Samsung (Report)

Samsung
-Multinational Corporation
Submitted To:
Qudrat-E-Elahi Asif
Dept. Of Marketing and International Business
North South University
Submitted By:
Name Id
Ekram Islam 1431107630
Ashraf Ali Parvez 1430979630
Md. Tuhin Talukdar 1430869030
Md. Arif Kamal 1430595030
Md. Radwan Hossain 1430416630

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Group 6
Contents:
(a) Executive Summery
(b) Current Situation Analysis
(c) Companys’ Marketing Objectives
(d) Swot Analysis
(e) Marketing Strategy
(f) Action, plan and program
(g) Conclusion

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Executive Summery
This paper examines Samsung Electronics successful marketing strategy in the mobile phone business. It
examines its early efforts at developing a competitive product in the domestic market, its globalization
strategies, and some of the key challenges it faces today. The paper provide insights into how a late-comer to an
industry can overcome certain disadvantages and successfully position itself as a widely respected and
successful brand.
This report will focus solely on the Samsung mobile-phone industry, given that the global market, both
in terms of the major players involved and the types of mobile devices that are sold in global market.
The smartphone industry consists of all companies that manufacture and sell smartphones to consumers.
This industry is a massive, fast paced environment where products are constantly updating and changing. It is
characterized by quickly evolving technology and designs, short product life cycles, aggressive pricing, rapid
imitation of product and technological advancements, and highly price-sensitive consumers between the ages of
18-49.
The areas of opportunity include cloud computing, personal health management, the creation of less
expensive devices and the development of new operating systems. The major threats in the market include rapid
technological changes, the decline of the new user market base, a wide variety of imitations and substations and
numerous barriers to entry. While there are numerous barriers to entry, the rapid growth of the market provides
opportunities for companies that have sufficient capital and thriving innovation to enter the market

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Current Situation Analysis
Company Overview
Samsung is a South Korean multinational Conglomerate headquartered in Samsung Town, Seoul, South
Korea. It was founded in 1983 as trading company by Lee Byung-chul. Samsung entered the electronics
industry in the late 1960s which is now the world's largest information technology company (measured by 2014
revenues, and 4th in market value). Samsung was consistently successful in satisfying customers by providing
innovative products (Apparel, chemicals, consumer electronics, electronic components, medical equipment,
precision instruments, semiconductors, ships, telecommunications equipment) and stunning services
(Advertising, construction, entertainment, financial services, hospitality, information and communications
technology services, medical services, retail).
Samsung Electronics Co. Has 5 Major goals.
1. To be one of the top three electronics companies in the world in quantity .
2. Have double sales revenue.
3. To have market share.
4. To identify eight growth engines for Samsung's business.
5. To "Inspire the World, Create the Future."
Current market analysis
Samsung Electronics (Mobile Division) operates in one of the most competitive markets of the world.
According to the US Federal Communication Commission 67 new Smartphone devices are introduced every
year. Samsung traditionally had a conservative image that focused on low-price products for the lower end of
the market. With low prices it was able to compete in the lower-market whereas in the upper market it had
lesser penetration. To penetrate the upper-market Samsung had to give up their lower-market position and focus
on innovation and perceiving a higher brand value. The following is the STP Analysis of Samsung Mobiles.

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Geographic Segmentation
Region-
Samsung has divided the Asian market into different geographical regions such as northern, eastern and
southern areas
City-
Samsung is targeting different countries of Asia differently by dividing as different markets such as Indian
Market, China market.
Demographic Segmentaton
Age-
Age factor is not really involved in Samsung segmentation but its most users are adults enthusiastic people
Family size-
Samsung Products are offered for all family sizes
Gender-
Samsung home theater system is equally beneficial for male and female
Income-
Samsung Products are offered with varying features to different peoples based upon their income level i.e. low
(upto $ 1500) lower middle ($.1500-3000) middle ($3000-5000) upper middle ($ 5000-7000) and high (above$
7000)
Occupation-
Samsung has divided the consumer into different categories based upon their occupation i.e. businessman, self
employed, students and teachers
Education-
Samsung is also keen to know about the education level of its target market i.e. illiterate, school 5 to 15, under
graduate, graduate and postgraduate
Psychographic Segmentation
Lifestyle-
Samsung is also classifying customers on different levels based on different lifestyle of the people i.e. culture
oriented, sports oriented, outdoor oriented
Personality-
customers are differentiated on the varying level of personality such as compulsive ambitious Behavioral
Segmentation : Benefits : Consumer are also targeted differently based upon the benefits that are seeking in
Samsung electronics i.e., some people may want good quality , some may want low services and some want
good

