The Role of the Marketing Manager of the Samsung Phone Marketed in the UK - Case Study Example

Topic: The Role of the Marketing Manager of the Samsung Phone Marketed In UK Student Name: Course: Business Institution: Tutor: Date due: Samsung Introduction Back in June 2010 the Samsung Galaxy S II was reviewed and proclaimed as the best phone in the UK market today, as in the observable universe Samsung Galaxy II just has got better! "Phone of the Year" award was given toSamsung Galaxy S II by Mobile Choice UK in November 2011(Florian, 2011). Galaxy S II is "Samsung's best phone ever" which "combines excellent hardware with top-line social networking, email, sat-nav, web browsing and media features". “Best Phone Camera”, “Best Phone Video”, “Best Phone Android “Best Phone Media” were the other awards warn by the Galaxy SII.Samsung Galaxy SII is the first Samsung phone powered by a dual-core processor. Galaxy SIIhas an unbelievable 4.3 inch Super AMOLED Plus touch screen and runs an Android version 2.3 (Gingerbread). Samsung Galaxy S II market competition In the year 2011, lots of attractive Smartphones came to the market mainly HTC’s Desire, LG’s Optimus 2X and 3D, Apples iPhone 4S and Samsung’s Galaxy S 2. Looking closely in to these phones it is seen that early market leaders like Apple and HTC will be conquered by the new comers like LG and Samsung due to the offered amazing features. Out of all the competitors Samsung Galaxy S 2 is elevated due to the smart features it comes with which include those discussed below. Design Samsung Galaxy S II design is the major attraction to the consumers. It’s a simple and usable single block with rear panel giving good grip to the device while smooth front panel gives an amazing touch screen experience. The built is pretty solid and appears to be durable. When it comes to dimension, it’s very thinner (only 8.5mm) than many other competitors, yet larger in width and height of course to accommodate huge display. Considering the weight its way lighter (Only 116g) than most of other same level competitors. In front panel every component is placed in scientific manner, well proportionately. Touch buttons are highlighted by a backlight which is very smooth design. Proximity sensor and the front camera are also carefully integrated with the design. The rear panel, camera and LED flash is seamlessly integrated with design in much protective way(Kevin & Nigel, 2006). Operating System Another major contributing factor the Galaxy S II to become the best is its Android Mobile OS. The brand comes with the version 2.3, Gingerbread. Since its open source, Samsung has developed its own version to go with the device and its features. Android has recently developed another version named ‘Ice Cream Sandwich’ which is also going to come for Samsung Galaxy S II. Hardware Galaxy S II hardware is completely unbeatable, by any Smartphone available, it hasCortex A9 1.2GigaHertz dual core processor,1 GB RAM,and 16/32 GB internal memory turns it in to a super fast mobile device. This enables fast internet browsing, data connectivity and gaming as well. Built in Accelerometer, Gyroscope and proximity sensor enhance the gaming experience even more. A built in compass and GPS-A devicequalifies it as a standard feature of any Smartphone(Geoff, 2012). There is a 3.5 mm audio out andmicro USBdevice which also could act as HDMIout. Phone comes with plenty of storage, in case of more storage; there is a micro SD slot card that supports a maximum of 32GB. Display Galaxy S II is having 480 X 800 pixels 4.3 inch display with pixel density of 217 pixels per inch which is pretty much standard. But it’s a Super AMOLED display which gives you contrasting colors with 16 million colors.  This display is good enough for general operations, web browsing and gaming as well. It’s coming with multi touch sensitivity again pretty much standard for any Smartphone. Display is covered with a denser glass called Gorilla glass to protect the display from scratches. Looking at Samsung Galaxy S II battery usage, talk time, standby time etc, the figures are amazing compared to other Smartphones. Phone display is the major contributing factor designed specially to save battery life while delivering an excellent user experience. Camera The image quality of Samsung Smartphones was always good and the same applies to Galaxy S II since it’s coming with 8 Mega pixels camera. The camera is accompanied with a LED flash which allows you to take photographs in low light. However single LED flash is way not enough for dark photography. The camera provides you touch to focus auto focusing system, face recognition and image stabilization. Other than still imaging it support 1080p full HD videos at 30 fps which turn your Smartphone