Group No.

( 3 ) in 2HH
Final exam : Samsung Marketing Plan
 Case Participants:
 Fady Magdy Kameel 21227536
 Fady Victor Adly 21227038
GroupNo. ( 3 ) in 2HH
Ahmed Talat 21226146
Final exam : Financial
 Ahmed Sebaq
analysis
21227078
 Ahmed Fathy 21227071
 Mahmoud Adel 21225731
 Ethar Nasr 21120919
 Haidy Salem 21225873
 Mohamed Ali Saad 21227420

Presented To : Dr. Nermin Adel

Final Exam Samsung
Contributions :

Executive Summary
1) Mission Statement: Ahmed Sebak
2) Situation Analysis: Ethar Nasr
3) Target Market: Ahmed Fathy
4) Buyer Personas: Ahmed Talaat
5) Marketing Objectives and Performance: Fady Victor
6) Pricing Strategy: Mohamed Ali
7) Distribution Strategy: Mahmoud Adel
8) Promotion Strategy: Haidy Salem
9) Budgeting: Fady Magdy
Executive Summary:
MISSION: ADDING A NEW STAR PRODUCT TO OUR PRODUCT LINE.
SITUATION ANALYSIS: CONSIDERING THE STRENGTH AND WEAKNESSES STUDIED
BELOW, SAMSUNG WILL USE ITS VAST TECHNOLOGICAL AND MARKET
KNOWLEDGE TO CREATE A NEW PHONE.
SAMSUNG'S TARGET AUDIENCE ARE PEOPLE FROM AGE 15 TO 45 WHO FOLLOW
THE LATEST TECHNOLOGY TRENDS. USING STP in BREAKING DOWN A GIVEN
POPULATION GROUP INTO SEGMENTS BY VIRTUE OF SPECIFIED TRAITS.
SAMSUNG HAVE MULTIPLE BUYER PERSONAS, WITH EACH ONE DESCRIBING IN
DETAIL WHAT DRIVES THEM TO BUY THEIR PRODUCT OR SERVICE. FOR EXAMPLE,
THE PERSON’S AGE, LOCATION, JOB TITLE, GOALS, AND CHALLENGES THEY FACE.
Executive Summary:
SMART OBJECTIVE AND PERFORMANCE: THE LAUNCH OF THE NEW PRODUCT
REQUIRES SEVERAL SMART OBJECTIVES (SPECIFIC, MEASURABLE, ACHIEVABLE,
RELEVANT, AND TIME-BOUND) TO BE SET AND ACHIEVED.
THE SAMSUNG’S PRICING STRATEGY UNDERTAKES TWO COMPONENTS WITH THE
FIRST BEING THE SKIMMING PRICE AND THE SECOND THE COMPETITIVE PRICING.
DISTRIBUTION: USING A SELECTIVE DISTRIBUTION AND PUSH AND PULL
STRATEGY.
PROMOTION MIX: SAMSUNG WILL USE ITS SOCIAL MEDIA PRESENCE AND DIGITAL
MARKET EXPERTISE AND COMPETENCY TO REACH TO ITS TARGET MARKET.
BUDGETING: WE EXPECT THE REVENUE FROM MOBILE SALES TO INCREASE BY
ATTRACTING YOUNGER ADULTS THAT USUALLY PREFER THE COMPETITORS AND
INCREASE SAMSUNG’S MARKET SHARE DUE TO THE LAUNCH OF THIS PRODUCT.
 Introduction

Samsung is a South Korean company that is one of the world’s largest producers of electronic
devices. Samsung specializes in the production of a wide variety of consumer and
industry electronics, including appliances, digital media devices, semiconductors, memory chips,
and integrated systems.
It has become one of the most-recognizable names in technology and produces about a fifth of South
Korea’s total exports.
Samsung was founded as a grocery trading store on March 1, 1938, by Lee Byung-Chull. He started
his business in Taegu, Korea, trading noodles and other goods produced in and around the city and
exporting them to China and its provinces. (The company name, Samsung, came from the Korean for
“three stars.”)
In the late 1950s the company acquired three of Korea’s largest commercial banks as well as an
insurance company and firms that made cement and fertilizer.
 Samsung Mission Statement

Samsung Electronics constantly reinvents the future.

We explore the unknown to discover technologies to
help people all over the world lead happier, healthier
lives.

We create a culture of infinite possibilities. The deep

trust and loyalty of our customers drives us to
continually grow and lead innovation.

