BSB52415 Diploma of Marketing and communication BSBMKG507 Interpret market trends and developments Assignment 1 By Lau Kai Chun Ng Ki Lam Tuason Brian Ma Ho Sum ZTE CORPORATION Marketing Campaign Evaluation Version 1

BSB52415 Diploma of Marketing and communication

BSBMKG507 Interpret market trends and developments

Assignment 1

By
Lau Kai Chun
Ng Ki Lam
Tuason Brian
Ma Ho Sum

ZTE CORPORATION

Marketing Campaign Evaluation

Version 1.0

11/9/2018

Presented by:
Lau Kai Chun
Ng Ki Lam
Tuason Brian
Ma Ho Sum

Content Page

?Introduction 4
ZTE Latest Tablet 4
SWOT Analysis 4
Economic Analysis of Germany 5
Demographic Analysis of Germany 8
Telecommunications and Internet Usage and Infrastructure for Germany 10
The Market Potential of Germany 12
The Culture of Germany 14
Competitor Analysis in Germany 15
Conclusion and Recommendation 15
Reference 17
Appendix 18?

Introduction
This report is base on the assumption that our company, Zhongxing Telecommunication Equipment Corporation (ZTE), is going to enter the Germany market. ZTE is a Chinese multinational telecommunications equipment and systems company in Chinese. ZTE is one of the top five largest smartphone manufacturers in China. We decided to sell our latest product for competing against Apple’s latest iPad in Germany.
ZTE Latest Tablet
We propose to launch our new tablet and target on the Germany market in order to competing with Apple’s iPad. The new tablet is called ZPad Pro, which is length 9.6 x 6.74 x 0.3 inches and weight 467g. It can connect to WiFi and access the latest 5G network connection technology, which mean it enhance the work efficiency. The tablet has higher internal memory which is at most 256 GB. It has 3.5mm jack for sound output and has a 12 megapixel camera on it.
SWOT Analysis
Our strength would be featuring 5G network connection and longer after sales services than Apple iPad do. Network speed is important for German business, they need fast and work efficiency. So our ZPad Pro will provide them with high-quality telecommunication and internet speed. Our longer after sales service can give them more reputation to us.

The weakness is our brand is not well known in German. They don’t really buy products from outside Germany unless it’s a big brand like Samsung or Sony. We need to concern about what promotion activities that can draw their attention.

ZPad Pro is a tablet that works like a laptop and it’s lighter, so it’s easy to carry around when they need the computer to work outside the office. It’s easy to set up, it can go directly to operating, doesn’t need to shut off every end of the day. The brand ZTE would provide a useful portable computer.

The competition in Germany is very strong, ZTE is not a well-known brand. Apple iPad and Samsung Galaxy Tab are basically the only tablets they will buy. The threats would make us very difficult to show our brand and products to them.

Economic Analysis of Germany
GDP in Germany

Germany is the fifth largest economy in the world and the largest economy in Europe. In 2017, Germany’s gross domestic product (GDP) was 3263.35 billion US dollars, which accounts for 5.93% of the world economy. The Gross Domestic Product per capita in Germany was last recorded at 46747.19 US dollars in 2017, which is equivalent to 370 per cent of the world’s average. In the second quarter of 2018, the German economy grew 2% year-on-year in the second quarter and grew 2.1% over the previous three months.

GDP from end users

The positive contribution to GDP growth comes from domestic demand, especially household consumption (53.7%), government spending (19.9%) and total fixed capital formation (20.1%). This shows that Germany’s spending power is very high, they also don’t mind about purchasing something which they have needs or wants. If our product can successfully reach their vision, they will buy it. So, this is the high potential market of ZTE.

Germany’s Unemployment Rate

The seasonally adjusted unified unemployment rate in Germany remained at 3.4% in July 2018, fell by 0.7% from the previous month to 1.47 million. Compared with July 2017, the unemployment rate fell by 9.3% from 1.62 million and the number of employed people increased by 0.2% from 41.6 million. This is the lowest unemployment rate since July 1980. People are more willing to spend money as unemployment falls and disposable income increase. This is a good time for ZTE enter the Germany market.

Demographic Analysis of Germany

According to the latest UN estimates, the current population of Germany is 82,293,457 (40 million male and 42 million female) as of September 10, 2018. 91.5% are German, 2.4% are Turkish and 6.1% from others. Among, the median age in Germany is 46.0 years and nearly 41% have been the 25-54 age group. It is the most age group in Germany and they are the target consumers for our new product. Because most of them are working, having established income and purchasing ability to buy our products.

Germany Top 10 Population Urban

Berlin is the capital of Germany and it has the most population in Germany (approach 3.56 million), other cities also have large population are Hamburg, Munich and Cologne, they are around 1.793 million, 1.504 million and 1.096 million here. It is the most populated city in Germany. We propose will make selling stores in these cities and become the product launch city for ZTE in Germany.

Telecommunications and Internet Usage and Infrastructure for Germany

Telecommunications Market in Germany
From the market shares held by each of the mobile service network operators in Germany, from 2015 to 2017. Market shares remained relatively even throughout mainly held by Telekom, Vodafone, Telefónica Germany in Germany, with each of the three companies laying claim to approximately a third of the market. We propose will cooperate with one of the companies and make some promotions activities for the latest tablets of ZTE. Because they have enough resources, such as customers based and personal relationship to help our development of the market.

Internet users in Germany

According to the current survey results in 2018, 80% of Germany’s share uses the local Internet. They mainly use smartphones to surf the Internet. Others include desktops, laptops, tablets and smartphones. It is higher than other European cities such as France and the UK. It creates a great environment for selling and promoting our new tablet products.

