Intergrated marketing communications

The main form of research for my assignment will be through the library and Internet. I will do research into companies that are based out there as Motorola companies will produce company reports, which can be found either on the Internet or in libraries. This section provides a detailed account of the research undertaken to complete this assignment and further, goes on to analyse the strengths and weaknesses of each particular method. It is used to give support of the benefits thought to be associated with each research method. With my knowledge of the Chinese markets mixed in as well, I will hopefully Produce assignment that will be unbiased and concise. Executive Summary As the number one of the foreign export-import electronic company in China, was in unique position, Motorola has established a strong infrastructure and developed powerful relationships in China. As the China become more open and developed today, all the world organisations are likely to build their business in China. As the first telecommunication company who is entry in their business in China, Motorola has successfully earned Chinese market, how does this communication skills as they used, this is the main topic of this assignments. 1) China market environment For the BBC news reports: the US businesses community see the world's most populous country as potentially their most profitable market, and the US interests hope an open Chinese market could help pull the economy out of its present slump. Why is that? Thought it took 10 years to build a mobile user base of 10 million in China, the number of subscribers increased from 10 million to 100 million in less than four years. Currently, China mobile telecommunication market is nothing short of Stellar – no other market in the world is adding 5 million mobile subscribes a month (2001) to their customer base. China's mobile communications market, with over 120 million user by mid-2001, has over taken the US to become the largest mobile phone market in the world. China is already the largest market for cellular phones in the world and expected to be the second largest PC market in the world. China is become the second largest telecommunication market by the end the 2003. 1.2) Economic environment — special economic zones in China China now is the biggest consumer market in the world, China have thirteen Special economic zones (SEZ), especially designed for the foreign and private owned investors. The first in Shenzhen in the province of Guangdong in 1979, since then, three further SEZS have been established in south China: Shenzhen, Zhuhai and Shantou in Guangdong, at Xiameng in province of Fujian. After 1984, China making the condition more comfortable for the foreign investment, and in 1998, Hainan Island acquired SEZ status at the same time as being promoted to being autonomous province. The SEZ are able to accept foreign investment in virtually any area of economic activity of interest to China, including all the service and production area. Since 1990, foreigners are now to engage in land development, and to install electric power and telephone service to operate utilities in one of the designated investments zones. All the technologies investments are reduced of taxation. The all of 13 SEZ zones include Dalian, Fujian, Fuzhou, Guangzhou, Hainan, Ningbo, Qingdao, Shanghai, Shantou, Tianjing, Xiamei, Zhandjiagang, and Shenzhen. Preferential administrative producedures and tax incentives would be available for the foreign investors with in economic zones. 1.3) China mobile market information Before we justified Motorola's marketing communications plan, we need look at what kind of market do we stay in at? What is in here? As this assignment's topic is Motorola PLC (China), So we need look at what is China mobile market current situation. As by report, China mobile communication market is developing rapidly. The number of mobile phone subscribers in China increased from 6.85 million in 1996 to 85.26 million in 2000. The year 2000 saw an additional increase of by 41.97 million, exceeding the number of new subscribers of fixed phone networks for the first time of history. From 1996 to the end of 2000, the average annual rate growth rate of mobile phone subscribes remained 95%. By the end of 2000, the population of the mobile phone hold reached 6.7%, it is estimated that the total number of mobile phone subscribers in China will reach 250 million in 2005. So that took 10 years to build a mobile user base of 10 million in China, the number of subscribers increased from 10 million to 100 million in less than four years. Wow, that is how cheerful news for the each company who want doing their business in Chinese market. 2) Organisation—Motorola (China) For the topic above that, I choose Motorola Company in China as my selected company. Motorola inc, the world's leading company in offering integrated communications and imbedded electronics solutions, was set up in 1928, beginning from marking rectifier and motor radio, Motorola grow up in 1940s and 1950s, gradually became a transactional company in 1960s from when it began to develop its overseas market. Now, Motorola has over 110,000 employees around the world. Its operations cover wireless communication, semiconductor, automobile electronic, broad brand, Internet and Internet access products. Motorola is the leader in mobile phone, paging, two-way radio, and commercial GSM and CDMA. In 2001, the company has scored a total sales volume of US $30 billion. Motorola Company established its branch in Beijing in 1987 and registered in Tianjin Motorola semi-conductor and car appliances. In 1992, Motorola has set up Motorola (China) electronics LTD. In Tianjin has begun to produce beep-pager, mobile phone, two-way radio, wireless communication facilities, semiconductor, automobile