Professional Documents
Culture Documents
ANEES UR REHMAN
PH # +923350419911
MBA , MCOM
CA FINALIST
ACKNOWLEDGEMENT
First of all I would like to thank the supreme power The Almighty God who is
obviously the one has always guided me to work on the right path of life.
I have taken efforts in this project. However, it would not have been possible without
the kind support and help of many individuals and organizations. I would like to extend my
sincere thanks to all of them. This study is an important part of my Master’s education at the
thesis advisor, Professor Husnain Manzoor (Marketing Director) for all the time, valuable
insight and contributions he made to improve the quality of my study. I am very appreciative
for the guidance, suggestions and time he gave to me during the Research foundations class.
I take this opportunity to record my sincere thanks to all the faculty members of
department of Marketing who helped me a lot in finalizing this project within the limited time
frame.
for providing me with unfailing support and continuous encouragement throughout my years
of study and through the process of researching and writing this thesis.
My thanks and appreciations also go to my friends for their kind co-operation and
respondents for their support and willingness to spend some time with me to fill in the
questionnaires.
I am highly indebted to my favorite teacher Sir Shoaib Saeed for their guidance and
constant supervision as well as for providing necessary information regarding the project &
At last but not least gratitude goes to all of my friends who directly or indirectly
I am making this project not only for marks but to also increase my knowledge. Any
Marketing is actually a process, through which we can plan and execute the concepts
of a company, and it also deals with the promotion and distribution of ideas, goods and
services for satisfying the individuals need and achieving organization’s objectives. The first
part of my research is about the Literature review of marketing mix. The only (P) from which
the concept of marketing mix is originating is (price) of microeconomic. The other P’s was
introduced in the marketing mix for the purpose of facing highly competitively marketing
situation.
After understanding the Mission, Vision, strategies and goals of Samsung, the next
step of this research is to look at the situational analysis and financial analysis of Samsung.
Furthermore, this research paper will also present the marketing mix of Samsung mobile
phone in their re-launch stage, in order to have a complete understanding on how Samsung
should differentiate their mobile phones by using 4P’s of marketing mix on order to gain the
competitive advantage
The objective of this paper is to create a marketing plan based on the business strategy
that can be used as a basis when re-launching Samsung mobile brands in the market. The goal
is to increase brand awareness and visibility of Abacus among potential customers. The study
method used in this research is customer survey. Results should help to boost the sales by
A questionnaire was designed online, since the research was a study of consumer
perceptions about marketing strategy used by Samsung on its mobile phones. Online data
collection methods were preferred. The link of the questionnaire has been sent online to 86
people out of which 53 people responded to questionnaires. Most of the respondents seem
satisfied with the product (Samsung mobile phone) as a whole but a significant percentage of
Product attributes, Price, place, promotions, time saving and convenience were
identified as most important factors which affect the buying behavior of the consumers.
Contents
A REVIEW OF LITERATURE
MARKETING
The process of making, communicating and delivering the final good that create value for the
Marketing is actually a process through which we can plan and execute the concepts of a
company, and it also deals with the promotion and distribution of ideas, goods and services
for satisfying the individuals need and achieving organization’s objectives. (Gundlach, 2007).
If we examine the marketing definition closely, we came to know that there are four
COMMUNICATING: Describe the product and aware the customers about your
DELIVERING: Provide goods to the customers in a most appropriate way that increase
value.
MARKETING MIX
Marketing basically consists of elements we called marketing mix. Borden was the person
who claims that he used the term marketing mix for the 1st time and this thing was suggested
by Culliton (Goi, 2009). The only (P) from which the concept of marketing mix is originating
is (price) of microeconomic (Wai, 2003) . The other P’s was introduced in the marketing mix
for the purpose of facing highly competitively marketing situation (Low and Tan, 1995).
UNIVERSITY OF SOUTH ASIA Page 1
A BUSINESS ANALYSIS OF SAMSUNG
Source:Figure 1.1: The 4P marketing mix model.( Meghna Jain & Fang Han 21/05/2012)
The idea of the marketing mix can be compared with the idea of mixing a cake during baking.
A baker changes the proportions of ingredients in a cake depend on the type of cake which he
wants to make. The proportions in the marketing mix differ from product to product. (Nazari
& Eavani, 2012). The firm’s competitive position can be changed depending on the
To pressure the buyer’s reaction a firm can use the components of marketing mix (Kotler,
Product
Price
Place (Distribution)
Promotion
Every firm try to create a best combination of 4‘P’s, which can satisfy the consumer needs
and at the same time meet its organizational objectives (Nazari & Eavani, 2012). According
to the businessman point of view 4P’s are most important in the following arrangement:
price, product, distribution, and promotion (Sanghvi, 2014). Businessmen do not give the
equal importance to these components of marketing mix. They think that price and product
are the most significant components of marketing mix than place and promotion (Sanghvi,
2014)
PRODUCT
elements for all firms to attract users and so that their need
satisfaction of the particular needs (Kotler, Armstrong, Saunders, & Wong, 1999).
Initially the company must consider which product component is important for their
company to analyze in the purchasing situation. (Bearden & Etzel, 1982). A company makes
an image of their product in the mind of users and in the market it is important because
competitors create a challenge for the firms in the competitive market. A brand is important
for a company to differentiate their product from competitors (Keller, 1993). Brand name is
an important signal for consumer perceptions of product value (GREWAL, BAKER, &
BORIN, 1998).The market of intangible product can be many times greater than the market
for tangible items (Dezvane & Bundschuh, 2003). And the revenue produced by the market
of intangible product can be three times the revenue of the original buying (Dezvane &
Bundschuh, 2003).
Basically the product can be divided into two product, core product and actual product. There
is another type of product that can be called augmented product that is around the both core
and actual product. Any kind of product is important for the marketer whether the product is
the core product or the actual product. Core Product is related to provide the central benefits
to the end users. And it is also defines the benefit of the customer when a customer buy the
product. Actual product is related to the components of the product and other things that are
related to the product such as packaging, brand name, quality, design, features and colors. On
the other hand the augmented product provides the other benefits associated with the actual
and core product such as warranty and after sales service (Kotler, Armstrong, Saunders, &
Wong, 1999).
Source: Three Levels of Product (Kotler, Armstrong, Saunders, & Wong, 1999). Pg.562
The warranty of a product is most important element of after sale support. The manufacturing
organizations take it as a part of after sale service (Murthy, 2002). The quality of the product
can be assessed by the customer on the basis of the warranty that is provided by the
manufacture of that product. The quality of product should be according to the customer’s
expectation and also create value for the company (Murthy, 2002).
Warranties also play an important role in the maintenance of the company better
image in the market and in the eyes of the loyal users. Therefore the firms try to provide the
best warranty service to their customers for that reason the customer cannot easily switch off
to the other competitor’s brand (Ullah, 2011). Packaging of a product is very important for a
number of reasons. But in the real terms packaging is the factor that is directly connected
itself with the main product and use to identify the product. (Vidales Giovannetti, 1995).
Packaging is very important from the customer point of view. It is the main thing that
the customers take into account before making the final assessment to buy a product (Vidales
Giovannetti, 1995).
There are many strategies of how to offer a product in the market also known as product
MANUFACTURING BRAND: The product that is sold with the name of manufacturer.
This strategy is most commonly used. There are different advantages and
disadvantages of this strategy that are directly affect the producer of a product.
Customer reliability and price premiums are the main advantages of this strategy.
There is a long time required to build a new brand and the manufacturer have to bear
high cost to build a new brand that are the main disadvantages of this strategy.
PRIVATE BRAND: We can define the private brand as the product produces by a one
(Kotler, Armstrong, Saunders, & Wong, 1999). Co-branding is used to increase the
PRICE
Saunders, & Wong, 1999). The company can cut down its
decrease their current prices in the market (Pricing Strateies, 2004). The companies can
decrease their advertising expenses and can transfer their savings to the customers through
price deductions. In this way the company can satisfy their customers. (Pricing Strateies,
2004). Price is very sensitive area of marketing. Company can reduce their prices by
decreasing their expenditure (Curry, november,1990). The price of the raw material affects
According to the (Curry, november,1990), the price sensitivity can be determined through a
number of ways:
To determine how much the real sale is on a particular price of a company’s product.
All the times every pricing strategy is not suitable therefore, we have to select a best one
strategy (Griffith & Rust, 1993 ).A manager can select the most appropriate pricing strategy
from different alternatives. (Cole Ehmke, Joan Fulton, and Jayson Lusk).
There are different strategies that a manager can use to set the price of their products (Cole
this pricing method. This method adds up a standard percentage of profit in cost.
perception of the buyer depends on all aspects of the product, whether these are non-
Competitive: This price strategy is related with the price of the competitors.
Company set price according to their competitors for the purpose of competing with
them.
Going-Rate: A price strategy which is set by the company for the purpose of staying
in the market.
being set at the initial stage of the price and then reducing the price according to the
market.
Discount: Price strategy for reducing price from the market price.
Loss-leader: A price strategy through which a company sets the price below the cost
Psychological: This strategy through which a company set the price which seems
Break Even Pricing: by using this strategy company determine the price of their
product that covers all expenses. At breakeven price company gains no profits and
bears no loss.
