Samsung is a global leader in information technology managing more than 200 subsidiaries around the world. The company began its operation in Suwon, Korea in 1969. 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 groundbreaking innovations and value creation.
The target market of Samsung is the customers with the age group of 15 to 50 years 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.
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. According to Gartner’s website, Samsung has reached a striking market share of 22.3 percent worldwide making it a leader in a smartphone industry. 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.
The goals of the company are divided into two parts i.e. Quantitative and Qualitative goals.
The quantitative goals of Samsung are following:
• To achieve USD 400 billion in sales
• To be predominantly No. 1 in global IT sector and global top 5.
The qualitative goals of Samsung are to be:
• Innovative company
• Respected company
• Top 10 world’s best workplace
• Creative leader building new markets
• Global organization that attracts the world’s best talents.
Following are the strategies of Samsung:
• The main strategy of the company is intellectual capital to contribute to a better global society.
• Organizational creativity to make it an innovative organization.
• Technology innovation to continue to be the leader in the market.
• Employee empowerment for the excellent and active performances.
Annual Marketing Budget
Samsung is one of the top companies in the world who spend extravagant sum of money to market its products. In 2016, Samsung spent $10bn on marketing its products from which it spent $3.3bn for its advertising budget.
Marketing Mix of Samsung
Samsung has a vast product portfolio and proved the quality in many products it created over time. The product portfolio includes tablets, mobile phones, TV, Cameras and camcorders, Refrigerators, Air conditioners, washing machine, microwave oven, Laptops, printers and accessories. There is a strong brand image of Samsung because of the innovative products it offered in the market. Smartphones of Samsung have gained a status symbol. Thus, product portfolio is the strongest element in the marketing mix.
Samsung uses competitive pricing for TV, Ac, refrigerators, etc to beat Panasonic and LG. whereas, Samsung uses skimming price for smartphones. When the product is launched, Samsung offers high value but drops the price when competitors launch the similar product.
Samsung is a global company and its products are available around the globe.
• Samsung gives offer and discounts to its trade partners to motivate them.
• Uses strong tactics to push the product through sales promotion.
• Pulling the customers through advertisement.
Samsung has a direct competition with Apple in smartphone business and in other electronic products; its competitors are Panasonic and LG.
• High quality products
• R&D and Innovation
• Strong hold in Consumer Electronics
• Focus on environment
• Low production cost
• Cultural diversification
• Relatively low profit margins
• Main competitors are also large buyers
• Focus on too many product lines
• Patent infringement
• About Samsung, Retrieved from http://www.samsung.com/pk/aboutsamsung/
• Samsung Market share, Retrieved from: http://www.gartner.com/newsroom/id/3415117 on September 26th, 2016.
• Samsung Marketing Budget: Retrieved from http://www.ibtimes.co.uk/samsung-14bn-marketing-budget-biggest-history-525979