1. FASHION AND APPAREL MARKETTING (FST 4005)
Assignment 2
4P’s of Samsung
Submitted By,
N Saranya
16BFT1006
2. About Samsung:
SAMSUNG is a South Korean company founded by Byung-Chull Lee in 1938. The company
started as a trading company and gradually became a multinational conglomerate through many
acquisitions and mergers. Samsung Electronics Industry Co Ltd was established in 1969. Samsung has
more than 200 subsidiaries across the world. The brand’s vision is to be in the global top 5 by 2020
and it believes that value creation and innovation will lead it to the top. The company also inspires to
be in the top 10 world’s best workplaces. The company offers Mobile devices, Televisions, Home
Appliances to the consumers.
4P’s:
Product:
Samsung invests a lot in research and development to deliver the best products to its customers.
Samsung offers a wide range of products in different product categories. The diverse offerings come
under the products of Samsung marketing mix. The products can be classified into five categories and
they are:
Mobile devices- Smartphones like Samsung Galaxy series, Tablets, Wearables, Other Phones,
Accessories
Samsung Home Appliances- Refrigerators, Washing Machines, Cooking appliances, Air conditioners,
Vacuum cleaners
TV/AV – Samsung Television, Audio and Video, Accessories
Information Technology - Printer and Multifunction, Monitor
Memory/Storage- SSD, Portable SSD, Memory cards, USB Flash drives
Price:
Samsung is a market leader in smart phones and is a dominant player in market for home appliances.
It uses two pricing schemes which are:
Skimming Price –Samsung uses skimming price policy. For instance, when Samsung launches new
products with different variants of storage capacity, it prices the product higher. But when other
competitors launch a smartphone with identical features, Samsung lowers the price and easily
prevents the reduction of its market share due to the launch of the competitor.
Competitive Pricing –This pricing strategy is a part of Samsung marketing strategy. Samsung has not
succeeded in becoming the leader in other product categories. Samsung is a trustworthy brand, but
in the ‘home appliances’ product-category, it hasn’t surpassed LG yet. To prevent the flanking attacks
from its competitors in the market it’s essential for Samsung to use competitive pricing. Also, Samsung
is a not a first mover in these product categories and thus it has to defend its position in the market.
All these help in understanding the pricing strategy in the Samsung marketing mix.
3. Place:
Samsung sells directly to the retailers and service dealers. And due to this strategy, only service dealers
are responsible for the corporate sales. Retailers dealing in technology generally have to include
Samsung in their offerings, because of the brand being world-famous. The distribution is the strength
for Samsung. Samsung also distributes its products using a single distribution company in a particular
location that further distributes the products to other locations.
Promotion:
Promotion is a strong pillar in the marketing mix of the company. Samsung believes that advertising
the best form of promotion to engage potential consumers and position the brand. Samsung promotes
new products using newspapers and digital media. To take the advantage of the huge number of
followers of celebrities, the brand has invited many celebrities to be the brand ambassadors and
promote the product. Big placard, hoarding and posters are put up on highways.
Besides advertising, Samsung also uses different promotional tactics to make customers buy the
product. Samsung is mostly famous for its product quality and user experience but Samsung is also
known for being a giant in sponsoring events. Samsung also sponsors major events. Samsung offers
heavy discounts during national festivals. This concludes the Samsung marketing mix analysis.
