Marketing Mix of China Mobile and 7Ps (Updated 2024)

The Marketing mix of China Mobile analyses the 7Ps of China Mobile which includes the Product, Price, Place, Promotion, People, Physical Evidence and Process of China Mobile. China Mobile is a State-Owned company that provides Mobile Services in China. It started in 1997 with the name China Telecom, which was later changed to China Mobile. After a 1997 public offering that yielded capital of around USD 2.5 million and another massive Capital Investment of around USD 600 million in the year 2004, China Mobile currently trades in more than thirty-one (31) provinces in China. It primarily provides a Global System for Mobile Communications (GSM). It also generates income from voice-based services and value additions, e.g., Short Message Texts and mobile E-mail.

China Mobile faces competition from China Unicom and China Telecom, among other companies.

• China Unicom Limited is a state-controlled company that provides telecom services to the people of China. It has played a significant role in breaking monopoly, has led to improved services, and has promoted growth.
• China Telecommunication Corporation is regarded as a principal telecom enterprise in China with a vast fixed-line telephone network reaching rural China. The Chinese Central Government manages it and has a registered capital of 158 Billion Yuan.

In 2008, China Mobile had a market share of approximately 72 percent, with percent fibers slightly above 457 million. According to the report by Forbes Magazine, China Mobile was ranked 78th among peer companies operating under the most influential brands in the world.

About China Mobile

• Type: Mobile network operator
• Industry: Telecommunications
• Founded: 1997
• Founder: Ministry of Posts and Telecommunications of China
• Headquarters: Beijing, China
• Area served: Mainland China
• Key people: Yang Jie (Chairman) and Li Yixin (CEO)
• Number of employees: 2.5 million

China Mobile Product Strategy

The business strategy of China Mobile is that of “service and business leadership’’. For effective implementation of business strategies, management must be innovative in terms of business offerings by providing customized services.

The new Product Mix of China Mobile in 2024 is as follows (Source).

1. Mobile Communication Services: This is the primary category and includes voice calls, messaging (SMS, MMS), and various mobile data services. China Mobile offers these services to individual and corporate customers, with multiple plans tailored to different usage levels and needs.
2. Data Services: High-speed data services, including 4G LTE and, more recently, 5G services, are a significant part of China Mobile’s offerings. These services enable high-speed internet access and video streaming and support various mobile applications and services.
3. Value-Added Services: This category includes various services that add value to essential telecommunications services. It can consist of mobile music, video, gaming services, payment and banking services, and other digital content and applications designed to enhance the user experience.
4. Fixed-Line Services: China Mobile also offers fixed-line broadband and telephone services in some areas besides mobile services. This includes high-speed internet access through fiber-optic networks and traditional voice call services over fixed lines.
5. International Services: China Mobile provides international calling, roaming, and data services to customers traveling abroad. This also includes services tailored for international customers within China.
6. Enterprise Solutions: Tailored services for business customers, including corporate communication solutions, cloud services, big data analytics, and IoT (Internet of Things) solutions. These are designed to help businesses improve efficiency, enhance connectivity, and enable new digital business models.
7. Equipment Sales: China Mobile retails telecommunications equipment, including mobile phones, SIM cards, and accessories. This can include devices from various manufacturers, often bundled with mobile service plans.

China Mobile Place Strategy

The China Mobile product’s dedicated line services are well known in China’s major cities. In Guangdong, the market share is more than 70 percent, with 30 percent covered by competitors.

Many product awareness campaigns have been carried out in Henan and Sichuan regions to attract new customers. As a market leader in all Chinese Mobile Industry business verticals, CM also controls a significant market share in western and central China regions.

Regarding Corporate Citizenship, China Mobile supports development projects in Mainland China, with the focus slowly shifting to the countryside to make digital services to bridge the still-wide communication gap.

It is also important to note that China’s Mobile Roaming Services are covered in more than 230 countries, with the GPRS Roaming Services being covered in more than 160 countries.

Here’s China Mobile’s place strategy.

1. Nationwide Coverage: China Mobile has established an extensive network infrastructure that provides comprehensive coverage across all of China, including remote and rural areas. This widespread presence ensures accessibility to its services for most of the population, enhancing customer experience and satisfaction.
2. Retail Outlets and Service Centers: The company operates many retail outlets and service centers nationwide. These physical locations offer customer services, including sales, after-sales support, and personal consultation, making it convenient for customers to access services and resolve issues.
3. Online Platforms: China Mobile has developed robust online platforms, including a website and mobile apps, allowing customers to purchase plans, manage their accounts, and access customer service digitally. This digital presence complements its physical outlets, catering to the growing demand for online services.
4. Partnership Networks: Through partnerships with electronics retailers, e-commerce platforms, and other service providers, China Mobile expands its reach beyond its channels. These partnerships enable the company to offer products and services in various places where consumers shop and seek services.
5. International Expansion: China Mobile has strategically expanded its presence internationally, offering services to Chinese expatriates and businesses abroad and establishing roaming agreements with operators worldwide. This strategy ensures that its customers enjoy seamless service, even when traveling outside China.

