Failure of Samsung Galaxy Note 7

Running head: NEW PRODUCT AND SERVICE DEVELOPMENT
NEW PRODUCT AND SERVICE DEVELOPMENT
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Author Note

NEW PRODUCT AND SERVICE DEVELOPMENT1
Introduction
The primary focus of this topic will be to discuss about the failure of the product of
Samsung smartphones, namely Samsung Galaxy Note 7. The details of the failure story will
be discussed, along with the target market and need for the product. The situation analysis
will be there, where the issues of the failure of the product will be discussed, along with the
competition prevailed in the market, the capabilities of the company and the marketing mix
of that particular product. Metrics of success will be laid as well as the marketing
implications for the organization of Samsung for future purposes.
Target market
The Samsung Galaxy Note 7 was a successor to the product, Galaxy Note 5. But it
was numbered as 7 and not 6 in order to remove the misconception of the consumers that it
may be an inferior product to the flagship Samsung Galaxy S7. It introduced to the market on
2nd August 2016 and was released officially on 19th August 2016. It was the first phone
developed by Samsung which had an USB-C Connector and the last one in the series of
Galaxy Note having a home button on it. This product was an evolution of its predecessor-
products that inhibited the hardware components and improvised techniques. It included re-
establishment of the expandable memory storage capacity along with IP68 water resistance
facility. The Samsung Galaxy Note 7 contained some special features too, such as, a high
dynamic range color support, curved-display on both sides, an improvised bundled stylus or
pen, latest software features and an iris recognition technology. The demand for this product
was quite high as the ore-order record broke in South Korea. This also led to a delayed
release in several international markets because of shortage in supplies. It received critic
reviews that were positive and praised the construction quality, support from HDR and a
huge customer interface though it was priced high and had similar features with the phones of

NEW PRODUCT AND SERVICE DEVELOPMENT2
the Galaxy series. After the launch of the product, the Note3 and Note4 users were awestruck
by the rich-looking design with curved edges and vibrant display. The software aspects were
also admired which could be upgraded to Android Nougat. The battery back-up was
considered quite efficient and long-lasting. The customers ranging from 26-50 years old were
the chief target for this product as this group of tech-savvy customers have the capability to
buy any latest product that Samsung launches.
Situation analysis
The following reasons were accounted for the failure and permanent discontinuation of
the Samsung Galaxy Note7 phone after 10th October 2016:
 Faults in the battery – Over-heating was a major issue for the batteries of these
products which even led to explode or combust. The weak disconnection between the
positive and negative tabs of the battery resulted in short circuits and thermal
runaways. A few batteries entirely lacked insulation tape. And due to these defects in
the battery, the device was considered as a hazardous product was also forbidden to
carry it on buses and airplanes.
 Poor design – It was seen that the curved edges of the device was causing small but
frequent matters on the screen while the stylus was being used. In addition to this, the
organization was criticized for using glass material on the rear panel instead of using
metal.
 Cheap S-pen – The stylus pen was panned too. It looked cheap like a hollow tube of
plastic that gave a feeling of disposable pens rather than a metal stylus of a smart
phone.