marketing analysis of samsung

Samsung's Marketing Strategy: How Samsung became a Pioneer in the Electronics Industry despite all odds

Learn about samsung's iconic marketing strategy and advertising campaigns. read how samsung aces the 4ps of marketing mix - product, price, promotion & placement..

overview#goto" data-overview-topic-param="history">Foundation of Samsung Electronics
overview#goto" data-overview-topic-param="mix">Samsung's Marketing Mix
overview#goto" data-overview-topic-param="notable">Notable Marketing Campaigns
overview#goto" data-overview-topic-param="digital">Digital Marketing Campaigns

Samsung is a global tech giant specializing in the consumer and industrial electronics industry. It has emerged as a pioneer in the electronics industry with innovative products, ingenious marketing strategies, and cutting-edge technology. Samsung ranks second in the top 10 consumer electronics companies worldwide by sales, despite facing massive competition from mammoth brands like Apple, Microsoft, and Sony.

How did Samsung reach the top position in such an impenetrable industry? Let’s uncover Samsung’s Marketing Strategy with a detailed study of its cunning marketing mix and bold digital marketing campaigns.

Foundation of Samsung Electronics & Evolution of its Mobile Phones

Samsung is a family-owned conglomerate from South Korea. In 1938, Lee Byung-Chul founded a grocery trading company known as Samsung trading company. The name Samsung means Three Stars representing its vision to become powerful and everlasting like stars. In the following two decades, Samsung ventured into the banking, manufacturing, insurance, and retail industries.

The monolithic Samsung Electronics we know today, came into being in 1969 when it took its first steps in the consumer electronics industry. Samsung became a business partner with Sanyo Lab to produce low-cost TVs and microwave ovens. It also started producing mobile phones which saw a paramount failure due to their low quality and extreme customer dissatisfaction.

Following this fiasco, Samsung decided to switch gears instead of giving up. It shifted its marketing strategy from being a low-tier manufacturing brand to a company building products with revolutionary technology and innovative features. This was Samsung’s “Do what you can’t” moment, which made them the most profitable tech company to ever exist.

In June 2009, Samsung launched its first smartphone Galaxy GT-17500, which was received exceptionally well by the market. Its quality was claimed to be as great as those of smartphones by well-established brands. Since then, Samsung electronics has produced dozens of smartphones, each outperforming its predecessor with eccentric new features and enhanced system upgrades.

As of 2022, it ranks sixth on the Brand Global Value list with a brand value of US$107.3 billion .

Now that we are aware of the influential origin of one of the most valuable brands, let’s unearth Samsung marketing strategy and digital marketing secrets.

Source: Phone Arena

Samsung's Marketing Mix Strategy

Marketing mix elements are crucial marketing vehicles to make strategic decisions about a product’s launch and promotion. Samsung’s Marketing Mix plan focuses on wide-ranging high-quality products sold in e-commerce and retail stores at a premium or competitive price based on demand. It uses advertisements, content marketing, sales promotions, event experiences, and digital campaigns to publicize and hype its products.

Let's analyze their marketing mix using 4P analysis:

Samsung marketing strategy is to identify developments in the market trends, adapt to dynamic changes, and produce products that the target market demands. Samsung is a customer-centric brand with a diverse product offering in the consumer electronics industry.

Samsung’s competitive advantage is its cutting-edge technology, cost-effectiveness, innovative research, and unparalleled product features.

Its product range includes smartphones and related accessories, smart TV, watches, tablets, plasma TV, monitors, and memory storage. Recently, Samsung expanded into the kitchen and home appliances producing air conditioners, washing machines, cooking appliances, etc.

Samsung’s strength is that it can meet your every electronic device need while keeping your pocket happy. It accounts for a whopping one-sixth of South Korea’s total exports.

Among recent supply chain crises and high demand for memory chips, Samsung outperformed its competitors, gaining high corporate sales and revenue in the chip manufacturing industry. Samsung is truly a high-quality brand worthy of recognition bestowed upon it.

Samsung's marketing strategy is not immune to failures either.

Samsung's weakness is its history of producing faulty mobile devices, including an exploding Galaxy Note 7 and a malfunctioning foldable phone. In addition, Apple has filed a patent infringement lawsuit against the company. It is also in controversies with other competitors for design thefts.

Still, Samsung has the potential to achieve tremendous development if it steers clear of such mishaps in the future.

Source: Connection

Samsung is a pricing expert. They operate in a highly competitive smartphone industry where competitors devise products with identical features within weeks. In defense, Samsung's marketing strategy has to be swift enough to deflect all blows.

The two pricing schemes used by Samsung are:

Price skimming tactic

Competitive Pricing

When the company launches a new smartphone, it values the product at the highest price the customers are willing to pay. Over time as the shine fades and its competitors launch identical products, Samsung lowers its product prices using a competitive strategy to retain market share.

Samsung’s promotion strategy uses a blend of print and digital advertisements, events experiences, and content marketing to promote its hottest product and establish a strong brand image. The message of its digital campaigns is out-of-the-box and bold.

As a part of its promotion mix, Samsung is omnipresent on major social media platforms, connecting and interacting with its customers through organic and paid social media marketing. Samsung's competitive strategy for sales promotions includes incentives and discounts.

Even after being a notable name in the Asian market, Samsung relies heavily on the American market. Samsung spent nearly $2.3 billion on advertising in the USA alone in 2021.

Source: Grab On

Samsung’s e-commerce store has an easy-to-use user interface, detailed product categorization, and thorough descriptions. Customers can buy any electronic device from the comfort of their homes.

Otherwise, Samsung is a single distribution business selling to only service dealers and brand-owned stores. Samsung prides its customer care front, positioning itself as a brand with attentive, committed, and fast service dealers in every nook and corner of the world.

Source: Samsung

Source: Sam mobile

Samsung Marketing Strategy - notable marketing campaigns

Innovation, change, and smart branding are the cornerstones of the Samsung marketing strategy. Samsung's integrated marketing model uses a mix of various marketing campaigns like influencer marketing, content marketing, and search engine marketing. Samsung dives into the world of social platforms, identifies where brand-relevant conversations are happening, and collects data about its user base as to how they use Samsung products and their perception of the brand.

Influencer Marketing Strategy

As a part of its marketing strategy, Samsung has partnered with global celebrities to leverage its social positioning and large fan base. This enables the company to retain its market leader image.

World-renowned boy band BTS are Samsung's brand ambassador since 2021, giving the brand exposure to its massive fan base.

Samsung launched the Blackpink edition for their Galaxy A80 to appeal to their mighty fan base Blinks.

Social Media Marketing Strategy

Samsung has a social media presence on major social networks to keep an eye on the goings-on in and around the smartphone market. Their engaging social media content centers around product promotions and user interaction.

Samsung's YouTube channel has 6.27M subscribers, with individual subsidiary channels for different countries.

Samsung's Facebook page has a massive following of 46M users.

Samsung's Instagram profile, filled with visually appealing posts, has 1.2M followers.

Samsung's TikTok profile has an engaging audience of over 2M followers garnering 11.6M likes.

Search Engine Marketing Strategy

Samsung's website is SEO optimized to rank on the first page of Google. Its domain authority has an exceptional score of 94 with Samsung Galaxy S22 Ultra keyword ranking at the top after Samsung.

Source : Moz

Digital marketing campaigns

Samsung marketing strategy is thriving because of its unafraid stance for its beliefs, risk-taking attitude, and inspirational messaging. Samsung's digital marketing tactics focus on user interaction with Samsung devices.

Samsung marketing strategy for digital media focuses on the following three pillars:

How the user interacts with their device implanting it in their life.

How the device makes their life easier.

How users can communicate with their loved ones using Samsung products building positive emotional relationships.

Here are Samsung's top noteworthy digital campaigns:

Growing up Campaign

Samsung's Growing up campaign was a direct jab at its main competitor Apple ’s shortcomings like low storage, high battery drainage, no water resistance, and need for adapters.

Ingenious Campaign

As the idea was a huge success, Samsung launched a similar concept named the Ingenious campaign. It took shots at Apple's disadvantages while comparing it to Galaxy S9. The message was that Apple's superior products don't live up to their name.

India, Ready, Action! Campaign

Samsung India, ready, action! campaign urges Indians to break the stereotypes against them, and share the real India.

Olympic movement Campaign

Samsung has been an Olympic partner for more than two decades. Through its Olympic movement, Samsung has enabled fans to engage in real-time with immersive game experiences and celebrate the Olympic spirit together.

Smartphone line Campaign

The Smartphone line was an effort to create a digital line for Galaxy S4 instead of a physical line outside stores. Fans had to share which features they were most excited about. The more those posts were liked and re-shared, the closer they got to the front of the line.

Join the flip side Campaign

Join the flip side ad campaign starts with the line “I would never switch to Samsung, I love my phone”, a probable jab at Apple's brand loyalists who cannot fathom the idea of switching to another smartphone brand.

Do what you can't Campaign

The do what you can’t campaign inspires people to do what can’t be done.

Look at me Campaign

Samsung marketing strategy is in tune with social issues. Its Look at me app helps children with autism develop communication skills through eye contact and interpreting facial expressions.

Samsung prioritizes relationships before its products. They position themselves as a brand that helps users live comfortably and builds society into a better place. Through customer-centric and socially conscious marketing, Samsung has emerged as a global electronics powerhouse building a better future together for tomorrow .

