Sustainable Marketing and Marketing Budget and Implementation - Assignment Example

? Sustainable Marketing Plan Contents Contents 2 Introduction 4 The Company 4 Target Market 4 General Strategy 4 Triple Bottom Line Goals 5 Profits 5People 5 Planet 6 Stakeholder Analysis 6 Customer Analysis 6 Competitors Analysis 7 Company Analysis 8 Community 10 Branding and Positioning 11 12 Style 12 12 Price 12 Marketing Mix 13 Product 13 Price 13 Place 14 Promotion 14 Marketing Budget and Implementation 16 Reference 17 Introduction The Company Samsung Electronics working to render high class innovation in its several products has emerged as the undisputed market leader in the field of consumer electronics and also in regards to the production of manufacturing and digital gadgets. The product produced by the company tends to gain high class market leadership working on the parameters of innovation, enhancement of the reliability factor in the goods produced thereby making the company accountable to the global consumer base and finally integrating and enhancing the cooperation of its value chain elements to drive both productivity and performance (Samsung, 2012). Target Market Samsung Electronics has strategized its market offerings through the defining of a new target base comprising of fashionable, trendy and high class consumers. Prior to such the company mainly focused on creation of value products that would help the consumer gain better quality at affordable prices. However the gaining of a new target base has enabled the company to focus on the production of fashionable and premium products in order to meet their enhanced desires. Samsung Electronics eyes the new consumer base as fashionable and filled with curiosity and a sense of adventure to try the new (Rowley & Paik, 2009, p.63). General Strategy The general strategy of Samsung Electronics and that of the Samsung Group in total mainly centres around three parameters. Firstly the company management focuses on rendering high class innovation in its products and thereby empowering the internal people to work on the same. Secondly the company also works to incorporate large scale diversification in regards to both its products and business sectors. Thirdly the company through empowering individuals helps them to identify and go for newer opportunities and thus to develop both professionally and personally (Samsung-a, 2010). Triple Bottom Line Goals Profits Today most of the companies are practising the sustainability measures to gain a competitive advantage. Samsung Electronics by making a mark in the sustainable factor can create a competitive advantage. Developing environmentally products and improve customer satisfaction would eventually lead to profit as consumers are also demanding products which are environmental friendly. The company can also maximise the corporate value by sound economic activities and enhance profit for the organisation. People The company needs to educate the consumers in regards to the production of premium gadgets incorporating high end technology. Awareness created amongst the people through print and visual advertisements helps in enhancing their desire to procure high end products. Samsung Electronics should also work to engage the supplier groups and employees to render products to the consumers that would be reliable and innovative to suit their quality needs. Samsung Electronics can also work in the development of electronic schools and training centres to help attract young and innovative minds in their operations. Planet Samsung Electronics in its endeavour to enhance the dimension of reliability and quality is also required to work on the dimension of carbon footprint. The carbon footprint would help the company track the amount of carbon usage in regards to the company’s and it’s supply chain groups’ operations. This method would help the company reduce the amount of carbon usage and emission and thus promote a greener environment. Further the company also needs to enhance the use of recyclable materials in its production of gadgets to help enhance its accountability to nature. Stakeholder Analysis Customer Analysis Samsung has targeted the entire range of audience ranging from the consumers to the industries to the professionals. Samsung is one of the leading companies in consumer goods and it has got a wide range of products in its portfolio ranging from tablets to television to home appliances, camera, printers, computers laptops and other accessories. As a result it target customers are not restrained to a particular segment but catered as per the needs and wants of the people. Thus the target market of Samsung includes the consumers, the professional and the industrials. Consumers using the Household Appliances The target market to be discussed is the consumers segmented for the use of home appliances. The consumers market for home appliance has continues to grow with the introduction of more technological sound products and mainly because of their eco friendly components. The demographics for consumer home appliance mainly comprise of the females as most of the home appliance are being used by the females and it has been said that females tends to influence purchase decision. The market size of the home appliance market is relatively huge and amounts for a huge revenue for the company. Competitors Analysis Direct competitors for Samsung are LG Electronics, Sony Corporation, Panasonic Inc, and Mitsubishi Inc. whereas the indirect competitors of Samsung include the Itunes from Apple, Media player from Microsoft, Real player and the Winamp. Sony Corporation Sony is a Japanese company and one of the market leaders in consumer durable products. Sony is known for its quality and innovation. Throughout the world, Sony stands for innovation, technology and superior quality of product. The price charged by the company is relatively high as compared t its competitors and this is mainly because f the high quality of services provided by the company. Sony is often termed as a status symbol for the customers and thus shows loyalty towards Sony through purchasing its product at all ranges and price. Sony vision is to offer the customers a new lifestyle by introducing exciting new products and remains committed to the challenge of creating and realizing the dreams of its customers. Sony product ranges from electronics to household to games and others. Sony has launched its Play station 3 and is providing a tough competition to its competitors (Sony, 2012). Sony’s Strength and Weakness Strength: Sony has a huge brand name both in terms of its service and innovation. Sony has been regarded as one among the best companies in the consumer products among its competitors. Its location