Executive Summary
Samsung electronics has developed Samsung Galaxy Note 20 Ultra and is looking to prepare a marketing plan. This product has successfully sold initially in different markets. However, the current state of the mobile phone industry is not favorable. Marketing mix strategies of the companies are to be altered or changed by using the customer behavior profile. The firm is using product quality and innovation as a key product strategy. Skimming and competitive pricing strategies have been executed to increase sales. A single distribution channel in the single region is used. Traditional promotional tools are used by the company to attract customers. However, the latest industry analysis indicates some threats to the company, as far as Samsung Galaxy Note 20 Ultra is concerned. For Instance, sales of mobile phones in the market are decreasing due to competitive factors. Accordingly, product, price, place, and promotional strategies have been presented for the company to get the product in the limelight.
Introduction
Samsung Galaxy Note 20 Ultra needs an effective marketing plan. The competitive landscape has compelled the company to review the customer behavior profile and conduct market research. Making new marketing strategies is vital to be relevant in the mobile phone market and enhance the visibility of better positioning. Samsung electronics portrays a good reputation due to its high brand image and the quality of its electronic products. However, marketing strategies are to be reviewed and altered to make these products successful and relevant in the long run.
i. Company/Organization
· Description of size, location, the brief history
Samsung Electronics is a multinational South Korean Company. This company is selling an immense range of products for customers around the globe. The company was founded in 1969. Headquarter of the company is in the Samsung Digital city, Suwon, South Korea. This company operates in different parts of the world. The revenue streams of the company are quite high compared to its competitors. The size of the company’s business can be derived from its revenue segments. For Instance, Samsung is dealing with four main product segments. These segments are consumer electronics, semiconductors, IT/Mobile devices, and LED/OLED panels. The revenue from the IT’/Mobile devices was $92.2 billion. However, in 2016, the revenue was $48.2 billion, which is a huge shift due to the competitive landscape and impact. In 1969, the company was established as the Samsung group. The company started its business with electrical and electronic appliances from 1969 to 1987. From 1988 to 1995, the company started making mobile phones. However, the quality was not up to the mark, and it led to poor sales. After 1995, the new technological era of the organization started. The company implemented the change strategy to embrace or develop the technology to beat Sony, which was the world largest electronics company. Now, it is one of the best electronic appliance sellers in the world, and the mobile phone is a prominent segment.
· Mission
“The mission of the company is to be the best digital company.”
Through efficient production and management processes in this contemporary business era, the company intends to come up with extraordinary electronic products, which can lead towards the technology leader, trusted and responsible company.
· Vision
“The vision of Samsung electronics is to lead the digital convergence movement.”
The company aims to identify issues or challenges that people face. Through modern technology integration, the firm aims to become a market leader in the future electronics market with some remarkable solutions.
· Company Goals
- The main goal of the company is to produce the best technological products that can lead towards customer satisfaction
- Another prominent goal of the company is to sustain the leadership position and become a top-ranked company in the long run.
- The company always wants to be profitable in the competitive market to expand the business in regions, which are undone.
- The goal of the company is to gain and sustain a competitive advantage in the mobile phone market.
· Core Competencies and Sustainable Competitive Advantage
Samsung electronics contain different core competencies. For Instance, the main core competencies of the company are the creation of the group of creative people. The company intends to shape the creative internal workforce to produce innovative and creative products for customers. Technology integration has become a prominent core competency of the company. Through modern technology integration, it seems easy for the management to gain and sustain the competitive advantage. The value of the customer is to be created through the high-quality product segments. Customers want speed and quality to create a positive perception. An innovative culture in the company is also a core competency. People are emerging in the innovative culture to streamline create and innovative ideas (Li & Gongming, 2018).
Due to technology, innovation and an immense range of products, Samsung has become the market leader, and it causes the sustainable competitive advantage. It is a fact that the company is committed to becoming the top-ranked company in the technology market, and it creates a positive impact on the sustainable competitive advantage. In the competitive landscape, the firm has contained the strong brand image. It is also one of the prominent competitive factors. The marketing process is a key dimension of the company. Creating the effective branding strategy and streamlining the positioning process for each product is a good approach to get an edge in an intense rivalry. Branding and positioning are two major elements of the marketing process, which make the product inimitable for other rivals. Therefore, the sustainable competitive advantage is quite visible in the competitive market (Keller, 2013).
