MKT420 Marketing MIX- Samsung PDF

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ASSIGNMENT...

Description

PRINCIPLES AND PRACTICE OF MARKETING MKT420

GROUP ASSIGNMENT 3

TITLE: MARKETING MIX/4P

PREPARE FOR:

MADAM NOR FAZLIN BINTI UTEH

PREPARE BY: NUM

NAME

MATRIC NUM

1

NURUL ALIAH BINTI SALEH

2020144859

2

FARAH NASUHA BINTI SABARUDIN

2020760237

3

NURUL AZRIN BINTI SALEH

2019689278

4

MUHAMMAD AFIFI BIN MOHD ROSLAN

2019450558

DATE OF SUBMISSION: 30 JANUARY 2021

TABLE OF CONTENT

No.

Content

Page Number

1.0

Introduction / Background of The Company

1-2

2.0

Product Strategy

3-8

3.0

Pricing Strategy

9 - 10

4.0

Promotional Strategy

11 - 14

5.0

Place/Distribution Strategy

15 - 17

6.0

Recommendation

18

7.0

Conclusion

19

8.0

References

20

1.0 INTRODUCTION In this assignment, we will focus about the marketing strategies of Samsung Electronics Co. Ltd. in the consumer market. As one of the world’s largest producers of electronics devices, Samsung electronics started out primarily as a low-tier manufacturing brand with cheap consumer impression. We are going to analyses the marketing mix by Samsung such as product, price, place and promotion. There is a most important element and also the core in marketing mix strategies. At the end of this research, we will be able to learn more about how Samsung does its marketing activities to overcome the highly competitive environment and remains as the global electronics powerhouse among its competitor such as Apple. The goal of doing this analysis is to help us to find out what actually is marketing and how Samsung manages to remain as the strongest brand in the highly competitive environment and to be different among all other competitors with different strategies, plans and ideas.

1.1 COMPANY HISTORY Samsung is a South Korea company that manufactures electronic products. Samsung specializes in electronic industry and the products including mobile, home appliance, laundry, TVs, refrigerators, Storage, and computer. In this era, Samsung has become one of the most recognizable names in the world.

The history of the Samsung starting on March 1938 when Lee Byung Chul founder Samsung as a grocery trading store. He begins the business by selling noodles and other product made in around the city and exporting to China. After that, he extended his company into textiles after the Korean war. During the 1970s, Lee Byung Chul extended the company into garment manufacturing processes to encompass the entire production chain.

In 1969, Samsung first entered the electronics business. The first products are black and white television. After that, during 1970s, Samsung started selling home electronic product. The company became big and was a major manufacture in Korea at that time.

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Samsung’s technology firms grow exponentially in late 1970s and early 1980s. Samsung Data Systems was founded in 1985 to support the growing demand for systems production for organizations. That helped Samsung become a innovator in services in information technology.

For high technology companies, the beginning of the 1990s faced huge challenges. Although rivalry and restructuring prevailed, mergers, coalitions and buy-outs became widespread. Samsung has been forced to reconsider the distribution of hardware and services. Company continued to circulate between nations and businesses across borders. Through refocusing its corporate plan to properly respond to consumer demands, Samsung Electronics made the most of the changes.

In the 2000s, the Samsung Galaxy smartphone series was born, which quickly became not only the brand's most praised product, but also consistently topped the annual lists of the best-selling smartphones in the world. Since 2006, the company has become the top-selling global TV producer. Starting in 2010 with the introduction of the Galaxy Tab, the Galaxy series expanded to tablet computers. Samsung continues to maintain its status as the "world's best" technology provider until present. In their respective industries, their professionally qualified staff tend to aspire to excellence, making the whole company a huge success.

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2.0 PRODUCT STRATEGY The customer refers to the products or services sold by a corporation to the consumer. A business should be satisfied with the current customer demands. Or a brand can be so compelling that consumers know they need to get it and build a new market. Marketers need to understand the life cycle of a commodity to be successful, and business executives need a plan to deal for products at any stage in their life cycle. The type of product also defines, in part, how much it can be charged by companies, where they can position it, and how they can sell it on the market.

2.1. SIGNIFICANCE OF THE PRODUCT TO CONSUMER AND MARKET Samsung has many products for their customers such as mobile, TVs, home appliances, displays, and storage. As known, Samsung is globally recognised, the key products of the Samsung brand are smartphones. Basically, phones are the essential thing for us to connect today. By having one device, people use it to call, text, or take photos. Samsung manufactures various kinds of smartphones for their customers. Smartphone is the items that have a high demand in the market. This is because there are many competitors that also trying to compete with Samsung such as Apple, Huawei, Oppo and others. This shows that smartphone is a hot item selling product in this Era. We can see that Samsung provides all that our generation needs and demands. They are selling their product at an affordable price so that everybody can get their own phones. Samsung also provides different styles and specifications for its products.