If you are building a consumer technology business, you can explore marketing mix of Apple and Boat to know more.

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Samsung Market Strategy: A Closer Look at Their Marketing Approach

Samsung, one of the world’s leading technology companies, has significantly impacted the global market through its innovative products and effective marketing strategies. This article will look closely at Samsung’s marketing approach, highlighting its core principles, differentiation strategies, emphasis on innovation, global marketing tactics, the influence of customer perception, and future directions for their marketing strategies .

Understanding Samsung’s Market Strategy

Samsung’s success in the market can be attributed to its well-defined market strategy. At the core of their marketing approach is a set of principles that guide their actions and decisions.

Regarding Samsung’s marketing, one of the key principles they adhere to is a commitment to customer-centricity . They prioritize understanding the needs and preferences of their consumers, which enables them to deliver products and experiences that align with customer expectations.

Furthermore, Samsung relies on continuous research and analysis to stay abreast of market trends and consumer behavior. This enables them to anticipate customer needs, identify market opportunities, and tailor their marketing efforts accordingly.

The Core Principles of Samsung’s Marketing

Customer-centricity is not the only principle that drives Samsung’s marketing strategy. Another important principle is their dedication to innovation. Samsung understands that to stay ahead in the market, it needs to constantly push the boundaries of technology and come up with new and exciting products.

To achieve this, Samsung has invested heavily in research and development. They have a team of talented engineers and designers who work tirelessly to develop technologically advanced products with unique features and functionalities. This commitment to innovation has allowed Samsung to differentiate itself from its competitors and maintain a strong position in the market.

Additionally, Samsung places great importance on building strong relationships with its customers. They recognize that customer loyalty is crucial for long-term success and strive to exceed customer expectations at every touchpoint. By consistently delivering high-quality products and prioritizing customer satisfaction, Samsung has earned the trust and loyalty of its customers.

How Samsung Differentiates Itself in the Market

Samsung has differentiated itself from its competitors in a highly competitive market through various factors. Firstly, their commitment to innovation and technological advancement sets them apart. Samsung’s products are known for their cutting-edge features and functionalities, which appeal to tech-savvy consumers who are always looking for the latest and greatest.

Moreover, Samsung has built a strong brand image by effectively communicating its brand values. They position themselves as an innovative and trustworthy company dedicated to enhancing their customers’ lives through technology. This brand image resonates with consumers and helps Samsung stand out in a crowded market.

Furthermore, Samsung understands the importance of marketing communication. They invest in strategic advertising campaigns that showcase their products and tell compelling stories . By creating emotional connections with their audience, Samsung can build brand loyalty and create a lasting impression in consumers’ minds.

In conclusion, Samsung’s market strategy is built on the principles of customer-centricity, innovation, and strong customer relationships. By understanding the needs and preferences of its consumers, consistently delivering innovative products, and building a strong brand image, Samsung has successfully differentiated itself in the market and maintained its position as a leader in the technology industry.

The Role of Innovation in Samsung’s Marketing Approach

Innovation plays a pivotal role in Samsung’s marketing approach, driving its success and growth in the market. But what exactly does innovation mean for Samsung? It goes beyond just coming up with new ideas or creating flashy products. Samsung’s commitment to technological advancements sets it apart from its competitors. They continuously invest in research and development to push the boundaries of innovation, resulting in cutting-edge products that meet the evolving needs of consumers.

Imagine a team of brilliant engineers and designers working tirelessly in state-of-the-art labs, brainstorming and experimenting with new concepts. This relentless pursuit of innovation is what fuels Samsung’s marketing strategy.

Samsung’s Emphasis on Technological Advancements

By constantly introducing new technologies and improving existing ones, Samsung maintains a competitive edge and establishes itself as a leader in the industry. Take, for example, their smartphones. Samsung was one of the first companies to introduce curved displays, revolutionizing the way customers interact with the devices. This breakthrough innovation not only enhanced the user experience but also set a new standard for smartphone design.

But it doesn’t stop there. Samsung’s commitment to innovation extends to other product categories as well. From televisions with stunning 8K resolution to home appliances with smart features, they continuously push the boundaries of what is possible.

Moreover, Samsung’s dedication to technological advancements goes beyond just hardware. They invest heavily in software development, ensuring that their devices are not only powerful but also intuitive and user-friendly. This holistic approach to innovation sets them apart from their competitors.

The Impact of Innovation on Samsung’s Brand Image

Samsung’s focus on innovation has profoundly impacted its brand image. It has solidified its reputation as a provider of innovative solutions and positioned itself as a brand that consumers can rely on for groundbreaking products.

Think about it. When you hear the name Samsung, what comes to mind? Most likely, it’s their innovative products like the Galaxy smartphones or the QLED televisions. This positive brand image attracts new customers and fosters brand loyalty among existing customers, who associate Samsung with innovation and quality.

But it’s not just about the products themselves. Samsung’s commitment to innovation also extends to its marketing campaigns. They leverage cutting-edge technologies and creative storytelling to engage and captivate their audience. From immersive virtual reality experiences to interactive advertisements, Samsung knows how to make a lasting impression.

In conclusion, innovation is at the core of Samsung’s marketing approach. It drives their success, sets them apart from their competitors, and solidifies their brand image as a provider of innovative solutions. As technology continues to evolve, customers can expect Samsung to remain at the forefront, constantly pushing the boundaries of what is possible.

Samsung’s Global Marketing Tactics

As a global company, Samsung understands the importance of adapting its marketing strategies to suit different regions and markets. When it comes to global marketing, Samsung takes a meticulous approach. They recognize that consumer preferences and behaviors vary across different regions. To effectively reach their target audiences, they tailor their marketing strategies to suit each market’s cultural nuances and preferences.

For instance, in Asian markets where family values are highly regarded, Samsung focuses on emphasizing the importance of technology in bringing families together. In contrast, in Western markets where individualism is more prevalent, they highlight their products’ personal benefits and cutting-edge features.

This careful adaptation of marketing strategies allows Samsung to create localized campaigns that resonate with consumers, enabling them to establish a strong presence in diverse global markets.

Adapting Marketing Strategies to Different Regions

Samsung’s commitment to adapting its marketing strategies to different regions goes beyond superficial changes. They invest significant time and resources in understanding each market’s unique needs and preferences.

Through extensive market research, Samsung identifies key consumer trends, local competitors, and cultural nuances that shape consumer behavior. Armed with this knowledge, they develop marketing campaigns that capture the attention of their target audience and create an emotional connection with them.

For example, in countries with a strong emphasis on environmental sustainability, Samsung incorporates eco-friendly messaging into their marketing materials. This not only aligns with the values of the local consumers but also positions Samsung as a responsible and socially conscious brand.

Samsung’s Approach to Global Branding

While Samsung adapts its marketing strategies to local markets, it also maintains a consistent global brand identity. They understand the power of a strong and recognizable brand and have successfully established one through their global branding efforts.

At the core of Samsung’s global branding strategy is consistently communicating its core brand values. Whether it’s in their advertisements, packaging, or online presence, Samsung ensures that their brand values of innovation, quality, and reliability shine through.

Moreover, Samsung maintains a unified brand image across markets. This means that regardless of the market in which their products are sold, consumers can instantly recognize and trust the Samsung brand. This consistency helps Samsung build brand loyalty and fosters a sense of familiarity and trust among its global customer base.

In conclusion, Samsung’s global marketing tactics are a testament to their understanding of consumers’ diverse needs and preferences worldwide. By adapting their strategies to suit different regions and maintaining a consistent global brand identity, Samsung has been able to establish a strong presence in the global market and capture the hearts of consumers around the world.

The Influence of Customer Perception on Samsung’s Marketing

Customer perception plays a crucial role in shaping Samsung’s marketing strategies. The company goes to great lengths to build and maintain a positive perception among its customers.

How Samsung Builds and Maintains Customer Trust

Samsung understands that trust is the foundation of a strong customer relationship. They have put in place various measures to build trust, such as ensuring product quality and reliability, providing excellent customer service, and promptly addressing customer concerns.

By consistently delivering on their promises and actively engaging with their customers, Samsung has successfully fostered trust and loyalty, which translates into long-term customer relationships.

The Role of Customer Feedback in Shaping Samsung’s Marketing Strategies

Samsung recognizes the value of customer feedback in shaping its marketing strategies. They actively seek customer feedback through various channels, including surveys, social media platforms, and customer service interactions.

By listening to their customers’ opinions and incorporating their input into their marketing efforts, Samsung ensures that their strategies align with customer needs and preferences, increasing customer satisfaction and loyalty.

Future Directions for Samsung’s Marketing Approach

Looking ahead, Samsung’s marketing approach is expected to continue evolving to keep up with emerging trends and changing consumer behaviors.

Emerging Marketing Trends and Samsung’s Adaptation

Samsung closely monitors emerging marketing trends and adapts its strategies accordingly. As technology and consumer preferences evolve, Samsung aims to stay at the forefront by embracing new approaches, such as digital marketing, social media engagement, and personalized experiences.

By staying proactive and agile in their marketing approach, Samsung can continue to reach and connect with their target audience effectively.

Predictions for Samsung’s Future Marketing Strategies

As Samsung continues to expand its product portfolio and explore new markets, it is expected that it will further leverage its brand equity and innovative capabilities in its marketing strategies.

