Samsung and The Strategy PDF

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Summary

Samsung 4PS marketing is great but not enough, it needs improvements....

Description

TOPIC 2 ECO WRITING PROJECT Group members: Ho Ngoc Ha, Nguyen Ngoc Chau Anh, Vu Thi Thuy Tien, Nguyen Quang Minh, Do Hoang Minh

Contents I.

INTRODUCTION.................................................................................................................2

II.

MAIN PART...........................................................................................................................2 A.

Product Differentiation....................................................................................................2 1.

What Is Product Differentiation?................................................................................2

2.

Types of Product Differentiation.................................................................................4

3.

Why is product differentiation important?.................................................................6

B.

How Samsung differentiates its product from its competitors......................................8 1.

About Samsung.............................................................................................................8

2.

What’s make Samsung differents from its competitors.............................................9

3.

Samsung vs Chinese competitor.................................................................................15

C.

The impact of new competition on Samsung’s financial performance....................17 1.

An overview of Samsung Company............................................................................17

2. The impact of Chinese and other Competition on Samsung’s financial performance.........................................................................................................................18 3.

Conclusion...................................................................................................................22

D. Marketing strategies that samsung should consider in reaction to apple and new chinese competition................................................................................................................22 1.

Product.........................................................................................................................22

2.

Price..............................................................................................................................25

3.

Place.............................................................................................................................25

4.

Promotion....................................................................................................................26

5.

Conclusion...................................................................................................................26

E.

New strategy for samsung..............................................................................................26 1.

Overview about samsung’s 4ps marketing strategy.................................................26

2.

Samsung failed in africa.............................................................................................28

3.

New 4ps strategy for samsung....................................................................................30

III.

CONCLUSION.................................................................................................................31

IV.

REFERENCES...................................................................................................................31

PAGE 1

I.

INTRODUCTION

The markets are becoming more crowded and bustling than ever, and customers are overwhelmed with an ocean of choices. That is why, for firms with a long-term ambition, differentiating from the competition has turned critical. There are two ways for a company to differentiate itself from its competitors in the market: cost leadership and product differentiation. In this paper, we focus on product differentiation as a great way to reinforce brand positioning and word-of-mouth marketing methods, as well as gain more devoted customers. In a crowded field of competitors, the consumer will choose one brand or product over another based on product differentiation. It identifies the characteristics that distinguish one product from similar ones and leverages those distinctions to influence consumer choice. In this paper, you will comprehend what product differentiation is, why it is an important marketing strategy, the various types of product differentiation, and how to differentiate your product in the marketplace. As a result, making a difference between products to be able to compete and maintain their position in the international market is the top aspiration of tech giants such as Samsung and Apple. Samsung is a well-known electronics company that dominates the smartphone and tablet markets. Despite fierce competition in the smartphone and consumer electronics industries, Samsung has remained the market leader thanks to its focus on technological innovation and competitive strategy. In this essay, we will identify and analyze new marketing strategies that Samsung should consider in reaction to Apple and new Chinese competition. Furthermore, we also suggest a new effective strategy for Samsung to grow in popularity and sales.

II.

MAIN PART A.

PRODUCT DIFFERENTIATION 1.

What Is Product Differentiation?

Product differentiation is a marketing strategy used to set a company's products or services apart from those of its competitors and give the customers the reason why they should choose this business over others while emphasizing the distinctions between that product or company and its competitors. When done effectively, product differentiation creates a competitive advantage because customers perceive a product to be superior to alternatives. It also acts as a stimulant in the decision-making process of a buyer.

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Consumers' attention to one or more main attributes of a product or brand that make it a better choice than similar products or brands is what drives product differentiation. You do not have to start from the beginning if you want to differentiate your company. A new additional feature or capacity could be what makes your product unique. Alternatively, your product could have fewer features than competing items, focusing instead on a basic, streamlined experience. Price, packaging, quality, customer service, and therefore the whole consumer experience when buying or using your product are all differentiators. For example, a cosmetic company might offer an online tool to assist customers in selecting the appropriate foundation colour. A tennis shoe manufacturer may allow customers to customize their shoes by selecting the color of each component. Customers are more likely to spend more on things that provide a one-of-a-kind, valuable experience. A product differentiation strategy should show that a product has all of the features of competing options, plus exclusive benefits that no one else provides. Product differentiation example: “In the 1983 movie, A Christmas Story, nine-year-old Ralphie Parker wants a BB gun for Christmas. But Ralphie doesn’t want just an ordinary BB gun. He wants a "Red Ryder carbine-action, two-hundred-shot Range Model air rifle with a compass in the stock and this thing which tells time." Of all the BB guns that Ralphie could have asked for, what was different about the Red Ryder gun? What made it rise above the competition and stand out? During the Great Depression when other companies were closing their doors, Daisy Outdoor Products, the makers of the Red Ryder BB gun, managed to not only survive but to prosper. As the depression continued, Daisy learned that colorful and fun advertising aimed primarily at children combined with innovative promotions kept the company operating at full capacity. Some of the creative advertising and promotions that Daisy devised included: The option to trade in old models for new models at a discounted price Tie-ins with popular comic strip, radio, and movie characters like Buck Rogers and the cowboy Red Ryder Color “handbooks” that included loading and firing instructions, a Daisy product catalog, and comic strip stories.