PLACE
Armstrong, Saunders, & Wong, 2002). Companies should provide their product to the customers
at the right place where they can conveniently buy it. In this element of marketing mix there
are different distribution channels that are involved such as distributors, retailers and
Company can use different direct and in direct channels to distribute its products in
the market (Kotler, Armstrong, Saunders, & Wong, 2002). Direct channel is the best
distribution channel that is used by the producer. The most of the successful companies use
direct channel for the success of their business. It is a very motivated and cost saving strategy
a company chooses. But at that stage it is very difficult for the producer to choose direct
channel because after choosing that if further firm need to select any kind of other channel for
Distribution channels can be defined as a bridge between company and their final
consumer (Stern & T., 1980). With the evolution of the distribution network, the relationship
between the manufacturers, distributors and end users have been improved. (Cohen, Agrawal,
Agrawal, & Raman, 1995). Company’s sales depend on the choice of channels (Kotler,
1998). Manufacturers choose their distribution channels according to the profit they want to
earn because if the distribution channel fails, the company has to bear loss. If a manufacturer
takes a wrong decision while selecting the distribution channels then the all other elements of
marketing mix will be affected. So distribution is very important for all the types of
From above literatures, we find selling product through distributors and selling in large
There are many strategies of how to distributer a product in the market also known as
DIRECT CHANNEL: To distribute their product directly to the end users. The perfect
example of direct channel is Dell Computers. It provides its products directly to the
end consumer. The plus point of this distribution strategy is that the manufacturer has
an entire control over the prices charged to the final consumer and has a fully control
point of this strategy is that the company has not fully control over the prices charged
to the final customers (Kotler, 2000). Companies use this channel because
PROMOTION
selling. The first three element of promotion mix are used to interact with the group of
potential consumer and the last element of promotion mix is use to interact with individuals,
and the end users. To communicate with consumers, a company can use one or more of the
promotional alternatives that are personal selling, advertising, sales promotion and public
relation (Onditi, 2012). Consumer’s selection behavior is affected by the retail promotion.
A company can use different strategies in order to communicate with their customers.
ADVERTISING:
their customers. Different medium are used for advertising such as the press, television, E-
mail, radio and outdoor (Kotler, 2000). Advertisement is most important element to build
strong relations with brands (Bayode, 2011). Advertising strategy can be used in order to
aware the customer about your product. Company uses this strategy to inform their customer
PERSONAL SELLING:
This strategy is used to interact to the customers personally. In this strategy the
company representative sales the products of their company by using face to face
Armstrong, Saunders, & Wong, 2002). Through personal selling a company can create
consumer values in several ways. For example by using face to face communication a
Sales promotions can be defined as a type of indirect advertising that are used to
increase sales by giving incentives such as trade discounts, free trails and temporary drop in
prices (Bayode, 2011). By using sales promotion strategy companies can increase their sales
in short run. On the other hand the trade promotion strategy is used to influence distributors
and retailers to buy large volumes of products and to advertise them (Kotler, 2000).
PUBLIC RELATION:
The main focus of this strategy is to communicate the positive feature of a business
or a product. This strategy is used to increase the goodwill of a business and their product.
While promoting their products, a marketing manager can select two alternative strategies.
Push strategy.
Pull strategy.
PUSH STRATEGY:
In this strategy the manufacturer directs their marketing activities channels members
to influence them to bring their product or promote the final product to the end users.
Companies that use the Advertising and sales promotion are often adopt the push strategy.
(Bayode, 2011).
PULL STRATEGY:
In this strategy the manufacturer directs their promotional activities to the end
consumers to encourage them to demand for the product to the retailer. Due to increase in
demand the retailers ask the wholesalers for product. Personal selling and public relations
INTRODUCTION
After the death of Lee in 1987, Samsung was divided into four main groups. Samsung Group,
Shinsegae Group, CJ Group and Han sol Group. According to the 2011 revenues it is the
world's largest information technology company. Samsung has its assembly plants & sales
network in more than 60 countries of the world. In the start of 2012 it was considered the
SAMSUNG LOGO
1993.
HISTORY OF COMPANY
2010-2016
December: Samsung maintained No.1 position in the global TV market for 10 consecutive
years. September: Samsung Electronics began mass production of the industry’s first 12 GB
LPDDR4 mobile DRAM. September: Samsung Electronics launched the Gear S2, a stylish
smart watch with a versatile circular design and rotating bezel. September: Merger of Cheil
Industries and Samsung C&T Corporation. August: Samsung Electronics began mass
Samsung Electronics launched the mobile payment service. Samsung Electronics launched
Galaxy S4 in the Korean market and global markets. Samsung Electronics began mass
producing the world’s first 20 nanometer 4GB ultra-high-speed mobile DRAM. Samsung
Electronics unveiled Galaxy S4 in the US. Samsung Bioepis entered into the development
and marketing partnership with Merck of the US. Samsung Display Passes 300 Mil OLED
Panel Output Mark. Samsung recorded the accumulated global shipment volume of 0.1
Samsung Display was established as the world’s largest display company. Vice Chairman&
CEO of Samsung Electronics Kwon Oh Hyun took office in 2012. Samsung Electronics
the Innovation Awards at the CES 2012 with 30 products. Samsung Electronics was selected
as one of the ten brands with the highest values in Africa. Samsung Electronics sponsored the
Cheil Worldwide won the Grand Prix at the Cannes International Advertising Festival.
Incheon FEZ. Samsung Electronics launched construction of the 7.5G LCD Fab plant in
Samsung Electronics signed the patent cross license agreement with IBM of the US.
2001-2009
Electronics developed the world’s first 40 nanometer DRAM. Samsung Electronics built the
world’s largest mobile phone as recorded in the Guinness Book of World Records. SADI,
Samsung’s design school, received the most if Concept Design Awards for its entrants.
Samsung Electronics released the world’s thinnest Blu-ray player. Samsung Electronics
sponsor of 2010 Guangzhou Asian Game. Samsung Electronics developed the world’s first
2Gb 50 NANO. Samsung takes No.1 spot in U.S. cell phone market. Samsung Electronics
opened Global Brand PR Center 'Samsung D'light'. Samsung Electronics achieved No.1
worldwide market share position for TVs for the 9th quarter in a row.
Samsung Electronics developed the world’s first real double-sided LCD. Samsung
Electronics developed the worlds' first 50nm 1G DRAM. Samsung Electronics unveiled 10M
pixel camera phone. Samsung Electronics launched 'Stealth Vacuum,' a vacuum cleaner with
the world’s lowest level of noises. Samsung Electronics launched the worlds' first Blu-Ray
Produced the first wrinkle-free steam washer. Sold more than 20 million cellular phones in
the U.S. Developed the world's first 60-nano 8GB NAND Flash memory chip. Ranked top in
mobile phone sales in Russia. Released new PDP TV featuring the highest contrast ratio in
the world. Developed a 3rd Generation Optical Blu-Ray Disc Recorder. Samsung developed
cellular phone chip for satellite DMB system. Released 46" LCD TV for the first time in the
world.
1994-1999
Samsung Aerospace (known today as Samsung Techwin), Daewoo Heavy Industries, and
Hyundai Space and Aircraft formed a single business entity, Korea Aerospace Industries.
First in the world to mass-produce and offer a full line up of digital TV. Samsung Developed
the world's first 3D TFT-LCD Monitor. It developed wireless Internet phone (Smartphone), a
small, multi-function phone. Samsung Electronics achieved top share of world’s TFT-LCD
market. Samsung began mass production of the world’s first digital TV. Samsung Electronics
Samsung Electronics developed World's first 128MB Synchronous DRAM and 128MB
Flash memory. Samsung became a Worldwide Olympic Partner (TOP) in the wireless
wireless equipment category for Nagano Winter Olympics. Developed world's lightest PCS
(105g). Developed world's largest TFT-LCD (30). Development of world's first 30" TFT-
DRAM. Produced 30 million microwave oven. Samsung Aerospace developed the world's
1980-1993
Samsung Advanced Institute of Technology (SAIT) developed first-ever digital video disk
recorder (DVD-R).Samsung Electronics acquired U.S. firm HMS. Developed mobile phone
system. Development of 250MB hard disc drive. Development of world's first 64M. DRAM.
Acquired Kukje Securities Co., today known as Samsung Securities Co., Ltd. Samsung
1970-1979
VISION
create new markets, enrich people's lives and continue to make Samsung a digital leader.”
VISION 2020
Samsung Electronics' vision for the new decade is to "Inspire the World, Create the Future."
technologies, innovative products and creative solutions. We are also committed to creating a
brighter future by developing new value for our core networks: industry, partners and
employees. Through these efforts, we hope to contribute to a better world and a richer
As part of our new vision, we have mapped out a specific plan of reaching $400 billion in
revenue and becoming one of the world’s top five brands by 2020. To this end, we have also
established three strategic approaches in our management: creativity, partnership and talent.
We are excited about the future. As we build on our previous accomplishments, we look
We are committed to being a creative leader in new markets and becoming a truly No. 1
MISSION
Samsung doesn’t have an official mission but express it through company’s philosophy:
“At Samsung, we follow a simple business philosophy: to devote our talent and technology to
creating superior products and services that contribute to a better global society.”
