Professional Documents
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ARPAN ANAND
SUBMITTED BY:
We would like to acknowledge here the guidance I received from Prof. Arpan
Anand who took such keen interest in my efforts and helped me in finding the
way through the maze. To the best of our knowledge and beliefs, the information
contained in this report is true.
We would also like to mention the constant encouragement & support from
our parents who always encouraged us to aim for the best, and also our family
members without them this work would not have been completed.
This report is going to analyse the marketing strategy Samsung has used for
some of its phone devices in the phone market. The report will look into
products introduced within the last 7 years. This report would also look into
rapid change of technology in high tech market and continuous introduction of
new innovative products within a short period of time. This report will present
the marketing mix of Samsung Smartphone's in their introduction stages, to
have an understanding on how Samsung has differentiate itself using the four
P’s of the marketing mix to gain a step ahead of its competitors. Also we will
see how Samsung recognizes every need in the market and how it deal with
different customer segment. The report also provides the future prospects of the
company in light of the competition and the slowdown in the consumer
electronics market.
Samsung Electric Industries was established in 1969, in Suwon, South Korea-
headquartered. From TVs to semiconductors Samsung Electronics makes
everything today. It released its first Android cell phone in 2009, and can be
credited with the launch of the primary Android tablet in 2010. The
organization is among the greatest players in the smartphone market on the
planet. It has recently developed smartphone running Tizen OS, as an
alternative to its Android-based smartphones.
This image also shows the product development the company has made in the
product over the years.
This the graph which shows the market share of Samsung mobiles in 2017 in
percentage.
2017-08
30
24.59
25
20
15 12.87
10.19
10 5.876.845.76 5.144.2
5 2.553.69 2.881.83 1.74
0.99 1.391.250.940.90.880.740.640.520.440.30.410.560.190.280.230.27 0 0.210.190.010.11
0
LG
Oppo
Xiaomi
Lenovo
BBK
Lyf
Yu
Coolpad
Panasonic
Xolo
Reliance Digital
Micromax
Gionee
Intex
Spice
Huawei
OnePlus
HTC
Tecno
Infinix
Unknown
Mobicel
Motorola
Nokia
Asus
Lava
Itel
Samsung
Apple
LeEco
Karbonn
Sony
InFocus
Sony Ericsson
This the graph which shows the market share of Samsung mobiles in 2018 in
percentage
2018-08
25 23.58
20.2
20
15
10.06
10 7.28 6.27
4.54
5 2.86 3.572.142.793.08 2.09
1.37 0.820.771.011.170.530.390.550.420.620.380.59
0.320.240.250.220.250.160.430.140.130.20.09
0
Xiaomi
LG
Lyf
Oppo
BBK
Panasonic
Yu
Micromax
Coolpad
Intex
Xolo
Lenovo
Gionee
Reliance Digital
Spice
Huawei
OnePlus
Asus
Samsung
HTC
Tecno
Infinix
Unknown
Mobicel
Motorola
Nokia
Lava
Itel
Apple
LeEco
Karbonn
Sony Ericsson
Sony
InFocus
In above graphs both the years have maximum market share of Samsung
mobiles.
Samsung has vast product mix portfolio. The brand image of Samsung are the
Samsung smartphones such as note series of the Samsung galaxy series. Some
of the product of Samsung includes:
1. Tablets
2. Mobile phones – Smart phones, normal phones,
3. Televisions – LEDs, LCDs. Plasma TV, SMART TV, HDTV etc
4. Cameras and Camcorders
5. Refrigerators
6. Air conditioners
7. Washing machine
8. Microwave ovens
9. IT – Laptops, printers and accessories
Samsung has achieved a status symbol for the customers. At the same time,
Samsung is known for its service and customers know that Samsung gives a
very fast service for any of its product. Thus, the marketing mix of Samsung
product portfolio is one of the strongest point for Samsung.