Additionally, Samsung’s commitment to sustainability and corporate social responsibility is likely to influence its marketing approach, as it seeks to align its brand with values that resonate with environmentally conscious consumers.

In conclusion, Samsung’s market strategy exemplifies the company’s commitment to delivering innovative products and exceptional customer experiences. Through its focus on customer-centricity, differentiated offerings, emphasis on innovation, global marketing tactics, and responsiveness to customer perception, Samsung has built a strong brand that is synonymous with trust and excellence. As they navigate the ever-changing technology industry landscape, Samsung’s future marketing strategies will undoubtedly continue to shape the company’s success and position them as a leader in the market. Schedule a FREE Business Growth Strategy Session with one of our Chief Senior Marketing Officers today to improve your marketing strategy.

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Samsung Marketing Analysis: SWOT, Segmentation, Marketing Mix

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

Table of Contents

Introduction

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

OPPORTUNITIES

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.

MARKET SEGMENTATION OF Samsung

Geographic segmentation.

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.

Demographic segmentation

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.

Behavioral segmentation

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

Psychographic segmentation

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:

Smartphones
Galaxy Buds
Accessories

TV & AV :

TV by Resolution
Sound Devices

Home Appliance:

Refrigerators
Vacuum Cleaners
Air Purifiers
Air Conditioners
Cooking Appliances
Dishwashers

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.

The Samsung Market Strategy: Consumer Electronics Go-to-Market Success

Understanding samsung's market strategy.

Samsung's market strategy is built on core principles that have played a pivotal role in its success. One of these principles is customer-centricity. Samsung has consistently focused on understanding the needs and preferences of its customers, anticipating market trends , and providing innovative solutions to meet those needs. By conducting extensive market research and analyzing consumer behavior, Samsung has been able to tailor its products and services to cater to specific target audiences.

Additionally, Samsung places emphasis on quality and reliability, consistently delivering products that meet high standards and exceed customer expectations. The company has implemented rigorous quality control measures throughout its manufacturing processes to ensure that each product meets the highest level of performance and durability. This commitment to quality has not only earned Samsung a loyal customer base but has also helped establish its reputation as a trusted brand in the market.

Another core principle of Samsung's strategy is diversification. The company operates in multiple industries, including consumer electronics, telecommunications, shipbuilding, and construction. This diversification not only minimizes risks but also allows for synergies and cross-promotions across different product lines, contributing to overall growth. By leveraging its expertise in various sectors, Samsung has been able to create a diverse portfolio of products and services that cater to a wide range of customer needs.

Furthermore, Samsung's diversification strategy extends beyond its product offerings . The company has also expanded its geographical presence, establishing a strong global footprint. By entering new markets and forming strategic partnerships with local companies, Samsung has been able to tap into new customer bases and gain a competitive edge.

The Role of Innovation in Samsung's Success

Innovation has been the cornerstone of Samsung's success . The company has continuously pushed the boundaries of technology by introducing groundbreaking features and advancements in its products. By investing substantial resources in research and development, Samsung has been able to stay ahead of the competition and capture a significant market share.

Samsung's commitment to innovation is evident in its product range, ranging from mobile devices and home appliances to digital displays and semiconductors. The company has a track record of introducing cutting-edge technologies, such as curved displays, foldable smartphones, and high-performance processors. These innovations not only enhance the user experience but also differentiate Samsung's products from competitors in the market.

Moreover, Samsung's focus on innovation extends beyond hardware. The company has also invested in software development and user interface design to create intuitive and user-friendly experiences. By constantly refining and improving its software offerings, Samsung ensures that its products remain relevant and competitive in the fast-paced technology industry.

Furthermore, Samsung actively collaborates with external partners, such as startups and research institutions, to foster innovation. By engaging in open innovation initiatives, Samsung gains access to new ideas and technologies, fueling its continuous drive for innovation.

In conclusion, Samsung's market strategy is built on customer-centricity, quality, diversification, and innovation. By understanding customer needs, delivering high-quality products, diversifying its business portfolio, and continuously innovating, Samsung has established itself as a global leader in the technology industry.

The Evolution of Samsung's Market Strategy

Samsung's early years: laying the foundation.

Samsung's journey to success began with its humble beginnings in 1938. Originally a trading company, Samsung gradually expanded its operations into various industries, laying the foundation for its market strategy. By venturing into sectors like textiles, insurance, and food processing, Samsung gained valuable experience and insights that would later shape its approach in the consumer electronics market.

One of the key industries that Samsung entered during its early years was textiles. The company recognized the potential of this sector and invested heavily in modernizing its production facilities. By implementing advanced machinery and techniques, Samsung was able to produce high-quality textiles at a competitive price. This focus on quality and efficiency would become a cornerstone of Samsung's market strategy in the years to come.

In addition to textiles, Samsung also made significant strides in the insurance industry. The company saw an opportunity to provide comprehensive insurance coverage to individuals and businesses, ensuring their financial security. By offering innovative insurance products and excellent customer service, Samsung gained a reputation for reliability and trustworthiness, which would later translate into its consumer electronics business.

Furthermore, Samsung's foray into the food processing industry allowed it to understand the importance of catering to diverse consumer needs. The company developed a wide range of food products, from basic staples to gourmet delicacies, to meet the demands of different market segments. This experience taught Samsung the value of customization and adaptation, which would prove vital in its approach to consumer electronics.

In the 1960s, Samsung took its first steps into the electronics industry, producing black and white televisions. This marked a significant turning point in Samsung's market strategy, as it signaled a shift towards a more technology-focused approach and the beginning of its ascent as a global player.

Recognizing the growing demand for televisions, Samsung invested heavily in research and development to improve the quality and features of its products. The company's commitment to innovation led to the introduction of color televisions, which quickly gained popularity among consumers. Samsung's ability to stay ahead of the curve and anticipate market trends became a defining characteristic of its market strategy.

Samsung's Shift to Electronics: A Game Changer

During the 1980s, Samsung made a pivotal decision to focus primarily on the electronics market . This strategic shift allowed the company to concentrate its resources and expertise on developing cutting-edge technology and expanding its product portfolio.

With its newfound focus on electronics, Samsung set out to revolutionize the industry. The company invested heavily in research and development, attracting top talent and fostering a culture of innovation. This commitment to technological advancement enabled Samsung to introduce groundbreaking products that pushed the boundaries of what was possible.

One of Samsung's most notable achievements during this period was the development of the first-ever mobile phone with a built-in camera. This groundbreaking innovation revolutionized the way people captured and shared moments, setting a new standard for the mobile phone industry. Samsung's ability to identify gaps in the market and deliver innovative solutions became a key pillar of its market strategy.

The shift to electronics proved to be a game changer for Samsung. The company rapidly gained recognition for its high-quality consumer electronics products, such as televisions, audio systems, and home appliances. Samsung's reputation for innovation and reliability attracted a loyal customer base and positioned the company as a leader in the market.

Building on its success in the consumer electronics market, Samsung continued to expand its product offerings. The company ventured into the computer industry, introducing a range of laptops and desktops that combined sleek design with powerful performance. Samsung's commitment to delivering cutting-edge technology across multiple product categories solidified its position as a market leader and paved the way for future success.

Samsung's Global Market Strategy

Samsung, a global leader in technology and electronics, has implemented a comprehensive global market strategy to maintain its competitive edge in the ever-evolving industry. With a focus on both emerging and established markets, Samsung has successfully tailored its approach to meet the diverse needs and demands of consumers worldwide.

Samsung's Approach to Emerging Markets

Recognizing the unique characteristics and challenges of emerging markets, Samsung has strategically adapted its products and strategies to effectively penetrate these regions. One key aspect of Samsung's approach is its commitment to offering a wide range of product options across different price points.

Understanding the diverse purchasing power and preferences of consumers in emerging markets, Samsung ensures accessibility by providing products that cater to various budget ranges. By doing so, Samsung not only captures a larger market share but also establishes itself as a brand that is committed to inclusivity and affordability.

Moreover, Samsung's tailored approach goes beyond pricing strategies. The company also invests heavily in research and development to understand the unique needs and preferences of consumers in each emerging market. This enables Samsung to develop products that are specifically designed to meet the demands of these regions, ensuring customer satisfaction and loyalty.

Samsung's Strategy in Established Markets

While Samsung continues to focus on emerging markets, the company also recognizes the importance of maintaining a strong presence in established markets. To effectively compete in these regions, Samsung adopts a two-pronged approach, targeting both high-end consumers and budget-conscious buyers.

For high-end consumers, Samsung positions its premium products as technological marvels, offering cutting-edge features and luxurious designs. By consistently pushing the boundaries of innovation, Samsung appeals to tech enthusiasts who are willing to invest in top-of-the-line products that offer unparalleled performance and style.

On the other hand, Samsung understands that price sensitivity plays a significant role in established markets. To cater to budget-conscious buyers, Samsung offers a range of affordable yet feature-rich options. By striking a balance between price and functionality, Samsung ensures that a broader customer base can access its products, resulting in consistent revenue streams and increased market penetration.

In addition to its product offerings, Samsung also focuses on building strong brand loyalty in established markets. Through strategic marketing campaigns and partnerships with influential figures and organizations, Samsung creates a sense of trust and reliability among consumers. This not only encourages repeat purchases but also helps Samsung maintain a competitive advantage over its rivals.