electronics etc. Motorola is the largest foreign investor in China. Over the past 15 years, company has invested 28.5 billion Yuan ($3.4 billion, about à ¯Ã‚ ¿Ã‚ ½1.7 billion). Motorola (China) has consisted of 1 owned factory, 1 holding company, 8 R&D facilities and 26 sales offices. Motorola china employs total revenue for 2002 reached 47 billion Yuan ($5.7 billion, about à ¯Ã‚ ¿Ã‚ ½2.85 billion), up to 16 % from when was ($3.6 billion, about à ¯Ã‚ ¿Ã‚ ½1.8 billion) one of the largest exports in China. Motorola entered China at a prime time when mobile communication novel idea and no one was selling. As a result, the company enjoy success in selling its pager as tens millions of Chinese wanted convenience and symbol of social status (this is Chinese momentum and a strong emphasis on design and marketing, Motorola hold the largest market share in China, about 28%, as its brand is with best in quality, features and form factor. In 2001, Motorola Company with a total sales volume of $4.9 billion in China entered into a 1.44 billion dollars network construction and expansion contract with suppliers like China telecom and Unicom. The company has a staff about 15,000 in China. Motorola is the number one provider of micro controller products, which more than 18 percent of the global market. Motorola Company has been first in its market share in China in three consecutive years. According to the 500 strongest foreign-invested companies in China, in place of Shanghai Volkswagen, which it has kept title in nine years. Over the years, Motorola has developed a unique strategy for the emphasizing technology transfer, continuing investment and association cultures. The company has invested all its profits from china back gradually localized its China operations (nearly all Motorola China company's Chinese, 75% of managers). At present, Motorola with eight co-invested companies in China is actively implementing various co-operation projects in the fields of new and hi-tech technology research and developments with famous universities, scientific research institutions and enterprise in China. Motorola is a major supplier of mobile communication equipment which including mobile switches, base stations and handsets for GSM and company is one of the few companies that can offer complete CDM (infrastructure and handsets). Until now, Motorola (China) has made up to 64 million (RMB) donations to China hope project, tertiary education, flood salvation and western development. The company has launched brand all of the China, Beijing, Shanghai, Guangzhou, Zhejiang, Hunan, Tianjing, Suzhou, Hainan, etc. Anywhere have mobile user there is a Motorola. 3) Motorola China mission statement Vision – To be the standard against which others are measured Mission – To make aspiration quality accessible to all Values – Quality value, service, innovation and trust Motorola is China to stay and grow. Motorola has to date invested US $34.5 billion in china and employs 13,000 people on the Chinese mainland. It is the big foreign investor industry and it is one of the biggest American investors in the Chinese market. Motorola's relationship with Chinese government officials is continuing. Incapacity neighbour Beijing, manufacturing pagers, mobile phones, semiconductors and other wireless communications equipment. In April 1998, it moved its north Asian office from Hong Kong to Beijing. Comparing to other foreign competitors, Motorola have a long-term vision in the Chinese market. Motorola entered China in 1987 and registered in 1992 a company in Tianjin, a mu For us to fully understand the recent success of a greatest China â€Å"institution†, and how they can build upon its success, we must first examine the infrastructure of the company itself. 4) Model for Integrated Marketing Communication Integrated Marketing Communication is more than the coordination of a company's outgoing message between different media and the consistency of the message throughout. It is an aggressive marketing plan that captures and uses an extensive amount of customer information in setting and tracking marketing strategy. Steps in an Integrated Marketing system are: 1.Customer Database an essential element to implementing Integrated Marketing that helps to segment and analyse customer-buying habits. 2.Strategies Insight from analysis of customer data is used to shape marketing, sales, and communications strategies. 3.Tactics Once the basic strategy is determined the appropriate marketing tactics can be specified which best targets the specific markets. 4.Evaluate Results Customer responses and new information about buying habits are collected and analysed to determine the effectiveness of the strategy and tactics. 5.Complete the loop. 5) Customer target of Motorola China As the Motorola has wide range of mobile products, the vary of products designed as different of user group. For the Motorola (China), I selected four diverse of target marketing groups that are: fashion user; heavy user, social life lover user and high technology user. * Fashion user Most of young generation and between age 20-40, who loves to carry the new design and functional mobile phones, and change their mobile phone frequently. They more care about their appearance of mobile phones such as size, colour and diversified functions. The advertisement for this group should trend these side of behaviour. However, the product targeting of these group are only a short life cycle, the company should to contours move forward their product design, to lead the mobile market fashion. * Heavy user Normally they are successful businessman and woman, professionals and private company owner, are aged which above 30 years old, with a higher incomer. The people in this group as show in mobile as their necessary tools for their business or jobs, not kind of fashion