Samsung Marketing Plan Essay Essay
I. Executive Summary
“At Samsung. we follow a simple concern doctrine: to give our endowment and engineering to making superior merchandises and services that contribute to a better planetary society” ( samsung. com/us/aboutsamsung ) . At Samsung we like to believe of the full universe as non merely our clients but as our household. We aspire to handle each and every one of our clients like they are the most of import. We benefit our clients by supplying the most advanced electronic devices at the lowest possible monetary values. We have a broad scope of electronic merchandises including computing machines. cameras. telecastings. nomadic phones and much more. Here at Samsung we have hired experts from around the Earth to assist us progress our engineering and to assist us go the figure one electronics maker on the planet.
Our employees are besides portion of the Samsung household and we treat them with the extreme regard and seek to give them every possible chance to win at the company and in life. The Samsung household is non merely on the cutting border of engineering. but we are besides one of the planetary leaders in environmentally safe and ecologically sound concern patterns. We strive to minimise our C footmark. while trying to make sustainable work environments for the hereafter. For over 70 old ages Samsung has been bettering the lives of its employees. its clients. and the universe. In order to be successful in concern one must make prosperity and chance for everyone around them. so that is why we take great pride in all of the communities we operate in around the universe. Samsung Electronics’ vision for the new decennary is to “Inspire the World. Make the Future” ( samsung. com/us/aboutsamsung ) .
II. The Challenge
Samsung Electronics primary merchandises that will be marketed are LCD and LED panels. nomadic phones. telecastings. semiconducting materials. camera’s and camcorders. While there are many more electronics and contraptions we offer these are the chief focal point of this selling program. The current ends we have for these merchandises are to acquire a big per centum of the market portion. Like many other electronics companies we are non chiefly focused on the short term ends of maximal profitableness but on the long term. chiefly market portion. In this study we will sketch the chief schemes we will use to accomplish the big per centum of the market that is our end. This study will besides give elaborate projections and prognosiss of the gross revenues required to make our mark market and accomplish upper limit market portion.
III. Situation Analysis
Samsung Electronics. one of the subordinate company of Samsung Group. is one of the leaders of the planetary market in hi-tech electronics fabrication and digital media. It produces telecastings. cameras. place contraptions. nomadic phones. and computing machines. Samsung Electronics strives to procure three nucleus capablenesss: merchandise leading. market leading. and people-centered leading. It provides high quality and on a regular basis updated merchandises to farther guarantee its success as a top electronics maker. As a world-wide corporation. SEC seeks “to create superior merchandises and services. thereby lending to a better planetary society. ” Samsung improves the quality of mundane life of users with advanced family contraptions uniting manner and engineering excellence while taking the industry in green engineering. Besides. its research and development attempts are specially concentrated in the country of technological capablenesss and developing new growing merchandises such as smart phones. Samsung is the leader of engineering with epicurean. alone design.
Samsung Electronics’ merchandises non merely for Korean market. because the merchandise is appropriate for everybody from every state and every age. Mobile phone that uses Android is a tendency now. and Samsung Electronics is following this tendency.
As the market of today has been globalized. there are many trade names that offer same type of merchandises and vie against each other to derive portion in the market. Harmonizing to the firm’s informations. Samsung sold 89 million smartphones into channels in the first one-fourth of 2014. up from 69. 4 million units in the same one-fourth of 2013. While that figure represents singular on-year growing. the low-end market grew even faster and Samsung’s smartphone market portion really declined to 31. 2 % from 32. 4 % in the year-ago one-fourth as a consequence. This marked the first clip in four old ages that Samsung’s planetary smartphone market portion declined.
Rivals of Samsung in Smart Phones are:
The biggest rival for Samsung Electronics. From 2011 Apple and Samsung Electronic ever compete each other in smart phone. It is iPhone versus Galaxy Note and Galaxy S HTCThe first company that produces phones with Android nomadic device and the first company that produce first touch screen smart phones in the universe. In the 2nd one-fourth 2011. HTC become 3rd largest smart phones company. after Apple and Samsung. Climate
Political and legal environment
Samsung has been at times subjected to political action jurisprudence suit. For case. it has been subjected to copyright jurisprudence suit.
