In this article, you will learn about Samsung Marketing Analysis. It will include Introduction, Vision Statement, Mission Statement, SWOT Analysis, Segmentation, Target Market, Success Strategies, Marketing Mix (4P’s) Strategies, Financial Statement, Market Share and Conclusion of Samsung
Samsung Electronics Co., Ltd. is the second-largest electronic device manufacturer in the world. Samsung company is run by the South Koreans. In addition, Samsung was named the top consumer electronics brand in the world and is renowned for its continuous development in digital technology. The company is known to produce equipment that includes telecommunications, electronics, home appliances, and semiconductor.
Lee Byung-Chul founded Samsung in the year 1938. It began as a trading company until it gradually changed into an electronics manufacturing in the late 1960s. In December 2021, the company employed around 267,937 employees. Its current CEOs are Koh Dong Jin, Kim Ki Nam and Kim Hyun Suk.
Samsung: Vision Statement
Samsung follows a simple business principle: to devote it’s talent and technology to creating superior products and services that contribute to better global society. Samsung sets a high importance on its people and technologies to do this.
Samsung’s corporate vision is to inspire the world with our innovative technologies, products and design that enrich people’s lives and contribute to social prosperity by creating a new future.
It also reflects commitment to inspiring its communities by leveraging Samsung Three key strengths: Technology, Innovative products, Creative solution.
“Inspire the World and Create the Future”
Samsung: Mission Statement
Samsung’s mission is to focus on developing its brand and emerging as an innovative market leader. It’s corporate mission is focused on the following components: Human resources and technological resources, Superiority of products and services, Improvement of the global society
“Focused on establishing its brand and emerging as a creative market leader”
SWOT ANALYSIS OF SUMSUNG
- Has a monopoly on the smartphone market
- Biggest market share in the mobile phone industry.
- Brand Reputation is Strong.
- Large product diversity
- Cost and Quality driven
- Have strong global presence
- Winner of Awards (43 Consumer Electronics Show awards)
- Contain innovations That Are Eco-Friendly
- A very high investment in research and development (R&D)
- Highly trained employees
- Absence of own Operating System and software
- Expensive product
- Not been able to compete with Apple Inc. for smartphones in terms of marketing
- Damage to brand image due to product safety issues
- A dependence on Google’s Android operating system gives users little control over user experience.
- Low profit margin
- Quality is lower than Apple’s Smartphones
- Dependent Mostly on Consumer Electronics
- Too many product diversity (lack of focusing on specific one).
- A few customers believe Apple products to be more reliable and advance than Samsung items.
- Scandal of corruption
- Future increasing investment
- Entering cloud business segment
- Trendy innovations like wearable technology
- Focusing on mobile advertisements
- Offer 5G and 6G network equipment
- Increasing internet market from retailers like Amazon.com
- The market for consumer electronics will grow as the middle class expands in developing nations.
- Business growth through product development
- Powerful Processor for Gaming on Next-Gen Smartphones
- Can achieve impressive transformational objectives if it makes an investment in HR management.
- Change in currency exchange rates
- Legal and regulatory challenges
- Conflicts alleging patent infringement
- Economic instability
- Unhappy Phone User
- Increasing Competitors (Apple, Huawei, Xiaomi)
- LG’s Foldable Display Technology May Outperform Samsung
- Rise of Counterfeit Products
- Chinese, Taiwanese, and Indian Products represent a threat to the Local Market
- Nowadays, people are searching for better quality.
✔Has a monopoly on the smartphone market
✔ Biggest market share in the mobile phone industry
✔ Brand Reputation is Strong
✔ Large product diversity
✔ Cost and Quality driven
✔ Have strong global presence
✔ Winner of Awards (43 Consumer Electronics Show awards)
✔ Contain innovations That Are Eco-Friendly
✔ A very high investment in research and development (R&D)
✔ Highly trained employees
❌Absence of own Operating System and software
❌ Expensive product
❌ Not able to compete with Apple Inc. for smartphones in terms of marketing
❌Damage to brand image due to product safety issues
❌ A dependence on Google’s Android operating system gives users little control over user experience.