Product by Samsung - Smartphone

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2.2. TYPE OF CONSUMER PRODUCT Samsung's type of consumer product is a product for shopping. Before deciding to purchase the products, consumers need to prepare or check carefully. This is because other branding products might offer the product with the same specification but have the lowest price are possible. Prior to making a buying decision, consumers may spend more time collecting details and comparing suitability, consistency, price, and design. This is because smartphone is not a convenience product that consumers can buy easily. The price a bit expensive and need to consider with their budget.

2.3. SPECIFICATION OF THE PRODUCT BRANDING The specification of the Samsung smartphones is they a using the Galaxy Series to introduce their smartphone brands. The Samsung GT-I7500 Galaxy, launched in 2009, was the first Samsung galaxy introduced by Samsung. Samsung then launches several Samsung Galaxy series with a separate specification that is ideal for its consumers.

Galaxy M Series

Samsung Galaxy A Series

Galaxy Z Series

Samsung Galaxy Note Series

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Samsung Galaxy S Series

2.4. BENEFIT AND FUNCTION

Smartphones are the friendly devices that have made it all easy with a click. Through applications, it can access the internet, perform endless things, and, of course, make calls and send text messages. Other than that, Samsung has many new features for its users as well. The new smartphone launched by Samsung is the Samsung Z Series, which can flip or fold. They also upgrade the quality of camera and battery capacity. For example, Samsung Galaxy Z Flip helps you to take phone calls quickly without leaving the task at hand, with several choices for taking a call. To answer the call on speaker mode, just swipe from left to right on the cover panel if the phone rings as you cook or multitask with your hands. All you need to do is swipe the opposite way on the cover display to terminate the call. This illustrates that Samsung is seeking to create new product technologies for its products. Other features and functions that Samsung provides its customers are below:

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2.5. PACKAGING AND LABELLING, WARRANTY PERIOD

Packaging Samsung Galaxy Z Flip

Packaging involves designing and producing the outer cover of the product. Packages now perform more important sales tasks than ever due to increase in competition and clutter on retail store shelves. Packaging attracts attention, describing the product and finally making the sales. Innovative packaging can give a company/product advantage over competitors. Samsung is very particular in packaging and labelling their products. This is because packaging and labelling products is representing the brand of Samsung. Samsung using second level packaging which is they using a box for insert the product and all the product accessories. The packaging looks more elegant and richer to attract customers to buy the product. For labelling, Samsung using Persuasive labelling. They focus on the identity of the products.

For example,

Samsung using the exclusive box for Samsung Galaxy Z Flip with labelling alphabet Z in front the box. This can capture the attention of shoppers because they are likely the first thing a customer sees, and thus give the first impression of the products. Mostly all the warranty period for the product is 1 year but they also have an extended warranty that customer can purchase separately.

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2.6. POSITIONING STRATEGY Samsung's marketing strategy is the most effective strategies as it has helped the cost-driven business change the organization and become a manufacturer of authority. Samsung Electronics has been strengthened by its huge variety of products. Any of them are Galaxy series, note series, computers, smartwatches, TV, home appliances, refrigerators, laundry, displays, cameras, memory and storage. It also offers one of the fastest service products for the customer service. It is one of the top electronics manufacturers worldwide. Many items are marked 'Samsung electronics,' which is a method that allows consumers to identify and know products easily. The brand name concept is grown over time by the company's connection with its buyers.. The phrase "The next big thing is here" brings the brand at the top of the smartphone industry. Samsung's smartphones became their brand name drivers. Customer trust has a positive link to the business brand. Samsung has no specific slogans, but for the company as a whole. For each and every product they prefer to use unique slogans. Samsung has positioned itself as a smartphone that offers highest quality products and developed fresh innovations to be more customer-oriented and creative with a view to achieving a stronger brand profile.

2.7. TRADEMARK PICTURE OF THE PRODUCTS Samsung using their logo as the trademarks of their products. customers can easily identify the product is the Samsung products based on the logo. Samsung not using any others logo to represent their products. This helps Samsung differentiate itself from the competitors. In today’s competitive world, no product can go without a trademark. The brands names tell the consumers something about product quality.

Samsung Trademark/Logo

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3.0 PRICING STRATEGY Samsung is a global leader in smartphones and a dominant player in the home appliances market. It uses two pricing schemes, the following:

3.1 SKIMMING PRICING Skimming pricing is used where a product that is new to the market or recently introduced is offered at a comparatively high price due to its uniqueness which helps consumers. The skimming price is often used for technical goods where the market for the commodity is not constant. The typical product launched with a skimming pricing plan is special to the industry, has buyers who are willing to pay a premium for the product and are well ahead of the competition. Furthermore, due to the high price, the correct placement is obtained for the product which helps to hit the right target audience. Know that premium customers want to be exclusive and that they want items that are status icons. For example, as Samsung introduces new goods with various storage space versions, the price of the product is higher. But as other rivals launch a smartphone with the same features, Samsung reduces the price and easily stops the market share from dropping due to the launch of the rival. When Samsung Note 9 was launched on the market two years ago, its price was very high. In fact, few people could afford Samsung. As time progresses, costs for Samsung Note 9 have steadily declined, so that many consumers can afford Samsung today. Samsung S21 was launched on the market a few days back. Before that, Samsung's note 20 was introduced. All of these phones were sold in huge numbers and at a very high price. In reality, after long debates and reviews about the quality and price of the handset, people opted to wait until they were able to buy a Samsung note 20. Presumably, the price of current Samsung Notes 20 will decline sharply in the coming year.

