Marketing Strategy Samsung Galaxy - Case Study Example

Marketing Strategy Samsung Galaxy Student’s Name Course Professor Date Executive Summary Samsung global exploits has mainly comprised of mobile phones which is its major source of company’s income. Samsung Galaxy series has been a major brand that forms the bulk of Samsung marketing efforts. Despite the intensive competition in the electronic or specifically in mobile phones industry, Samsung market has grown manifold. Samsung Galaxy is a common brand among young consumers. Samsung Company has continually produced creative products with personalized customer service and in turn that has given it a stronghold in the global market and a trusted performance for over a decade. Despite dealing with a wide range of products like Televisions, laptops and washing machines, the present marketing scenario for Samsung Company is dominated by Samsung Galaxy series. The company has continuously launched a number of Smartphone and tablets. Samsung products have been received well and at some markets like India seeing greater-than-anticipated demands. The company remains as the largest manufacturer of Android devices leading it to get a 36% global market share. Samsung has an exceptional marketing strategy majorly as it launches new model almost after a month or less. Table of Contents Executive Summary 2 Table of Contents 3 1.0 Introduction 4 2.1 Product Strategy 4 2.2 Pricing Strategy 6 2.3 Place or Distribution Strategy 7 3.0 Conclusion 10 References 11 Monster Media, 2014, ‘Samsung Galaxy Note | 8 Major Markets’, Accesed [12 May 2015] from http://monstermedia.net/video/. 11 Schoultz, M, 2013, ‘Effective Marketing Strategy for the Samsung Galaxy S4?’ http://www.digitalsparkmarketing.com/. 11 Yovita, K, March 2013, ‘Samsung Galaxy S4 Marketing Mix’, Accessed [12 May 2015] from https://prezi.com/keamgljayidf/samsung-galaxy-s4-marketing-mix/ 11 Linshi, J, April 2015, ‘Samsung-Apple Market-Share’, Accessed [12 May 2015] from http://time.com/3840414/ 11 1.0 Introduction Samsung Galaxy comprise of a series of Smartphone designed which are Android powered. Galaxy series include high-end Smartphone including Galaxy Tab, Note Series and Phablets. Most of Galaxy series has additional style and functionality. This discussion attempts to look at marketing strategy underlying Samsung Galaxy series as it competes in the global market. Currently, the company has sold over 600 million devices (Bhasin 2015). It will specifically consider the strategy through an analysis of 4Ps; Product, Price, Place or distribution as well as promotion strategies. Majorly, Samsung uses product strategy by continuously launching new products like Galaxy Note Series, Y series, S series, Tab series and Grand series. Its latest cellular devices offer an optimized work efficiency, capabilities to carry out business needs, viewing and managing tasks for business professional and high security. The company has creatively targeted active consumers represented by a group of successful, well-educated individuals mostly youth, single or recently married. Regardless of their age, they lead active lifestyles and are also status oriented being likely to be associated with high-quality products. In turn, they pay a premium price for some brands that reflect their lifestyles. 2.0 Marketing mix strategy analysis 2.1 Product Strategy Samsung offers a line of high-quality cellular devices including Galaxy Note Series (Note-PRO, 3 and 10.1 editions), Phablets, Galaxy Y series, Galaxy Tab Series, Galaxy S series, Galaxy Grand series and the latest version Galaxy s5. Its entire product bears Samsung company logo. The firm has continually done research and integrated the most popular functionalities the customers are interested with. In the last five years, Samsung has diversified Galaxy series to include Note Series and Phablets that give consumers the functionalities they want like managing business activities. For instance, Galaxy Note 10.1 edition released in 2014 provides customers with great capabilities a customer would need to complete various business tasks. It also exhibit professional style by reflecting what business-based consumers uses a lot in their day-to-day activities. Samsung Galaxy S5 is another latest offering with highest security and optimized work efficiency. Samsung Note-PRO gives business professional an opportunity to view and manage various tasks with ease (Bhasin 2015). Smartphone and Tablets comprise of the devices that are used by individuals and they comprise the bulk of Samsung’s product development. The company has a strong value proposition creating an atmosphere where customers are expecting new products. Its products are quickly retired and new one gets into the market with fresh