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Current Marketing Situation

Samsung Smartphone, founded by Andy Rubin with experience in the Smartphone market. Now,
overall Smartphone sales have been high and profitability has increase by launching Samsung
Galaxy series. The estimated size of the market for multifunction Smartphone’s is 1.8 billion, with
7.3% growth expected within 3 years. To gain market share more in this environment, Samsung must
carefully target specific market segments.
Top Smartphone Operating Systems, Forecast Market Share and CAGR, 2013–2017
Smartphone OS

2013 Market Share

2017 Market




Windows Phone
BlackBerry OS



Source: IDC Worldwide Mobile Phone Tracker, September 4, 2013

Market Description:
Samsung’s market consists of consumers and business users who need to conveniently store,
communicate, and exchange information on the go. Specific segments being targeted during
the first year include professionals, students, corporations, entrepreneurs, and medical users.
Smartphone purchasers can choose between models based on three different operating
systems, first one created by Apple (ios), Second one created by Microsoft (Windows) and
third one created by Google (Android). Samsung licenses the market dominant Apple system
because thousands of software applications and hardware peripherals are compatible with
this system.


manufactured at 20nm scale 16 megapixel Camera front 2 M. colours and patterns allows users to make a fashion statement. there’s no need of a higher resolution. Fingerprint Reader Eye Scanner The Galaxy s5 specs will slot in the trend of the 2014 smartphone market.Quad-core 2 GHz GPU 16-core processor. hands recording • Perform many functions • Compatible with numerous without carrying multiple applications. Alien O1.P. Corporate users • Input and access critical • Compatible with widely (Business Market) data on the go. Its display will probably not go beyond the 5 inch threshold. for the time being. gadgets. because. offers the following standard features:          4GB RAM Android 4. & Samsung doesn’t need to get on Galaxy Note’s propriety. • Case wardrobe of different •New design. The resolution will even be sucked at full HD.4 (KitKat) 5 inch 1080p Super AMOLED Plus display 2900 mAh Li-ion Battery CPU . voice and Students video call from anywhere. conveniently send to and receive messages. Targeted Segment Customer Need Corresponding Professionals Feature/Benefit • Stay in touch while on the • Wireless e-mail (consumer Market) go.Product Review: Our next product. . • Record information while • Voice recognition for no- (consumer Market) on the go. as a display larger than 5 inches would make the Galaxy s5 a tablet. 2 available Software.

access. wireless access (Business Market) contacts. The 5s includes a fingerprint-identity sensor. Fingerprint Reader and Eye Scanner: Sales of the Galaxy S4. the Samsung’s current marquee handset. wireless Medical users • (Business Market) exchange medical records recording and exchange of information to reduce paperwork and increase productivity       Ability to run any android application Large colour display Touch screen for input Cradle for synchronizing data with PC Interchangeable case wardrobe of different colours and patterns Built-in digital camera. and Samsung is considering using an eye scanner and a fingerprint-identity sensor in its top-end smartphones. slowed after Apple released the iPhone 5s and 5c in September. 3 . schedule details to calendar and address book to easily check appointments Update. • Eye scanner • Organize and access • No-hands. and connect with contacts and • No-hands.Entrepreneurs • Use for proprietary tasks.

These kind of batteries use a silicon anode instead of a graphite one which many others use. Rapid charging Battery: Alien O1 are pointing toward a 2. This battery will include rapid charging technology which can charge from 0-100% in two hours. Currently the Galaxy S4 is boasting a 2600mAh battery so a small increase would be better than nothing. It seems that users can use the front and back camera at the same time when in a video 4 . Multi-Party Video Conference: A new patent has been filed outlining a multi-party conference call feature which may appear on the Alien O1.Camera: The camera of Alien O1 will be 16-megapixel that uses optical image stabilization technology. These built-in conference calls would allow the user to have multiple users in one conversation.900 mAh battery. This allows for that slight jump up in battery life. The improved camera sensor could help you take better pictures on the go.

call. Samsung’s ChatON application already allows one-way conference calls so it seems like the next logical step for the app. Competitive Review: 5 . The images below show multi-party conferencing in progress.

one model allows access by fingerprint match as well as by password. Water-resistant phone. many with wireless capabilities to accommodate corporate users. Fast mobile data support (4G). High pixel density screen. Quad core processor. Key competitors include: Competitors Apple Model Features Price High resolution display. High pixel density screen. over 370ppi (445 ppi).00 connector for TV-out. HD camera (13 MP).Increased entry of established smartphone companies has pressured industry participants to continually add features and cut prices. i Phone 5s Google Very big display. Small dimensions. High-resolution display. Fast mobile data $ 349. Fast mobile data support (4G). HDMI $ 299. is also a factor. such as Apple devices. G2 Sony High resolution display. HD camera (8 MP). Competition from specialized devices for security. 6 .00 processor. Quad core processor. For extra security. $ 575. Quad core processor.00 support (4G) Nexus 5 LG Very big display. Extremely high pixel density screen.00 Xperia Z1 Apple: Apple is targeting business markets with its iPhone 5s. HD camera (8 MP). Fast mobile data support (4G). Dual core $ 649. Figure print Reader. High-resolution display. Extremely high pixel density screen.