VALUES
We believe that living by strong values is the key to good business. That’s why these core
values, along with a rigorous code of conduct, are at the heart of every decision we make.
PEOPLE:
Quite simply, a company is its people. At Samsung, we’re dedicated to giving our people a
EXCELLENCE:
unfaltering commitment to develop the best products and services on the market.
CHANGE:
company’s survival. As we have done for 70 years, we set our sights on the future,
anticipating market needs and demands so we can steer our company toward long-term
success.
INTEGRITY:
a moral compass that ensures fairness, respect for all stakeholders and complete transparency.
CO-PROSPERITY:
A business cannot be successful unless it creates prosperity and opportunity for others.
MANAGEMENT
Samsung looks for creative and collaborative visionaries to run our companies. By attracting
talented managers and evolving our organization’s culture to support them, we foster
innovative ideas that advance technology, produce new products and improve the everyday
BOARD OF DIRECTORS
Technology [2013~Present]
President & Head, Semiconductor Business [2008~2011] Vice Chairman & CEO
[2012~Present]
[2006~2009].
MARKET ANALYSIS
SWOT ANAYSIS
Strengths
In the manufacturing of TV, LCD, Smartphone and mobile phones, the world’s
In the Third quarter of 2015 Samsung has the 21.4% market shares of the world’s
In US and Europe there is a long term relationship b/w Samsung and its retailers.
In the last three years the brand value of Samsung increased by 80%.
By introducing their manufacturing plant in India Samsung reduced their supply chain
costs.
Samsung introduced the smallest MP3 player in the world and also presented the first
Weaknesses
Samsung’s marketing competencies for Smartphone is not able to match Apple Inc.
According to different consumer’s point of view Apple products are more advanced
than Samsung.
Still Nokia is considered to be the most preferred product in India in terms of ease of
Opportunities
In the developing regions the market for Smartphone and other mobile devices is
In the developing countries the middle class is growing therefore it is opportunity for
By launching the customer oriented products the market share in the rural market will
increase.
The sales of Samsung mobile phone is expected to increase because of low call rates
Because its financial position is strong therefore it is easy to enter into unrelated
diversification.
Threats
Chinese competitors sell consumers electronics at very low price and they also sell the
The product line of Samsung is very wide therefore due to the failure of any product
Apple inc. has a growing repute for quality and reliability in the market.
Samsung uses Google Android system while the apple uses iOS. The android system
Apple could directly compete with Samsung by entering in more products areas like
The competitors of Samsung such as Nokia, I phone are focused only in 1 segment.
PESTEL ANALYSIS
• P -political Factor
• E -economic Factor
• S -social Factor
• T -technological Factor
• E -environmental Factor
• L-legal Factors
Political
Political environment is favorable in some markets for the Samsung but still some
foreign markets create the problem for the Samsung. Political instability and government
attitude towards the industry affect a lot the company profit. The company has to face a
Economic
This factor affects a lot the Samsung. Company has to expand their footprints due to
the development of the market. Due to this the buying behavior of the customers is reduced
and company has to find some kind of profitable solution. That’s why Samsung choose an
aggressive push to maintain their position in the market. Economic factors also affect the
level of taxation, Interest Rate, Change in Cost of Labor. Company is also impacted by
Social
Samsung is a family oriented multinational company. Samsung change their all kind
of aspect according to the demand of local areas. Also Samsung change their product
speedily by knowing the preference of the consumer in the market. The increasing trend of
mobile usage in the market increase Samsung product consumption in the market. Samsung
Technological
Samsung is the leading company that adopts innovation in their technology. The basic
aim of the company is to be first in the market that offers the latest product in the market.
And that help the company gain competitive advantages in the market. Samsung adopt the
Environmental
Environment impacts are on all types of business. Some effects are positive but some
are negative. Samsung Company also keeps in mind the pollution and waste. This factor
affect a lot the company but is have no direct impact on the trade and profit this is because
environmental factor affect only agricultural business in the market. Samsung have to make
Legal
Samsung have to face many penalties for charges it imitated the apple iPod and
iPhone. This factor effects the reputation of the company. Samsung have to maintain their
FINANCIAL ANALYSIS
ASSETS SIDE
• The long term available for sale financial assets of Samsung in 2013 are 4882060$
and in 2015 are 12033351$. Which shows that there is increase by 7151291$ in long
• The PPP of Samsung in 2013 is 63938701$ and in 2015 76824309$. Which means
• The intangible assets of Samsung in 2013 is 3482126$ and in 2015 4545904$ that
• The long term prepaid expense of Samsung in 2013 is 3282120$ and in 2015
• The total non-current assets in 2013 are 87575906$ and in2015 109505968$ that
• Cash and cash equivalents of Samsung in 2013 is 17544076$ and in 2015 15997688$
• The short term available for sale financial assets are 1175309$ in 2013 and 3122255$
in 2015 which shows that there is an increase in short term available for sale financial
assets.
• The total trade receivable in 2013 is 24903927$ and in2015 26821018$ that shows the
• The short term prepaid expense of Samsung in 2013 is 2112066$ and in 2015
• The inventories of Samsung in 2013 is 16569333$ and in 2015 16450560$ that shows
• There is no asset held for sale in 2013 but in 2015 there is asset amounted 613177$
• The total current assets of Samsung in 2013 are 81476069$ and in 2015 109381617$
• The total assets of Samsung in 2013 are 169051975$ and in 2015 218887585$ that
• The preferred stock of Samsung is 111537 in 2013 and 113486 in 2015 that shows the
• The preferred stock of Samsung is 726400 in 2013 and 739097 in 2015 that shows the
• The total equity of Samsung in 2013 is 113416306$ in 2013 and 159673399$ in 2015
• The debentures of Samsung are 1707940$ in 2013 and 1288004$ in 2015 that shows
• The long term borrowing of Samsung is 3382530$ in 2013 and 96581$ in 2015 that
• The long term other payables of Samsung are 1088489$ in 2013 and 2433999$ in
2015 that shows the increase in long term other payables by 1345510$.
• The net defined benefit liability of Samsung is 1615105$ in 2013 and 191262$ in
2015 that shows the decrease in net defined benefit liability by 1423843$.
• The Deferred income tax liabilities of Samsung are 3201818$ in 2013 and 3892667$
in 2015 that shows the increase in Deferred income tax liabilities by 690849$.
• The Provisions of Samsung are 381411$ in 2013 and 474295$ in 2015 that shows the
• The Other non-current liabilities of Samsung are 440757$ in 2013 and 1427368$ in
• The total non-current liabilities of Samsung are 11818050$ in 2013 and 9804176$ in
• The trade and other payable of Samsung is 15768229$ in 2013 and 7518480$ in 2015
• The short term borrowing of Samsung is 7883253$ in 2013 and 7627338$ in 2015
• There is no other payable of Samsung in 2013 but there is 9801850$ other payable in
2015.
• The advances received by Samsung are 1416928$ in 2013 and 1355780$ in 2015 that
• The withholdings of Samsung is 902226$ in 2013 and 1103482$ in 2015 that shows
• The accrued expense of Samsung is 8864864$ in 2013 and 12232143$ in 2015 that
• The income tax payable of Samsung is 3008994$ in 2013 and 2052920$ in 2015 that
• The current portion of long term liability of Samsung is 932695$ in 2013 and
1689624$ in 2015 that shows the increase in current portion of long term liability by
756929$.
• The provisions of Samsung is 4719310$ in 2013 and 5691565$ in 2015 that shows the
• The other current liability of Samsung is 321120$ in 2013 and 309930$ in 2015 that
• There is no liability held for sale by Samsung in 2013 but there is 26898$ liability that
• The total current liability of Samsung is 43817619$ in 2013 and 49410010$ in 2015
• The total liability of Samsung is 55635669$ in 2013 and 59214186$ in 2015 that
• The total liability and equity of Samsung is 169051975$ in 2013 and 218887585$ in
2015 that shows the increase in total liability and equity by 49835610$.
• The cost of goods sold of the Samsung is 118244730$ in 2013 and 121856939$ in
• The gross profit of Samsung in 2013 is 69509553$ and in 2015 74026016$ that shows
• The selling and administrative expense of Samsung in 2013 is 42388520$ and in 2015
expense by 7865224$.
• The operating income of Samsung is 27121033$ in 2013 and 23772272$ in 2015 that
• The financial income of Samsung is 7316361$ in 2013 and 7846328$ in 2015 that
• The financial expense of Samsung is 7407758$ in 2013 and 6928852$ in 2015 that
• The profit before income tax of Samsung in 2013 is 27929248$ and in 2015
26479560$ that shows the decrease in profit before income tax by 1449688$.
• The income tax expense of Samsung in 2013 is 5666822$ and in 2015 4256366$ that
• The profit for the year 2013 is 22262426$ and the profit for the year 2015 is
• The profit before income tax of Samsung in 2013 is 27929248$ and in 2015
26479560$ that shows the decrease in profit before income tax by 1449688$.
• The profit before income tax of Samsung in 2013 is 27929248$ and in 2015
26479560$ that shows the decrease in profit before income tax by 1449688$.
• The profit before income tax of Samsung in 2013 is 27929248$ and in 2015
26479560$ that shows the decrease in profit before income tax by 1449688$.
