SAMSU

NG
Needs fulfilled by Samsung phones are :-

PHONE
IT keeps us connected by SMS and telephone calls , gives us access to email, the
internet, GPS and maps wherever we find ourselves in the world. We can take pics
and videos with it at will, then decide which to keep, which to erase, and which to
S
share with others by posting them online or sending them directly to others using our
phone. For many people it’s now not just their mobile telephone number, but also
their home telephone number as well. It allows us to be reached while anywhere in
the world, or us to reach others from anywhere. It has become the single most
important item in people’s lives since the invention of the laptop or tablet, all at a
fraction of the price ,
limited only by someone’s programming ingenuity and creativity. Many other needs
served by Samsung phones are :-
1) The need for ‘me’ time 
2) The need to socialize 
3) The need to shop 
4) The need to prepare for the future 
5) The need for discovery 
6)  The need for self-expression

Wants of Samsung phones :-

Reasons as to why the consumers want Samsung phones over others phones
1) Bigger infinity o-display with more contrast , faster touch refresh rates , eye
comfort shield
2) The toughest gorilla glass ever given on a smartphone
3) Long battery lives which makes it usable for hours
4) The best camera for recording high definition photos and videos
5) Samsung’s ‘one user interface’ , which is the easiest and most user friendly
android interface
6) Best Connectivity of both data and cellular because of various network bands
7) Performance in Samsung phones are top notch and is industry leading
8) The data storage capacity is maximum and fastest
9) Seamless sharing of data and information among various IT devices

Demand for Samsung phones :- In order to target and attract all consumer groups
(on the basis of income) , Samsung is delivering its phones at various prices in the
market . The details are :-
1) Galaxy S series :- From RS 80,000 – RS 2,00,000
2) Galaxy A series :- From RS 30,000 – RS 60,000
3) Galaxy M series :- From RS 15,000 – RS 25,000
From this diversification , Samsung is targeting several consumer income groups ,
with people of different budgets and spending habits. So the sales will be made only
to those who have sufficient purchasing power along with willingness to spend.
SAMSUNG MARKETING STRATEGY & MIX ( 4 P’s) :-
Samsung Product Strategy:- The product strategy and mix in Samsung marketing
strategy can be explained as follows :
Samsung invests a lot in research and development to deliver the best products to its
customers. Samsung offers a wide range of products in different product categories. The
diverse offerings come under the products of Samsung marketing mix. The products can be
classified into five categories and they are:
Mobile devices- Smartphones like Samsung Galaxy series, Tablets, Wearables, Other
Phones, Accessories

Samsung Home Appliances- Refrigerators, Washing Machines, Cooking appliances, Air

conditioners, Vacuum cleaners
TV/AV – Samsung Television, Audio and Video, Accessories
Information Technology - Printer and Multifunction, Monitor
Memory/Storage- SSD, Portable SSD, Memory cards, USB Flash drives
Samsung Price/Pricing Strategy:
Samsung is a market leader in smart phones and is a dominant player in market for
home appliances.
It uses two pricing schemes which are:
Pricing strategy based on competition is a part of Samsung marketing strategy.
Samsung has not succeeded in becoming the leader in other product categories.
Samsung is a trustworthy brand, to prevent the flanking attacks from its competitors
in the market it’s essential for Samsung to use competitive pricing. Also, Samsung is
a not a first mover in mobile product categories and thus it has to defend its position
in the market.
Samsung also uses skimming price policy. For instance, when Samsung launches
new products with different variants of storage capacity, it prices the product higher.
But when other competitors launch a smartphone with identical features, Samsung
lowers the price and easily prevents the reduction of its market share due to the
launch of the competitor.
Samsung Place & Distribution Strategy:-
Samsung sells directly to the retailers and service dealers. And due to this strategy,
only service dealers are responsible for the corporate sales. Retailers dealing in
technology generally have to include Samsung in their offerings, because of the
brand being world-famous. The distribution is the strength for Samsung.
Samsung also distributes its products using a single distribution company in a
particular location that further distributes the products to other locations.

