Samsung: One of their segments are the tech savvy people, who usually like to customize their phone more freely to their preferences. This freedom of customization does not just mean the esthetic look of their phones, but the ones who need to customize on a more advanced level, with their profession e.g. taking into considerations. Apple: While Apple is focusing more on the once who likes everything more user-friendly and simple, and enhancing performance towards the music and gamer enthusiast, as well as the media, design and creative people.
These two points also shows the differentiation between the two brands as iPhone e.g. is focus more on user experience and prefers form over function. Based on this, we can say that they are more innovative. Samsung on the other hand prefers function over form, as I mentioned about the customizability, while they also follow a production formula based on try and fail/test. This can reflect over the different cultures these companies originate from (American vs. Korean)
What is common for both companies when it comes to their target markets, is that they target very same groups of people. Their primary target group is the upper middle class professionals, who can a device that will optimize their communication and schedules in a busy lifestyle. Both also targets the high school/ college student who seek for a multifunctional and portable device with internet connections for both social media and school materials.
It is no doubt that Apple has positioned them self as a premium brand in the mind of the customers, thanks to their high prices, which also reflects on their the quality. They have also targeted less price sensitive customers, also based in the differentiation as I mentioned earlier. A lot of apple’s customer feels that it is trendy and exciting to have an iPhone also based on the design of the of the phone itself.
Samsung also are position themselves as a brand with high quality, but are trying to involve everyone to buy their product based on their wide range products, which again leads to a wider range of price as well, based on the product. Samsung is focusing more on the features on the phone, than the esthetic looks, even though it is worth mentioning that their later models have indicated more focus on design than from the past.
The latest Samsung Galaxy product line consist of several more products, but these 4 are the top models for each of their categories, whereas; the two largest phones S5 and Note 4 are the most expensive once, with the best specifications and building materials, while the S5 mini falls into a mid-range category and Galaxy Ace 4 into the Mid-range/low category, based on price, specs and quality.
The 4 latest releases of the iPhones is the 6, 6 Plus, 5S and 5C. The quality and the form of the products are pretty much the same, but the 5C was made with a cheaper plastic and was not fully spec'd as the three premium version. It was made in a period where Apple had lost market share, to try to target the ones whore were not willing to pay the high price for the premium products and still experience the same or similar user interface. The 5C and 5S is the same in size, while the 6 is bigger than those two and the 6 Plus is their biggest phone in their product line.
When it comes to the pricing strategies of Samsung, we can see that they aren’t using one strategy, but several integrated. We can see that they are also using skimming pricing as they tend to set a high price and then lower it as, especially the high-end products are ending their life-cycles. Since Samsung is not the first vendor to release their new top models, competition pricing is also used to match the early birds top models as HTC, as their prices are very similar.
It is pretty obvious that Apple, in general, is using a price skimming strategy, as they tend to set very high prices (since they are targeting high income customers) and then sets the price down after a period, and especially when they launch new product.
Both vendors use electronic retailers
Samsung spent $364.03 million marketing phones in 2013, down from 2012, but still impressive. Apple spent $350.9 million on advertising in 2013.
Samsung prior to 2012 revolved around the channel and offline media. Only four percent of the marketing mix in the first half of 2011 was digital. As far as media buys went, 86 percent of them were offline in the first half of 2011. The company then moved to "own our brand" and went digital. The media mix quickly went to 40 percent online. Meanwhile, the company's Next Big Thing ads — the ones mocking people who stand in Apple lines — launched and gained buzz. As a result, Samsung gained more efficiency in getting its brand recognized. Samsung in its presentation noted that the ads depositioned Apple somewhat. A similar strategy for Samsung's Galaxy Note Super Bowl ad was launched. Samsung reveals impact stats around Facebook fans, Twitter followers, and YouTube views.