In conclusion, Samsung's global market strategy is a testament to its commitment to understanding and meeting the diverse needs of consumers worldwide. By tailoring its approach to both emerging and established markets, Samsung continues to thrive in the highly competitive technology industry.

The Impact of Samsung's Market Strategy on its Competitors

Samsung's competitive advantage: a deep dive.

Samsung's market strategy has created a distinct competitive advantage. The company's relentless focus on innovation, customer-centricity, and diversification has allowed it to outperform competitors and maintain strong market positioning.

One key factor contributing to Samsung's competitive advantage is its vertical integration. By manufacturing a significant portion of its components in-house, Samsung has better control over the quality and costs of its products, positioning it for greater competitiveness.

How Samsung's Strategy Shapes the Market

Samsung's market strategy has far-reaching implications, shaping not only its own success but also the entire industry. Through its constant pursuit of innovation and customer-focused solutions, Samsung sets industry benchmarks and drives technological advancements.

Competitors are forced to adapt and keep up with Samsung's pace, resulting in a more dynamic and innovative marketplace. This healthy competition benefits consumers, as they are continually presented with improved products and greater choice.

The Future of Samsung's Market Strategy

Predicting samsung's next strategic moves.

As Samsung continues to dominate the global market, speculation about its future strategic moves runs rampant. With its track record of innovation and adaptability, Samsung is expected to further expand into emerging markets and solidify its position in established markets.

Additionally, Samsung is likely to focus on emerging technologies such as artificial intelligence, Internet of Things (IoT), and 5G. These areas present new opportunities for Samsung to develop innovative products and consolidate its market position.

The Potential Challenges and Opportunities for Samsung

While Samsung's market strategy has been highly successful, the company faces both challenges and opportunities in the future. Increased competition, geopolitical factors, and changing consumer preferences are some challenges that Samsung needs to navigate.

However, Samsung's strong brand reputation, global presence, and ability to adapt make it well-equipped to seize new opportunities. By staying at the forefront of technology and leveraging its diversified portfolio, Samsung can continue to thrive in an ever-evolving market.

In conclusion, Samsung's market strategy encompasses various elements that have cemented its success as a global leader. From its customer-centric approach to its focus on innovation, Samsung's market strategy has shaped the industry and positioned the company as a driving force. As Samsung adapts to emerging markets, continues to outpace competitors, and explores new technologies, its market strategy will remain a key asset in maintaining its position for years to come.

About the Author

Hi, I'm Justin and I write Brand Credential. I started Brand Credential as a resource to help share expertise from my 10-year brand building journey. ‍ I currently serve as the VP of Marketing for a tech company where I oversee all go-to-market functions. Throughout my career I've helped companies scale revenue to millions of dollars, helped executives build personal brands, and created hundreds of pieces of content since starting to write online in 2012.

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Unveiling Success: A Deep Dive into Samsung Marketing Strategy

Introduction, a. brief overview of samsung as a tech giant.

Samsung Electronics Co., Ltd., commonly referred to as Samsung, is a South Korean multinational electronics company headquartered in Suwon, South Korea. It is the world’s largest manufacturer of consumer electronics by revenue, employing over 200,000 people in 70 countries as of 2013. Samsung produces a wide range of products, including smartphones, televisions, home appliances, semiconductors, memory, integrated circuits, and displays.

B. Importance of marketing strategy in the competitive tech industry

In the ever-evolving and highly competitive tech industry, a robust marketing strategy is crucial for a company’s success. An effective marketing strategy can help a company:

Increase brand awareness and recognition
Differentiate itself from competitors
Generate leads and drive sales
Build customer loyalty
Maintain a positive brand image

Samsung has long recognized the importance of marketing and has invested heavily in developing and implementing innovative marketing strategies. This commitment to marketing has been a key factor in Samsung’s rise to become one of the world’s leading tech brands.

C. Purpose of the blog – Understanding Samsung’s marketing approach

This blog aims to provide an in-depth look at Samsung’s marketing strategy. We will explore the evolution of Samsung’s marketing approach over the years, examine key milestones and pivotal moments in Samsung’s marketing history, and compare Samsung’s strategies with those of its competitors.

Also Read – DECODING UNIQLO’S WINNING MARKETING STRATEGIES

Historical Perspective

Evolution of samsung’s marketing strategy over the years.

Samsung’s marketing strategy has evolved significantly over the years, reflecting the company’s changing products, target markets, and competitive landscape. In the early days, Samsung focused on marketing its products as high-quality and affordable alternatives to Japanese brands. As Samsung became more established, it shifted its focus to emphasizing innovation and design. In recent years, Samsung has placed a greater emphasis on digital marketing and social media engagement.

Key milestones and pivotal moments in Samsung’s marketing history

Samsung’s marketing history is marked by several key milestones and pivotal moments, including:

1970s: Samsung launches its first advertising campaign in South Korea.
1980s: Samsung expands its marketing efforts internationally and becomes a major player in the global electronics market.
1990s: Samsung introduces its iconic Galaxy line of smartphones, solidifying its position as a leader in mobile technology.
2000s: Samsung launches a series of highly successful marketing campaigns, including the “Hope for Children” campaign and the “Samsung You” campaign.
2010s: Samsung continues to invest heavily in digital marketing and social media engagement. The company also becomes known for its innovative marketing campaigns, such as the “Galaxy Unpacked” events.
2020s: Samsung continues to focus on digital marketing and social media engagement, while also exploring new marketing channels, such as virtual reality and augmented reality.

Comparison with competitors’ strategies

Samsung has a long history of successful marketing campaigns, but the company faces stiff competition from other tech giants, such as Apple, Google, and Huawei. Each of these companies has its own unique marketing strategy, and Samsung must continually innovate and adapt in order to stay ahead of the competition.

Table 1: Comparison of Samsung’s marketing strategy to its competitors

Statistics:

Samsung is the world’s largest manufacturer of smartphones, with a market share of 22.7% in Q2 2023.
Samsung’s global marketing budget is estimated to be over $20 billion.
Samsung has over 150 million followers on social media.
Samsung’s “Galaxy Unpacked” events are among the most anticipated events in the tech industry.

Market Analysis

Overview of the tech market and its dynamics.

The tech market is a rapidly evolving and highly competitive landscape. New technologies emerge constantly, and consumer preferences change quickly. As a result, companies in the tech industry must be agile and adaptable in order to stay ahead of the curve.

Samsung’s market positioning and target audience

Samsung positions itself as a premium brand that offers innovative and high-quality products. The company’s target audience is global and includes consumers of all ages and demographics. Samsung has a strong presence in both developed and developing markets. This global reach is a key advantage for the company, as it allows it to tap into a wide range of potential customers.

Competitor landscape and challenges faced by Samsung

Samsung faces stiff competition from other tech giants, such as Apple, Google, and Huawei. These companies all have strong brand reputations and offer a wide range of innovative products. Samsung must continually innovate and differentiate its products in order to maintain its competitive edge.

In addition to competition from other tech giants, Samsung also faces challenges from the overall economic climate and technological advancements. The company must be able to manage its costs effectively and adapt to new technologies in order to stay profitable.

Table 2: Key Challenges Faced by Samsung in the Tech Market

The global tech market is expected to reach $5.8 trillion in 2023.
Smartphone sales are expected to reach 1.4 billion units in 2023.
The average consumer spends over $1,000 on tech products each year.

Also Read – LEVERAGING L’ORÉAL MARKETING STRATEGIES: AN ANALYSIS OF GLOBAL SUCCESS

Core Elements of Samsung’s Marketing Strategy

Branding and identity.

Samsung has built a strong brand image that is synonymous with innovation, quality, and design. The company’s branding is consistent across all of its products and marketing channels, which helps to create a unified brand experience for consumers.

Product Innovation

Samsung is known for its commitment to product innovation. The company invests heavily in research and development (R&D), and it has a reputation for releasing new and innovative products regularly. This commitment to innovation has helped Samsung to establish itself as a leader in the tech industry.

Digital Marketing

Samsung has a strong focus on digital marketing. The company uses a variety of digital channels to reach consumers, including social media, online advertising, and search engine marketing. Samsung also has a strong presence on YouTube, where it posts product reviews, tutorials, and other engaging content.

Customer Relationship Management (CRM)

Samsung is committed to building strong relationships with its customers. The company has a number of CRM initiatives in place, including loyalty programs and post-purchase engagement strategies. These initiatives help Samsung to keep its customers happy and loyal.

In addition to these core elements, Samsung’s marketing strategy also includes a number of other initiatives, such as sponsorships, events, and public relations. Samsung is constantly looking for new and innovative ways to reach consumers and promote its products and services.

Overall, Samsung’s marketing strategy is a complex and well-coordinated effort that has helped the company to become one of the world’s leading tech brands. The company’s commitment to innovation, digital marketing, and customer relationship management has been key to its success.

Successful Marketing Campaigns

Galaxy series launches.

Samsung’s Galaxy series of smartphones has been one of the most successful product launches in tech history. The company has mastered the art of creating anticipation and excitement for each new Galaxy release, and its marketing campaigns have played a key role in this success.

