Marketing activities in Samsung Company, Study Guides, Projects, Research of Marketing Research

Download Marketing activities in Samsung Company and more Study Guides, Projects, Research Marketing Research in PDF only on Docsity! 1 REPORT ON MARKETING PLAN OF SAMSUNG COMPANY IN 2022 Group 5: 1. Vũ Minh Chi - 19071321 2. Phạm Thị Như Hảo - 18071078 3. Hà Quốc Huy - 18071472 4. Nguyễn Thị Thoa - 18071236 5. Trịnh Huy Trung - 18071507 6. Lê Thị Hải Yến - 18071273 Subject’s code: INS2003 Teacher: Phạm Thị Liên 2 TABLE OF CONTENTS: Contents Executor Page I. EXECUTIVE SUMMARY Huy Trung 3 II. CURRENT MARKETING SITUATIONAL ANALYSIS 1. Samsung background Minh Chi 3 2. Competitive analysis Minh Chi 4 3. Current marketing strategy and marketing mix Minh Chi 5 4. Opportunity analysis (SWOT analysis) Hai Yen 8 5. Objectives Hai Yen 10 III. MARKETING PLAN 1. Marketing strategy Nguyen Thoa 11 2. Marketing mix Quoc Huy 15 3. Actions programs Nhu Hao 23 4. Budgets Nhu Hao 32 5. Controls Huy Trung 32 5 d. Threat from substitutes The threat of substitutes for Samsung is moderately high. There are a number of rivals, including Apple, Oppo, and other foreign and domestic firms that provide rival products and services. Customers' switching expenses are minimal. A strong brand image, technical innovation, and other related elements, such as consumer convenience, help to mitigate the danger posed by replacements. e. Level of Rivalry in the Industry The rivalry among the current players is strong. Because there are certain big brands such as Apple, LG, Oppo, etc... The market's biggest players are well-known brands, and many reasons have contributed to increased competitiveness. For growth and broader market penetration, many businesses must rely on technical innovation. 3. Current marketing strategy and marketing mix a. Marketing strategy  Product diversification The smartphone and tablet markets are both dynamic and diversified. Consumer preferences are influenced by features and specifications as they relate to price points. Some customers are ready to pay a lot of money on a high-end smartphone with a lot of features. Others might rather purchase a gadget that meets their affordability and usability needs. There are those who do not mind the price but are very particular about hardware and design specifications. Samsung caters to a larger smartphone and tablet market with a product strategy centered on product variety. The Galaxy S Series, for example, is largely aimed at high-end users. Still, the company has used the same user experience in the Galaxy A Series line to cater to mid-entry consumers, albeit with some trade-offs such as lower hardware specifications and design choices.  Technological innovation as part of the Product strategy Since the introduction of the first Samsung Galaxy device, the business has produced significant breakthroughs that have altered the trajectory of the smartphone and tablet markets. With the release of the Galaxy Note, Samsung established the phablet market: a hybrid of smartphone and tablet, and a reference to devices with larger-than-average screen sizes for smartphones but smaller-than-average screen sizes for tablets. Stylus pens 6 have also been revived in mobile computing devices with the Galaxy Note and Galaxy Tab Note series. The use of a stylus expands the capabilities and functions of smartphones and tablets. Apple, Microsoft, and Huawei are among the corporations that have followed suit. There are also extra features including a heart rate sensor, oximeter, fingerprint scanner, face recognition technology, built-in augmented reality capability, and quick charging technology. While smartphones can function without these functionalities, they offer value to the customer experience. Although Samsung was not the first to introduce these capabilities, it was able to promote their use by including them in its premium smartphones.  Promotional strategy to supplement the marketing strategy The marketing strategy for Samsung Galaxy goods also includes the employment of particular promotional methods and distribution techniques that employ a mix of push and pull methods. A corporation uses advertising and sales methods to "push" a product or concept in a push marketing campaign. Samsung accomplishes this by aggressively investing in advertising, as do The Coca-Cola Company and Nike Inc. Samsung also uses push marketing techniques such as celebrity endorsements and ad placements at key events such as sporting events and entertainment programs. The corporation has also kept profiles on social networking sites like Facebook, Twitter, and YouTube in order to buy ad space and as part of its particular digital marketing strategies. Samsung employs a pull marketing tactic as well. Through an online presence, the corporation attempts to create and maintain a relationship with consumers via social media. Samsung's social networking pages also act as a forum for conversations and announcements. Advertisements can also be used to augment the pull technique. In addition, the firm collaborates with distributors and network carriers in other countries to assist market Samsung Galaxy goods through a variety of sales promotion plans and methods. b. Marketing mix  Product 7 Being at the top Samsung releases a new model virtually every month, if not every week. The latest innovation from Samsung, the GALAXY S5, helps to enhance work productivity and security while also ensuring company continuity. The Samsung GALAXY Note 3 and Samsung GALAXY Note 10.1 (2014) editions have all the capabilities required to conduct business activities professionally. Samsung GALAXY Note-PRO lets business professionals view and manage tasks with ease.  