Samsung Promotion & Advertising Strategy:- Promotion is a strong pillar

in the marketing mix of the company. Samsung believes that advertising the best
form of promotion to engage potential consumers and position the brand. Samsung
promotes new products using newspapers and digital media. To take the advantage
of the huge number of followers of celebrities, the brand has invited many celebrities
to be the brand ambassadors and promote the product. Big placard, hoarding and
posters are put up on highways. Example ,in august 2021 Samsung has signed ALIA
BHAT as its current brand ambassador for galaxy fold and flip series smartphones.
Besides advertising, Samsung also uses different promotional tactics to make
customers buy the product. Samsung is mostly famous for its product quality and
user experience but Samsung is also known for being a giant in sponsoring events.
Samsung also sponsors major events. Samsung offers heavy discounts during
national festivals.
 PESTLE Analysis of Samsung Smartphones

POLITICAL FACTORS 
IMPACT OF POLITICAL TURMOIL :-
Samsung is a multination tech smartphone manufacturing company and it has to follow
existing laws and regulations of different countries. In the case of political unrest in the
country would force the company either to withdraw or not to send its products. As the
circumstances aggravate, expenses would increase, the financial loss of the company
consequently. 

BRIBERY & IMPRISONMENT OF SUCCESSOR :-

There was a controversy that the successor of the company, Jay Y. Lee, has links and ties
with the former president, Park Geun Hye. Even the heir bribed the former president’s
political party with billions of dollars. The court found Jay Y. Lee guilty of bribery & fraud
and sentenced him to prison for five years. 
This event shocked the South Korean public and made them embarrassed. It had little impact
on the sale of electronics and smartphones in some areas of the world. For instance, Germany
refused to let Samsung’s Galaxy Tablet in her markets. The sale remained as casual as the
rest of Europe. 

IMPACT OF BREXIT :-
The exit of Britain leaving the EU didn’t have any significant impact on the sale of the
company. There could be several impacts of Brexit on the UK and EU, but none of them have
impacted the company’s growth. The rivals of Samsung, Apple, and Mac, increased their
prices by 25% and 20% in the UK after Brexit. 

ECONOMICAL FACTORS 
ECONOMIC FALL IN DEVELOPING ECONOMIES :-
Samsung has recently opened many location points in different parts of the world. It paid off
very well in developed countries like the US. But economic conditions in the
underdeveloped-countries aren’t very good. The buying power of ordinary people is declining
in the developing economies. The prices of Samsung are becoming out of reach customers. 

POST-PANDEMIC (COVID-19) ECONOMIC STRATEGY :-

Factors like the impact of post-pandemic (covid-19), economic downturn, fewer jobs, and
less income level are pushing the company to develop such business strategies relevant to the
economic environment of the world. 
Samsung has to launch such products that are affordable to the people in developing
countries. So that the company could increase the market share and increase the revenue that
has missing for the past few years. 

SATURATED SMARTPHONE MARKET :-

Google and Apple’s iPhone are the top competitors of Samsung. Although Samsung is at the
top position in the smartphone market, to stay at the supreme position you have to keep
increasing its sales. 

SOCIAL FACTORS 

FAMILY OWNED BUSINESS :-

Samsung is a South-Korean family-owned business. Being a multinational corporation, the
company offers its products and service locally inside the country and worldwide. 

REMODEL COMPANY’S OFFERING :-

When a company operates its business in different countries, then it has to adjust and remodel
its products relevant to the cultural needs and requirements of different countries. Now
people use smartphones for various reasons like style and showoff along with their needs. 

For instance, Samsung has taken 6 months to offer Android Firmware update. When the
company offered the update, it was closer to its expiration date. Many people could get to
experience the latest update. Google got the firmware update immediately and offered it to
the customers. 

TECHNOLOGICAL FACTORS 
UPGRADED TECHNOLOGY :-
Tech innovations, research, and development are the main traits of Samsung. Whenever the
company launches its new model, it comprises of most advanced technology its time that
competitors don’t have. The brand keeps on updating and upgrading its products every year.
It makes people visit the stores and buy the latest technological product of the company. 

