Detailed Report: Samsung Product and Service Development and Marketing

This report provides a comprehensive analysis of Samsung's product and service development, focusing on the product lifecycle, marketing strategies, and the introduction of the Samsung Galaxy S20. It begins with an overview of Samsung's diverse product portfolio, including smartphones, wearables, and home appliances. The report then assesses the product lifecycle stages of Samsung's products, detailing the development, introduction, growth, maturity, and decline phases. Furthermore, the report proposes a marketing strategy for the Galaxy S20, utilizing the 7Ps marketing mix (Product, Price, Place, Promotion, People, Process, and Physical appearance) to maximize market opportunity. A competitive analysis using Porter's Five Forces is also included to assess the industry landscape. The report also explains the new product development (NPD) process for new and improved product development.

Product and
Services
Development

Contents
INTRODUCTION...........................................................................................................................1
Portfolio of SAMSUNG..................................................................................................................1
LO 2.................................................................................................................................................2
Assess the life cycle stage of the Products.............................................................................2
LO3 Design and pitch a new/renovated product or service.............................................................5
Market opportunity for the proposed product or a service.....................................................5
Using models such as 7Ps, Proposed marketing strategy.......................................................5
Synopsis of the competition and industry by using framework such as Porter’s 5 forces
analysis...................................................................................................................................6
Financial overview.................................................................................................................8
LO1................................................................................................................................................10
Explanation of each phase of NPD process for new and improved product development. .10
LO4................................................................................................................................................13
CONCLUSON...............................................................................................................................15
REFERNECES..............................................................................................................................16

INTRODUCTION
The main motive of every business entity is to deliver high quality of products and services
to the customers so that they can easily grab attention of the customers effectively. In order to
satisfy the customers in more effective manner every business is required make alterations in
their existing offerings. Here, these businesses do believe in developing their core products as
well as services according to the customers with the motive of offering them high quality
services to them effectively (Piontek and Müller, 2018). The present report is based on
Samsung; a well known brand South Korea which is offering its services worldwide effectively.
The respective company belongs to Conglomerate sector. It was incorporated in the year 1938
and headquartered in Samsung Town, Seoul. Samsung own remarkable global presence as it has
vaster product and service portfolio. Here, it can be said that product portfolio of Apparel,
automotive, chemicals, consumer electronics, electronic components, medical equipment,
semiconductors, solid state drives, DRAM, ships, telecommunications equipment, home
appliances etc. Whereas, its service portfolio includes Advertising, construction, entertainment,
financial services, hospitality, information and communications technology, medical and health
care services, retail, shipbuilding and many others.
The present report includes detailed description on the product portfolio of Samsung, life
cycle stages of the product. Later recommendation is provided to the same. Also, the product
provides information on Market opportunity for the proposed product or a service. It also
includes 7Ps for developing effective marketing strategy. Later on, for developing understanding
on the competition within the same industry, Porter’s five force analysis will going to be used. At
last, NPD process would explain for the product development effectively.
Portfolio of SAMSUNG
Product Examples
“Smartphones” “Galaxy Smartphones – Galaxy Fold, Galaxy
Note, Galaxy S” etc.
“Tablets” “Galaxy Tab S, Galaxy Tab A, Galaxy Tab
Active” etc.
“Wearables” “Galaxy Watch, Galaxy Fit, Galaxy Buds,
AKG Headphones, Audio, Accessories”.
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“Mobile Accessories” “Galaxy Note10 SPen, Galaxy Note10+Soft
Touch Cover, Led Cover, Clear View Cover,
Protective cover, Leather Cover” etc.
“Audio and Videos” “Soundbars, Wireless audio”.
“Memory Storage” “Portable SSD, Memory cards”.
“Washing Machines and Dryers” “Washing machines Quick Drive, AddWash
Washing machines, Eco bubble machines,
Popular washing machines”.
“Tumble-driers, Heat pump Tumble Dryer”,
etc.
“Cooking Appliances” “Single Oven, Compact oven, Hob, Hood”.
“Home Appliances” “Refrigerators, Laundry, Cooking Appliances,
Microwaves, Dishwashers, Vacuum Cleaners”
etc.