All researchers and developers are working to

discover the next life-changing technologies to create
new values and make a better world.
 Samsung Mission & approach

1. Supporting people to be their best

On the basis of human resources & technologies
 Make the extension of human resource development and technical superiority
with management principles
 Increase the synergy effect of the whole management system through human
resources and technologies
2. Our internal goals
Create the best products and services
 Create the products and services that give customers the best satisfaction
 Retain the 1st position in the world in the same line of business
3. Beyond Samsung
And contribute to society
 Contribute for common interests and a rich life
 Perform the mission statement by a member of the community
 The values that define Samsung's spirit

 People : Quite simply, a company is its people. At Samsung,

we’re dedicated to giving our people a
wealth of opportunities to reach their full potential
 Excellence : Everything we do at Samsung is driven by
excellence and commitment to develop the best products and
services on the market
 Change : As we have done since our foundation, we set our
sights on the future, anticipating market
needs and demands so we can steer our company toward long-
term success.
 Integrity : Operating in an ethical way is the foundation of our
business. Everything we do is guided by a moral compass that
ensures fairness, respect for all stakeholders and complete
transparency.
 Co-prosperity : Samsung is committed to become a socially
and environmentally responsible corporate citizen in all of its
communities worldwide.
 Five Samsung business principles

In an expression of its commitment to corporate social responsibility

as a world leading company, Samsung Electronics announced the
“Five Samsung Business Principles” in 2005.
1. We comply with laws and ethical standards.
2. We maintain a clean organizational culture.
3. We respect customers, shareholders and employees.
4. We care for the environment, safety and health.
5. We are a socially responsible corporate citizen.
New Product Launch

 In this case study, Samsung Aims to Launch a new mobile phone

shopping product targeted to College students and younger adults.
 Samsung creates its products for people with different purchasing power.
Why New product?

 Requirement for growth.

 Introducing a new product at the right time helping in maintaining profits.
 Increased selectivity.
Samsung’s Product Innovation Team: How
Ideas Becomes Streamlined

Stage 1. Understand: The first step towards innovation is to understand what trends are
exploding in the world.
Stage 2. Ideate: thinkers and designers generate and discuss ideas by analysing the data
collected from field research
Stage 3. Concept Development: they take this wealth of information and build and refine it
into one defining concept.
Step 4. Concept Finalization: At the final stage, Product Innovation Team works with the
business units to finalize product concepts based on market and consumer requirements.
 Situation Analysis
SWOT analysis is used to identify key strengths, weaknesses, opportunities, and threats
of Samsung.

 Strengths:
1. Dominates the Smartphone Market 3. Brand recognition and reputation

Samsung has dominated the smartphone market for years. According to 2021 The Samsung brand is one of the most valuable and recognizable in the world.
reports , Samsung has maintained the No. 1 spot globally with a 19% market The company’s brand recognition has been mainly fueled by its success in the
share in smartphone sales, whereas Apple is in the second spot with 16.7% smartphone, mobile phone and TV set industries.
market share and Xiaomi in the third spot with a 13.2 % market share.

2. Research and Development
Usually, the more a business invests in R&D, the more innovations it creates.
Samsung operates 34 R&D centers across the world. The company has spent
US$14.857 billion on R&D in 2017, which was the 2nd largest amount spent
in the world. R&D spending strongly correlates with a company’s revenue
growth and expansion into the new product markets.
4. Diversified Portfolio
Consumer Electronics :The division sells home electric appliances such as TV,
washing machines, air conditioner, monitors, and refrigerators.
Information technology & Mobile communications : such as smartphones,
network systems, and computers.
 Samsung’s
Weakness
1. Heavily dependent on the American Markets
It is estimated that both Apple and Samsung combined sold at least
74% of smartphones in the USA market. While Samsung has
diversified its resources and expanded its operations in Asia, it is still
heavily dependent on the American markets. 3. Dependence on Low-end Smartphones:

A large portion of Samsung revenues come from low-end smartphone

sales than the high-end smartphone segment, which played a role in
2. Product Failures: Any product that dissatisfy consumers erodes Samsung’s decline from 80 million smartphone sales and 22.1% of
confidence and trust in the company. Samsung has delivered several market share in 2020 to 69 million smartphones sold in 2021 with
faulty products to the market from the exploding Samsung Galaxy 20.2% of market share.
A20e to a faulty foldable phone.
 Samsung’s Opportunities

1. Diversification
3. 5G Technology
It is critical that Samsung avoids the mistake of
Samsung has the capacity and know-how to
being limited to just one marketplace.
exploit this opportunity. Samsung is one of the
top companies in the UK’s list of potential 5G
providers.

