Course Title: Strategy Fundamental

Course Code: OSL E111

Section: B

Summer 2021

Assignment on

Strategy development of Samsung Mobile Sector in Bangladesh

Submitted to:

Faruq Mainuddin

Department of Organizational Strategy & Leadership

Faculty of Business Studies

University of Dhaka

Submitted by

Name ID
Atanu Mojumder 91908043

Date of Submission: 03-10-2021

 Letter of Transmittal
3rd October, 2021

Faruq Mainuddin

Subject: Submission of term paper.

Dear Sir,

I would like to present my term paper titled “Strategy Development of Samsung Mobile Sector in
Bangladesh” which has been prepared as an integrated part of the course requirement [OSL E 111- Strategy
Fundamental] 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
(Faruq Mainuddin) 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,

Atanu Mojunder (ID: 91908043)

EMBA Program

Semester: Summer 2021

Course: Strategy Fundamental

Department of Organization Strategy and Leadership

University of Dhaka

i
 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, Faruq Mainuddin, 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,

Atanu Mojunder

ID: 91908043

EMBA Program

Semester: Summer 2021

Course: Strategy Fundamental

Department of Organization Strategy and Leadership

University of Dhaka

ii
 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. SWOT Analysis ........................................................................................................................ 8
Chapter 5. Five forces Model of Samsung .............................................................................................. 12
Chapter 6. Comparison and Strategic position of Samsung ................................................................. 15
Chapter 7. Target Market ........................................................................................................................ 17
Chapter 8. Market Positioning ................................................................................................................ 18
Chapter 9. Reason of success ................................................................................................................... 19
Chapter 10. Limitations of Study ............................................................................................................ 21
Chapter 11. Recommendations and Conclusion .................................................................................... 22
11.1 Recommendations ............................................................................................................................. 22
11.2 Market Research, Comparison and Interview ............................................................................... 24
11.3 Conclusion ......................................................................................................................................... 26
Bibliography .............................................................................................................................................. 27

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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.

1
Chapter 2. Research Objectives

The study has been undertaken with the following objectives:

i. To describe their strategy in Bangladesh.

ii. To describe their target customers.
iii. To describe their brand positioning.
iv. SWOT Analysis of Samsung
v. Porter’s Five forces Model
vi. 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.

2
 ▪ 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.
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

4
 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

Religion – Irrespective of religion

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 ► 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.

6
► Range 3: (15000 to 30000) 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.

► Range 4: (31500 to 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 40 to
above.

► These cells have a stylish look and have all the essential features such as well as
advanced functions

7
Chapter 4. SWOT Analysis

SWOT analysis is a strategic planning framework that company managers can utilize to conduct a
successful situation analysis. A SWOT analysis framework for Samsung can help them understand
their internal strategic variables like strengths and weaknesses, as well as their external strategic
components like opportunities and threats.

Figure: SWOT Analysis of Samsung

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▪ Strengths of Samsung

i. Brand Image: Samsung Electronics Co., Ltd. is a globally recognized brand. Samsung
was ranked eighth in the world's most valuable brand in 2020, according to the
prestigious Forbes Magazine. This strong brand value brings the company closer to and
more readily targets its target market.
ii. Smartphone manufacture has a stronghold on the market: Samsung has had a lot
of success in the smartphone market. With an 18.5 percent market share in the first
quarter of 2020, the corporation dominated the global market. Samsung's Galaxy
smartphone line is quite popular. Samsung has a stronghold on the Asian market.
iii. Global availability of the products: Samsung goods are almost always available in
every part of the world. Samsung sold electrical products in 74 countries despite the
global pandemic, thanks to its 230 global bases and more than 287K employees.
iv. Strategic Partnerships: Developing smart partnerships with software developers and
online businesses is always a method for Samsung to increase revenue. As a result, the
corporation receives extra functionality from the developers, which can be used to
improve the quality of their devices. Spotify, for example, has a non-exclusive deal
with Samsung that lets customers to utilize Spotify as a music streaming service.
v. Research and Development: Samsung has always prioritized research and
development not just for the company's growth, but also for the provision of high-
quality products to its customers. It spent more than 17 billion dollars on research and
development in 2019, according to its financial statement, which is fascinating and
exceptional.
vi. Variety of products: Samsung, despite its reputation as an electronics business, also
develops and distributes semiconductor parts, LCD panels, memory, and SIM chips to
other manufacturers. As a result, the company can continue to grow in a variety of
ways. Samsung is also a huge success in every product category it produces, from
televisions to cellphones and refrigerators.