Skimming price –
One of the best smartphones in the market is of Samsung. Because of its features
and the USP’s provided by them, they are the market leaders. Samsung uses
skimming price policy. For example, Samsung launches a new product with
different variants of storage capacity, it prices the product higher. But when other
competitors launch a smartphone with identical features, Samsung lowers the
price and easily prevents the reduction of its market share due to the launch of the
competitor.
Competitive pricing –
Competitive pricing is the process of selecting strategic price points to best take
advantage of a product or service based market relative to competition. This
pricing method is used more often by businesses selling similar products, since
services can vary from business to business, while the attributes of a product
remain similar. This type of pricing strategy is generally used once a price for a
product or service has reached a level of equilibrium, which occurs when a
product has been on the market for a long time and there are many substitute for
the product.
This pricing strategy is also a part of Samsung marketing strategy. Samsung has
not succeeded in becoming the leader in other product categories. Samsung is a
trustworthy brand, but in the ‘home appliances’ product-category, it hasn’t
surpassed LG yet. To prevent the flanking attacks from its competitors in the
market it’s essential for Samsung to use competitive pricing. Also, Samsung is a
not a first mover in these product categories and thus it has to defend its position
in the market. All these help in understanding the pricing strategy in the Samsung
marketing mix.
It is present in multi brand outlet and exclusive brand outlet and on online e-
commerce websites like flipkart and amazon.
Samsung is present in every channel of communication. It mainly focuses on
marketing channel of communication. Sales and Services handle main account
of Samsung and are accountable for corporate sales. Samsung also include
modern retail segment as well. These modern retail include CROMA. Samsung
being a branded product, it is present in each outlet for the customer. Distributor
has a huge investment in Samsung product. One of the major reason for
Samsung’s success in Indian market is its effective distribution system and after
sales service. Samsung have a zonal distribution structure other than their retail
outlet they have various other sales channels like Amazon.com, Big Bazaar.
Samsung sells its products directly to retailers and service providers.
Retailers dealing in technology generally have to include Samsung in their
offerings, because of the brand being world-famous. The distribution is the
strength of Samsung. Samsung also distributes its products using a single
distribution company in a particular location that further distributes the products
to other locations as well.
• Samsung sells directly to the retailers and service dealers. And due to this
strategy, only service dealers are responsible for the corporate sales.
Retailers dealing in technology generally have to include Samsung in
their offerings, because of the brand being world-famous. The
distribution is the strength for Samsung. Samsung also distributes its
products using a single distribution company in a particular location that
further distributes the products to other locations.
Sales
15%
49%
36%
Distributors Retailers
Clearing And
forwarding Agent
Digital plazas
Multi-Brand
retailers
Dealers
Customers
Just like other smartphone brands, Samsung also follows channel marketing as
the distribution medium for its products. Samsung has tie-ups with large as well
as small retail giants like Chroma, Reliance digital, etc that handle the sales of
Samsung.
Apart from Retail stores Samsung sale through their own stores, E-commerce
channels like Flipkart and Amazon are current platform where Samsung sale
their maximum phones nowadays.
Samsung remained the overall leader in the worldwide smartphone market for
2017 despite losing out to Apple in the fourth quarter. The Korean giant shipped
74.1 million units in 4Q17, down 4.4% compared to the 77.5 million units from
last year. Samsung finished the year with 317.3 million shipments, up 1.9%
from the 311.4 million shipments in 2016. Despite the failure of the Note 7
combined with the endless collective pressure from Chinese players along with
Apple, Samsung has managed to remain on top through thick and thin
Samsung will likewise be taking part in the beta keep running of another
component offering feeling investigation of long-frame content. Surveying a top
to the bottom article that weighs up upsides and downsides has generally been
out of the span of estimation investigation. Dark red's new apparatus is intended
to consequently assess them for both a general slant and the diverse experiences
that are uncovered all through.
To get the maximum benefits out of Crimson, users need to be careful to use clean
data and appropriate search times, as Vetter discovered when reviewing a home
appliances advertising campaign starring TV personalities Katherine Ryan and
Joel Dommett called "The Domestics".
