HI5004 Marketing Management: Samsung Smart Washing Machine Report

This report provides a comprehensive analysis of the marketing and distribution strategies for Samsung's smart washing machine. It begins by examining the brand positioning of the product, considering factors such as quality and price in comparison to competitors like LG and Hoover. The report then identifies the market leader, Whirlpool, and analyzes the consumer adoption process, including the importance of early adopters and the estimated time for full adoption. Furthermore, the report delves into the pricing strategy, advocating for a price skimming approach, and explores the optimal distribution channels, emphasizing the role of electronic specialty stores. The conclusion highlights the importance of these strategies for a successful product launch and a strategic advantage for Samsung in the competitive market.

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Table of Contents
Introduction......................................................................................................................................2
Brand positioning.............................................................................................................................2
Market leader for the product..........................................................................................................4
Consumer adoption process.............................................................................................................5
Pricing strategy................................................................................................................................5
Distribution channels.......................................................................................................................6
Conclusion.......................................................................................................................................7
Reference.........................................................................................................................................8

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High quality
Low price
Low quality
High price
Introduction
The new product of Samsung, the Smart washing machine has definitely a number of
important aspect that will help Samsung to get a strategic advantage in the competitive
international market. The new product has a key feature of using advanced technologies Wi-Fi
accessibility. As a result of that Samsung expects that this new product will be pretty attractive
for the customers. This report is going to focus on the marketing channels and distribution
system that the company has to follow in course of making the product successfully launch in the
market. Henceforth, brand positioning, market leaders, consumer adoption, pricing strategy and
distribution channels are required that this report is going to address.
Brand positioning

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The brand positioning creates a detailed understanding of the situation and
competitiveness that Samsung is facing in the international market. Adina, Gabriela and Roxana-
Denisa (2015) articulated that the role of the brand positioning is to portray a position of the
respected company and its position in the market in compare to its rival organisations. There are
two specific elements that can differentiate among the companies. In respect to this, Serhal, R.,
Pantin-Sohier and Peck (2018) opined that the quality and price of the product are the most
common elements that can show the competitive position of the company in the market. It helps
to understand the scope and opportunity for the respective organisation and the related marketing
strategies that the organisation should take in order to get more capitalisation over the customers.
Based on this, it can be stated that there are some specific features can be found about the
Samsung product in compare to its rival companies. For instance, it can be stated that Samsung is
always trying to provide advanced technology based product with a key focus on the quality of
the brand. It is associated with the intention to offer the customers a unique experience that is in
high quality and the company is entitled to secure the safety and security of the product. As a
result of that it is obvious for Samsung to follow high pricing strategy because their products are
innovative and exclusive. It seems that Samsung is bothered about its high pricing strategy
because it is within the core objectives of the organisation to ensure the quality and
innovativeness of their products. Hanaysha, Abdullah and Ghani (2016) advocated that the
quality of the product was considered to be a determinant of its pricing. The more the quality is
the more the price will be. In this case, the quality and innovativeness of the product is the major
attraction for the customers rather than the price tag. In compare to this, rival companies like LG
also tries to provide quality products to customers but with a lesser price. However, the products

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of Hoovers are not satisfied enough in quality therefore the price is comparatively lower than
other two rivals.
Market leader for the product
It is important to identify that the market leaders for Samsung is Whirlpool who are
encapsulating the majority of the home appliances industry across the world. According to
Wongtada and Krairit (2017) market leaders are defined as the leading business companies that
have highest number of customers in a particular market. Henceforth, Samsung follows the
strategies and innovative steps extensively.
As far as the niche of the Smart washing machine of Samsung is concerned, it can be
stated that for the washing machine is the first ultra large capacity washer in Australia that also
has a Wi-Fi technology. Moreover, there is remote control and monitoring process that is
installed within the smart washing machine that create a unique position and value of the
Samsung smart washing machine in the market. Apart from that a large LCD screen is also
attached with the washing machine that makes the product more unique and attractive to the
customers due to its multi-tasking abilities. In fact, the self-cleaning filter technology help the
product more user-friendly and cost effective for the customers.
Those features are definitely enabled Samsung to get more advantage in the international
home appliances market because of its user-friendly methods and cutting-edge technologies.
There are certainly a number of other companies with high end washing machines but none of
the products are close enough to the smart washing machine of Samsung. As a result of that it
can be stated that this product will be a leader in the future home appliance market.

