Market Study of Samsung

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This report focuses on the market study of Samsung, a multinational company that offers consumer electronics and IT solutions. It discusses the current issues and provides objectives for the company's marketing plan.

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Running Head: MARKET STUDY OF SAMSUNG
Market study of Samsung
Name of the Student
Name of the University
Author’s Note

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1MARKET STUDY OF SAMSUNG
Executive summary
Samsung Electronics is addressed as one of the multinational company that serves a variety of
consumer electronics and IT solutions. The business firm is a leader in smartphone business
because it offers a pricing segment that suits a 14 years purchasing capability and that of the
medium to luxury segment of the consumer market. Besides, it is a major subsidiary of Samsung
Electronics Group and was inaugurated in the year of 1969. Samsung has a business operations
located within the 60 distinct regions within the world. There is about 2, 00, 000 people of
workforce. It has it’s headquarter in the region of the Suwon, within the country of South Korea.
Speaking about it’s first of the pioneer products, these commodities ranges from electronics and
electrical appliances such as that of the televisions, washing machines, and refrigerators.
However Samsung has brought more variety of products which includes telecommunication
solutions, semiconductors, dynamic random access memory, and of course, mobile phones and
computers. Some of the successful business by the company comprises of Fokker Dutch aircraft,
Rollei watchmaker, AST Research, and FUBU clothing.
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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
1.1. Based on the current situation of the company that you analysed in Assignment 1, select
and prioritise the issues that the company should address in its new 12-month term marketing
plan..............................................................................................................................................2
2.1. Clearly, state up to three objectives for the forthcoming 12 months using S.M.A.R.T goal
setting criteria. Explain how these goals link to the identified issues.........................................5
3.1. Segmentation, Target Market, and Positioning: State and justify which segment(s) you
intend to target and how will you position the product/service for the target market(s)?...........7
4.1. Appropriate Marketing Mix: Based on your knowledge to this point of the marketing mix
elements, reflect on the overall approach to the marketing mix. Outline the elements and tools
that would be best used and the links and independence between the marketing mix elements
in your plan..................................................................................................................................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................13
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3MARKET STUDY OF SAMSUNG
Introduction
This report focuses on the chosen product that is Samsung. It is one of the leading brands
in today’s technology market; it has been able to sustain its feet within the market from a time
period of about 1969–1988. Speaking about the industry, the services range from consumer
electronics, semiconductors, and home appliances.
Therefore the key issues that are being analysed are as such,
Fall in the brand name.
In the era of 2016, due to battery malfunctioning the mobile gadget was burst which created a
barrier in the mind of the consumers.
Vendor-lock-in the system.
Lack of vision within the market.
The number of consumers has reduced over a period of time.
Discussion
1.1. Based on the current situation of the company that you analysed in Assignment 1,
select and prioritise the issues that the company should address in its new 12-month term
marketing plan.
Identified issues from the situational analysis:
According to Ramiz et al., (2014), taking into consideration the present business scenario
of the Samsung brand it seems like the brand is lacking innovation within the business
undertakings. There is an immense requirement for a competitive advantage over the other rival
business firms. Moreover, taking into account the current scenario of the business firms,

