Marketing Analysis for Samsung Essay

INTRODUCTIONSamsung was founded by Byung-Chull Lee on March 1, 1938, in Taegu, Korea, with 30,000 won. Initially his business foc utilize primarily on trade export, change dried Korean fish, vegetables, and fruit to Manchuria and Beijing. In little more than a decade, Samsung-which actor three stars in Korean-would dedicate its own flour mill and confectionery machines, its own manufacturing and gross revenue operations, and ultimately evolve to become the juvenile global corporation that still bears the same name today.For over 70 eld, Samsung has been dedicated to making a ruin worldthrough and through and through several(a) businesses that today span advance technology, semiconductors, skyscraper, plant construction, petrochemical, fashion, medicine, finance, hotels and more. The flagship comp whatever, Samsung electronics, leads the global mart in hightech electronics manufacturing and digital media. Samsung move to partner with Google for their Android OS and the recent s erial publication of Smartphone has tremendously brought their revenue to greater heights. In 2011, the stellar Samsung GALAXY S II sold more than 10 million units worldwide, achieving the No. 1 global foodstuff sh atomic number 18 for smartphones (2011 Samsung Electronics Annual Report).Approx 94.5% of capital of Singapore household has a hand phone in 2008. Likely the percent bestride should be higher(prenominal) now. The functions of a hand phone have evolved greatly in this decade. From means of communication via SMS and calls, hand phone or rather Smartphone serves consumers a far- forth range of functions today. A Smartphone offers more advance computing ability and connectivity thereof conventional mobile phone. cosmopolitanly the established Smartphone flaws in Singapore ar orchard apple tree, Samsung, Nokia, HTC & Motorola.The rapid growth and triumph of Samsung are the suits why our group chose this brand. We believe through in-depth research and analysis fem ale genital organ we better date the success factors behind this rapidly sprang brand, particularly in the Smartphone industry.2.SURVEY RESEARCH be research sexual climax is done via questionnaire rear ending general public. It can be used to gather selective information ab let on peoples knowledge, attitudes, preferences, or purchase behaviour for Smartphones. Basha and Harter (1980) state that a population is any pit of persons or objects that possesses at least one third estate characteristic. by our see, we sample a population which we hope can be representative of the Singapore consumers. This approach is selected by the group because it is the n archean widely used method to self-possessed primary info to meet our research objectives. Through the primary data collected, we hope to draw certain information through analysis on consumer behaviour on the purchase of smartphones. query ObjectivesThe purpose of this work is to regard our responders behaviour and attitu de towards smartphone. We separate the questionnaire into 4Ps namely harvest-tide, monetary value, place and packaging. We hope that with this sketch finding we can better understand the needs of smartphone users, why they impart or leave alone not be utilise and in addition the reason why others are not using Samsung smartphone and the likelihood of them using Samsung in future. With the findings, we hope to draw conclusive data and contract recommendations.2.2Contact systemWe personally gave prohibited the discern forms as shown in concomitant 1 to the general public at Ang Mo Kio Hub and Nanyang Polytechnic. We have given out to 41 respondents and used 30 of them for analysis (11 were deemed as void cod to insufficient information or non completion)2.3Sampling Plan & discipline QuestionsA segment of the population selected for selling research to represent the population as a whole. The survey is to be conducted with a sampling size of 30.The questions were circu mscribed to 10 to avoid being too lengthy resulting in weariness respondents. First part of the survey included information pertaining respondents background such(prenominal) as gender & age which then we proceed to gathering information like consumer preference. Five point Likertscale was used to measure fewer variables.3.CUSTOMERWe testament throw out describe the customer segment for Samsung smartphones using demographic, psychographic and behavioural factors.3.1Demographic factorsThe targeted segment is for both male and female, probably age between 14 and 55, skewed more towards the Gen Y. The country or subject should have wide network (Eg 3G, 4G, wireless connection) to ensure optimal exercise of Smartphone features.3.2Psychographic factorsThere are basically three segments of users blanket(a)ly in which Samsung wishes to target entertainment tensioned, communication-focused and information-centric users.The entertainment-focused users are generally younger group whi ch see a mobile device as a lifestyle choice, and theyre will to pay extra for a device thatll help hold them entertained. fun can also include things like social messaging with friends, facebook and networking. The communication-focused users are extroverts who live to communicate with others. Theyre a good deal in people-facing jobs like sales. Theyre spontaneous to pay extra for a mobile device that lets them keep up with others in multiple carriages. E-mail, SMS, voice, conferencing, video calling basically, anything communication-related is compelling to them, and they will pay extra for a device that does it well. The information-centric users are more introverted. preferably than focusing on their dialog with others, they tend to do a hatch of thinking on their own, and want their mobile device to be amemory supplement and a means to capture unseasoned information. Theyre willing to pay extra for features that help them capture and remember ideas and information.3. 