• The Basic earnings per share for profit attributable to owners of the parent in 2013 is
143.8 and in 2015 145.4 that shows the increase in Basic earnings per share for profit
• The Diluted earnings per share for profit attributable to owners of the parent in 2013
is 143.7 and in 2015 145.4 that shows the increase in diluted earnings per share for
• The profit for the year 2013 attributed to the equity shareholders is 21646322$ and for
the year 2015 21926949$ that shows the increase in profit attributed to the
shareholder by 280627$.
• The profit for the year 2013 attributed to the non-controlling interests is 616104$ and
for the year 2015 296245$ that shows the decrease in profit attributed to the non-
controlling interests.
• Other comprehensive loss for the year 2013 is 1603099$ and for the year 2015 the
other comprehensive loss is 1893619$ which shows that there is an increase in other
comprehensive loss.
• The total comprehensive income for the year 2013 is 20659327$ and for the year
• The total comprehensive income for the year 2013 attributed to the equity
shareholders is 20072209$ and for the year 2015 19939900$ that shows the decrease
• The total comprehensive income for the year 2013 attributed to the non-controlling
interests is 587118$ and for the year 2015 389675$ that shows the decrease in
PRIMARY RESEARCH
EXPLANATION:
This graph shows the views of respondents about the quality of Samsung mobile
phones. The main purpose of this statement “Samsung provides good quality mobile phones”
is to identify the consumer perception about the quality of Samsung mobile phones. 51
persons responded to this statement out of which 2% of the respondents strongly disagreed,
5.9% of the respondents disagreed, 11.8% of the respondents neither agreed nor disagreed,
33.3% of the respondents agreed and 47.1% of the respondent strongly agreed to this
statement.
In summary, most of the people strongly agree that Samsung provides good quality
mobile phones. Samsung mobile phone has different characteristics that separate it from other
brands such as Samsung provides better sound system, good battery management system and
better touch sensitivity. Quality plays an important role in the success of Samsung mobile
phones.
EXPLANATION:
This graph shows the responses of respondents related to the durability of Samsung
mobile phones. This graph also helps us to identify the consumer perceptions about the
mobile phones are durable ” out of which 0% of the respondents strongly disagreed, 9.8% of
the respondents disagreed, 21.6% of the respondents neither agreed nor disagreed, 51% of the
respondents agreed and 17.6% of the respondent strongly agreed to this statement. So the
overall analysis shows that most of the people agree with the statement “Samsung mobile
Explanation:
This graph shows the responses of respondents related to the touch sensitivity of
Samsung mobile phones. The main purpose of this statement ’Samsung mobile phones have a
better touch sensitivity” is to identify the consumer perceptions about the touch sensitivity of
Samsung mobile phones. 51 persons responded to this statement out of which 0% of the
respondents strongly disagreed, 3.9% of the respondents disagreed, 13.7% of the respondents
neither agreed nor disagreed, 43.1% of the respondents agreed and 39.2% of the respondent
So the overall analysis shows that most of the people agree with this statement
“Samsung mobile phones have a better touch sensitivity”. Touch Screens have become very
commonplace in our daily lives. Touch screens are very common in Smart phones. Because
Samsung provide better touch therefore mostly people agree with this statement.
Explanation:
This graph shows the responses of the respondents related to the statement “Samsung
mobile phones have a strong body”. The basic purpose of this statement is to identify the
consumer perception about the body of Samsung mobile phones. 51 persons responded to
this statement out of which 9.8% of the respondents strongly disagreed, 17.6% of the
respondents disagreed, 37.3% of the respondents neither agreed nor disagreed, 25.5% of the
respondents agreed and 9.8% of the respondent strongly agreed to this statement. The vast
majority of the respondents are neither agree nor disagree. They are neutral with respect to
Explanation:
This graph shows the views of people about the battery backup of Samsung mobile
phones. This graph also helps us to identify the consumer perceptions about the battery
timing of Samsung mobile phones. 50 persons responded to this statement out of which 4%
of the respondents strongly disagreed, 20% of the respondents disagreed, 24% of the
respondents neither agreed nor disagreed, 48% of the respondents agreed and 4% of the
Because the Samsung mobile phones have better battery management system
therefore, the vast majority of the respondents agree that Samsung provides best battery
backup.
Explanation:
This graph shows the responses of the respondents related to the statement “The
prices of Samsung mobile phones are reasonable”. This statement is aimed at identifying the
consumer perception about the price of Samsung mobile phones. 53 persons responded to this
statement out of which 7.5% of the respondents strongly disagreed, 13.2% of the respondents
disagreed, 30.2% of the respondents neither agreed nor disagreed, 35.8% of the respondents
Most of the respondents agree that the prices of Samsung mobile phones are very
reasonable. The people of Pakistan are price sensitive. The reasonable prices of Samsung
Explanation:
This graph shows the responses of respondents related to the statement “Samsung
mobile phones have a good resale value”. The purpose of this statement is to identify the
consumer perceptions about the resale value of Samsung mobile phones. 53 persons
responded to this statement out of which 7.5% of the respondents strongly disagreed, 9.4% of
the respondents disagreed, 28.3% of the respondents neither agreed nor disagreed, 43.4% of
the respondents agreed and 11.3% of the respondent strongly agreed to this statement.
The vast majority of the respondents agree that Samsung mobile phones have a good
resale value. Most of the people choose this brand because of its features, reasonable price
Explanation:
This graph shows the responses of respondents related of the statement that high price
of Samsung mobile phone is justified with respect to its features. This statement is aimed at
identifying the consumer perceptions related to this statement. 53 persons responded to this
statement out of which 0% of the respondents strongly disagreed, 7.5% of the respondents
disagreed, 30.2% of the respondents neither agreed nor disagreed, 37.7% of the respondents
agreed and 24.5% of the respondent strongly agreed to this statement. In summary, most of
the respondents agree that high price of Samsung mobile phone is justified with respect to its
features.
Explanation:
This graph shows the responses of the respondents related to the statement that
Samsung offers appropriate price discount. The main purpose of this statement is to identify
the consumer perception about price discount offered by the Samsung. 53 persons responded
to this statement out of which 9.4% of the respondents strongly disagreed, 18.9% of the
respondents disagreed, 49.1% of the respondents neither agreed nor disagreed, 13.2% of the
respondents agreed and 9.4% of the respondent strongly agreed to this statement.
The vast majority of the respondents are neither agree nor disagree to this statement.
They are neutral with respect to the statement that” Samsung offers an appropriate price
discount”.
Explanation:
This graph shows the responses of respondents related to the statement that Samsung
mobile phones are available at every convenient location. 53 persons responded to this
statement out of which 0% of the respondents strongly disagreed, 5.7% of the respondents
disagreed, 15.1% of the respondents neither agreed nor disagreed, 35.8% of the respondents
Most of the respondents strongly agree that Samsung mobile phones are available in
every convenient location. Consumer can easily purchase Samsung mobile phones because
Explanation:
This Bar graph shows the responses of the respondents related to the statement that
the convenient location help the consumer during warranty claims. This statement is aimed at
identifying the consumer perception about the convenient location. 53 persons responded to
this statement out of which 5.7% of the respondents strongly disagreed, 22.6% of the
respondents disagreed, 35.8% of the respondents neither agreed nor disagreed, 24.5% of the
respondents agreed and 131.% of the respondent strongly agreed to this statement.
The vast majority of respondents are neither agree nor disagree to this statements that
Explanation:
This pie chart shows the responses of the respondents related to the question “Would
you feel comfortable and safe in purchasing Samsung mobile phones online?” The main
purpose of this question is to identify the consumer perception about online retailers of
Samsung mobile phones. In this Pie Chart the red color represents the percentage of persons
who answered “No” to our question and the blue color represents to the persons who
answered “Yes” to our question. 52 people responded to this question, out of which 57.7%
purchasing Samsung mobile phone online. Because of fraudulent activities they people feel
Explanation:
This graph shows the responses of respondents related to the statement that
advertisement is the main reason behind your preference to Samsung. 53 persons responded
to this statement out of which 3.8% of the respondents strongly disagreed, 9.4% of the
respondents disagreed, 34% of the respondents neither agreed nor disagreed, 43.4% of the
respondents agreed and 9.4% of the respondent strongly agreed to this statement.
Most of the respondents agree that advertisement is the main reason behind their
preference to Samsung mobile phone. This graph also illustrates that advertising increases the
Explanation:
This pie chart shows the responses of the respondents related to the question “Would
you recommend Samsung mobile phone to your friend?” The main purpose of this question is
to identify the consumer perception about goodwill of Samsung mobile phones. In this Pie
Chart the red color represents the percentage of persons who answered “No” to our question
and the blue color represents to the persons who answered “Yes” to our question. 53 people
responded to this question, out of which 13.2% answered “No” and 86.8% answered “Yes”.
phones to their friends and families. Because Samsung provides good quality mobile phones,
better sound system, good battery management system and better touch sensitivity therefore,
most of the people recommend Samsung mobile phones to their friends and families.