staff. They always are early holders of mobiles phones, for them, it is good to stick with one brand, not always change, because they don't seems to have a time to use new manure. Therefore, for this group need have much high quality of the product and faultless customer service, also this group is much loyal in certain brands compare with other group, so it is very important to reach this group's customer. * Social life lover user This group might not that rich, but they are very active, enjoys pup, restaurant, nightclub all those kind of staff. They like to make friends and more care about their families. A mobile phone is the best tools for them to communicate with other and keeping in touch. They may not enjoy getting a very attractive appearance or very complicate functional mobile phones; the people in this group are much sensitive to the price of the phone than other groups, because they normally do not have very higher income and only got average salary. They normally are patient to wait about sales promotions in order to get good price with good deals. For this target of view, the profit margin of mobile phones targeting for this group are focused on lower price. However, with the increasing number of the mobile phones holder, this group's people are quickly growth and make more contribution to the growth of the market size. So, we cannot disregard the exist of this group. * Technology user This group's customer are normally male, high educated, the age of them are between 25-50. They are very interested to try advanced technology, and always seek new mobile phones with innovative technology and wide functions. Customers in this group are more likely try some new accessories connecting to the mobile phones and other personal digital equipment, such as ‘Is this mobile phone are good to connect to the laptop or Internet or is this mobile phone have a good camera'? 6) Promotion methods – Cross promotion Sometimes the cross-promotions that happen between different industries work so well. One company actually buys the expertise of the other and opens an outlet incorporating both. Benetton and Motorola rolled out an elegant line of pagers as â€Å"fashion accessories.† The cross-promotional partners' vision is to make the humble pager a fashion statement, with customers wearing matching clothing and pagers on their belts. Motorola persuaded Benetton to license its name and provide â€Å"creative consultation† to Motorola's paging division, which manufactures the new devices. Motorola Pagers, in colours ranging from â€Å"raspberry purple† to â€Å"buttermilk† will be advertised on Benetton models will have the United Colours of Benetton slogan stamped on them, which both gives Motorola and Benetton an advertisement, is called moving advertisement in the China. 6.1) Master card international and Motorola alliance MasterCard International and Motorola companies announced that each would commit resources in a joint effort to make m-commerce a reality for consumers worldwide. Motorola and MasterCard will collaborate on continuing research and development projects to assure interoperability between MasterCard's electronic payment systems and Motorola's wireless Internet devices and platforms. The two companies plan to develop next-generation m-commerce technologies that support the initiatives of the newly formed Global Mobile Commerce Interoperability Group (GMCIG), of which both companies are key members. The alliance also includes cooperation on a number of key initiatives to promote the benefits of m-commerce to consumers through joint marketing activities. The companies also plan to work together to adapt existing, intelligent payment systems for the mobile environment. These systems include MasterCard M/Chip(tm), its chip-based integrated credit/debit system, and Mondex(tm), MasterCard's chip-based electronic cash payment system. Motorola's alliance with MasterCard will enable Motorola to work closely with MasterCard's 22,000 member financial institutions. As a result, Motorola expects to realize continued improvements in the capabilities and functionality of its existing wireless Internet devices and platforms. Both companies also will benefit from the respective experience, leadership and brand recognition of the other – Motorola with its reputation as a global communications leader and pioneer of the wireless Internet, and MasterCard as the most widely-accepted electronic payment brand in the world and a catalyst for the development of m-commerce solutions. 7) List of stakeholders— Motorola China Manufactory & Products: Motorola have a range of products, which include pages, mobile phones, Internet and Internet access products. The integrated electronic system sector, we called them ‘IESS' in Motorola, formally as known as ACCES (automotive, computer and communication components and energy sector), consists as two parts: the energy system group (ESG) and the automotive and industrial electronics group (AIEG). ESG Tannin factory has several SMT assembly lines, with high-precision mounting capability and speed, the factory is capable of producing a wide range of PCB electronics products, to meet the requirements of customers. ESG Tianjin now produces nearly 100 types of batteries of various series for Motorola's company, V series, time port, talk about, two-way radio products and other electronic devices. The Motorola (China) factory is played an important role of Motorola's development strategy. Suppliers: Motorola have about 700 direct supplier or indirect supplier of Motorola China for total 13,000 employees. Distributors: These are the sources for companies to deliver their products throughout the market. The primary distributors are the state funded networks and the larger distributor networks throughout the China. A key government network, sponsored by china