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services.
 TARGETING
After segmenting the market based on the different groups and classes, the targets need to be chosen. Samsung
mobiles have the following target customers:
 Trendy young people.
 Professionals.
 Large businesses.
 The common cellular phone users.
 Organizations such as: services to public safety, the government, and both utility and manufacturing
enterprises.
 Institutional sales for colleges.
— Target is not only number driven but also about acquiring and retaining customers.
POSITIONING
Positioning is about the customer perception about the brand as being different from the other brands on
specific dimension including product attributes.
The strategies adopted by Samsung to position itself in the Mobile Phone market are as follows:
(i) It focuses more on the real margin which comes from mid-to-high-end segments.
(ii) Samsung Concept Store.
(iii) Market making & category creation in small towns.
(iv) Wider Care Network.
(v) Access to Samsung care line.
(vi) Pioneering in the 3G segment of mobile phones.
(vii) Branded itself as a synonym for quality.
(viii) Created a Unique Brand Image for itself as a high end value driven brand.
Customer needs, Factors and Purchasing Decisions
Samsung Company created a bridge between the customers and technology to full-fill customer needs.
Opening new possibilities in communication, Samsung has launched its products, a global
communication device that works across all over the world. Phones, tabs of Samsung allows users to
interact with friends and family. Samsung mobile allow users calling, taking photos, sharing text,
images, hand-written notes and watch video instantly, Listen to music and many more.
MAJOR FACTORS INFLUENCING BUYER BEHAVIOUR:
Consumer behaviour is an attempt to understand & predict human actions in the buying role. Consumer
behaviour is defined as “all psychological, social & physical behaviour of potential customers as they
become aware of, evaluate, purchase, consume, & tell others about product & services”. Consumer
behaviour includes communication, purchasing & consumption behaviour. Consumer behaviour
includes both consumer & business buyer behaviour.
 Cultural Factor
 Social Factor
 Personal Factor
 Psychological Factor.

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Culture Factor: Cultural factors comprise of set of values and ideologies of a particular community or
group of individuals. As in USA mostly people prefer smart phones while in developing countries like
INDIA, Bangladesh and SOUTH AFRICA their people prefer simple mobile phones.
Social Factor: The facts and experiences that influence individuals' personality, attitudes and lifestyle .
If a teenager purchase a mobile he would prefer more of entertainments & games,
while an official corporate will prefer more on presentation and professional mobiles.
For Example: Somebody wanted to purchase a mobile so he went to the nearby store and purchased a
samsung mobile because his friends and colleague were using same mobile and they were satisfied by it.
Psychological Factors: Mostly people are attracted towards advertise of samsung smart mobiles and
are motivated to purchase the same. Some people purchase samsung smart phones to overshow their
beliefs and attitude towards their companions. If a person is using a mobile of samsung company he is
mostly aware about feature of the samsung mobile he will force other consumer to buy a same brand of
mobile. .
Personal Factors: Consumption of samsung mobile is also affected by the stages of family life cycle
like bachelor stage, newly married couple, young & old couple and independent children uses different
samsung phone according to their uses.

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Product
Samsung is one of the world’s leading manufacturers of semiconductors, information technology
products, digital media, and telecommunication infrastructure systems. They manufacture different
innovative products including IT business products, printers, professional displays, telecommunication
devices, set top boxes and solar modules.
Place
Samsung is headquartered in Seoul, Republic of Korea. It has operational locations in Korea, the United
States, Europe, Asia, Africa, and China. With its network of subsidiaries and affiliates, it operates in
more than 72 countries worldwide with 197 offices (Pederson, Samsung Electronics Co., Ltd, 2010).
Price
The prices after contracts are; Galaxy S 6 retails for $199.99. Galaxy Note 3 retails for $299.99. These
all depend on the services and features that are provided. This retail prices depends upon multiple
variable and promotional incentives.
Promotion
The company uses all five elements of promotion; Advertising, Public Relations, Sales Promotions,
Direct Marketing and Personal Selling.
Distribution
Along with the launch of new products, Samsung also consolidated its distribution system. Samsung
had 18 state-level distribution offices and a direct dealer interface. The direct dealer interface helped the
company get quick feedback from dealers, and enabled it to launch products according to consumer
needs.
Competitors and Market share

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Company’s marketing objectives
Samsung mobiles objective was to built image and brand to suit consumer’s taste& preference also
benefiting their wants & needs. Moreover, they also aim to make technological advancements and class
leading innovations to provide an image of premium look and feel throughout their product offerings. Here ,
are some objectives that need to be considered: Maintain positively controlled growth and development.
Generate marketing programs that aims to pentrate other markets. Maintained the increased brand
awareness through promotions and sponsorships. Develop stratiges that will address customer feedback on
their product.

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SWOT Analysis
Strength: Samsung has become a world known band over 200 countries. Samsung enjoys the widest range
of product portfolio which includes mobile phone, tablet, tv, pc’s, Laptop, printer and other accessories.
Well diversified and differentiated product line to meet changing customer needs. Design with an attractive
styling that interests the customers as the result of the development of Samsung new product team of
product designers.
Opportunity: Samsung has product variation that’s why they can easily capture the customer. They launch
creative products with new technology, innovative products and creative solutions. Samsung new products
are available get customer because they have more stores to supply the new products. Different types of
mobiles are available in market at affordable price. They offer additional services to return existing
customer and attract new one.
Weakness:
#1. Average prices of product seem to be a low quality products.
#2. Not proactive introducing a new product.
#3. Differences between cultural and language which lead the group into conflicts.
#4. Haviely investing into development of newer markets and not focusing on any one of core
competencies.
Threats: legal war between Samsung and it’s competitors such as Apple. The technology changes rapidly
that impact on products quality.