Place Samsung products are offered in the market through a variety of channels based on the channel marketing idea, including the segments Sales and service dealers, Modern retail, and Distributors. Samsung merchants distribute their products through supermarket chains, explicitly focusing on demand and chances to increase their in- store share.  Promotions The local media is constantly updated with new product introductions and schemes from Samsung. Newspapers and the electronic media help in promoting new launches as well as in informing the consumers about Samsung products and its goals. In big cities, hoardings and posters are erected. Celebrities have been invited to attend the launch of a new product. In addition, to assist promote the brand's worldwide appeal, well-known celebrities such as Amir Khan and Priyanka Chopra have been appointed as brand ambassadors. It is typical of Samsung's promotional approach to employ about 5% of income collected from sales. Public relations, releasing new releases, publishing articles for trade periodicals, and other such activities are frequently included in promotional plans. Amir Khan was in Mumbai for the formal introduction of Samsung's new Wave and Galaxy S models.  Price Because Samsung offers a diverse range of products, it employs a variety of pricing strategies. For example, the recent release of the Galaxy Note 3 saw a surge in market demand. In such circumstances, Samsung employs the skimming pricing approach, which allows them to obtain a premium price for an item before competition enters the market. Samsung cuts the price of a product when it becomes obsolete or when it competes with other similar items. In some circumstances, Samsung will use competitive pricing techniques to outperform its competitors in the market. Nonetheless, it is worth mentioning that 10  The growth of the tablet market. The growth of the tablet market is in a negative phase for which these users will be switching to smartphones.  Acquisition of new companies. Samsung has been acquiring companies. It is ensuring its future growth. Recently, Samsung bought the audio giant Harman for $8 billion. Also, it acquired Viv, an AI platform from the makers of Siri and completed the acquisition of NewNet Communication Technologies (Canada), Inc. recently. d. Threats for Samsung  A large number of competitors. The mobile market is saturated. Samsung Galaxy has a lot of competitors in the market, the number is also growing.  Strong Competitors like Apple, HTC etc. It has strong competitors like Apple, HTC, Lenovo, and Xiaomi Mobile. It is the biggest threat to Samsung Galaxy.  Chinese Competitors are Gaining Competitive Advantages. As the Chinese companies can produce products at a low price and they can also give high quality, people are accepting those brands spontaneously.  People are Looking for Better Quality Nowadays. So, if there is any question of quality, people will be switching to the companies who give better qualities.  A Large Number of Products, Failing One will Affect Another. As Samsung Galaxy has a large portfolio, it has a high risk also. If any product does harm to the customers, it will affect the brand image and therefore, will grow a negative effect on others.  Threats of Chinese, Taiwanese, and Indian Products in the Local Market. 5. Objectives The firm has various objectives which are discussed at length in this report. One of Samsung's leading objectives is the attainment of a leadership position in the electronics industry. Currently, the firm holds the second position, facing major competition from Apple Inc., whose products have a dedicated customer base. While Apple Inc. has not diversified its range of products in comparison to Samsung, its products are known to be unique and high quality thus they are loved by dedicated customers particulary in the United States.Apple Inc. mainly manufactures mobile devices. To displace Apple Inc., Samsung Galaxy would need to device more competitive strategies than those adopted by its chief rival. The other objective that Samsung Galaxy Company pursues is the manufacture of high-quality products, and to ensure that such products are availed in the latest technology all over the world. While Samsung Galaxy has existed for many decades, 11 its determination to outdo competitors in such products varieties as household appliances has remained steadfast. For this reason, the firm has attained a significant customer base in terms of brand loyalty. Customers identify with Samsung’s brand particulary for home appliances such as refrigerators, Iron box, and television. Its makes use of the latest technology thus delivers goods based on the customers ’latest demands. For instance, when Samsung's Note 7 phone developed complications and customers started blaming the firm for