Samsung Mobile Phones

1. Describe the chosen products

Around the world, there are dozens of well-known Android smartphone manufacturers. On the other hand, Samsung is the undisputed leader in most categories. Samsung phones are the most popular Android-based smartphones in many areas, including the United States. Samsung was established in March 1938 in Seoul, South Korea. Initially, Samsung was engaged in the business of exporting food to nations in the region Zainab (2019). Over the years, Samsung has become one of the world’s most prominent mobile phone manufacturers and other electronics. Samsung’s market share and revenue are among the highest on the worldwide scale, thanks to the company’s ongoing product expansion. Thus, different marketing methods are used because of Samsung’s variety of mobile phones. In addition, its performance in the worldwide market has been widely acknowledged by the public.

Samsung smartphones come in a wide array of configurations; hence, the company serves more than 600 million people worldwide, making it the world’s largest manufacturer of Android handsets Zainab (2019). Furthermore, Samsung offers a wide range of smartphones, including the Galaxy Note, Y, S, and Grand series and Galaxy S, S II, and Galaxy Tab devices. With multitasking at the top of the list, loyal Samsung users have always preferred Galaxy smartphones. Galaxy smartphones feature big, crisp screens that facilitate multitasking. Since the Galaxy Note II in 2012, Samsung smartphones have had a multi-window mode, and the firm has worked to improve the multitasking experience with each subsequent model Zainab (2019). Furthermore, split screening two applications on a Galaxy phone is as simple as swiping left on the Edge menu and selecting an App Pair. App Pairs, like email and Office or Spotify and Samsung Health, are apps individuals frequently use together.

Samsung also presented several ways it is expanding technology to meet the diverse demands of consumers and increasing daily sustainability. Recognizing that everyone is different and wants to personalize their gadgets, Samsung works to help individuals rethink their interactions with daily technology. This “Together for Tomorrow” concept puts people first.

2. Define the ideal persona of this product

The Samsung smartphone is primarily targeted towards young adults aged 16 to 29. This is since young people are able to swiftly adapt to new trends and technologies. In addition, Samsung is geared at consumers who want to buy a phone based on their personal preferences. Samsung S7 in Pink Gold is one of the company’s premium phones aimed to ladies. The company’s phones are available for as little as $120-$200. In contrast, the mid-range smartphones start at $250 and can be bought for $400. (Ayyoubzadeh, et al., 2022). The $500-$800 price range includes the most expensive high-end equipment. Customer choice, lifestyle, and money are all taken into consideration while selecting a mobile phone. Samsung’s mobile devices may be used by any type of business due to its user-friendly interface.

Aside from that, the business provides exclusive deals as part of its ongoing promotions. As a business, the company’s goal is to both attract new consumers and maintain current ones. This categorization demonstrates the company’s concern for its clients and its provision of mobile devices to them in accordance with their requirements, needs, and budget.

3. Specify the pricing strategies

Samsung employs a few distinct pricing strategies due to its wide range of mobile phones. Pricing strategies may be broken down into categories and matched to specific mobile phones, which include :

Samsung’s Generic Competitive Strategy & Intensive Growth Strategies

To maintain a competitive edge, Samsung’s general strategy and high-intensity growth strategies emphasize technical innovation. According to the Five Forces model used by Samsung, the company competes with technology-intensive companies such as Samsung’s Korean rivals LG, Sony, and Intel in the global market. In today’s competitive business climate, rapid technological innovation is required to differentiate products Eskandarian (2021). In the rapidly expanding global market for cellphones, this is evident. To remain competitive, Samsung’s overall strategy and growth strategies must be founded on technological innovation. The firm’s competitive advantages in the semiconductor, consumer electronics, and home appliance industries allow it to preserve its position as one of the top performers. Samsung’s current business climate and worldwide corporation’s strategic positioning necessitate general competitive tactics and aggressive expansion goals.

