Market Environment Analysis for Samsung Refrigerators in Australia

This report provides a market environment analysis for Samsung refrigerators in Australia. It includes brand summary, micro and macro level factors, persona of ideal target market, customer decision making model analysis, and conclusion. The document type is a report and the type of assignment is not mentioned.

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FUNDAMENTALS OF MARKETING
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Table of Contents
Introduction......................................................................................................................................2
Brand summary................................................................................................................................2
Micro Level factor...........................................................................................................................3
Macro level factor............................................................................................................................3
Persona of ideal target market.........................................................................................................5
Customer decision making model analysis......................................................................................6
Need recognition..........................................................................................................................6
Search for information.................................................................................................................6
Evaluation of the alternatives......................................................................................................7
Purchase decision.........................................................................................................................7
Post purchase decision.................................................................................................................7
Conclusion.......................................................................................................................................8
Reference.........................................................................................................................................9

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Introduction
Samsung is considered to be the one of the leading electronic goods brand across the
globe and currently ranked among top 10 global brand. This country entered into the Australian
market in 2000. From the report of Samsung. au (2019) in the year 2018 there are more than 300
employees working in Samsung electronics including the subsidiaries. Mr Harry Lee is the
current president and CEO of the Australian branch of Samsung Electronics. This report is going
to discuss about the market environment for Samsung in Australia and the emphasis is entirely
focused on the product refrigerators. Therefore, both the market analysis and the customer
persona are developed through this report and provide a clear perception about the brand and
product.
Brand summary
Samsung Electronics, is a global leader in the innovation in home appliances. Introduced
the smart refrigerators in the Australian market was considered to be one of the important part
that Samsung has done in order to maximise the customers. The company believes that
refrigerators is at the centre position of an organisation therefore Samsung also intends to make
the refrigerators better looking and smart enough with the current market trends. The Samsung
Hub Refrigerators is a sophisticated and multi-tasker home appliance that reconnects families,
organises groceries and also provides entertainment. The digital twist characteristics of the
Samsung Hub refrigerators is comprised of a 21.5 inch full HD LCD resolution screen placed in
the upper right exterior door (Samsung. au 2018). Moreover, the users and the family members
can post, share and update calendars through the refrigerator, pin photos, arts for the babies and

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leave notes. From the report of Abs.gov.au (2019) it can be derived that the Samsung Hub
refrigerator is the next gen appliance that can connect the family members and make a smart and
multi-tasking technology that is user friendly and beneficial for people. In fact, the high quality
cameras insider the refrigerator capture images every time the door shuts. It helps the people to
take a peek inside the refrigerator through smartphones.
Micro Level factor
As far as the micro level factors of Samsung Electronics Australia, it can be argued that
the company uses both the pricing and the promotions are of paramount importance for the
company because Samsung wants to make a good and amicable relationship with its customers.
The success of Samsung in the Australian market is also responsible for this two factors
primarily. In the pricing strategy, Samsung primarily uses competitive pricing strategy.
Hinterhuber and Liozu (2017) advocated that the competitive pricing strategy provides the
company an advantage in the competitive market like Australia. Companies like LG is a
potential rival for Samsung to expand its market. In this regard, the competitive pricing strategy
is considered to be an effective measure for Samsung. Apart from that Samsung is using digital
and online promotional tools that are able to maximise its customers. From the research of
Hallberg (2017) it can be found that the online advertisements are effective penetrate into the
market and ease out the business practice for a corporate enterprise. In case of Samsung the same
practice is followed.

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Macro level factor
The economic and demographic factors are considered to be the most important aspect
that can create a transparent picture of the scope for Samsung to do refrigerator business in
Australia. Based on the report of Energyrating.gov.au (2017) it can be stated that in the year of
2014 over 1 million refrigerator and freezers were sold in Australia with a refrigerator stock of
12.5 million. The number is still emerging as the economic boom that Australia witnesses in
recent years. Most of the leading household companies are trying to maximise their customer
base with using cutting –edge technologies. Therefore the market is extensively competitive in
Australia. Moreover, the revenue of household appliances is calculated as US$ 1,502 million
with a user volume of 4.4 million (statista.com 2019). For the home appliances companies it will
be an effective measure to penetrate the Australian market due to its escalating rate of users’
percentage. From the figure it can be seen that from the financial year of 2017 to the middle of
the 2019 the increase in the users’ volume is 1.2 million which is promising (Abs.gov.au 2019).
As a matter of fact, regions like New South Wales and Queensland are the most lucrative sites to
maximise customers effectively. The population growth is also developing at a pace of 1.62%
each year and by the end of the 2019 the Australian population will reach to the figure of 25,415
million. It means the number of buyers will also increase subsequently.

