Group 7

Marketing Assignment
S1-22_MBACTZC411

Course Code: - MBACTZC411

Submitted By: -

Harshita kasaundhan (2021ct21527)

Sneha Priyangha N (2021ct21513)

Mariappan R (2021ct21523)

Saurabh Suman (2021ct21539)

Table of Contents:

Section 1- Q1. Research on target market.............................................................................................7

Potential market and available market..............................................................................................7
Section1- Q2. Market Segmentation.....................................................................................................9
Segmentation based on any 3 criteria...............................................................................................9
Section 2- Q1. Market repositioning....................................................................................................12
1.1 How was it positioned before?............................................................................................12
1.2 Which customer have they chosen to reposition?...............................................................14
1.3 How will it be repositioned?.................................................................................................15
Conclusion...........................................................................................................................................18
Reference Links:..................................................................................................................................19
Plagiarism Reports:..............................................................................................................................20

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 Abstract

Electronics is a very competitive, fast-growing sector that necessitates massive R&D

spending. Samsung is among the industry is the most important, renowned, and powerful
companies. This South Korean technological behemoth was formed in 1969. The firm
manufactures mobile phones, televisions, and other household goods, among other things.
With its extensive expertise, a wide range of products, and ongoing developments, Samsung
may be called a pioneer in the electronics business. Effective segmentation and positioning
tactics played a critical part in the company's development and acquisition of a distinct
market position. So, let's take a closer look at this behemoth and examine the techniques that
have led to its success.

Segmentation, targeting, and placement on Samsung are a series of operations carried out in a
certain order. The core of Samsung's marketing strategy is comprised of these actions.
Segmentation is the process of splitting a population into distinct groups based on shared
traits. Targeting is the process of identifying certain groups of people to be product and
service customers. Finally, positioning is the process of selecting the marketing mix that is
most suited to the target client category.

This report is part of a series of reports which track the mobile handset market: Smartphone
and Feature Phone shipments every quarter for more than 140 brands covering more than
95% of the total device shipments in the industry. 

The mobile device market is without a doubt one of the most competitive in the entire world.
According to a recent estimate by the US Federal Communication Commission, at least 65
smartphones and other mobile devices are introduced each year in the country. This
astounding figure highlights how fiercely competitive the market is. The global market for
mobile devices is flooded with many brands like Samsung, Apple, Xiaomi, Oppo and Vivo
being the major players.

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Summary:

 The global smartphone market declined by 9% YoY and 10% QoQ to 295 million
units in Q2 2022.
 This was the first-time quarterly shipments dropped below 300 million units since Q2
2020 during the early part of the COVID-19 pandemic.
 Samsung was the only top-five smartphone brand to grow YoY, increasing shipments
by 9% YoY and growing market share by three percentage points to 21%.
 Apple’s shipments declined by 5% YoY in Q2 2022, although its share increased in a
diminished market.
 Xiaomi, OPPO* and vivo, hit by China lockdowns, suffered double digit YoY
declines in their respective shipments.

According to the data below, ownership is expanding very quickly, with roughly half of the
world's population owning a smartphone and two-thirds owning a mobile device.

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Research based on the SAMSUNG Smartphones:

Introduction of SAMSUNG:

Samsung is a South Korean company founded in March 1938. Initially Samsung was in the
trading line that sells food products to nearby countries. Overtime Samsung have become one
of the leading electronics companies in the world. Samsung has been constantly expanding their
product variation allowing their market share value and revenue to be one of the top of the
global scale. Samsung’s wide variation of products requires a vest amount of different marketing
strategies. Their success in the global market is also well recognized.

How large is the target market?

Target Market:

Samsung’s targets a very wide range of consumers ranging from normal day to day usage
devices to industrial standard equipment. The usual target age group of customers range from

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the 20s to 50s or even older, as long as the person has the ability to purchase and use the
products that Samsung has to offer in the market.

Teenagers to early adults (age 14 – 25): This age group of Samsung product consumers is
usually Samsung’s smartphone target customers as they are mostly technology savvy. This
group of customers is growing as Samsung saw that this group has more spending power in
recent years compared to in the past.