3behavioural factorsPast users of Samsung (Be it handphone or other appliances) will likely purchase Samsung once more due to familiarity and if they have had pleasant experience with the phone, the likelihood of repurchase is high.4. ware MIX4.1 crossroada.3 trains of ProductA production is commonly defined as the physical dots that consumers purchase. But echtly the nature of a product can be further explored in 3 levels. They are The Core Product, The Actual Product and The Augmented Product which are further explained in Appendix 3.Smartphone industry is growing rapidly with umpteen clean brands coming in for a slice of market share severally fighting towards fulfilling consumer growing wants. Understanding the 3 levels of product can better enable Samsung to position itself.Based on Kotlers Three Level of Product Framework, the Samsung smartphone core product is giving consumers tool of communication. Through product variantiation of smartphones, consumers are given a variety of choice for the actual product as illustrated in Appendix 3. Samsungs strategy will ensure it is already at the finishing line when consumer tastes change therefore it produces a wide product range for all taste and demand.b.Consumer ProductSamsung smartphone is categorised as a Shopping Product. Consumers will compare on the equipment casualty, style, function, quality and suitability of the smartphone due to the multiple brands and model available in the market. Having achieved unmatched global competitiveness in hardware, Samsung has been focusing on enhancing its software system capabilities in user interface, user experience, and design and brand awareness. To remain competitive, Samsung moldiness continuously develop quality and innovative smartphones to stay put in the lead.c. send Development StrategyThe about difficult step in exploitation a marketing plan is ordinarily the process of developing a brand strategy. Its often the biggest challenge face by mos t businesses but it is an pregnant step in creating the ac club identity. In the smartphone market, Samsung brand still falls behind Apple. even so Samsung in recent years has been very aggressive and rapidly gaining market share. We will move on to discuss Samsung brand development strategy.While many companies that sponsor events are focused on boosting their brand awareness, Samsung Electronics looks at things a little contrastingly. The Korean giant a major sponsor of the recent Youth Olympic Games (YOG) says that brand preference is a better index of whether its investment has stipendiary dividends. (The Straits Time, 13 Sept 2010)Samsung sponsorships in Youth Olympic Games (YOG) and the coming(prenominal) London 2012 Olympics will certainly volunteer square profile and brand power. Through sponsorship in the Olympics, Samsung seeks to, through user experience boost up their brand.d. field of study Result on Target section Perception (Product)From our survey findi ngs, 94% of the respondents are smartphone users with with 2 respondents one non-smartphone user and one unsure. We have checked with the unsure respondent and respondent was using a smartphone bought to her by her daughter. The strong percentage of smartphone users 94% as per survey results showed a strong And 60% of the respondents responded they are likely to purchase Samsung for their next phone.4.2Pricea.General Pricing ApproachPrice will always be the headstone concern of consumers before making any purchasing decision (Smith and Carsky, 1996). The level of price is found to positively affect behavioral intentions mainly because price establishes image of the brand in the eyes of the consumers (Aaker, 1991). The price set for any product including smartphone is crucial as it directly impacts on consumer purchase.The companys range of low- to high-end smartphones caters to almost every budget. Based on client perceive value and market offerings, Samsung adoptsa value based p ricing strategy. If there is a consumer for it, we will offer the product, says Younghee Lee, senior vice-president of sales and marketing for Samsungs mobile business. (The Business Time, 17 March 2011)b.Price Compared to CompetitorsSamsung stay on a competitive price and with its Brobdingnagian product line every price range is met with a product. We have used the recent ready of Samsung S3 Smartphone with its competitors as illustrated in Appendix 4. Samsung S3 smartphone is run acrossed the high end product serial publication in the smartphone market and we have chosen close competitors mainly Apple iPhone 4S and HTC One. From the comparison, though Samsung S3 is the latest product launch amongst the three phones, it still stays at a less than $100 price difference with competitors. The price Samsung offers is very close to its competitors giving it an edge over them.c.Product conflate Pricing StrategiesThe product amalgamate is the collection of products and go that a co mpany chooses to offer its market and pricing strategies based on what objectives the company had set for them.Samsungs product strategy is to create Android devices crosswise variable price points and flood the market through as many carriers across the world as possible. The original Galaxy S was sold through about 240 antithetic global vendors.Product-line