in to a professional quality camcorder. If you consider the front facing camera, which is there for video conferencing, is also having 2 Mega pixels. It’s a way good figure compared to other phones and of course you can use this camera as a digital mirror as well(Harris & Frank, 2004). Web Browsing Another major usage of Smartphone is web browsing on the go. Samsung Galaxy S II provide excellent platform for you to browse web with the power of Android Platform and high speed data connectivity. Galaxy S II supports connectivity up to 42.2 mbps HSDPA. Additionally it comes with built in Wi-Fi to connect to internet in hotspots. Therefore you can surf through the fastest possible way on this earth. Other than that controller in the browser is easy to use, especiallywhen scrolling down, Zooming in/out and opening another browser window(Harris & Frank, 2004). Apple iPhone never had a browser that supports Adobe Flash player which was a major disadvantage of that device. Further it never supported JAVA applications as well. Samsung Galaxy S II is having both these advantages which give more flexibility to the users.The Samsung Galaxy S is Samsung's answer to the HTC Desire. It is the largest selling phone of the moment. Marketing Mix Elements Samsung Galaxy S II marketing mix elements include the ones discussed below; Product Samsung Galaxy S II is a development on Samsung Galaxy S Android smartphone. Products are delivered in layers to consumers, for Samsung the first step is to identify the Core benefit of its product. As a famous marketing jargon says that “a consumer who buys a drill bit is actually aftera hole, the drill bit is just the tool to get it”.Based on this Marketing Principle we can point out that Samsung’s core product with the Galaxy SII is Fast Communication. Reason why people have mobile phones is to communicate instantly.Nevertheless, in today’s Modern Marketing Organization the Core product is never the real focus for Marketers when creating a campaign. Marketers when promoting a product tend to highlight the Actual Product and the Augmented Product as our Unique Points of Sale. In this case Actual Product is a Mobile phone, with the latest Android Operating system, 4.3 inches of Amole screen, 8Mp Camera and 32 GB hard drive. Samsung’s logo is on the back of the phone, on the packaging and on the charging cables. The phone is black modern and stylish with a dark leather case. The Augmented Product starts when you turn on your phone, first one must become a Samsung Member, in order to upgrade your phone free of charge and get free prizes on our website. Then if you already don’t have a Google Account you will be requested to create one, giving you instant access to more than 500 000 applications on the Google Market. This latest part of the product, the Augmented Product, goes deep into the consumers mind, as consumers measure the “coolness” of a smartphone by the quality and the amount of applications it has. Therefore this Post-Purchase Evaluation will be based more on the last 2 layers of the product, Actual and Augmented, which are the focus of marketers(Becker & Arnold, 2010). The Classification of Galaxy SII is a ShoppingProduct by definition as consumers buying cycle for a smartphone goes through a selection process, comparison with competitors; evaluate price, quality and style in order to make a purchase decision. However this phone isseen as aSpecialty Product, or a luxury item in a few emerging countries where prices are much higher than regular phones, but that is in a few cases only the majority of buyers will see as a Shopping Product. Place Samsung’s Supply Chain aims to deliver on time, reliable goods to its retailers in order to keep resellers well stocked with products ready for consumers to purchase. Samsung has realized that it has multiple opportunities for improvement, thus has initiated a strategic campaign to overhaul the supply chain management efforts. With this initiative wehave faced out wholesalers to supply directly to resellers who sell straight to consumers. The Supply Chain has adopted a new model and changed the Marketing Channel, in the Consumer Marketing channel it can be defined as the Channel 2. The Channel 2 contains only one Intermediary between the Manufacturer and the Consumer. Marketing experts define it as a Vertical Marketing Network as Samsung Produces and Distributes its own goods. Our Organization Approach is to; work together with our resellers for Distribution and Promotion. To avoid more Channel Conflict Samsung has decided not to sell the Galaxy SII directly to consumers. Even though Direct Marketing Channels works well for companies like Avon and Amway Samsung would jeopardize its partnership with carriers and retailers.Hybrid Marketing Channels with multiple networks are used in some places in the U.S. and China but in an Australia, a smaller market, but we use vertical approach since it is ideal (Hughes, 2011).   