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Color posters suitable for hanging in your room. These types of promotions made Daisy air rifles very popular and must-have gifts for Christmas. By 1949, the Red Ryder BB gun was so popular that it sold one million units in a single year, an amazing sales figure for the time. The importance of product differentiation for Daisy Outdoor Products was the difference between going out of business or thriving during the worst economic downturn of the 20th century.” Companies that make product differentiation work for them have the following elements:    

Innovative The resources to create high-quality products or services A strong research and development team Marketing and sales strategies that communicate the benefits and competitive advantage of the product or service

A business’ differentiation strategy will be determined by its industry, competitive market, and the products or services it sells. 2.

Types of Product Differentiation

Ideally, a product differentiation strategy should demonstrate that the product can perform all of the functions of competing options while also providing a unique benefit. Below are three distinct categories:  Vertical differentiation Vertical differentiation occurs when buyers evaluate their options from best to worst supported an objective metric like price or quality. While the metrics are objective, the worth placed on them by each consumer may differ. For example, one restaurant meal may have fewer calories than another. The lowercalorie lunch may be a "better" alternative for a consumer who is controlling their weight. Another client may place a bigger importance on pricing, choosing the higher-calorie meal if it's less costly . Other Examples: - Choosing Dior instead of any biores because its brand is well known, therefore better. - Preferring Effralgan over generic ibuprofen because they are stronger and your headache will go away faster.

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- Picking Energizer over other Alkaline batteries with the perception that they last longer.  Horizontal differentiation Horizontal differentiation is when customers choose between products subjectively, as they have no objective measurement to distinguish between the best and the worst. For example, there's no thanks to rank frozen dessert flavors qualitatively. It's simply a matter of personal preference whether you choose chocolate, vanilla, or strawberry. When the majority of products on the market are priced similarly and share many of the same characteristics or attributes, the purchase decision is based on personal preference. Other Examples: -Favorite Pepsi over Coca Cola as you perceive the latter to be too sweet for your sugar level tastes. -Going for Miss Dior perfume instead of Chanel No5 because it has a mild smell. -Ordering Strawbery instead of Coffee ice-cream flavor because you don’t like the taste of coffee.  Mixed differentiation When making more complicated purchases, customers tend to employ a combination of vertical and horizontal differences. Let's pretend you're in the market for an automobile. Consider two similar-priced fourdoor vehicles from two different manufacturers. To make a choice, you'll presumably employ mixed differentiation. Gas mileage and safety rating are two objective metrics which will be wont to separate them vertically. Horizontal differentiation, or the excellence between subjective preferences like design aesthetic and brand image, also plays a task within the selection. Each consumer will value the combination of these qualities differently, just as they will value horizontal and vertical distinctiveness separately. Other Examples: - Vehicles of the same category and similar price points from two distinct manufacturers. - Purchasing an Android over an iPhone, considering advanced features that Android possesses and Android’s possibility of personalization.

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- Ordering on Lazada instead of physically visiting the retail store as you don’t want to leave the house. In addition to three types of product differentiation, there are several factors to distinguish your merchandise or service from others.  Price Product pricing can make your product outstanding from the competitors. Providing highquality service at a lower cost than others is an excellent method to attract new consumers. Price can be used to differentiate merchandise in two ways. Costco is an example of a company that can charge the lowest price relative to competitors to attract budgetconscious customers. High costs, on the other hand, can signal quality and that a thing is a luxury or high-end item, such as Lamborghini.  Performance and Reliability Products can be distinguished according to their dependability and durability. Some batteries, for instance, are said to have a longer life than others, and people will purchase them because of this. Besides, purchasers prefer to spend their money on reliable products since they are less likely to malfunction or go wrong within the given warranty.  Location and Service Local firms can set themselves apart from larger national competitors by emphasizing their commitment to the community. For example, a local restaurant will hire locals and acquire its food and materials from local farmers and purveyors.  After-sale services This element influences how a customer perceives an item. It also builds consumer trust in the brand and deepens their relationship with the product's manufacturer. 3.