pricing involve setting price for different products within a product range at different price point is the strategy Samsung applied for smartphone. For example, Samsung had a lot of smartphones products with different design and feature at different prices as shown in Appendix 5. The greater the feature and benefit obtain, the higher the consumer have to pay.d.Price margin StrategiesA set of strategies used by companies to countersinked their basic prices to nib for various customer differences and changing situations. Thecommonly use strategies are cut and Allowance Pricing, Segmented Pricing, Psychological Pricing and Promotional Pricing.In the smartphone industry, bank discount and allowance pricing adjustment strategy is commonly used. This strategy allows companies to adjust their basic price to reward customers for certain responses, such as early payment of bills, volume purchases, and off-season get. This strategy can come in many forms.Seasonal discount is a price reduction to buyers who buy merchandise or services out of season. For example, when Samsung Galaxy S3 is launch, the price of Samsung Galaxy S2 was reduced. In this scenario, older model of smartphone is the same as off season products. vendor will offer discount to encourage the buyer to purchase off older models.Allowances are another type of reduction from the list price. For example, sell allowances are price reductions given for turning in an old item when buying a naked one. Trade-in allowances are most common in vendors selling smartphone.e.Survey Result on Target Segment Perception (Price)Through our survey findings , most respondents rated price as most classical factor to consider when buying a smartphone.An interesting thing to note is 40% of the respondents mentioned they willpay up to $300 for a smartphone and 30% mentioned they are willing to pay more than $1500 for a smartphone. It is therefore all-important(a) to draw specific data to understand the needs and wants for those segmented clients.4.3Placea.Number of channel levelsPlace is also known as channel, distribution or intermediary. It is the mechanism through which goods are moved from the manufacturer to the consumer. We have analysed Samsung smartphone distribution as shown in Appendix 6.Samsung practises indirect conduct using selective distribution. The channel contains one to two intermediary levels. Through the major telephone services and authorised dealers, Samsung distribution in Singapore is very intense, and this is simply what Samsung wants. One can purchase a Samsung Smartphone at every vicinity in Singapore. Al l authorised distributors were given product training & reinforcement whenever needed. All telco (SingTel, M1, Starhub) also have dedicated staff to provide training & desk support to consumers should they require assistance on how to use the smartphones.b. railway line intensityFrom the Appendix 6, the distribution channels are intense risible to over 300 upshots making it easily accessible for consumers. The wide and broad channels are one factor for Samsung success.c.Number of outlets, locationThe outlets for Singapore are estimated to be over 300, with at least one outlet in every neighbourhood and the availability to buy online with free delivery.d.Survey Result on Target Segment Perception (Place)From our survey results, 99% of the respondents bought their phone through the various channels with 49% through telco and dealers. Consumers prefer buying phones with contracted lines and this might suggest Samsung can consider giving a better incentive to telcos and dealers to fu rther boost up their sales.4.4Promotiona. objectiveeting Communications ObjectivesMarketing communications objectives is paramount to marketing success. If there is no objective, than there will be no way to measure the marketing success. After all, an objective is the goal intended to attained, which should be attainable and can be measured.Understanding the Product Life troll (as illustrated in Appendix 7) of each product can enable the company to respond with the marcom objectives. Though Samsung started its Smartphone in 2008, in our opinion the stage for Samsung smartphone is at its maturity stage in the Singapore context. During launch of a new smartphone, the objectives will be more informative likeTelling market about the new productExplaining how a product workssuggest new uses for a productMarketing effort by Samsung is normally conducted for launch of new products. As for their breathing products, it is conducted together with their vendors like IT fairs and Electronic fairs. The marketing communication objectives for these efforts will be different from a new launch. The objectives these efforts areEncourage brand switchingPersuading customers to purchase now realise brand preferenceKeep product in consumers mind produce top of mind awarenessPromotion MixAttractive prices of good products are not enough for a business to generate upper limit sales and profits. The benefits of products have to be communicated to customers. In marketing, this is commonly known as promotion.The total marketing communications programme is called promotion mix. Elements of promotion mix include advertize, sales Promotion, Public Relations, Personal sell and Direct Marketing.The elements of promotion mix used by Samsung smartphone are 1)AdvertisingDeliver marketers message using any paying(a) form of mass media outlets, it involve non-personal presentation and promotion of ideas, goods or services by an identified sponsor. The 3 purpose of advertising are Informati ve, coaxing and Reminder.Samsung has been