Report: Samsung Electronics Co Ltd Marketing Strategy Evaluation

This report provides a comprehensive analysis of Samsung Electronics Co Ltd's marketing strategy. It begins with an introduction and background of the company, followed by a situation analysis using the PESTLE model to examine the political, economic, socio-cultural, technological, legal, and environmental factors affecting the company. A SWOT analysis is then conducted to evaluate Samsung's strengths, weaknesses, opportunities, and threats. The report includes a competitive analysis, focusing on Apple and Huawei, and explores consumer buyer characteristics. It delves into segmentation, positioning, targeting, and branding strategies, including the marketing mix (product, price, promotion, place, people, process, physical evidence, and partnership). The report concludes with a summary of key brand strategies and a final conclusion on Samsung's market position.

Running head: SAMSUNG ELECTRONICS CO LTD MARKETING STRATEGY
Samsung Electronics Co Ltd Marketing Strategy
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SAMSUNG ELECTRONICS CO LTD MARKETING STRATEGY 2
Table of Contents
Introduction.................................................................................................................................................4
Samsung Electronics Co Ltd Background...................................................................................................4
The Situation Analysis................................................................................................................................5
Samsung’s PESTLE Analysis..................................................................................................................5
Political...............................................................................................................................................5
Economic.............................................................................................................................................6
Socio-Cultural.....................................................................................................................................6
Technological......................................................................................................................................7
Legal....................................................................................................................................................7
Environmental.....................................................................................................................................7
SWOT Analysis...........................................................................................................................................7
Strengths..............................................................................................................................................7
Weaknesses..........................................................................................................................................8
Opportunities.......................................................................................................................................8
Threats.................................................................................................................................................8
Competitive Analysis..................................................................................................................................8
Apple...................................................................................................................................................8
Huawei................................................................................................................................................9
Consumer Buyer Characteristics.................................................................................................................9
Segmentation, Positioning, Targeting and Branding Analysis...................................................................10

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Segmentation.....................................................................................................................................10
Positioning.........................................................................................................................................10
Targeting...........................................................................................................................................10
Summary of Key Brand Strategies.....................................................................................................10
Marketing Mix...........................................................................................................................................11
Product..............................................................................................................................................11
Price..................................................................................................................................................11
Promotion..........................................................................................................................................12
Place..................................................................................................................................................12
Extended Marketing Mix...........................................................................................................................13
People................................................................................................................................................13
Process..............................................................................................................................................13
Physical Evidence..............................................................................................................................13
Partnership........................................................................................................................................13
Conclusion.................................................................................................................................................14
References.................................................................................................................................................15

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Introduction
The report examines the marketing techniques utilized by Samsung Electronics Co Ltd in
order to stay ahead in the competitive market as one of the best innovative pioneers in
connection to the products they produce to attract and keep customers. The situation analysis
gets analysed which is followed by competitive analysis, customer buyer characteristics, the
target market, positioning, segmentation, marketing mix, extended marketing mix and at the end
of the report a conclusion is given stating the position of Samsung Electronics Co Ltd.
Samsung Electronics Co Ltd Background
The company began in South Korea as a small family-owned enterprise whose operation
was to trade grocery and merchandise which later changed to textile business, securities, and
insurance and later to specialization in electronic in 1960. This became the key business for the
organization and expansion grew seeing the company open branches in different parts of the
country. They specialized in electronics and endeavoured to fabricate their television sets. Later
in the years, they entered into the telecommunication sector specializing in products related to
hardware in 1980. They changed their strategy and reshaped the focus to three sectors to
chemicals, electronics, and engineering. As a result of the strategy shift and focus, the
organization has ventured full into the electronics sector and has expanded to various parts of the
globe commanding the huge number of customers. It is currently dealing with mobile phones and
has created different brands targeting different customer taste and preferences. In order to keep
up with the competition in the competitive market, the parent organization has set up a
manufacturing company in Texas, Austin city. In addition, the company set up Samsung
Electronics Co Ltd as a subsidiary of Samsung Corporation to deal specifically with smartphone
industry and situated it at Suwon in South Korea