FLAWED BATTERIES :-
Products like Samsung Galaxy Note 7 had the error of overheating batteries resulting in an
explosion. The company had to experience some exploding mishaps of its products back in
2016-17. The company retrieved 95% of its product from the US market and refunded the full
amount to the customers. It cost the company roundabout 5.3 billion dollars. 

LEGAL ISSUES 
THE LAWSUIT AGAINST APPLE’S IPHONE :-
Samsung and Apple had approximately 50 active lawsuits against each other on patent and
copyrights issues in more than 10 countries worldwide. Samsung has won lawsuits in the UK,
Korea, and Japan, whereas Apple won lawsuits in Australia, the US, and Germany. In 2016,
Samsung finally won the lawsuit in the US by making the US Supreme Court reverse its
decision of paying 400 million dollars to Apple. It’s a fact that Apple has won some of the
lawsuits against Samsung. 

ENVIRONMENTAL FACTORS 

ECO-FRIENDLY PRODUCTS :-
People are becoming very cautious about the environment, pollution, and industrial. Samsung
has taken environmentally friendly steps over the years to produce eco-friendly products. The
company is also producing less waste in its manufacturing processes. It’s a plus point for the
company and that’s why people prefer Samsung products. 

CRITICAL ENVIRONMENTAL CONCERNS :-

Some critics also question the company that how Samsung would dump or recycle 4.3
million Galaxy Note 7 that the brand has retrieved from the market. It’s because millions of
smartphones contain waste equal to 28 shipping containers, 1000 KG of silver, 100 kg of
gold, 20 metric tons of cobalt. 

BCG MATRIX OF SAMSUNG

CASH COW :- Samsung Home appliances which include Samsung AC’s,
Refrigerators, Washing Machines and Cooking Appliances are the Cash
Cows for the company. Over the years, Samsung Home Appliances have
become a household name and stand for quality and trust. Samsung has
been able to attain a good market share across different industry segments
and still holds a good potential to grow in the coming future.

STAR :- The products or business units that have a high market share in
high growth industry are the stars of the organization. In the case of
Samsung, Mobile phones, Tab, and TV business fall in the Star
Category of the BCG Matrix of Samsung.

Mobile phones: Samsung Galaxy and Note Series are quite a hit among

customers and have their own base of loyal customers. In order to maintain
its market share and ward off the competition, Samsung launches new
smartphones with new features and design.
Samsung TV:  LED and OLED TV from Samsung are gaining good
traction from the global market and can be considered as the Stars of the
company. The company is experimenting with new technologies and it
coming up with new TV’s with technologically advanced features to gain
customers.

QUESTION MARK :- There are products that formulate a part of the

industry that is still in the phase of development, yet the organization has
not been able to create a significant position in that industry. The small
market share obtained by the organization makes the future outlook for the
product uncertain, therefore investing in such domains is seen as a high-
risk decision.

Considering the performance of all the products that Samsung to

offer, Samsung Printer is one such product which can be placed in the
Question Mark quadrant of the BCG Matrix of Samsung.

High competition and small market share of the product in the industry is
what makes it place in this quadrant.

DOGS :- Dogs are those products that were perceived to have the potential
to grow but however failed to create magic due to the slow market growth.

Failure to deliver the expected results makes the product a source of loss
for the organization, propelling the management to withdraw future
investment in the venture. Since the product is not expected to bring in any
significant capital, future investment is seen as a wastage of company

resources, which could be invested in a Question mark or Star category

instead. With an aim to cater to the growing need of the digital world,
Samsung launched it’s Samsung Smartwatch but the product failed to
achieve the success that it was expected to achieve.

Samsung Smartwatch: Tough competition from competitors like Apple

watch led to the downfall of the product.

