The Impact of Huaweis Opening of Physical Stores in Canada Presentation.

MKTG 3378 Team Project The Impact of Huawei’s Opening of Physical Stores in Canada Team 1: Jingdi Zhao, Xiaoqing Li, Ruqiao Xiong, Shengqin Xu, Yihao Chen 2021/11/24 Contents 1. The Purpose of Research and Background Information………………1 The Purpose of Research and Background Information Huawei is a domestic brand in China. Huawei expanded its business to include building telecommunications networks, providing operational and consulting services and equipment to enterprises inside and outside of China, and manufacturing communications devices for the consumer market. Huawei phone products are one of Huawei’s core businesses. With the development of economic globalization and the domestic market becoming more saturated. Huawei began to explore overseas markets. “In July 2020, Huawei surpassed Samsung and Apple to become the top smartphone brand (in the number of phones shipped) in the world for the first time (Wikipedia, 2021).” The company’s various problems will be encountered in the process of globalization, such as Huawei has many physical stores in Asia, but Huawei’s main sales method in Canada is through online websites or operator stores like BELL and TELUS. Therefore, consumers in Canada rarely have the opportunity to go to the physical store to get the latest machine and try it out. In this situation, does Huawei need to open physical stores in Canada to increase popularity or market share? This paper will use the research method of a questionnaire survey to analyze this problem and give deliverable results. The Secondary Data Secondary data is existing and acquired data. The data can be obtained directly from anywhere. The collection of these data is time and energy saving. In this part, some secondary data related to the project will be collected and explained. Market share: In the form of smartphone market share In Canada 3Q’18 to 3Q’20, by vendor, we can see that different brands of mobile phones hold different market shares In Canada. Apple has the largest market share, followed by Samsung and LG. Google and Huaweiwith only have a small share. These statistics show that Huawei needs to develop new strategies to cater to the market and increase its market share. Political influence: President Donald Trump cut off access in 2019 to U.S. technology and services including high-end processor chips and Google maps and music. Since then, the sales of Huawei’s mobile phones have been greatly reduced. “Sales by Huawei’s consumer unit, which includes smartphones, tumbled 47% compared with figures reported for the first half of 2020. That unit was 42% of total revenue. (Press, 2021)” This policy is bad for Huawei’s phone products. This secondary data can help us understand the impact of the US sanctions against Huawei. Information related to the target market: In the article 25+ Crazy Cell Phone Statistics for Canada [for 2021], we can learn more information about mobile phone users in Canada, such as usage habits, usage time, preferred brands, and user population. This information can help Huawei understand more about the Canadian mobile phone market and consumers. Strategies to enter different countries: In the face of increasing overseas market demand, Huawei mobile phones need different marketing strategies when entering different countries. In the article Research on Marketing Strategy of Huawei Mobile Phone in European Market, we can understand the price strategy, channel status, promotion status and some potential problems of Huawei mobile phones in Europe. Such secondary data can be used as a reference for Huawei to enter the Canadian market. We can learn a lot about Huawei’s previous challenges and solutions from such data. This will help us avoid the same mistakes in the future. Research Method Used In this report, we decided to use a survey research methodology to develop the research. For the questionnaire, we have developed eight questions to collect samples’ answers to find out if Huawei needs to open physical retail stores to increase its popularity and market share. survey research is a good method to collect data for our purpose since it is an inexpensive method to conduct the research and it is a fast way for us to collect the data. For these eight questions in this questionnaire, the main purpose is to collect the number of people who prefer to use the Android system. In addition, it is also important for us to find out what features of phones attract Canadians. Questionnaire: We are happy to invite you as one of the main target markets for smartphone users to help us complete the survey. In this questionnaire, we will ask you a few questions about your preferences when purchasing mobile phones. We will use the results of the questionnaire to study whether the opening of Huawei’s physical stores is helpful to increase market share. Your answer is very important to us. This is a very short questionnaire survey, it only takes five minutes to complete. After you complete the questionnaire, you can participate in the lottery and have a chance to get a reward of $200. 1. Which smartphone’s system do you prefer, Android or Apple? 2. Where do you go when you purchase a new smartphone, Official Store or retail store? 3. How often do you visit the mobile phone store? 4. Have you ever heard any information about Huawei, if so, what do you think? expensive? Quality? compare with Apple. 5. If Huawei has a better price and quantity, would you choose Huawei instead of Apple? 6. When you buy a new phone, what features do you value most? 7. How much does your in-store experience influence your purchase? 8. Would you look at a mobile phone review online to choose a phone? Sampling Plan For this questionnaire, our main target samples will be students from the university since youth are more interested in new electronics and the youth group has big buying power. The ideal population will be around 500 people with a 95% confidence level and a 5% margin of error. The necessary sample size will be 218. For the logistics of choosing samples, our target samples will be the university students aged from 18-24, no matter of gender. As a result, the samples will be chosen at random in Saint Mary’s University, Dalhousie University and Mount Saint Vincent University in Nova Scotia. Data Gathering The quantitative data collection method will be used in this study to come up with quantitative figures that will be used for the data analysis. Unlike the qualitative data collection method, in which the respondents have the freedom to share perceptions or opinions besides the research questions, quantitative methods are restricted to the closedended questions asked in the survey (Islam & Islam, 2020). The closed-ended questions will require a ‘ye’ or ‘no’ answer or sometimes will be used to give a rating of a particular opinion by ‘strongly agree,’ ‘agree,’ or ‘disagree.’ The number of respondents responding to the questions will then be recorded. The main reason for collecting the data using the quantitative approach is for statistical analysis that will be used in the study. Data Processing Questions Response Response Gender Av Age Which smartphone Android= 22 Apple= 28 Male= 26 24 Official=28 Operator=22 Female= 31 31 Often=16 Rarely=34 Female=29 26 Expensive=12 Cheaper=38 Female=33 22 system do you prefer, Android or Apple? Where do you go when you purchase a new smartphone, Apple Official Store or Operator store? How often do you visit the mobile phone store? Have you ever heard any information about Huawei, if so, what do you think? expensive? Quality? compare with Apple. If Huawei has Yes=31 No=19 Male=27 22 Speed=33 Space=17 Female=26 23 High=40 Low=10 Male=32 23 Yes=45 No=5 Male=29 24 better price and quantity, would you choose Huawei instead of Apple? When you buy a new phone, what features do you value most? How much does your in-store experience influence your purchase? Would you look at a mobile phone review online to choose a phone? The data file will include all the survey questions and the number of respondents who responded to each question. Those who agree or pic
k on either side as Apple or Huawei, Online shopping or physical stores, or generally agree or disagree will be recorded. The number of respondents giving the same answer will be recorded in figures for data analysis. For instance, some of the clients will agree that they love Apple models while the rest will agree that they love Huawei. The number of those who love Huawei will be recorded while those who love its competitor Apple will also be recorded. This is how the data will be decoded from qualitative to quantitative. Statistical Analysis Plan The statistical analysis plan for this study will use a wide range of statistical tools to find out the current market state of Huawei in the Canadian market. The use of simple analysis tools such as pie charts to more complex analytical approaches such as t-tests will be used in the analysis. The data file will only record the figures that will be used for statistical analysis. Besides recording the number of respondents answering the questions, other demographic details such as age and gender will also be included. The reason is to understand which demographic class likes or doesn’t like some of the brands in the market. This will help in marketing as the brand will focus more on a particular demographic that is more sensitive to its brand. For instance, the number of respondents who agree to visit Huawei physical stores is only 16, while those who agree that they often shop online is 34. This data can be used in the analysis as follows. This chart indicates that the sale made through online shoppers is higher than those who shop offline in the stores. When this data is looked at the age, it indicates that the average age of the Huawei clients is aged 26, and the majority of them do their shopping online. This information is vital in marketing as it will help to focus more on online advertisements and promotions than offline to increase its market share in Canada. The simple Excel charts such as pie charts and graphs will be suitable in this study as they give a better picture of which factor is more influential in the market. The study has no more complex analytical relations such as correlations that need advanced statistical software for analysis. The best approach is to analyze key marketing factors and compare them with the demographic data obtained from the study. Demographic data is important in any analysis as it identifies a group of people who are more interested in particular services than the other. Deliverables The client will receive countless information about the research project within the lens of the research report. First of all, give the customer the goal and purpose of the project, and analyze whether Huawei’s opening of physical stores in Canada to supplement online sales will be welcomed. The client will also be given a type of data that can be used to obtain information about the research objectives. Notably, this secondary data will be collected from anywhere to determine whether Huawei’s move to sell products in Canada through bricksand-mortar stores will raise the company’s profile. In addition, clients will receive information about the research methods used, including the use of questionnaires. The customer will receive information about the order of the questions asked in the questionnaire that is reasonably explained. Similarly, customers will receive data on the sampling plan, with a sample size of 1/100 customers, and provide questionnaires to collect their feedback on whether Huawei’s use of physical stores in Canada will make the company welcome. The client will also receive information about the research methodology. Data were collected through closed questionnaires and interviews. Further, The customer will also be provided with a process for collecting data. Data will be collected by interviewing respondents and receiving their feedback on whether Huawei’s plan to set up a physical store in Canada will raise the company’s profile. In addition, the client will receive information on data processing, including data collected through interviews with 50 respondents. Finally, the customer will receive analytical information using an analytical tool such as the Richter scale. Reference list 1. Wikipedia. (2021). Huawei. Retrieved from: https://en.wikipedia.org/wiki/Huawei/ 2. S. O’Dea. (2021).Smartphone market share In Canada 3Q’18 to 3Q’20, by vendor。 Retrieved from: https://www.statista.com/statistics/1077455/smartphone-market- share-by-vendor-in-canada/ 3. Press. (2021). Huawei revenue takes a hit as smartphones hurt by US sanctions. Retrieved from: https://www.canadianmanufacturing.com/manufacturing/huawei-revenue-takes-a-hitas-smartphones-hurt-by-us-sanctions-272022/ 4. Marija, P. (2021). 25+ Crazy Cell Phone Statistics for Canada [for 2021]. Retrieved from: https://reviewlution.ca/resources/cell-phone-statistics-canada/ 5. Romans. (2020). Research on Marketing Strategy of Huawei Mobile Phone in European Market.Retrieved from: https://www.scirp.org/journal/paperinformation.aspx?paperid=100124 6. Islam, M. N., & Islam, M. S. (2020). Data Collection and Analysis. In Islam and Democracy in South Asia (pp. 49-65). Palgrave Macmillan, Cham.