Target.1-megapixel front shooter. LG: LG has launched its latest flagship smartphone.26 GHz speed processor which should easily make the smartphone one of the best Android device in the market for its performance and specifications. We also face the threat of ever-higher 7 . and Wal-Mart will carry Alien O1 in their stores. Staples. Android 4. We are expecting about 15 million sales in first month that will break our previous record of selling 10 million of Galaxy s4. Google Nexus 5 has a Qualcomm Snapdragon 800 2.2. Sam’s Club. Online retailers: Amazon. Sony: Sony kicked off its CES 2014 campaign with the launch of the Xperia Z1 Compact. and Threat Analysis: Alien O1 has several powerful strengths on which to build. which is a mini-variant of the company's flagship smartphone. but we have some weakness too. LG's latest flagship runs Android Jelly Bean 4. Opportunities. Among the most important channel partners being contacted are: Electronic specialty stores: Best Buy and Best Buy Mobile. The LG G2 sports a 13. will give Alien O1 prominent placement on its home page during the introduction.0-megapixel rear camera with Optical Image Stabilisation and a 2.000mAh battery. It is Water-resistant phone.2 and is powered by a 3.Google: There are some spectacular features of Google Nexus 5 that can attract customers. The major opportunity is growing demand for Android Phone. for a promotional fee. RadioShack. Distribution Review: Alien O1 will be distributed through a network of select store and non-store retailers in the top markets. Strengths. the Xperia Z1.4 ‘KitKat’ is the latest operating system from Google. Computer stores: Gateway stores will carry Samsung products. Costco. the G2. will carry Alien O1 and.

3. 3. Google Nexus and LG are the most powerful competitor.3 summarizes the main strengths. Operating System: Alien O1 build in latest Android operating system. Latest Android vesion. Availibility of application for business use. Big Display Fingure print reader Eye scanner Strengths: Sumsung Galaxy s5 Threats: Increase demand in worlwid. 2. opportunities. Opportunities: Alien O1 can take advantage of three major market opportunities: 1. Table A1. Apple. Support all Android application. Threats: The competitors of Samsung increasing day by day. Increasing Demand: It has now worldwide heavy demand. Objectives and Issues: We have set aggressive but achievable objectives for the first and second years of market entry. Android Apps: It build in latest android version. 2. Sony. weaknesses. Big Display: It has 5 inch 1080p super AMOLED Plus display. Fingerprint reader: It has been included Fingerprint reader option for extra security.competition. Availability: All business related application available for business user. Nokia. 8 . Weakness: Heavier than most competing model. and threats facing Alien O1 Strengths: Alien O1 can build on three important strengths: 1. Increasing competition. People are now very dependable on Samsung product. Opportunities Weaknesses: It is heavier than most competing product. Downward pricing pressure.

Second-year Objectives Our second-year objectives are to achieve a 10 percent share based on sales our models and to achieve break-even early in this period.S.A market. We are also targeting medical users who want to reduce paperwork and update or access patients’ medical records.First-year Objectives During the Alien O1 initial year on the market. The marketing strategy will focus on the Eye Scanner system as the main feature differentiating the Alien O1. we are positioning the Alien O1 as the most versatile.S.000. quality. We also must measure awareness and response so we can adjust our marketing efforts if necessary. we are aiming for a 5 percent share of the U. cell phone market through unit sales volume of 350. Positioning: Using product differentiation. Our primary business target is mid. value-added model for personal and professional use. This segment consists of companies with more than $100 million in annual sales and more than 250 employees. Our secondary consumer target is graduate students who need a multifunction device. This segment can be described demographically by age (20–30) and education large-sized corporations that want to help their managers and employees stay in touch and input or access critical data on the go. and value in USA market. convenient. Issues: One major issue is our ability to establish a well-regarded brand name linked to a meaningful positioning in U. Marketing Strategy: Alien O1 marketing strategy is based on a positioning of product differentiation. A secondary business target is entrepreneurs and small business owners. We will have to invest heavily in marketing to create a memorable and distinctive brand image projecting innovation. 9 . Our primary consumer target is upper income professionals who need one portable device to coordinate their busy schedules and communicate with family and colleagues. Each of the four marketing mix strategies conveys Samsung differentiation to the target market segments identified above.