Samsung’s Skimming Price Strategy

Samsung’s smartphones have been rated as one of the best in the industry and have a significant worldwide market share. The new Samsung Note 8 and its 8 Plus are examples of models attracting attention in the smartphone industry Wang (2020). Samsung employs the Skimming price approach for these goods, aiming to achieve a high price for its phones before its competitors catch up. Samsung lowers its prices as soon as a model becomes outdated or a competitor releases a similar device.

4. Explain the company planning to promote the product.

Promotion is one of the four Ps in its marketing approach. There are several methods Samsung advertises its mobile phones, including visiting trade shows for each of its items and printing pamphlets and posters. In addition to the company’s website and brochure lines, Samsung provides information on their firm’s variety of mobile phones. Therefore, customers can call 0800 numbers to learn more about specific items and where they can be purchased. According to a press release, Samsung’s sponsorship of the Royal Windsor Horse Show and the Samsung Open tennis event helps raise the company’s overall brand recognition. Furthermore, the Marcoms division is a part of Samsung’s internal communications network that coordinates and monitors the company’s many marketing strategies. As a result of Marcoms’ reliable product and dealer data database, Samsung staff can keep tabs on what promotions are available for which mobile phones and who is engaged.

Samsung employees are concerned about how customers would react to the phone and the business’s latest digital technology, as the corporation employs a range of marketing strategies to attract customers. Advertisements for Samsung products are frequently found in newspapers and other electronic media. Additionally, to these promotional efforts, Samsung utilizes incentive programs, charitable endeavors, and promotional gifts to increase future sales (Ayyoubzadeh, et al., 2022). To gain a holistic understanding of how customers react to a new phone, the firm focuses on customer appreciation and after-sales programs. Additionally, the corporation utilizes local media and social media to tell clients about new items. Celebrities are invited to product debuts in order to help the firm develop a global leadership position in the sector.

5. How did they increase the product reputation and brand awareness?

Notably, because of its innovative products, Samsung is known as a high-quality and dependable maker of smartphones. Adapting to the ever-changing needs of their customers, the firm designs and produces phones to meet those needs. Smartphones from the South Korean giant have made it a household name and a multi-billion-dollar business. The brand and the phones, it produces represent excellence. When it comes to purchasing an Android phone, Samsung phones are the most popular. They are recognized for their products, but they are also known for their excellent customer service. People buy its items because of the company’s quick response time to client inquiries. The product variety is the most crucial and impactful component of the marketing mix.

The company’s marketing strategies, which feature a wide range of components like fingerprint scanners and rapid charging capabilities, also help Samsung smartphones stand out as luxury products. Since realizing that social media may bring in new customers, Samsung has shifted its concentration to this medium in particular. It is feasible to use the S8 as an example of how the excitement surrounding a new phone is built up in advance of its release in order to lure shoppers and innovators alike to desire the new phone when it is released.

6. What’s their customer portfolio quality.

In 2020, the Display Division’s income was KRW 30.5857 trillion, a decrease of KRW 0.4682 trillion from the previous year (1.5 percent ). KRW 0.6556 trillion (41.5 percent) in operational profit was generated as the value-added OLED panel sales grew (Ayyoubzadeh, et al., 2022). The epidemic’s weak consumer sentiment and increasing competition exacerbated market uncertainty in mobile display. They have maintained their place in the smartphone panel industry by extending their client base by delivering unique technologies.

During the year 2021, OLED panels continued to enhance their fundamental characteristics, as smartphone producers are expected to progressively use the technology in their expanding number of 5G models for advantages, including battery efficiency and ultra-thin design. To broaden their consumer base, they also employ technology distinct from the competition (Ayyoubzadeh, et al., 2022). In addition, they work with their customers to secure the technology needed to improve foldable goods’ accessibility and quality. Changing their company structure to QD display in a timely way and building a stable client base in large displays solidifies their customers’ portfolio.