2. Introduce Innovative Products

The smartphone sector is highly dynamic, with
the latest trends going out of style in an instant. 4. HR Management
Samsung can attain immense growth by setting
The company can utilize its brand image and hire
the trend with great and innovative
highly qualified and skilled employees to improve
products like the foldable phone.
employee performance and productivity.
 Samsung’s Threats

1. Increased Competition 3. Legal and Regulatory Threats

Competition from opponents especially from those within the With the world becoming more globalized and digitally oriented,
consumer electronics, smartphone products, and computing governmental authorities have begun issuing their guidelines which
industries has reached a record high. are increasing legal and regulatory threats to companies around the
Whether it’s Apple , or Huawei , all the technological competitors globe.
are outmaneuvering and outperforming each other to become the Samsung is no exception to these rules. Laws differ from market to
best technology company. This only increases the pressure on market, and these strict regulations cause a hindrance in operations.
Samsung. Failure to comply could even result in a complete shutdown in the
respective market which may be fatal for Samsung.

2. Global pandemic, economic crisis and fluctuating currencies can 4. The market is very dynamic and failed products can prove to be a
affect the supply chain & business operations of Samsung big issue for the company
 PESTLE Analysis of Samsung

 Political: Samsung has faced political pressures in African and Latin American countries. Any country where the political
environment is unstable and prone to volatile changes in the current government structure is prone to lead to business disruption
and loss of business. Good trade relations between two countries is another key factor that has a direct impact on business.
Recently, Samsung faced major drawbacks in its home country South Korea because of the country’s strained relations with
North Korea. Currently the company operates in more than 80 countries and fear of terrorism poses another major challenge to
the smooth functioning of the business.
 Economic: After the global economic crisis faced during the pandemic, the purchasing power of consumers has drastically
fallen. High volatility in the stock markets and constant fluctuations in exchange rates can have serious implications on the
financial health of the business.
 Socio- Cultural: When dealing in the global market, Samsung needs to keep advancing its launches and products to meet the
requirements and preferences of the other country’s customers. Given the fact that every country’s socio-cultural factors are
quite different from one another, the brand needs to strategize unique ways to match the fast-changing lifestyle preferences of
different nationalities. Rapidly changing consumer preferences can have both positive and negative implications for the business
where it can affect one business positively and the other one negatively.
 PESTLE Analysis of Samsung

 Technological: Samsung has to keep a close eye on the development and enhancement of user experience with increasing
speed and access. This can completely transform the customer user experience in the Investment Services industry.
Ensuring a smooth customer experience where data and voice transfers occur seamlessly without any delays. Besides, the
company invests heavily into the field of research and development.
 Legal: Samsung needs to play safely in the global industry to prevent unwelcomed losses and legal troubles for the
business. Samsung has faced heavy penalties for imitating Apple’s iPads and iPhones. Data protection laws – Over the
last decade data protection has emerged as critical part of not only privacy issues but also intellectual property rights.
 Environmental: With the rising concerns for sustainability, Customers prefer brands that source their products in a
sustainable manner and continuously focus on reducing their carbon footprint. Samsung has focused on reducing its
energy consumption. The company has setup energy management systems at all workstations and has successfully
monitored energy costs and indicators. Apart from that the brand has framed and enforced a management policy related to
chemical substances. The company has established targets to significantly reduce greenhouse emissions throughout the
life cycle of its products.
Segmentation, Targeting, And
Positioning

Introduction of STP
Samsung is a question of sacrificing one for the other.
Investing in producing smartphones for the high-end
market would lead to sacrificing their already
established position as a leader in the low-end market.
Nevertheless, Samsung has struck a delicate balance
between maintaining relevance in both markets, albeit
more so in the lower rather than high-end market.
Market Segmentation

 Samsung segmentation is one of the key elements of

the marketing strategy of this electronics company.
Segmentation involves breaking down a given
population group into segments by virtue of
specified traits.
 The Samsung market segmentation consists of four
segmentation types: Geographic, Demographic,
Behavioral, and Psychographic segmentation. Each
form of segmentation is further divided based on
certain criteria
Market Segmentation