PORTER’S 5 FORCES ANALYSIS

Industry Rivalry :- This element is especially significant for Samsung as
the other White Goods multinationals like LG, Nokia, and Motorola not to
mention Apple are engaged in fierce competitive rivalry. Indeed, Samsung
cannot take its position in the market for granted as all these and other
domestic white goods players operate in a market where margins are tight and
the competition is intense. Apart from this, in emerging markets like India
where Samsung has to contend and compete with a multitude of players
domestic and global. This has made the impact of this dimension especially
strong for Samsung.

Barriers to Entry and Exit :- The White Goods industry is characterized

by high barriers to entry and low barriers to exit especially where global
conglomerates like Samsung are concerned. Indeed, it is often very difficult to
enter emerging markets because a host of factors have to be taken into
consideration such as setting up the distribution network and the supply
chain. However, global conglomerates can exit the emerging markets easily as
all it takes is to handover and sell the business to a domestic or a foreign
player in the case of declining or falling sales. This means that Samsung has
entered many emerging markets through a step-by-step approach and has
also exited the markets that have been found to be unprofitable. This is the
reason why white goods multinationals like Samsung often do their due
diligence before entering emerging markets.

Power of Buyers :- The power of buyers for white goods makers like
Samsung is somewhat of a mixed bag where though the buyers have a
multitude of options to choose from and at the same time have to stick with
the product since they cannot just dump the product, as it is a high value item.
Further, the buyers would have to necessarily approach the companies for
after sales service and for spare parts. Of course, this does not mean that the
buyers are at the mercy of the companies. Far from that, they do have power
over the companies, as most emerging market consumers are known to be
finicky when deciding on the product to buy and explore all the options before
reaching a decision. This means that both the buyers and the companies need
each other just like the suppliers and the companies.

Power of Suppliers :- In many markets in which Samsung operates,

there are many suppliers who are willing to offer their services at a discount
since the ancillary sectors are very deep. However, this does not mean that the
companies can exert undue force over the suppliers as once the supply chain
is established; it takes a lot to undo it and build a new supply chain afresh.
This is the reason why white goods makers like Samsung invariably study the
markets before setting up shop and also take the help of consultancies in
arriving at their decision.

Threat of Substitutes :- This element is indeed high as the markets for white
goods are flooded with many substitutes and given the fact that consumer
durables are often longer term purchases, companies like Samsung have to be
careful in deciding on the appropriate marketing strategy. This is also the
reason why many multinationals like Samsung often adopt differential pricing
so as to attract consumers from across the income pyramid to wean them
away from cheaper substitutes. Further, this element also means that many
emerging market consumers are yet to deepen their dependence on white
goods and instead, prefer to the traditional forms of housework wherein they
rely less on gadgets and appliances. However, this is rapidly changing as
more women enter the workforce in these markets making it necessary for
them to use gadgets and appliances. Some of the substitutes of Samsung
phones in the market are oneplus , apple , xiaomi , realme , oppo , vivo .

Stakeholders :- This is an added element for analysis as the increasing

concern over social and environmentally conscious business practices means
that companies like Samsung have to be careful in how they do business as
well as project themselves to the consumers. For instance, electronic
manufacturers are known to decide after due deliberation on everything from
choosing their brand ambassadors to publicising their CSR (Corporate Social
Responsibility) initiatives.
 SWOT ANALYSIS OF SAMSUNG

SAMSUNG’S STRENGTHS :-
1. Dominates the Smartphone Market – Samsung has dominated the smartphone
market for years. According to Gartner , in Q1 of 2020 , Samsung has maintained the
No. 1 spot globally with a 18.5% market share, where as Apple is at 13.7% market
share.

2. Research and Development – The foundation of Samsung has always been on

Innovative research and development. Expenditure in these departments resulted in the
company having a wide range of product portfolio among its competitors. These include
tablet, camcorder, mobile phone, camera, TV/video/audio, Memory Cards, PC, and other
accessories. They have 34 R&D (research and development) centers operating
worldwide. 

