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A Study on the Differentiated Marketing Strategy of Shaanxi Unicom

Author: ZhangGuoDong
Tutor: LiangXueCheng
School: Northwestern University
Course: Business Administration
Keywords: Differentiation marketing strategy competitive advantage design market
CLC: F626
Type: Master's thesis
Year: 2009
Downloads: 416
Quote: 2
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Abstract


In Nov., 1995, establishment of Shaanxi branch of China United Telecommunications Corporation (Shaanxi Unicom) marked the disturbance of Shaanxi telecommunication (telecom) monopoly. Competition of Shaanxi telecom began from then on. Through all these years of development, Shaanxi Unicom has been a main competitive body. However, the telecom market is opening increasingly and the competition is more severe. Thus, integrated service operation has become a trend along with the upcoming time of 3rd generation telecom (3G). This brings about opportunities as well as challenges; and successes exist side by side with risks. It is a significant research subject that Shaanxi Unicom has to adapt to the trend strategically and work out a set of marketing strategies to expand the market share, increase the profit and establish its competitive advantage facing the diversified market, with other competitors possessing highly homogeneous products, high degree of information symmetry and almost identical marketing approaches.This paper, to solve the aforementioned problems, puts forward a solution, namely a set of differentiated marketing strategies for Shaanxi Unicom considering its success and failure in practicing marketing strategy by absorbing and learning existing management theoretical results and practical experience, and studying relevant foreign theories of corporate strategy especially those of corporate competitive strategy, market segmentation, service marketing and differentiated marketing as well as target market positioning and consumer behavior analytic theories since the 90s.First of all, this paper analyses deeply the current situation of Shaanxi Unicom and expounds the objectivity of differentiated marketing strategy from its external and internal environments and the prediction on Shaanxi’s telecom market trend. Then this paper, designing a differentiated marketing model for Shaanxi Unicom in such aspects as products, service, promotion and channel differentiation to offer a basis for such strategy. And it designs the differentiated strategy based on the characteristics of consumer demand. And the following are conclusions, meanwhile considering the characteristics of individualization, diversification and sharp increase in data service: The design differentiation of product focuses on the rich connotation of the brand and individualized value-added service; the design of service differentiation focuses on establishing the philosophy of service marketing and executing the reformation of operation flow to enhance the service quality; the design of promotion differentiation focuses on that of group client, student group, rural market; and the design differentiation focuses on escalating the current service quality and position exactly various channels so that the interaction and co-ordination between these channels are achieved and the management and control are strengthened. By designing the differentiated marketing strategy model, I know differentiation is a dynamic process. Therefore, to maintain the differentiated competitive advantage, it is crucial for Shaanxi Unicom to persist in keeping pace with the times and innovating unceasingly. Furthermore, human as the utmost resource, is the core of executing the differentiated strategy and making it run with high efficiency; and thus Shaanxi Unicom should establish a marketer incentive system applicable to the marketing strategy mode. Nevertheless, the key points which help to establish the competitive advantage lie in adaptation to the current diversified and segmented market, experiencing service design and executing full-service operation.

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