Image of Samsung Galaxy S23 Series

The Galaxy Unpacked events, which are held annually to unveil the latest Galaxy products, are a prime example of Samsung’s effective marketing. These events are highly anticipated by tech enthusiasts and media outlets alike, and they generate a significant amount of buzz. Samsung’s marketing team also creates a series of pre-event teasers and social media campaigns to further build excitement and engagement.

Integration of AI and IoT in Marketing

Samsung is increasingly using AI and the Internet of Things (IoT) to personalize and enhance its marketing efforts. For instance, the company has developed chatbots that can answer customer questions and provide product information in real time. Samsung is also using IoT devices to track customer behavior and preferences, which helps the company to tailor its marketing messages to specific individuals.

Learning from Failures

While Samsung has enjoyed many successful marketing campaigns, the company has also experienced its share of setbacks. In 2017, Samsung recalled its Galaxy Note 7 smartphones due to battery issues. This recall was a major blow to the company’s reputation and sales, and it highlighted the importance of quality control and risk management in marketing.

Samsung has taken steps to learn from the Galaxy Note 7 recall and improve its product testing and quality control processes. The company has also implemented more rigorous safety standards for its products and services. These changes have helped Samsung to regain consumer trust and build a stronger reputation for quality.

Global Reach

International marketing efforts.

Samsung is a global brand with a presence in over 190 countries. The company has tailored its marketing strategies to different regions to account for cultural differences and local preferences. For example, Samsung’s marketing campaigns in China often feature Chinese celebrities and cultural references.

Samsung has also invested heavily in localizing its products and services to better meet the needs of consumers in different countries. The company has developed a wide range of products and features that are specifically designed for specific regions. For instance, Samsung’s smartphones in India often have features that are popular in the Indian market, such as language support and payment options.

Cultural Considerations in Marketing

Samsung understands the importance of being culturally sensitive in its marketing efforts. The company has a team of experts who research and understand the cultural nuances of different regions. This knowledge helps Samsung to create marketing campaigns that are appropriate for different cultures and that do not offend or alienate consumers.

For example, Samsung’s marketing campaigns in the Middle East often avoid showing images of women. This is in accordance with the cultural norms of the region, and it helps Samsung to avoid potential offense. Samsung also takes care to avoid using language that may be considered offensive or inappropriate in certain cultures.

Overall, Samsung has a strong and effective marketing strategy that has helped the company to become one of the world’s leading tech brands. The company’s commitment to innovation, digital marketing, and customer relationship management, combined with its ability to learn from failures and adapt to different cultures, has been key to its success.

Samsung’s global market share is over 20%.
Samsung has over 260,000 employees worldwide.
Samsung’s brands are recognized in over 95% of households worldwide.

Samsung’s success is a testament to the power of effective marketing. The company’s ability to understand its customers, stay ahead of the competition, and adapt to new technologies has been a key factor in its global domination. Samsung’s marketing strategy is a model for other companies in the tech industry, and it serves as a reminder that marketing is not just about advertising; it is about building relationships, creating value, and connecting with customers on a deeper level.

Samsung’s marketing strategy has been a key factor in the company’s success. The company has consistently innovated, adapted, and excelled in its marketing efforts, positioning itself as a global leader in the tech industry. Samsung’s commitment to innovation, storytelling, and measurement has enabled it to connect with consumers on an emotional level, build brand loyalty, and achieve remarkable success in the competitive tech landscape. As the tech industry continues to evolve, Samsung is well-positioned to adapt and thrive, drawing inspiration from its past successes and embracing emerging trends such as AI, data-driven marketing, and customer experience. Samsung’s marketing strategy serves as a model for businesses across industries, demonstrating the power of effective marketing in building strong brands, driving sales, and achieving sustainable growth in a dynamic market.

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Samsung’s Marketing Mix: 4P Analysis

Samsung marketing mix, 4P, 4Ps, product, place, promotion, price, communications, consumer electronics business marketing strategy analysis

Samsung employs a marketing mix (4Ps) that combines strategies and tactics for reaching target customers through traditional and online channels. The company’s marketing strategies focus on reinforcing premium branding while targeting multiple market segments through different price points for its consumer electronics. Samsung’s corporate mission statement and corporate vision statement guide decisions pertaining to the 4P, such as decisions on the product features to include in promotions, and the target market or market segments. The implementation of this marketing mix coordinates with other areas of Samsung’s business organization.

The marketing strategy requires support from different areas of business operations and, consequently, influences operations management decisions at Samsung. The company’s operations management supports the marketing mix through supply chain management, inventory management, and human resources.

Samsung’s Products

Consumer electronics are the main component of the company’s product mix. Information technologies and related product lines are considered in this element of the marketing mix. Samsung has the following product categories:

Mobile devices
TV and Home Theater
Appliances and Smart Home

Mobile devices include the Galaxy product line of smartphones, tablets, smartwatches, and other devices. The computing devices in this marketing mix include Chromebooks, monitors, memory, and storage. Samsung also has TV, home theater products, and various appliances for integration into smart home systems. These product categories reflect Samsung’s marketing-mix focus on consumer electronics. This 4P element is also designed for a strong ecosystem of goods and services to retain customers or users of the company’s products. The product features selected for highlighting in the marketing mix are based on Samsung’s generic strategy for competitive advantage and strategies for intensive growth . These strategies push for product uniqueness, which is included in the company’s marketing strategies and tactics. Such uniqueness factor in this element of the marketing mix reflects the business strengths and related qualities described in the SWOT analysis of Samsung .

Pricing Strategies & Pricing Model

Samsung’s pricing strategies are based on the target market segments for multiple product lines. In the marketing mix or 4Ps context, multiple pricing strategies apply to the information technology company because of its multiple product lines and the diversity of its target customers. In its pricing model, Samsung uses the following strategies to set price ranges and price points:

Premium pricing
Value-based pricing

The premium pricing strategy applies to Samsung products that are marketed as high-end. For example, some Galaxy smartphone models have premium prices that compete with the most expensive iPhones. In its marketing mix, the company applies premium pricing to reinforce its branding strategy for Galaxy devices. On the other hand, the value-based pricing strategy considers product value and customer perception in setting the prices of the company’s information technologies and home appliances. In the marketing mix, value-based pricing allows Samsung to set attractive prices based on target market segments and customer profiles. The strategy enables the consumer electronics business to optimize its profit margins. Thus, Samsung’s marketing mix involves the premium pricing strategy to reinforce premium branding and achieve high profit margins; and the value-based pricing strategy to optimize prices based on customer perception and willingness to buy.

In terms of pricing models, Samsung uses a market pricing model . In market pricing, the prices of the company’s smartphones and tablets change according to market dynamics, including the introduction of new products and the market performance of competing products. Despite market changes, this pricing model ensures revenues and profits, and contributes to the success of Samsung’s marketing mix.

Samsung’s prices are based on competition, which creates strong external pressure on the business. For example, the company sets its prices to make its Galaxy smartphones competitive against iPhones. Thus, the company’s pricing strategies and pricing model respond to the respective pricing strategies and marketing mixes of competitors, such as Apple , Google (Alphabet) , Microsoft , Sony , and Intel . The marketing mix combines Samsung’s pricing strategies (premium pricing and value-based pricing) and pricing model (market pricing) to maintain the company’s market position despite such a competitive landscape.

Place/Distribution in Samsung’s Marketing Mix

Samsung implements a selective distribution strategy , which requires authorization to sell, and ensures the company’s control on the distribution and sale of its products. Customers can access the physical and online locations determined in this element of the marketing mix. Samsung’s strategic plans for the 4Ps integrate traditional and digital ways to transact with customers, as follows:

Authorized resellers
Samsung Experience Store
Company websites for e-commerce

Most of the company’s consumer electronics and other products are sold through authorized resellers. These authorized resellers distribute the products while agreeing with the elements of this marketing mix, such as pricing and promotion. Samsung Experience Store locations also provide target customers with first-hand experience in accessing and using the company’s products. The company’s e-commerce websites complement these brick-and-mortar locations for convenient purchases. Thus, this marketing-mix case involves brick-and-mortar places and e-commerce channels for optimal market reach and seamless customer experience. The success of the distribution strategy determines revenues and profits, as optimal distribution leads to optimal sales of the company’s consumer electronics and other products. This element of the marketing mix depends on the availability of support from Samsung’s organizational structure or corporate structure for relevant business processes, such as logistics for product distribution.

Promotion in Samsung’s 4Ps

The promotion of goods and services involves a mixture of traditional and non-traditional channels in Samsung’s 4P. The promotional mix or marketing communications mix dictates how the business informs target customers about the company’s consumer electronics and online services and persuades these customers to buy the products. The following promotional activities are in Samsung’s marketing mix:

Advertising on TV, websites, and print media
Sales promotion
Sponsorship
Personal selling
Public relations

Advertisements are the primary promotional activities in Samsung’s marketing campaigns. For example, the company places ads for its latest Galaxy smartphones and tablets on TV, print media, and websites or digital media. In this element of the marketing mix, advertising ensures optimum brand visibility and contributes to the publicity of the company’s information technology products. On the other hand, sales promotion is typically used in the company’s 4Ps for the latest products, such as the latest Galaxy devices. Sales promotion provides benefits, such as promo codes and discounts, to encourage customers to purchase Samsung products.

