Course Title: Strategic Marketing

Course Code: OSL E114

Section: A

Summer 2021

Assignment on

Marketing Strategy of Samsung Mobile Sector in Bangladesh

Submitted to:

Major Reza Ul Karim

Department of Organizational Strategy & Leadership

Faculty of Business Studies

University of Dhaka

Submitted by

Name ID
Rafsana Hossain 91906062
Atanu Mojumder 91908043

Date of Submission: 10-09-2021

 Letter of Transmittal
25th August, 2021

Major Reza Ul Karim

Subject: Submission of term paper.

Dear Sir,

I would like to present my term paper titled “Marketing Strategy of Samsung Mobile Sector in Bangladesh”
which has been prepared as an integrated part of the course requirement [OSL E 114- Strategic Marketing]
of our MBA program.

I have tried my level best to fulfil all the requirements of this report and tried to follow our supervisor’s
(Major Reza Ul Karim) instruction while preparing the report.

It has been a huge learning experience for me and I have put my sincere effort to give this report a
presentable shape and make it as informative and precise as possible. I would like to thank you for your
support, guidelines & observation of my works which made it easy for me as well as provided knowledge
of learning in practical.

Sincerely yours,

Rafsana Hossain (ID: 91906062) &

Atanu Mojunder (ID: 91908043)

EMBA Program

Semester: Summer 2021

Course: Strategic Marketing

Department of Organization Strategy and Leadership

University of Dhaka

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 Acknowledgement

First of all, I would like to express my gratitude to the God, whose invisible guidance helped me to complete
this report.

I am very grateful to our respected supervisor, Major Reza Ul Karim, Department of Organization Strategy
and Leadership, University of Dhaka. Without whom this report would not have been possible to
accomplish. I am so honored to have him my supervisor. Without his direction and basic comments during
the whole period of the written work it would not be possible for me to prepare this.

Sincerely yours,

Rafsana Hossain (ID: 91906062) &

Atanu Mojunder (ID: 91908043)

EMBA Program

Semester: Summer 2021

Course: Strategic Marketing

Department of Organization Strategy and Leadership

University of Dhaka

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 Table of Contents

Letter of Transmittal ..................................................................................................................... i

Acknowledgement ......................................................................................................................... ii
Chapter 1. Background of the study ........................................................................................... 1
Chapter 2. Research Objectives................................................................................................... 2
2.1. Scope of the study................................................................................................................ 2
2.2. Methodology ........................................................................................................................ 3
Chapter 3. Market Segment ......................................................................................................... 4
3.1 Market Segment ................................................................................................................... 4
3.2 Consumer Markets Segments ............................................................................................. 5
3.3 Price Segments ..................................................................................................................... 6
Chapter 4. Target Market ............................................................................................................ 8
Chapter 5. Market Positioning .................................................................................................... 9
Chapter 6. Reason of success ..................................................................................................... 10
Chapter 7. Limitations of Study ................................................................................................ 12
Chapter 8. Recommendations and Conclusion ........................................................................ 13
8.1 Recommendations .............................................................................................................. 13
8.2 Market Research, Comparison and Interview ................................................................ 15
8.3 Conclusion .......................................................................................................................... 17
Bibliography ................................................................................................................................ 18

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Chapter 1. Background of the study

Samsung is one of the world's major mobile phone manufacturers, emphasizing its value
proposition to customers. Samsung mobile phones are a component of Samsung electronics, which
is one of the company's most important divisions. Samsung's mobile phone business, which comes
from a solid foundation, has brought a new dimension to every mobile phone market in the globe,
including Bangladesh. Because Bangladesh is a developing country, these contemporary
communication tools are always in demand. Despite the fact that our nation is impoverished and
underdeveloped, thanks to certain foreign investors and Bangladeshi entrepreneurs, a new age of
information technology has arrived in Bangladesh. After a sluggish start due to the high costs paid
by both mobile phone makers and cell service providers, Bangladesh's cell phone industry grew at
a rapid pace in the early years. In fact, it was greater than the developed countries or the countries
that manufacture it. Bangladeshi customers enthusiastically embrace the telecommunications
business. Furthermore, Bangladesh is a profitable market and a viable place for Greenfield
establishment since it has minimal participation with the global crisis, has a cheap labor force, has
few infrastructure hurdles, and because it is a growing country with a lot of room to start new
businesses. Mobile firms began entering Bangladesh as a result of these concerns, initially through
imports, then through strategic alliances, and finally through greenfield development. Samsung
came into the market through import at first then some strategic alliances and now finally in 2009
with a vision of green field establishment it established its first R&D at Gulshan.

