Direct Marketing Campaign for Samsung Galaxy S5 - Case Study Example

Direct Marketing Campaign for Samsung Galaxy S5 Affiliation Table of Contents Executive Summary 3 Background: Historical Summary of the Company and Case 3 Situation: Current Summary of the company and Case 4 Opportunities and Problem 5 Alternatives of Direct Marketing 6 Social media 6 Email Marketing 7 Telemarketing 7 Choice of Alternative for Direct Marketing Campaign 8 Segmentation 9 Implementation of the Direct Marketing Campaign 10 Follow Up and Measurement of the Direct Marketing campaign 10 Conclusion 11 References 12 Executive Summary The paper has three chapters. The first chapter introduces Samsung Company by giving a brief history and also states the case. The same chapter gives an outlook of the current situation of the Company and also gives the case. Chapter two presents a brief description of the problem as well as the opportunity that will make the direct marketing campaign plausible. The chapter also discusses the alternatives that the company might consider useful for direct marketing and a choice of the best alternative, depending on the timeframe given. The third chapter gives an analysis of the segment of the market that will be targeted and explains why. The chapter also explains the method of implementation of the direct campaign as well as the follow up and measurement methods. The latter two are used to evaluate the efficiency of the campaign. The chapter also gives a conclusion of the paper. Background: Historical Summary of the Company and Case Samsung Company did not start from electronic business like other electronic and affiliated product giant companies. Instead, the company’s founder Byung-Chull Lee started by setting up a trade export company in Korea back in 1938. The company sold fish, fruits, and vegetables to China. A decade later, Samsung owned confectionery machines and flour mills before becoming a corporation in 1951 ("History Of Samsung," n.d.). 1958 saw Samsung expand its business into other industries such as media, finance, ship building and chemicals among others extending through the 1970s. Samsung Electronics itself was started in 1969 with its fame in the production of Televisions, Mobile phones, Computer hardware, and a plethora of other electronic devices. The company started exporting its exporting its products in 1977, for the first time acquiring a 50% stake in Korea semiconductor. This move made the company a leader in the semiconductor industry ("History of Samsung," n.d.). Between 1980 1nd 1989, Samsung entered the global market it provided services and products. The system development business saw the company establish Samsung Data systems that is currently known as SDS in 1985. SDS is an information technology services giant that provides system integration and management, and network services. All high-tech businesses faced a challenge in the 1990s Samsung being one of them. To respond to market demands Samsung used the opportunity to merge with other companies such as Samsung semiconductor and telecommunication company. The millionth black and white Television was also produced in this period. Color TVs were also produced in huge quantities. The company developed the mobile phone system and started manufacturing in china in 1992. The company also produced PCs in the same period (1990s). Additionally, the company also did well in terms of digital TVs ("History - Corporate Profile - About Samsung - Samsung," n.d.). Competition leads to reduction in the market share with consequent reduction in profitability. Companies, in this case, need to restructure their marketing strategies in order to control large market shares. As evident from the historical background, the company has been performing well. However, since there is a lot of competition from other companies like Nokia, who are also players in the electronic business, there is need to come up with a clear direct marketing campaign. Situation: Current Summary of the company and Case In the twentieth century Samsung entered the smart phones market and was ranked the best IT Company in 2001 by BusinessWeek. 2005 the company was ranked the 7th world most admired company of fortune. The same year it unveiled the 7 megapixel camera phone. 2008 saw the company take the first spot in cell phone market in US. The company has also sponsored the London Paralympics Games in 2012. Additionally, it has also received the best global brands award in 2013 ("History - Corporate Profile - About Samsung - Samsung," n.d.). The same year saw the company unveil Samsung Galaxy Note 3 as well as Galaxy gear at Unpacked 2013. The global market also experienced the Samsung Galaxy S4 in the same year. 2013 can be regarded as the best year for the company because Samsung was able to make an accumulated amount of billions of units of Samsung Galaxy S smart phone series. Samsung Company also formed marketing and development partnership with Merck. The greatest of all, Samsung Galaxy S smart phone series is the Samsung Galaxy S5, which was released on 25th February, 2014 in Barcelona. The phone that is doing well in the market still needs a strong direct marketing campaign so that it can counter Iphone. Black Friday and cyber Monday holidays, present the best opportunity for higher sale. This will be achieved if a better market research as suggested by the company’s vice president of marketing is done to capture the Iphone 6 users. According to Thomas (2008), direct marketing has been proven to confer advantages to businesses in advertisements and reaching the customers through print and electronic media. Opportunities and Problem The situation