Explanation:
This graph shows the views of respondents about the information provided in
advertisement of Samsung mobile phones. The main purpose of this statement is to measure
out of which 1.9% of the respondents strongly disagreed, 5.7% of the respondents disagreed,
22.6% of the respondents neither agreed nor disagreed, 41.5% of the respondents agreed and
Most of the respondents agree that Samsung mobile phones advertisement provides
true information. Out of 53 respondents only 4 respondents disagree that Samsung mobile
Explanation:
The graph is aimed at identifying the consumer perception about the brand image of
Samsung mobile phone. This graph shows the responses of respondents related to the brand
image of Samsung. 53 persons responded to this statement out of which 3.8% of the
respondents strongly disagreed, 3.8% of the respondents disagreed, 22.6% of the respondents
neither agreed nor disagreed, 28.6% of the respondents agreed and 41.5% of the respondent
Most of the respondents strongly agree that Samsung is the best brand in the market.
Because Samsung not only invests on marketing but also invests on brand loyalty therefore,
Explanation:
This graph shows the responses of respondents related to the statement that Samsung
mobile phones are the most users friendly in market. 53 persons responded to this statement
out of which 0% of the respondents strongly disagreed, 7.5% of the respondents disagreed,
15.1% of the respondents neither agreed nor disagreed, 39.6% of the respondents agreed and
Most of the respondents agree that Samsung mobile phones are the most users
friendly in market. Samsung mobile phones are easy to use and every one can easily
Explanation:
This graph shows the responses of respondents related to the statement that Samsung
mobile phones are the most innovative in market. This statement is aimed at identifying the
this statement out of which 0% of the respondents strongly disagreed, 1.9% of the
respondents disagreed, 34% of the respondents neither agreed nor disagreed, 41.5% of the
respondents agreed and 22.6% of the respondent strongly agreed to this statement.
Most of the respondents agree that Samsung mobile phones are the most innovative
in market. Samsung always invests in brand new ideas and innovations to win their market
share. The continuous innovations of Samsung mobile phones have enormous impact over
Explanation:
This graph shows the responses of respondent related to the target market of
Samsung. The main purpose of the statement is to identify the consumer perception about
target market of Samsung. 53 persons responded to this statement out of which 3.8% of the
respondents strongly disagreed, 7.5% of the respondents disagreed, 28.3% of the respondents
neither agreed nor disagreed, 39.6% of the respondents agreed and 20.8% of the respondent
strongly agreed to this statement. Most of the respondents agree that Samsung as a brand is
DEMOGRAPHICS
Explanation:
This pie chart represents the age category of the people who respond to our survey. In
this pie chart the red color represents the number of people who are 25 and less than 25 years
old, red color represents the number of people who fall within the 25-35 years age bracket,
yellow color represents the people who fall within the 35-45 years age bracket and the green
color represents the people who are 45 and more than 45 years old.
This graph shows that most respondents fall within the 15-25 years age bracket which
accounts for 78.8% of the total respondents. This was followed by the 25-35 years age
bracket which accounts for 19.2% and finally the 35-45 years of experience which makes up
Explanation:
This pie chart shows the number of male and female who participated in this survey.
In this pie chart the blue color represents the number of male who participated in this survey
and the red color represents the number of female who participated in this survey. Total 52
people participated in this survey out of which 73% of the respondents are male and 27% of
the respondents are female. This graph also shows that the number of male in this study
exceeds the number of female respondents by 38(73%) to 14(27%). In our survey out of 52
Explanation:
This pie chart represents the qualification of the respondents who participated in this
survey. In this pie chart the yellow color represents the number of respondents who are
enrolled in bachelor degree, the green color represents the number of respondents who are
enrolled in master degree, the red color represents the number of respondents who are
enrolled in intermediate degree and the purple color represents the number of respondents
52 people responded to this question out of 46.2% of the respondents are enrolled in
bachelor degree, 0% of the respondents are enrolled in matriculation degree, 36.5% of the
respondents are enrolled in master degree, 11.5% of the respondents are enrolled in
Explanation:
This Pie chart represents the occupation of the respondents who participated in this
survey. In this pie chart the yellow color represents the students, blue color represents the
businessman, red color represents the salaried persons and green color represents the
respondents having other occupation. 52 people responded to this question out of which
69.8% of the respondents are students, 15.1% of the respondents are salaried persons, 13.2%
of the respondents are businessman and 1.9% of the respondents are those who have no
occupation. This pie chart also shows that most of the respondents who participated in this
CONSUMER PROFILE
The ideal consumer of Samsung mobile phone is a less than 25 years old male. He is bachelor
student. He strongly agrees that Samsung mobile phones have good quality and are durable.
He also feels that Samsung mobile phones have a better touch sensitivity than other brands
and however is neutral about the strength of Samsung’s body. He feels that the Samsung
battery backup is good. He is quite skeptical about the price reasonability of Samsung mobile
phones. The ideal consumer of Samsung mobile phones also feels that Samsung mobile
phone has a good resale value and the high price of Samsung is justified with respect to its
features.
On the other hand he is neutral about the appropriate price discount offered by the Samsung.
He strongly agrees that Samsung mobile phones are available in every convenient location.
But he is neutral that convenient location helps him during warranty claims. The perception
of our ideal consumer is not good about the online retailers of Samsung mobile phones. He
feels uncomfortable while purchasing Samsung mobile phones online. He agrees that
advertisement is the main reason behind his preference to the Samsung mobile phone.
Because the overall quality of Samsung mobile phone is very good therefore he recommends
Samsung mobile phone to his friends. He also agrees that Samsung mobile phones are most
users friendly and innovative in market and Samsung as a brand is for high class people. He
feels that Samsung mobile phone advertisement provides true information to the consumer.
At the end he strongly agrees that Samsung is the best brand in market.
BRAND RE-LAUNCH
companies. In fact many new brands or well established brands fail badly in this phase.
Introducing a new product into the market is a significant business achievement. Introducing
a new product and service to the market is one of the best opportunities to increase sales
revenue. In the process of new product development it is the final and most important step to
My research was aimed at studying the market response to one of the most successful smart
phone brands that is Samsung. The study focused on establishing opinion of general
consumers regarding the marketing and competitive strategy of the brand. In the process of
new product development it is the most important strategy to introduce the new product and
service in the market that fulfill all the customer’s needs. It is very important to launch a new
COMPETITIVE STRATEGY
SEGMENTATION
Segmentation means to divide the whole market into several homogeneous groups. In
re-launch process Samsung should divide the whole market into different groups on the basis
Types of Segmentation:
• Demographics
• Psychographics
• Geographical
• Behavioral
Demographic
In demographic segmentation Samsung should divide the whole market into different groups
on the basis of different characteristics such as Gender, Age, Income, Ethnicity, marital Status and
education etc
Psychographic
In the psychographic segmentation Samsung should divide the whole market into
different groups, on the basis of different characteristics such as the emotions and personality
Geographic
In geographic segmentation Samsung should divide the whole market into different
Behavioral
This refers to the purchase nature of the consumers Usage Level, Brand Loyalty etc
• Consumers want that the price of a product should be justified with respect to its
features.
TARGET MARKETING
Targeting or target marketing refers to decide which potential customer segments the
company will focus on. Marketing segmentation and targeting are equally important for
• Manufacture their products for all classes such as lower class, middle class, upper
Samsung should also target the market on the basis of geographical location.
MARKETING STRATEGY
PRODUCT ASPECTS
According to my literature review the product can be divided into two product, core product
and actual product. There is another type of product that can be called augmented product
that is around the both core and actual product. Any kind of product is important for the
marketer whether the product is the core product or the actual product. Core Product is
related to provide the central benefits to the end users. And it is also defines the benefit of the
customer when customers buy the product. Actual product is related to the components of the
product and other things that are related to the product such as packaging, brand name,
quality, design, features and colors. On the other hand the augmented product provides the
other benefits associated with the actual and core product such as warranty and after sales
service.
If analyzed from a product perspective the study has concluded that most of the consumers
seem satisfied with the product as a whole. However, there exist a significant percentage of
consumers who feel dissatisfied with the product itself as a whole. Every entrepreneur wants
their customers to be happy. It is for that niche market that I aim at re-launching the brand.
In my literature review the product includes quality, features, design, color, packaging,
warranty and brand name. Through re-launching the brand and by introducing a successful
product or a product that fulfilled the customer’s need, Samsung can satisfy those consumers
PACKAGING:
review insists on such product dimensions. I strongly feel that Samsung should improve its
packaging by making it more attractive to look at. For most of the organization packaging is
the sales promotion tool. Most of the time the consumer’s purchasing decision depends on the
Because packaging represents the product quality and increases the sales of product
and packaging also increases the image of the product in the mind of customer. Furthermore
the color of packaging attracts the attention of the consumers therefore I strongly feel that
Samsung should improve its packaging quality, packaging color, and other characteristics of
packaging. Samsung should also provide secure packaging so that the retailers and
shopkeeper can never re-pack the Samsung mobile phone. Moreover the secure packaging
QUALITY:
quality of the product can be assessed by the customer on the basis of the warranty that is
provided by the manufacture of that product. The quality of product should be according to
the customer’s expectation. If the quality of the product is not according to the customer’s
expectation then the experience of using the product will not be pleasant and that affect the
product very badly. Taste is the important factor to be considered when the consumers buy
But according to my survey a significant Percentage of the consumers are not satisfied
with the quality of Samsung mobile phone. They want better quality mobile phone. Samsung
should pay more attention on the quality of their products. I suggest that Samsung should
focus on their product‘s quality because there are multiple brands in the mobile phone
industries if you don’t deliver the product’s quality according to the customer’s expectation
than the customer will quickly switch to the other brand. If you satisfy the customers with the
quality of your mobile phone, customer shall buy you product in the future.