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The Situation Analysis
The aspects that impact on the organization in the process of making decisions are
external factors such as politics of a country, the technology present, the economy of a nation,
laws/regulations and socio-cultural aspects. As per Mora (2013) an organization gets placed to
strategically make the strategic decision when there is cognizance of the situation in the working
environment. In view of this, a situation analysis on the business environment under which
Samsung Electronics Co Ltd operates gets analysed with use of PESTEL model.
Samsung’s PESTLE Analysis
Political
The environment in which Samsung is operating is favorable as well as encouraging
despite in some few countries like India where it experiences some turmoil (Arnett & Wittmann,
2014). The good political environment that has been availed by good democracy in many
international nations allows internationalization of Samsung Electronics Co Ltd business. This is
augmented by democracy awareness and education facilitated by cross-border movement of
people. Irrespective of these good conditions, Samsung Electronics Co Ltd has experienced
headwinds in the home country emanating due to increased tension between South Korea and
North Korea. This has compelled the company to try and cope with this political instability with
great caution of war that may erupt in the Peninsula of Korea. In addition to this, the
organization faces political instability in a number of African countries like Sudan, Kenya, and
Congo among others as well as in Latin American countries. These instabilities emanate due to
constant changes in the governance structures (Ashill & Jobber, 2014).

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Economic
The expansion of Samsung Electronics Co Ltd to the developing countries is an essential
factor as this will make the company stamp its footprints in emerging markets. However, this
aspect does not anchor well with the organization because of the global economic turmoil. This
crisis created by the tumbling global economy affects the purchasing power of the target
customers in a developed market, thus forcing the company to look for profitable ventures in
emerging markets. It is worth noting that the global market under which the company is
operating is prone to volatility and uncertainty. It has made the company to re-strategize on the
best strategies so as to keep pace at the competitive market; and hence the company has
embarked on an aggressive push to the emerging markets and adjusting to the disposable income
of the target clients with the anticipation of making up lost business in those developed markets
(Wilden & Gudergan, 2015).
Socio-Cultural
Samsung Electronics Co Ltd is owned by the family, it operates as a Korean company
irrespective of the global outlook. It implies that the company has adapted to the local conditions
and at the same time adapting the global conditions as far as socio-cultural aspect is at play.
Therefore, in the emerging markets, the organization employed the Glocal strategy. In addition,
it tailored its products to be in tandem with customer’s preferences which are dynamic with time.
The market in which Samsung Electronics Co Ltd is operating is influenced by lifestyle
preferences and in view of the fact that socio-cultural factors are not the same in every region,
the company has to re-strategize in every country accordingly (Glowik, 2017).

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Technological
The Samsung Electronics Co Ltd is in the forefront in embracing and applying
technology in the creation of its products given the changing technological needs of the
customer. In this respect, the organization gets to innovate and invent its products so as to meet
the dynamic needs of the customers driven by the mission to be ahead of technology and
innovation. However, the company’s habit of imitation of its competitor’s product is creating
legal and regulation scrutiny which is not anchoring well with the organization’s image and
business (Bhattacharjee & Dey, 2015).
Legal
In the process of being ahead of innovation and creation, the company imitated Apple’s
Inc. products iPad and iPhone. This has resulted in the many lawsuits against the company and
thus its strategies for innovation and creation has turned down customer perception. This is a
blow that is following the company even to the emerging market (Glowik, 2017).
Environmental
The increase of customers in emerging market being incognizant of ethical issues, the
organization task is to make brands that are socially and environmentally acceptable. In addition,
there is need to ensure that the working condition of its employee is not in compromise as well as
remunerating them appropriately (Bhattacharjee & Dey, 2015).
SWOT Analysis
Strengths
1. The brand value is high
2. The financial position is strong
3. Leading in the mobile industry

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4. Leadership in visual display market segment
Weaknesses
1. Rely on other firms for OS as well as software
2. Tainted image because of safety issues
3. The product portfolio is extensive
4. Unsustainable competitive advantage
Opportunities
1. R&D investment
2. Strong focus on advertisements
3. Presence in growing markets
4. Collaboration strategies
Threats
1. High competition in the industry
2. Disturbance in creation of new products
3. Lawsuits due to patent infringement
4. Competitors disruptive innovation
Competitive Analysis
Apple
In the smartphone arena, Apple is the first competitor of Samsung. Apple uses unique
value proposition instead of emphasis on the price of its products. The marketing strategy
employed is way out of the ordinary, the company relies on product placement with celebrities
and social media reviews.