Now, the company has developed the Samsung Galaxy Note 20 Ultra. There is a need for an appropriate marketing plan or strategy to position better in the minds of customers. The marketing strategy or plan is to be executed perfectly to create an impact on customers and the return on investment. First, the company has to focus on 5P’s. It can help to derive several products and market insights and help the management of the company to come up with an effective marketing plan.
ii. 5 P’s:
· Product (description and specifications)
Samsung Galaxy Note 20 Ultra is launched by the company in August 2020. It is a high-quality Smartphone for customers. It includes a 1.7GHz OCTA-core processor with 6 GB Ram. The purpose of the company is to produce and launch this product to enhance the user experience regarding speed and quality. It contains 128 GB internal storage, which is comparatively high as compared to other Smart phones. The product specification makes it different and unique. The product specification of this product is as under
| Body | |
| Display | Dimensions161.9 x 76.4 x 8.8 mm
Weight: 201 g Build: Gorilla Glass 5 SIM: Single or Hybrid Dual SIM |
| Memory | Ram: 6GB
Internal Storage: 123GB |
| Platform | Operating System: Android 8.1 (Oreo)
Chipset: Exynos 9810 Octa |
| Camera | Back: 12 MP
Front: 8MP |
| Features | Sensors: Iris fingerprint accelerometer, gyro, proximity, compass, barometer, scanner, heart rate |
| Battery | 4000 MAH battery |
| COMMS | Bluetooth, GPSW, USB, Radio, WIFI |
| Colors | Metallic copper, midnight black, lavender purple, ocean blue |
It is a great development of the Samsung Company in the Smartphone market. S series mobile phones are also in the limelight. However, the demand for this phone is increasing due to the fantastic battery timing, advanced Bluetooth, and remarkable speed. Instead of focusing on the design of this product, the firm focused on battery and displayed along with some extraordinary features. With a minimum price difference, the firm wants people to enhance the mobile phone experience and create a positive perception. It is a result of remarkable innovation and creativity, and it is going to create hype in the competitive market (Schmitt & Scharf, 2016).
· Price (How much consumers pay)
It has been revealed that the company is using the skimming and competitive pricing strategy in the mobile phone market. The company has justified these two pricing strategies due to the immense range of customers around the globe. The firm has already created the positive perception about its products due to the quality, differentiation, reliability, brand image and sustainability. It is a fact that customers want to pay high for these high-quality products. Thus, it seems a great chance for the company to generate high revenue streams through this pricing strategy. For the new product, the company aims to contain the high price of this product. After perceiving the positive response of customers and generating high revenue through sales, the intention is to reduce the price. Interestingly, this pricing strategy is set by the firm to integrate with the customer psyche. Customers want to depict their social status by paying high for this product.
On the other hand, competitive pricing can also be used by the company after taking benefits from the skimming pricing strategy. Observing the pricing strategy of competitors is a good approach to set the price. It seems the good pricing tactic by the company to convert the customers and increase sales. The price of the Samsung Galaxy Note 20 Ultra is $999.99. It indicates the skimming pricing strategy.
· Promotion
The company usually streamlines the new product and its launch through the local media. It is a fact that this product is advertised through integrating with electronic and print media. The specifications of products are mentioned in a comprehensive content. On the other hand, on electronic media, the firm is using celebrity endorsement as a key trait to advertise the product. In the promotional process of this product, the company has used hoarding and posters in different cities. Traditional and modern promotional techniques trigger the promotional process of the company, and these are quite impactful. Samsung intended to come up with brand ambassadors in different countries. It has been revealed that the Samsung Company uses 5% revenue in the promotional activities on mobile phones. Press releases, trade publications, and articles are effective options for the company to advertise, streamline or promote the Samsung Galaxy Note 20 Ultra
· Place (Where is the product/service bought and sold?)
