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Samsung Marketing Planning and Promotional Strategy Analysis Summary

Executive Summary

The paper focuses on the Smartphones industry, as the Samsung market is increasing with theSamsung Marketing Planning and Promotional Strategy Analysis Summary increase in the smartphones industry, the company earned the market share of 18.5% in 2016 and growth is still expected in coming years. However, there is high competition in the smartphones industry and Samsung’s smartphones are facing competition in the Android market, the company has the diversified product portfolio and the investors, analysts believes on growth and the best-ever profit.

Marketing Plan Structure

Smartphones industry has grown in the recent years in the market; the Smartphones are focused by the companies so that there could be the computing capabilities and effective connectivity. Smartphones industry was introduced in 2007 by the introduction of Apple’s iPhone. From then companies still struggling in order to make the customer friendly features by providing the customers with the touch screen interface and the efficient virtual keyboard so that there could be effectiveness in the models and there could be customer satisfaction. Thus, the Android was introduced in late 2008 for the consumer market. It is anticipated that by the next year 2018 about the third of the world’s population will be using their own smartphone, however, there will be the almost 2.53 billion of the smartphone users in overall the world (Statista.com, 2017).

Consequently, Samsung has the good position in the smartphone market because by fourth quarter of 2016 the company earned the market share of 18.5%, which is still significantly increasing because the company has targeted the budget-conscious shoppers (Reisinger, 2017). For the smartphone production there are continuous efforts by the Samsung, as the company has recently announced Galaxy S8 line so that potential customers of the company could be attracted, in order to maintain the sales, Samsung has maintained the position in the market, as the product is exciting, there were the flat sales on the product or smartphones S8 and S8 plus, so that maximum customers could be attracted, however, there were not the expected sales by the company. The company may be lacking in modest upgrades like new iPhones because the sales of iPhones were 20.3% share, by the fourth quarter of 2016.

Samsung smartphones are most liked in the industry, as the company is becoming the leader in the market; however, Samsung smartphones have the skimming price and the competitive price in the industry. As compared with the competitors Samsung smartphones are the most beautiful smartphones because they are designed brilliantly, the company is continuous towards the technological innovation and providing the exciting identical features to the customers. Furthermore, Samsung marketing strategies are effective because the customers are satisfied.

Industry/market Analysis

Regarding the industry and market analysis, Samsung smartphones are at the top because the company is facilitating all types of the customers, Samsung is using the effective and the suitable strategies so that the use of their smartphones can steadily increase in the market. However, the company is performing well in the market and the performances focused on the newest trends and the technologies so that there could be betterment and satisfactory level in order to achieve the higher expectations that are from the consumers. Samsung smartphones are most beautiful smartphones for the reason that they are designed brilliantly. Therefore, the company is focused on the environmental-friendly conditions, as the sustainability and technological advancement is the main objectives of the company in the smartphones industry, Samsung market is also increasing in the market because the company has the objective is to focus on the customers from different social classes or the backgrounds.

Samsung is making the great deals with the customers in the market, though, the latest technologies are assumed by the Samsung’s smartphones as providing the additional facilities to the customers. The innovators or early adopters are the current target group of the Samsung’s smartphones S8 because customers are getting high interest on the newest releases. However, the Samsung smartphones are most liked in the industry and the trend of using the new Samsung smartphones are increasing in the teenagers, the new product of the company is focused on the recent mobile trends because there are new colors and the best experience provided o the customers. The Porter’s Five Forces methodology can be helpful in order to do the deeper analysis of the company situation; however, it can examine the business strategies that the company can be used in the market for the affectivity.

  • Threats of new entrants

Samsung’s smartphones have the low threat of the new entrants because the company has the well-established market; the rate of new entrant is quite low because the new companies have to spend a lot of money if want to compete in the market, it is not easy to make new customers. However, there is the need of the capital requirement and the huge manufacturing costs because the industry is at maturity stage. The high level of research and development costs ids requires, thus, there could be the barriers like patents as the existing brands have the loyalty, Samsung’s smartphones have the loyal customer since years in the market and the company is effectively competing in the market so there can be retaliation in the direction of any new entry, therefore, Samsung’s smartphones are push to innovate in the industry but there is less danger, however, the company already has the existing enemies.

