Jonathan Wong

CONSUMER SEGMENT & STRATEGY ANALYSIS

AgendaConsumer Segment Analysis

Marketing Strategy

Promotion campaigns

Recap

Consumer Segment Analysis

Mission & Capabilities• HTC is committed to driving the growth and capabilities of smartphone technology. Since its establishment, the company has developed strong R&D capabilities, pioneered many new designs and product innovations and launched state of the art PDA phones and smartphones for operators and distributors in the global telecoms industry. It has invested in a strong R&D team accounting for 25% of the total headcount and a world-class high-volume manufacturing facility, both based in Taiwan.

General Smartphone Analysis

The United States smartphone

market grew 41% year on year in

2010

Largest smartphone market (14.7

million units, 23% of global

shipments) in Q2 2010

Smartphone market grew 85% year over year in

2011.

HTC Perceptual Map

Perceptual map based on size, camera, keyboard, resolution, and processor.

Windows Phone 7 Popularity

• HTC 57% compared to Samsung 32%

Android Popularity

• HTC 53% compared to Motorola 30%

Android Popularity

• HTC has strong potential to advertise in Android and Windows apps.

Customer Value Analysis

• "Apple may have the market cornered on technology enthusiasts, but Motorola satisfies a much wider audience," said Jeni Lee Chapman, executive vice president of brand and communications consulting.

HTC would appeal more to Anti-Apple Fans andtechnology enthusiasts that are interested in Windows and Android operating systems.

Market Value Analysis

• Current market share to operating systems.

• HTC holds strength in both Android and Windows platforms.

Market Value Analysis

• HTC #3 cellular phone maker in the world behind Apple and Samsung

• Asia’s 2nd largest maker of smartphones• HTC Market Value Passes Nokia as Smartphones• HTC confirms that 70%of new handsets they produce will be Android powered• Android’s market share in the US is 36.4%, up 4 points from two

months ago.• Apple’s is flat over the period at 26%.• RIM dropped with a market share of 25.7% down 4.7 points.

• HTC’s sales doubled in one year. • May (1.42 billion U.S. dollars) last May ($656million).

Marketing Strategy•Primary Target Market•Smartphone users• Android • Windows mobile 7

•Touch Screen users•Technologically inclined users

•Competitive Advantage•First mover for many innovations•Maintained customer oriented product positioning

•Backed by multiple operating platfroms.

Marketing Strategy

•Positioning• Position products to high innovation and high functionality• Multimedia phones catered to higher resolution and • Business phones catered to email functionalities,

productivity tools, and networking connections.

•Marketing Methods• Social Media• Guerilla• Mobile

SWOT Analysis

Strengths

Pioneers in many innovations

High Growth Rate

Strong ROI Industry

Renown Customer Oriented Brand

Image

International Presence

Weakness

Subtle, unaggressive

marketing

Small variety of smartphones

Opportunities

International Growth

Multicarrier frequency band

phones

Unlocked bootloader means more interest in techie market

Threats

Strong competition from Apple, Motorolla,

Samsung

Unlocked bootloader might mean less support

from carriers

Patent war with Apple may hinder

R&D

Marketing Ideas

• Twitter trending/ hashtags. #WithMyHTC #OnMyHTC • Interactive HTC phone model, demonstrating 4G speeds.• Promote new phone features. EVO 3D, phone replica. With 3D tv.

• Magazine insert with popup promoting 3D technology (while maintaining YOU campaign)

• QR code that only HTC phones can access. (Exclusivity)• Promote HTC Sense lost phone capabilities through live webcam of phone and HTC Sense website where consumers may ring the phone, and enter lost and found message.

• Push HTC Tablets through online reviews and social media platforms with focus to features.

• Social Media App or Game (also mobile app) promoting products.

Sample Promotions CampaignGoal• To bring value of HTC Sense capabilities to consumers

through direct interaction.

Brief• Create a magazine page insert with audio device to

simulate a call.• When page is opened, the picture of phone will ring.• Instructions read to user that they may silence their call

by turning the phone over (turning the page over)• Once they turn the page over a picture of the back of the

phone will display with description of HTC Sense “Flip to Silence” capability.

Sample Promotions CampaignProcess• Using greeting card sound modules, record HTC’s

popular ringtone.• Insert into technology magazines and business

magazines.

Cost• $0.5-$1 per sound module.• Magazine ads depend on CPM from $1,000 to

$100,000+ (front page ad) Depends on publisher and company.

Benefits• Displays HTC Sense capabilities.• Reaches smartphone user target market.• Non-Generic ad placement with memorable result.

Sample Promotions Campaign

Front Back

Flip to Silence

Soundmodule

• The smartphone industry is growing at a fast rate (double).

• HTC is a rapidly growing company with a need to promote and brand their company.

• HTC holds strong market share with support from Android and Microsoft operating systems, and will need to maintain that lead through customer engagement.

• HTC could use Guerilla marketing techniques to bring awareness to brand.

RECAP