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Chapter 2. Research Objectives

The study has been undertaken with the following objectives:

i. To describe their strategy for market segmentation in Bangladesh.

ii. To describe their target customers.
iii. To describe their brand positioning.
iv. To describe reason of their success/ failure.

2.1. Scope of the study

This report will give great exposure to the mobile market because it includes product knowledge
and market survey from mobile outlets in Dhaka district as well as other districts and information
gathered from fellow colleagues and superiors.

► While working and visiting the shops I:

i. Calculated the display share of the Samsung mobile in shop.

ii. Collected the data of actual monthly sale of the Samsung mobile in few
shops.
iii. Tried to find out the problems that the outlet owners and RDS were facing
while selling the Samsung mobile.
iv. Tried to seek out the customer response for Samsung mobile by asking the
owner of the shop, the customers themselves as well as checking with the
service center.
▪ Scope:
i. Bangladesh has a population of 156,050,883 and purchasing power parity
(PPP) $241.1 billion.
ii. The total number of cellular customers is 65.14 million with a GDP per
capita ($) of 690 and 32% mobile penetration making 4.7% real GDP
growth.

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 iii. Bangladesh has the youngest population amongst the South Asian countries.
There are a lot of people in the different income categories nearly the two
third population is below the age of 35 and nearly 65% is below 25.
iv. There are 117038162 people which is about 75% of the total population
living in the rural areas and mostly working as wage earners. And only 1o%
of the total population is rich households.

2.2. Methodology

Research methodology is considered as the nerve of the project. Without a proper well organized
research plan, it is impossible to complete the project and reach to any conclusion. The project was
based on the survey plan. The main objective of survey was to collect appropriate data, which
work as a base for drawing conclusion and getting result.

i. Research design: Research design specifies methods and procedures for study. In this
study my key concern was to know the demand of different mobile phones, about
competitors, and potential for Samsung procedures to be used for the study among
retailers/dealer and customer. However, it was purely personal survey and interviews.
ii. Data Source: This report was prepared after collecting data from the retailers/ dealers,
customers.
iii. Primary Data: Primary data were collected by personal surveillance and interview with
retailers/ dealer as well as surveying the customers based on a questionnaire.
iv. Secondary Data: Information regarding the project was collected from various studies
conducted in last few years and various other records of company.
v. Method of Data Collection: Personal surveillance, In-depth interview and survey.

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Chapter 3. Market Segment

3.1 Market Segment

Samsung is a global technological leader in mobile communications, fueling the industry's

development and long-term viability. Samsung uses the tag beyond future to provide high-tech
and innovative goods such as mobile phones, gadgets, and solutions for images, games, media,
and companies throughout the world. Four "segmentation bases" may be used to split the market
into segments: psychographic, behaviorist, geographic, and demographic.

The most basic criterion for segmenting a market are customer needs. Market research is necessary
to determine the demands of clients in the marketplace. Product preferences and demand are
determined using psycho graphic and behaviorist criteria, whereas product design and regional
focus are determined using geographic and demographic factors.