at hand is to come up with a direct marketing campaign that will up the sales of Samsung Galaxy S5. The campaign strategy is to be used during the two shopping holiday seasons that is, Black Friday and Cyber Monday. Research has shown that on these periods, most users switch their phones as well as make direct purchases (Thomas, 2008). During holiday periods most marketers have a voice and compete to use the available channels such as Verizon and sprint among other platforms to implement their aggressive campaigns. Customers have lots of free time for shopping, walking around, and even watching televisions and reading. The direct marketing campaign will target the users of Iphone since the product is more or less of the same features as Iphone. Apples Iphone 6 and 6 Plus phablets have overshadowed the sales of Samsung Galaxy S5, therefore, Black Friday and Cyber Monday presents the best opportunity for the company to come back to its sales feet. Alternatives of Direct Marketing There are many tools that can be used for direct marketing. These direct marketing tools include telemarketing, couponing, direct response TV and Radio, community and grass root campaigns, face- to-face selling, social media marketing, email marketing, text marketing and direct email ("Types of direct marketing | Queensland Government," n.d.)However, three most effective alternatives that can be used in this case include email marketing, social media marketing and telemarketing. This is because most consumers are interactive on the internet and also do most of their shopping online. Social media Social media platforms such as Twitter, MySpace, and Facebook among others offer businesses the opportunity to interact directly with their consumers (Thomas, 2008). This enables companies to share relevant products that are released into the market as well as service information ("Direct Marketing," n.d.). Such businesses should develop a good profile that allows the promotion of products and services while also encouraging the customers to give feedback by posting their comments. Samsung Galaxy S5 being a wonderful phone that everybody would wish to have, should be marketed through these platforms. Since most of the consumers interact through social media they will be able to look at the specifications of the phone and read the comments from other customers already using the phone. This will aid in reaching an exponential number of potential customers since the contents of the page can be shared through the entire network that has a large number of people (Thomas, 2008). Additionally, there are also other social media marketing platforms where customers shop for their goods. Such media include e-bay, Amazon, AT &T, Verizon, and Sprint. The last three are known for their tech sales ("Direct Marketing," n.d.). Email Marketing Email marketing is cost effective and measurable in terms of reaching the customers. The components include e-newsletters, ads that appear in other business’ emails, and promotional emails ("Direct Marketing," n.d.). The latter is aimed at generating new leads as well as offers for existing customers. From the database of the customers the company will be able to keep track of the customer’s lifestyle and tailor the message accordingly. This can make the customer see the need to upgrade to the new phone based on the offer that is alongside. The emails should also encourage feedbacks from the customers so as to address their insights ("Direct Marketing," n.d.). Telemarketing This direct marketing alternative or tool involves contacting prospective buyers over the phone ("Direct Marketing," n.d.). The main aim of the method is to generate new customer prospects in large numbers and also provides a unique follow up tool for direct marketing campaigns. This will involve building an accurate data about the customer with reference to the product profile. This opportunity can be used by the company to update the potential customers about the new product-Samsung Galaxy S5. This will make them be aware of the order and hopefully inform their relatives as well as friends. Choice of Alternative for Direct Marketing Campaign The alternatives mentioned above can be used for the direct market campaign by Samsung Company. However, Social media marketing would be the best being that most consumers are ever interacting on the social media. This is because during the Thanksgiving holiday also known as Black Friday and Cyber Monday most customers will flock the online social marketing platforms to evaluate the choices that are at their disposal. They will only go for the best. The company should therefore come up with an offer specifically for Samsung Galaxy S5, which will attract customers who are already in their page as well as those that are not yet on the page (Thomas, 2008). The customers once informed about the product will discuss about it further in the social media platforms and be able to attract other potential customers who possibly are not aware of the phone. The challenges that come with social media marketing can be addressed by creating a good presence within all the social platforms (Thomas, 2008). The fact that the social media platforms are overwhelming daily makes it the best for marketing the product over a short period of time. This can be an arsenal for direct marketing for Samsung Galaxy S5 since more people will be reached. Since it is possible to broadcast the message about the Phone in the network, the message should contain a link that when clicked the customer is able to look at the specifications of the phone, the initial price and the discount or offer being given should they purchase the phone. For