BUMKT5902: Marketing Management - Samsung S11 Report

This report provides a comprehensive marketing analysis of Samsung's S11, examining its position within the competitive consumer electronics market. It begins with an introduction and overview of Samsung, highlighting its history and market share. The report then delves into an industry overview, providing statistics on market size, growth, and user demographics. A detailed SWOT analysis is conducted to assess the strengths, weaknesses, opportunities, and threats facing Samsung with the S11 launch. The report further explores segmentation, targeting, and positioning strategies, followed by an in-depth look at the marketing mix, including price, promotion, place, and product. The report concludes with a summary of the findings and references used. The assignment follows the given instructions, and the report offers a robust framework for understanding the marketing challenges and opportunities surrounding the S11 launch. The report is targeted towards the marketing management course BUMKT5902.

Running head: MARKETING MANAGEMENT
Marketing Management
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction:...............................................................................................................................3
Overview:...................................................................................................................................4
Industry Overview:.....................................................................................................................4
SWOT Analysis:........................................................................................................................7
Strengths:................................................................................................................................7
Weakness:..............................................................................................................................9
Opportunities:.........................................................................................................................9
Threats:...................................................................................................................................9
Segmentation, Targeting & Positioning:..................................................................................10
Segmentation:.......................................................................................................................10
Targeting:.............................................................................................................................10
Positioning:..........................................................................................................................11
Marketing Mix:........................................................................................................................11
Price:....................................................................................................................................11
Promotion:............................................................................................................................12
Place:....................................................................................................................................13
Product:................................................................................................................................13
Conclusion:..............................................................................................................................13
References:...............................................................................................................................14

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Introduction:
The modern business world is observed to face significant amount of competition as
more and more new organizations are entering the market with the hope of rapid growth and
a stable establishment. The consumer electronics market is one of the industries that is
observed to be affected with the highest level of competition in the recent years (Bashir,
2013). The intense level of competition amongst the organizations is pretty evident with the
existing organizations of the industry searching for new strategies for managing the threat of
substitution imposed from the part of the new organizations entering the industry (Haucap &
Heimeshoff, 2014). The main basis of the competition in the mentioned industry is observed
to be the incorporation of the modern technology for the increment of the facilities of the
product that the organizations offer to their customers or the application of the low pricing for
the products (Zhu et al., 2013). However, some of the existing organizations are observed to
apply the strategy of the product chain increment. The paper is focused in the elaboration of
one such company in the form of Samsung. The mentioned organization is one of the largest
companies in the consumer electronics industry in terms of the market share. However, as a
result of the intense market competition, the mentioned organization is observed to be
concerned in introducing new products for managing the impact of the competition.
The paper is focused in the description of one of the new product of the organization
named as S11. The paper provides a brief overview of the company and in addition to this,
the paper also includes an analysis of the current consumer electronics market in which the
organization operates. Apart from this, the paper summarizes the findings of the internal
analysis with a precise application of the SWOT analysis. Other than this, the paper produces
a significant explanation regarding the segmentation, positioning along with targeting

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strategies that the organization is expected to undertake. In addition to this, the paper also
produces a crucial analysis regarding the marketing mix of the product.
Overview:
As mentioned earlier, Samsung is one of the most reputed companies in the consumer
electronics market and with a precise focus on the market share, it is visible the company is
able to conduct a profitable business across the globe. The organization operates in the
conglomerate industry and even after that, is able to have a strong presence in the consumer
electronics market. The organization was established in the year 1938 by one of the renowned
businessmen of South Korea, Lee Byung-chul (Samsung.com, 2019). The excellence in the
leadership of the senior management team of the organization which includes the chairman of
the organization, Lee Kun-hee and the vice chairman of the organization, Lee Jae-yong is one
of the crucial reason responsible for the formation of the ability of the organization in serving
the customers across the world in uninterrupted fashion (Samsung.com, 2019). Apart from
this, the operational excellence of 320671 number of employees recorded in the year 2017 is
considered to be one of the crucial factor in favour of the organization in the generation of the
US $210.9 billion as revenue and in the generation of US $37.1 billion as the net income in
the year 2017 (Samsung.com, 2019). The organization is able to increase their product chain
with the inclusion of many of the products that are result of the out of box and creative
thinking of the senior management of the organization. With a precise focus on the strength
of the management in introducing new products in a successful manner along wit the rapid
growth of the consumer electronics market, the senior management of the organization is
focused in introducing their new product in the form of S11 (Samsung.com, 2019).