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Consumer adoption process
According to Laukkanen (2016) it can be stated that consumer adoption process is highly
complex and fluctuating due to immense impression of the consumer behaviour. Therefore,
awareness of the product and building an interests among the customers is considered to be the
major steps for a business organisation in order to attract customers in a rapid scale. As a result
of that it becomes an important aspect for Samsung to measure the adoption of the customers.
The target customers are basically the early adopters who are relied more on the verbal
promotion of the products. From the research of de Jong, Gillert and Stock (2018) it can be
argued that the early adopters are heavily focused on the reassurance from the others before
buying a product. As a result of that they can easily avoid the purchase risk to a great extent.
Henceforth, the consumer adoption process of Samsung Smart washing machine is based on the
early adopters to the early majorities. While discussing about the early majorities, Rahman and
Mannan (2018) pointed out that they are substantially influenced by the purchasing decision of
the early adopters. However, the early majorities are very cautious about their buying decision
and more brand oriented. Therefore, the entire estimated time of full adoption will be 5 months.
The reason behind choosing such an extensive timing is that the process is not so smooth for
both the early adopters and for early majority as well. Both of them are heavily inclined towards
the decision and feedbacks from the early users. In addition to this, the mouth to mouth
promotion takes enough time to convince these kind of buyers to take proper decision.
Pricing strategy
The price skimming strategy should be implemented by Samsung in order to embolden
its customer base. Based on the research of Toptal and Çetinkaya (2015) it can be seen that price

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skimming is a strategic pricing strategy that will help the business organisation to maximise the
customers in the high competitive market. McMullen and Bergman (2018) opined that the in the
price skimming strategy the organisations follow a high pricing strategy in the primary stage and
then lowers over time. The demand of the product determines the decrease in price. The more the
demand will rise the more the organisation will lower the price of the product. As a result of that
it becomes easier to penetrate the market with better strategy and the company will get benefitted
in compare to its rivals. Liu, and Chen,(2018) advocated that price skimming strategy was seen
in the technological products mostly where the product demand is inconsistent. Henceforth, the
companies follows a high pricing strategy at first and then to attract more customers lowers the
price of the product. For Samsung washing machine, it will be effective to use the price
skimming strategy so that in the competitive market it will provide more effectiveness for the
company to set its target and able to maximise customers despite of facing high competitiveness.
Moreover, the smart washing machine of Samsung is also a technology driven product which fits
the purpose and activities of the price skimming strategy.
Distribution channels
For the smart washing machine of Samsung, it is important to focus on the retailing
stores. Therefore, partnering with electronic speciality stores and electronic speciality chains are
very important Samsung to focus. The role of this stores is not only selling the smart washing
machines but also wholesaling the product so that it will help to maximise the customers. The
entire retailing and wholesaling process requires a minimum 5 hours of operation each day so
that the sales target can be achieved effectively. The logistics can be supplied by the wholesaling
companies which will reduce the liability and expenses of Samsung. The logistics supply will be

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24/7 so that it will attract the customers effectively. However, Samsung will set a sales target for
the electronic stores so that a monitoring and scenario of the entire process can be evaluated
properly. The capacity issue will not be problem because it is the responsibility of the respected
wholesaler and due to have a sales target a balance between the capacity and sales of the smart
washing machine can be maintained effectively.
Conclusion
The above discussion is trying to highlight on the marketing channels and distribution
system of smart washing machines of Samsung. As a result of that discussing the pricing
strategy, consumer adoption process and the brand position are most important aspects for
Samsung to decide its distribution system and the marketing channels properly. The purpose of
the organisation is to maximise its customers in a step by step measure. Therefore, it can be
concluded that the prescribed strategies will facilitate a strategic advantage for Samsung to make
its new product launch a success.

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Reference
Adina, C., Gabriela, C. and Roxana-Denisa, S., 2015. Country-of-origin effects on perceived
brand positioning. Procedia Economics and Finance, 23, pp.422-427.
Hanaysha, J., Abdullah, H.H. and Ghani, N.H.A., 2016. Importance of product quality and
service quality in developing brand equity. Journal for Global Business Advancement, 9(4),
pp.390-401.
Wongtada, N. and Krairit, D., 2017. Survival of a market leader in a regional integration of
emerging economies: A case study of the tourism industry in Thailand. Journal of the
International Academy for Case Studies, 23(1).
Laukkanen, T., 2016. Consumer adoption versus rejection decisions in seemingly similar service
innovations: The case of the Internet and mobile banking. Journal of Business Research, 69(7),
pp.2432-2439.
de Jong, J.P., Gillert, N.L. and Stock, R.M., 2018. First adoption of consumer innovations:
Exploring market failure and alleviating factors. Research Policy, 47(2), pp.487-497.
Rahman, M.S. and Mannan, M., 2018. Consumer online purchase behavior of local fashion
clothing brands: Information adoption, e-WOM, online brand familiarity and online brand
experience. Journal of Fashion Marketing and Management: An International Journal, 22(3),
pp.404-419.
Toptal, A. and Çetinkaya, S., 2015. The impact of price skimming on supply and exit
decisions. Applied Stochastic Models in Business and Industry, 31(4), pp.551-574.

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McMullen, J.S. and Bergman Jr, B.J., 2018. The promise and problems of price subsidization in
social entrepreneurship. Business Horizons, 61(4), pp.609-621.
Liu, J., Zhai, X. and Chen, L., 2018. The interaction between product rollover strategy and
pricing scheme. International Journal of Production Economics, 201, pp.116-135.
Serhal, R., Pantin-Sohier, G. and Peck, J., 2018, May. Packaging Texture and Shape as
Enhancers for Brand Positioning: The Moderating Role of Need for Touch (NFT): An Abstract.
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