3. Award Winning Brand – Samsung’s position as a pioneer for innovation is

backed with credibility. Samsung has won many awards for its offerings. Samsung has
been awarded the CES (Consumer Electronics Show) owing to its designs and products
for 14 consecutive years. It went on to receive 36 CES awards in 2018 along with 400
more awards within a period of 14 years. It also secured 7 wins at the (IDEA)
International Design Excellence Awards.

4. Ecologically Friendly Innovations – Samsung has enhanced its brand

reputation through its environmentally friendly innovations. It secured its ranking at 9th
position in the Top 30 Tech and Telecom companies of the EPA’s 2016 Green Power
Partner list. It also received the Environmental Protection Agency’s (EPA) annual
ENERGY STAR Partner of the Year Excellence Award for five consecutive years. Other
companies do not share this achievement and hence increases Samsung’s appeal
across all business lines.

5. Stronghold in the Asian Markets – Samsung retains a stronghold in the Asian

markets, particularly India and China. Both India’s and China’s business markets are
growing substantially which is why Samsung has taken advantage of the opportunity and
incentivize in these countries accordingly.

SAMSUNG’S WEAKNESSES :-

1. Heavily dependent on the American Markets – It is estimated that both Apple

and Samsung sold at least 70.8% of smartphones in the USA. While Samsung has
diversified its resources and expanded its operations in Asia, it is still heavily dependent
on the American markets. The American economy is very unpredictable and another
recession could put Samsung’s revenues in jeopardy and can damage its operational
resources. That’s why Samsung needs to involve itself into the Asian and European
markets to ensure sustainability and avoid potential failures if the US economy ever
collapses.
2. Decline in Smartphone Sales – Samsung has been experiencing a decline in
smartphone sales since 2017. A similar trend was seen in China due to the price
 sensitivity of the Chinese market. They dump a lot of those products in the Indian market
at a lower cost which harms the Samsung sales. Samsung has tried to shift more focus
in India, but that strategy did not produce substantial results for the company.
3. Product Failures – Any product that threatens the life of consumers erodes
confidence and trust in the company. Samsung has delivered several faulty products to
the market from the exploding GALAXY NOTE 7 to a faulty foldable phone.

4. Dependence on Low-end Smartphones – A large portion of Samsung

revenues come from low-end smartphone sales. Recent events have impacted this
segment more than the high-end smartphone segment, which played a role in
Samsung’s decline from 71 million smartphone sales and 19.1% of market share in Q1
2019 to 55 million smartphones sold in Q1 2020 with 18.5% of market share (as
per Gartner Report).

5. Bribery Scandal – In 2015, Samsung’s reputation was tainted by the revelation

that the president of the company bribed the government of South Korea to facilitate a
merger. He was found guilty and jailed for about one year until Feb. 2018, which eroded
trust bestowed by consumers in South Korea and the world over.

SAMSUNG’S OPPORTUNITIES :-

1. Triple Protection Proposition – Samsung is preparing to launch

its new air conditioning product called the ‘Triple Protection Proposition’
that incorporates cutting edge technology and impeccable construction.
The product is geared towards a target customer base that would ensure
maximum customer retention.
2. HR Management – Samsung can make impressive
transformational accomplishments if it invest in its HR management. Not
only would it be good for its sales but it will also give it competitive
leverage over its rival. The company can utilize its brand image and hire
highly qualified and skilled employees to improve employee performance
and productivity.
3. Diversification and Acquisitions – It is critical that Samsung
avoids the mistake of being limited to just one marketplace. It not only
invites risks from an economic perspective, but it also attracts unwanted
political polarization and negative media publicity. That’s why there is a
business vacuum present in the Asian and European economies in
which Samsung can thrive. It needs to expand its customer base as well.
It can only be achieved through diversification and acquisitions of other
businesses. Samsung is a popular brand and can generate impressive
revenues thanks to its financial standing.
4. Introduce Innovative Products – The smartphone sector is
highly dynamic, with the latest trends going out of style in an instant.
Samsung can attain immense growth by setting the trend with great
and innovative products like the foldable phone.
5. 5G Technology – As the world moves to 5G, Samsung has the
capacity and know-how to exploit this opportunity. The company is
 already in active commercial discussions with operators in the EU to
supply 5G and 6G network equipment. Samsung is one of the top
companies in the UK’s list of potential 5G providers.
SAMSUNG’S THREATS :-