developing unsafe products, the firm recalled the phone model. This brings us to Samsung' s third primary objective- manufacturing products that are both user-friendly and environmentally friendly. The recall of Samsung Galaxy Note 7 phones highlights the extent to which the giant electronics firm is willing to go to ensure its products do not cause harm to the user or the environment. At some point, many airlines banned the use of Samsung Galaxy Note 7 in their flights. The fact that the firm recalled the phone model shows its commitment to meeting its third objective. In addition, Samsung Galaxy has come up with one of the latest trends in the manufacture and use of the finest technology. It ensures that it provides its customers with products that more than meet their demands. The Smart TV, as well as the Smartphone, presents some of the latest trends in electronics. They increase a customer's ease of use thus making life easier for users. Another new trend is the inclusion of browsers on smart TV. This new development has given users a chance to get more use on one device, as well as the Smartphone, presents some of the latest trends in electronics. They increase a customer's ease of use thus making life easier for users. Another new trend is the inclusion of browsers on smart TV. This new development has given users a chance to get more use on one device, as they can now utilize the smart TV for accessing internet services too, just as they would do for laptops. Samsung is, in this regard, committed to ensuring clients receive user-friendly, high quality, and trendy products. → In conclusion, the objectives of Samsung Galaxy Company Ltd are consistent with not just the expectations of the customers but also the attainment of the firm's main goal: higher profits. Delivering high quality of goods, utilizing the latest technology, and taking a leadership position in the technology industry are objectives that ensure the firm retains customers and increases sales III. MARKETING PLAN 1. Marketing strategy 12 Since 1990s, Samsung has globalized its electronics, mainly mobile phones, which have become its major source of income. The Samsung galaxy series is one of the brand builders for Samsung and hence we are discussing the marketing strategy of Samsung Galaxy. Despite the competition from similar companies, Samsung in India is growing manifold. Samsung is a brand very common among the youth. Both, creative products and excellent service delivery provide a very personalised customer service. It presently has a strong hold on the market owing to its trusted performance in the last decade. The reason for the Samsung brand to shoot up in brand equity is the Samsung galaxy series and Android phones. Samsung Galaxy is the trademark and brand name for a series of smartphones and tablets manufactured and marketed by Samsung Electronics. The entire product line is diverse, and each product category caters to a particular sociodemographic profile. Under the brand, there are smartphones designed and marketed specifically for high- end consumers, business users, and power users, while other models target entry-level, younger, and budget-conscious consumers. Some appeal to consumers who prefer bigger display screens. Others appeal to those consumers in search of premium built quality. a. Product strategy by disversifying the Samsung Galaxy brand. Some would say that Samsung has been saturating the market and confusing consumers by introducing different smartphone and tablet devices under the Samsung Galaxy brand. Some criticized the company for employing repetitiveness in feature and design considerations. For example, there are some similarities between the Galaxy S Series line of premium devices and the mid-entry A Series or the discontinued entry-level Galaxy J Series. These product lines share some similarities in design aspects and hardware capabilities. Furthermore, with a few exceptions, all three have phones built with AMOLED display technology, which is a feature initially reserved for high-end Samsung products. It is easy to assume that focusing on fewer products is more effective and efficient than manufacturing and marketing several and almost similar products. But product strategy through product diversification is actually central to the marketing strategy of 15 In a push marketing strategy, a company “pushes” a product or idea through advertising and sales strategies. Samsung does this by investing heavily in advertising, just like The Coca-Cola Company and Nike Inc. This is evident from ads coursed through traditional mediums such as print and broadcast, and digital mediums such as social media. Samsung also does push marketing using celebrity endorsements and spot placements on major events, including sports and entertainment shows. The company has also maintained accounts in social networking sites such as Facebook, Twitter, and YouTube to purchase ad spaces, and as part of its specific digital marketing initiatives. Take note that Apple does not invest heavily in traditional advertising and other marketing communication channels. Instead, the company focuses more on a pull marketing strategy in which consumers are pulled or drawn to Apple products and services. The idea behind a pull