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competitors like that of the apple is always making an initiative towards making use of the new
technology that the consumer market has a deep interest. This innovative technology is such that
the consumer market itself feels like this was about to be released previously. On the other hand,
the competition that stays in the market, apple make use of brand equity and loyal consumers to
penetrate successfully within the consumer market. However, the business firm Samsung
understand the concept of depreciation as that the business firm makes use of price-cutting
strategy to cope up with that of the price fall in the coming future days within the consumer
market.
There are a large number of rival firms that are making use of modern based technology.
Brands like that of the Huawei, Mi, and Lenovo are breaking the consumer market by
introducing a new set of trendy technologies. Besides brand like that of the Nokia, which was
one of the famous brands that were successful in possessing major proportion of the consumer
market in the previous era of time is now outdated because of the innovation within the product
offerings.
Figure: Mobile vendor market share in the region of Australia, March 2019
Source: (gs.statcounter.com2019)
Speaking in terms of the sales of the rival brand Apple, the brand has been successful in
46.7 million units, this set of units have been shipped just last year, selling The growth of
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iPhones is 0.5% on the other contrary. iPhone launched new trendy models such as that of the
iPhone XS and iPhone XS Max. This new set of trendy products has enabled the company to
drive shipments at the high-end smartphone markets. Whereas, iPhone 8, and iPhone X still
exists among the top selling markets (Qiu et al., 2014). This has furthermore increased the
competition among the Samsung and Apple brand.
Figure: Mobile vendor market share within the region of Australia
Source: (gs.statcounter.com2019)
Marketing objectives:
To tackle or overcome with the predicted issues, Samsung can undertake various
measures such as:
To launch a new product offering that will be totally a new concept and that very few rival
firms will exist with this new product concept.
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Participating in events and promotional activity, that takes place on an international basis, to
pull the consumers.
Apply the push and pull marketing strategy, pull like trade events. Push strategy by
stimulating the local dealers to push the product offering in various outlets.
2.1. Clearly, state up to three objectives for the forthcoming 12 months using S.M.A.R.T
goal setting criteria. Explain how these goals link to the identified issues.
Three objectives are as follows:
1- Making use of the research and development, this research and development will be carried on
for a time period of 7 months. The sole purpose of undertaking this research is to evaluate the
loopholes within the business activities of the firm. On the other hand, making use of the
research and development team to analyse the consumer market by mean of cold-calling
feedback, consumer surveys, and poll. This research will be carried on understanding which of
the consumer product offering made by Samsung firm is in demand and what are the utilities that
attract the consumer towards this particular product. The main strategy would be to make use of
this specific technology and to introduce another segment of an innovative product.
2- Hire new professional and experts of IT by seeking these bodies in different geographical
areas. Different geographical areas can be any part of the world. The primary focus will be to
find out the talented professional who has the hunger to fight within the rival market to bring out
their individual ideas and innovation in terms of designing a new product offering.
3- Forming a partnership agreement for undertaking business with that of the qualitative firm
who has the potential to understand the dynamic changes within the consumer market, and the
firm which has the potential to understand the marketing moves of the rival firm Apple.

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Specific - The research and the development
team will be hired from different
backgrounds of expertise and that are
the expert professionals in their
respective work.
- Time planning will be monitored by
the management professional; the
management team will be again sub-
divided within two individual groups.
One group will monitor the activities
as of whether the objective is carried
out as per the timeline. Another team
will make use of the data and
information provided by the first team
and then the second team will generate
the report and will provide it to the top
management body.
- To identify the rival brand within the
consumer market and to evaluate their
potential and business objectives, in
order to understand their vision. So
that joint partnership can be formed in
order to tackle future issues and to
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8MARKET STUDY OF SAMSUNG
make the firm effective.
Measurable - For measuring the research and
development outcome, the brand
should make use of the metrics and
statistical records.
- In order to measure the level of efforts
made by Samsung in hiring qualitative
body, the use of the focus group and
that of the external aid will be utilised
such as the supervision of the HR
professionals.
- In order to measure the effective
response by forming a joint
partnership with that of the other
business firm. Firstly, a joint operation
will be carried on for a time period of
about 1mnth. Then taking into
consideration the changes within the
performance the necessary changes
will be undertaken.
Achievable - The primary motive is to eliminate
any unrealistic goals.
- In order to achieve the desired
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objectives, the use of the performance
evaluation will be carried out on a
real-time basis.
- The statistical report will be generated
by making use of IT applications in
order to understand the changes that
are taking place.
Realistic - The use of renewable sources will be
undertaken to have a concern about
the environmental aspect.
- Much of the focus will be given on
positive CRM, in order to generate
goodwill for the firm.
Time - The entire objective plan will be
classified into various time. The time
will be converted into various
timeline. The timeline will be
monitored on a constant basis to track
and measure the results.