400
300
250
150
100
80
50
Samsung had invested 500 million in 2016 and 250 million in 2015 which is much
higher than others companies in mobile manufacturing sector. Samsung had done
right because they are now no 1 in term of selling units in India.
Sales promotion
310
300 270
200
100
0
Oct-09 May-10 oct-nov 2010 Mar-11 Oct-11 Jun-13 Mar-14
Sales in million
Samsung uses various promotional tool. Samsung pull the customer using
advertising technique though their initial times.Promotion is a strong pillar in
the marketing mix of the company. Samsung promotes new products using
newspapers and digital media and various other advertising technique.To take
the advantage of the huge number of followers of celebrities, the company had
invited many celebrities to promote the product. Big hoarding and posters are
put up on highways. Besides advertising, Samsung also uses different
promotional tactics to make customers buy the product. Samsung is also famous
for its product quality and user experience and providing after sale service. Not
only this, Samsung is also known for being a giant in sponsoring events.
Samsung also sponsors major events and offers heavy discounts during national
festivals. It is involved in sponsoring events like Olympic Games and Asian
Games for many years.
Samsung also uses co-branding heavily for all promotions. Example: non-stop
excitement on cutting edge Samsung mobiles powered by Airtel’s unmatched
coverage or using celebrities like Amir Khan and Priyanka Chopra to market
their product in India. They actively promotes the product using social media
campaigns.
Sponsorship is a procedure by which an organization, association or individual
furnishes an individual or association with assets, items or administrations for
business advantage. Sponsorship is a business relationship and ought to be
commonly gainful to the supported individual and the supporting organization.
Most organizations look for an arrival on their help or speculation, extending
from generosity inside the network to more mind-boggling advantages, for
example, media presentation, expanded deals and brand mindfulness.
Sponsorship is tied in with building long haul connections. The more extended
the relationship endures, the more noteworthy the esteem that can be gotten from
it. It's anything but a correct science, be that as it may, and shows itself in a large
group of various structures on a wide range of levels. Mukesh Ambani-owned
Mumbai Indians, the most successful franchise of the Indian premier League
(IPL), has signed Samsung as its lead sponsor for the next three years, replacing
Videocon NSE 2.70 %. The deal with Samsung is worth about Rs 25 crore per
year, according to sources. Mumbai Indians (MI) is the only team in the league
that has won the IPL three times and 100 T20 matches. This, sources say, has
helped drive its brand value.
From the report we can conclude that marketing mix is very important aspect of
marketing. It is not necessary that companies use all the P’s at the same time but
it is necessary to use mixture of them. We had found that the importance of
using the main marketing mix 4P’s (Product, Price, Promotion and Place) a
company to succeed at the development of products and the development of
company. The company Samsung use the extended mix in developing products
that the consumer needs in putting these in the right place at the right time for
the right price. When we see Samsung development in the company in product
development. By unique understanding and valuing consumers, Samsung
continues to grow within the economy and take the advantage of competition
existing in the market. By constantly adapting and changing marketing mix
through a focus on consumers, it has effectively managed to stay ahead in the
competition and ahead from its rivals.
By addressing the 4P’s SAMSUNG is able to establish a new product
range, by choosing the most effective approach to price, place it is easily
accessible and promote the range to customers. By changing with the change in
external environment it has improved its market position.
Samsung has achieved a status symbol for the customers. At the same
time, Samsung Is known for its service and customers know that Samsung gives
a very fast service for any of its product. Thus, the marketing mix of Samsung
product portfolio is one of the strongest point for Samsung. Samsung is a
trustworthy brand, but in the ‘home appliances’ product-category, it hasn’t
surpassed LG yet. To prevent the flanking attacks from its competitors in the
market it’s essential for Samsung to use competitive pricing. It mainly focuses
on marketing channel of communication. Most organizations look for an arrival
on their help or speculation, extending from generosity inside the network to
more mind-boggling advantages, for example, media presentation, expanded
deals and brand mindfulness. As build reputation around the globe. Therefore, a
most successful company is one who meet all the needs and demand most
effectively at the right time and place.