  • Threats of substitutes

Regarding the threats of the substitute products is moderate in the industry because people across the world are connected through the communication. People or the users have the ability to access or contact through the internet services, e-mails, newspapers etc. There are different applications at the cheaper prices from which the people can stay connected; therefore, there can be the less demand of the smartphones, notebooks in the future as the digital camera can take better pictures. However, Samsung smartphones based on the Android devices that are very cheap so there is a moderate threat of substitute.

  • Bargaining power of buyer

In the smartphones industry the bargaining power of the suppliers are high because the differentiation among the products or smartphones is an ideal, however, the customer may have the increasing quantity or number of choices in the smartphones or the mobile telecommunication industry. Thus, the customers of the buyer could be able to bargain effectively, therefore, the companies are offering comparable or similar packages so that the customers do not shift to another brand. Samsung buyers have many choices in the market and the smartphones have the low switching cost, consequently, the demand of the customers is highly sensitive.

  • Bargaining power of suppliers

The bargaining power of suppliers is moderate in the smartphones industry because presently there are two main suppliers in the market; Samsung is focused on innovation, the main suppliers are, the hardware manufacturers and the others are the software developers. Thus, it can be said that there intense competition among the companies supplier’s and the companies especially Samsung wants the advanced mobile phones, therefore, there is the of better equipment makers. However, Samsung’s smartphones have very strong position in the market, there are high numbers of the equipment suppliers, and subsequently, suppliers in the industry can bargain and negotiate.

  • Industry rivalry

There is the high competition in the smartphones industry; Samsung’s smartphones are also facing the high industry rivalry. The major competitor of the Samsung’s smartphones is iPhone by Apple, however, the companies in the industry are focused on the differentiate the applications and services, the companies are launching the new products every year, in order to compete for each other, moreover, competition is more intense in the smartphones industry.

Competitor Analysis

In the smartphones industry, innovation is the key to success because the customers are motivated to pay the high cost for the advance technology; Samsung’s smartphones are facing the competition in the market and industry as the competitors are focused on providing the better technology to the customers. Thus, there is also the huge competition in the Android market that Samsung’s smartphones are facing by Oppo, Huawei, Sony, Lenovo, Nokia, Intel, Xiaomi, Hewlett-Packard etc. In the smartphone industry, the customers have the higher expectations, this is the reason that the companies are continuous towards the technological innovation and companies are launching the new products at the high and reasonable prices in the market (Shepard, 2016).

Regarding competitors advantages Samsung is enjoying high-profit margin in the industry, it is the world largest smartphone maker and getting good revenues in the industry because struggling for the benefits in the market, not only in the smartphones but Samsung is focused on the technological aspects of every field or product, so that there could be benefits in the market (Jung-a, 2016).

There are other Chinese brands that are the focus on to make maximum customers in the market and the making the smartphones industry is the innovative segment, these companies have the maximum customers because of the lower prices. Competition is intense in the industry because the competitors have the diverse products or smartphones for all types of customers in the market, Apple iPhone is admired by its customers. However, through analysis, it is known that Samsung smartphones are still lacking somewhere the models and market conditions are not satisfactory because there is not much customer satisfaction. Samsung’s smartphones and the other smartphones with the Android applications example Oppo, Huawei, Lenovo have targeted the budget-conscious shoppers and the competitors are still continuous towards the technological innovations so that maximum customers could be attracted (Chowdhry, 2015).

SWOT analysis is best to focus on the competitor analysis that is in the smartphones industry; however, it can be used intensely and scientifically (Strauss, 2010).

  • Strengths

Samsung’s smartphones have various strengths in the industry, as it has the decent brand image and company is focused on the extraordinary R&D, however, there is the wide range of product Samsung’s smartphones so that customers from every social class can be attracted. Thus, the customers of Samsung’s smartphones are loyal as they have recognition of the company products, after focus on the innovation of product the company have the massive marketing budget based on which the smartphones by the company are good seller in the market, as the company did this recently with S8, there are highly paid advertisements. Samsung is also focused on the legal environment.

  • Weaknesses

There are weaknesses of the Samsung’s smartphones as, the company has many smartphone prototypes in the market, and thus, the company suffers the issues of the low return margin. Samsung’s smartphones are also facing the issues of the low-end segment and technological innovation.