The Samsung Company operates in different countries. These countries are South Korea, Japan, Malaysia, Iraq, Iran, Kuwait, Saudi Arabia, UAE, UK, Algeria, USA, Thailand, India, Bangladesh, Vietnam, China, Italy, Poland, Germany, Russia, Canada, and Mexico. Interestingly, the company intends to distribute this new product to all these countries. However, the firm is focused on the single distributor in major cities. Finding and integrating with the distributor in major cities, which can engage all electronic retailers is the best approach. The product is also to be sold through 55 sales offices in different parts of the world. The global distribution network of the company is working effectively, especially in Asian and Africa to reach customers and increase sales. Despite having the sales offices, the pertinent distribution strategy for this new product is to use single distributors that can create retailers. The purpose is to make this product available to customers at any cost.
· People (employees/staff)
The role of employees in making this new product is quite visible. An employee comes first in this Company. In an innovative culture, employees are working to find problems in different existing Smartphone to provide better solutions to customers. People like to streamline issues and always come up with the best product for customers. The innovative workforce is an asset of this company and without this, this new product development is impossible. The development of this new product can be aligned with customer perception. Employees or people in Samsung are the problem solvers. The company has created an innovative culture and arranged the training and development process to help people develop skills and retain the best talent. Samsung Galaxy Note 20 Ultra is made by a team of experts, and they are still working hard to come up with continuing improvements in the product line. People are provided the value by the company, and they provided the value for customers.
iii. Situation/Environment Analysis
· SWOT Analysis
Strengths
The Samsung Company has a high brand image, and it is the biggest strength. People usually depict positive perception due to the brand image and reputation of the company in the mobile phone market. Also, the high research and development process in this company is a prominent strength. The firm is operating with 34 research and development centers around the globe. Interestingly, it cost US$14. 857 on the research and development process (Jurevicius, 2018). Due to its strong financial capability, the company manages to make some outputs predictable, and Samsung Galaxy Note 20 Ultra is an example of it. Innovation has been considered the strength of the company. People streamline new ideas in an innovative culture and create that high-quality product for customers. The advertising and marketing budget is too high. In this particulate business section, the budget is US$4.731 billion (Jurevicius, 2018). The advertising and promotion of the firm keep products meaningful in the market.
Weakness
The biggest weakness of the company is cannibalization. Normally, the firm introduces or develops the new product when the sales of its existing product decrease. In the mobile phone segment, cannibalization has occurred, and it seems the biggest weakness. The cost of the production of this company is high as compared to many other mobile phone companies, especially Chinese manufactures. It has been revealed that Samsung is a leader in hardware equipment. However, regarding the software development process or android, it depends on the third parties. It also increases the cost of the overall production process. It is a fact that the company lacks online sales of mobile phones. It increases the cost of the distribution channel. Customers, on the other hand, are looking for preferred products, which can be bought online at a low price. Thus, it has become the major weakness of the company. The firm has not established reliable online platforms to interact with customers (Martin & Mickle, 2017).
Opportunities
Artificial intelligence and innovation are two major opportunities. So far, the firm has executed some effective, innovative techniques. However, there is a need to think bigger and see the big picture. Artificial intelligence can be used by the company to improve the customer service experience as well. For Instance, the Samsung Galaxy Note 20 Ultra can be streamlined and managed in the competitive market through better customer service. Now, it is an era of digital marketing. There is a need to integrate with some social media channels to market the product. It seems a great opportunity to promote the product on these media channels. The cost of marketing is lower than the marketing on different traditional media channels. Acquisition and mergers are different options in the competitive market which always exists in this company. To develop the new product or work on a particular project to increase the market share, the company can integrate with this opportunity. The market share, especially in Asian countries can be increased, and it can help the company sustain its revenue growth and market share for a long run. Diversification and acquisition are two options that can lead towards business sustainability and an edge over other technological rivals. Apple, Huawei, LG, and Lenovo are major competitors, which contain many mobile phone substitutes (News.samsung.com, 2018).
Threats
There are many new arrivals, which are emerging in the mobile phone and technology market. Interestingly, new arrivals such as Chinese companies are coming up with low priced products. In many countries, legal and regulatory issues are in the limelight (Choudhury, 2016). It is a huge threat for the company, as entering in the new market and sustaining the business has become a risk for the company. Continuous product development is risky due to increasing labor cost in different countries. The cost of raw materials is also increasing. A spike in economies is also a major business threat to this firm. Due to sluggish economic condition, the launch and sales of the new product can be filled (Han & Kim, 2003).
