MKT101 IB1203 hoangnse03997 groupassignment

MINISTRY OF EDUCATION AND TRAINING VIET NAM MKT101 Group assignment _ Products: Samsung Galaxy S9 and S9+ Group information Group members Lecturer Nguyen Hoang SE03997 Nguyen Xuan Truong SE04362 Pham Minh Thuy SE03992 Vu Ngoc Thach SE04094 Nguyen Tuan Tung SE04084 Dang Phuc Nghia SE04444 Le Pham Khanh Hoa Hanoi, January 2018 Table of Contents I Introduction II Literature review III Marketing environment Consumer behavior 3 Marketing strategy Marketing mix Analysis Introduction of Samsung Introduction of Samsung Galaxy S9 and S9+ Marketing environment a Analyze microenvironment by SWOT model b Analysis macroenvironment by PESTLE model Consumer behaviors a Consumer influence model b Types of buying decision behavior 10 c Buyer behavior process 10 Marketing strategy 12 a Segmenting consumer markets 12 b Marketing targeting 13 c Positioning and Differentiation 14 IV Marketing program 15 a Product 15 b Pricing 17 c Place 17 d Promotion 18 Recommendation and conclusion 18 References 20 I Introduction We decided to choose Samsung to be the company for analyzing As big company as Samsung, they have very different interesting strategies and marketing programs Moreover, we will have the opportunity to consolidate knowledge because this topic is quite broad theories When we know more about the theory and analysis, we can analyze a marketing environment by ourselves perfectly We choose to focus on the marketing strategy implemented by Samsung for its smartphone models: Samsung Galaxy S9 and S9+ Because the purpose of marketing is to act in a way that a company delivers products in the market that they correspond to demand Samsung’s success may be affected by factors outside the scope of marketing strategy This report will consider the marketing environment, consumer behavior, marketing strategies and marketing program We will discuss the marketing decisions of the company in the smartphone market, not much in the mobile market, as the mobile products is sidelined due to changing customers’ needs We will also concentrate on the consumer perception regarding Samsung marketing strategy to structure the conclusion of the studies Figure Samsung Galaxy S9 and S9+ II Literature review Marketing environment The marketing environment includes the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with customers The microenvironment consists of the actors close to the company that affects its ability to serve its customers, the company, suppliers, marketing intermediaries, customer markets, competitors, and publics The macroenvironment consists of the larger societal forces that affect the microenvironment It includes Demographic, Economic, Natural, Technological, Political and Culture PESTLE model: PEST analysis describes a framework of macroenvironmental factors; it includes Political, Economic, Social, Technological, Legal and Environmental Consumer behavior Consumer behavior refers to the buying behavior of final consumers - individuals and households who buy goods and services for personal consumption Consumer market refers to all of the personal consumption of final consumers Characteristics Affecting Consumer Behavior: Cultural Factors, Social Factors, Personal Factors, Psychological Factors Types of Buying Decision Behavior: Complex buying behavior, Dissonancereducing buying behavior, Habitual buying behavior, Variety-seeking buying behavior Marketing strategy A strategy of a company or organization combines all of its marketing goals into one comprehensive plan A good marketing strategy should be drawn from market research and focus on the right product mix in order to achieve the maximum profit potential and sustain the business Figure Purpose of marketing strategy Marketing mix The marketing mix is the set of tools (four Ps); the firm uses to implement its marketing strategy are Product, Price, Promotion and Place Figure Marketing mix III Analysis Introduction of Samsung Samsung is one of the greatest brands available in the market that aims to secure the world leadership in the industry and earn devastating competitive strength by synchronizing the development and manufacturing of product, design, marketing and sales The organization is well known for its great accomplishment in the industry of semiconductors based on memory Samsung has been maintaining its high position in the industry continuously from 1992 The company has been stretching its financial structure throughout the industry to maintain itself as a number one company in the industry of mobile phones, semiconductors, monitors, computer gadgets, televisions, TFT and LCD screens It also achieved 4th place in the semiconductor industry and 6th place in the mobile gadget industry by selling huge volumes Introduction of Samsung Galaxy S9 and S9+ The Samsung Galaxy S9 and S9+ (shortened to S9 and S9+) are two Android smartphone models produced by Samsung Electronics as part of the Samsung Galaxy S series It can connect to 2G, 3G, 4G and 4G LTE networks It is the newest release in the Galaxy S series Samsung have poured all of their effort into this product and concentrating on adding more features such as the dual-lens camera set up on the back (S9+), dual aperture rear camera helps the phones to shoot 4K at 60 frames per second The