On the other hand quality of the product contributes to the long-run profitability.
Quality is the critical element that increases the customer’s loyalty. The quality of the product
represents the reputation of the business. Moreover the quality of a product is the main
element upon which the price of that product depends. If the quality of product fulfills the
customer’s expectation, you can charge high price for your product. According to my
observation, the quality of Samsung mobile phones is not very bad. Samsung should maintain
the quality of their products and try to improve it. Furthermore Samsung should fulfill the
expectations of those consumers who are unsatisfied with the quality of Samsung mobile
phones.
Samsung should also focus on different attributes of their mobile phones such as
sound management system, battery management system, touch sensitivity and technology.
Most of the consumers attracts through newer technology. Due to the better technology the
most of the consumers shift from one phone to other. According to my observation Samsung
should also take out a periodic survey in order to identify the new technological feature
COLOR:
related to the color of Samsung mobile phones, my literature review insists on such product
dimensions. I strongly feel that Samsung should provide mobile phones with different colors
to their consumers to increase the sales of their mobile phones. Color plays an important role
while purchasing a product. Color is the most important attribute of a product that attracts the
In other words the purchasing decision of a product is affected by the color of that
product. Samsung should re-launch every model of their mobile phone in different colors.
More than 50% of the consumer purchasing decision depends on the color. In a product there
are different attributes that are important to choose it, but color accounts for more than 50%
to choose the product. Furthermore color of the product is the main attribute that connects the
In different culture each color is associated with different feelings and every color has
different meaning. The color choice of women is more different than men. After keeping in
mind all the above mentioned point, Samsung should hire a color advisor who helped them
while identifying the best suitable color of their products. The consumer product evaluation
process is affected by the visual appearance of that product. Because forecasting is the most
important factor in the product development process therefore, Samsung should also forecast
DESIGN:
There are different non-price factors that play an important role in the success of a
product; Design of the product is one of them. Although no question was posed to consumers
to identify the consumer perception related to the design of Samsung mobile phones, my
literature review insists on such product dimensions. I feel that Samsung should provide
mobile phones with different designs to their consumers to increase the sales of their mobile
phones. After the color attribute of the product, design plays an important role while
purchasing a product. Same like Color, design is also the most important attribute of a
product that attracts the attention of customers during their decision making process.
In other words the purchasing decision of a product is also affected by the design of
that product. Samsung should re-launch every model of their mobile phone with different
designs. In a product there are different attributes that are important to differentiate it; design
is the main attribute that differentiate the product from the competitors. Furthermore design
of the product is also the main attribute that connects the product to the customer more
quickly. The consumer product evaluation process is affected by the visual appearance of that
DURABILITY:
Durability of mobile phone is not the most important attribute to be considered but it
has a significant effect on the choice of customer. Every person wants their ideal mobile
phone should have the attribute of durability. The sustainability of the mobile phones can
increase their life span. The sustainability of mobile has a major impact on the customer’s
order to identify the consumer perception related to the durability of Samsung mobile phones.
Samsung mobile phone but a significant percentage of consumers are unsatisfied with the
Samsung mobile phones are very durable but the body color of Samsung mobile phones is
spoiled very quickly. According to my observation Samsung should use such type of body
mobile phone packaging or at point of purchase. Moreover the life time of Samsung products
As you know that battery is very important for the mobile phones as soul is for live.
The quality of mobile phone is affected by the battery management system. Higher the
battery backup time of mobile phone, the higher the quality will be. According to my survey
most of the consumers are unsatisfied with the battery management system of Samsung
mobile phones. Only a significant percentage of the consumers are satisfied with the battery
Samsung should improve their battery management system. Battery backup is one of
those attributes upon which the quality of Samsung mobile phones depends. Samsung should
focus on battery management system and enhanced the battery backup. If it cannot do so then
they should adopt new innovations such as charging through hearth beat and wireless
charging and charging through solar energy. Furthermore, Samsung should provide free
power and extra small data cable with every new model of their mobile phone. In this way
Samsung can solve the problems of their consumers regarding to the battery backup.
SOUND SYSTEM:
related to the sound system of Samsung mobile phones, my literature review insists on such
product’s dimensions. In mobile phones sound system is used to produce sound alerts such as
incoming call alert and message alerts. According to me no doubt, Samsung mobile phones
have a good sound quality. But it cannot strongly satisfy the consumer’s requirement. Now a
day most of the people like to play music on their mobile phone.
But the problem that is mostly faced by the users of Samsung mobile phones is that
the sound system of Samsung gets screwed up. So Samsung should provide Sound system in
their mobile phone having long life time. And Samsung should use a sound system that does
not spoil quickly. Furthermore Samsung should provide wireless headphones with their
mobile phones.
TOUCH SENSITIVITY:
Every Smartphone has a touch screen. The quality of smart phone also depends on the
touch sensitivity and display quality. Better touch sensitivity of a Smartphone represents
good quality mobile phone. In my survey a question was posed in order to identify the
consumer perception related to the touch sensitivity of Samsung mobile phone. According to
my survey most of customers are satisfy with the touch sensitivity of Samsung mobile phone
but a significant percentage of people are neutral about the touch sensitivity of Samsung
mobile phone.
mobile phone therefore, Samsung should not give more attention to the touch sensitivity but
focus on the other attribute such as Color, Design and battery management.
PRICE ASPECTS
According to my literature review Price is the most important factor for all kind of firms.
Firms charge different kind of prices for different types of product and services. Every time
customers have to pay different amounts to obtain different product for use. The company
can cut down its advertising expense and due to this company can also decrease their current
prices in the market. The companies can decrease their advertising expenses and can transfer
their savings to the customers through price deductions. In this way the company can satisfy
their customers. Price is very sensitive area of marketing. Company can reduce their prices by
According to my literature review the price sensitivity can be determined through a number
of ways:
To determine how much the real sale is on a particular price of a company’s product.
In my survey a question was posed to identify the consumer perception related to the
price of Samsung mobile phones. According to my survey most of the consumers are
unsatisfied with the price of Samsung mobile phones. More than 50% of the consumers are
unsatisfied with the price of Samsung mobile phones. In my survey another question was
posed to identify the consumer perception related to the resale value of the Samsung Mobile
phones. Near to the half of the consumers of Samsung mobile phones are unsatisfied with the
In my survey another question was added to identify the consumer perception about
the high price of Samsung is justified with respect to its features. Most of the consumers are
satisfied but a significant percentage of consumers are unsatisfied with this question.
launch stage Samsung should reduce their prices. Samsung should launch every new model
of their mobile phone after a certain time period. In this way Samsung can increase the resale
According to my literature review all the times every pricing strategy is not suitable
therefore, we have to select a best one strategy. A manager can select the most appropriate
There are different strategies that a manager can use to set the price of their products.
this pricing method. This method adds up a standard percentage of profit in cost.
perception of the buyer depends on all aspects of the product, whether these are non-
• Going-Rate: A price strategy which is set by the company for the purpose of staying
in the market.
• Discount: Price strategy for reducing price from the market price.
• Loss-leader: A price strategy through which a company sets the price below the cost
• Psychological: The strategy through which a company sets the price which seems
• Break Even Pricing: by using this strategy company determine the price of their
product that covers all expenses. At breakeven price company gains no profits and
bears no loss.
being set at the initial stage of the price and then reducing the price according to the
market.
set at the initial stage of pricing for the main purpose of securing the market shares.
• Competitive: This price strategy is related with the price of the competitors.
Company set price according to their competitors for the purpose of competing with
them.
business. Price of a product also affects the purchasing decision of the consumers. The other
three elements of marketing mix affect the costs of product; price is the only factor that
It is very difficult for the marketing manager of Samsung to set the right price for
their product because, most of their consumers are price Sensitive. Too much high prices of
their product reduce the demand of their product and too much low prices of their products
don’t produce the sufficient revenue to cover all expenses related to their business. It is
extremely important to set a right price for the success of a product in the market.
market skimming piecing strategy and market penetration pricing strategy. It is recommended
to the Samsung that Samsung should give more attention on the quality of their mobile phone
and offer their product at reasonable prices. Samsung should charge the reasonable prices for
their products. On the other hand, Samsung should not compromise with the quality of their
products.
Because Samsung Targets elite class people, upper middle class, middle class and
low class people. Therefore Samsung should diversify the types of mobile phones with
In the re-launch process, Samsung should use different piecing strategies according to
New Launch:
• Low price strategy – in the start of new launch stage of product life cycle Samsung
should use low price strategy in order to encourage trail of their products..
• High price strategy – After some time period of launching a new product Samsung
should use high price strategy in order to cover the launch cost and expense of a
product.
Growth Stage:
• Low price strategy – At the growth stage of a product life cycle Samsung should use
low price strategy for a short time period in order to prevent new competitors entering
• High price strategy – At the growth stage of product life cycle Samsung should use
• Low price strategy – At the decline or maturity Stage of product life cycle Samsung
• High price strategy – At the maturity or decline stage of product life cycle Samsung
should use high price strategy to maximize the revenue in order to invest in a new
project.