The recession that hit America in 2007 negatively affected the sale of Samsung phones in the US. Fluctuation of the dollar besides affects the sale of Samsung phones.
Social and cultural environment
There has been a tendency in assorted topographic points that Samsung produces the best smart phones. Therefore. consumers around the universe are influenced by this impression that Samsung produces the best smart phone.
Samsung is ranked as one of the most advanced companies. The package and applications available in the Samsung phone makes it sole. In the planetary dynamic economic system. engineering has developed more rapid than of all time. Improvement in engineering made the electronic merchandise cheaper and cheaper. Gap between scientific findings and new merchandises has been shortened. Product lines besides are completed and updated on a regular basis. Samsung has strongly focused on its quality. For this ground. a great sum of money has been invested in engineering betterment. To last and farther win rivals. Samsung spends a great sum of fund on R & A ; D. SWOT Analysis
Customization – Most of Samsung’s hardware can easy be integrated with assorted package. High quality merchandises – Samsung has won many awards on its high quality merchandises based on consumers’ evaluation. R & A ; D and Innovation – Samsung has the best invention and design. It has the ability and resources to utilize the latest engineering and offer new and exciting characteristics often. Strong clasp in Consumer Electronic – Samsung’s trade name is recognized globally and holds a important part of the market portion in about all its merchandises. Focus on environment – Samsung’s merchandises are environment friendly. Low production cost – Samsung has set up many fabrication workss in low cost locations such as India. therefore they save on cost of production significantly. Cultural variegation – Samsung has a batch of employee in local and planetary.
Relatively low net income border – Compared to other engineering companies. Samsung has low net incomes border. Samsung does non make its ain package therefore it frequently relies on other beginnings to finish the merchandises. Main rivals are besides largest purchasers – Samsung’s rivals like Apple are besides its largest purchasers of its electronic equipment. Focus on excessively many merchandise lines in both deepness and width – Samsung Mobile launched a series of Smart phones late which led to cannibalization.
Turning demand of smartphones on consumer market such as India market
Increasing nomadic advertisement industry
Turning demand for choice application processors
Expansion of tablet market
Opportunity in offering extra services to derive advantage over competition and to retain bing clients and pull new 1s.
Obtaining patents through acquisitions.
Intense competition – Apple is biggest rival for Samsung Electronics in smart phones class. Menace from many other low cost companies – Samsung is confronting menaces from low cost rivals in China. Saturated smart phone markets in developed states.
Rapid engineering alteration
Worsening border on hardware production
Breached patents – dearly-won legal war against Apple
Political and economic instability at local fabrication workss – Samsung has set up production workss in low cost countries. which are capable to ample political and economic instability. These instabilities can hold an impact overall company if the crisis gets unwieldy. Many authorities statute laws are now active against the advanced engineering due to wellness and mental concerns.
Samsung Electronics SWOT Chart
IV. Market Segmentation
Samsung Electronics Company is engaged in consumer electronics. information engineering and nomadic communications. and device solutions concerns worldwide. We sell assorted consumer merchandises such as nomadic phones. tablets. telecastings. digital cameras. and camcorders ; place contraptions such as notebooks. pressmans. and computing machines ; memory and storage merchandises such as solid province thrusts and memory cards ; and accoutrements. Besides that. we non besides prosecute in cyber game lucifer hosting. engineering concern venture capital investings. industry of semiconducting material constituents. semiconducting material equipment’s concern. sponsoring of athleticss squad and games. and recognition direction activities but besides provides fix service for electronic devices. general logistics bureau services. confer withing services. and communicating system services.
To carry Indian users. we brought keyboard in 9 Indian linguistic communications. Other characteristics like Split Window. Eye Scrolling. Reading manner. Chat On. Story Album. Music participant with plentifulness of equalizer scenes gives tonss of options for different types of users. Recently we have launched Milk Music service which is a perfect rival for iTunes Radio & A ; Spotify. Furthermore. we besides offer apps in regional linguistic communication which should pull more clients. For illustration. Samsung Group Play app which allows you to portion your content entirely between the Samsung phones via Wi-Fi is besides a ready to hand characteristic. Samsung Electronics is portion of one of the largest multi-billion dollar corporations in the universe. In 2007. it exceeded the $ 100 billion grade in one-year gross revenues for the first clip in its history and spends more than $ 6 billion on research yearly.