Promotion Modern Marketing Organizations struggle to present a concise message across different mediums and platforms. Integration being the key to success, Continuity and Uniformity, strategies changed the Marketing Science forever. Integrated Marketing Communication for Samsung Galaxy SII is been architected since its launch. Days before its release dancers with boxes written “Letters from The World” and the Samsung Logo paraded across Barcelona-Spain to promote the new Galaxy phone. That also created Buzz within the city about the launch. By using the World Mobile Convention 2011, in Barcelona-Spain, to launch the phone, Samsung earned lots of Public Relations from the media about the Galaxy SII and favoring the new trends showed on the Convention. On its release TV Advertisements, Billboards, Radio, Magazine Ads, Website, Micro-Sites, Kiosks, In-store Banners, Sponsorships, YouTube Videos all worked together to promote Samsung’s message across different media platforms all showcasing the new Samsung’s product. Going deeper and unveiling Samsung’s IMC strategy we can identity Major Communication Elements present on this campaign. Mass Communication with Mass Media Advertisement (TV, Magazine,Radio), Target Communication especially in the Sporting Market with the Sponsorship of the London Olympic Games 2012, In-Store Communication with banner ads, and sales force using branded t-shirts, One-to-One Communication with Kiosks’ and Micro-websites promoting the ”Letters from..” concept that interacted with customers.  On this Promotional Mix we could see: Advertising, Direct Marketing, PR, Sponsorship,Sales promotion and E-Marketing.  The intention of the campaign published by Samsung was to create consumer product awareness (Geoff, 2012). Price The pricing strategy operates congruent with mobile carries although major retailers as Harvey Norman and JB-Hifi sell them at AU$600 customer purchase the product no mobile contract, as the phone is bundled on the plan.  However looking on the current price to buy the phone outright it is a Market Penetration Strategy. In this cut-throat market, Oligopolistic, is dominated by a few players, all fighting to keep our market Share, there is no other way for Samsung survival than penetrate the Smartphone market.  Captive-Product Pricing and Product-Bundle Price are Mix Pricing Strategies used by Samsung.  By bundling our product with mobile carries we have a value added offer that include the phone and the cost of using it. Having Google as oursoftware partner we gain profit on purchases of software not included in the product. Various Price-Adjustment Strategies have been used bySamsung Electronics to cater for different segments of the market. Segmented Pricing has been used together with the Product Life Cycle upon launch Skimming Pricing for the early adopters, in different locations and at different times (Kevin & Nigel, 2006).Physiological Pricing is the current adjustment in use to communicate the Galaxy SII’s position towards the iPhone 4 and it competitors. Recommendations Samsung Galaxy SII- SWOT Analysis The Strengths of the Galaxy S II actually go back to our Marketing Orientation defined as the Product Concept, where the company will favor quality, performance and innovation features. This orientation is in line with Samsung’s billion dollar research investments and 40, 000 employees dedicated to develop the world’s greatest technology products. The Marketing Concept should be in line with the huge marketing budget which should always start by understanding the customer needs, integrated marketing and customer satisfaction. Business Review Weekly in November 2004 claimed that Samsung was the world’s 4th largest advertiser in the world. The Samsung’s Total Quality Management approach should focus at driving Galaxy S II customers’ perception as a reliable product backed by a worldwide brand and huge media presence. One of the Weaknesses of Samsung is that they are expensive compared to competitors. Therefore, the management should consider reviewing the prices so that the Samsung products can be affordable to all. This strategy will increase the number of customers. Samsung should also penetrate into the Mobile market and compete with Blackberry and even Apple. With the rapid changes of technologies today, Samsung should efficiently manage the company to be more productive. Samsung is already the leading and most profitable in the market but the competition is still huge thus Samsung must considered. Furthermore, Samsung should look at the major opportunity for the