Marketing plan for samsung essay 1. EXECUTIVE SUMMARY Samsung is a company that has been steadily growing throughout the past decade. The following report will help Samsung maintain the growth that has been enjoyed in the past, with a strong emphasis on the growth of the MP3/PMP division. By analyzing customers and what they want, strategies can be devised as to how Samsung can increase their share of the MP3/PMP market. Furthermore, by comparing Samsung’s strengths and weaknesses to that of the competition, opportunities can be identified and capitalised on.
Studying things such as the mediums by which customers will receive information about MP3 products has also proved useful, and can serve as a guide to how much emphasis should be placed on each channel. By combining all of this information, a marketing plan can be developed to help the overall growth of the MP3/PMP division, which will benefit Samsung as a whole. 2. CONTEXTUAL ANALYSIS Samsung is emerging from the recession quickly in the last part of 2009 and is gaining ground on its competitors.
In the third quarter of 2009, Samsung posted high profit numbers while others such as Sony posted losses (Tenders Info, 2009).
The company expects growth to continue as well, with major growth for most consumer electronic products, especially personal computers and LCD TVs (Tenders Info, 2009). Nevertheless, Samsung should keep a wary eye on the economy as it is still fragile in many parts of the world. This could affect the company in areas such as costs of financing, disposable income of the public, and the well-being of those companies that act as suppliers to Samsung. On the other hand, as Samsung faces the coming years, it will encounter some steep challenges that will soon define the company’s MP3/PMP division.
According to research by In-Stat, worldwide shipments for MP3 players are projected to reach 225 million in 2009; up only five percent over the previous year (Close-up Media, 2009). The MP3/PMP market has levelled off into a plateau and actually hit a downturn in 2008, as can be expected in the economic situation the world found itself in. This was the first year of decline for this market and according to the Yankee Group, the coming years, 2010-2013, will see a gradual decline as the market becomes saturated with products (Palenchar, 2008).
Consumer demand is weakening because of the saturation problem and competition from multifunction devices such as the iPhone threatens to cannibalize MP3 player sales. However, some groups forecast a continued rise in revenue specifically for the video enabled PMP market. That is specifically those handheld players that are able to playback video. Digital Tech Consulting believes that, with some improvements in the areas of storage capacity and improving data compression, the PMP market will continue to grow until it also hits a saturation point in about 2012 or 2013 (Jasmin 2008).
Finally, the largest market by consumption for the MP3/PMP devices has been in the Asia Pacific region (Close-up Media, 2009). These are areas that are becoming saturated. Samsung needs to focus beyond its geographic area and acquire new customers in emerging markets around the world, which it has done very well to date. 3. CUSTOMER ANALYSIS 3. 1 Vision and Mission: Samsung is dedicated to developing innovative technologies and efficient processes that create new markets, enrich people’s lives and continue to make Samsung a digital leader. 3. 2 Implementation:
Samsung implementation strategy- changes and revisions in terms of processes and structure within the organization. To promote U3 MP3 product- in virtual community- used Habbo Hotel and resulted as 136,700 customers visited to Habbo. Qualitative Techniques – was used to encourage respondents to reply freely and express their real feelings, opinions and motivation towards product. Quantitative Techniques – survey was conducted, to raise the awareness of the product and better understand users’ preferences. The psychographic survey asked things such as users most referred MP3 players and colour etc. Although prizes such as vouchers were given away to encourage participation, Samsung’s incentives did not affect participant’s truthfulness in answers. 3. 3Outcome: Creation was borne out of observations, introducing the user to the product and brand. Customers acted as ‘Brand Advocate’ (recommended the product to other customers). Target audience got to discover the product and brand through engagement with the brand in a fun environment, projecting Samsung as fun and entertaining and the MP3 player as a funky product. 3. 4 Information for Future Consumers:
Of importance for the future is how those customers’ perspectives will change. As competition intensifies from time to time, so the range of offerings open to customers increases. In addition, their experiences with various offers can lead to increased consumers expectations and requirements. New customers emerging are potentially more attractive targets. Segments that may be less attractive at one point in time might become more attractive in future. As social, cultural and economic changes have affected living standards, so it has affected the demand for goods and services. Hooley, 2004: 182) 4. COMPETITOR ANALYSIS In the MP3 industry, there are many competitors including Apple and Sony. Both of these companies, including Samsung, have strengths and weaknesses but the biggest threat to Samsung is Apple, who demands a large share of the market. 4. 1Strengths: Innovation: Samsung is constantly rethinking its products and adding more functions, keeping up with the consumer. Design: The target market is young people. Therefore the design of the MP3 player is ‘shiny’ and ‘cool. ‘ They have also focused on new functions for their target audience, such as mini ames. Price:The price of a Samsung MP3 player is lower than that of most models from either Sony or Apple. This pricing strategy has proven to be a useful tool, especially in Asian countries and developing countries. In these countries, the iPod and Sony products are seen as luxury items and Samsung is a lower price option. Market share: Samsung has not only taken a large market share in Asian countries, but has also developed a respectable market share in developed countries as well. Samsung continues to grow in all areas, especially in places such as Europe. . 2 Weakness: In comparison to Apple and Sony, Samsung has a weaker brand name in the MP3 player market. Apple commands a vast majority of the market share with Sony and Samsung as the closest competitors, causing many new customers to lean towards Apple simply because of the reputation of the brand. 4. 3 Threat: The main threat for Samsung is multifunctional devices, such as the iPhone from Apple are having a drastic effect on the MP3 player market. These new products are combining the MP3 player market into other markets such as that of mobile phones.