“Monitors” “Curved, Flat, Curved gaming, Curved UHD,
Curved with bezel”.
“Refrigerators” “Fridge Freezer, Smart Fridge Freezer, French
Style Fridge Freezer, American Style, Classic
Fridge Freezer, One door Fridges and
Freezers”.
“TV’s” “QLED 8K, Ultra HD, Full HD and HD TV’s”.
LO 2
Assess the life cycle stage of the Products
Product life cycle
The product life cycle is an essential tool and method for marketers, administration and
designers alike. The life cycle of a product is related with marketing and management decisions
within businesses and all products go through five basic phases, development, introduction,
growth, maturity and decline (Chang, 2018). This concept assists inform business determination
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devising from pricing and promotion to expansion or cost cutting. The description of this
analysis of this tool in reference to Samsung is as below:
Product development- It is first step, under which the management of organisation
develop product by determining and identify needs and demands of consumers so that product
can be produced as per their requirements (What Is the Product Life Cycle?. 2020). In Samsung,
during the time of manufacturing of Samsung Galaxy 20, the management of respective firm can
determine target audiences needs so that the product can be produced as per their demand which
is able to satisfy their desires. For this, the venture can conduct research and development and
marketing analysis. Along with this, the firm can also conduct investigation in reference to its
other products like Samsung Galaxy S10, Samsung Galaxy S9 and Samsung Galaxy S8. This
will also assist in offering information about need of target people regarding these products of
respective firm.
Introduction- Within this phase, the product which has been developed in first phase is
introduced in it. The commodity is being released in to the market place. In Samsung, under this
phase, the management can release Samsung Galaxy 20 in market by using effective and
marketing and promotional channels by creating awareness about it so that people and target
audiences are familiar with it and ready to buy it. For this, they can use effective marketing
channels like social media tools, TV, news paper, web advertisement and many more. Social
media is an effective tool as now these days people are highly prefer it. In addition to it, the
respective venture can also utilise effective marketing and promotional channels like social
media, TV and many more in order to create awareness and introduce population about its other
commodities such as Samsung Galaxy S10, Samsung Galaxy S9 and Samsung Galaxy S8.
Growth- In this step, customers are already taking to the commodity and progressively
more purchasing it. The product impression is confirmed and is becoming more famous and sales
are maximising. In Samsung, after introduction of commodity, with in this phase, customers can
accept Samsung Galaxy 20 cause of its effective features. This help in increasing sales, profit
margins as well as customer base. When consumer prefers this product then market share and
revenue of venture increase. For creative goods there is inadequate rivalry at this step so pricing
can stay at a high extent.
Maturity- It is another phase of product life cycle and within this stage sales will level
off. Under it, competition enlarges so product features may require to be developed to maintain
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market share. When unit sales are at their highest at this phase, prices tend to decline to remain
competitive. In Samsung, with in this phase, the sales of Samsung Galaxy 20 can tend to slow or
even stop as now product in maturity phase (McGinnv and et. al., 2020). Because there are high
competition in market and pricing at this phase can tend to get rival, singling margin shrinking as
costs begin falling cause of the weight of outside pressures such as rivalry and lack in demand. In
addition to this, the sales of Samsung Galaxy S10, Samsung Galaxy S9 and Samsung Galaxy S8
products will also affect in unfavourable manner. Because there are number of products are
substitute products are accessible in market at low cost so people will not showing their interest
regarding them.
Decline- It is the final and last stage of product life cycle and within it, the sales of
product drop significantly and consumer behaviour changes due to less demand of product. The
product of business firm loses more and more market share and rivalry tends to cause sales to
depreciate (Bustinza and et. al., 2019). In context of Samsung, under this phase, the sales of
Samsung Galaxy 20 drop or stop because there are number of product which has similar features
and changes are also occurred in consumers’ needs. Causes of which profitability and
productivity as well as market share of business venture also decline and decrease. Marketing in
respective stage is often minimal or targeted at already loyal consumers and prices are
minimised. This declining phase of product life cycle also affect the sales and profits of other
products of Samsung like Samsung Galaxy S10, Samsung Galaxy S9 and Samsung Galaxy S8
due to lack of demand, high competition and change in consumers’ needs.
