Today, the company is known for its innovation and research. However, the HTCbrand still has a weak image compared to its competitors like Apple, Blackberry, Nokia, Samsung and Sony. HTC is now focusing on developing its brand image to grow its market share. This report reviews the current marketing strategy for HTC Android phones. It analyses the marketing mix forth and reviews the areas of weaknesses and opportunities to build upon. Finally, the report provides some recommendations for the future strategy forth. : In key areas listed below these are to: •
Expand market presence into emerging markets with good intellectual property laws, namely India and Brazil, but not China. •
Promote HTC at a younger market segment than existing Smartphone customers to date, focussing on its lower price compared to the Appleiphone. This will mean developing a new market niche, gaining first mover advantage and building long-term brand loyalty among consumers. •
Develop and showcase new applications development that shows value from enhanced functionality, especially those for the targetdemographic enterprise solutions. •
M maintain HTC’s core value of innovation by promoting new features and functionality, customisability and design qualities.
This future strategy would be essential for long-term sustainability for the company.Target segments applications development ASecurity enhancement Brand awareness 1.
2.1. HTC profile
HTC Corporation, a Taiwanese company, is a powerful producer of handsets. Its main focus is to push the boundaries of innovation in mobile phones (HTC, 2010).HTC has awide footprint in America, Europe and Asia-Pacific with its headquarters in Taiyuan, Taiwan (HTC, 2010). At the end of 2009, HTC had8, 249 employees globally (Datamonitor, 2009). The company recorded revenues of USD 4.4, 379.6 million billion during the financial year ending December 2009(FY2009), a decrease of 5.2% over 2008 (Datamonitor, 2009). See Appendix 1 for HTC Revenues by Geography. In Q2 2010, HTC became one of the top 10 mobile phone companies (feature and Smartphone inclusive) selling 5.9 million units with a market share of 1.8 %( Gartner Newsroom, 2010a). Figure 1 shows the top 10companiesin the mobile market in Q2, 2010.8
Figure 1: HTC took the eighth position for mobile devices sold in Q2 2010 (Gartner Newsroom, 2010a). For the Smartphone business alone, HTC has experienced a surge in its market share by 73.3% in the last year and currently holds a market share of about 4.8 %( IDC- Press Release, 2010). 2.2. HTC brand development and position
According to HTC (2010), its mission is:
“To become the leading innovative supplier of mobile information and communication devices by providing value-added design, world-class manufacturing and logistics and service capabilities.” In 1997, HTC started its business as a laptop Original (OEM) called High Tech Computers. Soon after, HTC repositioned itself as a PDAOEM (
, 2009). Having already acquired a reputation as a world-famous PDA manufacturer, the company wanted to develop its”HTC“brand name own elf as a prominent consumer brand for phones rather than as a phone manufacturer for other mobile brands. Since 2002, after first launching theMicrosoft smartphone, the company has introduced several HTC-branded9 Products globally (HTC, 2010). Today, the HTC brand is famous recognised for its innovation in smartphones.10
Industry and product analysis
Our chosen product category
Today, under its own HTC brand, the company has launched many smartphones using Android or Windows Mobile operating systems. The main focus for this report will be the HTC Android phone business. The main reason for this selection is the potential growth for business Android phones this market. Currently, Android phones make up 25% of the market share in smartphones (b, 2010NewsroomGartnerSee Figure 2). This has been projected to rise to...
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