Samsung’s marketing mix includes sponsorship for events, such as the World Cyber Games, to increase product visibility. Similarly, the company’s participation in the annual Consumer Electronics Show (CES) allows for personal selling to persuade customers to buy the company’s goods or services. In this element of its marketing mix, the company applies sponsorship for technology-related events to appeal to a target audience and uses personal selling for personalized communication to address the preferences of individual buyers.

Public relations in Samsung’s marketing mix involves news and press releases published on the company’s website, as well as programs that support communities and organizations. For example, the company has community-focused technology education projects for water treatment solutions. Thus, Samsung’s corporate social responsibility and citizenship strategy intersect with this element of the marketing mix. The smartphone maker’s strategies and business approaches align to support promotional activities. Samsung’s company culture (organizational culture) influences employees’ decisions and behaviors in supporting promotional activities that extend beyond the company.

Considering the flexibility of the 4P, this element of Samsung’s marketing mix responds to changes in customer preferences and related trends. The adaptability of promotion and the other elements of its marketing mix empowers the consumer electronics company to maintain a strong market positioning despite challenges linked to market dynamics.

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Samsung Authorized Resellers .
Samsung Electronics Envisions Hyper-Growth in Memory and Logic Semiconductors Through Intensified Industry Collaborations at Samsung Tech Day 2022 .
Samsung Shares Vision to Bring Calm to the Connected Device Experience at CES 2023 .
Samsung’s E-commerce Website .
United States Department of Commerce – International Trade Administration – Software and Information Technology Industry .
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Samsung’s marketing makes the commonplace feel transformative

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By Chris Sutcliffe, Senior reporter

February 22, 2022 | 8 min read

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Samsung has been a regular feature in Interbrands ’s Global Brands report, this year being named one of the top 10 fastest-growing brands. As a new generation of consumer enters the market, raised with access to amazing tech, how is Samsung changing the way it markets products that are now ubiquitous? The Drum catches up with its top UK marketer for the latest Deep Dive into the marketing secrets of fast-growth brands.

Samsung’s omnichannel marketing approach goes beyond a single product launch

The latest Samsung Unpacked – its biannual showcase of technology – saw it extend into the metaverse with a virtual Valentine’s Day event. While the event itself was a mixed bag due to technical issues with the Decentraland platform, it spoke to Samsung’s commitment to getting in on the ground floor of new marketing opportunities. It builds upon the work it has already done around custom esports partnerships and radical new CTV opportunities in demonstrating that the brand itself is not content to simply rest on its reputational laurels.

During Unpacked, that ethos was also on display through its Tiger in the City out-of-home (OOH) campaign (pictured above), which was deployed on curved screens in cities including New York, Seoul and London. It featured a tiger appearing to burst through the bounds of the screens, and was designed to allow the public to “feel Samsung’s vision up close at street level.”

It was a tone-setting advertisement, one that shied away from displaying flat technical specs to instead demonstrate Samsung’s philosophy. Annika Bizon is Samsung’s marketing and omni channel director for Samsung UK and Ireland. She explains that it was in service of brand growth through demonstrating “the art of the possible.”

“The one-size-fits-all way of marketing of the past has gone. Now it ’s about segmenting your audience, understanding what they’re using their phone for, and how they want to communicate,” she says.

“It ’s incredibly important that we understand all of the different touchpoints that people transact with. We know that the average consumer has 12 to 15 different touchpoints before they make a purchase decision – at minimum.”

To that end she says that Samsung has recognized the drive among audiences – particularly younger ones – for powerful cameras that allow them to share their experiences in an optimum way. The Tiger in the City execution was designed in part to communicate how well the cameras in its Galaxy S22 series perform in the dark. It is an iteration on existing tech, yes – but in a way that speaks to how users now interact with one another.

Multiplicity of marketing channels

David Norris, European head of creative strategy at Snap Inc, has previously told The Drum that “culture now breaks in the camera.” It is a recognition of that generational shift that both software and hardware manufacturers are dealing with. The most successful, like Samsung, are using the change in how people use preexisting tech as the hook around which they can base their marketing.

Bizon says that the key message Samsung wishes to impart is that its products are inherently personal, and that its marketing strategy reflects that: “We have to start the consumer journey with the consumer versus with the product. That ’s the difference, [it] is actually putting the consumer right at the center of that conversation.

“We ’ve got to have meticulous touchpoint planning so that we delight customers in as personalized and authentic a way as possible through that digital journey. The role social plays in this – as we’ve just spoken to – is incredibly important. That sits alongside personalizing journeys, because it’s just important that people feel you’re talking to them, you’re not just talking to everybody.”

She says that the legacy companies that struggle to break out of their legacy status have a limiting focus on one or two channels. That both limits their ability to demonstrate any new features of their products and – more importantly – locks them out of creating those multiple touchpoints that lead to a sale.

That extends to the rapidly accelerating opportunities around web3 and the metaverse. Bizon says: “I think every single marketing organization is looking at the metaverse and trying to understand, ‘what does that mean to us? What does that look like in the future?’ And we ’ve got various plans around that.

“Everything we ’ve done in the past is the past. Looking forward, any marketeer [needs to be] looking at their mix because the consumer is changing all the time.”

Beyond the one-off campaign

That ethos also extends to partnerships. Earlier this year the Samsung Galaxy brand partnered with marketplace and reseller Depop – both because it gives Samsung access to Depop’s predominantly gen Z audience, and also because it allows it to demonstrate its technological capability.

The statement from Depop around the partnership intimated that sellers would see more success if they used Samsung’s camera tech: “The Galaxy S21 Ultra makes your outfits shine with pro-grade video; the Galaxy Z Fold2 gives you flexibility to up your side hustle; the Galaxy Z Flip helps you take hands-free photos and videos.”

Samsung has also made overtures to gaming audiences, recognizing both the rapid rise of mobile gaming and the lucrative nature of that marketplace. It has previously launched campaigns solely to show off the processing power of its mobile devices, and has a dedicated strategy for reaching the legions of esports audiences emerging globally.

Those strategies are powered in part by the data Samsung has on its audiences, helped by the ubiquity of its products such as connected TVs (CTVs). These devices – in addition to its other hardware – allows it access to extremely granular data about user habits and changing trends. It is the happy consequence of Samsung’s hardware focus, one that allows it to speak to advertisers with more authority and also to adapt its own strategies.

Samsung is not short of competitors. It is deeply embedded in a consumer market that is saturated with products, with each new launch attempting to eke out an advantage by marketing a small step forward in technology. Samsung’s winning marketing strategy, then, is to create enough touchpoints with consumers that all those small changes add up to something that feels transformational, personal and empowering.

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Digital presence of samsung, digital marketing campaigns of samsung , marketing mix of samsung, swot analysis, results of samsung marketing strategy, conclusion , how samsung marketing strategy solidifies its brand value.

The global electronics powerhouse– Samsung began its journey as a low-tier manufacturing brand. A strong Samsung marketing strategy revolutionized its stance in the market, making it the No.1 smartphone producer worldwide. The tech giant ranks 4th in Forbes' list of the World's Largest Tech Companies. A perfect blend of digital marketing and innovation has established Samsung as a unique, high-quality brand worthy of customer loyalty.

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Samsung's adept use of social currency has contributed to its success in digital marketing. Expanding its social media presence, Samsung provides customers and brand loyalists several chances to share their experiences with those in their circle.

Samsung YouTube Channel

To connect with the various segments of the population their products target, Samsung has social profiles on all of the major social networks, including

Facebook: 162M
Twitter: 12.5M
YouTube: 6.24M
Instagram: 4.5M

Samsung Facebook Page with 162 Million Likes

Moreover, Samsung has several profiles on each platform. For instance, Instagram has Samsung, Samsung India, Samsung UK, Samsung UA, Samsung Mobile and more.

The company adheres to the best digital marketing practices like SEO and quality content creation that solves customer problems.

Being a community-oriented brand that impacts audiences worldwide, Samsung introduces various marketing campaigns. The promising Samsung marketing strategy focuses on leveraging the power of exceptional marketing campaigns to promote its products and appeal to the audience.

Social media ads, sponsorships, and online advertising strengthened the brand. Some exceptional Samsung marketing campaigns are as follows:

#YouMake Campaigns: It brings up a global marketing platform for consumers to take the lead with device customization. It brings a better way of personalization via customized control enabled by SmartThings IoT solutions. The #YouMake campaign offers continuous services and virtual benefits, encouraging customer participation by utilizing the best metaverse platforms.
Growing Up: Another commercial on YouTube that made people reconsider their options. The company directly targeted its main competitor–Apple, and the video took the internet by storm.

Product, Price, Place, and Promotion–the 4Ps of the marketing mix constitute an integrated marketing model. Samsung’s marketing mix plan gives insights into the company’s success secret.

1. Product Mix

Delivering excellent results in recent years, Samsung products are well-known for their services and quick support. Samsung’s marketing mix in its product line is one of its major strong points. The products fall into the following categories:

Mobile phones
Televisions – LEDs, Plasma TV, LCDs, SMART TV, HDTV
Refrigerators
Air Conditioners
Washing Machine
IT – Printers, laptops, and accessories

2. Price Mix

Price mix is one of the strongest points in the Samsung marketing strategy. It offers two pricing schemes to satisfy its clients. The corporation adopts a price skimming tactic whenever it releases a new smartphone with the latest technology. Moreover, it reduces the price of that product when the competitors launch identical products.

