INTRODUCTION TO MARKETING (MKT410)

GROUP PROJECT:

MARKETING MIX

NAME OF COMPANY:

SAMSUNG ELECTRONICS CO. LTD.

PREPARED BY:

NO. NAME STUDENT ID

1. EZAT NASHRUL BIN LATIF 2023687094

2. NURFATIN ATHIRAH BINTI ABD 2023616212

JAMAL

3. NUR ANIS ZAFIRAH BINTI NIZAM 2023607532

4. NUR ZAHRA BINTI MOHD YUSOFF 2023643296

5. NUR ILYA NATASYA BINTI MOHD 2023479156

SABRI

6. ADIBAH NABILAH BINTI AZHAN 2023424086

CLASS:

AS2221A1

PREPARED FOR:

NUR JIHAN BINTI MD JOHAN

DATE SUBMISSION:

WEEK 9
TABLE OF CONTENT
1.0 EXECUTIVE SUMMARY .............................................................................................................. 3

2.0 INTRODUCTION ........................................................................................................................... 3

3.0 MAIN BODY ................................................................................................................................... 4

3.1 PRODUCT ...................................................................................................................................... 4

3.2 PRICE.............................................................................................................................................. 6

3.3 PLACE ............................................................................................................................................ 8

1. Direct distribution channel ....................................................................................................... 8

1.1. Samsung experience store ............................................................................................. 9

1.2. Online store ....................................................................................................................... 9

2. Indirect distribution channel .................................................................................................... 9

2.1 One – level channel ......................................................................................................... 9

2.2 Two – level channel........................................................................................................ 10

3.4 PROMOTION ............................................................................................................................... 11

4.0 CONCLUSION ............................................................................................................................. 14

5.0 REFERENCES................................................................................ Error! Bookmark not defined.

1.0 EXECUTIVE SUMMARY
This report is about the marketing mix strategy to analyse Samsung brand that include 4
p’s which are product, price, place and promotion. There are various marketing tactics such
as the design of the product, price of the product, channels used and promotion strategy.
These strategies can boost Samsung’s company to be more successful. These days,
Samsung is regarded as one of the highest-quality, most innovative brands in the electronics
sector. In Samsung's fiercely competitive worldwide market, electronics manufacturers under
tremendous pressure to provide innovative products in a short time, at a lower cost, and with
higher quality. Samsung makes every effort to be among the top in the digital industry in order
to get a competitive edge and stay sustainable. Thus, this report will discuss how Samsung
company maintain their brand name worldwide.

2.0 INTRODUCTION
Samsung is a worldwide company based in Seoul, South Korea, with its headquarters
located in Samsung Town. It is the biggest chaebol (business conglomerate) in South Korea,
with several subsidiaries and related companies operating under the Samsung name. Lee
Byung-Chul established Samsung as a trade corporation in 1938. The firm expanded into a
number of industries during the following three decades, including food processing, textiles,
securities, insurance, and retail. Samsung's following expansion was fueled by its entry into
the electronics, construction, and shipbuilding sectors in the middle of the 1960s and 1970s,
respectively. Samsung has been committed to improving the world for more than 70 years via
a variety of industries. These industries include semiconductors, petrochemicals, building
skyscrapers and plants, fashion, finance, healthcare, and hotels, among others. In the
production of digital media and high-tech equipment, Samsung equipment dominates the
worldwide market.
Samsung is reinventing the world via creative new paths, utilizing creative, dependable
goods and services, brilliant individuals, a conscientious attitude to business and global
citizenship, and cooperation with partners and consumers. Samsung Electronics' aim for the
next ten years is "Inspire the World, Create the Future," as expressed in its new tagline.
Samsung Electronics' dedication to motivating its communities via the utilization of its three
primary strengths "New Technology," "Innovative Products," and "Creative Solutions" is shown
in this new vision. Samsung aspires to improve everyone's experience and make the world a
better place through these initiatives. In order to achieve this, Samsung has also developed
three strategic management pillars, "Creativity," "Partnership," and "Talent." Samsung is
looking forward to the future. Samsung is dedicated to becoming a really No. 1 company in
the future and to becoming a creative leader in new areas.
3.0 MAIN BODY
3.1 PRODUCT
As a leading to electronics brand, Samsung needs updated with the latest industry
changes to meet customer satisfaction. Constantly changing innovations, newer features and
improved performance can give a tough competition to its competitors.