and increased concepts, variations and functionality. Sometimes, it only takes less than a month for Samsung to launch a device with added functionality (Bhasin 2015). Its products truly distinguish it from its competitors giving customers a reason to select it. Samsung Galaxy series reflect the latest technology that requires new features to be included in cellular devices. Samsung has witnessed strong sales of its new flagship Galaxy S6 as well as S6 Edge Smartphone. These two products have helped it reclaim its top position by sales that were almost taken by Apple iPhone 6 and iPhone 6 plus (Linshi 2015). Taking Samsung Galaxy S4 released in 2013 as an example, its packaging and design; light weight (130g), rounded edges making it easier to hold, slim design, wide screen (1080x1920 pixels, 5.0 inches) and a recyclable wooden-look-alike box. Features includes; capturing images without shutter lags, dual shot, track workouts, remote TV, Air view to navigate without touching and face recognition lock (Yovita 2014). 2.2 Pricing Strategy There are various approaches under pricing strategy for Samsung Galaxy. First, Samsung Galaxy emphasizes on cost-plus pricing. Their products have huge difference between the selling price and manufacturing price. In turn, they get higher profit per product. For instance, manufacturing price for S4 is USD$244 and handset price is USD$1004 making a profit of USD$760 (Yovita 2014). Secondly, they use psychological pricing as a way to make their product prices seem cheaper for the customers. Thirdly, they use competitive pricing as a way to compete with other competitors like Apple and Google Mobile in the same market. Samsung Galaxy series are priced generally with competition in mind. The company has not set so high prices as a way to signal luxury or prestige like its major competitor Apple. It does not attempt to achieve its sales goals by offsetting low prices in order to sell high quantities of its devices. Majorly, Samsung ensure value pricing practice. In turn, its customers always feel comfortable to purchase new cellular devices to replace the old ones even if they just like a simple feature added to the new product. Samsung Galaxy stays for a short time in the market after which they get overlapped by incoming new products. In turn, competitive prices promote fast and bulk sales. Generally, the price is not really a factor that marks wealth for consumers though people have to save before owning one. In comparison, Samsung Galaxy price is cheaper than those of its competitor like comparison between Galaxy S4 and iPhone 5 (Yovita 2014). The company’s pricing strategy promotes its products to appear as good gifts among the youth. A person can buy as a gift during birthdays, or graduations. Additionally, Samsung has competently defined its positioning and frame of reference. It has made great comparison between its products and those of its competitors particularly in its S3 series. However, all the Galaxy series are priced competitively to offer a good value against the existing competition in the market. The price for Samsung Galaxy has always reflected the competition in the market. Its goal has to compete objectively without setting high prices that might turn away customers from its products and also not offsetting low prices that can affect competitors in the market. 2.3 Place or Distribution Strategy Place means all the parameters like location, distribution schemes and entire management process that a product uses until reaching to the consumer. Generally, Samsung Galaxy target market is upper-class businessmen as well as young socialite. Samsung’s major manufacturing units are based in South Korea, Vietnam, India and China (batteries). Samsung Galaxy series are sold worldwide to get more customers. In turn, Samsung manufactures the product in different countries so as to produce large amounts of handsets (Yovita 2014). Samsung Galaxy series get into the market via different channels. Its products majorly use the concept of channel marketing. Majorly, segments like sales and service dealers, Distributors as well as Modern retail are used for the sale of Samsung products. Samsung retailers mostly focus on chains of supermarkets. The retailers concentrate on demand and opportunities as a way to expand their market share. Samsung Galaxy is using its unique distribution scheme to reach to the market. The company has a single distributor in major cities who then connects with retailers in the vicinities. For instance, in Mumbai, India, Samsung Galaxy series are distributed by SSK, a sole distributor for all its products (Yovita 2014). For instance, in Indonesia the channel of distribution is mostly through wholesalers. The wholesalers then pass to retailers where most