOT analysis & the 4P’s SWOT standards for strengths, weaknesses, opportunities and threats. Internal factors include strengths and weaknesses. These two factors are what the companies can find by themselves so that they can use their strengths and avoid weaknesses when competing with other companies. The external factors are opportunities and threats. These two factors are what companies cannot control, but they have to predict things good or bad for them in the particular market to develop companies (GAC012, 2010). P stands for price, product, place and promotion. These are the details for the market mix. They can be used to plan the market mix so that the aim of the company is produced. A company can control and achieve objectives by using 4Ps. (GAC012, 2010) 1. 4 Thesis Statement At the end of this research, either product development or market development will be chosen according to the result of the survey. In this way, HTC will get this recommendation to develop their products to cooperate with Apple. Method: 2. 1 Data collection methods
The data of the questionnaire helped to analyze how much the product development and market development can help HTC increase the market and how can HTC use its SWOT to meet the demand of customers. By comparing these two marketing mixes, the best one will be chosen to help HTC. 2. 2 How data collection methods addressed the research objective The participants include both adults and teens, so it helps to see a whole market target of HTC instead of looking a part of market. The questionnaire has questions both related to product development and market development.
The number of questions for these two parts is almost the same. So the data collected in the survey will show which is better to develop the market of HTC. The online official store of HTC helps to see the common disadvantages of HTC mobile phones so that HTC Company can make a strong focus on those errors. Findings: 3. 1 Key competitor One of the most important competitors of HTC mobile phones is iPhone4. IPhone4 is a famous product produced by Apple and now many people use it. The product has a very clear and beautiful appearance. Also, many people choose it because of the durability.
Now, the Apple has a worldwide market, so there are many exclusive agencies all around the world. The price of iPhone4 is very high, as it cost about 700$ for each Iphone. Apple always has a ceremonious meeting for the new products. 3. 2 SWOT analysis of HTC & the recommendation of TWO marketing mixes Strengths * Adequate phone system (Android) * Adequate price for each phone * Big screen size| Weaknesses * Some useless applications * Short battery life * Few advertisements| Opportunities * Popular smart phone market in the world| Threats * Competitor: Apple, Nokia, MOTO|
For the strengths of HTC, most people are satisfied with the phone system Android because it can open the applications and internet quickly. And many people like the big screen size. They price of each phone is not as high as iPhone4. HTC phones have some useless applications and they often open automatically. The short battery life can only support the phone for 14 hours so customers have to charge it every day. And there are few advertisements for HTC on the TV or internet. As the smart phones become more and more popular in the world, HTC has to establish its own exclusive agencies.
And it can start selling the products in the big city, and then introduces their products to small cities gradually. Many companies now create smart phones to the market, so HTC has more and more competitors. HTC has to find a way to attract the customers. Product development Product: Extend the life of the battery to more than 48 hours so that customers don’t have to charge it everyday Place: After the sell in big the cites, introduce the products to small cities gradually Price: Around 3000RMB to 4000RMB Promotion: Create new advertisements on TV, internet and radio Market development
Product: Remove some useless software since some applications often open automatically, but people do not use them Place: Establish HTC exclusive agency so that new customers can come and only see HTC products Price: 4500RMB with free Beats ear buds Promotion: Go to several companies and give the phones to some of the staff for free so that people will know this brand, and then HTC can have a wide market 3. 3 Summary of findings 30 people out of 50 think a 14-hour-life battery is not enough to support them use it for a day and 29 people said they would buy HTC products if HTC Company extends the life of battery to 48 hours.
Since 24 out of 50 have HTC products, the number of people who said the applications in the phones are useful doubled the number of who said no. Most of the participants agreed that $3000 to $4000 is acceptable and 21 participants would like to buy HTC if the company gives them Beats ear buds for free. HTC do not have many stores in small cites of China, and 38 out of 50 people said there are not enough advertisements of HTC products. The number of people who want to buy phones in malls is a little bit higher than people who usually buy phones in exclusive agencies. See appendix 1 to 8) Discussion: 4. 1 Interpretation of findings HTC, a company which does not take a big part in Chinese phone market now, has to change their products to meet the demand of customers. It has to continue using the big screen size and Android. Most of 24 people who use HTC do not think the applications are useless. So the company does not have to remove the applications, but it does need to improve its technology to extend the life of battery since 3/5 of participants think 14-hour is not enough.
Only 11 people prefer to buy phones online and 27 people want to buy phones in shopping malls. So the dada shows that online stores can only focus on attracting new customer to know HTC products, and it is very important to establish stores in shopping malls. 3000RMB to 4000RMB is the most adequate price for HTC products because many people can afford that price. It’s not a good idea to sell it at 4500RMB and give a free ear buds because about half of them may will buy for someone else or introduce HTC phones to friends.