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Figure: market share percentage of Samsung in the year of 2018
Source: (Vertoanalytics, 2019)
3.1. Segmentation, Target Market, and Positioning: State and justify which segment(s) you
intend to target and how will you position the product/service for the target market(s)?
Segmentation:
One of the strategic moves by the concerning business firm would be to target the
youngster market segment as such of colleges and school. On the other hand, since the business
firm is planning to launch an innovative product that is based upon screen touch functionality,
and potential to be folded like that of the tablets. It should target the youngsters along with that
of the working group such as that of the corporate sector. Moreover, the luxury segment of the
consumer market is to be targeted, such as that of the business class people because they can
make use of the Samsung technology to proceed with their business undertakings. Hence, much
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of the gap that exists among the computer system and mobile end configuration will be
eliminated in terms of gaming performance.
Moreover, taking into consideration the present consumer market scenario it seems like
the consumer market is more prone and attracted towards making use of mobile devices for
gaming performance. On the other hand, speaking about the youth and the working group of the
society they can make use of the Samsung technology in order to carry out their day to day
activities as such because carrying on utility works along with that of the day to day business
activities within the application of mobile devices provides ease of convenience.
Targeting:
Taking into consideration the above case study, Samsung realises that as the time is
passing at a very fast pace such that the purchasing power in today’s generation remains in the
hand of 14 years old. It is a competitive advantage for the brand Samsung for which they make
efforts by introducing a product category that will be suitable for the customers which begins
from 14 almost to 55 years, or maybe even older. This is the marketing strategy that the brand
Samsung makes use of. This is in fact, another one of the important reason as of why they have a
diversified product segment that covers the entire area. This wide category of the age group is an
important target market (Dissanayake et al., 2015).
Moreover, the teenager's group such as that of the children’s can be attracted too as
Samsung gadgets are equipped with Android-based OS that facilitates high end gaming
performance. On the other hand, if we consider the whole society, then the senior citizen group
can be attracted to some extent as they have family concern for which they want to make use of
the digital technology in order to communicate with that of their close ones
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Positioning:
It makes use of the demographic aspect in order to classify the entire consumer market.
Demographic aspects as such as that of the age group, social status, and class. This segment act
as an element to classify the entire consumer market (Glowik et al., 2016). Samsung divides the
entire market upon the basis of demographic, geographic, psychographic and behavioural.
Custom made handsets with minor alterations are made for the specific region. Speaking in terms
of the worldwide positioning of the product, Samsung aims the sell to take place within the 61
countries.
Besides, the brand Samsung has been a major consumer product for the market like that
of India, China, and that of the North-Korea. Besides Samsung makes use of the promotional
strategy based upon the movie which attracts the consumer market, it helps in inducing the
consumer market. They make use of the movie promotional strategy that is based upon the
choice and taste preference of the consumers.

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Figure: Apple and Samsung dominate the smartphone market
Source: (Statista, 2019)
4.1. Appropriate Marketing Mix: Based on your knowledge to this point of the marketing
mix elements, reflect on the overall approach to the marketing mix. Outline the elements
and tools that would be best used and the links and independence between the marketing
mix elements in your plan.
The marketing mix elements are as follows:
Product- Speaking in term of consumer product. The brand Samsung provides a commodity that
is innovative within the consumer market. Moreover, they thrive on introducing an innovative
consumer product within the market. Samsung undertakes a lot of investment in research and
development initiative in order to understand the dynamic changes that exist within the business
environment. Moreover, speaking in terms of the product offering of the concerning brand
Samsung, they are:
Information Technology - Printer and Multifunction, Monitor.
Memory/Storage- SSD, Portable SSD, Memory cards, USB Flash drives.
Samsung Home Appliances- Refrigerators, Washing Machines, Cooking appliances, Air
conditioners, Vacuum cleaners.
TV/AV – Samsung Television, Audio and Video, Accessories.
Mobile devices- Smartphones like Samsung Galaxy series, Tablets, Wearable’s, Other Phones,
and Accessories.
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Moreover, the brand is about to launch a new product offering which is totally new
within the consumer market. The new product offering will be innovative such that a dual screen
with the foldable feature is being launched. This foldable phone has the capacity to be used as a
tablet and when combined the two different screen can be used as a normal smartphone. This is a
totally new concept within the consumer market that Samsung has been planning to launch.
Besides, speaking in terms of the commodity features, much of the features are being updated
such as the camera features, battery capacity, sensors, processors and much more. This product
offering is not being provided by any other rival firms, except some of the rival brands.
Moreover, speaking in terms of design, it is portable such that it can be kept within the pocket
and that too can be used as a normal tablet with a bigger screen to carry on the desired task.
Figure: Samsung Galaxy Fold
Source: (Samsung.com, 2019)
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Place- The new Samsung galaxy Fold will be served in a very few regions of the country. This
selected country have been chosen depending upon the consumer feedback and that of the
purchasing power that stays in the hand of the consumers. The new product offering will be
within the luxury segment. This is to capture the major proportion of the market share. It will be
launched within the 15 chosen countries, United Kingdom, Germany, France, Italy, Spain,
Sweden, Norway, Finland, Denmark, Belgium, Netherlands, Poland, Austria, Switzerland, and
Romania. This leaves most of the Eastern European countries out of the loop, which
unfortunately happens all too often. However, the brand is planning to launch the product in
Asian countries such as India too. The place has been decided depending upon the consumer
ability to consume the particular product.
On the other hand, the concerning brand has been carrying on analysis as of which of the
areas has been the major aspect for the generation of revenue for the brand. Depending upon this
criteria the brand has selected the above mentioned place. Furthermore, they wanted to place
their product offering within the luxury segment after which at some point of time there will be a
reduction of the price because of the entry of the number of the new firms that will be providing
the same commodity offering but at a lower price.
Moreover, speaking about the distribution strategy the firm makes use of about 53
international bases in the name of Samsung, and the multinational company makes use of the
following distribution channels.
Sales and service dealers- This sales channel comprises of corporate sales professional.