marketing strategy is to create a strong brand image and establish a loyal customer following. Samsung also does some sort of pull marketing strategy. Using social media, the company tries to build and maintain a relationship with consumers through an online presence. The social networking accounts of Samsung also serve as a venue for discussions and announcements. Even advertisements also supplement pull strategy. The company also partners with distributors and network carriers in other countries to help it distribute Samsung Galaxy products through varied sales promotion strategies and tactics. Under the subsidy and contract arrangements of network carriers, consumers can purchase a Galaxy product at a cheaper or easy-to-afford deal. Samsung also offers discounts to trade partners to motivate them to distribute Galaxy products above the competition. Maintaining relationships with network carriers and distributors allows Samsung to ensure that its Galaxy products remain visible in the market and accessible among its target consumers. This helps in pulling further possible buyers because of visibility and sustained presence. The push and pull strategies work simultaneously for the Samsung Galaxy brand. These two are complementary. Whenever Samsung rolls out advertisements, the company pushes its products. Barraging the public with marketing messages will definitely stir interest while maintaining presence and proximity allows it to ensure that its products are visible and accessible. 2. Marketing mix 16 This report discusses Samsung's marketing mix. The marketing mix is made up of the following elements: product, place, price, promotion, process, people, and physical proof. This tool is used by marketing professionals. The marketing mix has a big impact on what services and goods are available. Samsung's Marketing Mix also examines the company's brand and product offers. These seven marketing mix components should be viewed as a single entity that supports and complements one another. Now we'll talk about Samsung's marketing of Galaxy S series. a. Product of Samsung Galaxy S series - Today, the Samsung Galaxy product line is progressively diversified to satisfy the demands of a larger variety of consumers in order to reach out to a larger variety of consumers. From high-end Samsung Galaxy product lines that cater to professional phone users to more affordable Samsung Galaxy product lines that cater to customers' fundamental needs. True to the company’s slogan “A Galaxy for everyone “. - Samsung's current Galaxy product lines are shown below: - Samsung Galaxy S series + Samsung Electronics produces a line of high-end Android mobile handsets known as the Galaxy S series. The range, which includes the Samsung Galaxy Note, serves as Samsung's flagship smartphone model. The first device in the series, the Samsung Galaxy S, was launched in March 2010 and went on sale in June of that year. With the unveiling of the Galaxy Tab S in June 2014 and its release the following month, Samsung expanded the Galaxy S series to include tablet computers. The Samsung Galaxy S21 series, which was initially introduced in January 2021, is the most recent smartphone in the Galaxy S series as of January 2021. + Samsung Galaxy S series product line include: Galaxy S, Galaxy S2, Galaxy S3, Galaxy S4, Galaxy S5, Galaxy S6, Galaxy S7, Galaxy S8, Galaxy S9, Galaxy S10, Galaxy S20, and the latest product line today is Galaxy S21. + Samsung announced the Samsung Galaxy S21 series, consisting of the Samsung Galaxy S21, Samsung Galaxy S21+ and Samsung Galaxy S21 Ultra, on January 14, 2021. These smartphones do not feature expandable storage since the Galaxy S20 series and is one of the first S Series Lineup to feature 5G models only during launch. 4G variants of the Samsung Galaxy S21, S21+ and S21 Ultra may come in a later date. Samsung Galaxy S21: •Screen Size: 6.2" 17 •Weight: 169g •Processor: 8 core CPU •Maximum speed: 2.9GHz •Highest refresh rate: 120Hz •Camera: 12MP Wide Angle Camera, 12MP Ultra Wide Angle Camera, 64MP Tele Camera, up to 30X Zoom, 10MP Front Camera •Battery: 4000mAh •Memory: 256GB/128GB •S Pen support: No •Dimensions: 71.2x151.5x7.9mm Samsung Galaxy S21 Plus: •Screen Size: 6.7" •Weight: 200g •Processor: 8 core CPU •Maximum speed: 2.9GHz •Highest refresh rate: 120Hz •Camera: 12MP Wide Angle Camera, 12MP Ultra Wide Angle Camera, 64MP Tele Camera, Up to 30X Zoom, 10MP Front Camera •Battery: 4800mAh •Memory: 256GB/128GB •S Pen support: No •Dimensions: 75.6x161.5x7.8mm Samsung Galaxy S21 Ultra: •Screen Size: 6.8" •Weight: 227g •Processor: 8 core CPU •Max speed 2.9GHz •Highest refresh rate 120Hz 20 •Shopee: https://shopee.vn/shop/65589552/search?page=0&shopCollection=17962580 •Tiki: https://tiki.vn/dien-thoai-samsung-galaxy-s-series-chinh-hang-gia-tot tiki/c44308?seller=1&page=1&brand=18802 Above are three e-commerce platforms with genuine stores distributed in Vietnam. d. Promotion of Samsung Galaxy S series - When it comes to establishing a succession of rumors and controversies in the community, Samsung's media marketing approach for the S21 product line is incredibly effective at building a solid product launch momentum: •Begin by criticizing the iPhone while removing the charging pin and then removing the