Sales Promotion Report for Samsung: Dubai Campaign Analysis, MKT 3151

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Added on  2022/11/19

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This report presents a comprehensive sales promotion plan for Samsung, designed for the Dubai market. The primary objective is to increase sales by 20% within the financial year. The report identifies the target customer base (ages 15-50, AED 18,000 family income, Dubai residents) and retailers as key audiences. It outlines consumer-oriented promotions such as discounts on Galaxy series phones, free shipping, and event sponsorships. Trade promotions involve incentives for retailers to sell more Samsung products. Communication strategies include print ads, digital media, and email marketing. The budget allocation covers promotional activities (discounts, shipping, events), trade promotions (memos, incentives), and communication activities (print, digital, email). The report also includes a schedule of activities, legal considerations for advertising, and logistics for print materials. References from news sources are included to support the analysis. The report provides a complete and detailed analysis for a successful Samsung sales promotion campaign.
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Running head: SAMSUNG SALES PROMOTION
SAMSUNG SALES REPORT
Name of the Student
Author note
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1SAMSUNG SALES PROMOTION
Sales report
Objectives of the sales promotion campaign
The main objective of this sales promotion campaign is to increase sales by 20% in
the ongoing financial year for Samsung. Samsung is currently one of the world’s largest
mobile manufacturers in the world. The main thing that has to be identified about this
company is the fact that it has been growing at a rate of whooping 9% every year
(News.samsung.com 2019). However, it has been facing tough competition from companies
like Apple and Huawei, which is the reason why it is facing threats in keeping its market
share (News18 2019). If the market share of the company falls, the sales would go down as
well. Therefore, this promotional campaign is a retentive measure for the ongoing sales of the
company. In this context, sales is the only thing that has to be considered as an objective,
since Samsung already has a fair amount of market share. This promotional campaign would
only prompt the existing customers buy more often instead of switching, and possibly
increase the market share in the process consequently.
To ensure this, it has to be made sure that the retailers are also encouraged to sell the
products of Samsung. This would act as a support factor to grow the sales by the desired
percentage. Therefore, trade promotions for this campaign would also be required. The
allocated budget for this promotional campaign would be AED 10,000,000. This would be
including both the trade promotions and the consumer promotions.
Customers to be targeted
The customers who are to be targeted in this promotional campaign includes people
belonging in the age group of 15-50 years, with an annual family income of AED 18,000.
This section of the population have a respectable in the society, therefore, striving to keep
that standard with the purchases they make. This is also the section of the population that
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would be able to afford a Galaxy S10, as it can be inferred from their annual family income.
These people also have to be based in Dubai, since the promotional campaign is based in
Dubai.
Another section of the customers that have to be targeted with this campaign is that of
the retailers. Retailers are responsible for making sure that a product sells in the market, since
the sales processes of the products take place through them. Therefore, this promotional
campaign has to target the retailers too, in order to make them feel motivated to sell the
products of the company. Retailers have the access to a range of products, from a range of
companies that they have to sell to the customers in the market. Hence, there is a competition
that exists. It has to be noted that these retailers have the persuasion power to influence the
customer’s purchase decisions, and hence, providing the retailers a reason to sell these
products more than those of the competitors, would surely be a competitive advantage for the
company.
Consumer oriented sales promotions
Discounts are the main thing that have to be delivered to the customers. This is
because when price is low, demand for the good high, which indicates more revenue
generation for the company. It is for this reason that this is the primary sales promotional
activity that has to be undertaken. This discount could be 10% off on selected Samsung
mobiles, namely the Galaxy series.
Free shipping and return policies could also be formulated through the online retail
chains. Not many companies have this policy on electronics, and generally, there is always a
shipment fee that is associated with the purchase of an electronic product, and the return
policies are not up to the mark. Samsung could be an exception in this case and make sure
that they appear to be exclusive in this scenario.
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3SAMSUNG SALES PROMOTION
Events are also a great way to come in the limelight of brand awareness. Samsung
could possibly sponsor some of the most well reputed events in Dubai, namely Sunny Days.
This is an event that usually attracts people who belong in the same profile as that of the
target customer group of the company. In this way, it could be possibly showcasing to the
potential customers of the company.