 Geographic segmentation divides the market into different geographical units such as nations,
regions, cities, or even neighborhoods.
the Samsung Guru mobile phone brand is a segment primarily for mobile phone users in rural areas. At
the same time, the Samsung Galaxy Segment is more in tune with urban dwellings. Samsung has a
global target audience with the sale of smartphones and tablets in all parts of the world. In India, which
has a very large population and potentially offers a huge market for users of mobile devices, Samsung is
a leader in the provision of affordable mobile phones that satisfy the particular demands of Indian
consumers.
 Demographic segmentation divides the market into groups based on variables such as age, gender,
family size, family life cycle, income, occupation, education, religion, race, generation, and
nationality.
he segmentation criteria for the Demographic type of Samsung segmentation is made up of the Age,
Gender, Lifestyle, and Occupation of Samsung mobile phone users. Samsung offers mobile devices that
meet virtually all age groups, including teenagers, young adults, and the middle-aged. Their mobile
devices are designed for male and female users as well.
Market Segmentation

 Psychographic segmentation divides buyers into different groups based on social class, lifestyle,
or personality characteristics.
the Samsung Guru, Samsung has made a great brand for low-income earners looking for an
affordable but highly functional cell phone. The Samsung Galaxy series is a great smartphone
option for the self-employed, executives, senior managers, and upwardly mobile professionals.
Samsung is also in partnership with other leaders in the IT and communication industry with the aim
of developing impactful enterprise solutions for corporate use.
 Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or
responses to a product.
Samsung mobile devices offer trendy functions and useful features that are in demand amongst all
social classes, including the middle and upper class. Samsung smartphones fit all lifestyle choices;
whether you are resigned, a reformer, an explorer, an aspirer, a succeeder, or a mainstreamer, a
Samsung mobile device brand meets your lifestyle needs.
 Targeting of Samsung

Targeting follows right after market segmentation, and most times Samsung chooses its target audience
from the identified segments based on feasibility studies suggesting the potential for the chosen target
customers to consume a comparably higher number of Samsung products and services than other segments
 Impressionable, trendy, fashionable teenagers and socially active teenagers.
 Mobile executives and professionals.
 Big corporations.
 Regular mobile phone users are looking for a cost-effective but functional handset.
 Secondary schools and higher institutions.
 Government organizations, including public utility and safety agencies.
 It is interesting to note that the targeting activities of Samsung is not just aimed at acquiring new
customers but also geared towards retaining the patronage of existing customers in the long run.
 Positioning of Samsung

• Multi-segment positioning :Samsung is able to target multiple segments at once.

They do this by providing different products and services that will meet the needs
of each target group. These needs do include not only the available features and
functions of the products but also the pricing. Samsung is able to provide mobile
devices that appeal to the budget constraints of target audiences
• Imitative positioning: stance where the company adapts its products to mimic
those products of other successful brands. For example, Samsung products like the
Galaxy series offer features that are similar to Apple iPhone. The design appears
similar to the iPhone. You also have functions that are more or less the same.
Samsung even adopts a similar marketing strategy as Apple rather than coming up
with a completely different approach to marketing its products
• Anticipatory positioning : strategy of Samsung is one where they initially develop
low turnover products. However, Samsung with Anticipatory positioning, expects
that their low turnover products will eventually become high turnover products in
the foreseeable future.
 Table - Samsung Segmentation, Targeting and Positioning Illustrated
SAMSUNG SEGMENTATION SAMSUNG SEGMENTATION CRITERIA SAMSUNG TARGET CONSUMER SEGMENT (IT & MOBILE
TYPES COMMUNICATIONS)

GEOGRAPHIC REGIONAL ABOUT 80 DIFFERENT COUNTRIES AROUND THE WORLD

POPULATION DENSITY RURAL & URBAN COVERAGE
DEMOGRAPHIC AGE GROUP BETWEEN 18 & 65 YEARS
GENDER MALE & FEMALE
LIFECYCLE STAGE SINGLES, MARRIED WITH OR WITHOUT KIDS, FULL NEST I, II &
III, EMPTY NEST I & II, SOLITARY SURVIVOR I & II

OCCUPATION STUDENTS, SELF-EMPLOYED, EMPLOYEES, EXECUTIVES, SENIOR

MANAGERS & PROFESSIONALS

BEHAVIORAL LEVEL OF LOYALTY VERY LOYAL, MODERATELY LOYAL & CONSUMERS WILLING TO
SWITCH PRODUCTS

REASONS FOR USING SAMSUNG FAD, TREND, OVERALL FEATURES & FUNCTIONALITY, OVERALL
PRODUCTS USABILITY & CONSUMERS WANTING TO FEEL LIKE THEY ARE A
PART OF SOMETHING BIG