charging pin together in order to create a ripple effect in the community. (https://vtv.vn/cong-nghe/samsung-xac-nhan-loai-bo-sac-va-tai-nghe-tren-cac-mau- smartphone-tuong-lai-20210118174250808.htm) •The second is sending out tweets marketing items using iPhones, which has sparked outrage and controversy, but Samsung has succeeded in informing the world about its future S21 series device. (https://vov.vn/cong-nghe/tin-moi/samsung-dang-tweet-quang-cao-galaxy-s21-bang- iphone-830549.vov) - Samsung also sends out items ahead of time for review to a number of well-known KOLs throughout the world via the world's largest video channel, Youtube. Produce the desired outcome for the company's products. Proof of that popularity is the fact that Samsung's launch event “Galaxy Unpacked” has racked up over thirty-four million views on youtube. (https://www.youtube.com/watch?v=TD_BZN0bn_U) - In Vietnam, distribution retailers are promoting the Samsung S21 series by offering a variety of appealing promotions such as headphones, wireless chargers, cases, and so on. 21 (https://cellphones.com.vn/sforum/toi-mai-cellphones-se-to-chuc-offline-trai- nghiem-va-tra-hang-galaxy-s21-series-dau-tien-tren-the-gioi) Invitation to participate in the event to distribution channels, KOL, ... 22 - Samsung made a wise decision when it came to promoting items to clients through multimedia communication. - Furthermore, Samsung understands how to gratify customers when it introduces a new phone collecting mode with a very attractive price and the capacity to innovate quickly. When you may bring it immediately to a Samsung service facility or pick it up and renew it at home. 25 Besides the special version, Samsung also signed an advertising contract with BTS, by the end of 2020 introduced a number of new product lines such as Samsung Galaxy Note 20/Note20 Ultra 5G, Galaxy Z Fold2 5G, Galaxy S20 FE... 26 With a large and worldwide fanbase, the combination of Samsung and BTS has reached a large number of young users who are fans of BTS, as well as their friends and relatives. According to research firm IDC, the top five companies control 71% of the global smartphone market in 2020, up from 54% just five years earlier. Samsung had a 21% market share last year, followed by Apple with 16%. It was the strong influence of BTS that partly pushed the public's attention to Samsung's Galaxy S20 series at that time.  Following the cooperation with the global boy group BTS for the period of 2020-2021, in 2022, Samsung continues to renew the representative contract with BTS, promising fans many new and exciting events. 27 In the positive direction of the worldwide COVID-19 pandemic, the event: "Connecting fandom, connecting the world" promises to make. Event activities:  Will Release an upgrade for Samsung Galaxy S20 + BTS Special Edition, upgrade sound, picture quality and camera...  Looking for a Game company, cooperate to create an exclusive App Game about BTS pre-installed on the device, to attract fans.  In conjunction with BTS's management company, Bighit Music, will release a number of products for fans such as: cards, postcards, keychains, acrylic standees, t-shirts, hoodies, ... with the quantity 100+ products.  Pop-ups open at branch stores in about 50 major cities worldwide (Seoul, Newyork, Tokyo, LA, Paris, London, Hanoi, Ho Chi Minh City, …) where fans can come see the mixes and own them. At the pop-up, there will be phone sales with combination products, in addition to holding minigames, give-aways for fans. In case the COVID-19 epidemic becomes stressful, switch to online pop- ups. Some pictures at the pop-ups that were successfully organized by Bighit Music company before: Hyundai X ae 21 Earth Day 31 Through the cooperation with BTS, brands and companies have significantly increased revenue. For example, on May 27, 2021, 10,000 BTS meal x MCDonald's were sold out on the first day of sale in Vietnam, even though the meal cost 117,000 VND. According to the revenue and percentage contribution chart of factors contributing to the growth of the Korean economy collected by Statista in 2018, BTS contributes 0.3% of the country's GDP, which is the only independent factor among a series of large corporations.  Thereby showing us the extremely high potential of this collaboration with the global boygroup BTS. 32 4. Budgets Expected budgets: Capital: $1,000,000 - Producing phones and software: $400,000 - Advertising contract: $100,000 - Advertising cost: $50,000 - Cost of goods production: $200,000 - Rent a pop-up venue, security, management, ...: $150,000 - Other expenses (transportation, incidental...): $100,000 Expected revenue: - Samsung Galaxy S20+ BTS Special Edition: $650,000 - Available products are sold through BTS advertising: $100,000 - Merchs: $700,000 With the premise of existing cooperation and the situation of the COVID-19 epidemic in the world being better controlled, the event hopes to reach fans and users around the world. 5. Controls Project implementation time: 6 months. Implementation department:  Accounting department  Audit department  Sales department  Administration department  Human Resources department  Customer Service department  Financial department  Research & Development department  Quality department