Samsung has a diverse product line by selling smartphones, home appliances, audio devices
and more that excels in all areas of product diversity. Their products can be classified into:

1) Mobile Devices: Smartphones, Tablets, Wearables, Phone Accessories

2) Samsung Home Appliances: Refrigerators, Cooking Appliances, Washing Machines,
Air Conditioner, Vacuum Cleaners
3) TV/AV: Samsung Television, Accessories, Audio and Video Accessories
4) Information Technology: Printer and Multifunction, Monitor
5) Memory/Storage: SSD, Portable SSD, Memory Cards, USB Flash Drives

Samsung company has launched the Samsung Galaxy where it focuses on Samsung
Electronics’ flagship line of Android for general use such as smartphones, tablets, laptops and
various other devices. Samsung Galaxy devices were first introduced in 2009 where the first
tablet of the line was the Samsung Galaxy Tab. The following year, the Samsung Galaxy was
launched including other devices such as smart watches and Bluetooth earphones. All
Samsung Galaxy phones and other devices including laptops offer touch screen capabilities
and device pairing that allows customers to use multiple Samsung Galaxy devices
simultaneously.

• Choosing features more than design

Android users will prefer a less-exciting, full-featured high-end device to a sleek device
that can only do a few things. All Samsung smartphones and tablets use the Android
operating system where possible to extend purchase statistics to Samsung users.
Samsung is known for driving innovation with every phone they release, and its users
have placed a lot of value in technological advancements that can improve the
functionality of devices. For example, the ability to use two applications on the same
screen and time with a Samsung device is more important than the size and colour of
the device.
• Trends and innovations from Samsung
Samsung has created a device dubbed as the "Foldable Future". The released device
is a foldable smartphone with its own details. According to a study by CNET (one of
America media website), half of US consumers have been interested in buying the
foldable phone as their next device. This proves that Samsung is the first mover in this
 advanced technology. This type of foldable device is a smart idea from Samsung to
reach the growing consumer demographic when some of users have switched to
foldable devices for work and personal use.

In addition, these devices are easy to complete certain tasks that historically could not
be done on mobile and are able to meet the needs of users at any time. For example,
users can easily switch applications from watching movies to updating PowerPoint.
Apart from that too, foldable users can realize the importance of progress in technology
and the excitement of innovation of a device. The latest, Samsung has announced new
technology for foldable phones. The foldable device this time has more interesting
features such as more portable screen size, more sophisticated specs used and the
ability to expand in the latest way.

• Investment in chip production

Samsung has planned to increase chip production even though some companies have
stopped chip production due to lack of demand from customers. This means that when
demand for chips recovers, Samsung will be ahead in performance capabilities and
will be able to command a large share of the market share. As a leader in chip
manufacturing, Samsung will be one or even two steps ahead of competitors in
smartphone performance. With each new generation of chips, Samsung devices have
faster processing, reduced power consumption and more sustainable performance
over longer periods of time. As Samsung technology will continue to grow and become
stronger, it has become a great channel in advertising strategy.
3.2 PRICE
Samsung uses market skimming pricing when introducing a new mobile phone
with advanced features. By using that, it leads to an enormous profit. When
competitors develop identical items, the price of that specific items will be reduced to
obtain market value and increase the sales. Besides, for other Samsung appliances
such as refrigerators, television, and air conditioners are priced similarly due to the
numerous competing companies selling similar products in highly competitive sectors.
Therefore, in a skimming pricing, there are product are that are sold with higher price.
This is intended to make a huge profit even at the expense of high sales.

Next, Samsung uses product line pricing in their sales for product mix pricing
strategies. They apply product line pricing by releasing a variety iteration of the same
phone throughout the year, with each having a slightly different price to satisfy their
customers. For instance, like Samsung Galaxy S23, a series that has three phones
which are Samsung Galaxy S23, S23+ and S23 Ultra. Then, they have optional product
pricing. It can be seen when Samsung also sells accessory product along with their
main product, such as earbuds and smartwatch. When they have optional product
pricing, customers can choose what they desire and easier to buy. In addition,
Samsung also use captive product pricing. This is because there are certain items that
needs to be used along with the main product. As example, Samsung Galaxy Tab A8
must use along with Samsung C&T Stylus Pen and Samsung Smart Keyboard Trio
500. Furthermore, they apply product bundle pricing in sales. This entails combining
two or more products under a single pricing point. The price for full bundle of items is
cheaper than the price of the individual items. It implies that purchasing a bundle is
more economical for customers. In this context, when newer model of the Galaxy A
smartphone is released in the market, it is bundled with a Galaxy Bud wireless
headphone.