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Industry Overview:
The global consumer electronics market is expanding in a significant manner and that
is pretty evident with the increasing revenue of the organizations operating in the mentioned
industry. The revenue of the mentioned industry is expected to increase to 337754 million US
dollars in the year 2019 (Statista.com, 2019). Apart from this, the global consumer
electronics market is estimated to show a growth of 7.7% annually in the time span from
2019 to 2023 and that is significant in stating the increment of the market volume to 454,492
million US dollars by the year 2023 (Statista.com, 2019). In addition to this, the user
penetration in the consumer electronics market is observed to be 23.7% in the year 2019,
however, the rate is expected to increase in a significant manner and reach to 33.5% by the
year 2023 (Statista.com, 2019). Other than this, the industry is observed to be experience the
largest generation revenue in the Chinese market which is expected to reach to 127269
million US dollars in the year 2019 (Statista.com, 2019).
(Information: Global Revenue of Consumer Electronics Market)
(Information Courtesy: Statista.com, 2019)

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From the statistics of the revenue of the global consumer electronics market, it is
pretty evident that the industry is subjected to a significant growth the in the revenue. The
total revenue of the industry in the year 2017 was recorded to be 285583 million US dollars,
however that in the year 2018, increased to 307279 million US dollars (Statista.com, 2019).
The growth is pretty evident and the continuation of the growth is also visible from the
statistics as the expected revenue of the mentioned industry in the year 2019 and 2022 are
337754 million US dollars and 435379 million US dollars respectively (Statista.com, 2019).
(Information: User Penetration in terms millions)
(Information Courtesy: Statista.com, 2019)
From the above mentioned statistics, it is visible that the industry is facing a
significant rise in the number of users and the growth is rapid in nature. In the year 2017, the
global consumer electronics market is observed to have 1348.3 million number of users
which in the year 2019, is expected to rise to 1741.9 million number of users (Statista.com,
2019). The growth is expected to continue and that is pretty evident with the estimation of the
2355.8 number of users in the year 2022 (Statista.com, 2019).

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(Information: User demographics (age))
(Information Courtesy: Statista.com, 2019)
From the statistics of the user demographics, it is visible that the youth generation are
the main target for the organizations operating in the consumer electronics market. The
preferable segment of the market for Samsung with their Galaxy S11 will be the people of the
age group of 20-40 years (Statista.com, 2019).
(Information: User demographics (income))

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(Information Courtesy: Statista.com, 2019)
From the statistics of the user demographics in the aspect of the income, it is
understandable that the mentioned industry experienced considerable number of customers of
the high income groups (Statista.com, 2019). Apart from this, the customers of the middle
class income group is also seen to have a significant share of the customers and that is one of
the factor that have the potential to affect the application of the pricing strategy of the
mentioned organization.
SWOT Analysis:
Strengths:
With the introduction of the Galaxy S11, the main motive of the mentioned
organization is to minimize the impact of the competition that the mentioned organization is
facing rom the part of the companies such as Apple, Xiaomi or Huawei (Apple.com, 2019).
The introduction of Galaxy S11 will be crucial from the part of the mentioned organization in
providing a perfect next edition product after their success in introducing Galaxy S10
(Samsung.com, 2019). One of the major strength of the product is the perfect full screen
display which in the modern generation is seen to be one of the top most priority for the
buyers.
Apart from this, the inclusion of the Qualcomm 5G chip in the new product of the
organization is expected to provide a competitive edge to the product in comparison to the
products of the other organizations (Tomsguide.com, 2019). The incorporation Qualcomm
5G chip will be significant for the mentioned organization in improving the power efficiency
of the product. Hence the battery backup for the product will be significantly high
(Tomsguide.com, 2019). With the inclusion of only one chip for the mentioned product, the

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organization will be able to limit the weightage of the product and it will also enable the
organization in introducing attractive designs in the product.
Apart from this, the product will include USB-C and is expected to have no
headphone jack. This will be crucial for the organization in eliminating the concern of the
customers regarding the wire connected headphones.
Considering the strength of the company in introducing the new product and
conducting a profitable business, one of the major strength of the organization will be the
brand awareness of the organization.
The availability of the products at different price ranges in the organization plays a
crucial role in favour of the company in targeting the customers across the various income
groups.
Other than this, the service excellence of the employees of the mentioned organization
in the introduction of products of optimum quality and finest of the designs, is one of the
important strength of the mentioned organization.
Weakness:
One of the main concern of the mentioned organization is the intense level of
competition that it is facing from the increasing market share of the companies such as Apple,
LG, HTC, Xiaomi and Huawei (Mi.com, 2019). With the application of the low pricing
policy, Xiaomi and Huawei are seen to provide tough competition to the products of the
mentioned organization and that has forced the organization in an intense price wars (Özer &
Zheng, 2015).