  • Opportunities

Samsung’s smartphones have the opportunities in the market as the company can rise in the different market, example China by lower down the prices and providing the customers with the advancement from technological aspects.  Moreover, Samsung’s smartphones can focus on the effective and quality applications so that the customer interest can be developed in the market. Though proposing additional services customers can be motivated (Kang, 2016).

  • Threats

Samsung’s smartphones are facing the threats in the market, as there are cost opponents in the China. The company also has the contradiction of Apple, as the Samsung’s smartphones are facing the lawful battle in the industry. Another threat could be of fast technological variation because companies are focused towards bringing the new technology to the market.

Marketing Objectives

Samsung is recognized as a quality and reliable smartphone manufacturer due to its innovative products. The company manufactures phones according to dynamic customer requirements. The South Korean conglomerate has earned unbelievable fame and profit due to its smartphones. Its smartphones have become a symbol of quality. When it comes to buying an Android phone people prefer to buy Samsung phones.  The company isn’t only known for its products but it is famous for its supreme customer services as well. It has a faster customer service so people buy its products. The most powerful and influential aspect of the marketing mix is the product variation. Previously, the company worked hard and faced many difficulties as compared to its competitors. Samsung company is a relatable and authentic brand but when it comes to buying home appliance it can’t beat LG. The market, quality, and service of LG are better than Samsung. LG is the first company to introduce something unique and innovative while Samsung also tries to provide excellent products by using the latest technology (Kleinmann, et al., 2012).

There are many direct and indirect retailers working with Samsung and they sell its products. They have included Samsung in their list because the company is known as a world’s famous brand. The company serves as the best alternative for consumers and it offers different electronic products including LCDs and laptops. Customers like to buy products from Samsung because the company offers discounts, less concentration is required for monitoring of distribution channels, and they pay the minimum to distribution channels. For example, Samsung offers discounts every now and then, hold sponsor events, and engage with national and international events and festivals.

Samsung uses different approaches and strategies for its promotion so customers attract toward the brand and buy its products.  Therefore, the marketing strategy of the company is strong and it helps the firm to grow and make progress in multiple aspects. Moreover, it is worth mentioning that the South Korean firm gave a chance to non-famous people to contribute in this breathtaking commercial so that they can advertisement winning. Therefore, a successful commercial can increase public image of the company.

Segmentation, Targeting, and Positioning

  • Segmentation

According to the current marketing definition, Psychographic and Behavioral segmentation are those definitions that represent existing segmentation strategy of Samsung in the best way.

Geographic: The company has made a Galaxy segment for urban areas and Samsung Guru Segment for rural areas. The South Korean firm is known for manufacturing quality phones and it has the largest market share as compared to other mobile phone makers. The company has added different mobile categories with a specific budget bracket in its lineup. Thus, there is something for everyone in Samsung stores.

Demographics: The company offers the smartphone for youth under the 16-29 age groups. Middle-class people can use Samsung Guru because they can easily afford it, it is the number one choice for lower class workers. The Guru smartphone comes in many variants and it is available with the 3G facility as well. If you are looking to buy a 3G phone at cheap rates then opt for this smartphone. While Samsung Galaxy series is for middle-class people and especially those people who want to buy a quality smartphone with latest features. This classification shows that the company cares it customers and it offers mobiles to customers according to needs, budget, and requirements. Samsung has also made an alliance with some IT industry leaders for introducing relevant enterprise solutions. It will offer comprehensive solutions through the implementation of the latest technology. Samsung Galaxy S6, S7 is the number one choice when it comes to using mobile at the enterprise level. The company offers strong security features so data of professionals is safe and they can reach their data anytime anywhere.

Psychographic: Samsung caters to those people as well who buy a mobile according to their lifestyle. The company offers some conjure phones as well such as Samsung S7 comes in Pink Gold color, which is especially for women. The company offers cheaper phones as well in the range of $120-$200 While, the mid-range mobiles start from $250 and can be purchased in $400. The high-end devices carry a high price tag and the come under $500-$800 price range. Customers have a liberty to choose a mobile according to choice, lifestyle, and budget (McDonald & Meldrum, 2013).

