Samsung French Door Fridge: Marketing Mix and Target Segment Analysis

This report provides a detailed marketing analysis of the Samsung French Door Refrigerator. It begins with an executive summary outlining the report's objectives, which include identifying target segments and recommending effective marketing strategies to maximize sales. The report then delves into the selection of the target segment, concluding that couples represent the most valuable market opportunity due to their openness to new technologies and long-term potential. The brand positioning strategy emphasizes the refrigerator's superior features, brand value, and durability. The product life cycle analysis places the refrigerator in the growth stage, recommending a focus on early adopters and innovators. The marketing mix strategy recommends a price skimming approach, traditional distribution channels, and omnichannel media for promotions. The report concludes that the recommended marketing mix strategies will effectively communicate the product's value proposition and achieve the desired market outcomes, emphasizing a customer-centric and ethical approach.

Running head: FUNDAMENTAL OF MARKETING
Fundamental of marketing
Name of the student
Name of the university
Author note

1FUNDAMENTAL OF MARKETING
Executive summary
The aim of this report is to discuss about the effective and suitable marketing strategies for
Samsung French door refrigerator to gain the maximum sales from the market. In doing so, the
most potential target segment for Samsung French door refrigerator are identified in this report
and it is identified that couples will have the maximum market opportunities for Samsung French
door refrigerator. In addition, it is identified in this report that major differentiating and
positioning factors for Samsung French door refrigerator are brand value, durability and more
features. These elements will help them to stay ahead in the competition and created distinctive
positioning in the market. This report also recommended the marketing mix strategy for
Samsung French door refrigerator including all the four major elements. It is recommended that
price skimming strategy should be followed in terms of pricing strategy; traditional distribution
strategy will be followed for the distribution factor and Omni Channel media for promotions. It
is expected that effective implementation of these marketing mix elements will help Samsung
French door refrigerator to communicate the stated positioning statement properly to the target
customers.

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Table of Contents
Introduction......................................................................................................................................3
Selection of the target segment........................................................................................................3
Determination of the brand positioning strategy.............................................................................4
Product life cycle analysis...............................................................................................................6
Type of consumer product...........................................................................................................6
Product.........................................................................................................................................7
Place.............................................................................................................................................7
Promotion....................................................................................................................................8
Price.............................................................................................................................................8
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................11
Appendix........................................................................................................................................13

3FUNDAMENTAL OF MARKETING
Introduction
Marketing strategy for the business entities should be effective enough in gaining the
maximum competitive advantages and thus these strategies should be designed based on the
external and internal business environment. The purpose of this report is to discuss about the
target segment for the Samsung French door refrigerator and how they can be targeted. In
addition, the suitable marketing mix strategies will also be discussed in this report. However,
there are few limitations also being faced in doing this report including the availability of the
authentic data (Schmidt, Spann and Zeithqammer 2014). It was difficult to communicate with the
exact customers of Samsung French door refrigerator. In addition, the diverse response also
created challenges in concluding a particular market trend. This report will help in creating the
strategy that will help in gaining the maximum of outcome from the market along with providing
the maximum value propositions to the target customers.
Selection of the target segment
Based on the different target segments discussed in the previous assignment, it is
recommended that couples will be the most valuable and potential target segment for Samsung
French door refrigerator. This is due to the reason that the segment attractiveness analysis done
in the previous assignment denotes that couples are having the maximum potentiality in terms of
size and growth (Gummesson, Kuusela and Narvanen 2014). Even the need for the refrigerator is
more for the families is more, but the long term opportunities are more for the couples. In
addition, it should also be noted that the new age couples are having better insights and
preferences for the latest technologies, which are being provided with the Samsung French door
refrigerator. On the other hand, families consist of different age groups including the older aged

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High price
Low price
Low features High features
Samsung
Panasonic
LG
groups. They are having least preferences for the latest technologies. In terms of the family life
cycle, families denote the saturated stage with no more opportunities left. On the other hand,
couples are in the growth stage and Samsung will gain more long term opportunities by targeting
them (Zenker and Beckmann 2013). The positioning of Samsung French door refrigerator as
smart fridge will also be more attractive for the couples over the families. In the segment
attractiveness table, it is also identified that intensity of competition will be low for Samsung in
targeting the couples due to the fact that smart fridge will be offered and a few brands are having
expertise in building smart refrigerators (Cross, Belich and Rudelius 2015).
Determination of the brand positioning strategy
As per the above positioning map, it is identified that price is one of major factors in
influencing the buying decisions of the customers irrespective of the fact that smart fridges are
targeted towards the higher end customers. On the other hand, Samsung is positioning their