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Marketing Strategy
A big company must have some strategy and implementation of strategy is the core in which an organization
should develop, utilize, and amalgamate organizational structure, control systems, and culture that lead to
competitive advantage and a better performance. Samsung has a totally different strategy from others, and it's
working great. Just a few years ago Samsung was struggling to catch up in the Smartphone market. Now it
makes more of them than anybody else and has Apple on the back foot, in addition to being the world's largest
technology company by revenue. The heavily hyped launch of its flagship Galaxy S6 Smartphone is the latest
step as it tries to overtake Apple, and they've gone all out with a massive screen and impressive new
features. Here are some of the core pillars of Samsung's strategy. Samsung is better than anybody else at
learning from its competitors. "A market reader is sort of the classic fast follower," as explain by Barry
Jaruzelski, senior partner at Booz&Co and the co-author of the Global Innovation 1000. "It doesn't mean
they ignore their customers, but they're very attuned to what competitors are doing and what other people are
bringing to market first and observing what seems to be gaining traction, then very rapidly coming up with their
own version of that innovation. Apple has a huge cash pile, but Samsung seems to be more willing and able to
put their money to use. Samsung's research spend is 5.7 percent of its revenue, compared to 2.4 percent for
Apple. Samsung is a diverse business with chips, displays, and other technology. This pays dividends, allowing
it to compete on price and increasingly, offer features Apple hasn't gotten too.

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Atcion, plan and program
Developing a unique brand community
If a company in the smartphone industry can successfully create its own “ecosystem” of products, that company
can combat the threats of rapid technological changes and the large amount of imitations and substitutions, as
well as the decline in the new user market base. If switching costs are high, it’ll be harder for the competition to
enter the market and gain a user base. To do this, a company would need to develop its own app store, its own
operating system, and have a product line that exclusive to its brand, so they all work with each other but not
with other company’s products.
If a company is looking to enter the smartphone market, this strategy will give it a competitive
advantage if deployed correctly. The company would have to be innovative in marketing and design in order to
convince consumers to substitute their current smartphone for a new one.
However, this will take some time, probably five to 10 years at minimum, for an existing company in
the market (such as Samsung) because they would have to change their brand identity and product portfolio
slowly, as to not upset their current customers.
Produce cheaper Smart-Phones
The new user market is expected to decrease because the smartphone industry is close to saturation. However,
there are two distinct segments that haven’t entered the market yet: (1) those with low income (those who make
under $50,000 annually) and less educated (a high school diploma or less); (2) those who are 65 and older. This
creates the opportunity for companies in the industry, or for companies looking to enter the industry, to develop
two new smartphone products.

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Conclusion
With the ever growing threats in the smartphone industry, companies must learn to predict and adapt to their
consumers and their environments in order to remain a competitive force in this market. As a team, we have
learned that in order for Samsung and the smartphone industry to grow and succeed together, they must focus
on the users of their technology and cater to their constantly evolving wants and needs. In order to be
successful, companies will need to engage in strategic business planning and be proactive in adapting to the
consumer. One way this can be achieved is by developing a unique brand community.
Competitive companies will engage in research and development to innovate and create the latest
cutting-edge operating systems, application stores, and their own unique software.
They must take their current innovations, and simplify them, to develop products that have similar
features and benefits, at a fraction of the price to consumers. Research and development along with innovation
are clearly necessary to companies that have the desire to continue being a staple in the smartphone industry.

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References:
1. Principles of Marketing, Phili kotlar and Gary Armstrong. (2013 Edition)
2. http://en.wikipedia.org/wiki/Samsung
3. http://www.samsung.com/in/business/
4. http://www.samsung.com/in/business/business-products/mobile-devices/
5. http://markets.ft.com/research/Markets/Tearsheets/Summary?s=SSNLF:PNK
6. http://www.forbes.com/fdc/welcome_mjx.shtml
7. http://www.vanityfair.com/news/business/2014/06/apple-samsung-smartphone-patent-war
8. http://www.marketing91.com/marketing-mix-of-samsung/
9. http://www.samsung.com/uk/news/global/samsung-launches-new-distribution-scheme-for-
uk-independents
10. http://samsungmobileb2b.com/partner/seap/Distributor_Program.do
11. http://www.answers.com/Q/What_distribution_channel_Samsung_use
12. http://www.idealessaywriters.com/sample/samsung-marketing-analysis/
13. http://www.ukessays.com/essays/marketing/strategic-analysis-and-marketing-strategy-for-
samsung-marketing-essay.php
14. http://www.marketing91.com/swot-analysis-samsung/

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