Apple’s main marketing strategies are to create brand loyalty and excitementtowards the brand. With these advertising goals, Apple aims to embed an image in the consumer’s mind of the “Apple lifestyle”. Their commercials are simple, yet elegant, and displays this “Apple lifestyle” to the consumer. HomeAs we all know, for the past few years Samsung and Apple have both delivered top of the line smartphones, but which of these two greats win the all important marketing battle? Overview We all love our tech and let’s be honest, there are only two brands to choose from at this point in time, Samsung or Apple. As we know, Samsung just released their brand new products, the Note 3 as well as their smartwatch called the Gear, and a few days later Apple released their new iPhone 5S and their cheaper version of the iPhone, called the 5C. Both of these product launches went hand-in-hand with huge marketing expenditure to create an overall awareness for these products. Apple’s Marketing Strategy: Apple Inc. has always aimed to be ahead of competition with technology – always trying to improve their products by putting emphasis on R&D, for example producing the very first phone with a fingerprint reader, as well as marketing communication strategies. Apple’s main marketing strategies are to create brand loyalty and excitementtowards the brand. With these advertising goals, Apple aims to embed an image in the consumer’s mind of the “Apple lifestyle”. Their commercials are simple, yet elegant, and displays this “Apple lifestyle” to the consumer.
Another way in which Apple enhances the image of the “Apple lifestyle” is throughproduct placement in movies. In August last year The Hollywood Reporter stated that Apple products have appeared in almost 30% of films from 2001 to 2011. From 2008 to 2011 Apple has reportedly spent $647 million on iPhone placement in movies and continues to do so, as they believe that this enhances the image of the “Apple lifestyle”
Smartphone industry applevs samsung
INDUSTRY Halil Yildirim
TABLE OF CONTENT
Changes and future of the industry
South Korean, founded in 1938
Wide range of product
Smartphones, Tablets, Laptops, TV’s,
Cameras, Office electronics (Printers,
Hard Disks etc.), Home electronics
(Refrigerators, microwaves etc.)
#1 in the smartphone market
American, founded in 1976
More narrow range of product
Smartphones, Tablets, Laptops,
Computer, MP3 player, digital media
#2 in the smartphone market Several
Development in market shares
Apple 18.8% (2011) to 11.7% (2014)
Samsung 17% (2011) to 24.9% (2014)
Product launch parallels (top models):
* 2 in Q3 2014
Apple 1 1 1 0*
2 3 4 4
Own chip manufacturer
Control on manufacturing process
Strict Software standards
Closed eco system
Many suppliers (Hon Hai Precision, Pegatron Corp.)
Bring products to the market faster
Able to rapid change
Largest tech. Company because of the revenue
Tradeshows, Flyers and Postcards
Workshops & Events
Spent $ 14 billion on advertising
Cultivate an air of secrecy and
intrigue to fuel speculation and
Create the illusion of scarcity to
Focus on a "friendly" customer
Wow customers through design
Create a passionate brand
community of fans who identity
with Apple's brand values
STRATEGIESMARKETING SPENDING OF APPLE AND
Below 42% of iPhone owners had owned an iPhone previously
While 43% of Samsung owners had previously owned an Android phone.
Apple does a better job of getting Android users to convert to iOS with about 20% of its customers coming from
Android vs. only 7% of Samsung customers coming from iOS.
Apple has a bit higher retention rate at 42% vs. 38% for Samsung. Apple does a better job of switching Samsung
customers at 19% vs. Samsung only converting 7% of its users from Apple.
RECOMMENDATION FOR SAMSUNG
-Increasing Brand Loyalty. Not too focused on the features.
-Creating own Ecosystem in order to differentiate itself from other Android Phones. It will increase its brand
loyalty as well
-Marketing Activities of Samsung is quite promising both in digital and conventional media. (Buzz
Marketing, Media Marketing, Sponsortships)
--Increasing the Loyalty! (Low compared to Apple) It’s more about positioning and bonding activities than
simply adverising via Celebrities or Media. The Message , Contend is more important than the popularity
-Ie: ‘Celebrity Packed Selfie’ on Oscar Show with Galaxy SIII
--Company should more rely on TV Shows, appearence on the movies etc..
-- Instead of following position , company should lead both in communication and production* (“The Next
Big Thing is here”, ‘The Next Big Thing’
-Apple’s main marketing strategies- create brand loyalty and excitement
-“Apple lifestyle”. Their commercials are simple, yet elegant, and displays this “Apple lifestyle”
to the consumer.
-product placement in movies
- 30% of films from 2001 to 2011. From 2008 to 2011 Apple has reportedly spent $647
million on iPhone placement in movies
--Need to change its marketing strategy from overlaying on emotional evocative ads.
--Using of Buzz Marketin, using of Celebrities