Marketing Plan for Samsung

Introduction Samsung Electronics Co., Ltd has proved to the world of business that they are one of the most advanced technology companies in terms of revenue. With more advancement in the technology which the present market can handle at this point, Samsung has made the way for the future in electronics industry. It is the largest mobile phone maker and television manufacturer. Samsung’s New Toy

One of the most popular new “toys” in the electronics market today, is the unbelievable 3D TV. First 3D TV was launched in 2010 March, and has already had a significant impact on the electronics market (Wilson, 2010). With release earlier this year, Samsung has dominated the market, controlling approximately 90% of the total share. One of the Samsung’s products, the 9000 series TV, is not in comparison to competition with its ultra-thin screen, which measures only 0.3 inches in width. This series is also available with full color spectrum which makes for an incredible experience of viewing (Wikipedia, 2012).

Although the company is dominating the 3D market, the company still has very detailed tactics and strategies that it believes will give an increased competitive advantage over the competition of the company (Wilson, 2010). The main emphasis of the company in past few years has been on integration, union, and encouragement of innovation. Samsung is continuously preparing for the next big item to launch in the market, which is why the technology of the company is so far ahead of all leading competitors in the electronics market. In the future, the company plans to enter the 3D video gaming market in partnership with the Microsoft Company.

This would give the company the access to all of the gaming technology of Microsoft, in which the company will combine the quality of sound and viewing stations for creating the ultimate experience of gaming. Of course, throughout the journey in this market, the company will keep on providing the best ad campaigns for the public so that they never forget this product. Consumer Profile

With the advancement of 3D in the technology of TV, the target market of the company is easily identified as the early adapter. Early adapter is the customer who has a high rate of diffusion; it is the rate at which the acceptance is done by the market for any new product idea or a product. One of the surveys of the company identified the “cube tubers” as the target customers for this product (Wikipedia, 2012). These are the people who are the early adapters to the new technology, and are young affluent men who have redefined the coolness from having fast cars to being good at the computer games.

SWOT Analysis Strengths These are the major areas of expertise of the company and the areas in which the company excels and have an edge in the market over the other competitors, some of them are: Excellence in engineering and in the production of the hardware products and electronics for consumers. Samsung has engineering experts whose excellence cannot be matched with any other company in the world. “It is the number 1 market by share in television and mobile phones sales” and other hardware part (processors, memory chips, etc.) (Wikipedia, 2012). The specialized engineers are skilled to do work according to the needs and the requirement of the company.

Low cost of production. Maintaining excellence with low cost is not possible easily but still the company has maintained low cost of production of its products as compared to its competitors. Samsung also set up its production facilities in low cost countries. This benefit the company by producing their products with low production cost and selling them in lower prices and gaining high margins.

Largest share in the industry of mobile phones and became 2nd place in smartphone sales in the world. The company has the low cost of production and thus has been able to maintain low price of the phones as compared to the other competitive brands in the same market. The share is the largest due to the excellent and advanced feature with reasonable price.

Ability to market the brand name. Samsung has been able to position the market in such a way that it has marketed the brand name strategically. It has been named the “top rising brand by Interbrand and is the 9th most valuable brand” valued nearly $33 billion (Interbrand, 2012).

Weaknesses The Company might be able to market the product nicely or it might have been able to get a large market share but there are certain weaknesses which the company has. Some of them are listed below.

Patent infringement. Samsung has a loose policy regarding the infringement of patents. The company’s patents were not done through a proper channel, thus ending up infringing Apple’s and other firms’ patents (Wikipedia, 2012). This outcome damaged Samsung’s reputation and suffered losses.

Low profit margin. Samsung Electronics is the largest technology business in the world in terms of revenue. But its low profit margin was the result of low cost of their product and a price cut they had to endure (Wikipedia, 2012).

Focus on too many products. This point could be the strength as well as the weakness. Samsung Electronic serves many industries with many different products in them. They lost their focus because there were competing in too many products and too many industries, which was their disadvantage over their competitors (Shaughnessy, 2013). Opportunities

The technology is moving faster and faster, therefore electronics industries are still growing and Samsung keeps getting new opportunities. Some of the opportunities are listed below.