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Huawei
Huawei despite being new and young in the market has grown tremendously to become
number two competitor of Samsung. Huawei employs impressive designs in order to impress its
customers. It is coupled their product’s functionality. They as well use pricing penetrative
strategy which is the same for all competitors of Samsung except Apple which uses the strategy
of skimming their prices. The company is becoming a very strong contender to Apple and
Samsung.
Consumer Buyer Characteristics
The characteristics of buyers are based on the roles they play in the society, the
occupation, lifestyle, the family among others. These factors affect customer’s motives of
purchasing. In the smartphone industry, these factors play a role in in buying based on the type
of phone, the brand and the company from which the phone was manufactured (Losada-Otálora
& Casanova, 2014). In addition, the circumstances where customers work compel them to make
a decision to buy (Jung Chang, Yan & Eckman, 2014). The Samsung’s smartphones are majorly
internet based and this feature compels customers with same attributes to buy like for instance
the purpose - used for socialization, education, transactions via online etc. Moreover,
psychological influences like for example meeting the needs based on the hierarchy of need as
espoused by mass law theory will make customers to have a perception towards getting a
smartphone (Läsiluoto, 2014). Currently, the global market and particularly in the emerging
markets have customers still in the social needs stage. In this stage, they will want to have
smartphones so as to be in a certain social class. This is a benefit to Samsung’s products (Wang
& Chou, 2014).

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Segmentation, Positioning, Targeting and Branding Analysis
Segmentation
The organization utilizes both behavioral segmentation and division based on
demographics. The behavioral aspect split populace into classifications in view of their conduct
with or acts toward a presented product. The organization's item specialization in distinct
categories encourages the getting all of the segments in view of their way of life and age sections
(Baker, 2014).
Positioning
The organization is endeavoring to offer the best items in the market with a first-class
quality. The organization is situating its product by placing creativity, trust and confidence in its
products in the market. The company is prone to use imitative strategy to position itself in a
better place as compared to its competitors. Likewise, they employ an anticipatory strategy to
position themselves in anticipated future product e.g. image sensors for mobiles that are
anticipated to pick up in the coming future (West, Ford & Ibrahim, 2015).
Targeting
The successes of Samsung are due to the technique of targeting many segments. This is
attained through the development of different brand packages of products and services. For
instance the Samsung’s smartphones of S – series and Samsung Note 3+ which come in
different features, screen resolutions, functionalities and each with different prices and thereby
meeting the need of varying clients with different financial capability.
Summary of Key Brand Strategies
In order to strive to enhance brand value, Samsung employed the following brand
strategies to reach to target market:

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Setting unique brand identity-the organization created their brands to have uniqueness as
opposed to those of competitors in the market
Brand repositioning-they placed their brands to target different market and classes of customers
Strategic pricing-they used both skimming strategy
Research and development- the company invested heavily in research and product development
Marketing Mix
Product
The trust created by the organization over its brand bestows greater benefits in the
markets as compared to those of the competitors in the market. This has been attributed to the
manner in which the products of the organization has been performing over time with no issues
and last longer, thus earning customers’ trust. The creation of smartphones like S9 galaxy is
known to come with status. In addition, the services offered to the customers are incredible. The
company has built a strong product portfolio (Bhasin, 2018).
Price
The company uses different pricing strategies in relation the different categories of
products they present. The first strategy employed is skimming strategy. The company employs
skimming strategy on new products which are the market leader in relation to the features they
present. The Samsung Note 3+ Gear is a new product that attracts many customers. The
company endeavors to get high value on these products prior to competitors coming into to dilute
the market, and when a similar product is on the market, the price is then decreased. On the other
side, the company employs a competitive strategy for other products besides the smartphones
that have no competitiveness in the market (Yeung, 2016).

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Promotion
The organization has a belief that customers get pulled together through the use of
advertising and at the same time uses sales techniques to push the product to its clients and hence
employs sales promotion. In order to augment this, the organization takes advantage of festive
times as well as other normal occasions with no festivities. They give discounts as well as offers
to the client on their selected products. The other strategy is digital marketing. The organization
uses this through use of social platforms so as to reach to tech-savvy clients. These strategies are
working well for the company and thus are commensurate with the increase in Samsung’s brands
(Wrenn & Mansfield, 2014).
Place
In ensuring that products reach to the clients, the organization employs sales and service
dealers, retail segment and distribution network. The sales and service dealers’ get to get
products from Samsung and are spread in various parts of the covered market globally, they hold
key accounts for the company and get involved in corporate sales and may set of showrooms
specifically for Samsung products. There is the use of retailers as well for the distribution of the
products. These retailers are as well spread globally in different regions in which the market
covers. Retailers keep Samsung’s product as the main product owing to its well-established
reputation so as to keep their clients. Distribution being another strategy adopted by the
company, they have set a single distributor in every city in a territory so that they get to
distribute in that territory (McDonald & Wilson, 2016).