2. GEMS OUR OWN ENGLISH HIGH SCHOOL,
DUBAI
TANZEEL ABDUL JABBAR
XI – J
2015 – 2016
Marketing project - Title:
“Survey of demand for selected products available under
different brand names through the household enquiries in the
local area .”
3. TOPIC
“Survey of demand for selected products available
under different brand names through the household
enquiries in the local area .”
5. APPLE INC.
Apple Inc. is an American multinational technology company that designs,
develops, and sells consumer electronics, computer software, and online
services.
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald
Wayne on April 1, 1976.
It was incorporated as Apple Computer, Inc. on January 3, 1977, and
was renamed as Apple Inc. on January 9, 2007.
TIM COOK
CEO
APPLE INC.
LOGO
CUPERTINO, CALIFORNIA
HEADQUARTER
6. SAMSUNG
Samsung is a South Korean multinational company headquartered in Samsung
Town, Seoul.
It was founded by Lee Byung-Chul in 1938 as a trading company with forty
employees. They, later, diversified into areas including electronics, food
processing, textiles, insurance and shipbuilding.
Samsung’s revenue was equal to 17% of the entire South Korea’s GDP.
LEE KUN HEE
CEO
SAMSUNG
LOGO
SAMSUNG TOWN,
SEOUL
HEADQUARTER
7. Growth profile of Apple Inc.
1970s to 1990s -
Introduction of :-
Apple I, II and III (and
its series)
Macintosh and its
series
Apple fax modem
Quadra and its series
PowerBook and its
series
Newton Message Pad
iMac, iBook and
2000s - Introduction
of :-
• iPod and its series
(Nano, shuffle,
mini)
• MacBook and its
series (started in
2006)
• Apple TV (2007)
• iPhone 1st Gen
(2007)
• iPhone 3G and its
series (2008-09)
2010s - Introduction of
:-
• iPad and its series
(2010-15)
• iPhone 4 and its
series (2010-13)
• iPhone 5 and its
series (2012-14)
• iPad mini (2012)
• iPhone 6 and 6 plus
(2014)
• iPhone 6S and 6S
plus (2015)
#1 World's Most Valuable Brands (FORBES 2015 RANKING)
8. Growth profile of Samsung
1999
Developed the world's first 3D LCD Monitor
Developed wireless Internet phone (Smartphone)
2000
TV Phone and Watch Phone Make Guinness Book of World Records
2001
Ranked No. 1 of world's Top 100 IT Companies by BusinessWeek
Develops World's first 40 inch LCD
2002
Launches slimmest TV in the world
Launch of color mobile phones in which the new concept LCD is introduced
2004
Released 46" LCD TV for the first time in the world
2005
Released the world's first 7 mega pixel camera phone
Developed the first-ever speech recognition phone
2008
Samsung takes No. 1 spot in U.S. cellphone market
2009
Announced its "Blue Earth" solar-powered phone
#7 World's Most Valuable Brands (FORBES 2015 RANKING)
9. Financial profile of Apple Inc.
NET WORTH :- $741.8 Billion (according to Forbes 2015 data)
MARKET SHARE :- 41.4% (according to Forbes 2014 data)
10. Financial Profile of Samsung
NET WORTH :- $199.4 Billion (according to Forbes 2015 data)
MARKET SHARE :- 37% (according to Forbes 2014 data)
11. Market share (%) of Smartphone Subscribers
Market Segment
Apple Inc. Samsung
Middle - High Income group Mixed economy
12. Marketing Mix
What is a marketing mix?
The marketing mix is a
business tool used in
marketing and by marketers.
The marketing mix is often
crucial when determining a
product or brand's offer, and is
often associated with the four
P's:
Price
Product
Promotion
Place
13. Product mix of Apple Inc.
Apple Inc. has continued to expand its product mix. This component of the
marketing mix determines the outputs of the business organization.