China Mobile Pricing Strategy

China Mobile has different price strategies for voice services for each product. Each product has a price range that targets different customer levels, a monthly pay plan, calling fees, and its cost account for accountability.

Despite the stiff competition experienced in the Chinese market, pocket-friendly prices by China Mobile ensure its products always maintain a significant market share. The different products for different service policies, i.e., Go Tone, for business service through text messages and call forwarding M-Zone, for entertainment, have also led to different product pricing and mass marketing.

China Mobile employs a multifaceted pricing strategy designed to capture a broad spectrum of the market while fostering long-term customer loyalty and adapting to competitive pressures. This strategy reflects understanding its diverse customer base, technological advancements, and regulatory environment. Here’s a breakdown of the critical components of China Mobile’s pricing strategy.

1. Competitive Pricing: China Mobile strategically sets its prices by closely monitoring competitors’ pricing structures to ensure its offerings remain attractive. This involves offering comparable services at competitive rates, crucial in China’s highly competitive telecommunications market. The company frequently adjusts its pricing to maintain an edge over competitors and to attract price-sensitive customers.
2. Value-Based Pricing: Recognizing the varying needs of its customer segments, China Mobile employs value-based pricing for its more premium services. This approach sets prices based on the perceived value these services provide customers, such as higher data speeds, better network reliability, and exclusive content. This allows the company to capture higher value from customers willing to pay more for superior service or exclusive features.
3. Tiered Pricing Plans: China Mobile offers tiered pricing plans to cater to its customers’ diverse needs and usage patterns. These plans range from basic to premium, accommodating everything from minimal data users to heavy data consumers and businesses. This flexibility allows customers to select a plan that fits their budget and usage needs and enables China Mobile to segment the market effectively.
4. Promotional Pricing: China Mobile frequently uses promotional pricing strategies to attract and retain new customers. These can include discounts, bundle deals, and limited-time offers on plans and devices. Such promotions are especially prevalent during festive seasons, new service launches, or in response to competitive market shifts, helping to boost short-term sales and increase market share.
5. Psychological Pricing: The company also employs psychological pricing tactics to make its offerings more appealing. For instance, pricing plans just below a whole number (e.g., ¥99 instead of ¥100) can make them appear more affordable, encouraging uptake. This strategy is complemented by offering small increments in data or service enhancements at perceived bargain rates, enhancing the attractiveness of its higher-tier plans.

China Mobile Promotion Strategy

Advertisement is the main form of product promotion by China Mobile. For improved brand awareness and to attract more new customers, CM channels most of its resources in mobile marketing strategy to mass advertisement. With high frequency and quality HD advertisements, potential customers’ attention is mustered, and they will be less likely to forget about the advertised product.

Corporate social responsibility has been adopted as another marketing strategy for improving brand awareness, as most local people tend to be loyal to “one of their own” companies.

Some Recent Video ads and Print ads for China Mobile are:

China Mobile Limited – Media Centre > Video Gallery (chinamobileltd.com)

China Mobile People Strategy

In the service marketing mix, “People” play a critical role, especially for a company like China Mobile, where customer interaction and service delivery are crucial to business success. Here’s how the “People” aspect of customer analysis is integral to China Mobile’s service marketing strategy.

1. Highly Trained Staff: China Mobile invests significantly in training its staff to ensure they possess technical knowledge and customer service skills. This includes ongoing training programs to update employees on the latest technologies and service protocols. The company emphasizes staff competence to enhance customer interactions and deliver efficient service.
2. Customer Service Representatives: The company’s customer service representatives are vital to its people strategy. They are the front line in interacting with customers, handling inquiries, resolving issues, and providing support. China Mobile ensures that its representatives are accessible through multiple channels, including in-person, phone, online, and social media platforms, making it easy for customers to reach out for assistance.
3. Technical Support Teams: Given the technical nature of telecommunications services, China Mobile has specialized technical support teams. These teams are responsible for maintaining network infrastructure, handling technical issues, and ensuring high service quality. Their expertise is crucial for minimizing downtimes and ensuring a seamless customer service experience.
4. Sales Force: The sales personnel at China Mobile are trained not just to sell but to understand customer needs and offer solutions that best match those needs. This approach helps in building customer relationships and loyalty. By effectively communicating the value of China Mobile’s services, the sales force plays a crucial role in customer acquisition and retention.
5. Leadership and Vision: The leadership team at China Mobile sets the tone for the company’s culture and customer service ethos. Their vision for innovation, customer satisfaction, and corporate responsibility guides the company’s strategies and operations. Leadership’s commitment to quality service and ethical business practices influences the organization, from top management to frontline employees.
6. Diverse Workforce: China Mobile values diversity, recognizing that a diverse team can better serve a diverse customer base. This includes not just demographic diversity but also diversity in skills, perspectives, and experiences. By fostering an inclusive work environment, China Mobile aims to leverage the strengths of its employees to innovate and enhance its service offerings.