is an added factor to its strength. Sony has a huge product portfolio ranging from electronics to home appliances to accessories and has captured the highest market share. it has adopted the strategy of stay local but be global which has added on to its strength. Weakness: Sony has encountered some problems which can be categories as weakness for the company. There has been a decline in the competiveness of the products as compared to its competitors and also the company did not emphasis on the needs of its target customers resulting in loss of its loyal customers (BBC News, 2005). Company Analysis Samsung key internal stakeholders would include the managers, the employees, the suppliers and the shareholders. All of the stakeholders form an important part of the organization and equally contribute to the success or failure of the company. Samsung values its stakeholders at a very high category and does every possible thing to keep its stakeholders satisfied. Shareholders Samsung in order to realize he common interest and to create values, it has been promoting various Investor relation activities which involves investor relation shows, meeting, conference which are based on active communication with the shareholders. Shareholders influence the business to large extends and it is essential for Samsung to keep their shareholders satisfied. Samsung provides financial information and the system of VOC online in order to enable the shareholders with real time exchange of information and communications. Samsung is known as an eco friendly and clean energy solution company and to realize the common interest it has been promoting its rechargeable car batteries as it has emerged as one of the core businesses of the future. Samsung has expanded its meetings with both the local and foreign investors and has held seminars on its EV batteries. The process of communication would enhance the shareholders and also the investors to have a better understanding of Samsungs operation and at the same time ensure credibility and help in the fulfillment of the common goal of realizing the common interest of both the shareholders and the organization, Samsung (Samsung-b, 2008). Strength and Weaknesses Strength Samsung strength lies with its brand prestige; it is high quality innovative brand. Samsung with the launch of its 3D television is leading the industry and has captured the highest market share in the television sector. Its LED television has earned the prestige of the best picture quality. With innovation and style, Samsung is leading the consumer market industry. Another added factor is the company’s resources. Samsung had transferred about 300 engineers from the semi conductor business unit to the organization in order to establish a new television business unit. Samsung constant focus on its R&D development has also helped the company to reach the position where it is today. It adds on to the strength and has proved as competitive advantage for the company. Weakness One weakness is that unlike its competitors Sony, it does not have any direct association with the content provider for gaming. The gaming segment is assumed to account for a dominant market share in the near future. Samsung with its high price has targeted mainly the upper income level group of people but in order to increase its market share it need expand its target market. But with its high price, customers may not prefer buying Samsung products other than the higher income level. Thus this might pose a threat for the company. Community Samsung’s key external stakeholders include the business partners, NGOs, local communities, Government and the Press. Business Partner Samsung is a global leader and is responsible not only for what lies within its walls but also for what lies beyond the walls. At Samsung, it tries to pursue co prosperity through a win-win partnership. Business partners influence the marketing plan to a great extend because they are the key source for the company’s sustainable growth. Samsung has introduced a plan to support the shortage of supplier to help solve the problems faced by its business partners with respect to human resource, technology, also capital in promoting the co prosperity management philosophy. Samsung also celebrate Partner Day which includes various activities such as presentation of the award to exceptional innovation and strengthening its future global prospect. Samsung believes that competitiveness of its business partners is same as that of its own and thus helps the partner to sharpen the expertise through a long term mutual development strategy (Samsung-c, n.d). Acknowledging the key factors and strengths of its partners, Samsung seeks to gain a competitive advantage over its competitors and the business partners plays a crucial role in influencing the business plan of Samsung. Branding and Positioning Samsung is known for its quality and innovation and so does the new brand would also resemble the same features. The new product would be a six sense technology which would be implemented on its Air conditioner and also in its microwave oven. Samsung has always been regarded best in terms of technology so a new innovation would be made in AC and microwave oven which would help its customers to deal with it at a much easier way with more advanced technology. The AC would work on the sixth sense technology as when a person enters the room it would automatically set the temperature according to the requirements. The Microwave oven would also work based on the similar technology and would set the temperature based on the dish and at the same time the products would be eco friendly. Samsung would try to break even with its new product in the first year itself because of its high reputation and with customers getting more tech savvy it is quite possible. Samsung being a big and one of the most renowned brands would aim to capture the market share and stay a step ahead of its competitors. Whirlpool is the brand which has its technology based on six senses and now Samsung has implemented this technology. There would be a tough competition between the two brands but it can be assumed that Samsung will fare well in the competition and would achieve the required revenue and earn profits. Positioning Map Style Price LG Homemakers Whirlpool Professionals The Positional map explains that the competitors of Samsung which are LG and Whirlpool both being consumer durable product have reached a position where it has captured most of the market share. In the map it has been shown that Whirlpool’s price for its product are quite reasonable as compared to LG which charges high price and thus the customers segment is also divided based on it. Whirlpool with its reasonable