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LO3 Design and pitch a new/renovated product or service
Market opportunity for the proposed product or a service.
Samsung GALAXY S20, a newly technological advanced Smartphone that is consist of
huge range of extra ordinary features such napdragon 865 or Exynos 990 processor, up to 16GB
RAM, Up to 108MP quad-cameras, 8K video recording, Up to 40MP selfie camera with 4K
60fps video recording, arger Super AMOLED screens with 120Hz refresh rate and many others.
With these features, the respective company is easily able to influence interest of customers
towards them effectively which ultimately raises huge opportunities for them at international
market scale (Noe and Kodwani, 2018). It has also been seen that Samsung has effective global
presence. Therefore, they would surely introduce this product in several countries such as United
States, and other European and Asian countries like Germany, India, Japan and so on. With the
extraordinary feature, the respective company would be easily able to gain competitive edge.
Also, with the effective concern with the customers taste and preferences the company has large
number of loyal customers which directly supports them out in enhancing their sales
performance and maximise their profitability in rightful manner. All of the information clearly
depicts that the Samsung has huge market opportunity for its new product named as GALAXY
S20 at global scale.
Using models such as 7Ps, Proposed marketing strategy.
Marketing mix:
Product: Samsung offers huge variety of the products and services to its customers. The
main categories under which is products falls are Smartphones, Tablets, Wearables, Mobile,
Accessories, Audio and Videos, Memory Storage, Washing Machines and Dryers, Cooking
Appliances, Home Appliances, Monitors, Refrigerators and TV’s. At present, the respective
company is emphasising on introducing Samsung Galaxy S20 at marketplace as it is highly
featured as per the core demand and the requirement of the customers. The respective product is
of higher quality and also provides better experience to its users.
Price: Samsung follows premium pricing strategy while introducing Samsung Galaxy S20 at
marketplace. Here, the potential customers for this company are high profile people and the one
who are fond of using advanced featured mobile phones (Simonofski and et. al., 2019). Also, the
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profit margin of the company with this strategy is higher which ultimately maximises their
profitability with even moderate sale.
Place: Product (Samsung Galaxy S20) of the Samsung are offered to its customers at its
outlets, other retail stores as well as online medium too. It has been seen that Samsung has strong
presence in international market. In order to make effective accessibility to all its customers and
provide them ease in their purchasing process, the respective company has opened several stores
and also makes the products available at different stores effectively.
Promotion: In order to enhance knowledge of the customers towards the same, the
respective company focuses on making use of range of promotional activities specially social
media with the motive of attracting maximum number of customers towards them and enhance
their sales performance as well as profitability effectively (Rantala and et. al., 2018). With
respect to Samsung Galaxy S20, the marketing team of this company would surely make use of
social media marketing method in order to attract huge customers towards them.
People: Samsung considers its employees as well as customers as its core people. Here,
the top management team of the company believes in providing high quality services to the
customers with the motive of maximising their satisfaction level and develop healthy relations
with them. Also, for satisfying employees at extensive level, the respective company provides
regular based training to them so that their skills and knowledge can be enhanced effectively.
Process: It depicts the various ways by which Samsung offer their services like their
delivery system which is done under the presence of customer in order to gain satisfaction, trust
and faith and when the product is delivered then it becomes the part of what customer is pay for
(The
Salgado and Dekkers, 2018).
Physical appearance: It is considered as the significant factors as it helps in attracting
maximum number of customers with the help of its packaging and external appearance of the
product and services like decorating their store and gift packing on the online platform.
Synopsis of the competition and industry by using framework such as Porter’s 5 forces analysis.
PORTER’S FIVE FORCE MODELS
Porter’s five force models are considered to be framework that helps the organization that
deals with competitiveness with other industries. This method is used to analyze the structure of
the company that helps to find out strong and weak factors of the industry. With reference to the
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Samsung, it can be said that the respective manager of the company focuses conducting five
forces analysis as it help to measure the rivalry intensity and their profitability margin. This
analysis has been done in detailed manner underneath:
THREATS OF NEW ENTRANTS
Threat of this force is very low for SAMSUNG as it is very old and well- settled entity.