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Modern retail outlets that are owned by the company- These modern retail shops are highly
attractive to induce the interest of the consumer market; they maintain the availability of highly
attractive stores, as well as, employees addressed as Galaxy Consultants. In the year of 2015,
there were Galaxy Consultants located at about 158 stores under Samsung’s direct management
located within the region of the in Korea.
Distributors- Samsung keeps hold of territory, country, and that of the regional distributors.
Based upon the territory, size, and experience of distributors, Samsung is eligible to permit the
distributorship copyrights.
Online sales- Samsung even make use of the online presence such that the potential consumers
can choose, and order Samsung products by means of the official website of the company.
Price- The pricing strategy of the concerning brand Samsung depends upon the varying factors
like that of the demographic factors and much more. The pricing strategy is different because the
brand Samsung believes that they provide a commodity to various consumers of the society.
They make an offer to a consumer market such as that the age of 14years is also possible to
consume a particular product or commodity. Unlike the rival bran like that of Apple, Samsung
provides price taking into consideration the consumer market.
However, the brand Apple makes a pricing strategy based upon the social status and to
maintain the luxury reputation of the concerning brand. Samsung makes use of the product line
pricing to distinguish its consumer products into cost categories to create various quality levels in
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the minds of consumers. For example, as of in September 2017, on the Samsung UK website, the
smartphone Galaxy 8 costs GBP 689, while Galaxy S8+ costs GBP 779 (Wu et al., 2018).
Price Skimming- Besides, the above mentioned Samsung make use of the price
skimming strategy. This can be better illustrated by understanding the marketing strategy that
Samsung makes use of such that whenever the new product is launched within the consumer
market with that of different variants of storage capacity. It makes the price at a higher segment
such that the consumer market predicts the device to be of the luxury segment. Whenever the
rival firms introduced the same product offering within the consumer market the product offering
by Samsung is made at a lower price to reduce the fall of the market share of the concerning
brand Samsung.
Competitive Pricing- Although being a desirable consumer brand and that of the famous
brand with the consumer market, the brand has failed to achieve a major proportion of the market
share within the other segment s of the product offering such as that of the electronic segment
and that of the household segment of the commodity market. Samsung is a loyal brand, but
within the home-appliances product offering, I has not able to beat the brand LG yet. In order to
overcome this issue it is essential for Samsung to make use of the competitive pricing strategy.
The new product offering is planned to be priced at a price of €2,000 RRP, breaking the
2,000 price limit just about a year after we got used to phones costing more than 1,000 units of
money. However, there is special focus given on the consumer market of the US as such the US
price of $1,980 doesn't include taxes, so it breaks that limit for most of the buyers among the
consumer market.
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Promotion- Samsung makes use of the trendy movie topics or any other such platform in order
to attract the interest of the consumer market. One of the important factor to be taken into
account is that the concerning Brand has never made use of the specific slogan or the company
does not have any fix slogan. Instead, the brand operates on a smart strategy by identifying its
slogan for each consumer product differently. The promotional activity of the brand depends
upon the present consumer market scenario and that of the nature of the consumer product. The
brand makes use of a direct marketing strategy. Besides, the brand also makes use of the below
marketing techniques; they are as follows:
• Providing discounts for a specified time.
• Sponsor events that represent the international stage.
• Participate in national and global festivals (Hu et al., 2018).

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Figure: leading mobile device vendors in the United Kingdom (UK) from 2010 to 2018
Source: ("Mobile device vendors: market share 2010-2018 | UK", 2019)
The promotional strategy of the concerning brand for the new innovative product is to
launch the new product offering within the consumer market with a very less number of units.
This less number of unit’s availability is made to pull the consumer interest and to generate
demand within the consumer market. Upon the demand analysis among the consumer market,
the number of more units will be launched to penetrate more within the rival market. On the
other hand, various sessions are being organised to make the consumer aware of the features and
the set of utility that will be gained by making use of the new product offering.
Conclusion
Speaking in terms of the tactical and strategically move there a joint venture can be
formed by the two business firm in a different name or a modified name that will be obtained by
merging the two different names. On the other hand, there can franchise located in different parts
of the region in order to understand the consumer taste and preferences of different regions and
different segment of the society.
Moreover, by making use of the survey and consumer feedback, the brands can
understand their position within the consumer market. Besides, there is an immense need for the
utilisation of online platform like that of the social network platform in order to understand the
different perspectives of the consumer market.
In order to penetrate the different regions of the market, there is a need to make the social
status of the brand Samsung high in the eye of the consumer market.
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