phones support AR Emoji technology, which is similar to Apple’s Animoji to let users make emojis based on themselves These features are main unique selling point on S9 and S9+ The consumer also can mess around with the file systems which makes it more appealing to people who are interested in technology The S9 and S9+ models are great successors to Samsung Galaxy S8 and S8+ and are considered as the rival of iPhone X and models of other smartphone producers (website, 2018) Marketing environment a Analyze microenvironment by SWOT model Strengths (S) - Samsung has a wide product range, which allows them to grab ample market share from various markets - Samsung has the ability and resources to use the latest technology and offer new and exciting features frequently - Samsung has set up many production plants in low cost locations, thus they save on cost of production significantly Weaknesses (W) - Samsung never introduces a new design on its own; it always waits to attack its competitors Thus, it missed the first mover advantages - Many Samsung products are not user friendly, therefore consumer often hesitate to switch to Samsung products even if the price and quality is exceptional - Samsung does not focus on a specific niche; it offers its products to the mass market only Opportunities (O) - Samsung should make an active effort to offer unique products to customers, in order to grab more market share - Samsung could launch sub brands to the company, with new and improved strategies - Samsung could increase variation in its products Threats (T) - Samsung has linked product lines, which means that if one product line fails due to its own reasons, other product lines will also suffer - The more people expect of Samsung, the more disappointed they will get if Samsung makes mistakes - Countries all over the world are experiencing a high cost due to high inflation rates in most locations b Analysis macroenvironment by PESTLE model Political factors South Korea’s political nature has presented a tormenting factor for the company that now faces political instability at its home country The home country’s situation is dissimilar when it is measured against other countries Some of the countries where Samsung is experiencing an inconvenient business environment, including Africa and Southeast Asia Economic factors Since the ongoing global economic crisis has severely dented the purchasing power of consumers in many developed markets, Samsung has to seek profitable ventures in the emerging markets The key point to note here is that the macroeconomic environment in which Samsung operates globally is beset with uncertainty and volatility leading to the reorientation of its strategies accordingly Social-cultural factors Being a global company, Samsung has been acting locally It means the company should adopt a local strategy in many emerging markets Apart from this, Samsung had to tailor its products to the fast changing consumer preferences in the various markets where it operates The key point to note here is that Samsung operates in a market niche which is strongly influenced by the lifestyle preferences of consumers, given that the fact is socio cultural factors are different in each country Technological factors The company has the power of technology which drives innovation for sustainable business advantage The major benefit of technology is its ability to cut down production costs and improve quality Samsung is proud of its inventive advance to technology and improvements for manufacturing products that deploys design technology and features Environmental factors The basic weather and climate variations comprise of environmental factors that influence business operations Samsung’s approach to Corporate Social Responsibility defines its concern to its environment It is expressed through production facilities grounded on environmentally friendly designs With regard to this, the company has been implementing practices aimed at protecting the environment Legal factors Some of these legal constraints have an influence on business operations and demand characteristics of consumers The adoption of minimum wage rate policy by governments can affect a firm, since it will have to raise wages increasing the cost of production Consumer behaviors a Consumer influence model Cultural factors Cultural factors include the set of values and ideology of a community or a group of private individuals As in the U.S mostly prefer smartphones while in the developing countries like India and South Africa, people like simple mobile phone Social factors The civilization of human being grew up as they started to live in a society They interact with each other for better solutions A consumer’s behavior is therefore influenced by the social factors such as groups, family and roles and status - Family: If a teenager purchases a mobile, he or she would prefer more on entertainments & games, while an official person would prefer more on presentation and professional mobiles - Reference group: A man wanted to purchase a mobile so he went to the nearby store and purchased a Samsung mobile because his friends and colleagues were using same mobile and they were satisfied by it Customer will buy a mobile from his relatives or friends so he can get good guidance and good