Why is product differentiation important?

In a number of industries, the entrance barrier has decreased dramatically in recent years. As a result, competitive products have increased significantly in these areas. Differentiation is a fundamental requirement for an item's survival in a rising crowded competitive market. The purpose of product differentiation is to get a competitive advantage or to distinguish your merchandise from competitors. To put it another way, you don't simply want to stand out from the crowd; you want to rise above it.

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What does your commodity or service do/accomplish/offer that the competitor does not? Product differentiation assists your company in answering this question and focusing on the distinct value a product provides to its users. If no effort is made to differentiate items, they risk blending in with a sea of competitors and never gaining the market traction they require to stay afloat. The target is to demonstrate to potential customers what you have to offer that other firms do not—and why it is significant to them. Competitive advantages can be divided into some sections: benefits, target audience, added value, competition, and brand loyalty.  Benefits Benefits are the values a customer gains when they purchase your product or service. They're not the same as features, which are the capabilities of your product. Customers are more interested in benefits than features, which is why businesses generally focus on features. Product differentiation highlights the distinct advantages of your goods or services. That's why it's critical to explain why your product is superior to the competitors in terms of quality, pricing, or memorable experience. We can also mention economic benefits. Product differentiation is economically advantageous to a corporation. It provides a reason for consumers on why their product is worth investing in, as against all the opposite substitute products available within the market. A successful differentiation campaign increases sales by an outsized margin and provides a corporation a competitive advantage within the market by demonstrating why they're more deserving of a consumer's investment than the competition.  Target audience The distinct advantages of your product should correspond to a determined target audience's interests, needs, and values. The differentiated benefits of your merchandise should align with a defined target audience's interests, needs, and values. To differentiate your product, consider who is probably going to shop for it, why they need it, how they need it to seem, where they need to shop for it, and the way much they are willing to pay. If you're unsure about any of these factors, conducting market research is a wonderful method to find out.  Competition

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Only by understanding what's already on the market can you differentiate your own goods. Spend plenty of time studying merchandise and services that potential customers might compare to yours. What is the purpose of a competitor's product? Who's going to buy it? Why? Where? What do they pay for it, and how much do they pay for it? Keep an eye fixed on your branding, features, size, price, and packaging to work out what you would possibly change to appeal to your target market. You have a differentiated product that gives value to customers when you link a product's benefits to what your target audience desires more successfully than your competitors.  Added value: The perceived value difference between product features, quality, and price is created via product differentiation. The customer feels as if they are saving money and receiving their money's worth when they buy anything of value.  Brand loyalty Branding can help you differentiate itself from its competitors with similar products. When a company efficiently differentiates its products, and a few crucial merchandise stands out, it usually brings out brand loyalty on the consumer’s part. This is since once a customer is satisfied with a few things from a brand, they are more likely to purchase further products from that same brand. The customer believes that the company's other items are just as wonderful as the ones they use and stand out just as much.  No perceived substitutes Paying attention to quality, design, and brand loyalty creates the perception that there is no other substitute that is suitable for purchase. And this is often great for your business. B. HOW SAMSUNG DIFFERENTIATES ITS PRODUCT FROM ITS COMPETITORS. 1. About Samsung The Samsung Group (or simply Samsung) (Korean: 삼 성 ) is a South Korean multinational manufacturing conglomerate headquartered in Samsung Town, Seoul, South Korea. It comprises numerous affiliated businesses, most of them united under the

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Samsung brand, and is the largest South Korean chaebol (business conglomerate). As of 2020, Samsung has the 8th highest global brand value. Samsung was founded by Lee Byung-chul in 1938 as a trading company. Over the next three decades, the group diversified into areas including food processing, textiles, insurance, securities, and retail. Samsung entered the electronics industry in the late 1960s and the construction and shipbuilding industries in the mid-1970s; these areas would drive its subsequent growth. Following Lee's death in 1987, Samsung was separated into five business groups – Samsung Group, Shinsegae Group, CJ Group and Hansol Group, and Joongang Group. Notable Samsung industrial affiliates include Samsung Electronics (the world's largest information technology company, consumer electronics maker and chipmaker measured by 2017 revenues), Samsung Heavy Industries (the world's 2nd largest shipbuilder measured by 2010 revenues), and Samsung Engineering and Samsung C&T Corporation (respectively the world's 13th and 36th largest construction companies). Other notable subsidiaries include Samsung Life Insurance...