Samsung arguably the biggest player in the world has divided the market into three target groups
which are then divide into nine segments:

i. Tech Enthusiast: early adopters are tech wiz people who are enthusiastic about the
latest technology and apps to hit the ground and become trendsetters to have a
beyond future experience.
ii. Pioneers: the people to whom every new thing is a must have experience where
money is not a fact. They are receptive to advance models and adapt to any
emerging technology.
iii. Social contact: the upwardly mobile, socially conscious segment that uses a mobile
to stay in touch. Today's youth and affluent housewives constitute two major
chunks of the segment.
iv. Media tribe: this segment strives about the media features and wants the sharpest
and finest camera, music and display quality above anything as well as internet
connectivity to get in touch with the latest news about what’s happening.
v. Business Professional: a segment comprising of CEOs, high-profile officials,
industrialists and other high "net worth" individuals who use a mobile phone to
increase productivity at work. Aged between 25 to 45 years, this segment looks for

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 data transmission and other business-related features to give them maximum
flexibility to their tight scheduled work and make it as simpler and convenient as
possible.
vi. Value Maximizes: this segment brings forth full multimedia phones perfect for the
urban people with camera, internet connectivity, FM radio and music in a very
affordable price to get maximum value in a limited cost.
vii. Design Essentials: this segment includes people for whom its all about style. They
want a basic phone but it has to be stylish. Mostly female teens fall into this
segment.
viii. Simplicity Seekers: the people of this segment like to keep it simple and use
phones as a basic mean of communication.
ix. Music Essentials: This segment contains cell phones for music lovers. These
mobile phones are specifically optimized for entertainment, music and games in a
minimal cost range.

Currently in Bangladesh mostly four among the nine segments are selected. The selected segments
are tech enthusiasts, social contacts, Value maximizes and Music essentials.

3.2 Consumer Markets Segments

► Geographic: World region – Asia, China

Country – Bangladesh

Cities – Reach out maximum places

► Demographic: Age – All age group

Gender – Male, Female

Income – All income groups

Occupation – Every sector

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 Religion – Irrespective of religion

► Psychographic: Social class – All class of people

Lifestyles – Urban, rural, and even far villages

► Behavioral : Benefits – Technology

Loyalty status – Moderate Market Segment

3.3 Price Segments

► Range 1: (1000tk – 5000tk) Entry level

► The Samsung phones falling in this range are mostly used by the manual
Workers because they cannot afford a high price mobile phone, some students also
use cell phone from this range as they have the fear of snatch of mobile phone.

► Mobile phones falling in this category are simple phones who only meet the
purpose of basic messaging and calling features and some have additional features
such as VGA camera, Bluetooth, 2GB memory card slot as well as FM radio

► Range2: (5100tk – 15000tk) middle level

► The main users of this segment are middle managers, students, housewives
because they have limited and average salary and cannot afford to spend it on
unnecessary expenses.

► The core feature of this segment is Audio Video Player, FM Radio, Camera,
EDGE, GPRS and Expandable Memory, MP camera, 3G, Wi-Fi, SNS and push
email.

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► Range 3: (15000 above) High-end users

► The cell phones falling in this range are mostly used and popular among the
tech-savvy young and energetic business men fall into this category of age 30 –40.

► These cells have a stylish look and have all the essential features such as well as
advanced functions such as Audio Video Player, FM Radio, Bluetooth, High
resolution Camera, EDGE, GPRS, Expandable Memory, 8Gb and above memory
card slot, Amoled touch screens, HSDPA, Wi-Fi, think free office etc.

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Chapter 4. Target Market

Target Market: The company has its target market, which is anticipated to support the sort of
products and services, by consistently launching new technologically upgraded units of mobile
phones with varied services and features. The firm is certain that its new range of products will be
well received by the target market of sports enthusiasts who will benefit from the phone's sports
services. To the specific fashion enthusiast for the most recent trend and updated fashion design
that is appropriate for their everyday lives. The music driven consumers segment is also the
company top target market due to the music service that the new products have offering. Including
in the said music services are the radio, the mp3, the Champ, and the music player. In market
targeting we have two jobs:

During market targeting Nokia consider two types targeting job

a) Evaluation the market segments

b) Selecting Target market segment

As Samsung has newly started its operations here and still performing market studies it has not
stated any fixed target market for our country. But according to existing situation three target group
could be outlined

i. Innovative: Targeting the tech enthusiasts and trendsetters to give them beyond
future experience with the latest techs and apps in the technology adoption cycle.
This category brings the premium series phones of Samsung and targets the high-
income group.
ii. Sensible: This target market comprises of the average income middle class people
consisting of students, service holders and housewife’s who cannot afford to make
expenses unless necessary.
iii. Essentials: Targeting the low-income group people mostly workers with a vision
to provide them with basic mobile functions and some additional features at lowest
cost possible.