Adults (age 26 – 50): This specific group of targets the largest portion of Samsung’s target
market as this is the group of consumers that have the most ability to purchase any of the
product Samsung has to offer in the market be it smartphones. This portion of customers will
continue to grow in the years to come.

What is the future growth potential of this target market:

Samsung to expand lower-price 5G smartphone offerings

Rebound in DRAM chip price could come as early as H1-exec

Spent 90% of 2021 CAPEX on chips, no 2022 guidance

Our strategy in the mass tier is to actively capture demand from people seeking to replace their
phones with 5G models," Kim said, adding that the company would pursue more "global mega-
hit models.

How do/does the marketer reach this target market and so on?

Competitive Landscape

The Smartphones market is a highly competitive market, dominated by established players such as
Samsung, Huawei, Apple, and Xiaomi, among others. Most of these players keep launching new
models with small technology changes such as battery power, camera configuration, and/processor.
Some of the recent developments in the market are:

July 2021 - Vivo Communication Technology Co. Ltd expanded its 5G portfolio in India with the
launch of the powerful Vivo Y72. The smartphone offers 8GB+4GB expandable RAM, which prevents
the phone from choking while multi-tasking.

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July 2021 - Samsung India launched a new smartphone, Galaxy A22 5G. It offers 11 bands’ support
for 5G experience and two-year OS upgrades. It has a 6.6” FHD+ display with a 90Hz refresh rate,
versatile 48MP triple camera, 5000mAh battery, and a host of other innovative features.

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Section 1- Q1. Research on target market

Potential market and available market

In order to enter or survive in this very competitive market, a smartphone brand needs to first
analyse the different segments of users and identify a target market before positioning their
product. We will do the same analysis in the coming sections.

Based on Demography:

Gender: Oppo and Xiaomi have market share inclined towards the male customer side.
When we look into the substitute products at the premium end, these brands are way more
affordable that their counterparts. Considering the example of Apple and Samsung, they
target both the genders more or less equally and the same can be seen in the segmentation
data in the next section. They achieve this through standardization of smartphones. Brand
trust and loyalty is higher in this case which allows uniform adoption across genders.

Age: Age group 16-34 constitute about 70% of the total smartphone market share. A
staggering 94% of 18- to 29-year-olds have a smartphone while only 46% of the 65+ age
group has adopted it. On an average, under 35 are more likely than people over 50 to own
smartphones, utilise the internet, and use social media. Germany have seen the fastest
increases in smartphone ownership over the past several years.

Income: 96% of Millennials with household incomes under $25,000 use smartphones, and
the number is essentially constant across the board for the group as a whole. In contrast,
Millennials with household incomes over $50,000 predominantly utilise computers and
tablets. As a result, Millennials with lower incomes are more likely to rely on their
smartphone for internet access. As a product creator, we as a brand have a higher chance of
creating an impact in the market if we target the low- and middle-income group and provide
them the value for their money smartphone.

If we are planning to launch a smartphone in the affordable category, we need to have a wide
product assortment and target Millennials and Gen Z whose choices are dynamic and looking

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for an upgrade every 1-2 years. It is also evident from the fact that the average smartphone
selling price in India is nearly 15-16k.

Based on Geography:

Population: The Asia Pacific region has a bigger smartphone market than Americas and
EMEA regions. However, India still lags behind at 43.5% as compared to USA's 72.1%,
Germany's 80% and China's 60% when it comes to penetration of smartphone in total
population. Brands like Xiaomi, the highest selling smartphone brand in the country (around
20% market share in Q2 2022) clarifies the consumer behaviour and their inclination towards
a power packed budget smartphone.

Regional Urbanization: In India, where it accounts for 70% of the market share, internet
penetration is a key driver boosting the smartphone industry in rural areas. However, the
urban and suburban areas still remain the hotspot for growing tech and consumers are looking
out for improved performance devices which provide good value for their bucks. Also, with
the introduction of 5G, this market seems to grow even more rapidly in the near future.

Based on Psychographics:

Societal Class: The working, middle and upper class are the best targets for an emerging
brand because of their disposable income. Smartphones are still being used a status symbol
for many and can also have a psychological impact on others nearby influencing them to buy
latest tech-savvy products.