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High brand value
Low brand value
Low durability High durability
Samsung
Panasonic
LG
Samsung French door refrigerator on the basis of more features such as in-built water and ice
dispenser (Akpoyomare, Adeosun and Ganiyu 2013). The above positioning map states that
Samsung is the most highly priced brand compared to their competitors but also offering the
highest number of features. Thus, the higher end young couples can be targeted as they will shell
out an extra amount for more value propositions. In this case, the point of difference for
Samsung is their feature lists, which are not being offered by their competitors.
The above positioning map denotes that Samsung is well ahead of their competitors in
terms of the brand value. This is due to the reason that only LG is having the brand exposure and
identity comparable to Samsung while Panasonic is having limited market presence. Thus, the
Samsung French door refrigerator is having the advantage of higher brand value and identity. On
the other hand, it is also identified that durability is another unique selling proposition for
Samsung French door refrigerator (Maarit Jalkala and Keränen 2014). It is offered with 10 years

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of warranty in compressor. In addition, the extensive service network is also enhancing the value
proposition of the customers. In buying the electronic appliances, customers especially the new
age couples expect that it will be durable and long lasting and well availability of service centers.
In this case, Samsung is well ahead of their competitors.
Positioning statement will be: “smart enough to keep the foods tasty and healthy”
Product life cycle analysis
As per the current trend and reports, Samsung French door refrigerator is in the growth
stage of the product life cycle. This is due to the fact that Samsung French door refrigerator is
introduced in the market a few years ago and still the market of smart fridge is growing and
constitutes a minor market share compared to the conventional fridges. In terms of the diffusion
of innovations, early adopters and innovators will be targeted. This is due to the reason that early
adopters well search for new products and will select if the value propositions are at their desired
level (Stark 2015). Thus, in the case of Samsung French door refrigerator, various features will
meet their expectations. This should also be noted that early adopters are opinion leaders and
having greater influencing power among their peers. Thus, targeting this group will ensure the
generation of positive word of mouth and larger customer segments can be tapped in the future.
Innovators are the most suitable customer segment for Samsung French door refrigerator because
they are eager to try new products and they are less influenced by the social norms (Gmelin and
Seuring 2014). Thus, the acceptability of the smart fridge will be more among them over the
conventional fridges.
Type of consumer product

7FUNDAMENTAL OF MARKETING
As per the consumer product, Samsung French door refrigerator is placed as the
shopping products. This is due to the reason that buying pattern of fridge is infrequent and
involves high cost. Moreover, in the case of Samsung French door refrigerator, price is higher.
Brand name is important for this consumer product as high cost is involved. On the basis of this
trend, Samsung is leveraging on their brand value to create unique selling proposition. Promotion
and advertisements of Samsung French door refrigerator involves mass media for lager reach in
the target segment.
Product
In terms of the product strategy, the core product level for the Samsung French door
refrigerator is the core utility of it, which is keeping the perishable foods fresh. The actual
product level includes the brand value of Samsung and textured design on the Samsung French
door refrigerator. This will enhance the aesthetic value of the product. Augmented product level
includes smart features such as auto stabilization option during electricity fluctuations and
automated temperature control based on the items stored (Floarea and Sgarciu 2016). These
features are the major differentiating factors for Samsung French door refrigerator over their
competitors. Hence, this product design will justify the positioning of Samsung French door
refrigerator on the basis of the brand value and more features.
Place
In terms of the distribution strategy, retailer and wholesaler channels will be used. Both
these channels will follow the traditional route. These distribution strategies will be beneficial for
Samsung French door refrigerator in gaining the maximum exposure in the market along with the
assistances of the experienced retailers for the customers. It is also expected that Samsung

8FUNDAMENTAL OF MARKETING
French door refrigerator should be displayed in both real and virtual form. This will enable the
potential customers to touch and feel the real product along with gaining the insights of the
features offered through the virtual medium (Chen, Fang and Wen 2013). In terms of the brand
positioning of the Samsung French door refrigerator, leveraging on more features will be utilized
by this distribution strategy.
Promotion
The promotional message will be informative over descriptive. This is due to the reason
that customers are having the basic understanding about the utility of fridge but they should be
informed about the new features in a smart fridge. The message will be about these added
features and how these features will create value propositions for the customers. In terms of the
promotional tool, both online and offline mediums will be used including social media platforms,
television commercials and billboard advertisements. Among all these mediums, social media
marketing will be used for gaining the customer insights and design the product strategy
accordingly (Manser Payne, Peltier and Barger 2017). Furthermore, television commercials and
billboards will be helpful in reaching out to the largest customer segments and gaining more
exposure. Brand positioning on the basis of features can be communicated through these
mediums.
Price
It is recommended that suitable price for Samsung French door refrigerator will be
approx $1900, which will help Samsung to deal with the competition in terms of pricing. It is
also recommended price skimming strategy should be initiated, which will involve higher price