PERSONALITY TRAITS AMBITUOUS, GO-GETTERS, DETERMINED & TRENDY

CONSUMER STATUS POTENTIAL USERS, FIRST-TIME USERS, REGULAR USERS, EX-
USERS & NON-USERS

PSYCHOGRAPHIC SOCIETAL CLASS WORKING CLASS, MIDDLE & UPPER CLASS

LIFESTYLE ASPIRER, EXPLORER, MAINSTREAMER, SUCCEEDER & RESIGNED
New Phone Target Market

 Considering the strength and weaknesses studied above, Samsung will use its vast
technological and market knowledge to create a phone that is suitable for the young adults
and college students who target practicality, unique stylish designs, average pricing and
high performance seekers.
 Samsung's target audience are people from age 15 to 45 who follow the latest technology
trends. Their lifestyles are driven by heavy consumption of TV and digital media, and
they are especially engaged in local TV series, as well as celebrities and their aspirational
lifestyles.
 Buyer Personas

Most businesses have multiple buyer personas, with each one

describing in detail what drives them to buy their product or
service. For example, the person’s age, location, job title, goals, and
challenges they face. Buyer personas are key to ongoing marketing
success. They also describe your customers’ buying behaviours. This
includes what drives them to purchase your product or service and
what their decision-making and purchasing processes actually look
like.
Methodology

1. Defining target respondents: Low Income –women- housewives or working (>25

years)/Low Income- men -working (>25 years)/ High income- men- working (>30
years)/working/ housewives (>30years).
2. Data collection: Current phone owned by them/Major features that they look for while
purchasing a phone. Etc
3. Analysing the data collected.
4. Insights
5. RECOMMENDATIONS
Buyer Personas helps

 Improve target marketing by aligning your product or service to the right audience.
 Provide granular detail around how your prospective buyer thinks and gathers
information. How do they make their buying decision?
 Convert your value proposition into a high-impact message, Being able to demonstrate to
the buyer your understanding of their needs, builds their confidence and, ultimately leads
to their conviction to select you as their provider of service.
Marketing Objectives and Performance

 Market Place
 Digital Presence of Samsung
 Digital Marketing Campaigns of Samsung
 Samsung’s Marketing Mix
 Samsung Marketing Strategy Performance
 Chosen Marketing Mix for the New Product
 Market Place

Samsung began its journey as a low-tier manufacturing brand. A strong Samsung

marketing strategy revolutionized its stance in the market, making it the No.1
Smartphone Producer Worldwide.

A perfect blend of digital marketing and innovation has established Samsung as a

unique, high-quality brand worthy of customer loyalty.
Digital Presence of Samsung

 Samsung's adept use of social currency has contributed to its success in digital marketing; Expanding its
social media presence, Samsung provides customers and brand loyalists several chances to share their
experiences with those in their circle
 To connect with the various segments of the population their products target, Samsung has social profiles
on all of the major social networks, including
 Facebook: 162M
 Twitter: 12.5M
 YouTube: 6.24M
 Instagram: 4.5M
 The company adheres to the best digital marketing practices like SEO and quality content creation.
 Digital Marketing Campaigns of Samsung

 The promising Samsung marketing strategy focuses on leveraging the power of exceptional
marketing campaigns to promote its products and appeal to the audience.
 Social media ads, sponsorships, and online advertising strengthened the brand. Some exceptional
Samsung marketing campaigns are as follows:
 #YouMake Campaigns: It brings up a global marketing platform for consumers to take the lead
with device customization. It brings a better way of personalization via customized control
enabled by SmartThings IoT solutions. The #YouMake campaign offers continuous services and
virtual benefits, encouraging customer participation by utilizing the best metaverse platforms.
 Growing Up: Another commercial on YouTube that made people reconsider their options. The
company directly targeted its main competitor–Apple, and the video took the internet by storm.
 Samsung’s Marketing Mix

Product, Price, Place, and Promotion–the 4Ps of the marketing mix constitute an integrated marketing model. Samsung’s marketing
mix plan gives insights into the company’s success secret.

1. Product Mix
Delivering excellent results in recent years, Samsung products are well-known for their services and quick support. Samsung’s
marketing mix in its product line is one of its major strong points. The products fall into the following categories:
 Mobile phones
 Televisions – LEDs, Plasma TV, LCDs, SMART TV, HDTV
 Cameras
 Tablets
 Home Appliances (Refrigerators, Air Conditioners, Washing Machines)
 IT – Printers, laptops, and accessories
Samsung’s Marketing Mix

2. Price Mix
Price mix is one of the strongest points in the Samsung marketing strategy. It offers two
pricing schemes to satisfy its clients. The corporation adopts a price skimming tactic
whenever it releases a new smartphone with the latest technology. Moreover, it reduces the
price of that product when the competitors launch identical products.
Samsung’s Marketing Mix