price has targeted the middle income level people and also the high class with its sixth sense technology products. But the prices are less and so the homemakers can easily afford it. Whereas LG ranks high both in terms of price and innovation and thus the professionals with a high level of income prefers LG. In terms of innovation, Whirlpool has also been rated high but due to its reasonable price, customers of all income groups are able to purchase it. Marketing Mix Product The product is AC and Microwave oven. The key features that would be included is the sixth sense technology through which the products would operate automatically based on the required environment and temperature. If the AC is on, it would adjust according to the temperature without the use of the remote and the microwave would cook food based on the preparation of the food and would set the temperature by itself and after the operation would get off automatically. The benefit would include time saving and one can indulge in some other work while the products will take care of things by it. The products, because of its features and eco friendly would prove to be a competitive advantage and stay ahead in the competition from its competitors such as Sony, LG, Whirlpool and others. Price The company would follow the premium pricing strategy as it has targeted the higher level of people or the customers. If Samsung shifts to a different pricing strategy, there might be a shift in the consumer’s perception regarding the brand and its value. Consumers highly believes that high price means better quality product and Samsung has positioned themselves as a high quality product in the minds of its customers. Thus it would follow the premium pricing strategy. Samsung competitors LG and Whirlpool have a diversified range of products and both of them deal in consumer durable goods. When compared the prices of Whirlpool AC with that of Samsung which it is going t charge, the rice were much higher than its competitors. Whirlpool AC cost about ?972 approximately where as the AC of Samsung would cost ?1254 (The Air Conditioning Shop, n.d). The rates are quiet high as compared to Whirlpool. Place Samsung is located all over the globe and the new product would be launched in UK because the country is a technology savvy and the customers accept new technology. Samsung has already marked its presence in UK and with the launch of new product it would be able to capture most of the market share which would help it to sustain even in the worst condition. Samsung has adopted the vertical integration where it operates its own factories and do not outsource it (Cravens, 2009, p.295). Samsung would follow four channels of marketing, from the producer to the wholesalers to the retailers and finally to the ultimate customers. Promotion Samsung would promote its product through advertising campaigns across UK. Apart from the advertising campaign; Samsung would continue using celebrities like the Black Eyed Peas to promote the products. It would use the online media to promote its product and would conduct promotional activities in malls and in its outlets, sales promotion will also form a part of the promotional campaign. Samsung would conduct event where it would showcase its AC as well the micro oven. The event would take place in expo in UK or in partnership with other brands. The event will be conducted after three months from the date and would promote its new technology. The event would cost Samsung about 6 billion pounds approximately including the other promotional activities o promote its product. The goal of Samsung will be to create a desire for its products. Samsung is known for its brand value and the product introduced will surely differentiate from the competitors. It would create a buzz because of the facilities and most important an added feature of the product being eco friendly. The company to measure the promotional effectiveness would make a survey across UK and also through online data it would get to know whether the promotional campaign have been a success or a failure. Marketing Budget and Implementation Implementation Calendar     July 2012 August 2012 September 2012 October 2012 November 2012 December 2012 Goal  Advertising campaign     Events Advertising campaign     Promotional Events       Promotional Events      Sales promotion      Sales promotion             Marketing Budget The total marketing budget is assumed to be about ?20million and 1% of it will be spent on promotional activities based on the objective and task marketing budget. Thus 1% of ?20million would account for ?2million. The following table shows the amount of expenditure that Samsung would incur during its promotional activities. Since the budget is based on objective and task marketing which takes into consideration the amount that will be spent on activities such as personal selling, advertising, sales promotion, online advertisement and other types of activities which are involved with promotion of the products. Samsung promotional activities will include advertising through television, magazines and hoardings. It is assumed that the total expenditure on advertising campaigns would amount to 0.8million. The promotional activities which will be held during September and October across UK will amount to 0.6million and sales promotion will also amount to 0.6million and will be conducted throughout UK during the month of November and December 2012. Budget of Promotional Activities Thus it can be concluded that Samsung with its new product development will try to capture the maximum market share in UK and across the globe. Samsung is already a well known brad and with its introduction of eco friendly and sixth sense products it ensures to secure its global position right at the top of the chart beating its competitor Sony, LG , Whirlpool and other consumer durable companies. Reference BBC News, 2005. Sony boss 'to put consumer first'. [Online]. Available at: [Accessed 3 April, 2012]. Cravens, D. W., 2009. Strategic Marketing 8E. New York: Tata McGraw-Hill Education. Rowley, C., and Paik, Y., 2009. The Changing Face of Korean Management. New York: Taylor & Francis. Samsung, 2012. About Samsung. [Online]. Available at: [Accessed 3 April 2012]. Samsung-a, 2010. Samsung Global Strategy. [Online]. Available at: [Accessed 3 April 2012]. Samsung-b, 2008. Sustainability. [Online]. Available at: [Accessed 3 April, 2012]. Samsung-c, No Date. Co Prosperity. [Pdf]. Available at: [Accessed 4 April, 2012]. Sony, 2012. Corporate. [Online]. Available at: [Accessed 4 April, 2012 The Air Conditioning Shop, No date. New The Air Conditioning Shop Air Conditioning UK Web Site. [Online]. Available at: [Accessed 4 April 2012]. Read More