After deciding the pricing strategy, Samsung should take into account different other factors
in order to determine the actual amount of money Samsung will actually receive. Samsung
• Seasonal allowances: Reductions given when an order is placed during seasons that
typically have low sales volumes to entice customers to buy during slow times.
channel members for performing some function such as warehousing and shelf
stocking.
• Price differences among target customer groups: Pricing variance among target
markets.
regions.
• Volume discounts and wholesale pricing: Price reductions given for large
purchases.
• Cash and early payment discounts: Policies to speed payment and thereby provide
liquidity.
• Credit terms: Policies that allow customers to pay for products at a later date.
The methods discussed here should be a base from which to construct your price. Your
options will vary depending on how you choose to sell your product. For instance, if you
make a product but don’t sell it directly to the customer, then you will want to know who sets
the retail price and what margin they will require. Tracing the path of your product from
production to final purchase is a useful exercise to discover this information. The research
needed to understand the pricing along the distribution path will be more than worth the time
it takes. Whatever your price may be, ultimately it must cover your costs, contribute to your
image by communicating the perceived value of your product, counter the competition’s
offer, and avoid deadly price wars. Remember, price is the one “P” that generates revenue,
while the other three “P’s” incur costs. Effective pricing is important to the success of your
business.
PLACEMENT ASPECTS
According to my literature review Place is an important factor for the success of any brand.
The basic purpose of producing goods is to sell them to the customers. Distribution is the
channel or route, through which goods move from the source to end user. With the evolution
of the distribution network, the relationship between the manufacturers, distributors and end
users have been improved. A company can use these channels to sale their product to the
target customer. Companies should provide their product to the customers at the right place
In this element of marketing mix there are different distribution channels that are
involved such as distributors, retailers and wholesalers. Company can use different direct and
in direct channels to distribute its products in the market. Direct channel is the best
distribution channel that is used by the producer. The most of the successful companies use
direct channel for the success of their business. It is a very motivated and cost saving strategy
a company chooses.
Phones. Most of the consumers are satisfied that Samsung mobile phones are available at
every convenient location. According to my observation Samsung mobile phones are easily
available in the market. But the convenient locations don’t help during warranty claims. In
the re-launch process Samsung should open at least one service center in a city. In this way
Samsung can satisfy those consumers who are dissatisfied with the warranty claims of
DISTRIBUTION CHANNELS:
between company and their final consumer. With the evolution of the distribution network,
the relationship between the manufacturers, distributors and end users have been improved.
Company’s sales depend on the choice of channels. Manufacturers choose their distribution
channels according to the profit they want to earn because if the distribution channel fails, the
company has to bear loss. If a manufacturer takes a wrong decision while selecting the
distribution channels then the all other elements of marketing mix will be affected. So
distribution is very important for all the types of organizations. There are different types of
distribution channels.
Through this distribution channel a company distributes their products directly to the
end users. A direct distribution channel is managed by the manufacturer itself. In direct
distribution channel there is no intermediaries. It is very motivated and cost saving channel. it
Through this distribution channel a company distributes their products to the end
connection between manufacturer and end users. The indirect distribution channel relieves
the manufacturer from the problem of distribution. In this way the manufacturer can fully
focus on the production. There are different parties involve in indirect distribution such as
Indirect distribution channel includes one level channel, two level channels and three
level channels. In one level channel there is only one intermediary that is retailer. In two level
channel there are two intermediaries that are wholesaler and retailer. Three level distribution
DISTRIBUTION STRATEGIES:
There are different distribution strategies that can be used by a company in order to distribute
Intensive distribution
Exclusive distribution
Selective distribution
distributes their product by using all available distribution channels. It is a type of distribution
strategy in which a company sales their products through as many outlets as possible.
supplier and a retailer granting the retailer exclusive rights within a specific geographical area
market. But these convenient locations don’t help the customers during warranty claims. In
the re-launch process Samsung should open at least one service center in a city. In this way
Samsung can satisfy those consumers who are dissatisfied with the warranty claims of
Samsung mobile phones. On the other hand there is no doubt that the direct distribution will
give the whole control to the Samsung company over their product but I recommend to the
provide their products to the customers at their convenient location. And Samsung can sale
their products in a large number of countries. Moreover Samsung should identify the
channels conflict and try to solve it. Furthermore, Samsung should use Intensive distribution
strategy. Because through this distribution strategy; Samsung can sale their products through
SUPPLY CHAIN
Supply chain is a chain of suppliers that add value in the product and service and
distribute it to the end users. Supply chain includes all the activities involved directly or
indirectly in order to fulfill the customer order. Supply chain is a network that facilitates in
Supply chain management is the management of all activities in the supply chain for
the purpose of manufacturing and providing goods and services that provide value to the end
users. The main purpose of supply chain management is to improve the overall performance
There are different supply chain strategies that a company can use in order to improve
The main focus of the supply chain strategy is on the efficient flow of services and
material, keeping inventories to a minimum. The primary goal of this strategy is to reduce
cost. The product design strategy used in this supply chain strategy is minimum product cost.
Moreover, the pricing strategy used in this supply chain strategy is low margin pricing
strategy. And the inventory that is used in this supply chain strategy is minimizing inventory
strategy.
Furthermore, the supplier selection strategy that is used in this supply chain strategy
is low cost and low quality supplier strategy. At the end in this supply chain strategy the
The quick response is the main focus of this supply chain strategy. The product design
strategy used in this supply chain strategy is modularity to allow postponement strategy.
Moreover, the pricing strategy used in this supply chain strategy is high margin pricing
strategy. And the inventory that is used in this supply chain strategy is buffer inventory
strategy.
Furthermore, the supplier selection strategy that is used in this supply chain strategy
is speed, flexibility and quality. At the end in this supply chain strategy the manufacture
According to my observation Samsung should use both supply chain strategy. For the
price sensitive and price oriented consumers Samsung should use efficient supply chain
strategy. And for the quality oriented consumers Samsung should use responsive supply
chain strategy. Because by using this strategy Samsung can provide their products to the
consumer very quickly. And by using this strategy company can provide best quality to their
LOGISTICS
The activities involved in controlling the flow of goods, services, and information
among members of the supply chain. the process of planning, implementing, and controlling
the efficient, effective flow and storage of goods, services, and related information from point
This definition includes inbound, outbound, internal, and external movements, and return of
both the functions to operate with a profit. Marketing creates a demand and logistics fills that
demand through effective flow of goods/services. Together they are referred to as Marketing
Logistics.
7R’S IN LOGISTICS:
1. Right products
2. Right quantity
3. Right condition
4. Right time
5. Right place
6. Right customer
7. Right price
Get the right products in the right quantity and right condition, at the right time, at the right
FUNCTIONS OF LOGISTICS:
• 4th Party Logistics: Plays the role of general contractor, by taking over the entire
logistics functions.
How to balance the logistics costs, against the appropriate level of customer service?
GOALS OF LOGISTICS:
Samsung should improve their logistics management in order to provide reduce cost
and provide high quality products to the customers. Samsung should focus on Logistics in
order to get the right products in the right quantity and right condition, at the right time, at the
PROMOTIONAL ASPECTS
consumer for purchasing your product. It is helpful for consumers to get information about
brand. Promotion is a set of activities that a company can use to communicate with their
existing and prospective consumer. The marketing promotion mix includes advertising,
publicity, sales promotion and personal selling. The first three element of promotion mix are
used to interact with the group of potential consumer and the last element of promotion mix is
and the end users. To communicate with consumers, a company can use one or more of the
promotional alternatives that are personal selling, advertising, sales promotion and public
survey shows that the promotion of the Samsung is not up to the mark so Samsung should use
different promotional strategies in order to aware the customers about their products.
In the re-launch process Samsung should use the following promotional strategies.
Advertising
Personal selling
Sales promotions
Public relation
ADVERTISING:
the information of their products to their customers. Different medium are used for
advertising such as the press, television, E-mail, radio and outdoor. Advertisement is most
important element to build strong relations with brands. Advertising strategy can be used in
order to aware the customer about your product. Company uses this strategy to inform their
advertising Samsung do not provide true information to their customers. So in the re-launch
process Samsung should provide true and fair information to the consumers through
PERSONAL SELLING:
personally. In this strategy the company representative sales the products of their company by
using face to face communication. Companies use this strategy to understand customer
priorities. Through personal selling a company can create consumer values in several ways.
For example by using face to face communication a company can solve the consumer’s
problems easily.
Samsung should use this strategy in order to understand the customer’s priorities and
in this way Samsung can identify the problems of those people who are not satisfied with the
Samsung mobile phone and after identifying the problems Samsung should solve those
problems.
indirect advertising that are used to increase sales by giving incentives such as trade
discounts, free trails and temporary drop in prices. By using sales promotion strategy
companies can increase their sales in short run. On the other hand the trade promotion
strategy is used to influence distributors and retailers to buy large volumes of products and to
advertise them.
PUBLIC RELATION:
the positive feature of a business or a product. This strategy is used to increase the goodwill
In the re-launch process Samsung should use all the promotional strategies in order to
gain a large market share and aware the customer about their products.