consumers buy the product. Another most common way used is distributor buying in bulk and then selling the products to the consumers. Modern retail comprises of vast avenues where Samsung Galaxy reach to the consumers. Most retailers prefer keeping Samsung Galaxy as its brand name and recognizable quality products promote great sales. Samsung being a known international company dealing with electronics is recognizable in various markets. Some of such retailers are distributed evenly in most cities and towns. Samsung also uses sales and service dealers for its corporate sales. The dealers are also authorized by the company to open their exclusive Samsung showrooms. Annual back-to-back releases between Samsung and Apple affect sales and competition in Smartphone market. Apple typically releases its flagship handsets and new iPhone models in the fall. Samsung’s new Galaxy S phones are released in the spring leading to a greater market share. In turn, Samsung sales show up mostly in Q2 revenue (Linshi 2015). 2.4 Promotional mix Samsung uses some effective sales promotion to sell its Galaxy series. For instance, it gave its consumers an opportunity for creating one-of-a-kind memories for dads and mums on special mother’s and father’s day. It had two-part projection campaign that promoted Samsung Galaxy Note and Smartphone. The promotion targeting Father’s and Mother’s Day events attracted thousands of consumers to take a photo with their Samsung Smartphone with added personalized message using a Touchnote app. In turn, people created virtual postcard that were then collected and projected as iconic landmarks across the company’s major markets for other thousands of families to see (Monster Media 2014). The accessories for Samsung Galaxy come with colorful phone casing. The colors ranging from pink, yellow, orange, green, blue, white and grey are eye-catching and also makes it very easy to use the handset. Advertisement forms the bulk of Samsung Galaxy promotional strategy. These can be seen anywhere from TVs, radio, posters, billboards ad, magazine ad, online ad and many more to get more consumers (Yovita 2014). Samsung has a winning promotional strategy that highly revolves around fun, relationship, care and convenience. Most of Samsung Galaxy series adverts are relevant to the target market. Most target market for Samsung are millennial is featured in all of its ads. Most messages are written or suitable for young adult. Its ads grab the attention of views as mostly has great music sound track and superb visuals. The visuals majorly carry the messages. Samsung has strong value propositions by emphasizing on many new features and highlighting them in its ad (Schoultz 2013). For Samsung Galaxy, any new product launched gets updated in cross-border and local media. They use newspapers and electronic media to promote new launches and to ensure that consumers are informed about Samsung new products and their goals. Promotion is its strongest pillar behind its marketing mix strategies. In major cities, there are posters and hoarding. In most cases, celebrities are invited during launches of new product. For instance, to promote a global appeal for Samsung brand, it often frame celebrities like Amir Khan as brand ambassador. Samsung usually uses5% of its total revenue generated from sales in its promotion efforts. For instance, in Mumbai, Amir Khan was present for official launch of its latest Wave and Galaxy S (Bhasin 2015). Samsung also uses public relations; writing articles to appear in trade publications and putting out new releases are used as part of its promotional schemes. 3.0 Conclusion Samsung Galaxy series use highly developed technologies. All its products that are recently launched into the market truly discriminates it from its competitors. They in turn build their promotional messages on them by giving customers a reason to select them. Bringing them all together, Samsung is a technology leader. That alone is capable enough of affecting the marketing mix. All the other strategies like distribution, pricing and promotion compares with the other competitors. References Monster Media, 2014, ‘Samsung Galaxy Note | 8 Major Markets’, Accesed [12 May 2015] from http://monstermedia.net/video/. Schoultz, M, 2013, ‘Effective Marketing Strategy for the Samsung Galaxy S4?’ http://www.digitalsparkmarketing.com/. Yovita, K, March 2013, ‘Samsung Galaxy S4 Marketing Mix’, Accessed [12 May 2015] from https://prezi.com/keamgljayidf/samsung-galaxy-s4-marketing-mix/ Linshi, J, April 2015, ‘Samsung-Apple Market-Share’, Accessed [12 May 2015] from http://time.com/3840414/ Bhasin, H, May 2015, ‘Marketing mix of Samsung galaxy’, Accessed [12 May 2015] from http://www.marketing91.com/marketing-mix-samsung-galaxy/ Read More