Executive summary
China Mobile Communications Corporation, founded in April of 2000, is a Chinese state-owned telecommunication network provider; its service includes mobile voice and multimedia services (China mobile, 2014). It is also ranked as the worlds' largest telecommunication network provider by subscribers with about 760 million in 2013. Thus this report aims to investigate China Mobiles’ marketing strategies and make an objective evaluation of its current market strategy, then put forward effective measures for improving its market performance and financial performance in Chinese market.
Table of contents
Executive summary 2
Part A: Investigation and analysis 3
1.1 Marketing strategies of China mobile 3
1.2 PEST analysis of China mobile 7
1.3 Evaluating the marketing strategy of China mobile 7
Table 1: Key Operating Data of the Group 7
1.4 SWOT analysis of China mobile 10
1.5 Market summaries 10
Part B: Recommendations 11
2.1 Product improvement and differentiation 12
2.1.1 Product differentiation development 12
2.2 Price adaptation 13
2.3 place improvement 14
2.3.1 setting-up Online Shop 14
2.3.2 Building a Customer-Friendly homepage 15
2.3.3 Cooperative E-Channel building 16
2.4 promotion optimization 17
2.5 People 18
2.6 Process 18
2.7 Physical evidence 18
Part A: Investigation and analysis
1.1 Marketing strategies of China mobile
According to Kotler and Keller (2006), marketing strategies cover mainly four issues including product, price, place and promotion. It is not only a conceptual theory but also an application framework for satisfying customer demand and realizing the company goals. In order to investigate the marketing strategy of China mobile, this part also adopts ‘4ps’ as the main research tool for analyzing its current competition.
(1) Product Strategy
The products can be seen from the picture above, and the details will be demonstrated in the following tables:
Product Item
Characteristics
Product description
Voice Services
It targets to all the customers who uses it to communicate with friends and relatives. Compared with fixed phones, it has the strengths of convenience and portable.
Mobile internet data service
Based on Wireless Application Protocol (WAP), individual customers can surf online through phones especially after the creation of Smartphone, people can use mobile phone for entertainment, listening music, playing games online, watching movies and etc. then china mobile can gain the profit from the data usage.
Cable broadband services
China mobile also provides Broadband service for customers’ surfing online through computer at home. It also provides the TV signal for home citizens. And this kind of service works as a supplement for penetrating china mobile service. Enterprise Informational Construction
Its main customers are the business which aims to establish informational system for improving internal communication efficacy and work performance.
Source: China mobile (2014)
From the description above, China mobile provides almost two types of service for the individual customers, including personal voice service and internet access service; it provides broadband services for the home users and informational contracture for the business clients. Through it has a figure of 760 million subscribers in 2013 (China mobile, 2014), China mobile still has relatively few products for meeting the increasingly new demand of customers.
(2) Price strategy
Different products may have different pricing strategies. Here list different prices strategies through the following table.
a. Competition-based pricing: while facing the fiercest competition from other two competitors, China telecom and China Unicom, China mobile has to price almost 90% of its voice service based on the average industrial price for voice communication and
