Samsung's Competitive Strategies for Capturing Market Share

1/1/2017
Done By: She Poh Tin, Magdalene Chiang Nga Mun, Jane Tan Zhen Jie
Rayna Chew Poh Geok, Jason Ong Bing Qi, Adriel Ang Beng San|
MARKETING SAMSUNG TOMORROW

Table of Contents
1. Company Background................................................................................................1
1.1 Samsung.....................................................................................................................1
1.2 Apple Inc....................................................................................................................1
1.3 Xiao Mi.......................................................................................................................2
2. Samsung Target Segment...........................................................................................4
2.1 Geographic Segmentation..........................................................................................4
2.2 Demographic Segmentation.......................................................................................4
2.3 Psychographic Segmentation......................................................................................5
2.4 Behavioral Segmentation............................................................................................5
3. Value proposition and positioning..............................................................................6
3.1 Product Specification..................................................................................................6
3.2 Perceptual Map...........................................................................................................9
3.3 Product Life Cycle....................................................................................................10
4. Pricing Strategy........................................................................................................12
4.1 Skimming Pricing – Samsung..................................................................................12
4.2 Prestige Pricing – Apple Inc.....................................................................................12
4.3 Penetration Pricing – Xiao Mi..................................................................................12
5. Promotion.................................................................................................................14
6. Place.........................................................................................................................15
7. Recommendation......................................................................................................18
8. Conclusion................................................................................................................19
Reference............................................................................................................................20
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1. Background of the Company
1.1 Samsung
Samsung is a multinational corporation of South Korea which is headquartered in town of
Samsung Seoul.
Samsung was started by Byung- Chull in 1938 and the main focus of his business was
mainly the trade export of products like Korean fishes, vegetable and fruit to Beijing. Slowly,
they expanded their business to include flour mills and confectionery machines. (Samsung, 2008)
During the 80s, they shifted their core business into technology and started to expand and
diversified significantly. Different entities were created to focus on different markets. Samsung
Aerospace industries was launched to develop aerospace capabilities. Samsung Data systems was
established in 1985 to focus on information technology services like system integration, system
management, consulting and networking services. (Samsung, 2008)
Today, they are considered as a conglomerate where they have diverse business spanning in
different industries like Petrochemical, medicine, finance, hotel and many more. Their flagship
business of Samsung Electronics lead the global market in high tech electronic manufacturing
and digital media. (Forbes, 2016)
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1.2 Apple Inc.
Apple Inc is a multinational company which create computer, consumer gadgets, server
and computer software. This company was created by Steve Jobs and Steve Wozinak on April
1 ,1976
In the early stage, Apple’s strength was in their personal computers, such as Apple II,
Macintosh and Power Mac line. They also faced setbacks during the 1990s because of the rocky
sales and low market share. In 1998, Steve Job introduced iMac which was a new product based
on the new corporate philosophy of having a recognizable products and simple design.
(Rawlinson, 2016)
Apple managed to establish itself as the leader in the consumer electronics and media sales
industries because of the success they have achieved with IPOD music player and also ITunes
store which sells content.
Apple’s worldwide annual revenue in 2012 was $156 billion and is now considered as the largest
publicly traded corporation in the world by market capitalization. (Rawlinson, 2016)
1.3 Xiao Mi
Xiaomi was co-found by 8 partners on 2010 and their first smart phone was released in
August 2011. It is a private held company and is the world’s 4th largest smart phone maker. Xiao
Mi has different types of product which includes smart phone, mobile apps, laptops and related
consumer electronics. (Xiaomi, 2016)
They gained a lot of market share in mainland China and was able to create more new consumer
electronics like the smart home devices. (Ahmad, 2014)
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Xiao Mi is the world’s 4th valuable technology start-up because of the US1.1billion funding
from investors which pushes the valuation to more than US$46billion. They had also started to
enter the Indian market in July 2014(Xiaomi, 2016)
Target Segment of Samsung
2.1 Geographic Segmentation
Products of Samsung can be found through 61 different nations in the world. They can be
found in 3 different regions, Northern, eastern and southern areas. Different market has a slight
variation; this will allow the product to be more user-friendly. Their products can be purchased
by the end-user through E-commerce platform such as their own websites. (Samsung, 2008).
2.2 Demographic Segmentation
Samsung demographic segmentation is based on several variation: Age range, Gender,
level of income, occupation and education.
 Age Range: Samsung targets on the consumers who are 13 years old and above.
 Gender: Samsung does not segment the market by gender, their product target on both
segments.
 Income Level: Samsung develops products for consumers of low-income level to those that
have high income level.
 Occupation: Samsung target consumers with various occupation, from students to CEO of
MNC companies.
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 Education: Samsung products were meant to target both educated and uneducated
consumers
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