Lifestyle: A person's lifestyle can be seen in their patterns of behaviour at work and play as
well as in their particular activities, attitudes, interests, beliefs, and values. Additionally, it
reveals a person's self-idea, or how they perceive themselves and how they think others
perceive them. Additionally, lifestyle is a conglomerate of desires, needs, and motivations
that is influenced by elements including socioeconomic status, culture, and family.

Considering, how large is the target market as seen in above statistics and a high future
growth prospective, the potential market in which we would like to launch our product would
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most likely be Urban and suburban Millennials who like to lead a decent lifestyle with a
value for money smartphone in their hand which could provide them best in the market
technology at an affordable price.

Section1- Q2. Market Segmentation

Segmentation based on any 3 criteria

Demography

A precise method of identifying an audience is known as demographic segmentation. It is

based on information such as age, gender, marital status, family size, income, education, race,
occupation, nationality, and/or religion. This is the one of the major categories of marketing
segmentation, and is possibly the most used approach. This strategy allows a brand to talk
directly to a narrow segment of the market rather than the entire market or a large client base.
In our research and based on the product, we are looking to segment our product based on
Age, Income and Gender demographics.

Age based: A poll by the Mobile Ecosystem Forum from November to December 2019
found that the age range of 16 to 24 years had the greatest penetration rate of smartphone
users, at 37%. The users between the ages of 25 and 34 was next on the list. The survey
suggests older Indian population had a lower smartphone penetration rate.

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Income based: According to household income, this statistic shows the proportion of
American adults that possessed a smartphone between 2011 and 2021. According to the
report, 96% of those in households earning $75,000 or more had a smartphone in 2021.

Gender based:

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According to the results in the above graph, a lot of the brands have a male dominated market
share. According to another survey by GSMA, Women are 8% less likely than Men to own a
mobile phone itself and 20% less likely to own a smartphone in low and middle-income
countries. Key barriers for this disparity are affordability, literacy skills, safety and security
as well as family not approving.

According to a survey done in India in 2020, just 55% of women over the age of 18 owned a
phone, compared to 75% of men. Most notably, only 25% of Indian adult women owned
smartphones, compared to 41% of Indian adult men. This is a significant gender difference.

Geography

Geographic segmentation entails dividing up your audience according to the area in which
they reside or are employed. Customers can be categorised in a variety of ways, including by
their nation of residence, or by more specific geographic divisions, such as city, region, or
even postal code. We are considering the geographic segmentation as it is easy to implement,
has higher product relevancy and Improved advertising effectiveness. Some of the parameters
we will be segmenting our product on are:

Population: This may emphasise population type or density. A firm might decide to
concentrate on a heavily populated urban area; for instance, a fitness chain wouldn't open a
gym in a remote location. For target audiences, we can also overlay demographic data here.

Regional Urbanization like Urban, suburban and rural: Given that each of these three
contexts has a unique set of client needs, it requires a unique set of marketing methods.
Products may be more expensive because people in cities and suburbs typically have higher
purchasing power than people in rural areas.

Psychographic

This type of grouping includes factors like values or lifestyle choices to target buyers on a
deeper level. Due to the fact that consumers leave cookies, personal information, and other
bits of identifying information all over the web, a marriage between psychographic
segmentation and mobile marketing is beneficial. To find their target market, mobile
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marketers are no longer required to conduct extensive research. Based on what individuals
freely list publicly on resources like social media, tests, games, browsing histories, and
surveys, an algorithm can reduce it down. The obvious benefit of this type of segmentation is
the conversion rate. Other advantages of choosing this type of segmentation is being able to
focus more narrowly on specialised markets for certain products, being able to foresee
consumer trends to keep clients interested in making future purchases and gaining knowledge
about your target audience.

Societal Class: The social standing of a customer can also influence purchasing tendencies.
Someone with a certain social position, such as one who is solely visible on social media,
wearing fancy clothing, full makeup, and styled hair, can be targeted. Includes working,
middle and upper class.

Lifestyle: How does your family's life currently look? What do you do to keep work and play
in balance? A retired person? Do you reside in a city or the country? Purchase decisions are
influenced by these lifestyle choices just as much as by product function or price. Involves
Aspirer, Explorer, Mainstreamer, Resigned.