services - Roles and status: Each individual plays a dual role in the society depending on the group that he or she belongs to For instance, a C.E.O of a company will buy such a mobile that can help him to play both the role properly, a C.E.O of the company as well as a father of a child Psychological factors Figure Psychological factors - Motivation: Most people are attracted towards advertise of Samsung Galaxy S9 and S9+ mobile and they are motivated to purchase the same - Beliefs and attitudes: Some people purchase Samsung smartphones to over show their beliefs and attitudes towards their companions For example, buying a Samsung galaxy S9 or S9+ instead of Oppo - Perception: For instance, there are two students, the first one wants to purchase a Samsung Galaxy Note and the other chooses S9 Instead of being motivated by same purpose, still they purchased different types of mobile One pursued that the Note is best for its screen size whereas one pursued that S9 is best for style as well as sensor - Learning: If a person is using a mobile of Samsung, he is mostly aware of features of the mobile and he will convince other consumers to buy the same brand of mobile Personal factors - Age and life stage cycle: Consumption of Samsung mobile is also affected by the stages of family life cycle like bachelor stage, newly married couple, young & old couple and independent children uses different Samsung phones according to their uses - Lifestyle: A person’s lifestyle is reflected through his activities, hobbies, opinions and thinking A man believing in simple living and high thinking will purchase Samsung Galaxy A while a man living luxurious life will purchase Samsung Galaxy Note - Occupation: Consumption is also influenced by the occupation of the consumer A labor employee will purchase a normal kind of Samsung phone while at the top most level of the organization head will purchase Samsung Galaxy S9 - Personality: Personality means some total of appearance, knowledge and different types of skills That is why a man believing in innovation will go for S9 or S9+ while a person loving simple product may purchase a simple Android phone b Types of buying decision behavior Samsung Galaxy S9 and S9+ are products that give people a Dissonance-reducing buying behavior because they are quite expensive thing and people not change their phones frequently Moreover, there are a lot of famous brands about smartphones in the world, so it make people even harder to find out c Buyer behavior process - Problem or Need recognition: A student is given a notice from the college and he has to inform all other members of his class However, he cannot send this notice to others because of the ordinary mobile, so here problem is recognized which can be solve with a smartphone - Information search: Nowadays, Samsung mobiles are very famous amongst people so information that regards its various mobile phones is easy to get - Evaluation: This chart shows features that people want to experience in a mobile 29% of people consider battery life in mobile whereas only 2% of them see a video capture as power of mobile Looking at the comparison, consumer can evaluate the mobile in very poor, average, good or very good Based on information in the chart, Samsung Galaxy S9 and S9+ will easily be considered in good or very good group 10 Figure Chart of features users want to experience - Purchase decision: There are many reasons for which a customer can buy a Samsung phone For example, a person decides to buy a mobile of Samsung because of high battery life, good processor and best price - Post purchase behaviors: Depending on the customer satisfaction, post purchase behavior may be positive or negative  Positive: When they satisfy with the S9 or S9+, they can give a lot of positive recommendations to other people and even want to buy another one for themselves  Negative: When they not like the S9 or S9+, they may say bad things about these products This bad news may spreads very quickly 11 Marketing strategy a Segmenting consumer markets Demographic segmentation Samsung Galaxy S9 and S9+ are designed suitably for both men and women With strong design, stylish products, these models target to young generations The age group of customers that S9 and S9+ primarily towards are the people between the ages of 18 and 35 Products are suitable people in middle class and upper class, the entrepreneurs, office workers who often have to communicate Geographic segmentation Products have been selling throughout the world but was first introduced in the high population and developed cities, such as Barcelona, New York, London and Los Angeles In addition, the products has a huge foothold in the Asian market and Samsung are trying to expand the market in North America Psychographic segmentation Products attract to people who prefer active lifestyles, modern, love fashion and high technology Behavioral segmentation Samsung Galaxy has a large number of loyal customers for the product line Galaxy It is also one of the strengths of S9 and S9+ We can see that Samsung Galaxy S9 and S9+ have the large and potential market segments It could help products to gain competitive advantages over other products The company should choose the most effective market segment to focus on On the other hand, the