3. Promotion Mix
Samsung attracts customers via advertising while employing the best tactics to push products
through sales promotions.
The company employs several marketing vehicles both during the festive season and outside
of it. It grants numerous discounts and incentives to business partners, encouraging them to
sell Samsung products above the competition.
4. Place Mix
Samsung service dealers are responsible for corporate sales. Its selling point is its distribution.
They distribute their goods via a single distribution business. They then distribute them to
other locations.
Samsung’s Marketing Strategy
Performance

 Samsung’s revamped marketing programs and competitive strategy implementation have significantly
contributed to its huge success over the years.
 Performing continuous market research, adding new features, serving customer pain points and employing
special efforts to reduce costs, Samsung has paved the way for its success from the very beginning.
 Its global value increased by more than 200% in a short span ranging from 2003 to 2008.
 Samsung took over Sony–one of the most valuable consumer-electronics brands worldwide. Consequently,
Samsung’s sales reached $119 billion by 2009. When the company introduced Samsung Galaxy and leveraged
the power of digital platforms for promotions and marketing, its revenue grew to $218 billion in 2018.
 Today, Samsung stands 5th on Interbrand’s list of Best Global Brands with a brand value of USD 74.6 billion. It
has witnessed a 20% increase in comparison to the last year.
 Samsung is the most profitable tech company. The robust Samsung marketing strategy has made it one of the
most valuable brands today.
SMART Objective

 The launch of the new product requires several SMART objectives (Specific, Measurable, Achievable,
Relevant, and Time-Bound) to be set and achieved, example of such objectives are as follows:
 Reach product recognition of 30% of the target audience within 3 months after launch
 Reach Sale of 4 million units within 6 months after product launch.
 Introduce major software update within 1 year after launch.
Chosen Marketing Mix for the New Product

 Product Mix:
 Samsung will include some of its most advanced innovations in the new phone such as the S-pen, a foldable screen, a
good selfie camera and colorful designs to appeal to its target market.
 Price Mix:
 Samsung will introduce the phone with average-high average pricing to emphasis the quality of the product while
still being affordable to its target segment.
 Promotion Mix:
 Samsung will use its social media presence and digital market expertise and competency to reach to its target market.
 Place Mix:
 Samsung will sell the product in outlets at collages and universities, malls, social and sports clubs in addition to
online shops to reach its target audience.
 New Product Adoption& Diffusion

Adopter categories:

•Innovators.
•Early adaptors.
•Early majority.
•Late majority.
•Laggards.
Product Life Cycle

 •Introduction
 •Growth
 •Maturity
 •Decline
Pricing Strategy

 Pricing is one of the trickiest issues in marketing as it requires understanding the product
and understanding the market. Samsung is faced with highly rivalry by others in the
market like Apple, HTC, and Microsoft among others. To curb this competition and in
order to be competitive, Samsung undertakes a pricing strategy which is winning.
Samsung has not been so popularly in the past but have undertaken strategy in marketing
to increase its popularity in the Smartphone market. At the end of 2016, it led the
smartphone market with a share of 21.2% compared to 22.3% in 2015. Samsung still
leads the smartphone market in 2017 with shipments of 79.8 million units in 2Q17, a rise
of 1.4% YoY compared to 78.6 million units in 2Q16.
Pricing Strategy

 As a result of its strategies, Samsung has been able to

acquire a position as a major competitor for Apple
Inc. Further in regards to brand, it is the seventh most
valuable brand currently and the largest tech business
with regards to revenue.
Competitive Edge by Samsung: Best Price Offers

 Samsung seeks a competitive pricing strategy in ensuring a competitive edge. In order to

acquire a competitive edge for a company it requires to have a marketing strategy that is
optimal and unique, Samsung followed and developed a marketing strategy which enables
it to become an industry leader in the technology sector. It’s strategy has been argued to
be the most effective marketing strategy ever undertaken by a company. The Samsung’s
pricing strategy undertakes two components with the first being the skimming price and
the second the competitive pricing.
Skimming Price

 Skimming pricing is used when a product, which is new in the market or just launched, is sold at a relatively high price
because of its uniqueness, benefits to customers or its current Wow factor. However, slowly but surely when the product
gets older in the market, then the price is dropped and the product is brought at competitive pricing. Skimming allows the
firm to adjust and update its prices with increased competition resulting to a decreased price in order to attract more
consumers. In the event that other smart phones are introduced to the market, the company needs to lower their prices such
that those consumers who want to buy a Smartphone are attracted to purchase their products.