A question was posed in my survey in order to identify the consumer perception about
the promotions of Samsung mobile phone. A significant percentage of consumers feel that
Samsung should re-launch their mobile phones by using a proper IMC (integrated marketing
plan). In this way Samsung can aware to the customers about their products. Integrated
marketing communication is the way of communication with the potential customers. In the
re-launch process by using promotional activities Samsung can sale their products more and
more.
Integrated marketing communication is a process for planning, executing and monitoring the
communications planning that recognizes the added value of a comprehensive plan that
sales promotion, personal selling and direct response) and combines these disciplines to
The primary goal of integrated marketing communication is to affect behaviors through direct
communication.
• Advertising
• Personal selling
• Publicity/Public Relation
• Sales Promotion
• Direct Marketing
• Personal selling: In this strategy the company representative sales the products of
important means of IMC Plan for a new product that create the relation between the
ADVERTISEMENT
In the re-launch process Samsung should use different types of advertising in order to
promote their slogan. Samsung should promote their brand by using their slogan on different
advertising media.
Samsung should use this strategy to communicate the information of a product to the
customers. Such as “Samsung takes on the solar challenge.” Samsung should use this
strategy to expand their market and to aware the new customer about your products. Samsung
Print media
Electronic media
PRINT MEDIA
Print media is a type of communication media that is handles by space not by time. It
Books
Newspapers
Magazines
Newsletter
Broachers
Billboards
NEWSPAPER
Newspaper and magazine are the most important element of print media. Newspaper
is one of the most important and effective print media of mass communication.
BILLBOARD
ELECTRONICS MEDIA
Electronic media is also a type o advertising media. Electronic media allows information
and ideas to travel almost instantly from its source to the public through the Internet. Because
of the availability of the Internet, electronic media has given billions of people access to
information that they previously would not have had access to. There are different types of
TVC
Face book
Radio
Online websites
In the re-launch process Samsung should use newspapers advertising and billboards
advertising. Samsung should promote their products by using different newspapers and
Sunday Magazines
Dunya Newspaper
Express Newspaper
Samsung should promote their slogans related to every new model of their mobile phone on
the newspapers. And on the other hand Samsung should use billboards for creating teasers
ads. Samsung teaser ads should be brief so that a busy person could read it. Such as:
Samsung should use this teaser ad for not more than 15 days. After 15 days Samsung should
On the other hand Samsung should also use all the electronic Media in order to change the
bad perceptions of the consumers about their products. Samsung should use such types of
electronic media in order to create the good perception of their product in the mind of
customers. Samsung should promote their products through Television advertisement, Face
DIRECT MARKETING
Direct Mail
Telephone
Voicemail m
Catalogs
Concert
Festivals
SALES PROMOTION
Samsung should also use different types of sales promotion tool such as
Discounts
Free Goods
Free Samples
Lucky Draw
Prizes
Coupons
Free Samples:
Because before purchasing, most of the consumers want to use cell phone for their internal
satisfaction. Therefore Samsung should give them a free trail of 5 to 7 minutes inorder to
satisfy them.
Discount:
the time of purchase. According to my survey most of the consumers agree that Samsung
appropriate discount to their customers. In this way Samsung can enhance their sales.
In the re-launch process Samsung should provide the facility to the customers to
return the product if it is not working properly and there is any defects in the mobile phone.
Free Goods:
In the re-launch process Samsung should provide an extra free product with their
mobile phone to their customers such as memory cards. Samsung should provide 4GB or
In the re-launch process Samsung should conduct different events and exhibitions in
PUBLICITY/PUBLIC RELATIONS:
Campaigns
Events
Sponsorship
Seminars
Word of Mouth
Magazines
PERSONAL SELLING:
Samsung should use maximum Tools of Personal Selling to promote their products in the
market.
Door to door
Catalogs
Press Release
Interviews
CONSLUSION
For the conclusion of this research, Samsung is already seen as the current leader in the
Smartphone market. This was due to its innovative products. To finish up with the strategy
analysis section, I have come to my conclusion that the marketing strategy choices Samsung
makes affects its positive outcome in the Smartphone market. In my research on Samsung’s
marketing mix, the company has chosen to use well the differentiation strategy targeting a
features and design quality compared to its competitors. This can be also seen on the research
findings as respondents mention many times the availability of applications. This proves that
The survey was conducted mostly by less than 25 years old male and the overall result
show that Samsung mobile phones have good quality and are durable. Samsung mobile
phones have a better touch sensitivity than other brands and have a better battery backup. It
has a good resale value and the high price of Samsung is justified with respect to its features.
On the other hand Samsung mobile phones are available in every convenient location.
Samsung mobile phones are most users friendly and innovative in market.
In summary, the overall quality of Samsung mobile phone is very good. These are the
RECOMMENDATIONS
Samsung should improve its packaging by making it more attractive to look at.
Samsung should also provide secure packaging so that the retailers and shopkeeper
can never re-pack the Samsung mobile phone. Moreover the secure packaging
Samsung should focus on their product‘s quality because there are multiple brands in
the mobile phone industries if you don’t deliver the product’s quality according to the
customer’s expectation than the customer will quickly switch to the other brand.
Samsung should also take out a periodic survey in order to identify the new
technological feature which the customers want to add in the mobile phones.
Samsung should hire a color advisor who helped them while identifying the best
suitable color of their products. Samsung should also forecast the color trend in the
market in order to provide the color of their products according to the new market
trend.
Samsung should adopt new innovations such as charging through hearth beat and
wireless charging and charging through solar energy. Furthermore, Samsung should
provide free power and extra small data cable with every new model of their mobile
phone. In this way Samsung can solve the problems of their consumers regarding to
Samsung should launch every new model of their mobile phone after a certain time
period. In this way Samsung can increase the resale value of their mobile phones.
Samsung should diversify the types of mobile phones with different prices. So that
Samsung should focus on Logistics in order to get the right products in the right
quantity and right condition, at the right time, at the right place, to the right
point of purchase.
Samsung should open at least one service center in a city. In this way Samsung can
satisfy those consumers who are dissatisfied with the warranty claims of Samsung
mobile phones.
On the other hand there is no doubt that the direct distribution will give the whole
control to the Samsung company over their product but I recommend to the Samsung
Samsung can make it possible to provide their products to the customers at their
convenient location. Moreover Samsung should identify the channels conflict and try
to solve it.
this distribution strategy; Samsung can sale their products through as many outlets as
possible.
Samsung should provide true and fair information to the consumers through
advertising.
Samsung should use all the promotional strategies in order to gain a large market
Samsung should open their stores and service centers at the places where customers
Samsung should use billboards for creating teasers ads. Samsung teaser ads should be
LIMITATIONS
Sample size: In this research, we took a sample of small size. If we take a certain
Mode of survey: In this research, I used only online mode for conducting survey.
The online survey tends to be the most cost-effective modes of survey research, yet
they may not reach those respondents that can only respond using alternate modes.
Results of online surveys and mobile surveys may suffer and differ greatly if
important respondents are left out of the research. Hard-to-reach respondents may be
easier to reach using more traditional methods such as paper surveys or face-to-face
interviews.
Close-ended questions: In this research, I did not use open-ended questions. Surveys
with closed-ended questions may have a lower validity rate than other question types.
Time Period: A limited time period was given to me by the University of South Asia
accessibility and proximity to the researcher, which may not representative and
other countries.
After re-launch survey: In my research I did not conduct after re-launch survey.
After re-launch survey helps while checking the validity of the research.
REFERENCES
Bearden, O. W., & Etzel, J. M. (1982). Reference Group Influence on Product and Brand
Cohen, M. A., Agrawal, N., Agrawal, V., & Raman, A. (1995). Analysis of the distribution in
Cole Ehmke, Joan Fulton, and Jayson Lusk. (n.d.). Marketing’s Four P’s: First Steps for New
Entrepreneurs.
Dezvane, T. M., & Bundschuh, R. G. (2003). "How to MakeAafter Sale Services Pay off.
Marketing Studies. , 1, 1.
GREWAL, D., BAKER, J., & BORIN, N. (1998). The Effect of Store Name, Brand Name
and Price Discounts on Consumers' Evaluations and Purchase Intentions. Journal of Retailing
, 331-352.
Griffith, D. E., & Rust, R. T. (1993 ). Effectiveness of some simple pricing strategies under
Marketing: Perspectives on Its Implications for Scholarship and the Role and Responsibility
Kotler, P., Armstrong, G., Saunders, P. J., & Wong, P. V. (1999). Priciples of Marketing
Kotler, P., Armstrong, G., Saunders, P. J., & Wong, P. V. (2002). Principles of Marketing
Nazari, K., & Eavani, F. (2012, August 07). Marketing mix: a critical review of the concept.
GROUPS, HOMA BAY DISTRICT, KENYA. International Journal of Business and Social
Science .
Sanghvi, V. (2014). The Marketing Mix: A Review. ELK ASIA PACIFIC JOURNAL OF
Stern, L. W., & T., R. (1980). "Distribution Channels as Political Economies: A Framework
Wai, C. K. (2003). The Role of Pricing in Relationship Marketing : A Study of the Singapore
Wu., D., Ray, G., & Whinston, A. B. (2008). Manufacturer's Distribution Strategy in the