Growing market for the smart phones in the developing nations. Samsung Electronics Co., Ltd. can explore the market in the nations where the economy is still developing and the market of smart phones is growing. For example India. Samsung took advantage of being very popular in India, that its market share was higher than the other competitors. India became the fastest growing smartphone market in the world (Velayanika, 2014).

Growing demand for the processor application. The market is still growing for the processor applications. Samsung is one of the key manufacturers of application processors for smartphones and tablets (Guardian, 2012). Because of the high demands for these products, they will need the best quality application processors, which only Samsung can provide.

Growth of tablets market. Tablets market is expected to increase rapidly the next few years. Samsung Electronics Company has been very popular in tablets market, thus if they introduce newer and better quality models, it will expand their profit margin (Wikipedia, 2012).

Threats The Company faces challenges on a daily basis which might be from the competitors and various other factors and thus the company has constant threats from various sources which the company has to face on a daily basis. Some of the threats to the company are listed below.

Saturation of the smart phones market in the economy. The smart phones market in the developed economies is saturated and the growing number of sales will low. Breached patents. Samsung Electronic have many patents that are being used by their many of their competitors. These competitors are benefitting from it and Samsung is not receiving any payment for the use of their products.

Rapid technology change. Because of the fast change in technology, companies are quick to release new products faster and faster. Companies have to introduce their products first in order to beat their competitors; like a saying goes “snooze, you lose”. Conclusion

Currently the company holds a very strong market in the industry, but with the same conditions the company might lose out certain share in the mobile industry. The alliance of the company should be strong enough to maintain healthy relations.

SWOT Table STRENGTHS

1. Excellence in engineering and in the production of the hardware products and electronics for consumer

2. Low cost of production

3. Largest share in the industry of mobile phones and became 2nd place in smartphone sales in the world

4. Ability to market the brand name WEAKNESSES

1. Patent infringement

2. Low profit margin

3. Focus on too many products OPPORTUNITIES

1. Growing market for the smart phones in the developing nations

2. Growing demand for the processor application

3. Growth of tablets market

THREATS

1. Saturation of the smart phones market in the economy

2. Breached patents

3. Focus on too many products

References Grobart, S (2013). How Samsung Became the World’s No. 1 Smartphone Maker. Retrieved March 6, 2014 from http://www.businessweek.com/articles/2013-02-28/how-samsung-became-worlds-no-dot-1-smartphone-maker.

Interbrand (2012). Best Global Brands 2012. Retrieved March 10, 2014 from http://www.interbrand.com/en/best-global-brands/2012/Best-Global-Brands-2012.aspx Shaughnessy, H. (2013). Samsung and Apple Dominate Smartphone Profit, But Both Weaken Consumer Electronics. Retrieved on March 10, 2014 from http://www.forbes.com/sites/hydnshaughnessy/2013/11/14/Samsung-pushes-apple-in-profit-race-but-both-weaken-consumer-electonics/ Velayanika, M. (2014). India is world’s fastest growing smartphone market. Retrieved on

March 8, 2014 from http://yourstory.com/2014/02/smartphone-lead-market/p developers,

Wikipedia, 2012. 3D Television. Retrieved March 8, 2014 from http://en.wikipedia.org/wiki/3D_television Wikipedia (2012). Apple Inc. v. Samsung Electronics Co., Ltd. Retrieved March 10, 2014 from http: en.wikipedia.org/wiki/Apple_Inc._v._Samsung_Electronics_Co.,_Ltd..

Wikipedia, 2012. Samsung Electronics Retrieved on 10 March from http://en.wikipedia.org/wiki/Samsung_Electronics#Business_areas Wilson, R. (2010). 3D TV Market is Set for Big Growth. Retrieved March 7, 2014 from http://www.electonicsweekly.com/article/2010/01/29/47903/3d-tv-market-is-set-for-big-growth.htm