mobile, is a key network as it sells and distributes other brands. Another strong channels is companies like Cellstar and bright point which are the world's leading global providers of innovative, value – enhancing logistics services to the wireless communications industry. Another channel outlet is the smaller private exclusive distributorship agreements, which Motorola does not depend heavily on. These partner combinations are important for companies who depend on them to get their products to the ever-expanding market regions. Subscribers: By the year 2003, the Motorola mobile phone subscribes in China will reached 75 million, and the number will go up to 200 million by the year of 2004, but most of the market share will be taken by Motorola. The figure 2 is show in the growth of subscribers. Source: Temple University Customers: as I mentioned above, Motorola (China) separately with different customer user group, every group have their characteristics, we need try to carry out diverse of product design, plan and strategy for those various user group. Employees: Motorola has over 110,000 employees around the world, which Motorola (China) has about 13,000 employees, by the end of last year, Motorola (China) has about 700 managerial staff are Chinese, including about 200 female, which accounts 26% of total number. Government: China government structure plays an interesting role in the assumption that foreign companies will maintain dominance. Retailers: the retail distribution for the mobile phone is severely fragmented, but consolidating with industry growth and expansion. As mentioned previously, because of its dominant position, china mobile serves as a major distributor for mobile phone technology producers. Major department stores and retail outlets provide another key outlets for distribution. There is no one way to get products to consumers, as no one company has access to all of the markets in the nation, so providers must develop relationships with many types of outlets to gain market advantage. This is changing as the larger outlets and suppliers are buying up smaller retailers to consolidate their retail capabilities. 8) Marketing goals For the Motorola marketing goals, I think one of the most significant developments in business in recent years has been rapid growth of international activities. Exporting, foreign direct investment and sourcing of products and components abroad have expanded dramatically. Many firms enter new international markets make their company more competitively and new product growing more quickly. The market entry relates to the easy or difficultly with which a firm can become a member of a group of competing firms by producing a close substitute for the products they are offering. The firms must develop a range of products, assets, marketing strategy and management activities for the new market entered. Motorola will emphasis on facilities to make wireless telecom equipment, mobile phone handsets and semiconductors, it already told the largest investor in China electronics industry. Motorola will carries out a win -win development strategy from beginning and bring idea of taking China as its home and development base, to win the Chinese government and people's heart. Example as: with development over 15 years, Motorola has made a big success in China and been turned into a famous brand. In 2000, Motorola (China) is the leading company of 1,000 high-tech companies by china high-tech enterprise evaluation centre. In 2001, Motorola (China) was the biggest foreign import-export company in China. 8.1) Corporate goals In an effort to retake global market share, Motorola is relying on its long-standing local investments, self-expressive branding campaign, and redesigned products platforms to dominate critical emerging markets. Motorola company would continue to invest all of the proceeds of the company the company made from China in expanding production and China's accession into the world trade organization (WTO) and will sell a half of the company's products on the international market. 9) Case at Motorola pull strategy Motorola will purchase US $10.5 billion of components from the Chinese market and will export more than US $12 billion worth of commodities at 2004. Motorola will be using Japan's most popular 3D graphics technologies in its new mobile phones in an effort to claw back sales from market leader Nokia and rising star Samsung. 3D graphics are expected to be a standard feature on mobile phone handsets, especially. Just as with PCs, mobile devices will soon have separate processors for handling graphics because this eases the main processor's workload and allows more complex and better looking applications to be executed. The 3D games will pull some mobile phone users to upgrade. 9.1)) Motorola push strategy Motorola setting up a new application development centre to promote wireless data services among Chinese networks. The company plans to help local telecommunications operators link up with application developers to offer quality control, engineering and logistics support as well as sales and marketing help. Mobile phone companies worldwide are moving to set up data-oriented 3G networks to boost capacity, improve coverage areas, and offer services such as 2.4-megabit-per-second wireless broadband. The data-oriented services are also expected to help make up for plunging revenue from voice calls. 