 Smartphones of Samsung are leading the market with Apple’s iPhone. As Apple, Samsung also uses skimming price to
gain the upper hand over their competitors. For instance, in October Samsung Galaxy C9 Pro, the company's first
smartphone with 6GB RAM, has received price cut in India it is now retailing at for Rs. 29,900. Back in June, the model
had received its first price cut which brought the price down to Rs. 31,900 from launch price of Rs. 36,900. Samsung will
follow its price revision strategy to remain competitive in market.
Competitive Pricing

 Competitive pricing is setting the price of a product or service based on what the competition is charging.
Recently launch Samsung 8+ is the best example of it, giving competition to iPhone X at a relatively
cheaper price. Prior to that GalaxyS6 and Galaxy S6 Edge prices were also competitive to iPhone and
iPhone 6+.
Competitive Pricing

 Thus, Samsung provided better features and played cost competition to make its market. Pricing is very
crucial for a firm as it ensures that the company communicates to the consumers the value which they
attach to the product. This is particular in the cases where consumers use the price set to judge and make
a decision on the value of a particular product. As such, pricing is a critical marketing element as it
communicates the market and product value of the product being introduced in the firm.
Relevance of Pricing

 Pricing is very crucial for Samsung as it ensures that the company communicates to the consumers the
value which they attach to the product. This is particular in the cases where consumers use the price set
to judge and make a decision on the value of a particular product. Introducing a new product is critical
as it ensures that the company’s products are well represented in the market.
 However, before introducing a new brand or product in the market, it is important for Samsung to
undertake market research in order to ensure that the product being introduced in the market meets the
needs of the consumers. This should be done by understanding the competitors, consumer behavior,
pricing and other factors affecting the purchasing behavior of the customers.
Samsung Distribution
Channel design decisions

 Our product is a shopping good and we use a selective distribution strategy

 So we can control partially quality of service and price
Push and pull strategy

 Furthermore they can be engaging in push ( we will make additional 2% discount for
amounts over 100 k)
 and pull strategies to target consumers (discount 5% for direct consumer in the 1 st
month ) .
Typical marketing channels for Samsung

 More over distribution channels come in 3 different forms;

1. manufactures sell directly to consumers
2. manufactures sell to retailers then retailers to consumers
3. manufacture sell to wholesaler who sell to retailers who then sell to consumers
Samsung innovative approach to NEW CHANNEL ACTIVITY

 Samsung Electronics America is looking to expand its market presence, by making it easier for
solution providers to source product and support through its new “Samsung Team
of Empowered Partners” (STEP) program
 STEP is the cornerstone of a global effort by Samsung to consolidate resources and simplify
accessibility for partners( easy reach and control for all geographic segmentation )
  Samsung smartphone is focused on the promotional strategies so that there could
be the effectiveness in the market, the company is promoting the brand through
implementing effective strategies. Samsung smartphones are focused on the
promotional strategy through the marketing strategy, however, the company on the
launch of the new product focuses on giving the print brochures, posters and the
specification sheets to the customers so that people could know about the new
product. Thus, the products are also displayed on the Samsung’s website there is
also the information of the specific product, the retail outlets also participate in the
Promotional events, example, there is the Royal Windsor horse show and the other shows or
games that include the Samsung open tennis tournament.
Strategy  Moreover, Samsung smartphone also advertises in the newspapers and other
electronic media, the Samsung smartphones also using other marketing approaches
so that the customer attention could be grasping, thus, the employees are concerned
in order to know about the customer reactions about the phone and its latest digital
technology. Beside these promotional activities, the Samsung smartphones use the
incentive program, charity programs and the promotional gifts for effective sales in
future. Customer appreciation, after sales strategies are also focused on the
company so that there could be the complete analysis of the customers’ behavior
regarding new phone
Promotional Strategy

Samsung uses social networking sites such as Facebook, Twitter, Youtube etc. to maintain their online
presence regularly. Through these social media marketing strategies, Samsung builds and maintain a
relationship with the customers. They also declare announcements of their new products in the social
networking sites. These types of initiatives are included in pull advertising strategy.
Samsung used to follow another way of advertising their mobile phones by focusing their attention on
gathering audiences. Samsung started the advertisement by telling basic information about Samsung phones to
the customers. This technic informs the customers about the brand name of the phones by zooming into
Samsung phones so that the customers are able to see the brand name printed on the phones.
 Budgeting Strategy