China Mobile Process Strategy

The “Process” aspect of the service marketing mix refers to the methods and procedures a company uses to deliver its services efficiently and effectively to customers. For China Mobile, as a leading telecommunications provider, the process component of the distribution strategy is crucial for ensuring customer satisfaction and maintaining operational excellence. Here’s an overview of key elements in China Mobile’s process strategy.

1. Customer Onboarding: China Mobile has streamlined its onboarding process to make it as smooth and hassle-free as possible. This includes easy sign-up procedures for new services, clear guidance on plan options, and quick activation of services. The onboarding process is designed to ensure that customers can use their services with minimal delay and understand the features and benefits of their chosen plans.
2. Billing and Payment Systems: The company utilizes an efficient and user-friendly billing system, offering customers various convenient payment options such as online payments, auto-debit services, and physical payment locations. The transparency and flexibility in billing and payment enhance customer convenience and trust in the company’s services.
3. Service Delivery: At the heart of China Mobile’s process strategy is its commitment to reliable and continuous service delivery. This involves sophisticated network management and monitoring systems to ensure network availability, quality of service, and quick restoration in case of outages. The company’s investment in technology infrastructure supports its ability to deliver high-quality telecommunications services consistently.
4. Customer Service and Support: China Mobile has established a comprehensive customer service and support framework that includes call centers, online support, and in-store assistance. This multi-channel approach ensures that customers can receive help and resolve issues through their preferred mode of communication. The company reduces response times and improves resolution rates to enhance customer satisfaction.
5. Feedback and Continuous Improvement: China Mobile strongly emphasizes gathering customer feedback through surveys, social media, and direct feedback channels. This feedback is integral to continuous improvement processes, where the company identifies areas for enhancement in its service delivery and customer experience. Regular analysis of customer feedback helps in fine-tuning processes and introducing innovations.
6. Technology and Innovation: With technological advancements, China Mobile continuously upgrades its processes with the latest technology. This includes adopting artificial intelligence and machine learning for network optimization, customer service chatbots, and data analytics for personalized service offerings. By leveraging technology, the company aims to improve efficiency, reduce costs, and offer more tailored services to its customers.

China Mobile Physical Evidence Strategy

In the service marketing mix context, “Physical Evidence” refers to the tangible aspects that customers can see, touch, or feel, which help them evaluate the service before they purchase or during the service delivery. Physical evidence significantly shapes customer perceptions and experiences for a telecommunications company like China Mobile. Here’s how China Mobile leverages physical evidence in its service marketing mix:

1. Branding and Corporate Identity: China Mobile’s branding elements, such as its logo, color scheme, and overall corporate identity, are consistently applied across all customer touchpoints. These elements serve as visual cues that reinforce brand recognition and trust. From storefronts to marketing materials and online platforms, cohesive branding helps convey professionalism and reliability.
2. Retail Stores and Service Centers: The design and layout of China Mobile’s retail stores and service centers are crucial forms of physical evidence. These spaces are designed to be welcoming and customer-friendly, facilitating easy navigation and interaction with products and services. The physical appearance of these locations and the branding within them contribute to the overall customer experience and perception of the brand’s quality.
3. Equipment and Devices: The physical quality and appearance of the telecommunications equipment and devices offered by China Mobile, such as mobile phones, SIM cards, and routers, also serve as physical evidence. High-quality, well-designed equipment satisfies functional needs and enhances the perceived value of China Mobile’s services.
4. Website and Mobile App: Even though they are digital, the website and mobile app of China Mobile function as physical evidence by providing a tangible interface for customers to interact with the brand. These digital platforms’ usability, design, and functionality reflect the company’s attention to detail and commitment to customer satisfaction.
5. Customer Communications: Printed and digital communications, including bills, service notifications, and promotional materials, are part of the physical evidence that affects customer perceptions. These communications’ clarity, quality, and design can significantly impact customer trust and satisfaction by ensuring transparency and reinforcing brand values.
6. Service Vehicles and Equipment: For a telecommunications company, service vehicles, and on-site equipment used for installation and maintenance are visible signs of the company’s service capability and efficiency. The branding and condition of these vehicles and equipment can enhance the perception of reliability and professionalism.
7. Customer Testimonials and Reviews: While not physical in the traditional sense, published customer testimonials and reviews prove the company’s service quality and customer satisfaction. By showcasing these on their platforms, China Mobile can provide prospective customers with proof of their service excellence and reliability.

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