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3.2 COMPETETIVE PRICING Competitive pricing sets the price of a good or service on the basis of what competition costs. Recently released Samsung 8+ is the best example of this, offering iPhone X competition at a comparatively cheaper price. Previously, the GalaxyS6 and Galaxy S6 Edge prices were both compatible with iPhone and iPhone 6+

Price Compatible with iPhone 6s and Samsung Galaxy 6

What we can see from the figure 1 is, Samsung offered superior features and played cost competitiveness to make the market. Pricing is extremely important for a company as it means that the company expresses to customers the importance that it attributes to the commodity. This is especially true in situations where buyers use the price range to judge and decide on the worth of a single good. As such, pricing is a crucial selling factor as it expresses the consumer demand and quality value of the product being launched in the business.

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4.0 PROMOTIONAL STRATEGY Promotion is one of the importing segments in the 4ps of the marketing. Every company will used promotion to increase their product potential in marketing. Samsung is one of the companies that use promotion to make their product in trend and all knows about their product. As we know, when others say about Samsung, their will thing about super sophisticated smartphone. Generally, others knows that fierce competitors of Samsung are Apple, but that does not make Samsung discouraged to compete in this current market.

4.1 ADVERTISING Advertising is a paid non personal presentation paid by companies or sponsors, meant to promote ideas, goods, or services. Almost every companies used advertisement as their biggest promotion to promote their product or services. Same goes to Samsung, they used advertising to encourage people in the world to buys their product. In marketing, there were two type of advertising which is institutional advertising and product advertising. Samsung was clearly more used product advertising to promote their product. Samsung had an effort to sell their product and start to target to a channel members or final consumer. They promote the benefits of a specific of their product. Types of their product advertising are:

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Pioneering advertisement

Samsung create an interest advertising designed to stimulate primary demand for their new product. Samsung was used advertising features of the new Samsung Galaxy Z Flip in the market to make an introductory stage of product life cycle to promote their new product.

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Comparative advertisement

All people knows that Samsung biggest rival is Apple that produce the same type of product that Samsung produce which is smartphone. Samsung once produce an comparative advertisement that compare their product with Apple product. In that advertisement, they claim Apple are not up to date with regards to changes in technology while Samsung offers new phone that are updated with changed in the technology.

4.2 PUBLIC RELATIONS Public relation is an effort to build a good relationship between the company and various public. Samsung was established in 1938 which 83 years ago and of course they have many public relations with various public. With the public relations, Samsung can expand the platform to introduce their product.

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Press Relations

Usually, every time that Samsung produce new model of smartphone, they will give information that placed in news media to attract attention to their product. Normally they will make an event to release their new product. They will invite various media such as reporter of news, magazine, newspaper and also a youtuber to come to their launching event. This is just to gain coverage in media. They also do a press conference to introduce the new function or new update on their product.

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Product Publicity

Samsung usually used product publicity to publicize specific their product to the market. Samsung make a collaboration with BTS and Blackpink because both groups have a huge and loyal fans club in entire world. So, Samsung make a collaboration with BTS and Blackpink to attract people especially their fans to buy Samsung’s product. For example, collaboration with BTS which is Samsung Galaxy S20+ 5G BTS Edition comes with a smartphone that complete with BTS theme and, they get a photocard each of the members of BTS. This tactic will make the fans want to buy the smartphone. This product publicity tools will increase the marketing potential of Samsung.

4.3 SALES PROMOTION Samsung conduct various promotional activities to promote their product. It would encourage people to experience their types of smartphone. They also provide free gift, coupons, samples and so on.

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Free Gift

Samsung was held an event which is Merry Gifting in conjunctions of Christmas. On the event, whoever buy selected smartphone, they will get a free gift which is a smartphone too. This will attract people to buy at this event period. This sales promotion can be verry effective. 13

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In-Store Promotion

There were many store that sales Samsung smartphone. Samsung usually used this promotion to gains the encouraging responds from the consumers. There are many promotional activity that retailer do such as give free gift, discount and so on. Some of the phone plan which is maxis, celcom was take an advantage to make a deals with the combination of their plan and Samsung smartphone. For example, Maxis was make an deals which is zer0lution360, customer will get the set of phone and the plan.

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5.0 PLACE/DISTRIBUTION STRATEGY Place or distribution decision is a part of the bigger supply chain management. Channel level contains of consumer marketing or the industrial marketing channel. Firms basically need to choose how they want to sell their product to consumers. An element corporate among both channel level is that both include the producer as well as the end consumer. The process of distribution of products to end-users is known as downstream activities.

Flow of distribution channel

5.1 STRATEGY USED FOR ITS MARKETING INTERMEDIARIES Marketing intermediaries is an independent firms which assist in the flow of goods and services from producers to end-users. Play as an important parts of the product distribution channel. Alike as other company, Samsung has two channel which is indirect and direct distribution channels.