Marketing Strategies for Mature and Declining Markets for Galaxy Tablets - Example

Strategic Marketing Plan Name: Tutor: Subject: Date: Executive Summary The GAXALY Tab is the latest product from Samsung Company. The tablet has been developed through tablets industry after the deep understanding of the consumers’ taste and preference. Galaxy contains core on-the-go benefits that consumers are looking for, to create a whole user experience. The GAXALY Tab is a portable device that features the world’s first and largest play back High Definition display. The screen has a high-resolution screen that provides an immersive viewing experience. The Tablets are manufactured with all the features that can satisfy the need of the customers entirely. Tables of Contents Executive Summary 2 Introduction 4 Main Body 5 ii.Strategies for maturity stage 6 iii.New Market Entry 6 Pioneer 7 i.Market Niche 7 ii.Price skimming 8 Growth Strategies 8 i.Market penetrations 9 ii.Market development 10 iii.Product development 10 iv.Diversification 11 Marketing Strategies for Mature and Declining Markets for galaxy tablets 12 i.Mature Markets 12 ii.Declining Markets 12 iii.Market Economy 13 Organizational Structures 14 i.A matrix organization 15 Marketing plans 16 SWOT of Samsung Galaxy Tabs 17 i.Strength 17 ii.Weakness 18 iii.Opportunities 18 iv.Threats 18 19 Marketing metrics and marketing audit 19 SMART OBJECTIVES 19 Marketing Audits 20 The marketing environmental audit 20 Conclusion 21 References 21 Introduction Samsung Galaxy Tabs are products of the Samsung Electronics Co. Ltd. The company introduces the product with a mission of satisfying customers’ needs in the market. The product is currently available across the world. It has all the features that anyone can think of. The product is the latest tablet running Android (Fred, 2013). This essay will focus on the Strategic Marketing Plan (Part II) of the Samsung Galaxy Tabs. The plan will cover various marketing strategies that are essential for boosting the sales of the products. Main Body i. Product life cycle This has been a vital concept for Samsung Galaxy Tabs for the marketing team. The concept is essential because it helps the marketing team to understand the growth stage of the galaxy tab. Currently, the Samsung galaxy tabs are on its maturity stage. The graph below shows the stage at which Samsung Galaxy Tabs have gone through, and the current stage of the product. The life cycle of Samsung Galaxy Tab is currently at the maturity stage. The company is enjoying sales though the growth is slowing down as compared with the previous stage. The main reason for this is that the Samsung Galaxy Tab is facing tough competition in the market. The main competitors’ product includes Google Nexus 7 and Apple iPad mini. These two products are new in the market, and they are taking the market by storm. However, the marketing manager and his team are strategizing on how to extend the maturity stage of Samsung galaxy tab in the market. This is possible provided the company will market the galaxy tab aggressively. It is essential to convince the customers that the Samsung galaxy tabs is a product that is unique in terms of features and can last long. The company can also use diseconomy of scale to offer competitive prices so that they can retain, and attract potential customers in the market. ii. Strategies for maturity stage The main strategy of maintaining Samsung Galaxy Tab at this stage is by differentiating it from Google Nexus 7 and the Apple iPad mini. This can be done by adding more features than those of competing products. Furthermore, the company can utilize the large profits that are realized, at this stage, to market the product extensively. Finally, the company can decide to priced the product competitively. iii. New Market Entry The marketing team needs to carry out market research so that they can identify new market for the Samsung Galaxy Tab. The company can also consider changing the image of the product by improving the features such the megapixels of the camera, the internal storage and even install 4G internet. These are some of the features that attract the attention of many customers, and even potential customers. In summary, the main features, to be improved on the galaxy tab comprise of the internet features and price. These elements are very sensitive to many customers. According to Samli, 2013, 80% of customers in any market are price sensitive. It is, therefore, essential for marketers to price galaxy tab knowing clearly that many customers are price sensitive. However, there is a danger of under pricing the product. Customers might feel that the galaxy tab is of low quality. It is, therefore, essential to apply price discrimination in serving different markets. Pioneer i. Market Niche Samsung galaxy tab is a product that is in high demand. The product from Samsung Company is currently doing well in the market though the competition from Google Nexus tablets is very high. However, Samsung galaxy enjoys market leadership position. This is improving the image of a Samsung galaxy in the minds of the consumers. Everyone feels that the galaxy is superior in terms of its features and content. Serving market niche has also enabled galaxy to gain customer loyalty making it a market leader. There are various advantages that are attached to the status of market leader. Some of these advantages include: I. Galaxy awareness in customers' minds is increasing II. Premium prices for galaxy tablets due to the leader status III. Increasing galaxy tab life cycle. For example, it lengthens the maturity stage of the galaxy in the market IV. Galaxy tab gets more publicity due to the leadership status V. It lowers galaxy tabs cost due to economies of scale ii. Price skimming Samsung Company is obsessed with a market share. The company is strategizing on how to maintain the market share they enjoy at the moment. It is not simple to remain at the top when the competition is tough. Samsung Galaxy Tabs uses a skimming strategy while its main competitor: Google Nexus tablets follows a penetration pricing strategy. According to Patel, 2013, any strategy adopted has less impact because the ultimate success often depends upon both circumstances and execution. However, galaxy tabs will benefit through the application of price skimming. First, it is possible to have an insight of what consumers are willing and able to pay for the galaxy tab. Secondly, price skimming can create an aura of prestige around the Samsung galaxy tabs. It is possible to analyze the effect of the price. If it is too high, then it is possible to re-price the product without any complication. Finally, late adopters are always willing to adopt the operating price because they will be convinced that the present price is the standard one. Growth Strategies i. Market penetrations This is a growth strategy whereby the Samsung galaxy tabs can target only the existing customers in the market. This strategy is used when the tablet industry wants to achieve the following (Hart-Davis, 2012).  