Marketing Case Study: Motorola's Marketing Strategy In China

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Register to read the introduction… With over a billion people, and the potential for long-term growth, China seemed like a “dream” market. To date, Motorola’s target segment has been the well-to-do, mostly in cities along the east coast. Indeed, the case indicates that Motorola advertising and promotions have basically targeted four market segments – Heavy “Business” Users, Technology Enthusiasts, Fashion Seekers and Social-Life Lovers. These groups all have disposable income, or “money to burn”, and can afford the high-end mobile phones offered by Motorola. The problem is growth in this high-end market is stagnant; the days of explosive growth in these segments are over as most already own a phone. Yes, Motorola needs to continue to market to its longtime users (these segments have a high turnover of phones after all), but it’s time for Motorola to move into the less affluent segments of China, particularly in the …show more content…
Yes and no. Many of the people would not relate to these promotions as they exist today, though appealing to the “Fashion Seeker” and “Technology Enthusiast” using more affordable clothing, accessories and mobile devices has potential. Indeed, in order to reach these new segments, Motorola must offer more affordable products (maybe the same styling, but without all the features), and adapt its image (brand) to fit the lifestyle of the new groups.
Motorola is fortunate to have been in China so long. They have manufacturing and R&D plants throughout China, hire thousands of Chinese, and have affiliations with the Chinese Government and many of the other service providers. The Motorola name is known, and Motorola needs to use this to their advantage. Motorola needs to position itself as “the good neighbor”, the dependable company with the quality products. With the right products and additional campaigns geared toward the less affluent, Motorola should continue its good fortune in China.
3. What should Motorola do in order to effectively cut costing in developing low-priced mobile
…show more content…
These phones give you the option to keep two numbers active at the same time and you can even make and receive calls from two different networks at the same time. There are only a few manufacturers who have taken this to a big stage. There is a very good opportunity for Motorola to attract the youth segment.
Along with focusing on the sub-brands, Motorola should consider expanding with the addition of another sub-brand, geared towards the less affluent customers. The market in Western China should be explored because there are a lot of residents but many do not own cell phones. This is because the population there does not have as large of a disposable income as in Eastern China, but that does not mean the desire is not there. If Motorola can come up with new sub-brands that are more affordable cell phone, stylish and functional, but with less bells and whistles, we think their market share would

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