the customers willing to purchase the phone after reading the message again a link should be availed that when clicked will allow them to make a purchase online from the online channels such as Verizon, AT&T, and Sprint. The potential buyers can read more about the phone analyze the prices and evaluate it with other products. This means that the offer that Samsung is giving should be based on the research of what the competitors will offer. This can only be made possible by an environment analysis that will give insight on what the company should include and what message will attract more customers ("Direct Marketing," n.d.). The social media tools are good because once the customer is served; they are able to post a comment that will serve as a feedback. The feedback can further be used to market the product directly to potential buyers since they will be yearning to have the same experience as the other customers. Segmentation To increase the return on investments besides creating the best direct marketing campaign, it is wise to segment the market (Thomas, 2008). However, in this case the segmentation targets the customer being reached. Since the only data that the company has is that of their customers, it would be good to target those who have not purchased Samsung Galaxy S5 and have the ability to do so from the records in the database. This is because the ones already enjoying the product would not bother about it that much (Thomas, 2008). The other target would be those using the Iphone 6 and 6 plus. The latter is a good market because in the period of the holiday season they might see the need of exchanging their phones being that they are spoilt for choices ("Types of direct marketing | Queensland Government," n.d.). The period also gives a chance for the users to embrace a phone that is easy to use and has all the specifications that one would ever desire. Implementation of the Direct Marketing Campaign The direct market campaign should be implemented through a correct channel. The channels that offer online technology sales are Verizon, AT &T, and Sprint ("Samsung Galaxy S5 only a penny with Verizon, Sprint and AT&T: New Target Black Friday discount deal (PERSONAL TECH : Tech Times," n.d.). The customers who are on the social platforms should be directed to the websites of the channels so that they can see for themselves the offers that are meant for them. Most people will be going to these channels to avoid being left out once the holiday season is over. Follow Up and Measurement of the Direct Marketing campaign To gauge the efficiency of the direct campaign method it would be necessary to conduct some follow up on the customers who benefit from it. One of the methods to do this is through analysis of the feedback. The statistics of who bought the product and their response should be collected and stored. The higher the number of positive feedbacks the higher the chance, that the campaign was effective. The holiday season sales can also be analyzed statistically to get an insight on the efficiency of the direct campaign. This can then be analyzed to know whether the campaign was helpful or not. To follow up the customers who have bought the goods an email can be sent. The contents of the email should be based on the contacts the customer entered when giving a feedback. The major aim of the follow up is to know whether the campaign achieved its target. Conclusion There are very many methods of doing a direct marketing. The choice of the tool to be used depends on the timeframe available. In this case there were three alternatives that were available. However, due to the short timeline available social media marketing presented the most effective way to reach a large number of potential customers as well as have feedback from them. The message on the social media platforms should be attractive so as to lure more customers who at this period will be making new purchases as well as switching their phones. A good market research needs to be conducted of the consumers, the business environment and the competitors in order to come up with the best direct marketing campaign that will counter theirs. The feedback should also be assessed and analyzed at the end of the campaign so as to evaluate its effectiveness in terms of cost, the demographics and the sales realized in the timeline given. The implementation of the marketing alternative would be through the stated channels. References Direct Marketing. (n.d.). Retrieved from https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/integrated-marketing-communication-12/the-promotion-mix-83/direct-marketing-418-4095/ History - Corporate Profile - About Samsung - Samsung. (n.d.). Retrieved November 13, 2014, from http://www.samsung.com/us/aboutsamsung/corporateprofile/history04.html History Of Samsung. (n.d.). Retrieved from http://www.samsung-mobiles.net/history-of-samsung.html Samsung Galaxy S5 only a penny with Verizon, Sprint and AT&T: New Target Black Friday discount deal : PERSONAL TECH : Tech Times. (n.d.). Retrieved from http://www.techtimes.com/articles/19931/20141110/samsung-galaxy-s5-only-a-penny-with-verizon-sprint-and-at-t-new-target-black-friday-discount-deal.htm SAMSUNG. (n.d.). Retrieved from http://www.samsung.com/us/aboutsamsung/samsung_group/history/ Thomas, A. R. (2008). Direct marketing in action: Cutting-edge strategies for finding and keeping the best customers. Princeton, NJ: Recording for the Blind & Dyslexic. Types of direct marketing | Queensland Government. (n.d.). Retrieved from https://www.business.qld.gov.au/business/running/marketing/direct-marketing/using-direct-marketing/direct-marketing-types Read More