9FUNDAMENTAL OF MARKETING
at the initial stage of introduction in the market (Spann, Fischer and Tellis 2014). This will
ensure that premium positioning of Samsung French door refrigerator can be maintained.
Samsung LG Panasonic
Price $2299 (Existing)
$1900
(Recommended)
$662 $2199
Conclusion
This report concludes that the recommended marketing mix strategies will be beneficial
for Samsung French door refrigerator for gaining the maximum market output. In terms of the
stated brand positioning, the recommended marketing mix will help to communicate the
customers about the added features of the smart fridge of Samsung. Moreover, the pricing
strategy will ensure the premium positing of the product. Following the traditional distribution
channels will help Samsung in communicating the durability to the customers in terms of
extensive assistances by the retailers. These recommended steps are both ethical and socially
responsible due to the reason that customer centric approach will be the base for recommended
strategies. Each of the elements of the marketing mix strategies will be the based on the feedback
of the customers and thus socially unethical practices can be avoided. Compliance program will
be look after by the dedicated managerial post and this post will be responsible in checking the
plan and programs with the ethical principles prior to the commercialization mainly about the
level of emission of CFC from the refrigerators. In terms of the triple bottom line reporting, the

10FUNDAMENTAL OF MARKETING
performance will be measured under Environmental Management 5 regarding environmental
liabilities.

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Reference
Akpoyomare, O.B., Adeosun, L.P.K. and Ganiyu, R.A., 2013. Approaches for generating and
evaluating product positioning strategy. International Journal of Business Administration, 4(1),
pp.46-52.
Chen, Y.C., Fang, S.C. and Wen, U.P., 2013. Pricing policies for substitutable products in a
supply chain with Internet and traditional channels. European Journal of Operational Research,
224(3), pp.542-551.
Cross, J.C., Belich, T.J. and Rudelius, W., 2015. How marketing managers use market
segmentation: An exploratory study. In Proceedings of the 1990 Academy of Marketing Science
(AMS) Annual Conference (pp. 531-536). Springer, Cham.
Floarea, A.D. and Sgârciu, V., 2016, June. Smart refrigerator: A next generation refrigerator
connected to the IoT. In 2016 8th International Conference on Electronics, Computers and
Artificial Intelligence (ECAI) (pp. 1-6). IEEE.
Gmelin, H. and Seuring, S., 2014. Achieving sustainable new product development by
integrating product life-cycle management capabilities. International Journal of Production
Economics, 154, pp.166-177.
Gummesson, E., Kuusela, H. and Närvänen, E., 2014. Reinventing marketing strategy by
recasting supplier/customer roles. Journal of Service Management, 25(2), pp.228-240.
Maarit Jalkala, A. and Keränen, J., 2014. Brand positioning strategies for industrial firms
providing customer solutions. Journal of Business & Industrial Marketing, 29(3), pp.253-264.

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Manser Payne, E., Peltier, J.W. and Barger, V.A., 2017. Omni-channel marketing, integrated
marketing communications and consumer engagement: A research agenda. Journal of Research
in Interactive Marketing, 11(2), pp.185-197.
Schmidt, K.M., Spann, M. and Zeithammer, R., 2014. Pay what you want as a marketing strategy
in monopolistic and competitive markets. Management Science, 61(6), pp.1217-1236.
Spann, M., Fischer, M. and Tellis, G.J., 2014. Skimming or penetration? Strategic dynamic
pricing for new products. Marketing Science, 34(2), pp.235-249.
Stark, J., 2015. Product lifecycle management. In Product lifecycle management (Volume 1) (pp.
1-29). Springer, Cham.
Zenker, S. and Beckmann, S.C., 2013. My place is not your place–different place brand
knowledge by different target groups. Journal of Place Management and Development, 6(1),
pp.6-17.

13FUNDAMENTAL OF MARKETING
Mix Current Recommendation Why it is better
Product Based on core
product
Based on augmented
product
Will communicate the point of
differences to the customers
Place Traditional
distribution
Traditional distribution
involving the virtual
mediums
Communicating more information
to the customers.
Promotio
n
Traditional
mediums
Omni Channel mediums More market reach and customer
centric approach
Price Premium pricing Price skimming strategy Will target larger customer
segments.
Appendix