PRODUCT ANALYSIS

PRODUCT ANALYSIS OF MOBILE PHONE SAMSUNG

Company Profile Company Highlights Samsung, South Korean company that is one of the world’s largest
producers of electronic devices. Samsung specializes in the production of
a wide variety of consumer and industry electronics, including appliances
, digital media devices, semiconductors, memory chips, and integrated
 systems. It has become one of the most-recognizable names in
technology and produces about a fifth of South Korea’s total exports.

Key Competitive  Strong commitment to research & development

Advantage Samsung always search and look for the needs of their customers
ahead of the rivals. They research and find the demands of the
customers.
 Product innovation and design capabilities
Samsung is capable of doing well designed and friendly products.
Samsung has got different awards for their innovative and well-
designed products over the years.
 Combining Japanese and American Strategies
combine strategies of both Japanese and American. japanese
companies usually like to offer multiple products whereas American
companies are more focused and selective on a small product range.

 
Target Market The market for the company in terms of the core- and advanced-technology businesses is
likely to be dominated by companies in China. Samsung Electronics is also a major
player in other Asian countries, but China is a market that is relatively mature. The
company is also a significant player in the US.
The company Samsung's business model includes providing high-quality mobile
shopping, enabling customers to shop from virtually anywhere, including in the offline
world. The company has more than 2.2 billion unique visitors monthly and 745 million
mobile transactions.

Market Share Samsung reclaimed the top position in 3Q20 with a market share of 22.7% after shipping 80.4
million smartphones, up 2.9% year over year. In India, the largest market for Samsung and
accounting for 15% of total volume, the brand significantly improved its position with close to
Market Information 40% growth year over year thanks to its strong performance in the under $250 price segment

Market Strategy Its marketing strategy is focused at the customers as well as the quality of its products.
Marketing plays a central role in driving demand higher and growing the sales of a company as
well as creating a strong brand image for any product or business. Samsung invests a large sum
each year in marketing and promotions of its brand and products. In 2018, the 
advertising expenses of Samsung were around 4 trillion Korean won and sales promotion costs
totalled around 7.1 trillion Korean Won. Total marketing expenditure of Samsung was higher
than 9 Billion US dollars in 2018. It shows how much Samsung spends on growing the sales
and demand of its products. Apart from that the brand is using digital technology heavily for
marketing and customer engagement. The result is higher customer retention as well as faster
growth of customer base. Overall, this has worked to make Samsung’s position in a highly
competitive industry and global market stronger.
Products & Samsung Electronics produces LCD and LED panels, mobile phones, memory
Services chips, NAND flash, solid-state drives, televisions, digital cinemas screen, and
laptops. The company previously produced hard-drives and printers.
Pricing Samsung’s pricing strategy is also an important support behind its competitive
strength and global leadership position. It  has brought products for both the higher
and the lower end market. Apart from the premium Galaxy models of smartphones, the
company has also brought a large range of affordable smartphones to the market. This
is an important reason behind the brand’s competitive strength and a reason behind its
large customer base. Apart from the mobile phone segment, in the consumer
electronics segment too, it has brought products in both the premium and the lower
end segment.
Promotion Samsung smartphone is focused on the promotional strategies so that there could be
Product Information the effectiveness in the market, the company is promoting the brand through
(4P’S) implementing effective strategies. Samsung smartphones are focused on the
promotional strategy through the marketing strategy, however, the company on the
launch of the new product focuses on giving the print brochures, posters and the
specification sheets to the customers so that people could know about the new product.
Thus, the products are also displayed on the Samsung’s website there is also the
information of the specific product, the retail outlets also participate in the events.
 
Distribution Distribution channels is defined as a set of independent organisations involved in the
Channels process of making a product or service available for use or consumption by the
consumer or industrial user
More over distribution channels come in 3 different forms;
 Manufactures sell directly to consumers
 Manufactures sell to retailers then retailers to consumers
 Manufacture sell to wholesaler who sell to retailers who then sell to consumers 
Strength  Samsung has strong manufacturing and marketing capabilities.
 Samsung is the world’s most successful electronics manufacturer. It is the world’s
largest manufacturer of television sets, liquid crystal display (LCD) panels,
mobile phones and smartphones.
 Samsung has long-standing relationships with retailers in the United States and
Europe that provide a steady sales channel for its products.
 
Weaknesses Samsung has not been able to match Apple Inc.’s marketing capabilities for smartphones.
Its share of the U.S. smartphone market fell by 2.3% between 2014 and 2015. In contrast,
Apple’s share price grew by 34.9%.
Samsung is heavily dependent upon consumer electronics sales in markets with limited
potential for growth, such as the United States and Europe, for much of its revenue.
Some consumers view Apple products as more advanced and dependable than Samsung
SWOT Analysis products.

Opportunities  Increased demand for tablet and smartphone-based solutions such as Samsung Pay
 New technologies such as wearable tech
 Growing middle class in developing world will increase market for consumer
electronics.
 
 
Threat  Apple has emerged as the dominant smartphone and tablet brand in some markets,
such as the United States. Samsung has not been able to overcome Apple’s reputation
for reliability.
 The Google Android operating system, which Galaxy devices depend upon, is not as
popular with average people as iOS is.
 Apple’s reputation for quality, reliability and sophistication seems to be growing.
 
 Market Analysis

SAMSUNG IS TARGETING THE CUSTOMER MARKET BY DIVIDING IT INTO DIFFERENT SEGMENTS AND OFFERING EACH SEGMENT DIFFERENT
PRODUCTS BASED ON THEIR COMMON CHARACTERISTICS. THE MARKET IS DIVIDED INTO GEOGRAPHIC, DEMOGRAPHIC, PSYCHOGRAPHIC AND
BEHAVIORAL SEGMENTATION. COMPANIES USE SEGMENTATION TO REDUCE RISK IN DECIDING WHERE, WHEN, HOW AND TO WHOM A PRODUCT
OR SERVICE WILL BE MARKETED. ADDITIONALLY, COMPANIES USE SEGMENTATION TO INCREASE MARKETING EFFICIENCY BY DIRECTING
EFFORT SPECIFICALLY TOWARDS A DESIGNATED SEGMENT, IN A WAY THAT MATCHES WITH THE SEGMENT’S CHARACTERISTICS (KOTLER, 2016).

MARKETING ANALYSIS TARGET MARKET OF SAMSUNG

Geographic Samsung’s Geographic Segmentation has divided the Asian market into geographical regions
such as north, south, east and west, as well as targeting different Asian countries in a different
way, by dividing those countries as for example, the Chinese market (Momin Mukit).
Demographic The company its Demographic Segmentation is focused on males and females, where age does
not really matter, but most of its users are people between 13 and 60 years of age. Samsung’s
products are offered with different features to different people, based on their income level,
which results in Samsung being for everyone. (Samsung Electronics, Ashgar, Mukit). Also,
Samsung has divided customers according to their occupations, such as students, businessmen,
or regular employees (Momin Mukit
Psychographic As for Samsung’s Psychographic Segmentation, customers are classified on different levels,
based on their lifestyles and personalities, for example an ambitious, sports loving customer
(Ashgar, Mukit).