I. If the industry wants to increase or maintain the market share, it is necessary to use market penetration. The galaxy tabs’ prices are very competitive, the industry is vigorously advertising the tabs. The industry is also using other promotional strategies such as personal selling II. This strategy is also effective for secure dominance of growth markets for the tablets III. This growth can be utilized, by the tablet industry, to dominate the market by offering tablets at the competitive prices. This will help to drive out all the competitors, both the existing and the emerging ones. IV. Tablet industry can also manipulate the existing customers to increase the usage of tablets. This is can be done by introducing loyalty schemes. In summary, a market penetration marketing strategy for Samsung galaxy tabs is just business as usual. The tablets providers are focusing on the daily market for the tabs. The tabs’ provided have first knowledge of the competitors in the market and also the need of the customers. However, this strategy requires high market research to ensure that the Samsung galaxy is still relevant in the market (Patel, 2013). ii. Market development Because of high competition and the fact that the tablets have reached its maturity stage in their life cycle, the industry is looking for means of selling the tablets to the new markets. Some of the possible ways of achieving this objective include; 1. The industry exports Samsung galaxy tabs to the new country looking for new markets 2. The industry frequently changes the packaging of a Samsung galaxy to ensure that it remains attractive in the market 3. The industry is also developing new distribution channels that are efficient to ensure that the galaxy tabs reach targeted market in time 4. The galaxy tablets are priced differently in different markets to ensure that all categories of customers are equally satisfied According to Samli,20123, he believes that market development is riskier than the market penetration because it requires a lot of efforts in marketing the galaxy tablets. iii. Product development This is a situation whereby the industry wants to develop a Samsung galaxy with extra features so that they can attract existing customers in the market. This is quite possible provided that the company install new features in the Samsung galaxy. These features need to be attractive to the customers, and features need to be worth using. Furthermore, the company needs to ensure the galaxy is friendly in its usage and convince the customers that the galaxy last long regardless of its usage (Hart-Davis, 2012).  The strategy of galaxy tabs development works efficiently in situations when the galaxy requires differentiation from other tabs such as Google Nexus and the Nokia Tabs. It is essential for the industry to differentiate its product so that it can be simple for the customers especially the new customers to be able to identify the product. For the Samsung galaxy tabs to be successfully developed, the marketers need to put a lot of emphasis on the following areas: I. The need to research on customers’ needs and how to satisfy them II. Industry needs to market first so that they can attract the attention of the customers III. Research & development and innovating new features to be installed on the tablets iv. Diversification This is the most complex part of the strategic marketing plan for the Samsung Galaxy Tabs. This is because it will require the industry to add new features to the galaxy tabs and sell it to the market. Though it is possible to sell the galaxy to customers who have never used it before, it is also challenging to convince them to buy galaxy for forego Google Nexus or the popular Nokia Tabs (Hart-Davis, 2012).  Furthermore, the strategy is risky because the company is moving to a market on which they have no knowledge or experience about it. The industry need to have a clear idea on what they expect and they also need to be honest on the risk that can be possibly met. Marketing Strategies for Mature and Declining Markets for galaxy tablets i. Mature Markets This is the critical point for the industry producing tablets. It is essential to note that the mature life-cycle stage depends on the ability of the industry to maintain customer loyalty they already have. It is vital to accept the fact that competitors are also doing their best at this point to maintain their own market share. It is, therefore, an industry obligation to tighten their strategy in producing galaxy tabs that are competitive in meeting the expectations of both the present and the new customers in the market. ii. Declining Markets In such a situation, the industry will need to make a decision on whether to divest galaxy tabs or to liquidate the business of selling the tablets. There are factors that are likely to lead to declining markets. These include changes in taste and preference, emergence of substitute products and change in technology. It is, however, necessary to improve the features of galaxy tab so that it can remain in maturity stage for longer. It is possible to maintain a product in the maturity stage provided that the product are continuously improved. Customers are always interested with the products that meet their expectations. They want to feel the value of their money the product. Loyal customers are crucial in any business organization because they will offer a word mouth to other potential customers in the market. According to the management scientist; Fredrick Taylor, a word of mouth can create a significant difference in the entire organization. He considered as a powerful promotional tool for the company. iii. Market Economy There are various factors that are expected in this market such as the emergence of digital products that offer the same benefits with the galaxy tablets. Furthermore, customers are very dynamic because they shift from one product to another looking for satisfactions. Proliferation of the internet applications in various tablets is part of the factors that cause the customers to change their preferences frequently. However, in the market economy, people will tend to buy galaxy tablets because they want it. The theory is that people will always go for what they want provided they can pay for it. It is, therefore, essential for the industry to manufacture galaxy tablets that contained all the features. It is essential to come up with new tablets with new features so that they can attract attention or both the current and future customers in the market. There are various characteristics that are expected to be seen in the market that are targeted. Some of these characteristics comprised of the following: 1. People in this market are willing to buy galaxy tablets that can meet their expectations 2. Money is necessary for life and people will only part with money for galaxy tablets because the tablets has more value 3. Many people will sacrifice anything in return of money; however, they will part with this money for something worthy On the other hand, market economy is essential for the society because of the following factors. These factors include (Samli, 2013).  