❌ Low profit margin
❌ Quality is lower than Apple’s Smartphones
❌ Dependent Mostly on Consumer Electronics
❌ Too many product diversity (lack of focusing on specific one).
❌ A few customers believe Apple products to be more reliable and advance than Samsung items.
❌ Scandal of corruption
✔ Future increasing investment
✔ Entering cloud business segment
✔ Trendy innovations like wearable technology
✔ Focusing on mobile advertisements
✔ Offer 5G and 6G network equipment
✔ Increasing internet market from retailers like Amazon.com
✔ The market for consumer electronics will grow as the middle class expands in developing nations.
✔ Business growth through product development
✔ Powerful Processor for Gaming on Next-Gen Smartphones
✔ Can achieve impressive transformational objectives if it makes an investment in HR management.
❌Change in currency exchange rates
❌Legal and regulatory challenges
❌Conflicts alleging patent infringement
❌Unhappy Phone User
❌Increasing Competitors (Apple, Huawei, Xiaomi)
❌LG’s Foldable Display Technology May Outperform Samsung
❌Rise of Counterfeit Products
❌Chinese, Taiwanese, and Indian Products represent a threat to the Local Market
❌Nowadays, people are searching for better quality.
MARKET SEGMENTATION OF Samsung
Samsung’s geographic segmentation comprises of two main areas namely; Region and Population density.
REGION: Worldwide presence
POPULATION DENSITY: Rural and Urban areas. For example, The Samsung Guru mobile phone brand is a segment primarily for mobile phone users in rural area. The Samsung Galaxy Segment, however, is more suitable to urban areas. With the selling of smartphones and tablets all around the world, Samsung has a target market that is international.
Samsung offers all age groups, including teenagers, young adults, and the middle-aged. Their mobile devices are designed for males and females as well.
AGE: All age groups
GENDER: Male & Female.
LIFECYCLE STAGE: Bachelors and newly married couple
OCCUPATION: Students, employees and professionals
EXAMPLE: The Samsung Guru is a fantastic brand from Samsung for those with low incomes looking for a cost-effective but highly capable mobile phone.
The Samsung Galaxy series is a fantastic smartphone option for contract workers, executives, senior managers, and professionals designed for both male and female consumers.
The segment includes: degree of loyalty, personality, benefit of sought and user status
DEGREE OF LOYALTY: Soft and hard core loyal with some switchers
PERSONALITY: Ambitious, determine and trendy
BENEFIT OF SOUGHT: High quality, Perception of trendiness, User friendly
USER STATUS: New user, potential user and regulars users
This segmentation includes: social class and lifestyle.
SOCIAL CLASS: Middle class and Upper class
LIFESTYLE: Explorer, mainstreamer, successful and reformers.
Targeting OF Samsung
Samsung products are available in different countries throughout the world. The company uses a variety of business tactics to reach a diverse customer base. Samsung has been actively involved sales and services that are related to business sales. Samsung uses distributors to sell its goods. They are having a national, territorial, and regional distributors. Different distributors are given a variety of distributorship rights. Samsung uses e-commerce and internet sales platforms.
Samsung’s mobile division’s target market includes;
✔ Teenagers who are attractive, modern, and fashionable as well as socially engaged.
✔ Regular mobile phone consumers who want a device that is affordable and easy to use
✔ Larger organization
✔ Universities and secondary schools.
✔ Entrepreneurs, executives, and professionals
✔ Government institutions, such as those in control of public utilities and safety.
Success Strategy OF Samsung
Samsung followed following strategies to become successful:
✔ Samsung’s focus on customer-oriented innovation is the main factor explaining why it had greater success than the majority of other consumer electronics and smartphone firms
✔ They decided to spend a lot of money on R&D and technological innovation
✔ Invested a lot of money into product development and design
✔ Some of Samsung’s products are well-designed, and some of them offer high-quality cameras.