Moreover, this company use promotional pricing for the price adjustment
strategies. It is to attract more customer to buy the product with lower price to increase
short-run sales. For example, Samsung will do a promo sale on 8 December 2023 to
12 December 2023 with 52% off. So, if you want to buy Galaxy Z Flip5, the price is
only RM4499.00 compared to the previous price which is RM4999.00. There is more
product that will be sold with reasonable price such as essential monitor that costs
RM399, washer dryer with hygiene steam only RM2199 and RM1699 for microwave
Jeju Yellow. As a wise shopper, consumer must take an advantage of such promotions
in order to obtain high-quality items at a low cost. On top of that, Samsung do
international pricing. According to the research, South Korea is the country where
Samsung items tend to be the cheapest. As a domestic manufacturer, Samsung
benefits from lower production costs and distribution networks that enables them to
provide their products at bargain prices in comparison to other nations. Besides that,
other Asian countries such as India and Vietnam also offer relatively lower prices for
Samsung devices. These countries have a huge customer base and are key markets
for Samsung, which leading in increased competition among retailers and lower
consumer pricing. Plus, the countries that have a higher import duties and taxes
generally have a higher price for Samsung products such as European countries like
Denmark and Norway. It is because importing electrical items may be expensive,
resulting in higher retail pricing for buyers.
 3.3 PLACE
Place or distribution is one of the elements in the marketing mix. It explains on
how the products will reach the consumers. Place or distribution also refers to where
the products can be found and how they are recognized by consumers, making the
products popular among them.

Several factors need to be considered in determining the place or distribution of

products, including:

1. The characteristics of the marketed products determine the placement of the

products. For example, basic good may be available in most supermarkets or
stores, while premium goods may be found only in specific stores.
2. Customer behavior can help to determine the product placement based on buyer’s
patterns.
3. Accessibility to product allows the consumers to obtain the products from various
locations or channels, such as online platforms.
4. Geographical factors also determine the ease of product access.
Another element within the marketing mix related to "place" is the distribution
aspect. In the marketing mix, the focus of the place component extends to the final
location where consumers make purchases and the process involved in delivering the
product to its intended destination. The distribution process involves sending the
product from the manufacturer to the consumers, encompassing crucial elements such
as warehouses, transportation, distributors, and inventory management. Companies
must develop an appropriate place marketing strategy tailored to the specific product,
as the right placement significantly influences the long-term sales of the product.

Samsung applies a range of strategies to ensure an optimal approach to

reaching consumers. Through the implementation of these strategies, Samsung's
products are widely recognized and accessible in the market. Samsung employs a
direct and indirect distribution channel for product placement approach as outlined
below.

1. Direct distribution channel

This channel of distribution allows the producer to sell the product to customers directly
with no intermediate or middle men as connector. Companies able to get in contact with
their customers personally so they able to understand the needs and the current market
of buyer’s interest.
 1.1. Samsung experience store
Samsung operates experience stores where customers can personally interact with
and assess products based on their individual needs. The type of product placement
in Samsung stores typically depends on the location. For example, if the store is
situated in a shopping mall within a residential area, it may also feature home
appliances such as robot vacuums, vacuum cleaners, and washing machines.
1.2. Online store
Company websites for e-commerce serve as a complement to the brick-and-mortar
store particularly for cross-border customer seeking access to the products. By
engaging with this concept, it will contribute to expanding Samsung’s international
market through the power of internet connection.
2. Indirect distribution channel
This distribution type needs the help of intermediaries for company to sells product
towards the customers. There are three different class of level channel which is one –
level channel, two – level channel, and three – level channel. In Samsung company only
one – level and two – level was adapted in distributing channel.
2.1 One – level channel
Only one intermediary (Producer → Retailer → Customer). Manufacturer sells the
product directly to retailer who then will sells it to customers.
2.1.1 Partnership of Samsung with other e-commerce platform
Samsung also used other online shopping site as a way for them to gain sells
and increase demand such as Shopee, Lazada and Alibaba. For example,
Shopee is the most famous e-commerce platform in Malaysia. Shopee operate
as a marketplace for business opportunities for suppliers to meet with their
customer’s demand. It will charge producer a transaction for each sale and earn
money from any advertisement run by the merchants. Customers feels much
more familiar with the app due to it contain lot of type and brands of product
from clothing to everyday needs. From there, they have built a trust between
customers to be loyal to use it to by any product including electronic devices.
2.1.2 Retailer
Samsung’s distributor also able to sells the product directly from the
manufacture to customers. KTS Cellular is the domain distributor, retail and
marketing for Samsung’s mobile electronics. There are also KTS Cellular shop
for customer to visit to get a firsthand experience with the product.
2.2 Two – level channel
Contain two middle intermediaries (Producer → Distributor → Retailer → Customer).
Manufacturer will sell the product to distributor, distributor sales it either or break the
bulk amount and distribute it to retailer then retailer will sell it to customers.
2.2.1 Approved distributor
Samsung adopts a selective distribution strategy, meaning only approved
distributors who meet their specified conditions are authorized to sell the products.
This measure is implemented to ensure that the company's quality control remains
uncompromised. Samsung main distributor is KTS Cellular. This company or
distributor will then take the product from Samsung then distribute towards retailer.
2.2.2 Retailer
Establish an authorized reseller who agree to adhere the marketing mix
established by the management, including pricing and promotion with distributor.
Samsung has tie-ups with large retail companies such as SenHeng, Harvey
Norman, Telecommunication provider.
a. SenHeng is a renowned brand in home electrical appliances, making it
unsurprising for customers to encounter Samsung products in the store. This
is because Samsung's product range extends beyond mobile gadgets to
include household appliances like washing machines, oven, air conditioner and
televisions.
b. Harvey Norman is well-known for its range of household products, including
furniture. Notably, it also encompasses electronic items such as computers,
laptops, and more, featuring brands like Samsung.
c. Telecommunication provider also provide the service to purchase any phone
under its selection of choices with term and conditions apply. For example,
Maxis provide a few plan that will give out a free phone in every 2 years of
engagement such as plan 199. Other than that, customers able to buy phone
through zerolution plan which provide variety of phone brands with 1 or 2 years
of contract of payment.
d. Small electronic kiosk in mall will provide variety of hand carry devices such
phone or tablet in small number of stocks. Normally customers will done their
survey of price on this type of kiosk before actually purchasing the item.
e. Aeon Big which a hypermarket retailer also provides a few brands of electronic
devices. Usually all of this device will be displayed on the front of shop to
capture customer’s attention on buying the item.
 3.4 PROMOTION
Samsung uses advertising as a means of drawing in customers and uses the most
effective strategies for product promotion. The business uses a variety of marketing
strategies both inside and outside of the holiday season. Business partners receive a
plethora of discounts and incentives, which motivates them to offer Samsung products
over those of their competitors. As such, there are multiple ways for Samsung to advertise
their products, for example, upkeeping their present in digital world and doing marketing
campaigns to promote their products.