 Financial position and performance Classification

Increase/
In 2021, revenue increased year-on-year by KRW 42.7978 Classification 2021 2020 Change
decrease
trillion (18.1%) to an all-time annual high of KRW
Revenue 279,604,799 236,806,988 42,797,811 18%
279.6048 trillion. Cost of sales 166,411,342 144,488,296 21,923,046 15%
Gross Profit amount 113,193,457 92,318,692 20,874,765 23%
In 2021, Cost of sales increased year-on-year by KRW Gross Profit % 40% 39% 1%
21.9230 trillion (15%) Selling and administrative expenses 61,559,601 56,324,816 5,234,785 9%
Operating profit 51,633,856 35,993,876 15,639,980 43%
Operating profit % 18% 15% 3%
In 2021, Cost of Operation increased year-on-year by Other expenses 11,726,406 9,586,044 2,140,362 22%
KRW 5.2347 trillion (9%) Net Profit 39,907,450 26,407,832 13,499,618 51%
Net Profit 14% 11% 3%
In 2021, Net Profit increased year-on-year by KRW
13.4996 trillion (3%)
 Budgeting Strategy
Revenue analysis
 Budgeting Strategy

 Sales division - Affecting revenue increased

CE Division
The CE Division’s revenue in 2021 increased by KRW 7.6591 trillion (15.9%) from the previous year to KRW
55.8324 trillion. Operating profit grew by KRW 0.0842 trillion (2.4%)

In the CE Division, sales of premium products are leading sustained growth, including those for Neo QLED
TVs featuring premium technology as well as for products tailored to experience-oriented lifestyles, such as
our Lifestyle TVs, Bespoke products, and new home appliance products. In the Visual Display Business,
 Budgeting Strategy

 Sales division- Affecting revenue increased

IM Division (Smartphone industry)

The IM division’s revenue in 2021 was KRW 109.2514 trillion, an increase of KRW 9.6639 trillion (9.7%) compared
to the previous year, while operating profit increased by KRW 2.1749 trillion (19.0%)
In the premium segment, following the launch of the Galaxy Z Flip and Galaxy Z Fold 2 in 2020, we released
Galaxy Z Flip 3 and Z Fold 3 in 2021 to deliver experiences tailored to the various lifestyles of our users

Moreover, Galaxy Ecosystem allowed customers to experience expanded connectivity between various products
and services and take advantage of collaborations with global partners, leading growth in the tablet, PC, and
wearables businesses to exceed market and thus highlight strength in this segment in 2021
 Budgeting Strategy

Expenses by nature for the years ended December 31, 2021 and 2020 consist of the following:
Increase/
Expense Classification 2021 2020 Change
decrease
Changes in finished goods, work in process, and other -4,517,560 -3,234,887 -1,282,673 40%
Raw materials used, merchandise purchased, and other 95,625,437 81,792,130 13,833,307 17%
Wages and salaries 28,207,782 25,054,684 3,153,098 13%
Post-employment benefit 1,360,344 1,290,179 70,165 5%
Depreciation 31,285,209 27,115,735 4,169,474 15%
Amortization 2,962,152 3,219,881 -257,729 -8%
Welfare 5,073,002 4,655,347 417,655 9%
Utilities 4,928,929 4,717,553 211,376 4%
Outsourcing 5,594,602 5,409,889 184,713 3%
Advertising 5,376,015 4,269,043 1,106,972 26%
Sales promotion expenses 6,286,159 5,861,954 424,205 7%
Other 45,788,872 40,661,604 5,127,268 13%
Total (In millions of Korean won) 227,970,943 200,813,112 27,157,831 14%
 Budgeting Strategy

 OPERATION MANAGEMENT INFLUENCE IN SAMSUNG COST MANGEMENT :

• Low cost structure of Samsung and high responsiveness to economic events has made Samsung more
competitive. For example, initially Samsung focused more on volume and domination on market rather
than increasing profitability.

• Main reason for leading low cost electronics is their negotiation with suppliers as low shipping and
distribution cost .

• Samsung gain its competitive priority into cost effective and their quality measurement by Six Sigma and
giving the best management by training of employees in their own institute. Samsung is being innovative by
doing lots of R&D for betterment of their products

• Samsung produced most of its components by itself for their main products
Summary

 The above illustrates the company profile of Samsung and its marketing plans in addition to the
marketing plan of the launch of the new phone targeted to university students and young adults.
 We believe that the marketing mix including the promotion strategy, the product features, the pricing
and distribution channels will appeal to the target audience
 We expect the revenue from mobile sales to increase by attracting younger adults that usually prefer the
competitors and increase Samsung’s market share due to the launch of this product.