· Industry Analysis (Current State)
Some new technological trend triggers the mobile phone industry. Technology companies are looking to navigate some mobile app development options and further hardware setup. However, some competitive factors are quite visible, which create the impact on mobile phone company’s operations in the market. There are many mobile phone companies in the global mobile market. Recently, the 9% market fall in the mobile phone market put all these mobile companies on the backward (Gibbs, 2018). People usually hang on their phone for a long time, and it decreased the sales. However, Apple and Samsung are still developing new mobile phones to increase the demand in the market. However, the global Smartphone shipment has decreased from 38.7m to 400.2m(Gibbs, 2018). The recent collapse in the china market, which causes the 16% decrease, has created the impact. The industry is moving toward more developments and innovations. Companies are developing and launching mobile phones along with many leaps, which are also the biggest reason for the mobile phone market fall (Gibbs, 2018).
Key Competitors
Apple, Huawei, Xiaomi, Oppo, Vivo, Lenovo, Sony, HTC, Motorola, Microsoft, Google Pixel, Micromax, Asus, Nokia, and LG are the main competitors of this company. These competitors are capable of producing the mobile phone with the same features. The quality may be different. However, the differentiation is the factor that matters in this intense rivalry (Martin & Mickle, 2017).
Company Analysis
As compared to its competitors, it has been observed that Samsung manages a broad mobile phone product line. Conversely, these competitors usually compare their products with the Samsung Company. They compare hardware quality, operating system preferences, loyalty, availability, price and fear of the change. Some competitors are using competitive strategies, as they use to manage then change after the recent development of the Samsung Company. On the other hand, Samsung compares its product regarding quality, differentiation, customer perception, and the brand image. Apple Inc is the major competitor, as it is still ahead of Samsung regarding all these aspects (Spence, 2018).
Customer Analysis
Samsung Galaxy Note 20 Ultra has been made for two customer segments. Professional people with high income (Aged 35 to 60) are the target. Conversely, youth (Aged 24 to 30) is targeted by the company. Customers on this mobile phone must have the knowledge and key skills for effective use. People in different educational institutions can benefit from modern apps and features. Customers of the company or particular product are perceived by the company through AIO (Activity, Interest, and Opinion) analysis. Accordingly, the product design has been shaped by the company.
iv. Positioning Strategy
Well, based on the current market or industry position and the strategies for this existing product, there is a need for some new marketing strategies. Simply, there is a need to expand the market plan to create a positive impact on customers. Regarding the positioning process, the firm has to use quality and differentiation as key aspects to position better in the minds of customers. Samsung must streamline the idea behind the quality and workability of this new product. Many customers are just loyal to the company and products. Thus, instead of comparing with Apple In, the firm can get rid of the competition and focus on customer needs. The Samsung Company must demonstrate how it uses creativity to solve customer issues. The most important thing is making the product different from others, and it can work to reduce the product canalization (Yang-Im & Trim, 2008).
v. Marketing Mix
Product Strategy
As far as the Samsung Galaxy Note 20 Ultra is concerned, some amendments in the product strategies are required. For Instance, when launching the product, the firm has to revisit different factors that can create an impact on the buying decisions. To avoid leaps in the new products, some new quality measures are to be introduced by the company. Creativity in an innovative culture is a good approach to come up with different outputs (Boscor, 2016). However, just focusing on creativity and innovation is a huge threat to product quality. Thus, there is a need to keep the balance and develop the new product. Thus, the appropriate product strategy for this product is to build character and personality. The character indicates the quality and reliability. The personality will indicate features that are developed to meet the needs of customers. The product has been developed for solving identified issues. The firm has to say it to customers to get the product in the limelight (Choudhury, 2016).
