1,022 words (exclusive the table content and reference) 5.0 Market segmentation & positioning 6.1 Target market strategy (segmentation) The target market for Samsun Galaxy Grand I9802 in China will be separated into 3 age groups: 22-35 and 36-45. The reason for this division is based on the segmentation theory and criteria:
Based on the spending power, user status, age, education status and interest in mobile fashion design, age group 22-35 would be more likely target on the white collar who are having strong spending power, interested in new stuff and fashion and mostly they are tend to be loyal customers once they are satisfied with the products; while for age group 36-45, who are those middle aged smartphone users who are looking for an convenient function that could suit both for work life and personal contact while represent the high-end quality to make them look good, needed especially in Chinese businessmen/businesswomen or delegates. | Segment 1 | Segment 2|
Name of segment| 22-35 white collar| 36-45 smartphone users| Demographic | * young age * high education * high income * high-level occupation | * Middle age * Both gender (male preferred) * High total monthly telecom spend * Stable safe| Geographic| Urban China,Main cities| Urban China,Main cities| Behavioural Usage|
Benefits| | * Fashion seeker * Differentiation from other * Heavy users for both work and personal life * Loyal customers potentiality| * Duos function * Medium/heavy users for both work and personal life * Ex-users or regular users| Psychographic | * Lifestyle (fashion lovers, professional) * A smart design looking for smart people * Efficiency lover| * Something new, something elegant and something duos. * Mature users|
6.2 Positioning Samsung Galaxy Grand I9802 is a high-end smartphone product promoted by Samsung Electronics to urban China market for Generation Y who is looking for a high-end mobile phone with larger screen than Galaxy S2 but much cheaper price than Note2. Similarly to Galaxy3 Mini, the Galaxy Grand share the same market with Mini.
Different from other brand such as Apple and Nokia, Samsung cares to the need of young Chinese who represent the future purchasing value for China and takes up the majority of smartphone market share. To suit for the need of target market, Samsung differentiate itself from the competitors by implementing the strategy in enhancement of stylish design and close relation to visual outcome and personalization, other than the strategy taken by Apple in innovation and high technology focusing or the Nokia low price tactic.
6.3 Messaging & branding Samsung Galaxy Grand I9802 is a neat phone for both your work and life anywhere, anyhow. Samsung introduced 20 models of mobile phones, of which the appearance, the function and the quality are designed with advanced concepts, innovative technologies and world-class standard.
Samsung Mobile is focused on delivering the option of choice to its consumers. The phone's configuration, its features and functionality are flexible to suit each user. The Omnia Pro, Corby Pro and the Samsung Chat are the result of research and development at Samsung Mobile and offer seamless connectivity with access to Google, YouTube and popular social networking sites Facebook, Twitter, MySpace, Friendster and many more. Market segments| Messaging|
White collar(22-35)| Impress your co-workers with a fashion design and dedicate in professionalism.| Middle-aged smartphone users(36-45)| Be duos, be concentrated, and be successful.|
6.0 Marketing Mix 7.4 Product The concept of Samsung mobile is "fashion-leading technology". According to the factors that influence Chinese consumers’ purchasing decision is quality and exterior design (Nielson, 2010), Samsung seems to have a strong competitive in both areas with its focus on design and second place in quality, right behind Nokia. Samsung combine the brand value (wow, simple and inclusive) (Tandet, 2012 http://davidtandet.com/samsungs-wow-simple-inclusive/) with its marketing goal to satisfy the consumers with its slim and elegant look.
As a result, the phone is no longer a communication tool but more importantly for those young people, a phone is also a representative icon or accessory for themselves. Except for that, in terms of operation system, multiple operation system is supported, so is Galaxy Grand, to fit with multiple choice and need of customers. Therefore, it is possible that consumption and customer loyalty increase.
Back to the Galaxy Grand, Samsung launched the Galaxy Grand 5-inch smartphone in value-seeking high-volume markets of China. In what is the smartphone-equivalent of a large SUV with sub-100 PS engine and mainstream features, the Galaxy Grand gives its bearers the look and feel of holding a high-end 5-inch smartphone, which does look solidly built. Its cost-cutting begins right at the screen.