10) Example of marketing communication mix — Motorola Motorola, the world's second largest wireless phone market, held its 2003 product launch in Shanghai, China, with a line up of handsets clearly meant to appeal to buyers not just on functionality but also stylish. As Motorola has historically been perceived as engineering – driven company and its products have reflected that heritage. While that approach has yield some of the market's hall of frame products – such as the 1996 introducing of the star TAC – today's mobile handset market is increasingly focusing on the youth market, where designs that reflected their style s and ‘personal expression' are key. Motorola's product launch event in China was more that just an opportunity to release its new handsets. It was also a showcase meant to highli9ghtr the company's new mindset and marketing strategy that should help it build market share. The Motorola campaign and the 2003 product line seek to embrace that trend. The 2003 line showed off many evolutionary products, including phones with advanced colour displays, a new 3G phones, and a new technology called ‘haptics' that envelops the user in what is best described as a ‘vibration field' that differs depending on the caller. The new handsets also have a strong focus on picture messaging, with many models offering built-in cameras. The company is also keeping cost and manufacturing efficiencies in perspective. Motorola is increasingly adopting the practice of reusing the same chipset and wrapping different hardware and software ‘skin' around them to offer a different looking g product- build on products and sell it in four different ways, there by appealing to a wider range of audiences. Well, today, handsets are not only tools, there are fashion statements, and something can show with personal styles. Motorola now is appealing to there sense of style, in addition to offering advanced phone features. During that lunch, one thing is clear: this is a company that knows that brand equity and defining the brand are important factors. The 200 analysts and media who attend lunch events – every advertising surface between the airport and the hotel were covered with their ‘hello Motorola ‘ ad campaign. The product rollout was treated like a movie premier – something Motorola would never have done few years ago – featuring Motomodels, Motococktails and have course Motophones. The event clearly showed how management has completely retooled and refocused its product strategy for the better. 11) Motorola's strategy plan As Motorola kept their intimated relationship with Chinese government from the beginning of the time when they entered Chinese market, so Chinese government always is the strongest support for the Motorola (China). > The major investment focus will still be around north China's Tianjin area where it launched it production base in 1980s. It will put over two billion Yuan (à ¯Ã‚ ¿Ã‚ ½151 million) on Tianjin based Motorola (China) electronic company with in next five years. > The strategy of Motorola is not to seeking quick money returns, but also has a long-term commitment to the China market. The Motorola (China) will adhere to a principle of introducing the latest technology to Chinese market and continues operate with smooth co-operation with domestic partners in the market. The famous 2+3+3 strategy for the Motorola of Chinese operation, this strategy which include building China into a worldwide manufacturing and R&D base for the telecommunications equipment giant. It includes three new growth areas including semiconductors, broadband and digital trucking systems and three $10 billions goals through 2006. > Local sourcing is an important development rule for Motorola in China. Motorola hope takes part of China economic construction by enforcing this rule and strengthening its co-operation with Chinese enterprise. > Motorola will choosing local company supplier, helping them improving their management, enhancing efficiency and promoting quality regulation system, or even will bring them into contract with foreign regulation system. Example as: in year 2001, Motorola had a RMB13.3 billion purchase from Chinese enterprise, including RMB 3.3 billion by overseas branches of Motorola, the amount which is much high than other foreign companies in China. > For the long-standing Chinese culture and specially background (Chinese government are controlled by the communist party), so that Motorola will choose their management team locally. Example: Motorola offering a huge range of training program for their Chinese employee, by the end of 2001, Motorola has a 767 managerial employees are Chinese, which is account of 26% of the total management number. 12) Localization Knowing that consumer preference in the Chinese market is quite different from that in the US or UK market, Motorola started to localize its product development after the initial poor performance of pure ‘global' strategy. Now Motorola adapts its models to meet the specific demand form local markets rather than simply throw the current products into the market without any adjustment. The R&D centre in China successfully developed software to show the menu in Chinese and input Chinese characters. In 1999, a combination PDA/phone, which was designed by Chinese engineers, was launched in China and spread to the us and European countries. Motorola localization strategy also includes local souring. The company takes initiative in establishing relationships with local suppliers. 7 years ago, 65% of components were imported, while 69% of components are purchased locally now. Local souring brings Motorola three major benefits: lowering manufacturing cost, reducing risks from currency fluctuation, and catering to Chinese government's requirements. 13) Advertising and promotions targeted to market groups According to my analysis above, Motorola has four target customer groups, and there are four sub-brands to respectively target the 4 market segments: time port to heavy user, accompli to technology user, V. to fashion user, and talk about to social-life lovers. Different advertisings and promotions are implemented to target these 4 specific categories, which are show in below: Figure 2. Advertising and promotions targeted to market groups