I. Competition will lead to higher living standards because industries will fight to reduce the cost of their products so that they increase their market share II. Employees will work hard so that they can be retained in their workplace in case layoffs. III. Galaxy tablets will be improved because the industries will be fighting to retain its market share in the market. IV. Increase production of galaxy tablets because more people will want to buy at the money in circulation increase Organizational Structures This is the structure of the Samsung Company, the structure gives a brief overview of how the company operates. The marketing management of tablets industry emphasis on clear communication within the industry so that all employees are aware of the objectives of the company. It is essential to keep all the employees informed so that they can feel part of the organization, and definitely, they will get motivated. Motivation is essential in achieving the company’s goals and objectives. i. A matrix organization This is the organizational structure of tablets industry. The diagram below represents the flow system of information from different departments of the industry. The industry is able to manufacture tablets that are competitive because of horizontal flow of skills and information. This information is vital, and it is mostly used in productions of galaxy tablets in the industry. This structure facilitates the flow of information throughout the tablet industry. Employees, especially IT experts, are required to report on a daily basis to the overall manager concerning the new features that are expected to be installed to the galaxy tablets. The structure  of the tablet industry matrix has necessitated the new support mechanisms within the industry, and also the behavioral patterns that are used in the industry to ensure that the whole industry is efficiently managed (Bastien and Kapferer, 2013). Marketing plans To perform the marketing plan for the tablet industry, it is necessary to carry out SWOT analysis of the industry. This will give a clear picture of the industry and the necessary step that needs to be taken to ensure that the industry meets its objectives. SWOT of Samsung Galaxy Tabs The company is the world’s largest tablet maker closely followed by the Intel Corporation. The company is well known for its products to be original and long lasting as compared to its competitors such as Intel Corporation. The company is a market leader and has the largest market share worldwide in tablets. The company’s galaxy tablets were the first to launch in the market. The table below analyses the SWOT analysis in details (Chan, 2013).  i. Strength ii. Weakness iii. Opportunities iv. Threats Marketing metrics and marketing audit SMART OBJECTIVES This can be done efficiently through analysis of SMART objectives of the tablet industry. The SMART objectives for the galaxy tablet are described below. First, the SMART is an acronym that is well known for the development of goals that can be measured or projected. The objectives of the Samsung Galaxy Tab should be (Garvin at al, 2013) 1. Specific – due to high competition from the market, the industry will improve the features such as installing HD playback, high definition camera, software to enable instant messaging and other features. This is essential to ensure that the galaxy tab differs from those of Apple and Nexus companies. 2. Measurable – to ensure that the galaxy tab meets the customer's expectation, it is essential to collect feedbacks from the customers so that the management can evaluate whether the tablet is meeting the expectations of customers. Other factors that can be used to evaluate the performance of the galaxy in the market is using factors such as frequency of stock turnover, the priced placed by customers and even referrals that are offered by the customers. 3. Achievable – are features installed on the galaxy cost effective? Installing features such as HD play background, front camera of 12 mega pixels and faster internet connections must be considered when pricing the galaxy. The company must ensure that the price is not too high for customers or too low. 4. Relevant – it is an objective that answers the question of whether the new features will create a difference in terms of sales and competitiveness of the galaxy in the market. 5. Time-Oriented – this is the stated time of launching a new galaxy in the market. It is essential to estimate time of implementation so that the management can be able to monitor the performances of the galaxy in the market. Marketing Audits The marketing environmental audit The marketing audit is a concept that facilitate and improve the marketing performance of the galaxy tab in the market. The concept is essential because it helps in describing the process, roles and benefits of marketing the tablets in various environments. Furthermore, marketing audit provides the practical guidelines for marketing the galaxy tabs in a competitive environment. Marketing environment is an essential component that can be used to analyze the marketing environment where there is high competition. The concept allows management to benchmark its tablets against other competitors in terms of the market share, performance and the advertised cost. It is vital to know how the product in the market is performing and also to identify areas that require improvement (Cusumano, 2013) The environmental audit enables the company to identify the opportunities within and outside the company. Furthermore, the concept helps in identifying the strategies used by the competitors who are offering the same products. Conclusion In conclusion, the marketing plan is essential for the company because it facilitates effective marketing of the galaxy tabs despite high competition in the market. Through marketing plan, it is possible to win a large market share because the company will be improving its image and at the same time positioning itself well in the market. 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