✔ Team of designers collaborates with the company’s engineers, manufacturing teams, and marketers to produce new products.
✔ Samsung maintains social profiles on all of the major social networks, including Facebook, Instagram, YouTube, Twitter
MARKETING MIX (4PS) OF Samsung
1. PRODUCT STRATEGY: Samsung
Samsung specializes in all areas of product diversification, generating income from the sale of smartphones, home appliances, computer & IT, television & AV, sound devices, etc. Samsung’s product are divided into following categoriez:
- Galaxy Buds
TV & AV:
- TV by size
- TV by Resolution
- Sound Devices
- Vacuum Cleaners
- Air Purifiers
- Air Conditioners
- Cooking Appliances
Computer & IT:
- Gaming Monitors
- High Resolution Monitors
- Curved Monitor
2. PRICING STRATEGY: Samsung
Samsung dominates the market for smartphones, home appliances, and other electronic devices. Samsung follow two pricing strategies to become successful: Skimming price strategy and Pricing based on competition
Skimming Price Strategy:
Samsung usually charges a little bit more when releasing products with new features and capabilities. (This is referred to as the Skimming Price Strategy.) On the other hand, when a competitor manufacturer introduces a smartphone with the same or better features, Samsung lowers the price and easily avoids losing market share, as a result of the competitor’s launch.
Competitive Pricing Strategy:
Samsung uses a strategy for charging a price that compares to the competition. (This is referred to as the Competitive pricing Strategy). Samsung is recognized for adopting a competitive pricing policy. This indicates that Samsung sets its product prices as retaliation for its competitors. By setting its prices slightly lower than those of its competitors, it is able to attract a major share of the price-sensitive moderate customers.
3. PLACE & DISTRIBUTION STARTEGY: Samsung
Samsung sells directly to retailers and service providers. Only service dealers are in charge of corporate sales as a result of this strategy. The distribution network of this company is its main strength.
The distribution of Samsung’s products is also handled by a single distributor in one place, which then distributes them further.
4. PROMOTION STRATEGY: Samsung
Samsung advertises in a variety of ways. It believes in attracting customers through advertising while also employing advanced techniques to increase sales promotions.
Samsung makes multiple offers and discounts to encourage its business partners to sell Samsung over competing brands,
They markets new products through print media, social media, and digital media. The brand has engaged numerous celebrities to serve as brand ambassadors and sell the effective product in celebrities’ large followings.
Samsung is known for its high-quality products and positive user experiences, but it is also well-known for being a major event sponsor. During national holidays, Samsung offer significant discounts.
FINANCIAL MARKET STATEMENT: Samsung
Samsung’s brand includes a variety of products including smartphones, home appliances, computer and IT. Samsung’s financial market got it’s success mainly from smartphones.
Samsung became the leading smartphone seller in the first quarter of 2021 after selling 76.5 million smartphones globally. Samsung surpassed Apple, its main competitor, by 24.1 million units. However, Samsung did experience growth from the first quarter of 2021 to the first quarter of 2019 of 382.61%.
Total Income of Samsung: In 2021, 39.9 trillion KRW. Samsung’s market valuation as of November 2022 is $310.74 billion. According to research, this ranks Samsung as the 24th most valuable company in the world by market valuation.
Samsung MARKET SHARES
Samsung was able to ship nearly 60 million smartphone products in 2022, earning a 22% market share worldwide. This indicates that Samsung phones are used by about three out of ten smartphone users globally, placing Samsung second among the most popular smartphone manufacturers.
FINANCIAL MARKET GRAPH: Samsung
As a conclusion, it could be stated that Samsung’s smartphones provide opportunities in the market. However, the business needs to concentrate on its unsuccessful products, such as the Note series, and Samsung’s smartphones should emphasize technical advancement. However, Samsung falls short in several areas since Apple has the highest rate of customer satisfaction; as a result, the corporation must concentrate on increasing customer satisfaction in order to get a competitive edge in the market. Although, The brand will continue to enjoy the attention of many customers who are loyal to Samsung smartphones.