Galaxy brand in the 2012 London Olympic Gamesas Samsung is the major sponsor, thus visibility for all Samsung products should be high. Samsung Galaxy SII- Market Segmentation Samsung Electronics (Mobile Division) operates in one of the most competitive markets of the world. According to the US Federal Communication Commission 67 new Smartphone devices are introduced every year. Samsung’s mobile Galaxy SII is competing against world leaders such as Apple, BlackBerry, HTC, LG, Motorola, Nokia, and Sony Ericson. Microsoft also has joined the market by establishing a partnership with Finland’s giant Nokia. Google, even though still is Samsung’s software partner, has acquired Motorola’s Mobile Division. In a smaller proportion but very competitive are Chinese’s ZTE, China Mobile and Baidu (leading Chinese search provider) with billions of dollars invested in research backed by the Chinese Government. Forbes Magazine has listed China Mobile as the number 1 Chinese company in the world. Under this Oligopolistic Competition, Samsung invests a significant amount of our annual budget in Marketing in order to get a strong Share-of-Voice and distinguish itself from the Noise of competitors. Our Coverage Strategy is arguably a Differentiated Marketing strategy as we have an Extended Product Line with separate offers for each of its segments. An example is Samsung’s Mobile division there is: Galaxy Gio, Galaxy Mini, Galaxy Ace, Galaxy SII,   Nexus S, Galaxy 551, Wave 723, Galaxy S, Galaxy 5, Galaxy 580 and Omina 7. Some may argue that Concentrated Marketing is the actual strategy of Samsung’s Mobile Division as the market is Mobile Phone and Smartphones are the submarket. However it’s clear that with many different products under the Samsung brand (i.e. mobiles, smartphones and tablets) the strategy is to: Differentiate and target different segments in the Mobile Market (Tephanidis, 2011). Samsung traditionally had a conservative image that focused on low-price products for the lower end of the market. With low prices Samsung compete in the lower-market whereas in the upper market it had lesser penetration(Hughes, 2011). To penetrate the upper-market Samsung had to give up our lower-market position and focus on innovation and perceiving a higher brand value. As higher quality was eventually perceived Samsung’s prices also rose. Introduction of the Apple iPhone and technology has repositioned Samsung as a High Perceived Quality but the Galaxy SII, as a new product, is directly positioned against the iPhone 4. With its benefits and features matching the iPhone 4 but with prices slightly under the iPhone price Samsung believes it has a Competitive Advantage over its competitors.  Based on recent Marketing definitions, Behavioral and Psychographic Segmentation are the definitions that best represent Samsung’spresent Segmentation Strategy. Although Geographic and Demographic are highly important in Samsung’s Segmentation Strategy, the emphasis is on Behavioral and Physiographic Segmentation. Smartphone Demographics are 20-40 years, with an income of 51-100K and geographically located in urban city areas. As the whole market is concentrated in those Geographic’s and Demographics, Samsung has to focus on the physiology of Consumer Behavior. As consumer skepticism towards advertising is in its all time high, Samsung also focuses in direct interaction with its customers in order to influence others in their peers group. This Samsung Galaxy S II phone has it all. Users will marvel at the high efficiency games, speed powered downloading, gleaming color display, and slim striking design. This sleek elegant phone will feature Samsung's Touch Wiz 4.0 and Social Game, Music, and Reader uniqueability to function. Another outstanding feature of this phone is its 8-megapixel and front-facing 2-megapixel camera featuring 1080p HD video recording and playback(Becker & Arnold, 2010). What else do anindividual need? Samsung Galaxy S II giveswhat individuals want and more! References Becker, M., & Arnold, J. (2010). Mobile Marketing For Dummies. Canada: Wiley Publishing, Inc. Florian, K. (2011). The Silver Market Phenomenon: Marketing and Innovation in the Aging Society. New York: Springer Heidelberg. Geoff, V. (2012). Making Telecoms Work: From Technical Innovation to Commercial Success. London: Wiley & Sons. Harris, P., & Frank, M. (2004). European business and marketing. New York: Paul Chapman . Hughes, B. (2011). Samsung Galaxy S For Dummies. Hoboken: Wiley Publishing, Inc. Kevin, E., & Nigel, P. (2006). Business applications and computational intelligence. London: Ideal Group. tephanidis, C. (2011). Hci International 2011 Posters' Extended Abstracts: International ..., Part 2. New York: Springer- Verlag Berlin Heidelberg. Read More