Samsung was founded by Byung-Chull Lee on March 1. 1938. in Taegu. Korea. with 30. 000 won. Initially his concern focused chiefly on trade export. selling dried Korean fish. veggies. and fruit to Manchuria and Beijing. In little more than a decennary. Samsung-which agencies “three stars” in Korean-would have its ain flour Millss and confectionery machines. its ain fabrication and gross revenues operations. and finally germinate to go the modern planetary corporation that still bears the same name today.
For over 70 old ages. Samsung has been dedicated to doing a better universe through diverse concerns that today span progress engineering. semiconducting materials. skyscraper. works building. petrochemical. manner. medical specialty. finance. hotels and more. The flagship company. Samsung Electronics. leads the planetary market in hightech electronics fabrication and digital media. Samsung move to spouse with Google for their Android OS and the recent series of Smartphone has enormously brought their gross to greater highs. In 2011. the leading Samsung GALAXY S II sold more than 10 million units worldwide. accomplishing the No. 1 planetary market portion for smartphones ( 2011 Samsung Electronics Annual Report ) .
Approx 94. 5 % of Singapore family has a manus phone in 2008. Likely the per centum should be higher now. The maps of a manus phone have evolved greatly in this decennary. From agencies of communicating via SMS and calls. manus phone or instead Smartphone serves consumers a far scope of maps today. A Smartphone offers more progress computer science ability and connectivity so conventional nomadic phone. By and large the established Smartphone trade names in Singapore are Apple. Samsung. Nokia. HTC & A ; Motorola.
The rapid growing and success of Samsung are the grounds why our group chose this trade name. We hope through in-depth research and analysis can we better understand the success factors behind this quickly sprang trade name. peculiarly in the Smartphone industry.
2. SURVEY RESEARCH
Survey research attack is done via questionnaire aiming general populace. It can be used to garner information about people’s cognition. attitudes. penchants. or purchasing behavior for Smartphones. Basha and Harter ( 1980 ) province that “a population is any set of individuals or objects that possesses at least one common feature. Through our study. we sample a population which we hope can be representative of the Singapore consumers. This attack is selected by the group because it is the most widely used method to collected primary informations to run into our research aims. Through the primary informations collected. we hope to pull certain information through analysis on consumer behavior on the purchase of smartphones.
The intent of this study is to understand our respondents behaviour and attitude towards smartphone. We segmented the questionnaire into 4Ps viz. merchandise. monetary value. topographic point and publicity. We hope that with this study happening we can better understand the demands of smartphone users. why they will or will non be utilizing and besides the ground why others are non utilizing Samsung smartphone and the likeliness of them utilizing Samsung in future. With the findings. we hope to pull conclusive informations and do recommendations.
2. 2 Contact Method
We personally gave out the study forms as shown in Appendix 1 to the general populace at Ang Mo Kio Hub and Nanyang Polytechnic. We have given out to 41 respondents and used 30 of them for analysis ( 11 were deemed as nothingness due to deficient information or non completion )
Sampling Plan & A ; Survey Questions
A section of the population selected for marketing research to stand for the population as a whole. The study is to be conducted with a trying size of 30. The inquiries were limited to 10 to avoid being excessively drawn-out ensuing in weariness respondents. First portion of the study included information refering respondents’ background such as gender & A ; age which so we proceed to garnering information like consumer penchant. Five point Likert
graduated table was used to mensurate few variables.
We will further depict the client section for Samsung smartphones utilizing demographic. psychographic and behavioral factors.
3. 1 Demographic factors
The targeted section is for both male and female. likely age between 14 and 55. skewed more towards the Gen Y. The state or country should hold good web ( Eg: 3G. 4G. wireless connexion ) to guarantee optimum use of Smartphone characteristics.
3. 2 Psychographic factors
There are fundamentally three sections of users loosely in which Samsung wishes to aim ; amusement focused. communication-focused and information-centric users.
The entertainment-focused users are by and large younger group which see a nomadic device as a lifestyle pick. and they’re willing to pay excess for a device that’ll aid maintain them entertained. Entertainment can besides include things like societal messaging with friends. facebook and networking. The communication-focused users are extraverts who live to pass on with others. They’re frequently in people-facing occupations like gross revenues. They’re willing to pay excess for a nomadic device that lets them maintain up with others in multiple ways. Electronic mail. SMS. voice. conferencing. picture naming — fundamentally. anything communication-related is obliging to them. and they will pay supernumeraries for a device that does it good. The information-centric users are more introspective. Rather than concentrating on their duologue with others. they tend to make a batch of believing on their ain. and want their nomadic device to be a memory addendum and a agency to capture new information. They’re willing to pay excess for characteristics that help them gaining control and retrieve thoughts and information.