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Opportunities:
The opportunity for the organization with the new product is seen to be significant as
the organization will be able to produce a better version of the Galaxy series product and in
addition to this, it will enable the customers to experience a low weight product
(Samsung.com, 2019). In addition to this, the introduction of the product will enable the
company in producing the scope to the customers in experience of improved features which
will have the potential to create the customer loyalty amongst the customers of the
organization.
The launch of the mentioned product will provide a significant boost to the mentioned
organization as it will be serve the opportunity to the organization in improving their
reputation of being one of the most innovative and tech friendly business organization of the
world.
Threats:
With a precise focus on the global consumer electronics market, the organization will
face considerable amount of threats in various aspects of the business. First of all, the
organization will be subjected to the increasing charges of the raw materials for the products
and that is pretty evident with the increasing prices of the screens, batteries and the chips that
are expected to be used in the mentioned product (Tanskanen, 2013).
Apart from this, the organization is expected to face hit of the labour market owing to
the increasing labour and employment charges of the employees (Chan, Pun & Selden, 2013).
Apart from this, the organization has the possibility of facing the threat of the price
war that is pretty prominent in the modern consumer electronics market. The Chinese
competitors of the mentioned organization can come up with similar products with the
application of the low pricing which has the potential to affect the organization in the

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successful establishment of their product and in the achievement of the larger market share
which is one of the prime objective of the senior management of the organization.
Segmentation, Targeting & Positioning:
Segmentation:
The organization has the expertise in operating in the consumer electronics market
with the capability to provide the optimum quality mobile phones and home appliances to the
customers of the organization. With the expertise in providing quality products in the mobile
phones and consumer electronics section, the company will be able to conduct a profitable
business with the introduction of the new product (Samsung.com, 2019). The new product
will enable the organization to increase their goodwill amongst the customers and will
certainly play a crucial role in the increment of the effectiveness of the products of the
organization. The introduction of the product will increase the share of creativity and
innovation in the product chain of the organization which will be crucial for the organization
in achieving a better level of acceptance amongst the customers of the young generation.
Targeting:
The main target for the company will be the youth generation as it is pretty evident
from the above analysis that the main target for majority of the consumer electronics
organizations are the youth generation. The customers belonging to the age group of 20-40
years is observed to be maximum purchaser of the consumer electronics products and the
intention of the repetitive purchases is pretty evident amongst the customers of the mentioned
age group (Statista.com, 2019). Hence the organization will be subjected to a profitable and
sustainable business with the new product if they target the youth generation for their
product. On the hand, considering the income of the customers, the organization needs to
make sure that they target the middle class customers with their pricing policy so that the

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customers of the organization be able to serve a larger number of customers. The application
of the pricing policy with a precise focus on the income levels of the middle class income
group will also enable the company to target the customers of the high income groups
(Statista.com, 2019).
Positioning:
The organization is dedicated for providing the best quality products for their
customers and is determined to serve their customers with the products that include the
modern and improved technology along with the creative thinking of the research and
development departments of the organization. Along with this, the company has the expertise
in providing value for the money of their customers. Apart from this, the company has the
ability to serve their products in different price ranges so that the customers of all income
groups have the chance to experience their products (Samsung.com, 2019).
Marketing Mix:
Price:
The application of the pricing policy for the mentioned organization with the new
product will be price skimming (Spann, Fischer & Tellis, 2014). As it is pretty evident that
the product is new to the organization and there is considerable number of customers,
specifically the customer community of the mentioned organization and their Galaxy series,
are excited about the brand and the products of the organization. With a precise focus on the
craze of the customers regarding the products of the mentioned organized organization, the
company will be able to successfully apply the price skimming strategy.
Promotion:
As the product is new, the success of the organization in introducing the product will
be significantly dependent on the ability of the company in conducting increased amount of