Internet Infrastructure in Germany
Germany’s broadband and next-generation access coverage is higher than the European average, and DSL is the most common technology for providing broadband access. The German strategy was adopted by the Federal Ministry of Transport and Digital Infrastructure in 2009 and revised in 2013 and will continue to be in force in 2018 as part of Germany’s 2014-2015 Digital Agenda (pdf).

In addition, the Federal Ministry of Economic Affairs and Energy (BMWI) released the Digital Strategy 2025 (Digital Strategy 2025), which is more focused on stimulating broadband access and use in different sectors. It will promote and spur the expansion of the German Gigabit network, including the continued supply of 3 billion euros per year for the promotion of broadband infrastructure since 2018. The strategy aims to build a high-performance (gigabit) broadband network in Germany by 2025.

The federal government has developed the German 5G Strategic Action Framework launched in the fall of 2016 to support network expansion and 5G application development in the early stages. Also, in February 2017, Deutsche Telekom announced plans to provide 5G in its network from 2020.

The Market Potential of Germany
Tablet user penetration rate in Germany

This statistic shows the penetration rate of tablets in Germany from 2014, with a forecast up to 2020. In 2017, Germany has about 57.6% population using tables, which higher 3.6% than 2016 and it predicts that will be increased to 61.9% the Germany population use tablets by 2020. It shows tablets have some level users in Germany and also has the market potential for ZTE company development.

Desktop, Mobile and Tablet Market Share

Compare by desktop, mobile and tablet market share, we can clearly see that the desktop is the most people using and the popular rate is highest in Germany, which has about 56.85% between this three product. The second would be mobile, which also have a 39.31% share. The fewest is the tablet, which only had about 6.83% of people using. It shows that more part of personnel have used desktop and mobile in their life, although the number of tablet users has increased every year, it is lower and a litter. Although it is difficult, we believe it is an opportunity for ZTE to the development and selling of our new tablet in Germany. If we succeed, we can get a high market share and loyalty customers here.

The Culture of Germany
When we do business in Germany, we must pay attention to the cultural differences between Germany and China. Whether it’s language, business habits or anything else, if we do not pay attention, there will be a lot of misunderstandings and unhappiness.

Planning Process
The Germans are very concerned about the planning process. The Germans emphasize the development of long-term plans, which are currently not affected by direct results, so they will plan for one or a quarter. Therefore, when we work with German companies such as local telecommunications companies and retailers, we should develop a long-term service plan. This will help them to further understand the development of our company and facilitate good communication with them.

Factual expression
The Germans think the business is serious. They always use a lot of facts and data to show their results. Therefore, when we show our products to the Germans, we should fully demonstrate the facts in the promotion, such as introducing product features and functions, rather than using hard selling techniques or unforgettable slogans, because this will make them feel that the products are too exaggerated and not honest.

Social Media
More than 75% of German residents use social media. It includes consumers of different kinds and classes. It will make it easier for us to reach target consumers and sell products directly to them.

Competitor Analysis in Germany

ZTE
ZPad Pro
Apple
iPad 9.7
Samsung Galasy Tab S4
Microsoft
Surface Pro
Camera
12 – megapixel
8 – megapixel
13 – megapixel
13 – megapixel
Capacity
64GB
128GB
256GB
32GB
128GB
8GB
32GB
64GB
128GB
128GB
256GB
Touch ID
?
?
?
X
5G
?
X
X
X
Simcard size
Nano-sim
Nano-sim
Nano-sim
X
Operating system
Android 8.0
IOS 11
Android 8.0
Windows 10
Warranty
1.5 years
1 year
1 year
1 year
Price
About 650 EUR
About 350 EUR
About 700 EUR
About 1800 EUR

Conclusion and Recommendation

In conclusion, after our surveying for Germany, the ZPad Pro surpasses German popular tablets, with the 5G network and longer warranty. We believe the business industry will rely on our ZPad Pro in improving their work efficiency.

However, we are definitely very difficult to attract customers since our brand scarcity reputation in Germany, so it is necessarily uptake effective promotional activities in Germany like display ZPad Pro in local computer exhibition and make the online advertisement to the target audience. We hope consumers will like and satisfied our product function after using our product and become the loyal customers for ZTE.

Reference

German geographic and demographic. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/gm.html

Germany: Gross domestic product (GDP). Retrieved from https://www.statista.com/statistics/295444/germany-gross-domestic-product/

Germany population . Retrieved from http://worldpopulationreview.com/countries/germany-population/

iPad price in Germany. Retrieved from https://everyi.com/global-ipod-iphone-ipad-prices/ipod-iphone-ipad-prices-germany-deutschland-de.html

Germany unemployment rate. Retrieved from https://countryeconomy.com/unemployment/germany

Germany GDP growth rate. Retrieved from https://tradingeconomics.com/germany/gdp-growth

Germany annual growth rate. Retrieved from https://tradingeconomics.com/germany/gdp-growth-annual

Germany cities with most population. Retrieved fromhttp://www.citymayors.com/gratis/german_topcities.html

Germany country information. Retrieved fromhttps://ec.europa.eu/digital-single-market/en/country-information-germany

Desktop, mobile, tablet market share in Germany. Retrieved from http://gs.statcounter.com/platform-market-share/desktop-mobile-tablet/germany

Understanding cultural difference.
Retrieved fromhttps://www.gvm.com.tw/article.html?id=6281

Germany economic culture.
Retrieved fromhttps://www.todaytranslations.com/zh/zai-deguo-zuoshengyi

Appendix