Furthermore. in the 3rd one-fourth of 2007. Samsung’s mobile phone division overtook Motorola to derive 2nd topographic point in the market and has once more seen growing in French telephone gross revenues making 14 % portion. Gross saless for the one-fourth were up 17 per centum to 52. 9 trillion won. while net net income grew 42 per centum to 7. 2 trillion won. or $ 6. 5 billion. About three-fourthss of our net incomes came from its division responsible for smartphones. tablets. personal computing machines and cameras. Samsung Electronics operates in one of the most competitory markets of the universe.
New Smartphone devices are introduced every twelvemonth. Samsung traditionally had a conservative image that focused on low-price merchandises for the lower terminal of the market. With low monetary values it was able to vie in the lower cost market. whereas in the higher cost market it had lesser incursion. To perforate the higher cost market Samsung had to give up their lower cost market place and concentrate on invention and comprehending a higher trade name value. Based on recent Marketing definitions. Behavioral and Psychographic Segmentations are the definitions that best represent Samsung’s current Segmentation Strategy.
It has Samsung Guru Segment for rural countries every bit good as Galaxy section for urban countries. Samsung is one of the largest makers of nomadic phones and it portions the highest cell phone clients with Nokia in India. It has something for everyone.
Samsung has mobile phones for young person. age of 16-29. for business communities etc. for middleclass young person it has Samsung Guru which is for authorities lower category workers besides. Guru has many discrepancies ; it besides comes in 3G. It is a good option if you want to acquire a inexpensive 3G French telephone. Samsung Galaxy is a good option for young person as it has many attractive characteristics such as Wi-Fi. 3G. Galaxy is besides for Businessmen. Samsung has partnered with IT industry leaders to convey you the most relevant endeavor solutions and the most comprehensive nomadic execution of Exchange ActiveSync. Decidedly adept in security concerns and the reply to your every concern demand. the Galaxy S II is ready for serious endeavor use.
Samsung Mobile is available for those clients who choose their devices based on their life style. Samsung came with some illusion nomadic phones particularly for misss and cheaper touch screen fashionable phones so that everyone can bask touch screen.
V. Marketing Strategy
A ) Merchandise
It is the really first ‘P’ in the selling mix. Selling begins with the really idea of the merchandise. Without the merchandise. there can be no selling scheme or manner through which a company can fulfill a consumer’s wants and needs. These four variables help the house in doing strategic determinations necessary for the smooth running of any merchandise / organisation. Samsung is present in the undermentioned merchandise classs:
Mobile Phones- Smart phone
Television – LCDs. Plasma Television
Camera and Camcorder
Besides that. Samsung offers the most diverse merchandise mix in the 3D market. offering LCD and plasma 3D TVs.
-55” or 46” category LED backlight show
– . 31” thin. the thinnest Television
– The most technologically advanced telecasting remote with which you can stream unrecorded telecasting to if you leave the room of the chief show and position content straight on the LCD screen on the face of the remote
– The consumers buy the most edged borders ; technologically beforehand Television in the 3D market – Samsung’s 9000 series is the thinnest Television of all time produced.
Packaging has many functions such as protection and presentation. Boxing offers trade name proprietors the possibility to pass on with consumers through specific designs and communicating in the Son. artworks. images. colourss. and merchandise information. It is really of import for marketing communicating and an of import battlefield for the intense competition evident in the markets where trade names compete for the attending of consumers.
The benefit of Samsung in footings of its merchandise is that there is a trust on all Samsung merchandises. Samsung realized that low monetary value is merely a major agencies to vie in the lower-market whereas in the upscale market engineering and trade name are competitory agencies. Samsung decided to perforate the upscale market and gave up the lower-market in order to laud its trade name image.