3. 3 Behavioral factors
Past users of Samsung ( Be it handphone or other contraptions ) will probably buy Samsung once more due to acquaintance and if they have had pleasant experience with the phone. the likeliness of redemption is high.
4. Selling Mix
4. 1 Merchandise
a. 3 Degrees of Merchandise
A merchandise is usually defined as the physical points that consumers purchase. But really the nature of a merchandise can be farther explored in 3 degrees. They are The Core Product. The Actual Product and The Augmented Product which are farther explained in Appendix 3.
Smartphone industry is turning quickly with many new trade names coming in for a piece of market portion each combat towards carry throughing consumer turning wants. Understanding the 3 degrees of merchandise can better enable Samsung to place itself.
Based on Kotler’s Three Level of Product Framework. the Samsung smartphone nucleus merchandise is giving consumers tool of communicating. Through merchandise distinction of smartphones. consumers are given a assortment of pick for the existent merchandise as illustrated in Appendix 3. Samsung’s scheme will guarantee it is already at the coating line when consumer gustatory sensations change hence it produces a broad merchandise scope for every gustatory sensation and demand.
B. Consumer Product
Samsung smartphone is categorised as a Shopping Product. Consumers will compare on the monetary value. manner. map. quality and suitableness of the smartphone due to the multiple trade names and theoretical account available in the market. Having achieved odd planetary fight in hardware. Samsung has been concentrating on heightening its package capablenesss in user interface. user experience. and design and trade name consciousness. To stay competitory. Samsung must continuously develop quality and advanced smartphones to remain in the lead.
c. Brand Development Strategy
The most hard measure in developing a selling program is usually the procedure of developing a trade name scheme. It’s frequently the biggest challenge face by most concerns but it is an of import measure in making the company individuality. In the smartphone market. Samsung stigmatization still falls behind Apple. However Samsung in recent old ages has been really aggressive and quickly deriving market portion. We will travel on to discourse Samsung trade name development scheme.
‘While many companies that sponsor events are focused on hiking their trade name consciousness. Samsung Electronics looks at things a little otherwise. The Korean giant – a major patron of the recent Youth Olympic Games ( YOG ) –
says that “brand preference” is a better index of whether its investing has paid dividends. ’ ( The Straits Time. 13 Sept 2010 )
Samsung sponsorships in Youth Olympic Games ( YOG ) and the approaching London 2012 Olympics will surely supply strong profile and trade name power. Through sponsorship in the Olympics. Samsung seeks to. through user experience boost up their trade name.
d. Survey Result on Target Segment Perception ( Product )
From our study findings. 94 % of the respondents are smartphone users with with 2 respondents one non-smartphone user and one unsure. We have checked with the diffident respondent and respondent was utilizing a smartphone bought to her by her girl. The strong per centum of smartphone users 94 % as per study consequences showed a strong And 60 % of the respondents responded they are likely to buy Samsung for their following phone.
4. 2 Monetary value
a. General Pricing Approach
Monetary value will ever be the cardinal concern of consumers’ before doing any buying determination ( Smith and Carsky. 1996 ) . The degree of monetary value is found to positively impact behavioural purposes chiefly because monetary value establishes image of the trade name in the eyes of the consumers ( Aaker. 1991 ) . The monetary value set for any merchandise including smartphone is important as it straight impacts on consumer purchase.
The company’s scope of low- to high-end smartphones caters to about every budget. Based on client perceived value and market offerings. Samsung adopts a value based pricing scheme. ‘If there is a consumer for it. we will offer the merchandise. says Younghee Lee. senior vice-president of gross revenues and selling for Samsung’s Mobile concern. ’ ( The Business Time. 17 March 2011 )
B. Monetary value Compared to Rivals
Samsung stays on a competitory monetary value and with its huge merchandise line ; every monetary value scope is met with a merchandise. We have used the recent launch of Samsung S3 Smartphone with its rivals as illustrated in Appendix 4. Samsung S3 smartphone is considered the high terminal merchandise series in the smartphone market and we have chosen close rivals chiefly Apple iPhone 4S and HTC One. From the comparing. though Samsung S3 is the latest merchandise launch amongst the three phones. it still stays at a less than $ 100 monetary value difference with rivals. The monetary value Samsung offers is really near to its rivals giving it an border over them.
c. Product Mix Pricing Schemes
The merchandise mix is the aggregation of merchandises and services that a company chooses to offer its market and pricing schemes based on what objectives the company had set for them.