In Bangladesh according to the product line it is found the teens age ranging from 13 to 20 are
target market of Samsung Mobile.

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Chapter 5. Market Positioning

► Market positioning: Samsung has established itself as a rival to Apple in the industry,
but its major goal is to take market domination by 2025. In many situations, market positioning is
reflected by the tag line "Beyond Future," which gives customers a sense of confidence and
attention from Samsung, as if to suggest that the firm understands what they want out of life and
how it can assist. And it understands that technology is only a tool to help you, the consumer, live
a better life. As a result, Samsung employs a mix of aspirational, benefit-based, emotive
characteristics, and competitive positioning techniques. It owns the "human" dimension of mobile
communications, leaving its competitors wondering what to own (or how to position themselves),
having taken the best position for itself.

► Brand Personality: Samsung has a long list of personality traits for its brand, but
employees are not required to know them all. They must, however, recall the overall impression
of the list of characteristics, much as you would when remembering someone you have met. The
Samsung personality is like a high-tech device in your pocket because the focus is on customer
connections, and the human dimension generated by the brand personality flows over into the
positioning strategy for the brand.

► Positioning Product: Samsung's products are subjected to stringent quality standards

in order to provide state-of-the-art technology and product value to its customers. The new release
number of units, which is regarded safe and has the quality of the materials as well as the design
and with its features, is included in the company's top end gadgets. Mobile phone accessories such
as a headphone and memory card, as well as functions such as camera and video, are among the
characteristics that clients desire in their phones. To keep up with the quicker world, it is critical
to identify updated phones so that the firm may stay current and not be overtaken by its rivals, as
well as provide its customers with an experience that is really beyond the future.

► Product Design: In terms of product design, Samsung is continuously on the lookout

for new ideas. Touch feel experience is a hypothesis proposed by Samsung. Every design is based
on human emotions, which are then translated into agronomic to provide the user a more relaxing
experience. The perspective is designed by Emporium Armani, while the true concept is developed
by the VIP center's innovative staff.

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Chapter 6. Reason of success

Samsung's marketing strategy emphasizes the development of new, creative goods that are backed
up by strong branding and promotional activities. Mr. Yun launched a new competitive strategy
aimed at developing and selling outstanding products while also establishing Samsung as a
fashionable, high-quality brand worthy of a premium price. The goal was to create a distinct
position through technological innovation and design that appealed to a younger generation as well
as upmarket customers all over the world. Yun claimed that continuing to compete on pricing will
lead to their demise.

R&D into innovation tech: Samsung has opted to invest heavily in specialized research
and development. Samsung needed to become a pioneer in growing new invention in order to have
a competitive advantage driven by progress. Sony had a competitive advantage in consumer
electronics during the 1990s, but it was founded on simple innovation. The computerized world
necessitated new things, therefore the company invested heavily in developing large-area LCDs,
chipsets, and cell phones. Fast forward to the financial crisis of 2008-2009, when Samsung
invested more than $7 billion on R&D, accounting for about 6% of the company's revenue at the
time. At the time, R&D employed over 25% of the company's workforce.

Product development & design: Samsung also focused on product development and
design, despite the fact that cutting-edge technology does not always guarantee market success.
Their goal was to create things that provide benefits that a portion of buyers will believe to be
worth the price. Because many product benefits are abstract – such as appealing style, a cool
picture, or the nature of the camera – new item development at Samsung often involves a group of
creators who collaborate closely with the company's experts, manufacturing divisions, and
advertising.