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Name: Brendy
Age: female, 40-50
Behavioral patterns: focused on the household activities
more. Is judgmental in selecting of household items. Well
aware about the current market trends.
Motivation: low cost, high efficiency, utility and
influencers.
Objectives: to have the refrigerator with highest amount of
utility and low maintenance cost.
Buying behavior
Frequent buyer
More involvement in the
buying process
Loves to have more options to
choose from
Accepts new trends
Goals
To have a product with the most utilities
and alternate usages
To meet the collective need of the family
To have low cost of maintenance
Personality
Extrovert
Sensitive
Judgmental
Assumptive
Persona of ideal target market

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Customer decision making model analysis
According to the customers to the customer decision making model, there are majorly
five steps that denotes each of the stages that the customers went through in deciding their
purchase preferences. The following section will discuss about each of these steps and the
strategy of Samsung refrigerators in encouraging their need recognition.
Need recognition
In the case of buying refrigerator, the major need recognition can get emerged due to the
internal causes. For example, the existing refrigerator of the customer got to be replaced or the
customer is the first time user of refrigerator. In triggering these needs, Samsung is having
different approaches for the two segments. In terms of catering to the existing users, they are
promoting their new refrigerator models as superior to the older ones in terms of features.
Moreover, the pull factors are being leveraged by Samsung in motivating the customers in
replacing their existing refrigerators by the new and superior one. On the other hand, in the case
of first time buyer also, pulls factors are being used. The promotion is designed in the way that
the new customers will be aware about the benefits to be received from refrigerators. Thus, the
positioning of the Samsung refrigerators as the utilitarian product over the leisurely and premium
product is helping in triggering the need recognition of the customers.
Search for information
After recognizing the need, customers start to search for information about what should
be bought and which will carry the most value proposition. Internal and external sources are
being used for information. Samsung focus more on increasing their market penetration that

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ensures the availability of more people as users of Samsung refrigerators. Thus, the probability
of getting positive feedback will get increased.
Evaluation of the alternatives
The next step is the evaluation of alternatives, which states about the analyzing the
available options prior to the purchasing. In the case of Samsung refrigerators, there number of
substitute products available in the market. Thus, customers are having the option of choosing
from the same features in similar price level. In this case, the key strategy of Samsung is to
position their refrigerator as more superior compared to their competitors. The major
differentiating factors are the color, design, space and electric consumption rate. The buzz of
superiority of the Samsung refrigerator over their competing products is created. Moreover, the
differentiated features are majorly communicated and promoted in order to create the
distinctiveness.
Purchase decision
In this step, the customer makes the purchase based on the evaluation of the alternatives.
The most viable option is selected or purchased. In this case, Samsung refrigerators are widely
available across the country with extensive distribution. Moreover, the price is also kept
competitive in order to cater to maximum number of customers.
Post purchase decision
Samsung maintains huge number of service centers and dedicated customer service
helpline in order to have the positive customer experience and positive post purchase feedback.

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Conclusion
Based on the above discussion, it can be argued that the current market trend and the
behaviour of the customers are considered to be one of the pertinent aspect on which Samsung
has to keep its focus. Therefore, it can be concluded that focusing on the current market trends
and emphasis on the consumer behaviour can provide strategic and competitive advantage for
Samsung in the Australian refrigerator market profoundly.

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Reference
Abs.gov.au 2019. Household Estimates. [online] Abs.gov.au. Available at:
https://www.abs.gov.au/AUSSTATS/abs@.nsf/DSSbyCollectionid/B50B5318F1C401C2CA257
0F10015EF07?opendocument [Accessed 16 Jul. 2019].
Energyrating.gov.au 2017. Consultation Regulation Impact Statement. [online]
Energyrating.gov.au. Available at:
http://www.energyrating.gov.au/sites/new.energyrating/files/documents/Consultation-RIS-
Household-Refrigerators-Freezers.pdf [Accessed 16 Jul. 2019].
Hallberg, N.L., 2017. The micro-foundations of pricing strategy in industrial markets: A case
study in the European packaging industry. Journal of Business Research, 76, pp.179-188.
Hinterhuber, A. and Liozu, S.M., 2017. Is innovation in pricing your next source of competitive
advantage? 1. In Innovation in Pricing (pp. 11-27). Routledge.
Samsung au 2019. Endless innovations Refrigerators. [online] Samsung au. Available at:
https://www.samsung.com/au/refrigerators/ [Accessed 16 Jul. 2019].
statista.com 2019. Household Appliances - Australia | Statista Market Forecast. [online] Statista.
Available at: https://www.statista.com/outlook/256/107/household-appliances/australia#market-
globalRevenue [Accessed 16 Jul. 2019].