9
▪ Weaknesses of Samsung

i. Brand connection strategy: The world is evolving at a breakneck pace. As a result, it is

past time for Samsung to alter its methods in order to deal with it. Its traditional branding
and communication tactics are in desperate need of a makeover. It is necessary to alter
both the messages and the media. In this instance, social branding is quite crucial.
ii. Drop-in profit: In the covid-19 epidemic, smartphone sales have been dropping since
2020, and the company's earnings has fallen since then. This loss was additionally
exacerbated by the lack of security in Samsung cellphones. Many Samsung Galaxy Note
7 devices had overheated batteries, which resulted in an explosion.
iii. High price: Samsung goods have always been expensive in order to retain their high
quality. Apple, Huawei, and Xiaomi, among others, are attempting to outperform each
other by improving quality and price range. Samsung should concentrate on balancing
quality and economics in order to keep up with and survive this fierce competition.

▪ Opportunities for Samsung

i. New markets: New marketplaces are forming as a result of the government's

agreement to assist with economic development. This will enable Samsung to expand
its already expansive corporate horizons.
ii. Business Diversification: Samsung has a lot of things to sell, but it also has a lot of
new products it might release. People are now aware that it exists. As a result, the
company will benefit from this.
iii. Innovation: Samsung's research and development team is constantly working to come
up with new and inventive concepts. The corporation can take advantage of this
opportunity to gain market control by introducing innovative goods such as the recently
released "Foldable phone." Samsung can easily defeat other manufacturers if a trend
can be established and quality can be improved.

10
▪ Threats for Samsung

i. Impact of Pandemic: This is the time of pandemics. Samsung is one of the most well-
known consumer products corporations. Even if the epidemic has had little effect on sales,
the magnitude of the crisis has not diminished. Samsung's manufacturing, distribution, and
purchasing have all been impacted by the epidemic. Samsung's business strategy has shifted
dramatically as a result of this.
ii. Strong Competitors: Samsung's biggest competitor, though, is Apple. However, younger
Chinese companies such as Xiaomi and Huawei are making rapid strides in the market.
These new companies are producing and selling smartphones at far lower prices than
Samsung, which could be a cause for concern. On the contrary, while Apple does not offer
lower-cost items, its marketing strategy aims to make a stronger impression on the market
than Samsung's.

11
Chapter 5. Five forces Model of Samsung

Samsung has remained in the news in recent years for a variety of reasons. Aside from growing
smart-phone sales, the brand is also noted for technological advancement. Samsung is an
electronics company that has remained committed to innovation and exploration throughout its
history. It has introduced a number of ground-breaking goods to the market. Suppliers are the
sources from which companies receive raw materials for manufacturing purposes. Suppliers are a
significant group with significant bargaining power and influence over the company. The lesser
the firm's competitive strength, the greater the bargaining power of its suppliers. Supplier
bargaining power is quite limited in the case of Samsung. The suppliers' limited bargaining
power is due to a number of variables, one of which is their tiny size and financial strength.
Samsung may also easily swap from one supplier to another. Losing business from Samsung
might result in a significant reduction in financial assistance for a supplier. Samsung establishes
the regulations that suppliers must follow and performs regular checks to ensure that they are
being followed. Labor welfare, child labor, and sustainability are all governed by rules. All of
these regulations are crucial, and Samsung has the ability to dismiss suppliers who do not adhere
to them.

Figure: Porter’s five forces model

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Rivalry among Competitive Firms (High): Within the contemporary industry, there is a lot of
competition, especially among the huge and powerful corporations, such as Apple and Samsung.
Because the products they manufacture are identical in appearance and function, competition
between these two enterprises is extremely fierce. Several litigations between the two corporations
have emerged from the competition, which will be detailed later in this story. Because of the
importance of the rivalry between these two companies, as well as other companies in the industry,
Samsung Electronics must be continually informed of its competitors' strategies in order to
improve brand awareness, loyalty, and market share.