Pricing Strategy
Customer behavior profile depicts some insights of customer segments. The skimming and competitive pricing strategies are not going to work for this new product no. As mentioned in the industry analysis, the sales of Smartphone are decreased. People, especially students, are emerging in the used mobile phone market. They contain the limited income or financial resources and skimming pricing is not pertinent. Thus, the firm must come up with the penetration pricing strategy. The purpose is to come up with the lowest price of this new product and create the opportunity for this customer segment buy the high-quality product. Samsung Galaxy Note 20 Ultra is available in two versions. Samsung Galaxy Note 20 Ultra is available in 512 and 128 GB storage with a slight difference in the price. Thus, the penetration pricing strategy can be used to increase sales of both versions. In the falling mobile phone market, this pricing strategy can create hype and help the company become the best seller (Dovleac & Balasescu, 2012).
Promotion Strategy
The use of traditional media channel to advertise or promote the product has been good for a while. To reach the target customer and make them attentive, there is a need to integrate with some online channels or platforms. Hoarding and billboards are good options, but these cannot provide information to the customer at the macro level. Social media channels can be utilized to visualize and stimulate the new Samsung Galaxy Note 20 Ultra along with the appropriate content. Online customers can ask questions on the spot. Also, concerning the latest features of media channels, the firm can go live to promote the product (Boon-long & Wongsurawat, 2015). On social media channels, live events can be conducted to streamline features, comparisons, and user experience. However, on the other hand, sponsorship is still the best option for the company to create the hype. Conducting the contests in different cities can help the management put the name of the product in front. Celebrities in contests and live social media video can depict the use of this mobile and speak about their experience. The customer behavior profile depicts young customers, who like to be on social media channels. Thus, these customers can be grabbed and attractive (Han & Kim, 2003).
Distribution (channels) Strategy
Still, the company is focusing on the indirect distribution process to reach customers. However, the big change in the distribution strategy is needed to bring efficiency in the distribution process. So far, the company has used the single distribution channel in the major cities. However, to reach perfectly to the end user, the firm can divide different geographical regions in the cities. Multiple distribution channels can be used by the company to reach multiple locations. Minimizing the number of official stores in the city and increasing number of distribution channels can decrease the cost. The price of the product is changed now, and people living in rural areas can also get this product. Thus, this distribution strategy is quite pertinent to increase the sales of Samsung Galaxy Note 20 Ultra (Kim, 2016)
vi. CB Implications
Why is it important to consider the CB profile for this marketing plan?
It is important to consider the customer behavior profile to create the comprehensive marketing plan. When creating the marketing plan for a particular product, the customer focus is the main intention of the company. The customer behavior profile indicates many customer insights, trends, and needs. Customer segmentation regarding the Samsung Galaxy Note 20 Ultra is useful to create the product, price, place, and promotional strategies. The marketing plan is to be created to attract customers and make them assertive in the buying decisions. Therefore, considering the customer behavior profile is important.
How does understanding CB lead to better marketing?
Understanding customer behavior leads to better marketing. For Instance, in the customer behavior profile, there are many behavior patterns. These behavioral patterns can be derived from the management of the company to make effective marketing strategies. The pertinent behavior pattern of the Samsung Galaxy Note 20 Ultra customer is to create the perception when using. Accordingly, the appropriate content, including product description and specification can be used to attract these customers and enhance better positioning. CB helps to identify customer problems. Thus, in the marketing strategy, the firm decides how to communicate with customers to provide information and let them solve issues (Fu & Zhou, 2011).
How does utilizing this information bring glory to God?
Utilizing this information brings glory to God. The CB is a source for the management to collect data and create marketing plans. The expectations after using this information in the marketing planning process are high regarding sales and profitability. The company wants to become a technology or mobile phone leader in the competitive mobile phone market, and the pertinent marketing planning can do it for the company. CB is marketing research for the company, which can help the firm to find better ways to interact with customers. Utilizing this information is a contribution to society or mankind, and it justifies the glory to god (News.samsung.com, 2018).
Conclusion
In the end, it is to conclude that every product needs a spate marketing plan to attract customers and increase sales. The right information about the new product at the right time to the right group of people seems mandatory in the marketing process. In the competitive landscape, Samsung is quite aware of the customer conversion rate. The appropriate marketing plan for Samsung Galaxy Note 20 Ultra is imperative to retain the legacy and justify mission and vision. In this comprehensive marketing plan, several existing marketing strategies are elaborated along with some recommended strategies for the future.
References
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