1. Patent Infringement Controversies – Samsung has been involved in controversies

that have threatened its business. Its rival Apple filed a lawsuit against Samsung
for patent infringement which underwent a heated court battle for seven long years
until finally reaching a settlement. However, the company suffered consequences
when a jury decided that Samsung had indeed copied Apple and was to pay $1.049
billion in damages. This suit damaged the company’s reputation and its sales.
2. Increased Competition – Competition from opponents especially from those within
the consumer electronics, smartphone products, and computing industries has
reached a record high. Whether it’s Xiaomi, Apple, or Huawei, all the technological
competitors are out maneuvering and outperforming each other to become the best
technology company. This only increases the pressure for Samsung in both
competition and finances.
3. Legal and Regulatory Threats – With the world becoming more globalized and
digitally oriented, governmental authorities have begun issuing their guidelines which
are increasing legal and regulatory threats to companies around the globe. Samsung
is no exception to these rules. Laws differ from market to market, and these strict
regulations cause a hindrance in operations. Failure to comply could even result in a
complete shutdown in the respective market which may be fatal for Samsung.
4. Economic Uncertainty – Recent events have catalyzed uncertainty in the global
market and led to a decline in new smartphone sales by 20.2% in Q1 of 2020.
Financial struggles have forced many consumers to seek recycled or refurbished
phones, which has increased by 24%. Samsung has already experienced a decline
in sales, and it can drop further if uncertainty persists.
5. Rise of Counterfeiting – According to numerous research studies, Samsung is by
far the most counterfeited phone brand. Statistics from mobile benchmarking site
AnTuTu highlight that over 36% of all counterfeit smartphones are Samsung copies.
Also, Samsung Galaxy S7 Edge holds the record of the most counterfeited
smartphone model.
SAMSUNG’S POINT OF PARITY :- Samsung is a leading
competitor for Apple in mobile phones. Samsung also knows that the
iPhone has taken an enormous share of the market by developing a
reputation for having the best-designed product available. Because this
is such a clear, acknowledged point of difference for Apple in the
marketplace, it is very difficult for Samsung to beat Apple head to head
on design as a differentiator.

If I were running brand strategy for Samsung, I would acknowledge that

design is a point of parity against Apple, not a point of difference.
By viewing design as a point of parity, the goal would not be to try
to beat Apple on design, it would be instead to try to be close enough on
design that it takes design off the table as a differentiator. Instead you’d
try to refocus people’s attention on the benefits that make Samsung
phones really stand out over Apple (new features like waterproof
devices, virtual reality, etc. are what they emphasize in their
commercials today).