  • Targeting

After making market segments on the basis of different classes and groups, the targets need to be identified and chosen. The company targets various customers and some of them are young people who adopt fashion and latest technology quickly, executives, business owners, professionals, students, and other common users of mobiles. Every kind of company can use mobiles of Samsung because they have a user-friendly interface. Moreover, the company offers discounts as well through its promotions. The target of the company is not only attracting more customers but retaining loyal customers as well.

  • Positioning

Positioning refers to the customer awareness about a brand and its uniqueness as compared to others. Products can be positioned on the basis of product attributes and features. The company has adopted different strategies for positioning itself in the smartphone market and some of these strategies are subsequent,

  • Samsung put emphasis on the real margin that is generated especially from mid-end and high-end customer segments.
  • Promote products through Samsung concept stores.
  • Devices have categorized in the market according to features, functions, and price.
  • The care network of the company is wider.
  • The company offers access to its care line to its valuable customers.
  • It is the pioneer company who introduced 3G into smartphones, the company brings innovative products with the latest technology.
  • The major objective of the company is to brand itself as a synonym for quality so when it comes to buying quality products customers choose Samsung. The firm has created worth of its products by giving importance to quality.
  • It has created an image of a unique brand and people know it as a high-end brand.

Marketing Strategy Formulation

Samsung has the number of the series of smartphones, in order to get the advantages in the market, the company is focused on the higher economic status, as the company has targeted the budget-conscious consumers in the market and there is the premium built quality of the products so that the customer attracted. For the effective marketing strategies the company is making its smartphones through focused on the technological innovation and through diversified product portfolio so that the customers stay loyal, for the effective marketing strategies, the company is focused on the branding, social media and continuous research through focusing on the product-oriented and pricing marketing strategy (Burrow & Fowler, 2015).

The company is offering exciting features, example, the fingerprint scanner and the fast charging capabilities so that the interest of the customers could be developed, however, the Samsung smartphone is known as premium smartphone devices based on its marketing strategies as the company is offering the diverse products. Social media is the major concern of the Samsung smartphone because the company knew that customer could be attracted. Before the Samsung smartphone releases, there are blogs, print and the advertisement of the products, example of an S8 latest phone could be taken, the hype of the phone is created before it launches so that customers could be attracted and the innovators desire in order to get the new phone in the market.

Samsung smartphone is also better from the technological aspect, as the company is focused on providing the new or latest technology to the customer for the progress in the market, in this way, the company is also maintaining the competitive advantage. The latest technology that Samsung smartphone are having is the IPS display technology and the other AMOLED display technology based on the new technology the product is promoted by the company. However, the company is using the skimming pricing strategy in order to attract the customers, for the promotion, branding, and pricing of the Samsung smartphone there are continuous efforts that are done by the company.

Marketing and Promotion Mix Variables

Smartphones industry is concerned about the marketing and promotional strategies, however, for the marketing and promotional mix, Samsung smartphone is focused on the marketing mix so that the products of the company can be known by the customers as the customers should have the brand awareness. Therefore, Samsung Galaxy is considered as the brand builders for Samsung because the company has invested well on it and Samsung Galaxy series are giving higher profit to the company.

The marketing mix is focused on the new product new and creative products with the excellent service in the industry thus; the customer service is focused on the trusted performance so that there could be the brand equity. Moreover, Samsung smartphone is hit and getting the advantages in the market because of friendly software, the Android phones by the Samsung smartphone are focuses on the effective marketing strategy.

  • Product

The Samsung smartphone is in wide range, however, the company is serving over 600 million customers worldwide, the Samsung is known as the largest manufacturer of Android because the company is covering 36% of the market. However, Samsung smartphone is available in different series, example, and series of Galaxy Note, series of Galaxy Y, series of Galaxy S, series of Galaxy Tab and series of Galaxy Grand etc.

  • Place

Samsung smartphone is focused on the location and distribution schemes so that best places could be selected by the company, there is focus on the concepts of channel marketing so that the product can be available at every place in the market. There are also sales and service dealers of the company that made the possible solutions for the customer or focus on the demand and opportunities to expand in the market. Samsung smartphone is also available in in-store shares and in the Samsung showrooms. The company also focuses on the modern retailers for the extraordinary advantages of the market.

  • Promotions

Samsung smartphone focuses on the new product launches and schemes for the promotion of the new products, the company focus on updating the products on the local media and social media is that maximum customers could be aware of the new product. Thus, Samsung smartphone also advertise in the newspapers and other electronic media, the company want to focus as a global giant, however, celebrities are invited to the launch of the new product for the global appeal (Boone & Kurtz, 2014).