Section 2- Q1. Market repositioning

1.1 How was it positioned before?

For any business, well-designed and successful positioning may be a game-changer. When it
comes to building a brand image in the minds of customers, positioning may be quite
powerful. Samsung has a very standard positioning approach for a technology firm. Samsung
employs positioning strategies that depend on the competitors. The firm is continually
introducing new technologies that aid in the creation of a level playing field. Samsung keeps
up with the times and maintains a leadership position among other strong firms in the sector
thanks to new features, a new choice, and other novelties.

The curved screen is a distinguishing feature of this device. In the electronics sector, this
notion is novel and game-changing. Samsung was able to pique customers' attention and
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curiosity by applying this technology. The giant's curved screen opened up new possibilities
for itself and competitors who would either imitate the innovation or come up with something
else to outshine Samsung.

SAMSUNG introduced its first mobile phone to India in 2004. In 2008, Samsung Electronics'
Telecommunication Business declared its new business strategy focusing on consumer and
marketing. Samsung mobile phones are divided into 6 major categories – Style,
Infotainment, Multimedia, Connected, Essential and Business.
Headquartered in Korea, the conglomerate competes against technology-intensive firms, such
as Apple, Google, Lenovo, LG, Sony, and other firms that create strong competitive forces,
as determinable through a Five Forces analysis of Samsung.

Samsung's share of global smartphone shipments from 2nd quarter 2009 to 1st quarter
2022

Samsung has been a consistent front-row competitor in the global smartphone market. In the
second quarter of 2022, Samsung held a global smartphone market share of 21.8 percent.

Samsung’s smartphone market share

The smartphone market has fluctuated considerably since 2009. Nokia used to lead the
industry with almost 50 percent of the smartphone market share in 2007, but the company’s
market presence dropped to around three percent in 2013. Apple and Samsung have remained
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among the top five smartphone vendors in the world since 2009. Samsung’s Galaxy, first
released in 2009, is their main line of smartphone products, while Apple heavily invests in
the iPhone, a primary source of revenue for the company.
Samsung’s smartphone market share increased significantly in a span of three years, going
from three percent in the second quarter of 2009 to 32.2 percent in the second quarter of
2012. None of its competitors have experienced a similar growth. As the overall smartphone
market also grew, Samsung was able to maintain its position as the global market leader.

1.2 Which customer have they chosen to reposition?

For repositioning of our product, we have chosen to target the upper middle urban society in
the age group of 18-65 offering them user friendly, cost effective, stylish and innovative
products which would feel premium in hand but not on pocket.

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1.3 How will it be repositioned?

SAMSUNG embodies style and technology for the young professional, with its cutting-edge
design and superior connectivity features. Samsung's positioning statement is one that asserts
its differentiation from other mobile phone providers. In the local market where myriad
choices abound, Samsung's sleek exterior design, accompanied by its selection of soft and
hard features, render it an optimal purchase for the young, technologically updated
professional.
 
Samsung tries to cover whole mobile and smartphone market and is now one of the leading
mobile companies of the world. Today company’s product line-up includes almost any
possible smartphone or mobile. Thereby the current positioning of Samsung Mobile is to be a
market leader in whole mobile and smartphone market. Samsung came up with new ideas to
be more customer-focused and creative in order to establish a strong brand image in the
global market.  Their main focus is to make handsets with the most amazing and unique
designs in order to meet their customer’s expectation.

Samsung has long counted on its marketing and hardware prowess to attract customers
seeking an alternative to Apple's iPhone. When Samsung needs to churn out a hit, it turns to
what it's always done best: hardware. Samsung has long been at the forefront of the mobile
market when it comes to the technology crammed into the devices. Its phones tend to use the
fastest processors and brightest screens, as well as incorporate novel, high-tech features such
as curved displays seen in S6.

Samsung prefers to use different taglines for their different products. This year Samsung
launched S6 with "Six Appeal" as the tagline.

SAMSUNG confirmed today that the Samsung Group will be investing approximately $206
billion in the next three years to enhance its capabilities in the artificial intelligence,
biopharmaceutical, semiconductor and robotics industries. The investments are meant to
prepare Samsung for a leading role in the post-pandemic world.

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These investments will be made through 2023. The company says that this move will enable
it to strengthen in global position in competitive industries like the chip market while also
providing it with new opportunities for growth in next-generation telecommunications and
robotics.

