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CORP 3400 Strategy and Management Dissertation
MARKETING STRATEGIES FOR THE
SAMSUNG SMARTPHONE
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Abstract
The key purpose of this dissertation is to explore and examined the marketing strategies
that the Samsung company has employed in marketing their product. The targeted market for
these strategies is the Smartphone market. This research paper will specially consider addressing
the new products which the company has introduced into the market within an approximate of
one and half years. This duration of product market introduction is appropriate due to the fact
that advancement in technology is moving faster and therefore new products are continuously
introduced into the market. This will begin by discussion on not only the mission of the company
but will also state the goals of the company. The next issue the paper will address is both the
external and the internal environment of the Samsung company. Marketing mix of the Samsung
device product will be discussed in the introductory part of the dissertation. Four component of
marketing mix is addressed such that Samsung Smartphone marketing will be completely
understood. This marketing of the product will make itself different by the characteristics of the
market mix. Market mix for the Samsung company will enable the company have an advantage
over its competitors. Other parts of the paper will highlight on the methods at which the company
evaluates the market’s needs. Additionally, an evaluation on the manner at which markets offers
the products to different consumers. The final parts of the paper are the analysis of the perception
of the consumers over the marketing strategy used by the Samsung Company.
KEYWORDS: Smartphone, Apps, Phablet, Flagship, Android, iOS, OS, Ad
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Acknowledgements
I take this opportunity to give thanks to my friends and family who in one way give me
support while doing this research. I will like to give a big thanks to my supervisor name of
professor who he has given his sincere, very responsible and valuable scientific guidance, for
advices and suggestions and constant encouragement to excel. additionally, the supervisor has
shown his gratitude for dissertation module leader Dr Martin Beckinsale for informal lectures,
which allowed to gain valuable knowledge and inspiration carrying the whole academic year
assignment. I will also want to give thanks to the Samsung Company and the related firms who I
consulted for their willingness to share necessary information for my research.
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TABLE OF CONTENTS
1 INTRODUCTION ………………………………………………………………………………………………………7
1.1 SCOPE …………………………………………………………………………………………………………………..9
1.2RESEARCH QUESTIONS ………………………………………………………………………………………..9
2 LITERATURE REVIEW ………………………………………………………………………………………….10
2.1 SAMSUNG MISSION AND VISION ………………….…………………………………………………….10
2.1.1 What are Samsung’s goals in the smartphone market, and how does it want to achieve
them? ………………………………………………………………………………………………………………………….10
2.2 INTERNAL ANALYSIS …………………………………………………………………………………………12
2.2.1 Overview of Samsung ……………………………………………………………………………………………13
2.3 MARKETING MIX ………………………………………………………………………………………………..13
2.3.1 Product ………………………………………………………………………………………………………………..14
2.3.2 Promotion ……………………………………………………………………………………………………………14
2.3.3 Price …………………………………………………………………………………………………………………..15
2.3.4 Place ………………………………………………………………………………………………………………….15
2.4 STRATEGY ANALYSIS ………………………………………………………………………………………. 15
2.4.1 Porter’s Generic Strategies ……………………………………………………………………………………. 15
2.4.1.1 Lower Cost ……………………………………………………………………………………………………….16
2.4.1.2Differentiation ……………………………………………………………………………………………………16
2.4.1. Broad Target ……………………………………………………………………………………………………….17
2.4.1.4 Narrow Target ……………………………………………………………………………………………………17
2.4.2 Smith’s Differentiation and Segmentation Strategies ……………………………………….19
2.4.2.2 Differentiation Strategy ……………………………………………………………………………………..20
3 METHODOLOGIES ……………………………………………………………………………………………….. 22
4 ANALYSIS OF SAMSUNG’S MARKETING STRATEGY ……………………………………… 26
4.1 SWOT ANALYSIS ………………………………………………………………………………………………. 26
4.1.1 Strength ………………………………………………………………………………………………………………27
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4.1.2 Weaknesses …………………………………………………………………………………………………………28
4.1.3 Opportunities ………………………………………………………………………………………………………29
4.1.4 Threats ………………………………………………………………………………………………………………..29
4.2 INTRODUCTION STAGE MARKETING MIX OF SAMSUNGS SMARTPHONES
……………………………………………………………………………………………………………………………………29
4.2.1 Product (Samsung Galaxy S series) Life Cycle …………………………………………………………29
4.2.1.1 Product description …………………………………………………………………………………………….30
4.2.1.2 Packaging …………………………………………………………………………………………………………32
4.2.2 Promotion ……………………………………………………………………………………………………………32
4.2.4 Place ………………………………………………………………………………………………………………….. 33
4.3 STRATEGY ANALYSIS FOR SMARTPHONES ……………………………………………………..33
4.4 FINDINGS AND DISCUSSIONS …………………………………………………………………………….34
4.4.1 Marketing Mix Analysis (What are the consumer perceptions to Samsung marketing
strategies? ……………………………………………………………………………………………………………………35
4.4.1.1 Consumer perception to the product ……………………………………………………………………..35
4.5 WHAT ARE THE MARKETING STRATEGIES OF SAMSUNG GALAXY DEVICES
THAT
MAY HAVE CAUSED ITS GROWTH IN THE SMARTPHONE MARKET? …………………….37
CONCLUSION…………………………………………………………………………………………………………….39
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Abbreviation and Terms
Smartphone- refers to a mobile phone made on a mobile operating system with capabilities of
computing and connectivity that is advanced than that of a feature phone.
Flagship– the essential thing in a certain system or in a group of related devices.
Apps– they are program software application that is downloaded by mobile users for mobile
phones users to design their devices.
Phablet– a smartphone that is huge and looks like a tablet. Its size is between the ordinary
smartphone and a tablet. A good example is Samsung Galaxy Note.
Ad– advertising
Android– an operating system developed by Google that is found in the smartphones and tablets
that have touch screens.
OS– operating systems are customized to run mobile devices such as smartphones, tablets, and
mobile phones. It is usually a software platform where the application programs can run on
devices of mobile phones. For example android
IOS– a mobile operating system that is developed and distributed by Apple Inc.
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CHAPTER 1: INTRODUCTION
Years ago, the mobile phone industry was led by Motorola and Nokia. This two had been
leading in the industry for long until there was a drastic change. In the mobile industry, Samsung
mobile was regarded as a company that had a profile which was low dealing with distinguished
products and a product cost portfolio that was low. The Samsung mobile made it through and
was able to merge other leaders of the market in the industry of smartphone in less than a decade.
This was a great improvement in the mobile industry and the question was how did this happen?
The mobile industry has fierce competition and due to a drastic improvement of
technology, the companies must come up with technological innovation that is creative and new
winning strategies for marketing in order to keep up with the competition. When Apple Inc.
launched the iPhone in 2007, they developed a market of Smartphone for all consumers, since at
the beginning the product was only meant to target the people operating businesses. Since then