This company is leading market for many years so it is very difficult for any new company to
enter in the same field. The company needs a huge amount of investment to setup a structure like
SAMSUNG and be in a game. This tends to generate opportunity for the Samsung as the
respective entity could easily offer a new and innovative product to attract customers so that they
can lead the market. While looking influence over customers it can be said that customers had to
take this industry’s product as they doesn’t have any other good option without bargaining.
LEVEL OF RIVARLARY WIHTIN THE SECTOR
With reference to SAMSUNG, level of rivalry within the sector is quite high as in many
industries are in same field. Some of main competitors of SAMSUNG are Apple, LG, Huawei,
TOSHIBA, SONY, LENOVO, DELL and many others which gives huge competition to one
another with respect to quality of product, services and prices. The company can only growing
by capturing each other customers. This tends to generate slow industry growth. In order to gain
the competitive edge within the same sector, Samsung is required to emphasise on providing
huge product portfolio to the customers along with the higher quality of product and services at
affordable prices. This would directly lead to increase in sales performance of the company and
ultimately raise their profitability in effective manner.
THREAT OF SUBSITITUTE
Threat posses by this force are quite high as SAMSUNG is belongs to
Conglomerate industry. Even though, the respective company is leading the market for many
years but still there is the scope of substitute as competitors can easily grab interest of the
customers by simply offering their new highly featured and technology oriented mobile phone.
This simply generates huge threat for the company within the same industry. The customer had a
very huge alternative option in products which ultimately raises their expectations from the same
sector. In order to deal with this, SAMSUNG is required to offer high technology oriented and
good quality of products at affordable prices to their customers so that they can get satisfied with
the product.
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BARGAINING POWER OF SUPPLIER
The influence of this factor in context to retail industry is very low as SAMSUNG is well
established entity within the respective industry and also has good market share value. The
marketing team of company can deal with the supplier at the negotiable price as they are giving
bulky orders. Here the supplier had to agree with price offered by the SAMSUNG because if
supplier doesn’t agree the same offer can be given to any other supplier. It is very good to be
work with such large industry as they are giving orders constantly. This clearly depicts that the
bargaining power of the supplier is relatively low for Samsung. This also develops opportunity
for the Samsung within the same sector effectively.
BARGAINING POWER OF BUYER
Bargaining power of buyer is very high in every industry. This is because if the entity is
not giving high quality product than the consumer can easily switch to another product present in
market. It is very essential for top management of SAMSUNG to ensures that highly technology
oriented product offered to customers so that they doesn’t move to any other alternative and the
price offered them should be very minimal. In order to do in effective manner, it is very much
essential for the respective company to focus on developing their own understanding towards
customers needs and preferences so that they can easily make modifications in their existing
offerings as per the core requirements of the customers in rightful manner. This would directly
grab attention of the customers and maximise their sales performance as well as profitability in
rightful manner.
Financial overview.
On the basis of the information shown in above section that is marketing strategy, it has
been determines that Samsung is going to introduce existing product named as Samsung
GALAXY S20 with some modification across the globe. According to the information
developed on it from the initial phase, a hypothetical trial balance as well as budget has been
developed by simply considering current position of the product within the same sector. Both the
trail balance and budget are stated as below:
Particulars Year 1 Year 2 Year 3
Opening balance 447000 4416000
Receipts
Revenues 6000000 6500000 3000000
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Total A 6000000 6947000 7416000
Payments
Direct labour 48000 56000 78000
Cost of buying raw
items
5000000 2000000 3000000
Utility cost 150000 120000 145000
Rent of office 80000 80000 80000
Salaries to skilled
staff
250000 250000 250000
Taxation 25000 25000 25000
Total B 5553000 2531000 3578000
Closing balance
(Total A - B)
447000 4416000 4416000
Trial balance for launching or promoting Huawei product i.e. p40 Pro is presented
underneath:
Trial Balance DR CR
BANK fund 540,400
BOOKINGS income 470,400
Salary payment 260,000
Rental expenses 200,000
Marketing revenue 150,000
Expenses of bills 25,000
Marketing expenses 55,000
Value added services 35,000
Advertising expenses 15,000
Fitting devices 110,000
Insurance Policy 70,000
Sage Tech 10,000
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