SWOT analysis
The SWOT analysis is a framework used to categorise internal and external factors that
influence the operations of an organisation. Unlike the PESTLE analysis, this tool clearly
requires a delimitation of negative and positive factors that influence a company and whether
these factors are internal or external to the organisation.

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 Strengths Weaknesses

 Product range
 Pricing tactics – lower price is usually
 Ownership of market share
interpreted as low quality
 Brand reputation
 Not niche focused
 Awards and industry recognition
 Relies on external software for products
 Low-cost productions
 Distribution channels costs for products
 Local teams in all locations
 Patent litigations with Apple
 Investment in R&D

Opportunities Threats

 Increased market demand in growing  Reputation of competitors

economies (particularly India)  Decline in demand for

 Increase in disposable income after SMARTPHONES

economic downturn recovery  Political instability in South Korea

 Demand for innovative products  Aging population

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Conclusion

To summarize, a variety of causes and actions influenced Samsung's current success. This
organization has managed to retain its commitment to quality, enthusiasm, and dedication in
all of its endeavour’s. Despite its success, the organization never stagnates and continues to
expand via self-improvement, research and development, and market research. Furthermore,
customers play an important role in Samsung's success. The firm has grown to be as
important and strong as it is now because of a properly designed and efficient segmentation
and positioning strategy.

Samsung also uses social media sites to post and notify people about new products and
upgrades. This technological behemoth is also involved in a variety of activities and
participates in several sponsorships for promotional purposes. Campaigns are often used by
the firm for promotional objectives. The plans and incentives that the corporation delivers to
its clients with its trade partners are another fascinating technique of advertising. 

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Reference Links:

https://www.london.edu/news/understanding-smartphone-usage-in-low-income-markets-2006

https://www.realitymine.com/smartphone-use-by-income/

https://www.businessinsider.com/us-smartphone-market-2012-9?IR=T

https://www.pdfagile.com/blog/samsung-segmentation-targeting-and-positioning

https://www.statista.com/statistics/276477/global-market-share-held-by-samsung-smartphones/

https://www.forbes.com/sites/kimberlywhitler/2021/08/07/repositioning-samsung-next-how-a-shift-
in-target-uncovered-new-customer-pain-points/?sh=4afd4978251c

https://www.slideshare.net/vvikaschauhan/marketing-strategy-of-samsung-in-india

https://positivemomentum.com/

https://www.bankmycell.com/blog/how-many-phones-are-in-the-world

https://www.yieldify.com/blog/geographic-segmentation-real-world-examples/#:~:text=What%20is
%20geographic%20segmentation%3F,right%20down%20to%20postal%20code

https://www.mageplaza.com/blog/positioning-in-marketing.html

https://www.linkedin.com/pulse/xiaomis-rebranding-efforts-worth-akshatha-belavadi-rao

https://www.businessworld.in/article/How-Rural-Millennials-Are-Choosing-Their-Smartphone/24-04-
2020-190228/

https://www.prnewswire.com/news-releases/rising-internet-penetration-and-falling-smartphone-
prices-propel-indian-mobile-phone-market-301572845.html

https://www.businesswire.com/news/home/20190426005357/en/The-Smartphone-Market-in-India-
2018-to-2023---With-a-14-Yearly-Market-Growth-Since-2016-India-is-the-Fastest-Growing-
Smartphone-Market-Globally---ResearchAndMarkets.com

https://www.statista.com/statistics/370825/india-mobile-phone-vendors-market-share/

https://www.prnewswire.com/news-releases/indian-mobile-phone-market-report-2021-2025---
growing-market-penetration-of-smartphones-for-large-addressable-indian-rural-and-urban-markets-
301415427.html

https://www.businesswire.com/news/home/20170725005585/en/Global-Smartphone-Market-2017-
2021-Market-Analysis-and-Geographic-Segmentation-by-Technavio

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5634822/

https://www.pewresearch.org/global/2019/02/05/in-emerging-economies-smartphone-adoption-has-
grown-more-quickly-among-younger-generations/

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Plagiarism Reports:

For Plagiarism Reports we have used online free tool: https://plagiarismdetector.net/

All the Reports are attached in pdf format based on the Questions.

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