7. Indicate some action plans to increase the profit level.

Samsung’s future strategy is based on a concept it calls “everyday sustainability,” which motivates the corporation to make sustainable practices a priority in everything it does. It has been possible for the company to produce and increase profit via the use of new, low-impact product production techniques and footprint-reducing packaging and a more sustainable customer experience. The Carbon Trust, the world’s foremost authority on carbon footprint, has also commended Samsung for its efforts to minimize carbon emissions throughout the production cycle. Nearly 700,000 tons of carbon dioxide were saved last year thanks to the company’s Carbon Trust-certified memory chips (Ayyoubzadeh, et al., 2022).

Apart from semiconductors, Samsung is also working to increase its usage of recycled materials. Samsung’s Visual Display Business intends to employ 30 times more recycled plastics in 2022 than before to bring daily sustainability to more goods. Over the following three years, the firm also expects to incorporate recycled materials in all its mobiles (Ayyoubzadeh, et al., 2022). Therefore, this will result in conserving the environment and low cost of production for the company leading to increased profits.

The smartphone industry is focused with techniques of marketing and promotion; however, Samsung focuses on the marketing mix to make sure clients are aware of the company’s goods. Alternatively, the Galaxy series is considered a brand builder for Samsung because it has devoted so much effort and money on it. In order to build the company’s brand equity, the marketing mix concentrates on creative and original products with industry-leading customer service. As a result of their user-friendly software and attention to detail in their entire marketing strategy, Samsung smartphones are gaining market share and becoming increasingly popular.

As a result, the foundry industry is expected to remain constrained in 2022 due to high silicon consumption for 5G mobile and strong GPU-led demand for HPCs. Thus, the company’s goal is to significantly boost profitability by extending supply of advanced processes of sub-5-nm technology, increasing sales to international clients, and stabilizing prices for long-term investment.

8. What’re their customer retention strategies

Samsung has several smartphone series, and to get a competitive edge in the market, the firm is focusing on better economic status, as the company has targeted budget-conscious consumers in the market. The goods have a premium constructed quality to attract customers. For effective marketing strategies, the company manufactures smartphones by concentrating on technological innovation and diversifying its product portfolio to retain customers Lee (2022). For effective marketing strategies, the company focuses on branding, social media, continuous research, and product-oriented and pricing marketing strategies.

Notably, Samsung’s smartphones have a strong brand image, and the company is committed to cutting-edge research and development; the company also offers a diverse range of products, attracting customers from different socioeconomic levels. Samsung’s committed customers result from their familiarity with the company’s products and the company’s extensive marketing efforts. Hence, this results in a crucial impact of retaining its customers and building their reputation. As evidenced most recently with the S8, Samsung’s smartphones sell well due to its commitment to product innovation and its considerable advertising budget.

Finally, since Samsung has a well-established market, no one can easily compete with its smartphones; the rate of new entrants is relatively low since new firms must invest a lot of money to compete in this sector. As the industry has grown, it now necessitates large quantities of capital and has high manufacturing costs to match. While patents and other roadblocks may exist due to the high expenses of research and development (R&D), Samsung’s smartphones have a devoted following, and the business is effectively competing in the market. Because of this, Samsung’s smartphones are forced to innovate, but there is less risk.

9. What’s their technology position compared with their competitors

When it comes to the latest technology, Samsung has a leg up over its competitors since it is constantly updating its products to keep up with the times and preserve a competitive edge. AMOLED and IPS display technologies are the newest in Samsung smartphones’ display technologies, based on the company’s breakthrough technology. While Samsung uses a skimming pricing approach to entice users, the business makes constant attempts to promote, brand, and price the Samsung smartphone.

Furthermore, expectations for future smartphone innovation are rising as the newest Galaxy models prepare to be unveiled every year. At every Unpacked event, Samsung smartphones set the standard for the industry with their latest models. Since the first Galaxy S handset in 2010, Samsung has been breaking new ground in both hardware and software by delivering new products every year Lee (2022). Large-screen smartphones with exceptional immersion; the smartphone-stylus combo that enhances productivity and creativity; and the world’s first dual-pixel camera technology have all been game-changers. Aside from its flagship smartphone and tablet lines (such as the Galaxy S7 and S7 Edge), Samsung has also introduced a wide range of wearable devices, including the Galaxy Watch and Gear S3 smartwatches.