3. Promotion Mix

Samsung attracts customers via advertising while employing the best tactics to push products through sales promotions.

The company employs several marketing vehicles both during the festive season and outside of it. It grants numerous discounts and incentives to business partners, encouraging them to sell Samsung products above the competition.

4. Place Mix

Samsung service dealers are responsible for corporate sales. Its selling point is its distribution. They distribute their goods via a single distribution business. They then distribute them to other locations.

SWOT analysis is one of the best ways to dive deeper into the Samsung marketing technique. It provides insights into Samsung’s strengths, weaknesses, opportunities, and threats concerning its marketing competitiveness.

Samsung’s Strengths

It has held a strong position in the smartphone manufacturing industry for years. Climbing the ladder, Samsung ranks first on the world’s best smartphone manufacturers list.
Significant investments in the innovative research and development sector have helped Samsung generate a diverse product offering compared to its competitors.
Its transition to a customer-centric management system has brought about revolutionary changes.
Its consistent efforts for sustainable development, such as the adoption of eco-packaging for TVs, give it the upper hand.
Samsung leads the development of advanced technologies like AI, 5G, automotive and robotics.
Lastly, it is rapidly expanding commercial marketing in India and China.

Samsung’s Weakness

Despite expanding its operations in Asia, the company relies heavily on American markets.
Samsung’s defective items, such as the Samsung Galaxy A20e and a malfunctioning foldable phone.

Samsung’s Opportunities

Samsung can achieve tremendous development in the smartphone industry by setting the standard with innovative goods like foldable phones.
As the world adopts 5G, Samsung has the know-how to capitalize on the opportunity.
The company can hire exceptionally skilled professionals using its brand image.

Samsung’s Threats

Samsung’s entanglement in controversies can jeopardize its business, such as the lawsuit filed by Apple for patent infringement.
Xiaomi, Apple, and Huawei stand as major threats and technological competitors who can outsmart Samsung.

Samsung’s revamped marketing programs and competitive strategy implementation have significantly contributed to its huge success over the years.

Performing continuous market research, adding new features, serving customer pain points and employing special efforts to reduce costs, Samsung has paved the way for its success from the very beginning.

Its global value increased by more than 200% in a short span ranging from 2003 to 2008.

Samsung took over Sony–one of the most valuable consumer-electronics brands worldwide. Consequently, Samsung’s sales reached $119 billion by 2009. When the company introduced Samsung Galaxy and leveraged the power of digital platforms for promotions and marketing, its revenue grew to $218 billion in 2018.

Today, Samsung stands 5th on Interbrand’s list of Best Global Brands with a brand value of USD 74.6 billion. It has witnessed a 20% increase in comparison to the last year.

Sparking creativity worldwide, Samsung is the most profitable tech company. The robust Samsung marketing strategy has made it one of the most valuable brands today. Its smart digital marketing tactics set an excellent example of how to revamp your online business as a digital marketer.

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Consumer Electronics

Samsung Electronics - statistics & facts

Leading smartphone vendor, strong table and smartwatch player, a towering presence in the display and semiconductor markets, key insights.

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Samsung Market Analysis: Business & Economics

Introduction.

Samsung is a mega-company, which has dominated various industries across the world. Although it is a South Korean company, Samsung has grown and ventured into diverse industries in South Korea, Asia, and other parts of the world. History of Samsung shows that it commenced as a trading company in 1938 and has tremendously grown and become a conglomerate comprising a considerable number of affiliates and subsidiaries. A notable feature of Samsung is its diversity because it has expanded into diverse industries and penetrated competitive global markets. According to Samsung (2015), Samsung has evolved from a minor trading company in South Korea to an excellent conglomerate, which has businesses in diverse industries.

Samsung has ventured in electronics, mobile, computer, construction, and insurance industries, hence, making it a conglomerate. The major subsidiaries and affiliates of Samsung are Samsung Electronics, Samsung Engineering, and Samsung Heavy Industries. Owing to its economic stance, Samsung is a very influential conglomerate in not only South Korea but also across the world. Essentially, Samsung has extensive markets globally because it offers diverse products, which satisfy different needs of customers. To enhance understanding of Samsung, this essay assesses kind of market, price elasticity of demand, income elasticity, competition, profitability, labour force, and SWOT analysis.

Vision and Mission

As a conglomerate, Samsung has set its vision and mission, which give it direction and goals. Exploration of Samsung’s vision and mission shows that they form the foundation of business strategies, which are effectively applied in the competitive markets. Categorically, the vision of Samsung is to be a digital leader by creating innovative products, which enrich the lives of people globally ( Samsung, 2015).

This vision has truly made Samsung a digital leader because it currently leads in the electronics industry. As a digital leader, Samsung is setting trends in the electronics industries, and it is giving tough competition to Apple, LG, HP, Dell, and Lenovo. Moreover, Samsung is among the leaders of construction and smartphone industries because it has affiliates and subsidiaries. Thus, the vision of Samsung is the cornerstone of its business strategies of creating quality products, venturing into new markets, and transforming the lives of people globally. In addition to vision, Samsung has a mission to exploit technology and talents in the creation of quality products, which have the capacity to satisfy human needs globally. Samsung devotes its resources in research and development of novel products by coming up with new technology and training its workforce. Hence, the mission is another cornerstone of Samsung because it directs activities that it undertakes on a daily basis.

Perfect Competition Market

Samsung operates in the market where it experiences perfect competition. As a conglomerate, Samsung has diversified into different industries owing to its competitive products, which dominate global markets. Fundamentally, a competitive market is a market where no single competitor dominates or has the power to set the quality of products and determine prices. The market of Samsung exhibits perfect competition because other competitors such as Apple, Nokia, Techno, Motorola, LG, Dell, HP, and Kodak are eying the same markets. These competitors offer fierce competition to Samsung by providing substitute products, such as computers, mobile phones, tablets, televisions, cameras, and other electronics.

Samsung is a tough competitor in the market because it offers quality, innovative, and unique products at affordable prices. Samsung’s products target both low-end and high-end customers in diverse global markets. Analysis of the market share of Samsung indicates that it enjoys extensive market share globally, which gives it a competitive advantage over its competitors. The chief competitor of Samsung in the smartphone and computer industries is Apple. However, Samsung outcompetes Apple in the electronics industry because it offers novel products and enjoys extensive market share globally. Therefore, it suffices to say that Samsung operates in a perfectly competitive market where prices and quality of products determine market share.

Price Elasticity of Demand

Samsung’s products exhibit price-elastic demand because their demand varies, according to the market prices. Prakashan (2008) defines price elasticity of demand as the sensitivity of customers to price changes of products. As Samsung operates in a perfectly competitive market, it uses a pricing strategy in outcompeting its competitors. Owing to stiff competition and availability of substitute products, customers easily change the nature of the products they consume, according to their purchasing power and options. For example, if Samsung increases prices of its electronics products, it will experience a concomitant decline in sales, as customers will shift their choice of products to other substitute products offered by Apple, Nokia, LG, HP, Dell, and Lenovo amongst other companies.

Samsung has an extensive market share across the world because it offers affordable products, which compete effectively with substitute products in terms of quality, creativeness, and uniqueness. Evidently, pricing is an integrated marketing strategy that Samsung and its competitors employ in penetrating competitive markets. In this view, Samsung’s products have price-elastic demand because their demand is sensitive to change in prices. Hence, Samsung keenly prices its products at affordable prices to make optimum sales and reap maximum profits.

Income Elasticity of Demand

The products of Samsung face positive income elasticity of demand because their consumption increases with an increase in the level of income among its customers. Specifically, the kind of income elasticity is high-income elasticity because they form part of luxuries and comforts. Prakashan (2008) state that high-income elasticity is the positive income elasticity of demand where an increase in income causes a concomitant increase in demand. In this view, given that Samsung offers digital products, their demand is subject to the purchasing power of its customers. Samsung has both low-end and high-end products to suit the needs and purchasing power of customers.

Customers in developing countries have low income, and thus, they can afford to purchase low-end products. In contrast, customers in developed countries have a high income, and therefore, they can afford to purchase high-end products. Moreover, digital products comprise luxuries and comforts, which people can only buy if they have excess money after satisfying their basic needs. Essentially, an increase in income implies that people have extra money to spend on luxurious products such as televisions, tablets, smartphones, fridges, and computers. Thus, Samsung’s products face high-income elasticity because its sales depend on the level of income among its customers.

The Closest Competitors

Samsung has the closest competitors in industries such as electronics, computer, mobile, and construction industries. In the electronics industry, Samsung competes with Sony and LG. These competitors offer products such as televisions, hoofers, speakers, disc video players, fridges, cameras, and other household electronics. In the global markets, the products of these competitors have dominated, and hence, they offer stiff competition for Samsung’s products. In the computer industry, competitors of Samsung are Apple, Dell, HP, Lenovo, Toshiba, and Acer. These competitors manufacture tablets, laptops, and desktops, which are major forms of computers in the global markets.

Moreover, Apple offers a unique software, operating systems, such as MacOS and iOS, for computers and smartphones, respectively, hence, giving Samsung a tough competition. In the mobile industry, Samsung has the fiercest competition because of the emergence of smartphones. Smartphone companies such as Nokia, Apple, Techno, Motorola, and HTC are the closest competitors of Samsung. Apple is the major competitor of Samsung because it offers iPad and iPhone, which are unique smartphones due to its operating system and design. In the construction company, Samsung Heavy Industries competes with Mitsubishi Heavy Industries, China Shipbuilding Corporation, and Hyundai Heavy Industries, which are the closest competitors of Samsung in the shipbuilding industry.