company should design a detail marketing strategy to attract customers 12 b Marketing targeting Market segments are evaluated by three factors Segment size and growth, Segment structural attractiveness and Company Objectives and Resources Segment size and growth The market of S9 and S9+ is worldwide and focus on areas of developed countries, high-income people to increase sales and bring large profits for Samsung However, the great size and growth rate will definitely attract competitors with strong competitiveness For example, Apple with iPhone X and other product lines of HTC, Sony and Oppo Segment structural attractiveness S9 and S9+ have numerous competitors such as iPhone X, Oppo F5, HTC U11 Not only competitive in sectors, there are competition between products of the same company, for example Galaxy A product line Company Objectives and Resources Objectives of S9 and S9+ are to sell bulk products, to get attention of buyers, to build credibility with customers and to expand markets Good sources of major investment, prestige, high quality products are interesting elements which can help Samsung to achieve their goals Target market segment of S9 and S9+ is differentiated marketing They are products for middle and upper middle class On the other hand, Samsung also produces the product line Galaxy A for average income customers to spread market segment Potential target markets of S9 and S9+ are developed countries and some developing countries such as countries in Southeast Asia, North America and China The selection of the target market of the products associated with their target customers (high-end consumers) Samsung did it well! When the products were put on the target market, they instantly created a craze Samsung brand has been increasingly ingrained in minds of consumers whether they own Samsung products or not 13 c Positioning and Differentiation Positioning maps Figure Positioning maps Through the Positioning maps, we can see that Samsung Galaxy S9 and S9+ are high quality products, with strong technical specifications, meticulous design and they give us good user experience In terms of price, S9 and S9+ are products in the luxury segment However, price of the products is not too high In the customers’ minds, S9 and S9+ are truly high quality products with good price Value proposition Figure Value position 14 Samsung offers a good quality product but lower price when compared with equivalent rivals This is to increase competitive advantages, which could bring their products to more consumers Product differentiation Samsung Galaxy S9 and S9+ are sophisticated design and elegance With a large 5.8-inch and 6.2-inch screen, respectively, while the screen of iPhone X is less than 5.8 inches (Seizt, 2018) Cameras with the title “The Reimagine” are the greatest difference It helps user not only to take beautiful pictures but also to record super slow-motion videos with an incredible speed of 960 frames per second Additionally, there are many special features, such as AR Emoji, GIF Music, Live Translation, Intelligence Scan and Multi Device Experience, which build a special S9 and S9+ (Haselton, 2018) Marketing program a Product Core benefits S9 and S9+ are the smartphones using Android 8.0 “Oreo” mobile operating system which aspires to be the user inanimate life companion and help simplify daily life by providing entertainment, medium for communication, task management and also monitoring health and well-being (Kelly, 2018) Actual product S9 and S9+ captures precious moments of the user’s life by taking photos in innovative ways like dual camera, photos in the dark but brilliant, GIF music, super slow motion videos S Voice provides speech control of the phone features like calling and messaging It also helps users to ensure their privacy by Face Recognize feature Air gestures allow simple hand motions to accept calls, change music, browse web and view photos Voice-guided navigation with 3D map view and AR Emoji are unforgettable interesting experiences for users (website, 2018) 15 Augmented product Samsung warrants that their product is free from defects in material and workmanship under normal use and service for a period of year after the date of purchase Customer service includes local Samsung stores which provide services to customers Customers also feel free to contact through company website for product support, helping with direct sales, media relations inquires… Many local stores offer contracts where a customer can buy in the product in instalments Product life cycle S9 and S9+ are entering into its growth It has been approximately a month since the first launch of these models and it has already become well known and publicized throughout its target market via successful advertising Their advertisements can be seen almost everywhere their target market They can be seen on TV, on newspaper and on bus station walls Knowledge of the products have spread via these means and most of the prospective customers have already known about them It will probably start its decline period when the next model of product line Galaxy S is released, provided that there is the same increase in technological discoveries as there have been in the past three years We can inference this from the older models and its product life cycle