In Apple’s case, the following are the main product lines:
Mac
iPad
iPod
iPhone
Apple TV
Apple Watch
Software
These Apple products currently available in the market show the firm’s
diversification in this component of the marketing mix.
This product mix shows that Apple’s marketing mix is extensive in terms of
product variety to address customers’ needs in different areas of their
lives.
14.
15. Product Mix of Samsung
In Samsung’s case, the following are the main product lines:
Tablets (Galaxy, Pro etc.)
Smart Phones (S, Note, Grand, Core etc.)
Refrigerator
AC (Max, Crystal etc.)
Washing Machine and other home appliances
Personal Computer
Camera
TV and Home Theatre
These Samsung products currently available in the market show the firm’s
diversification in this component of the marketing mix.
This product mix shows that Samsung’s marketing mix is also extensive in terms
of product variety and product range to address customers’ needs in different
areas of their lives.
16.
17. Price mix of Apple Inc.
Apple uses a premium pricing strategy (image or prestige pricing). It is
similar to the skimming method.
In this component of the marketing mix, the emphasis is on how prices
represent the company and its products, while meeting consumer
expectations.
In Apple’s case, the premium pricing strategy involves relatively high
prices.
This pricing strategy helps maintain the high-end image of the company
and its products.
Another effect of this pricing strategy is that Apple products attract a
smaller market share composed of people from the middle and upper
classes.
Thus, Apple’s price mix is aligned to the company’s premium product
18.
19. Price Mix of Samsung
In this component of the marketing mix, the emphasis is on how prices
represent the company and its products, while meeting consumer
expectations.
Because of its different product categories, Samsung uses various pricing
strategies. They usually use skimming and competitive pricing strategies.
In Samsung’s case, the skimming pricing strategy involves getting a high
value in the start before competitors catch up.
Samsung uses competitive pricing strategy for it’s other products because
they face more competition in areas like TVs, cameras and home
appliances.
20.
21. Place mix of Apple Inc.
The company uses a selective distribution strategy.
The following places are included in Apple’s distribution strategy:
Apple Stores (most visible places that sell the company’s products)
Online Apple Store and App Store (also amazon.com, ebay)
Authorized retailers (Walmart, Target, Best Buy, etc)
Telecom companies (country’s top official telecom companies)
Fulfilment services from companies like Amazon.com and eBay, through which
third parties sell Apple products online.
Thus, Apple’s place mix is comprehensive in exploiting different types of
online and non-online distribution channels.
22.
23. Place Mix of Samsung
The company uses a intense distribution concept.
It includes 3 segments : Sales and service dealers, modern retail and
distributors.
Sales and service dealers handle key accounts and also open exclusive
Samsung showrooms.
Examples of Retailers : Croma, Hypercity, Vijay Sales etc.
Their distribution network is very interesting. Samsung has a single distributor
through whom they distribute throughout a territory. (In Mumbai,. Samsung
has SSK distributors who distribute all their products.)
24.
25. Promotion mix of Apple Inc.
Apple’s marketing mix includes promotion activities that emphasize the
premium image and quality of the firm’s products.
The promotional mix supports business position in reaching more target
buyers.
In Apple’s case, this component of promotion mix includes the following
elements:
Advertising (through the company’s website, Apple Stores, and through other firms,
such as technology news sites)
Personal Selling (in the form of Apple Store employees who provide product-specific
information in the aim of convincing store visitors to make a purchase)
Sales Promotion (exchange offers, modified payment plans, etc.)
Public Relations (Apple Events - leaks of new product features, press releases, and
exclusive interviews are carefully implemented to maximize positive publicity)
Thus, Apple has mastered the promotion component of its marketing mix.
26.
27. Promotion Mix of Samsung
Samsung believes in pulling the customer to themselves through advertising
and pushing the product to the customer through sales promotion.
The promotional mix supports business position in reaching more target
buyers.