Samsung’s merchandise scheme is to make Android devices across changing monetary value points and flood the market through every bit many bearers across the universe as possible. The original Galaxy S was sold through approximately 240 different planetary sellers.
Product-line pricing involve puting monetary value for different merchandises within a merchandise scope at different monetary value point is the scheme Samsung applied for smartphone. For illustration. Samsung had a batch of smartphones merchandises with different design and characteristic at different monetary values as shown in Appendix 5. The greater the characteristic and benefit obtain. the higher the consumer have to pay.
d. Price Adjustment Strategies
A set of schemes used by companies to set their basic monetary values to account for assorted client differences and altering state of affairss. The commonly usage schemes are Discount and Allowance Pricing. Segmented Pricing. Psychological Pricing and Promotional Pricing.
In the smartphone industry. price reduction and allowance pricing accommodation scheme is normally used. This scheme allows companies to set their basic monetary value to honor clients for certain responses. such as early payment of measures. volume purchases. and off-season purchasing. This scheme can come in many signifiers.
Seasonal price reduction is a monetary value decrease to purchasers who buy ware or services out of season. For illustration. when Samsung Galaxy S3 is launch. the monetary value of Samsung Galaxy S2 was reduced. In this scenario. older theoretical account of smartphone is the same as off season merchandises. Seller will offer price reduction to promote the purchaser to buy off older theoretical accounts.
Allowances are another type of decrease from the list monetary value. For illustration. trade-in allowances are monetary value decreases given for turning in an old point when purchasing a new one. Trade-in allowances are most common in sellers selling smartphone.
e. Survey Result on Target Segment Perception ( Price )
Through our study findings. most respondents rated monetary value as ‘most important’ factor to see when purchasing a smartphone.
An interesting thing to observe is 40 % of the respondents mentioned they will
pay up to $ 300 for a smartphone and 30 % mentioned they are willing to pay more than $ 1500 for a smartphone. It is hence of import to pull specific informations to understand the demands and wants for those metameric clients.
4. 3 Topographic point
a. Number of channel degrees
Topographic point is besides known as channel. distribution or intermediary. It is the mechanism through which goods are moved from the maker to the consumer. We have analysed Samsung smartphone distribution as shown in Appendix 6.
Samsung practises indirect channels utilizing selective distribution. The channel contains one to two intermediary degrees. Through the major telephone company and authorized traders. Samsung distribution in Singapore is really intense. and this is precisely what Samsung wants. One can buy a Samsung Smartphone at every vicinity in Singapore. All authorized distributers were given merchandise preparation & A ; support whenever needed. All telephone company ( SingTel. M1. Starhub ) besides have dedicated staff to supply preparation & A ; desk support to consumers should they necessitate aid on how to utilize the smartphones.
B. Channel strength
From the Appendix 6. the distribution channels are intense deviating to over 300 mercantile establishments doing it easy accessible for consumers. The broad and wide channels are one factor for Samsung success.
c. Number of mercantile establishments. location
The mercantile establishments for Singapore are estimated to be over 300. with at least one mercantile establishment in every vicinity and the handiness to purchase on-line with free bringing.
d. Survey Result on Target Segment Perception ( Place )
From our study consequences. 99 % of the respondents bought their phone through the assorted channels with 49 % through telephone company and traders. Consumers prefer purchasing phones with contracted lines and this might propose Samsung can see giving a better inducement to telcos and traders to further hike up their gross revenues.
4. 4 Promotion
a. Selling Communications Aims
Marketing communications aims is paramount to selling success. If there is no aim. than there will be no manner to mensurate the selling success. After all. an aim is the end intended to attained. which should be come-at-able and can be measured.
Understanding the Product Life Cycle ( as illustrated in Appendix 7 ) of each merchandise can enable the company to react with the marcom aims. Though Samsung started its Smartphone in 2008. in our sentiment the phase for Samsung smartphone is at its adulthood phase in the Singapore context. During launch of a new smartphone. the aims will be more enlightening like:
Stating market about the new merchandise
Explaining how a merchandise plant
Suggest new utilizations for a merchandise
Marketing attempt by Samsung is usually conducted for launch of new merchandises. As for their existing merchandises. it is conducted together with their sellers like IT fairs and Electronic carnivals. The selling communicating aims for these attempts will be different from a new launch. The aims these attempts are:
Encourage trade name exchanging
Carrying clients to buy now
Build trade name penchant
Keep merchandise in consumers’ head
Maintain top of head consciousness
Attractive monetary values of good merchandises are non plenty for a concern to bring forth maximal gross revenues and net incomes. The benefits of merchandises have to be communicated to clients. In selling. this is normally known as “promotion” .