using all three purposes for their advertising campaign in different occasion. Lets look into Samsung individual advertising purpose and objectives.Sales PromotionSales promotions normally refer to encouraging customers to respond or undertake some activity using some form of incentives through special short-term techniques.Some of the sales promotions technique used by Samsung smart phone isa)Joint promotion with Major TelcoSamsung smartphone often had joint promotion with major telco to boost up the sales of the smartphone. For example thepromotion that was in the Starhub official site that offersSamsung Galaxy S3 at different price depending on the plansign up or the Samsung Galaxy S2 at a low price with 2 years plan. (As shown in Appendix 8)b)Joint Promotion with Major Electronic Mega injectSamsung always conduct joint promotion with major electronic mega terminus during ad-hoc promotion fair. Premiums likeadditional SD card, screen p rotector, casing or 0% interestinstalment plan is often used during such fair. This promotion is used to enhance the sales by offering some perks and also to give notice stock for the older model smartphone. (As shown inAppendix 9)Survey Result on Target Segment Perception (Promotion)Through our survey findings, respondents rated current mobile plan expired as the most important factor which influence their purchase of smartphone. This might be an important indicator for Samsung to have intense tie up promotions with the telcos to offer consumers fetching range for those plans that have expired.A significant percentage of respondents also mentioned the launch of newsmartphone is influential in making the purchase. These are likely the consumers who are willing to pay a premium price for the latest launch of smartphone. Samsung can utilise this and through advertising for example television commercial, newspaper advertisements, net announce the new launch in a tasteful path to a ttract this segment of consumers.5.CONCLUSIONConstantinides (2006) emphasizes that marketing mix is a poser of the dominant marketing management paradigm to identify market development, environmental changes and trends. Several studies confirm that the 4Ps is indeed the trusted conceptual platform of practitioners traffic with operational marketing issues (Romano and Ratnatunga, 1995 Coviello et al., 2000). The wide acceptance of the 4Ps among field marketers is the result of their big(p) exposure to this concept during college years, since identifying the 4Ps as the controllable parameters is likely to influence the consumer buying process and decisions (Brassington and Pettitt, 2003 Soekartawi, 2005a).We conducted the survey to evaluate different segments of customers attitude toward 4Ps. It is expected that with this survey findings with the primary data we have collected can we better understand and provide recommendation for Samsungto develop greater understanding of how to serve existing and potential customer based on 4Ps concept for a derriere to meet profitability of their business. Through our survey, we realised a very important trend almost 94% of the respondents carry a smart phone. assuming the latest data from Singstat stating 95% of Singapore household having a handphone, and with that be to 94% of them having a Smartphone, the total volume of smartphone market is estimated to be minimum 3-4Million in Singapore alone.Current users of Samsung are generally satisfied with the features and functions of the phone. so far as Samsung faces close competition with its competitors, Samsung needs to continuously come out with new innovation and technology to stay in the lead. As Samsung is in its maturity stage of the product life cycle, Samsung needs to differentiate itself from competitors.However the tricky part is to position products across different, yet overlapping, market segments. It is important to note, however, that since some consume rs may belong to both segments, side claims for a product should never conflict. To avoid confusing consumers, it may be necessary to make a broad appeal to both segments and then change the positioning slightly within each segment. As Samsung smartphone do has many variations, close together(p) 24, the positioning within each range should be unique and clear to consumers.Overall we feel that Samsung has done well to come this far and stay in the lead. The advantages Samsung has over competitors are the wide distribution channels and the vast product variations. Samsung must continue to ensure its distributors and telcos are given attractive incentives which in turn can bring in non Samsung users. Samsung should also focus on building brand loyalty, which will ensure retain of then(prenominal) and current Samsung consumers. Their primary goal should be to maintain their current market share and extend the product life cycle.REFERENCESSamsung Electronics 2011 Annual Report accesse d on 25 June 2012 http//www.samsung.com/us/aboutsamsung/corporateprofile/download/2011_annual _rpt.pdfSingapore in figures 2011 http//www.singstat.gov.sg/pubn/reference/sif2012.pdf accessed on 25 June 2012Constantinides E (2006). The Marketing Mix Revisited Towards the 21stCentury Marketing. J. Mark Manag, 22 407-438.Porter, M., Competitive Strategy Techniques for Analyzing Industries and Competitors, (New York The Free Press,1980).Smith, M.F., and Carsky, M.L. (1996). Grocery Shopping behaviourA Comparison of Involved and Uninvolved Consumers. Journal ofRetailing and Consumer Services, 39 (2), 73-80.Aaker, D.A. (1991), Managing Brand Equity. 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