HTC Company has to create its advertisements as soon as possible to let more and more people know this brand and the company has to put on their new product on advertisements every time it creates a new one because only 11 people have seen HTC advertisements before. 4. 2 Effectiveness of the research This study includes both students and workers so that it can reflect the thoughts of the different targets of HTC Company. But the percentage of students and workers is not the same because the survey only has 15 workers, so it cannot directly represent the market of HTC among adults.
Also, the population of this questionnaire only consists of 50 people and all of them are live in Qingdao. It cannot show the whole market of HTC in China because the development of China is different in different places. Although there are some factors can affect the result, this survey is still valid because HTC Company can use this study to find an adequate city to start their marketing mix. Conclusions and Recommendations: 5. 1 Preferred marketing mix After all the research, the product development will be chosen to develop the market of HTC Company.
Because many people prefer a long-life battery rather than removing some of the applications, and most of participants would like to buy mobile phones in the shopping malls rather than in the exclusive agencies. As a large amount of people choose to buy a phone between 3000RMB and 4000RMB instead of spending 4500RMB with free Beats ear buds, the marketing mix which will be chosen should also be product development. Also, because of the lack of advertisements, product development has to work as soon as possible. 5. 2 Competitive edge of this marketing mix over Apple
The battery life of smart phones are all very short, so if HTC use product development, more and more people will choose HTC because they do not have to charge their phones every day, so it is more convenient than IPhone4. And the price of each IPone4 is more than 4500RMB, so customers can pay less money for a higher quantity smart phone. To attract more and more customers to buy HTC products, the stores should be established in the shopping malls. References Ken Liu (2012), HTC’S Q1 Shipments Drop Amid Strong Smartphone Growth Worldwide, CENS [online]. Available from: http://cens. com/cens/html/en/news/news_inner_40097. tml [Accessed at 17 Sept 2012] Joshua Blatchford (2011), HTC – Brand Repositioning, Manifested Marketing – Marketing Blog [online]. Available from: http://manifestedmarketing. com/2011/08/12/htc-brand-repositioning/ No Author (2010), GAC012 Business Studies, Australia. Appendices Appendix 1 Appendix 2 Appendix 3 Appendix 4 Appendix 5 Appendix 6 Appendix 7 Appendix 8 Questionnaire for HTC Smart Phone 1. ————————————————- Are you a student or working now? ————————————————- Students ? 35Working? 15 2. ————————————————-
Do you know the phone brand HTC? ————————————————- Yes 48 No 2 3. ————————————————- How do you think of spend ? 3000 to ? 4000 buying a smart phone? ————————————————- High18 Acceptable 32 Low ? 4. ————————————————- Do you think applications in HTC mobile phones are useful? ————————————————- Yes? 16 N/A? 26 No ? 8 ————————————————- If No, Why? 5. ————————————————-
Do you think the 14-hour battery life enough for you? ————————————————- Yes ? 20 No? 30 ————————————————- If No, How Long Do You Want? 6. ————————————————- Will you consider buying a new HTC phone if the battery life extends to 48 hours without recharge it? ————————————————- Yes ? 29 No ? 21 7. ————————————————- What features in HTC do you like? (If you don’t have HTC, go to next question) ————————————————- You can choose more than one] ————————————————- Keyboard? 2 Screen Size? 18 Durability? 10 ————————————————- Sound Quality? 6 Video? 4 Camera? 7 ————————————————- Messaging ? 3 Apps? 11 Internet Connection (quick) ? 5 Appearance? 4 8. ————————————————- What feature would attract you if you are considering buy a new phone? ————————————————- [You can choose more than one] ————————————————- Keyboard? 10 Screen Size? 3 Durability? 31 ————————————————- Sound Quality? 17 Video? 18 Camera? 30 ————————————————- Messaging ? 14 Apps? 26 Internet Connection (quick) ? 24 Appearance? 30 9. ————————————————- How do you think the performance of the HTC you have? ————————————————- Perfect ? 2 Good ? 7 Not bad? 21 Bad ? 1 ————————————————- N/A? 19 10. ————————————————- Do you mainly buy a phone mainly for entertainments or business? ———————————————— Entertainments ? 18 Business? 4 Both ? 24 ————————————————- Others 4 11. ————————————————- Do you see many HTC advertisements on TV commercial or in other places? ————————————————- Yes? 11 No ? 39 12. ————————————————- Where do you prefer to purchase a phone, exclusive agency (official stores) or shopping malls? ————————————————- Exclusive Agency? 23 Shopping Malls? 27 13. ————————————————-
If there is an HTC official online store, will you purchase products from the store or in the official HTC store? ————————————————- Online? 11 Official HTC store ? 39 14. ————————————————- Will you buy this phone if you get a monster beats ear bud when you spend ? 4500 buy an HTC smart phone? ————————————————- Yes? 21 No? 29 15. ————————————————- If we give you a HTC phone for free, will you buy it next time or introduce it to your friends? ————————————————- Yes 23 No27