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 Brand building campaigns: Last but not least, Samsung's marketing strategy revolved
around creating a limited-time goal to build Samsung's image image. Repairing their marketing
efforts was as important to the success of another major system, because even the most intricate
and well-planned goods are likely to fail unless customers are aware of their existence, can obtain
them efficiently, and feel they are worth the money. Samsung's newly developed and implemented
competitive strategy and marketing campaigns have been a great success. From 2003 to 2008, the
global value of Samsung's brand rose by more than 200 percent, surpassing Sony as the most
valuable consumer-electronics brand.

As a result, by 2009, unit sales had risen to $119 billion, and by 2018, revenue had risen to a
whopping $218 billion thanks to the introduction of the Samsung Galaxy. Samsung wants to reach
$400 billion in sales by the end of 2020, according to its website's goal statement, while also
placing Samsung Electronics' entire brand value among the top five in the world. Furthermore, it
appears like they are continuing to play to their strengths, as Samsung continues to invest in new
technologies and products. The Galaxy Z Flip and the Galaxy Fold, for example, are two of
Samsung's most recent instances of cutting-edge innovation.

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Chapter 7. Limitations of Study

Although I tried my best in preparation of this project, but this study is prone to some limitation.
The market is a vast thing to properly explain and understand any marketing strategies success or
failure is somewhat erroneous. Some limitations acquainted with this report are as depicted
beneath:

i. Time limitation: restriction of time appeared due to the fact that I had collect data
within my working hours and it was not easy get in touch with necessary personnel
as per my convenience and moreover, I had a deadline of submission.

ii. Limitation of data: Some trade secrets and confidential data were omitted as to
protect the privacy of the company and its strategic plans.

iii. Real situation: it is hard to assure that all the information and data provided by the
customers, retailers, distributors and my fellow colleagues as well as appointed
personnel were unbiased and their perception was not influenced by any other
relating incident, event or factor.

iv. Gap of communication: Many customers and dealers/retailers showed less interest
in providing information and haven ‘t cooperated.

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Chapter 8. Recommendations and Conclusion

8.1 Recommendations

Before making recommendations, I must clarify that currently Samsung is in fragile state
where it is undergoing major constructions so all my suggestive thoughts are just based on
the 7 months work duration at Samsung. These are not expert opinions but mere temporary
solutions to cope with the current problematic issues.

i. Revised Product line: The existing product line does not fully satisfy all possible
segments penetrable by Samsung mobiles worldwide product line. Including Lady
Phones and Corporate phones may prove fruitful.

ii. Distribution Management: Currently there is two distributors assigned to ensure

the proper flow of product but there is not much control on them as they are allowed
to work independently. Introducing a supply chain management unit may ensure
the perfect flow and provide more control.

iii. Revised Price Segment: In the existing segment, a worldwide strategy is being
followed. In line with our country’s perspective, it could be suggested to revise the
segmentation strategy where entry level phones will range up to 3000Tk, mid-level
phones up to 10000Tk, corporate phones up to 30000Tk and high-end phones
ranging above 30000Tk.

iv. Increase Service Centers: The numbers of service centers at present are not
sufficient to meet the volume of customers growing every day. Establishing
additional service centers has become quite imminent.

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 v. Promotion based on local taste: Most of the advertisement is taken from
international ads which in many cases are not understandable to the mass people. It
is suggested that billboards, leaflets, brochures and posters to be made according to
local taste which conveys the message in an easily understandable format.

vi. Bringing core competency into focus: In order to stand out as a leader Samsung
must focus on bringing its Core competencies in focus of the mass people to take
over Nokia’s market. Core competencies such as high-tech dual stand by
technology, superior sound and picture quality, applications and other tetchy stuffs.

vii. Collaboration: As a lot of works are done by third parties there lacks co-ordination
of their individual objectives with the common objective. Although the common
goal stays the same but I could be effective to collaborate all the individual
objectives in such a manner that they can be integrated into a single objective which
will give a more effective result.

viii. Reduce Smuggled Sets: In many case Customers get dissatisfied as they many
retailers sell them smuggled sets in a cheaper rate which are either reconditioned or
defective stock lots. Implementing global launching along with mass awareness
campaigns may help to reduce the purchase of smuggled sets.