Trade promotions
Retailers could be told through direct communication that the main thing that has to
be done is to make sure that Samsung mobiles are sold more than those of the competitors,
and there is a specific incentive associated with it. For every hundred Samsung mobile that
they purchase from the manufacturers, a waiving of 30% would be given to them. Therefore,
when they buy more of the products from Samsung, they would also be having to sell them in
the market, to make a greater profit since they got them at a lower cost from the
manufacturers.
Communication considerations
Print ads would be required to convey the discount offers to the public. These could
include every newspaper in Dubai, and therefore, would give way to a high reach. The free
shipping and return policy does not have to be advertised. This is a message that would be
delivered when the customers come looking for the Samsung products on online retail chains
such as Amazon.
For this purpose, digital media could also be used since it also has a high reach, which
is generally indefinite.
Furthermore, mails could also be sent out to the existing or the potential customers
informing them about the ongoing offers that Samsung are providing at the moment. This
data about who the mails have to be sent out to, could be retrieved from their own servers.
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4SAMSUNG SALES PROMOTION
The next thing that has to be considered is that of events. Sponsorship has to be
pitched to event organizers such as those of Sunny Days. Samsung has nothing to prove on
the basis of their credibility, and hence, any event would be very much welcoming of their
sponsorship, since it is a well reputed brand. This idea has to be pitched and sponsorship
rights have to be acquired from the events. After that, the company does not have to worry
much about reaching out to the public with this, since it would be the job of the event
managers to reach out to the public with Samsung’s name on it.
The retailers could be directly told about the scheme of the incentives that they would
get from the company if they would like to sell Samsung products more than those of the
other competitors, either in oral form or in a memo. A memo is more reliable since it is a
written formal document, that would be able to lay out the written proof of the scheme.
Budgetary considerations
Promotional activity Funds allocated in AED
discount offers 3,000,000
free shipping and returns 1,000,000
Events 2,000,000
Trade promotions Funds allocated in AED
Memos and incentives 500,000
Communication activity Funds allocated in AED
Print advertising 2,000,000
Digital media 1,000,000
emails 500,000
The budget in this sales promotional campaign has three distinct aspects. The first
involves the B2C promotional activity, which would be directed to the customers, and
include discount offers, free shipping and returns costs, and sponsorship costs. The second
aspect is that of printing the memos, which is directed towards the retailers, and hence,
involves a B2B promotion. Finally, the communication activities list out the various ways in
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which the customers could be reached out to with the appropriate messages, and the offerings
of the company.
Scheduling considerations
Activities Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
discounts x x x x x x x x x
Free shipping
and returns x x x x x x x x x x x x
Events x x x
Memos
incentives x x x x x x x x x x x x
The above table lists out that the main thing that has to be considered in this regard is
that of the memos and incentives, which have to be given to the retailers for the purpose of
increasing. This is to make sure that even when there are no expenses and efforts to increase
the sales, the retailers would be doing the job for the company to persuade the customers to
buy the Samsung products. This has to go on for an entire year, since the main thing that has
to be considered is the fact that once this sales figure goes up and the market is captured
firmly, it would be an immense competitive advantage for the company.
Legal considerations
For the purpose of the print ads, Permit request/Application form, Advertising design
in Arabic & English and a Valid License has to be acquired. The main thing that has to be
noted is that this permit has to be printed beneath the ad.
Logistics considerations
The logistics that are required in this sales promotional campaign requires to have an
extensive service for print, for the purpose of handing out the memos. These memos have to
be given out to a large number of retailers, and hence, the paper and has to be acquired from
an external agency, or they could given the work altogether, which is more feasible.
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References
News.samsung.com. (2019). Samsung Electronics Announces First Quarter 2019 Results.
[online] Available at: https://news.samsung.com/global/samsung-electronics-announces-first-
quarter-2019-results [Accessed 2 Aug. 2019].
News18. (2019). Samsung Leads, Huawei Registers Highest Growth in Q1 Which Saw
Global Smartphone Sales Decline. [online] Available at:
https://www.news18.com/news/tech/samsung-leads-huawei-registers-highest-growth-in-q1-
which-saw-global-smartphone-sales-decline-2163287.html [Accessed 2 Aug. 2019].
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