The Galaxy Grand's primary camera captures life at 8 megapixels, supporting 720p video recording, and an LED flash; its front-facing camera features 2 megapixels resolution. Other features include Bluetooth 4.0, 802.11 b/g/n WLAN, 3D gyro/accelerometer, and a 2,100 mAh battery. While size-wise it's positioned between the 4.8-inch Galaxy S III and 5.3-inch Galaxy Note II, it could command a much lower price tag than either of the two.
In addition, free apps are provided on the official website for free download to suit for people’s need for entertainment and socialization. Given to the lovely big screen, it is unquestionable for most smartphone users who use the phone as a tool to search website, watch TV or play games to gain magnificent experience with the new phone.
7.5 Price Within the number of Chinese consumers who could afford a high-end mobile phone increased and the demand became various in recent years, Samsung is targeting its high-level income group with its price strategy on distinguishing them from the normal Samsung buyers, on the price 5,560 CNY, which represents the specialty through the phone to the target market.
The price of Samsung Galaxy Grand I9802 is relatively lower to other Galaxy series products on their first launch. (http://www.mobile2u.com.pk/chn/mobiles/samsung-mobile-phones.aspx)
Galaxy Brand| Galaxy S3 I9300| Galaxy S3 Mini| Galaxy Note LTE I8020| Galaxy Grand I9082| Price (CNY/AUD estimated)| 3,480/535| 2,090/321| 3,760/578| 5,560/855|
7.6 Promotion The objectives of the promotion strategy are that: * Inform consumers or potential consumers with the Galaxy Grand and raise awareness about the product. * To build up Samsung brand value to enhance the brand image among people. * In competition with the competitors and highlight the benefits of the product to differentiate from the competitors. * To keep constantly remind people of Galaxy grand with its outstanding function and design. * To enhance the image of being young and fun among youth group. * Besides the major market, Samsung is also trying to get the older age group involved.
Examples will be given as followed:
Corporation in sports business: Partnership with the CSL (China Sports League) – targeting on sports lovers on a wide age range
Sponsorship or host a concert/tour: Sponsoring the Asia Tour of K-pop band BigBang in urban China – targeting on students and also young people or Korean music lovers (considering Samsung as a Korean brand)
Celebrity: Product representation by Ekin Cheng (Cheng Yee-Kin, Hong Kong actor and singer) famous both in Generation Y and mid-aged group)
7.7 Place Samsung sells its products by retailers and home appliance interlinks retail enterprises Suning and Gome. Additionally, Samsung has retailing stores to sell latest products as well as provide after-sale service in main cities and most precinct area.
Reference * Lu, L. (2005). Segmentation of China mobile phone market : an impirical analysis. Hong Kong Polytechnic University -- Dissertations.
* Positioning: http://techrice.com/2012/08/31/chinas-smartphones-have-the-whole-world-talking/
* Bout, B., Chang, V., & Lin, S. China’s market for mobile phones. Mckinsey Quarterly [serial online]. June 2004, (2), 25-27.
* Grand is sharing the same market share with 3 mini http://au.ibtimes.com/articles/417391/20121221/samsung-galaxy-s3-mini-vs-grand-release.htm#.UYzu1Xl_meY
* Samsung 3 factors: David Tandet http://davidtandet.com/samsungs-wow-simple-inclusive/
* Calaxy Series price in China http://www.mobile2u.com.pk/chn/mobiles/samsung-mobile-phones.aspx
* Nielson reports Nielson China Mobile Reports Insights 2010 By Shan Phillips, Vice President, Greater China, Telecom Practice, The Nielsen Company Nielson Social Media Report 2012
* Two Paradoxes of the ‘Seller’s Market’ of Chinese Higher Education J. Huang Higher Education Policy, 2005, 18, (169–177)
* Generational and Regional Differences in Media Consumption Patterns of Chinese Generation X Consumers Author(s): Wenyu Dou, Guangping Wang and Nan Zhou Source: Journal of Advertising, Vol. 35, No. 2 (Summer, 2006), pp. 101-110
* The influence of money attitudes on young Chinese consumers’ compulsive buying Dongjin Li, Ying Jiang, Shenghui An, Zhe Shen and Wenji Jin 10 (2), 2009, 98-109 DOI 10.1108/17473610910964688 Source: YOUNG CONSUMERS