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8.2 Market Research, Comparison and Interview

Figure: Different models of “Samsung Smart Phone” in different price range

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 Figure: Purchase Moment of a customer

After the theoretical part of the marketing strategy, we take a look over the outlets of Samsung.
After moving a while, people who want to get something in the low or mid-range budget, all of
them preferring Samsung. Cause They grab the market by providing good specifications in a low
and mid-range budget. Also, they are offering some extra facilities like provide earphones with a
handset and gift voucher. Besides those, they also assure a 1-week replacement warranty and 6-
month free servicing which attract customers more. In this way, they build a strong bonding with
all price-range of customers which helps them to hold a strong position in the market.

Even when a customer purchases a phone, we ask him to give a short interview about why he
prefers Samsung rather than other smartphones in the market. In the replay, he shares his
satisfaction level of using a Samsung phone before. Besides he also got the services the
showroom provides to him. Also, right now Bangladesh Government trying to register smart
phone like sim. And Samsung is registered all over Bangladesh. That’s why he can purchase
without a doubt in his mind. This little conversation proves that how strongly consumers believe
in Samsung.

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8.3 Conclusion

From all the analysis made it could be said that Samsung certainly is in the right track to
become market leaders in Bangladesh. As they are doing market studies so all the plans are
still in the initial level require a long period of time to be implemented. Samsung has a
strict policy of operating very small units as they think that big company losses market
sensitivity and customer expectation level. Nevertheless, Samsung is huge company
operating in more than 130 countries in the world.

The initial interest in investing in our country was that the world-wide crisis has few effects
on our countries economy which poses great opportunity to the company. In the process
some factors appeared to me as been overlooked by Samsung as it tried to implement its
worldwide strategy. Before doing so our country perspective should be taken into account
and in many cases as I have seen worldwide strategies have failed to prove to be successful
as they appeared in the rest in the countries. Many of the marketing strategies are currently
being implemented according to our country perspective yet there is a long way to go to
attain market leadership within short term. Not to forget Bangladesh is a very competitive
market and with the entry of cheap Chinese phones meeting the demand of mass people in
a very affordable price poses one of the greatest threats.

As I have submitted a mere fraction of Samsung mobiles whole marketing strategy due to
lack of authorization and preservation of confidentiality. I express my sincerest apologies
for any incomplete analysis. It was my outmost afford to conduct an analysis and make a
report as unbiased as possible. Throughout the report I have made a lot of comments and
suggestions regarding various strategies and unmet demands and segments. In the
concluding stage I would just like to say that considering Bangladesh as an individual
market and not just as a third world country and stick to its MOTO- “innovation to reach
customer expectations”.

Keeping a good connection with the customer by providing quality and innovative products
at higher quantity with lower prices will ensure Samsung to retain its consumer and also
attracting new customers creating a positive perception and attitude towards the brand and
taking it one step further to market leadership.

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 Bibliography

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Retrieved August 18, 2021, from https://thesocialgrabber.com/segmentation-strategy-
samsung/
II. databd. (2020, February 12). DATABD.CO. Retrieved August 19, 2021, from
databd.com.com: https://databd.co/stories/the-smartphone-market-ecosystem-of-
bangladesh-9830
III. gear, g. a. (2021, August 22). gadget and gear. Retrieved August 24, 2021, from Gadget
and Gear: https://gadgetandgear.com/
IV. Islam, M. A. (2011). An evaluation of Samsung's marketing strategy in Bangladesh.
Daffodil INternational University, Bachelors of Business Administrations . Dhaka:
Academia. Retrieved August 16, 2021, from
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n_Bangladesh

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