Digital Presence of Samsung:

Samsung's success in digital marketing can be attributed to its skilful utilisation of

social currency. By increasing its social media presence, Samsung gives its patrons and brand
advocates more opportunities to tell others about their experiences. Samsung has social
media accounts on all of the main social networks in order to engage with the diverse
demographics that their goods are aimed at, including:

• Facebook: 162M follower

• Twitter: 12.5M follower
• YouTube: 6.24M follower
• Instagram: 4.5M follower

Additionally, Samsung has many accounts on every platform. Instagram features

Samsung, Samsung India, Samsung UK, Samsung UA, Samsung Mobile, and additional
brands. The business follows industry best practises for digital marketing, such as SEO and
producing high quality content that addresses client issues.
 Samsung’s YouTube Account

Samsung’s Facebook Account

Digital Marketing Campaigns of Samsung:

As a global brand with a focus on the community, Samsung launches a number of

marketing initiatives. Samsung's marketing strategy is a promising approach that centres on
utilising the potency of remarkable marketing campaigns to endorse its products and captivate
the target audience.

The brand was bolstered by sponsorships, social media commercials, and online
advertising. Here are a few outstanding Samsung marketing campaigns:

• #YouMake Campaigns:

o It presents a global marketing platform that empowers users to customise their devices
to their hearts' content. It offers enhanced personalization through tailored control
made possible by SmartThings IoT solutions. By leveraging the top metaverse
platforms, the #YouMake campaign encourages customer participation by providing
ongoing services and virtual benefits.
• Growing Up

o Another YouTube ad that caused viewers to reevaluate their choices. The video went
viral on the internet and directly targeted Apple, the company's biggest rival.

Other than that, the company also provide promotional discounts on to certain target
audiences or on certain seasons. The current latest promotional discounts are:

• Samsung student offer

o Samsung offering plenty discounts on certain product for students who are looking to
buy Samsung products in affordable price.

• Samsung Holiday sales and season of gifting

o This encourages consumers to choose Samsung as the perfect gift for their love one
while also getting the in considerable price range.
4.0 CONCLUSION
In conclusion, Samsung Electronics is the biggest manufacturer in the electronics
and technology industries and a global leader in these fields. Over the year, Samsung
has made several improvements in an effort to draw in more customers. Additionally,
this demonstrated how Samsung creates business plans that, when done correctly,
may lead to enormous success for a firm.

Every component in the marketing mix has an effect on the others. The marketing
mix demonstrated how the business offers each brand at the most competitive pricing
for the client. This also demonstrated the company's methods for product distribution
and promotion. Market research and in-depth knowledge are essential for the
marketing mix. In addition, each new firm that wants to succeed needs to have a strong
marketing mix in order to draw in more clients.