POINTS OF PARITY & POINTS OF DIFFERENTIATION

1) TV / VIDEO / AUDIO PLAYERS :- Samsung has become the
company with the highest sales of TV’s . They were the first to introduce
3D Led tv’s . They have always had a head to head competition with
SONY in the TV segment . In the past few years Samsung has managed
to become the leading producers of TV . Their possession of Samsung
chip has also enabled them to come up with innovative products like the
smart tv in response to sony’s internet tv . They have been successful in
integrating technology with electronics thus becoming the market
leaders.
#Points of parity :- Both sony and Samsung give importance to
innovation and picture quality , both had tough competition introducing
slim/ultra-slim tv’s . Sony introduced internet TV , while Samsung
introduced smart TV . Samsung also introduced 3D LED tv.
#Points of differentiation :- Samsung has 3 points of differentiation . First
one was it tried to create an emotional connect with the Indian families.
They wanted to project the TV as a member of family through
advertisements that spoke about naming the tv. Second point was
providing more value for the money they pay. The third point was design
, their ad campaigns had tag lines like “design that performs”,”dikhayiye
acha , dikhiye aur bhi acha”.
2) HOME APPLIANCES :- They include air conditioners , microwave
oven , refridgerators , washing machine , vacuum cleaners etc. In india
Samsung has tough competition from another south Korean company
LG.
#Points of parity :- There are a lot of pop’s between Samsung and LG .
Both concentrated on innovation and brought new technologies. LG
bought innovation in the form of side by side door fridge , automatic
doors for fridge , health guard in AC , tallest cooler in fridge , while
Samsung introduced innovation like S series in AC , Digital inverted
compressor that keeps food fresh for 7 days , uniform cooling , bubble
generator in washing machine. Both the brands concentrated on healthy
lifestyle.
#Points of differentiation:- Samsung has a brand ambassador for its
home appliances segment whereas LG doesn’t have a brand
ambassador. Samsung’s brand ambassador is PRIYANKA CHOPRA ,
having such a popular personality as a brand ambassador helps in
keeping the brand in peoples memory. Samsung also develops
appliances specifically for Indian market , they have AC’s designed
specifically for Indian summer , washing machines that protects soft
clothes like Indian cotton , silk etc and also removes toughest of stains .
The most important differentiation is that Samsung’s appliances are
energy efficient and runs on less power.
3) MOBILE PHONES :- Samsung is one of the highest sellers of smart
phones. It has a tough competition with apple. There is a tough
competition between apple’s iphone and Samsung’s galaxy . In india
Samsung had tough competition with Nokia and blackberry , it raced
ahead of them. They used the possession of their own chip to their
advantage and bought about lot of innovation.
#Points of parity :- product features and innovation is a major point of
parity. Nokia focuses on features like music player , and also on
emotional connect with family , which Samsung does it with the guru
phone , while Apple focuses on innovation which Samsung does it with
galaxy phone.
#Points of differentiation :- Samsung main point of differentiation is more
features and better features for the money that you pay. They have the
tag line “sab kuch behtar hai” for Samsung guru , they have Aamir khan
as their brand ambassador because his personality and image of a
reliable superstar who can perform a variety of roles to perfection
matches Samsung’s personality and positioning . Samsung positions its
products with better features than other lower end phones , they also
had first mover advantage in the smart phone segment in india.
 THE ANSOFF MATRIX OF SAMSUNG

Market Penetration :-
Market penetration is carried out by Samsung whenever it promotes its existing
products in its existing markets. The first strategy that Samsung applies is offering
discounts or simply lowering prices. Samsung does this a few months before it is
about to launch a new version of the product. This strategy helps to increase market
share, increase sales, and get rid of the inventory of the product before launching the
new version. The company also promotes increased usage by offering products in
different variants, accessories to go along with the products, software updates, and
so on. The simultaneous launch of products across all markets also increases entry
barriers for competition. The company also forms strategic alliances with local
brands to promote products. Samsung is also known to aggressively promote its
products through all possible marketing channels such as television ads, social
media ads, and print media ads. It also sponsors various technology events to
promote its brand. All of these measures help Samsung boost the sales of its
products in its existing markets.

Market Development :-
Whenever Samsung launches its existing products in new markets, it is developing
its market. Samsung does this in a number of ways. The primary way is to expand
geographically into new markets. These include nations that it has not tapped into
yet and expansion inside nations that it is already in. The company creates attractive
packaging of its products when it launches them in new markets. At the same time,
the company advertises its products with the help of local celebrities and sportsmen
when entering into new markets to create a brand reputation and loyalty amongst
customers. The company also uses various distribution channels such as retail
sales, online sales, and so on. It has to price its products according to the local
currency which is a great concern for the company as it measures its revenues in
terms of US dollars . However, despite this being a risky venture, Samsung has seen
success in various international markets it has expanded into boosting its revenues.

Product Development :-
Samsung consumer electronics division is the market leader in product development.
Unlike Apple that operates only a single smartphone model, Samsung operates
numerous smartphone models and regularly launches new versions of these
products that offer improved functions and specifications. This is also applicable to
various other divisions such as construction machinery, home appliances, and
entertainment systems. The company carries out extensive research and
development to create new products that offer exceptional functionality and
durability. Samsung also improves the existing products it offers by launching slightly
different variants of the already existing products to create new products. The
company launches new products gradually across its various markets. This allows
the company to take advantage of greater sales and revenues associated with new
products.