Threat of New Entrants (Medium): Samsung Mobiles operates in a very competitive business
in which competitors compete not only on price, but also on innovation and individuality.
Newcomers to the business would have to create customer awareness and branding, which could
be tough given how well-known the present brands are and how many established mobile
companies there are. Companies like Samsung and Apple make premium, top-of-the-market items,
whereas any new company would have to settle for being viewed as a 'knock-off' of inferior
quality. Nonetheless, the history of Samsung Electronics demonstrates that a business may
progress from this position to become a global leader. As a result, new entrants into the business
pose the greatest danger to Samsung Electronics, as they have the potential to design goods that
are significantly different from those now available. There are numerous barriers to entry into the
industry, including the need to quickly build a strong customer base and brand recognition, the
fact that many consumers have strong brand loyalty, the capital requirements for entry, government
regulations, and retaliation by the industry's current leaders. Samsung Electronics must be aware
of any new businesses that emerge in its industry, as well as watch the strategies of any new
businesses that emerge.

The Bargaining Power of Buyers (High): Because of the enormous number of rivals in the
mobile device sector, consumers have a lot of choices. While many consumers value innovation,
price is still a crucial consideration. Consumers can easily switch from one provider to another
based on which offers more options and lower prices. Consumers have substantial negotiating
power because companies in the industry are all appealing to the same group of customers. The
variety of items sold throughout the sector are one element that limits consumers' negotiating
power. Because consumers will rarely purchase a significant number of electronic devices at once,

13
each purchase decision is made based on the options available at the moment. Because of their
strong brand loyalty, many customers are willing to accept higher rates and less services than they
would otherwise. Samsung Electronics must keep aware of the needs of its customers as well as
the various possibilities available from its competitors. This allows the organization to remain
competitive while also understanding how to best exploit its market.

The Bargaining Power of Suppliers (Low): Because there are so many component suppliers in
the mobile industry, it's simple for companies to switch from one to another if the pricing of one
supplier's products become too high. This reduces suppliers' bargaining power and allows
Samsung Electronics to be less influenced by their demands. Samsung Electronics also makes
memory chips, CPUs, and screens, unlike most other smart phone manufacturers. As a result,
Samsung Electronics finds itself in the rare position of serving as a supplier to its main competitor.
However, this also means that Samsung Electronics can supply numerous components to itself,
avoiding the price fluctuations that come with relying on an external supplier.

The Potential Development of Substitute Products (Low): Smart phones are growing more
popular as a technology, as they provide consumers with a variety of features such as voice calling,
applications, and the capacity to play music. The emergence of alternative items is harmful to
Samsung Electronics since it reduces the company's capacity to control the market because
consumers can quickly switch to another product. The patent-centric nature of the industry is one
of the most powerful factors inhibiting the creation of replacement products. Many of the cases
involving Apple and Samsung Electronics have yet to be resolved; however, if it is determined
that either Apple or Samsung Electronics violated patent law, it will be difficult for other
companies to develop substitute products, and may even result in injunctions against some of
Apple or Samsung Electronics' products. Anything that performs the same features as Samsung
Electronics' smart phones and devices is considered a substitute product. Tablets, laptops, PDAs,
and non-smart phones (sometimes known as "dumb phones") fall into this category. However,
their ability to serve as a substitute is restricted. In comparison to smart phones, tablets and laptops
are big, and they lack the traditional functions of a phone. This implies they can't be used as a
direct replacement.

14
Chapter 6. Comparison and Strategic position of Samsung

As recently Bangladesh government setting up rules to get users phone registered, Samsung
negotiation with government and make their brand official through all over Bangladesh. On the
other hand, the main rivals of Samsung like Apple, Xiaomi, Huawei, and all other famous brands
are still now not official all over the country. From this point of view Samsung taking a huge
advantage to grow up their market and build a strong competition with their rivals. Let’s see a
chart,

Figure: Smartphone own’s percentage in Bangladesh

Only in Bangladesh, they have a huge advantage from other mobile companies. Their near
competitive is Xiaomi, where apple is far much away from them. Just not because of android
based operating system, but also Samsung providing some special features of apps and additional

15
services which helps to capture target market easily. Where Apple have own operation system
but most of their apps are paid which kind of difficult for regular mid-level users.

Figure: Overview of some random users

After a small survey over a group of people, this comparison is settled up. Where we can say that
on the perspective of different issues people are usually prefer Samsung and Apple as their regular
use. This survey cover within 16 random users, where each phone company have 4 users. On the
basis of their review this measurement was done.

16
Chapter 7. 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.

17
Chapter 8. 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.

18
Chapter 9. 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.

19
 Brand building campaigns: Last but not least, Samsung's marketing strategy revolved
around creating a limited-time goal to build Samsung's 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.

20
Chapter 10. 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.

21
Chapter 11. Recommendations and Conclusion

11.1 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 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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11.2 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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11.3 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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