Figure Product life cycle 16 b Pricing Pricing strategy for S9 and S9+ is price-skimming strategy as Samsung Galaxy has oriented a great brand name in customers’ minds Many people have obsession to buy the products at once and share its new features with friends and family members The S9 and S9+ costs customers approximately $750 They are pricing it to get the maximum amount of turnover for the highest price The optimum trade off would have been found via lots of market research A lower price would make a higher turnover but a lower profit due to the revenue barely outweighs the cost A higher price would result in a much lower turnover which, in turn, would lead to low profit c Place The main marketing system of Samsung Galaxy S9 and S9+ is vertical marketing systems with Franchise organization A marketer can use intensive distribution, selective distribution, exclusive distribution and franchising to additional aspects of the marketing mix Samsung uses multiple distribution channels They are distributed to various telecommunication companies such as mobile phone retailers, Internet partners such as Amazon and others They also have Samsung retail stores In Vietnam, the channels of distribution of S9 and S9+ are mostly through wholesalers and then passed on to retailers where consumers can buy products There is also another one where the distributors buy a large amount of products and sell them to consumers Figure Distribution channels 17 S9 and S9+ have been selling worldwide and internationally in order to get more consumers, that is why Samsung manufactured the products in different countries d Promotion The target market of S9 and S9+ is the wealthy, young business class who require mobile phone as a job tool for young fashionable sociality In short, they are mostly people were born after 1980 They either have a medium disposable income to begin with or have enough income to be able to save up for S9 and S9+ Samsung not really provide any discounts because it would be up to retailers and it might vary depending on the number of stocks and if it was parallel imported or not They advertise a lot Their brand image and market share have power to make S9 and S9+ more popular Personal sales is only really applied by retailer as customer service by employees This, unless in Samsung's shops, is completely uncontrollable by Samsung In its promotion component of the marketing mix, SAMSUNG used Olympic Game sponsorship As the Worldwide Olympic Partner in the Wireless Communications Equipment and Computing Equipment category, Samsung continues to create a digital doorway into the Olympic spirit for the athletes, officials, staff, and fans worldwide Recently, in Winter Olympic Games PyeongChang 2018, Samsung expanded its partnership to Wireless Communication and Computing Equipment category, widening the product category to smartphones, tablets, laptops, personal computers, other computing equipment, and desktop printers (website, 2018) IV Recommendation and conclusion For the conclusion of this research, Samsung has already considered as one of the current leaders in the smartphone market Samsung Galaxy S9 and S9+ are marketed as a “life companion" that includes features like navigating without touching the screen and the built in health monitoring Samsung is literally evolving its brand, not only to innovate but also to make it live up to its mission on enhancing lives of its consumers 18 S9 and S9+ device are their flagship smartphones possesses very innovative technology that makes them the main rivals of Apple The price is quite high that differentiates them from the rest of other smartphone products and positions it in the high-end costly smartphone like iPhone Samsung uses segmentation strategy by targeting different market segments that are working well for them too They have positioned their products well, and they have let their customers know they are offering the best things for everyone Most smartphone companies not communicate the benefits clearly and in a way that an ordinary person can understand Samsung communication strategy in its promotion component of marketing mix shows exactly whom they are targeting and what they are offering to the targeted market To sum up, Samsung is surely on its way to be leaders in creativity 19 References Haselton, T., 2018 CNBC [Online] Available at: https://www.cnbc.com/2018/02/23/samsung-galaxy-s9-hands-onandroid-pace-setter-same-old-look.html [Accessed 23 2018] Kelly, G., 2018 Forbes [Online] Available at: https://www.forbes.com/sites/gordonkelly/2018/02/25/samsung-galaxys9-vs-galaxy-s9-plus-whats-the-difference-upgrade-guide/#7263a71769fa [Accessed 23 2018] Seizt, P., 2018 Inventor's Business Daily [Online] Available at: https://www.investors.com/news/technology/click/samsung-galaxy-s9smartphones-take-aim-at-apple-iphone-x/ [Accessed 23 2018] website, G o., 2018 Compare Apple iPhone X vs Samsung Galaxy S9 [Online] Available at: https://www.gadgetsnow.com/compare-mobile-phones/Apple-iPhone-Xvs-Samsung-Galaxy-S9 [Accessed 23 2018] website, P o., 2018 About Partners [Online] Available at: https://www.pyeongchang2018.com/en/partners/samsung [Accessed 23 2018] website, S o., 2018 Galaxy S9 | S9+ [Online] Available at: http://www.samsung.com/global/galaxy/galaxy-s9/ [Accessed 23 2018] 20