Diversification :-
Samsung follows a conglomerate diversification strategy. Its extensive product
portfolio of numerous industries shows that Samsung has not limited itself to
horizontal diversification . It has expanded into unrelated industries various times
and succeeded. The company does detailed research and spots industries with
growth potential and enters them. This allows the company to serve greater markets
and offer diverse products and services. The name Samsung is associated with
different products and lines that may even confuse customers that lack knowledge.
The diverse portfolio is not seen very often in other brands.

SEGMENTATION:
One of the fundamental principles of marketing is the segmentation of
the market. Segmentation means the splitting of the market into groups
of end users who are:
1. Maximum similarity within each group
2. Maximum difference between groups.

 GEOGRAPHIC
It has Samsung Guru Segment for rural areas as well as Galaxy
segment for urban areas. Samsung is one of the largest
manufacturers of mobile phones and it shares the highest cell phone
customers with Nokia in India. It has something for everyone.  
  
 DEMOGRAPHIC
Samsung has mobile phones for youth, age of 16-29, for
businessmen etc. for middleclass youth it has Samsung Guru which
is for govt. , lower class workers also. Guru has many variants; it is
coming in 3G also. It is a good option if you want to get a cheap 3G
handset. Samsung Galaxy is a good option for youth as it has many
attractive features as Wi-Fi, 4G/5G . Galaxy is also for Businessmen .
Samsung has partnered with IT industry leaders to bring you the most
relevant enterprise solutions and the most comprehensive mobile
implementation of Exchange ActiveSync. Decidedly adept in security
concerns and the answer to your every business need, the Galaxy S
series and NOTE series is ready for serious enterprise usage.

 PSYCHOGRAPHIC
Samsung mobile is available for those customers too who have their
choice based on their lifestyle. Samsung came with some so fancy
mobile phones specially for girls and cheaper touch screen stylish
phones so that everyone can enjoy touch screen at the rate of normal
mobiles. Samsung has its range of mobile phones start from 1200to
32,000+.

TARGETING:
After segmenting the market based on the different groups and classes,
the targets need to be chosen. Samsung mobiles have the following
target customers:
 Trendy young people.
 Professionals.
 Large businesses.
 The common cellular phone users.
 Organizations such as: services to public safety, the government, and
both utility and manufacturing enterprises.
 Institutional sales for colleges.
 Target is not only number driven but also about acquiring and
retaining customers.

POSITIONING:
Positioning is about the customer perception about the brand as being
different from the other brands on specific dimension including product
attributes.
 The strategies adopted by Samsung to position itself in the Mobile
Phone market are as follows:
 It focuses more on the real margin which comes from mid-to-high-
end segments
 Samsung Concept Store
 Market making & category creation in small towns
 Wider Care Network
 Access to Samsung care line
 Pioneering in the 5G segment of mobile phones.
 Branded itself as a synonym for quality.
 Created a Unique Brand Image for itself as a high end value driven
brand.

DIFFERENTIATION :
In making themselves one of the most quality and innovative brands
within the electronics industry, Samsung strives to be sustainable and
achieving a sustainable competitive advantage by ensuring it remains as
the leader within the digital market. The policy at Samsung is "We will
devote out human resources and technologies to create superior
products and services thereby contributing to a better global society".
As a result of achieving and attaining a competitive advantage and
based on its policy, Samsung has differentiated its products from its
competitors from a platform of three categories. These categories are
product attributes, firm linkages, and firm-customer relationships. The
products produced by Samsung are similar to those produced by its
many competitors, thus making the company deal with this sort of
competition in five different industries. Samsung ensures that the
features it incorporates within its products are different and unique, e.g. it
added a pod cast feature within its headsets so as to give more
functionality to customers.