In Samsung’s case, this component of promotion mix includes the following
elements:
Advertising (through the company’s website, Samsung Stores, and through other
firms, such as technology news sites)
Personal Selling (in the form of Samsung employees who provide product-specific
information in the aim of convincing store visitors to make a purchase)
Sales Promotion (exchange offers, modified payment plans, etc.)
30. Strengths Analysis
APPLE INC. SAMSUNG
Brand reputation
Retail stores
Strong marketing and advertising
teams
Leading innovator in mobile
device technology
Strong financial performance
Innovation and design
Focus on environment
Low production costs
Largest share in mobile phones
and 2nd place in smartphones
sales
Ability to market the brand
Excellence in engineering and
producing hardware parts and
consumer electronics
31. Weaknesses Analysis
APPLE INC. SAMSUNG
High price
Incompatibility with different OS
Defects of new products
Patent infringements
Decreasing market share
Patent infringement
Too low profit margin
Main competitors are also largest
buyers
Lack its own OS and software
Focus on too many products
32. Opportunities Analysis
APPLE INC. SAMSUNG
Strong growth of mobile
advertising market
Increasing demand for cloud
based services
High demand
Growth of tablet and smartphone
markets
Obtaining patents through
acquisitions
Growing India’s smartphone
market
Growing mobile advertising
industry
Growing demand for quality
application processors
Growth of tablets market
Obtaining patents through
acquisitions
33. Threats Analysis
APPLE INC. SAMSUNG
Rapid technological change
Android OS growth
Competitors moves in online
music market
Rising pay levels
Price pressure from Samsung
over key components
Saturated smartphone markets in
developed countries
Rapid technological change
Declining margins on hardware
production
Breached patents
Price wars
35. MARKET SURVEY
Market research/survey is any organized effort to gather information about
target markets or customers. It is a very important component of business
strategy.
Market research provides important information to identify and analyse the
market need, market size and competition.
Surveys have been used in various fields of research, such as sociology,
marketing research, politics and psychology.
METHODOLOGY : QUESTIONNARE
In survey research, a questionnaire is an instrument that is comprised of a set
of questions to be asked to the participants or respondents of the survey.
Sir Francis Galton, an English polymath, introduced the use of the
questionnaire in surveys.
Questionnaires usually ask questions that elicit ideas and behaviours,
preferences, traits, attitudes and facts.
36. QUESTIONNAIRE
1. Which brand has a wide range and variety in terms of their products
sold?
a) Apple
b) Samsung
c) Others
2. Which brand do you think has a better design?
a) Apple
b) Samsung
c) Others
3. In the following brands which is more reasonably priced?
a) Apple
b) Samsung
c) Others
4. Which brand has a flexible pricing policy?
a) Apple
b) Samsung
c) Others
37. 5. Which among the given brand has a wider availability?
a) Apple
b) Samsung
c) Others
6. Of these brands, which one has a better global network?
a) Apple
b) Samsung
c) Others
7. Which of these brands adopt intense advertising and promotion activities?
a) Apple
b) Samsung
c) Others
8. Among these brands, which one is popular (more aware) to all?
a) Apple
b) Samsung
c) Others
44. Social Responsibility of Apple Inc.
Apple Inc. creates programs that educate and empower workers, and help preserve
the environment’s precious resources for future generations.
Around the globe, Apple employees are united in bringing equality, human rights,
and respect for the environment to the deepest layers of our supply chain.
Apple is committed to providing and expanding educational opportunities for workers
in our supply chain. All workers have taken advantage of Supplier Employee
Education and Development (SEED) program, which offers free courses ranging
from economics to English.
Apple demands that suppliers treat workers fairly and ethically at all times. Apple
demonstrates the highest commitment to protecting workers’ rights. This includes
abiding by a maximum 60-hour workweek.
Apple insists on safe and healthy facilities for all workers. Worker safety is of
paramount importance. Apple has found that well-trained managers and employees
are essential to the process. In 2014, participants in the Environment, Health, and
Safety (EHS) Academy launched more than 870 projects in their facilities to improve
working conditions.
