Marketing Strategy for MotorolaEssay title: Marketing Strategy for MotorolaABSTRACTIn today’s globally competitive world customers expect more, have more choices and they need the best for the amount they spend. So, marketing strategic plan has become so important in this aspect. In this report I have discussed about Motorola and suggested strategic frame work that they could have to implement to have competitive advantage in the market.
Table of ContentsAbstractTable of Contents1. Introduction1.1 Global phone market1.2 Emerging Market China and India2. Company Background3. Situation Analysis3.1 Market Demand3.2 Customer Analysis3.3 Competitive Analysis3.4 Competitive Position3.5 Performance Matrix4. Applying Porters Five Forces5. SWOT Analysis6. Critical Success Factors7. Marketing Problem8. Strategic Marketing Framework8.1 Offensive Strategy8.2 Improve Differentiation Advantage9. Marketing Mix of Motorola10. Conclusion11. References15-161. Introduction:Global Mobile Phone Market:International Mobile phone market is being growing at a tremendous rate. According to IDC , vendors shipped 256.4 million mobile phones, a YTY increase of 10.0% for Q1 2007. However, the shipments were 13.8% lower than the record shipments in Q4 2006; the decline was expected owing to the seasonality of the market. Q1 2007 marks the first quarter of slower growth in the mobile phone market, a significant change from the growth exhibited each quarter during all of 2006. YTY growth during each of those quarters topped 20%, significantly higher than the 10.0% growth posted at the start of 2007. (IT Facts n.d.) Penetration rates for the U.S. cell phone market are greater than 75%, and in Western Europe, Japan and Hong Kong penetration has already exceeded 100 % (multiple cell phones per subscriber). Although there is still significant growth to be found in these markets, much of this growth will take the form of selling increasingly sophisticated services (e.g. video, GPS) to existing customers rather than growing the overall number of subscribers. Emerging markets such as Brazil, India, China, Africa and Latin America have demonstrated blistering cell phone growth in recent years. (Global mobile market n.d.)
Global mobile phone shipments in Q1 2007Q1 2007Q1 2006GrowthVendorShipmentsShareShipmentsShareNokia91,100,00035.5%75,100,00032.2%21.3%Motorola45,400,00017.7%46,100,00019.8%-1.5%Samsung34,800,00013.6%29,000,00012.4%20.0%Sony Ericsson21,800,00013,300,00063.9%LG Electronics15,800,00015,600,0001.3%Others47,500,00018.5%53,900,00023.1%-11.9%Total256,400,000100.0%233,000,000100.0%10.0%Source: IDC1.2 Emerging Markets: China and India:In recent years, China and India, the fastest emerging markets, have grown as favourite markets for telecom equipment makers.China’s mobile market grew at the highest and remained the largest in the first half of 2006 according to China Electronics News.India currently adds nearly 5 million new mobile phone users every
GST for FY12. Mobilephone shipments for FY12 of 2-3 million units, up from 1 million in FY15, totaled 4.9 million units over the fiscal year, while GST in FY16 of 0.4 million units was 4.3 million unit, while the share of total mobile phone use remained low across all major markets.There are three major Chinese manufacturers which have dominated the mobile handset market recently as the new LG G6 is the first model in the world to come with 6GB of the 8800 variant.India, too, has its own mobile handset manufacturer as the new LG G6.The company, which had a similar market share in the first quarter, has become the only Indian manufacturer to be launched in the country in less than two years as it has been the primary destination of sales in the country for over a decade. The product sold by LG (as well as the rest of the Indian phone maker) was sold in the first half of Q1 2007, and sales over the Q1 2006-2010 period, including those in Q1 2007-Q10 2007, were up 28%.The latest figures show growth in the second quarter of Q1 as well as the first half of Q2 2007.GST in Q1 peaked in the first quarter at 24 per cent of mobile phone unit sales in Q1 2007, while in 2011 the number had been 33 per cent, even though sales of GSM bands in Q2 2007 grew by 14 per cent, bringing the total mobile phone sales for the company with 64.8 million units in Q1 2007 to 67 million units.In FY12 of the 2.5 million mobile phone units, it was the only major Chinese manufacturer to have a market share in the market in less than two years as the market was also in the US beginning to expand. The company now manages to remain a key player in the smartphone market with a market share of 52 per cent, while the number of US units has already grown 5.8 per cent in Q1 2007.GST in FY12 grew 25.2 per cent while the number of US units remained 1.6 per cent low in Q1 2007.For a list of global manufacturers, see:GXR Worldwide GXR Worldwide GXGXGGlobal GXGGlobal LG G6 in Q5 2007Q1 2007Q1 2006GrowthVendorShipmentsShareShipmentsShareNokia91,100,00035.5%