For example, Galaxy Note 3 users may now access S Pen functionalities by hovering their S Pen over a screen using Air Command from Samsung. After that, Bluetooth Low Energy (BLE) technology was included in the Galaxy Note 9 S Pen, making it a remote control. A significant difference from prior models was made possible by the advent of Air Action capabilities for the Galaxy Note 10, which allowed users to remotely operate their smartphone while switching camera modes or zooming in or out Lee (2022). According to Samsung’s revolutionary attitude, the S Pen for the Galaxy Note 20 was powered by artificial intelligence (AI) and is now accessible on devices like the Galaxy S21 Ultra or the Galaxy Z Fold3 to give consumers a more sensitive and complex sketching experience Lee (2022).

10. Prepare a competition analysis between the chosen product and at least three similar products in the market

There is no doubt that the current market leaders were not the inventors of the technology. In 1988, Samsung launched its first analog phone, the SH-100, into the market. Unfortunately, only 100-200 pieces of their initial model were sold Madani, Abdulai, and Koosawangsri (2014). Samsung’s mobile phone sales took off in 2002 with the sale of 10 million units of the “pebble-like design” model. Sales of Samsung’s devices continued to rise after then and reached an all-time high of more than half a billion units delivered worldwide by 2012 as may be seen in the Figure below, which depicts the 2012 market share for mobile phones.

In the second quarter of 2021, new market research shows Samsung was the top-selling smartphone in the MEA area. According to the Counterpoint Research Market Pulse, June 2021 study, market expenditure was increased early in the year, resulting in a solid first quarter. COVID-19 disrupted manufacturing in Vietnam, and the company’s market share fell by 4% in Q2 to 16% sales Lee (2022). Furthermore, due to strong demand from consumers in Europe, the United States, Korea, and elsewhere, Samsung reclaimed the top rank with the successful introduction of the Galaxy S21 series. As a result of Apple’s record first-quarter market share in the United States, China, India, and Japan, the iPhone 12 series is still in high demand. Globally and across markets including China, Europe, Latin America, and South Asia, Xiaomi, OPPO, and Vivo have posted all-time high worldwide market share numbers. Huawei’s departure has created a void in the market that has been filled by the likes of Apple, Samsung, and Google.

11. Indicate the unique selling points of the product.

In the case of Samsung smartphones, location, and distribution strategies, as well as concepts of channel marketing, are important considerations. As well as helping customers discover the best solution, sales and service staff at the organization actively seek for opportunities to expand their business. It is also available in-store and at Samsung’s retail locations. Due to the distinct advantages of the market, the organization also targets current merchants.

Bibliography

Ayyoubzadeh, S.M., Shirkhoda, M., Kalhori, S.R.N., Mohammadzadeh, N. and Zakerabasali, S., 2022. A Smartphone Remote Monitoring App to Follow Up Colorectal Cancer Survivors: Requirement Analysis. JMIR cancer, 8(1), p.e18083.

Eskandarian, S., 2021. Strong Privacy for Communication, Browsing, and Storage. Stanford University.

Lee, S., 2022. Internal capital markets, corporate investment, and the COVID-19 pandemic: Evidence from Korean business groups. International Review of Financial Analysis, 80, p.102053.

Madani, F., Abdulai, M., Ha, J. and Koosawangsri, R., 2014. Samsung’s Innovation Strategy in Smart Phones Market. Available at SSRN 3023595.

Wang, H.H., 2020. Competitive Strategies of Smartphone Industry During the Transition to 5G-A Case Study of APPLE and SAMSUNG.

Zainab, R., 2019. A study on customer satisfaction on samsung mobiles with special reference to Shiddas Electronic store Bendoorewell, Mangaluru. SDM College of Business Management.