C. MARKETING PLAN SUMMARY
Samsung promises to make and convey quality items and services that enhance convenience and foster smarter lifestyles for its customers around the globe. Samsung is devoted to enhancing the worldwide community through its constant pursuit of ground-breaking innovations and value creation.
D. SITUATION ANALYSIS
• Mission & Vision
The company mission is “To enrich people’s lives and social responsibilities, to contribute to sustainable future innovative technologies, product, and the aspiration for the design inspiration for the future society. ” This mission is related to their vision that is “Inspire the World, Create the Future.” It is the company’s belief that aligning their business with the company’s vision and mission can help Samsung survive in the market, maintain the market share, and become a top five brands of the world by 2020.
As Samsung Electronics our main products that will be marketed are mobile smart phones, televisions, laptops, camera’s and camcorders etc. In as much as we have so many other electronics and appliances on offer, mobile smart phones are the main focus of this marketing plan. Like many other electronics companies, Samsung’s primary concentration is on the short term goals of maximum profitability, and on the long term, mainly market share. In this plan, we will outline the main strategies we will employ to achieve the large percent of the market that is our goal. This report will also give detailed projections and forecasts of the sales required to reach our target market and achieve maximum market share.
• Internal Analysis
1. Company Analysis
At Samsung, we endeavour to secure three fundamental capabilities: product leadership, market leadership, and people-centred leadership. It provides superior high quality and regularly updated products to further ensure its success as a top electronics manufacturer, thereby contributing to a better global society.” Samsung improves the quality of everyday life of users with innovative phones combining style and technology excellence while leading the industry in green technology. The Samsung Sustainability Report 2017 shows that there was an increase in product innovation for eco-friendly products from 58% in 2014 to 86% in 2016. Also, its research and development efforts are specially concentrated in the area of technological capabilities and developing new growth products such as smart phones.
• External Analysis
Samsung Electronics’ products not only for Korean market, because the product is appropriate for everybody and from every country.
The target market of Samsung is the customers with the age group of 15 to 50 years who follow the latest technology trend and has the ability to purchase and use the products offered by Samsung. Teenagers to early adults (age 15 – 25) are mostly technology savvy and are usually Samsung’s smartphone target audience. Adults (age 26-50) purchase any offered product of Samsung be it smartphones, smart TV, cameras and other household items. This segment of customers is expected to grow in the future. Mobile phone that uses Android is a trend now, and Samsung Electronics is following this trend.
Samsung provides stand out products to ensure its success as a top electronic manufacturer. Its research and development are specially focusing in the area of technological capabilities and creating high quality products. Recently, Samsung acquired Harman International to capture the market of connected car and to offer the quality products that appeal automaker procurement choice and consumer preference.
2. Competitor Analysis
As the market of today has been globalized, there are many brands that offer same type of products and compete against each other to gain share in the market.
The biggest competitor for Samsung Electronics in terms of smart phones is Apple. From 2011 Apple and Samsung Electronic always compete with each other in smart phones. It is iPhone versus Galaxy Note and Galaxy S. HTC was the first company that produces phones with Android mobile device and the first company that produced first touch screen smart phones in the world. In the second quarter 2011, HTC became third largest smart phones company, after Apple and Samsung.
3. Political and legal environment
Samsung has been at times subjected to political action law suit. For instance, it has been subjected to copyright law suit. According to the New York Times of 27th June 2018, Apple and Samsung settled a seven-year legal fight, ending the most prominent case in a series of lawsuits over smartphone patents over the last decade. The companies did not disclose the settlement amount. A jury in May ordered Samsung to pay Apple $539 million for infringing on its patents.
4. Economic environment
The recession that hit America in 2007 negatively affected the sale of Samsung phones in the US. Fluctuation of the dollar also affects the sale of Samsung phones as devaluation of local currencies affects the pricing of the Samsung products.
5. Social and cultural environment
There has been a trend in various places that Samsung produces the best smart phones. Therefore, consumers around the world are influenced by this notion that Samsung produces the best smart phone.
6. Technological environment
Samsung is ranked as one of the most innovative companies. The software and applications available in the Samsung phone makes it exclusive. In the global dynamic economy, technology has developed more rapid than ever. Improvement in technology made the electronic product cheaper and cheaper. Gap between scientific findings and new products has been shortened. Product lines also are completed and updated regularly. Samsung has strongly focused on its quality. For this reason, a great amount of money has been invested in technology improvement. To survive and further win competitors, Samsung spends a great amount of fund on R;D.