Pricing Strategy: The Alien O1 will be introduced at $750 wholesale and $850 estimated retail price per unit. The brand and logo will be displayed on the product and its packaging. Samsung will provide demonstration products. We will introduce a more compact.S. Building the more customer is an integral part of our product strategy. we will add channel partners until we have coverage in all major U. We expect to lower the price of this first model when we expand the product line by launching the Samsung Galaxy s6. advertising will appear on a pulsing basis to maintain awareness about our features and communicate various differentiation messages. Distribution Strategy: Our channel strategy is to use selective distribution to have Alien O1 sold through well-known stores and online retailers. Research about media consumption patterns will help our advertising agency choose appropriate media and timing to reach prospects before and during product introduction. In support of our channel partners. To attract. including all the features described in the earlier Product Review section. We will also arrange special trade terms for retailers that place volume orders. The agency will also coordinate public relations efforts to build the Samsung’s features and support the differentiation message. will be sold with a one-year warranty. To attract market attention and encourage purchasing. markets and the product is included in the major electronics catalogues and Web sites. we will offer as a limited-time premium a leather carry-case. Marketing Communications Strategy: By integrating all messages in all media. and motivate channel partners for a push strategy. detailed specification hand-outs. especially our exclusive Eye Scanner feature. we will use trade sales promotions and personal selling to channel partners. we will reinforce the main points of product differentiation. Thereafter. powerful high end model (Samsung Galaxy s6) during the following year. These prices reflect a strategy of (1) attracting desirable channel partners and (2) taking market share from Apple.Product Strategy: The Alien O1. and reinforced by its prominence in the introductory marketing campaign. with more features. to be priced at $900 wholesale per unit. During the first year. and full-colour photos and displays featuring the product. 10 . retain.

holds overall responsibility for marketing strategy and direction.000 trade sales promotion campaign to educate dealers and generate excitement for the product launch in March. Following are summaries of the action programs we will use during the first six months of next year to achieve our stated objectives. The campaign will show how quickly Alien O1 users can accomplish tasks using Eye Scanner. Our training staff will work with sales personnel at major retail chains to explain the Alien O1’s features. Finally. This multimedia campaign will be supported by point-of-sale signage as well as online-only specials. Samsung has hired Worldwide Marketing to handle national sales campaigns. and celebrities as part of our public relations strategy. and focus groups will help us to develop the Samsung Galaxy s6. We will exhibit at the major consumer electronics trade shows and provide samples to selected product reviewers. we will add consumer sales promotion tactics such giving away leather carry-cases as a premium. we are identifying the specific features and benefits that our target market segments value. May 11 . Action Programs: The Alien O1 will be introduced in March. February We will initiate a $800. March We will start an integrated print/radio/Internet campaign targeting professionals and consumers. opinion leaders. Marketing Organization: Samsung’s chief marketing officer in USA Richardson. benefits. surveys. trade and consumer sales promotions. and competitive advantages. Feedback from market tests. we will use customer satisfaction studies to gauge market reaction. We will also distribute new point-of-purchase displays to support our retailers. April As the multimedia advertising campaign continues. and public relations efforts.Marketing Research: Using research.

We will hold a trade sales contest offering prizes for the salesperson and retail organization that sells the most Alien O1’s during the 4-week www. Controls: We are planning tight control measures to closely monitor quality and customer service satisfaction. and estimated first-year fixed costs of $76. Sources: www. variable cost of $650 per unit. In addition.cnet. July Our radio campaign will add a new voice-over tag line promoting the Alien O1 as a graduation gift. This will enable us to react very quickly in correcting any problems that may occur. early in the product’s second year.000 Based on these assumptions. Budgets: Total first-year sales revenue for the Alien O1 is projected at $180 million.500 Break-even calculations indicate that the Alien O1 will become profitable after the sales volume exceeds 765. The radio ads will feature Eye Scanner and Fingerprint Reader system to operate their Alien O1. Other early warning signals that will be monitored for signs of deviation from the plan include monthly sales (by segment and channel) and monthly expenses. We will also exhibit at the semi-annual electronics trade show and provide channel partners with new competitive comparison hand-outs as a sales aid.000/ ($800-$650) = www.cnn. The print ads will show these celebrities holding their Alien O1. with an average wholesale price of $750 per unit and variable cost per unit of $650 for unit sales volume of www. We anticipate a first-year profit of up to $100 million on the Alien O1 model. Our break-even analysis of Alien O1’s product assumes per-unit wholesale revenue of $750 per unit. we will tally and analyse the results of customer satisfaction surveys for use in future promotions and to provide feedback for product and marketing activities.000. the break-even calculation is: $ 12 .500. June We plan to roll out a new national advertising campaign this month. 13 www.