Substitutes and Complements

As Samsung operates in a perfectly competitive market, it has substitutes, which affect its demand in the global markets. Essentially, Samsung has diverse forms of substitutes, which vary according to the industry. In the electronics industry, the substitutes of Samsung’s products such as televisions, fridges, speakers, hoofers, cookers, and other household items exist. Companies such as LG and Philips offer these substitute products in plenty, and thus, customers can easily shift their preferences when supply, prices, and quality changes become unfavourable. In the smartphone industry, companies such as Techno, Apple, Nokia, Motorola, and HTC offer substitute products, which effectively influence the sales of Samsung’s products. Since most smartphone companies rely on Android technology, they generate substitute products, which are similar to Samsung’s products.

Apple uses iOS, which is a unique mobile operating system, hence, creating novel substitute products. In the computer industry, Samsung manufactures complementary products. Fundamentally, Samsung manufactures hardware for smartphones and computers but relies on software from Google and Microsoft. Android software from Google is a complement product of smartphone hardware of Samsung, while Windows is a complementary product of computer hardware. Therefore, Samsung has both substitutes and complements in the electronics, computer, and smartphone industries.

Increasing Demand for Products

The demand for Samsung across the world is increasing tremendously, owing to their uniqueness, novelty, quality, and affordability. The products of Samsung Electronics, a major subsidiary of Samsung, dominate global markets. Samsung has specialized in the provision of these products because it fetches a significant portion of profits when compared to other subsidiaries. The electronics products include televisions, fridges, cookers, speakers, hoofers, radios, and disc video players, among other products. Given that these products are household products, they are in high demand in every household. Moreover, the affordability of these products has given Samsung a competitive edge in global markets.

Both high-end customers and low-end customers can purchase electronics products because Samsung has differentiated products into diverse market segments, according to the needs and economic level of customers. In addition, smartphones comprise products that are in high demand in the global markets. The emergence of Android technology, coupled with microchip technology of Samsung has boosted the manufacture of smartphones with enhanced capabilities. These smartphones are in high demand because people require them in accessing the Internet and performing a plethora of activities. Social media subscribers, bloggers, and businesspersons heavily rely on the smartphones in accessing the Internet.

Labour Force

Samsung prides itself of talented workforce, which it has trained to create innovative and unique products, which are competitive in the global markets. According to Samsung (2015), talented and well-trained employees are integral asserts, which boost the capacity of Samsung to generate innovative and unique products. Samsung has allocated immense resources in recruiting and training of talented workforce.

The world of technology is very dynamic in that it requires constant training of workforce to keep abreast with technological advancements in diverse industries. According to Sodhi and Lee (2007), Samsung has established training centre, where it trains its employees to gain new knowledge and skills to enhance competitiveness of the company in researching and developing novel products, which can improve the lives of people. In the aspect of marketing, the training centre offers multinational courses, which enable expatriates to gain multicultural competencies so that they can aid in resolution of cultural barriers, which hinder marketing and usage of Samsung’s products. Equipped with multicultural competencies, expatriates can effectively represent Samsung in various cultural backgrounds. In this view, the training of employees increases productivity and consequently reduces the costs of operations.

Profitability of Samsung

Since its inception in 1938, Samsung has continued to grow by expanding its operations and venturing into new markets. The profitability of Samsung is evident because it has risen from being a minor trading company to being a conglomerate. Currently, Samsung is the most profitable company in the electronics, computer, and smartphone industries. According to Danova (2013), Samsung is the leading profitable company with $7.6 billion profit after overtaking Apple with $7.5 billion profit. Although Samsung offers cheaper products than Apple’s products, its profitability emerges from the high sales volume because Samsung enjoys extensive market share. Moreover, Samsung supply chips and semiconductors to electronics companies such as Apple, Kodak, Sony, and LG. Samsung has patented chips and semiconductors for it has exclusive rights of manufacturing and selling them to diverse electronics companies. In this view, Samsung has monopolized microchip industry. Samsung has diverse companies in form of affiliates and subsidiaries, which cumulatively magnify the profitability of Samsung.

Critical analysis of profitability shows that it is sustainable because Samsung has a matchless market share. Its close competitor, Apple, has a limited market share, which is incomparable to that of Samsung. Owing to the fact that Samsung offers cheap products in diverse industries such as electronics, computer, smartphone, and construction industries, it has attracted many customers and maintained them. In this case, the ability of Samsung to attract and maintain customers enhances sustainability of its profits.

According to Danova (2013), it is predictable that Samsung will dominate the digital industry so long as it offers quality and innovative products, which are affordable to customers in diverse market segments. As Samsung values its human resources, it recruits and trains employees to enhance their creativity so that they can come up with competitive products. Hence, well-trained and talented employees contributes to the sustainability of profits that Samsung makes in its diverse affiliates and subsidiaries. In addition, Samsung has not exploited all markets in the developing and developed countries, hence, there is still an immense market to exploit and expand market share. In terms of diversification, Samsung is a notable conglomerate, which easily ventures into new markets and establish robust niches.

How Samsung Can Increase its Profits

As Samsung enjoys extensive market share, it can increase its profits through value-creation strategy. Analysis of business strategies that Samsung employs in augmenting its profits shows that it mainly exploits product differentiation and diversification of its operations. In product differentiation, Samsung predominantly offers electronics products, but it has diversified into computer, smartphone, and construction industries.

Currently, intense competition is raging in the electronics, smartphone, and computer industries, and thus, threatens to shrink already established markets of Samsung. In this, view, Samsung should take advantage of its extensive market share by employing value-creation strategy in maintaining the established markets and exploiting potential markets globally. Through value-creation, Samsung will be in a position to only to maintain its current market share, but also to venture into new markets. Therefore, to remain competitive and maximize profits, Samsung should undertake value-creation by maintaining its established market share and diversified industries.

Other: Samsung’s SWOT Analysis

Samsung has notable strengths such as extensive market share, affordable products, diversified businesses, and talented employees. The extensive market is the first strength of Samsung because it boosts sales and increases profits considerably. Currently, Samsung is a conglomerate, which dominates diverse markets across the world. The second strength of Samsung is that it offers affordable products, which low-end customers can afford to purchase. The affordable products have enabled Samsung to venture markets that are in the developing countries, where people have low incomes.

Diversified businesses comprise the third strength of Samsung for it has successfully ventured into electronics, computer, smartphone, and construction industries with a view of increasing profits. The existence of talented and well-trained employees comprise the fourth strength of Samsung, which has boosted its innovative spirit and creation of competitive products. Samsung ensures that it recruits talented employees and train them appropriately. However, the weaknesses of Samsung are it violates business ethics and overlooks already established markets. Evidently, Apple has sued Samsung for infringing on its patents, and hence, it has affected the reputation of Samsung globally. Although Samsung is notable for establishing new markets, it does not do much to maintain them.

Brand reputation is an opportunity, which Samsung should exploit in diverse markets. Brand reputation has created loyal customers, who are ready to purchase products from Samsung because they are quality, affordable, and unique. Hence, diversification into new industries or venturing into new markets is easy for Samsung because of brand reputation and customer loyalty. Emerging economies of the developing countries offer immense markets for Samsung’s products because they are relatively unexploited by competitors. However, Samsung experiences massive threats in the computer, electronics, and smartphone industries. Competitors such as Apple, HP, Toshiba, Nokia, Techno, and Dell threatens sustainability of market share and profit margins. Additionally, rapid technological advancement is another threat that Samsung is facing in the current world. The rapid changes in technology outdate innovate technologies of Samsung, and hence, making them obsolete.

Analysis of Samsung shows that it is a company with great vision and mission in the digital industry. Since its inception in 1938, Samsung has managed to grow and expand into diverse industries, making it one of the largest conglomerates globally. As it operates in a perfectly competitive environment, its products exhibit price-elastic demand and high-income elasticity. The closest competitors of Samsung are Apple, Dell, Nokia, Lenovo, Toshiba, Lenovo, and LG.

To increase its profits and reduce costs, Samsung recruits talented employees and train them appropriately. Evidently, the products of Samsung are in a high demand, and thus, generating massive profits. The extensive market share and diversity of industries makes profitability of Samsung sustainable. Ultimately, the strengths of Samsung are extensive market share, affordable products, diversified businesses, and talented employees, while the opportunities are brand reputation and emerging economies.

Danova, T. (2013). Samsung is now a more profitable company than Apple . Business Insider. Web.

Prakashan, N. (2008). Managerial Economics . New York: Cengage Learning. Samsung: Values and Philosophy. Web.

Sodhi, M., & Lee, S. (2007). An analysis of sources of risk in the consumer electronics industry. Journal of the Operational Research Society, 58 (1), 1430-1439. Web.

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BusinessEssay. (2023, January 10). Samsung Market Analysis: Business & Economics. https://business-essay.com/samsung-company-business-and-economic-analysis/

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BusinessEssay . "Samsung Market Analysis: Business & Economics." January 10, 2023. https://business-essay.com/samsung-company-business-and-economic-analysis/.

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