Customers simply don’t need to buy an MP3 player if their phone has one built in. This and other added functions are the biggest threat to Samsung’s MP3 player market. 4. 4 Opportunity: Samsung can gain from competitor’s change of focus as Apple has changed much of its focus from the pure MP3 player market to the market for its iPhone. Although Apple still produces the iPod, it leaves open an opportunity for Samsung to step in. Sony also seems to be focusing less on the MP3 player division as the market slows. 5. CHANNEL ANALYSIS 5. 1 Distribution
According to a survey by PC online, shown in the graph below, we find that 42% of people find out about MP3 products from internet articles. If you add in the ads that are placed online, then 57% of people receive their information from the internet. This is followed by friend recommendation at 12%. This stresses the importance of the internet as a channel of not only distributing Samsung’s MP3 products, but also the importance of communicating through the internet. In the future, Samsung should continue to use multiple channels for communication and distribution, but it should focus on using the internet as a useful tool.
This means placing advertisements on the internet and also using the internet as a channel for selling the product. Therefore, Samsung should use distribution channels such as: Selling and advertising the Mp3 products through the internet Direct stores Retailers’ shops The customer contact hotline Television advertisement 6. COMPANY STRATEGY 6. 1 Marketing-Oriented Organization: Marketing-oriented organization would apply complete efforts to achieve best results and have committed all its resources to engage their decisions.
By carefully assessing the demand of consumers, we are able to determine their needs, providing exclusive advises and innovative marketable designs based on resources and data from its market research analysis. After evaluating customer’s concepts and plans, we would develop sales strategies, advertising programs and market endorsements to maximize awareness of the projects. 6. 2 Target Market/Customers: Samsung was promoting its new MP3 players and targeted at teenagers because it was discovered that the youngsters and teenagers spent their much time online at places such as Habbo Hotel.
Their main objective was not only to create awareness of the product and better understanding but also engaged their target customers. In today’s world, Digital Audio Players are difficult to get noticed but Samsung is working hard to break Apple’s monopoly and control in the market. To compete with Apple, we have to launch new striking PMP/MP3 players at the same target customers of the Apple in order to make our hold and mark on the PMP/MP3 player market. 6. 3 Customer Satisfaction: Customers which are highly satisfied with the company services purchases new and existing products regularly, word of mouth publicity for company and do not move to other brands of same product”. (Hooley, 2008: 398) So it’s important to measure customer satisfaction on regularly basis. It can be measure in different ways: Periodic Surveys: Customer database is created and their profiles are store, determine their opinions and perception by conducting web based surveys or through suggestion boxes. This might be helpful to enhance our next generation MP3 players in the future.
Monitor Customer loss rate: If customer stop to purchase our product and move to other brands, try to find out the exact reasons from customers. Re-evaluate the market needs, and prepare marketing strategies to gain more customers in the future. Hire mystery shoppers: To get some strong and weak points of competitors with respect to our company. Customer Service and Technical Support: Teams will be established to assist the customers regarding any technical problems, defects and other problems. This can ensure that the quality of Samsung MP3 players will not be compromised. 6. 4 Marketing Strategy and Promotional Activities: A key aspect of strategy development is the creation of a digital marketing competitive advantage, capable of distinguishing an organization from other firms operating in the same market sector”. (David Jobber, 2007: 736). Once we understand the target market, we have to implementing the best ways for promotion/advertisement of our product through different mediums like: Mobile Communication: One form of advertising is to sending SMS to our potential customers to promote our products, as this is very cost effective and successful way to enhance the interest of the consumers towards our product.
Interactive Television: Nowadays it’s a very useful medium for advertisement as viewers (nearly 75% UK households have one digital television set) easily see the detailed information about the product they want or buy a product and it generate direct sales for the company. Computer and Video games: In-game advertising is also emerging as big business, highly emotive, targeted and result oriented because most people are now splashing out on games instead of going to cinemas.
It’s the best way to target a valuable group of consumers who are increasingly in favour of video games. Internet: It is a very popular medium in today world, specially among youngsters. So, we have to look upon the mostly visited websites and advertised our products. Celebrity Endorsement: Young celebrities like teen idols and pop stars are useful to promote Samsung products in future.
As, teen idols can recommend the mp3 players to the teenage group and the pop stars will represent the excellent sound quality of PMP/MP3 players. Conclusion : The main idea for the Marketing Plan is to ensure success of Samsung in the coming future. In the digital era, products will be distinguished by brand names rather than by its functions or quality. For the coming years, we will be focus on generating qualitative and quantitative growth as we enlarge our control in the premium market as well as in the emerging markets.
To strengthen our market supremacy and increase brand value, we have to make a high quality and customer oriented products which meets consumer’s expectations and adopt holistic marketing strategy in its place of individual marketing strategy. Our Company will also increase their product quality and strong customer relationship by providing relevant training to the employees on how to deal with the customer, as our main goal is customer loyalty. We also have to expand our PMP/MP3 player concept by developing new multi-functional products that provides more functionality to users.
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