Apple products and processes are of the highest environmental standards. Apple is
doing their part to conserve the planet, including half a billion gallons of freshwater,
through Clean Water Program and by educating managers on air pollution control
45. Social Responsibility of Samsung
Samsung Engineering seeks to improve conditions around the world through
our social contribution programs. Company-wide, they utilize their strengths
and resources to benefit local communities and help children and families in
need. Individually, their employees are encouraged to take part in the many
volunteer programs offered by the company.
There are various programs :
Building libraries
Book donation
Technical school
Donation programs
Voluntary services
Community outreach program
Green awards for youth (environmental program)
47. Awards – Apple Inc.
Apple won eight ‘IF Product Design Awards’ at the CeBIT 2008 show in
Hanover, Germany.
Apple’s iPhone wins J.D. Power Award.
No.1 in Fortune Magazine’s ‘Most Admired Companies” poll
Apple iPad wins both the gadget of the year and reader’s gadget of the
year in the 2010 Stuff Gadget Awards.
The prestigious Black Pencil D&AD Awards, for the design of the iMac
and the iPhone.
iPhone 4 has won the best Best Mobile Device Awards at Barcelona.
48. Awards – Apple Inc.
Apple 3G iPhone has won 4 categories of competition British
Technology Awards 2008:
Innovation of the Year- apple 3G iPhone.
The most stylish technology of the year- Apple 3G iPhone
The best mobile phone year – apple 3G iPhone.
The Gadget- Apple 3G iPhone
Best Music Technology : Apple iTunes
iPhone 4 wins best mobile Device at MWC 2011.
50. Awards - Samsung
Energy Star Top Pledge Driver recognition(Apr. 2013)
- Ranked 3rd in the 2012-2013 change the world, star with energystar
campaign in U.S.A.
Energy Saving Contribution Award (May. 2013)
- Samsung China received awards for four consecutive years in China.
Salt Lake City Recycling Recognition(Apr. 2013)
- Recognition for supporting recycling activities in U.S.A.
China top green company (Apr. 2013)
- Recognition for green management in China
Energy Star Award (Mar. 2013)
- Selected as highest energy star award (Partner of the Year - Sustained
Excellence)
IDEA Award(May. 2013)
- Ranked Gold level for 100% recyclable printer (Origami) in U.S.A.
51. Awards - Samsung
ENERGY STAR Partner of the Year Award - Sustained Excellence
- Highest ENERGY STAR honor for outstanding leadership and
commitment to energy efficiency
ENERGY STAR Partner of the Year - Climate Communications
- Recognition for excellent work in communicating the importance of
preventing climate change through energy efficiency
Call2Recycle Award
- Acknowledgment for continued commitment to helping keep batteries
out of the waste stream
53. CONCLUSION
PRODUCT MIX: Samsung has more range and variety than Apple
because Samsung also deals with home appliances along with
smartphones, TV, etc. while Apple deals with only limited variety
and range of products. Apple has sleek and compact design which
is more stylish when compared to Samsung, hence Apple has a
better design.
PRICE MIX: Samsung is sold at a much reasonable price than
apple because they use mostly Competitive Methods. Even
though the prices are high initially (skimming method), it reduces
drastically which makes it reasonable. Samsung has more
Flexibility in pricing than Apple because they adopt many pricing
policies like skimming and competitive methods.
54. CONCLUSION
PLACE MIX: Samsung is more widely available than apple
because it has adopted intense distribution concept, where their
products are made available for all income groups. Apple has
more global network than Samsung. Apple uses selective
distribution concept. It has a wider reach and acceptance globally.
This is purely due to the brand image apple has.
PROMOTION MIX: Samsung does more of advertisement and
promotional activities because it has to attract more customers
due to its lower brand image than Apple. While in terms of
popularity/awareness Apple has an edge over Samsung due to its
high brand image. It is most commonly used by famous
personalities and the launch of its new products is always a big
news.