The entire selling communications programme is called “promotion mix” . Elementss of publicity mix include Advertising. Gross saless Promotion. Public Relations. Personal Selling and Direct Marketing.
The elements of publicity mix used by Samsung smartphone are: 1 )
Deliver marketer’s message utilizing any paid signifier of mass media mercantile establishments. it involve non-personal presentation and publicity of thoughts. goods or services by an identified patron. The 3 intent of advertisement are Informative. Persuasive and Reminder.
Samsung has been utilizing all three intents for their advertisement run in different juncture. Let’s expression into Samsung single advertisement intent and aims.
Gross saless Promotion
Gross saless publicities usually refer to promoting clients to react or set about some activity utilizing some signifier of inducements through particular short-run techniques.
Some of the gross revenues publicities technique used by Samsung smart phone is:
a ) Joint publicity with Major Telco
Samsung smartphone frequently had joint publicity with major telephone company to hike up the gross revenues of the smartphone. For illustration the publicity that was in the Starhub functionary site that offers Samsung Galaxy S3 at different monetary value depending on the program sign up or the Samsung Galaxy S2 at a low monetary value with 2 old ages program. ( As shown in Appendix 8 )
B ) Joint Promotion with Major Electronic Mega Store
Samsung ever conduct joint publicity with major electronic mega shop during ad-hoc publicity carnival. Premiums like
extra SD card. screen defender. shell or 0 % involvement
episode program is frequently used during such just. This publicity is used to heighten the gross revenues by offering some fringe benefits and besides to clear stock for the older theoretical account smartphone. ( As shown in Appendix 9 )
Survey Result on Target Segment Perception ( Promotion )
Through our study findings. respondents rated ‘current nomadic program expired’ as the most of import factor which influence their purchase of smartphone. This might be an of import index for Samsung to hold intense bind up publicities with the telephone company to offer consumers attractive rates for those programs that have expired.
A important per centum of respondents besides mentioned the launch of new smartphone is influential in doing the purchase. These are likely the consumers who are willing to pay a premium monetary value for the latest launch of smartphone. Samsung can use this and through advertisement for illustration ; telecasting commercial. newspaper advertizements. cyberspace announce the new launch in a tasteful mode to pull this section of consumers.
Constantinides ( 2006 ) emphasizes that marketing mix is a model of the dominant selling direction paradigm to place market development. environmental alterations and tendencies. Several surveies confirm that the 4Ps is so the sure conceptual platform of practicians covering with operational selling issues ( Romano and Ratnatunga. 1995 ; Coviello et Al. . 2000 ) . The broad credence of the 4Ps among field sellers is the consequence of their profound exposure to this construct during college old ages. since placing the 4Ps as the governable parametric quantities is likely to act upon the consumer purchasing procedure and determinations ( Brassington and Pettitt. 2003 ; Soekartawi. 2005a ) .
We conducted the study to measure different sections of customers’ attitude toward 4Ps. It is expected that with this study findings with the primary information we have collected can we better understand and supply recommendation for Samsung to develop greater apprehension of how to function bing and possible client based on 4Ps construct for a footing to run into profitableness of their concern. Through our study. we realised a really of import tendency ; about 94 % of the respondents carry a smart phone. Assuming the latest information from Singstat saying 95 % of Singapore family holding a handphone. and with that equate to 94 % of them holding a Smartphone. the entire volume of smartphone market is estimated to be minimal 3-4Million in Singapore entirely.
Current users of Samsung are by and large satisfied with the characteristics and maps of the phone. However as Samsung faces close competition with its rivals. Samsung needs to continuously come out with new invention and engineering to remain in the lead. As Samsung is in its adulthood phase of the merchandise life rhythm. Samsung needs to distinguish itself from rivals.
However the slippery portion is to place merchandises across different. yet overlapping. market sections. It is of import to observe. nevertheless. that since some consumers may belong to both sections. positioning claims for a merchandise should ne’er conflict. To avoid confounding consumers. it may be necessary to do a wide entreaty to both sections and so alter the placement somewhat within each section. As Samsung smartphone bash has many fluctuations. come close 24. the placement within each scope should be alone and clear to consumers.
Overall we feel that Samsung has done good to come this far and remain in the lead. The advantages Samsung has over rivals are the broad distribution channels and the huge merchandise fluctuations. Samsung must go on to guarantee its distributers and telephone companies are given attractive inducements which in bend can convey in non Samsung users. Samsung should besides concentrate on edifice trade name trueness. which will guarantee retain of yesteryear and current Samsung consumers. Their primary end should be to keep their current market portion and widen the merchandise life rhythm.
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