  • Price

Samsung smartphone has various prices range in the market because of the wide range of products; the company is focused on various pricing methods for the benefits and revenue in the market. Thus, the company has the innovative products example S8 is offered with the competitive pricing schemes. Based on other reasons company is also focused on the skimming price and the reduction of its price.

Promotional Strategy

Samsung smartphone is focused on the promotional strategies so that there could be the effectiveness in the market, the company is promoting the brand through implementing effective strategies. Samsung smartphones are focused on the promotional strategy through the marketing strategy, however, the company on the launch of the new product focuses on giving the print brochures, posters and the specification sheets to the customers so that people could know about the new product. Thus, the products are also displayed on the Samsung’s website there is also the information of the specific product, the retail outlets also participate in the events, example, there is the Royal Windsor horse show and the other shows or games that include the Samsung open tennis tournament.

Moreover, Samsung smartphone also advertises in the newspapers and other electronic media, the Samsung smartphones also using other marketing approaches so that the customer attention could be grasping, thus, the employees are concerned in order to know about the customer reactions about the phone and its latest digital technology. Beside these promotional activities, the Samsung smartphones use the incentive program, charity programs and the promotional gifts for effective sales in future. Customer appreciation, after sales strategies are also focused on the company so that there could be the complete analysis of the customers’ behavior regarding new phone (Ferrell & Hartline, 2010).

Marketing Budget against Forecasts

Samsung forecasts about the best quarterly profit that the company will earn in more than three years. Samsung smartphones are getting maximum advantages in the market, as it is forecasted that the company has beating expectations in few months of this year. The quarterly marketing budget was focused and it is known that Samsung smartphones will rapidly recover from the costly failure that was there in the market, however, the Samsung smartphones have recorded the 2.134 million sales in the late March in the year 2017, it is expected that in the recent year, the company will grow in the market as the investors and the analysts expect the growth and the best-ever profit that is quarterly in the month April-June. Samsung smartphone has decided on the best budget for the Galaxy S8 smartphone and it is known that it would be a premium device in the market, the customers will be happy to buy these products and thus, the company can recover its market share (Reuters, 2017).

Critical Analysis

The Samsung market is also increasing with the increase in the smartphones industry because the company has targeted the customers from different social classes, as the company has diverse products or smartphones for all types of customers. Apple iPhone has the better position in the market, the smartphones are admired, no doubt Samsung also have attractive and competitive smartphones in the market, however, still lacking in some aspects because Apple has the maximum level of satisfied customers as compared with the Samsung (Jones, 2017). Moreover, Samsung smartphones are compatible with the Apple iPhone in the industry, as the smartphones industry is the innovative segment; therefore, the companies need to focus on the continuous innovation in order to get the advantages in the market.

Moreover, Samsung smartphones have the deeper level of engagements with the customers in the market because Samsung is ranked as a market leader in the year 2016 by earning the good share or market share of 22.3% however, the competitor Apple earned about 12.9% of the share. Samsung has attractive and competitive smartphones in the market. Thus, the company is growing in the market with the continuous efforts; the Samsung grew stay focused on the high share in the industry and the current smartphone of the company which is S8 have the excellence quality and the exceeds quality because the technological standards are managed by the company, moreover, new Samsung’s smartphones has the special features with the attractive or inferior prices as compared to the technologies the company is giving to its customers.

The company is continuous towards the technological innovation and providing the stimulating indistinguishable features to the customers, mobile phone industry is the innovative industry. Samsung smartphones are facilitating the routine because the company has the establishing the trust-based relationship through focuses on the customer needs by a spotlight on the different characteristics or needs (Cecere, et al., 2014). Samsung in this way needs to carry on with it significant operation in the market, as a company could focus on the re-launch of the products that are failed in the market.


While concluding, it could be said that Samsung’s smartphones have the opportunities in the market, the company need to focus on its products that are failed in the market example Note series, Samsung’s smartphones should focus on the advancement from technological aspects. However, Samsung is lacking in some aspects because Apple has a maximum level of satisfied customers, therefore, the company needs to focus on to bring the customer satisfaction in order to get the competitive advantages in the market.

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