It repositioned all series of its merchandises such as nomadic phone. consumer electronics and memory flash to the upscale market. Samsung’s new place is in a comparatively higher monetary value class. To Samsung’s higher monetary value will convey more net incomes and at the same clip it implies a better quality of goods. Technology invention Samsung recognized that digital is the future developing facet of consumer electronics. The engineering breakthroughs enhanced Samsung’s trade name image of immature. stylish and strong map.
B ) Monetary value
Monetary value is one of the authoritative “4 Ps” of selling ( merchandise. monetary value. topographic point. publicity ) . There are different schemes made for retail merchants which is different from the pricing scheme of clients because retail merchants buy merchandises in majority sums compared to the clients who get the price reduction when buying in majority measure. The company besides breaks out its public dealingss disbursals in its year-end fiscal release. In 2012. it reported $ 558. 8 million for planetary PR disbursals. Harmonizing to the Ad Age Data Center. the company reported world-wide PR disbursals of $ 476. 1 million in 2011. As the clients are going more monetary value mediums so they want a good quality merchandise in low or in a sensible monetary value. The company is concentrating on the clients to fulfill them with the authoritative and superior quality merchandise at a sensible monetary value. They have different trade names under its merchandise classs and the monetary value is low-cost for people who can easy purchase it.
C ) Promotion Strategy
There are different types of promotional mix that will be used to advance the trade name.
The company will utilize any non-personal paid signifier of communicating utilizing any signifier of mass media to advance the new trade name.
It involves developing positive relationships with the public media organisations. The ways of good public dealingss are non merely to obtain favourable promotion within the media. but besides involves being able to successfully manage negative attending. It will besides catch consumer’s attending on societal media.
It is used to obtain an addition in gross revenues in the short term. Samsung Company has wagess for loyal clients such as vouchers. and notices of particular events.
We take the clip to handle each client like they are our lone concern. We strive for complete satisfaction from our clients.
The house provides information about the new trade name and its aggregation to pull more clients.
The Samsung Company will sell and advance goods and services online to clients.
D ) Distribution ( Place )
Samsung is present through assorted channels in the market. Samsung merchandises sell largely on-line. so clients can happen points with free transportation and put up. Besides that. it besides offers clients the opportunity to analyse reappraisal and physically see characteristics of merchandises instead than hear them in a retail shop. Samsung’s merchandises will non be offered in sweeping shops or Wal-Mart or Target. but the consumer can buy them in electronics retail shops like Best Buy and Fry’s.
In 2012. Samsung displaced Nokia as the leader in nomadic French telephone cargos globally. transporting 29 per centum of all nomadic phones compared to 24 per centum by Nokia. harmonizing to IHS. This twelvemonth. IHS expects Samsung to widen that lead by 11 per centum points. In smart phones – the most profitable and fastest-growing section of the nomadic phone market – Samsung has pulled in front of Apple. transporting 28 per centum of all smart phones compared to Apple’s 20 per centum.
VI. Short & A ; Long-run Projections
Here at Samsung our short and long term ends are rather simple: “to give our endowment and engineering to making superior merchandises and services that contribute to a better planetary society” ( samsung. com/us/aboutsamsung ) . As we have antecedently stated our chief ends are chiefly focused on the long term. particularly per centum of market portion in electronics like nomadic phones and television’s. The immediate effects of our selling scheme will be the continued domination in the nomadic phone and telecasting countries. Our scheme will nevertheless assist us in the long term to derive a greater portion of the full electronics market. Financially our gross revenues will go on to increase yearly every bit good as our entire market portion. With our squad of specializers developing the latest in technological progresss. we to the full intend to be the leader in the electronics industry for old ages to come. Below you will see a chart exemplifying our fiscal projections for the following few old ages.
In decision. Samsung Electronics is a world-wide leader in the electronics and engineering sectors. This selling study is a guidebook that will assist our selling direction squad implement our latest selling schemes. We have provided our executive sum-up. current state of affairs analysis. and future selling scheme. By following the schemes we have merely laid out. we here at Samsung intend on ruling the universe of electronics for the following millenary.
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