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Advertising analysis to get samsung composition


Samsung opened by Byung-Chull Lee about March you, 1938, in Taegu, Korea, with 40, 000 earned. Initially his business focused primarily in trade foreign trade, selling dried up Korean seafood, vegetables, and fruit to Manchuria and Beijing. In little more than a decade, Samsung-which means “three stars in Korean-would have got its own flour mills and confectionery devices, its own production and product sales operations, and ultimately evolve to become the modern global firm that still bears the same name today.

For over 70 years, Samsung has been specialized in making a much better worldthrough various businesses that today duration advance technology, semiconductors, skyscraper, plant structure, petrochemical, fashion, medicine, financial, hotels plus more.

The range topping company, Samsung Electronics, qualified prospects the global market in hightech electronics manufacturing and digital media. The samsung company move to partner with Google for their Android OPERATING-SYSTEM and the recent series of Mobile phone has enormously brought their particular revenue to greater heights. This summer, the great Samsung GALAXY S II sold much more than 10 mil units worldwide, achieving the Number

you global market share for smartphones (2011 Korean Electronics Gross annual Report).

Around 94. five per cent of Singapore household provides a hand phone in 2008. Likely the percentage must be higher right now. The features of a hand phone have progressed greatly with this decade. From means of conversation via TEXT MESSAGE and telephone calls, hand phone or rather Smartphone serves consumers a far selection of functions today. A Smart phone offers even more advance computing ability and connectivity then conventional cellphone. Generally the founded Smartphone brands in Singapore are Apple, Samsung, Nokia, HTC & Motorola.

The rapid growth and accomplishment of Samsung korea are the explanations why our group chose american presto. We hope through in-depth study and examination can we better understand the accomplishment factors behind this rapidly jumped brand, particularly in the Touch screen phone industry.

installment payments on your SURVEY STUDY

Survey research approach is performed via customer survey targeting average person. It can be used to collect information about householder’s knowledge, attitudes, preferences, or perhaps buying behavior for Smartphones. Basha and Harter (1980) state that “a population is usually any pair of persons or perhaps objects that possesses by least 1 common characteristic. Through the survey, we sample a population which usually we hope may be representative of the Singapore customers. This approach is usually selected by the group since it is the most widespread method to accumulated primary info to meet our research goals. Through the main data accumulated, we hope to draw certain information through analysis in consumer behavior on the acquiring smartphones.

Exploration Objectives

The goal of this study is to figure out our responders behaviour and attitude toward smartphone. All of us segmented the questionnaire in to 4Ps particularly product, selling price, place and promotion. Really is endless that with this survey finding we are able to better understand the needs of smartphone users, why they will or are not using and also the reason why others are not using Samsung touch screen phone and the likelihood of them using Samsung at a later date. With the findings, we hope to draw definitive data and make recommendations.

2 . 2Contact Method

We all personally provided out the review forms while shown in Appendix one particular to the average person at Ang Mo Kio Hub and Nanyang Polytechnic. We have provided to 41 respondents and used 40 of them for analysis (11 were regarded as emptiness due to inadequate information or non completion)

2 . 3

Sampling Strategy & Survey Questions

A segment from the population picked for marketing research to symbolize the population as a whole. The review is to be done with a sample size of 40. The concerns were limited to twelve to avoid being too lengthy resulting in exhaustion respondents. Initially part of the review included data pertaining respondents’ background such as gender & age which in turn we proceed to gathering info like client preference. Five point Likert

range was used to measure handful of variables.

several. CUSTOMER

We will even more describe the client segment intended for Samsung smartphones using demographic, psychographic and behavioural factors.

several. 1Demographic elements

The targeted segment is made for both guy and female, likely age among 14 and 55, skewed more towards the Gen Y. The country or area should have good network (Eg: 3-G, 4G, wireless connection) to assure optimal using Smartphone features.

3. 2Psychographic factors

You will discover basically 3 segments of users generally in which Samsung korea wishes to focus on; entertainment focused, communication-focused and information-centric users.

The entertainment-focused users are generally more youthful group which usually see a mobile device being a lifestyle choice, and they’re willing to pay extra for the device that’ll help keep these people entertained. Entertainment can also comprise of social messaging with friends, facebook and networking. The communication-focused users are extroverts who live to speak with others. They’re often in people-facing jobs like product sales. They’re willing to pay extra for the mobile device that let us them keep up with others in multiple ways. E-mail, TEXT MESSAGE, voice, webinar, video calling ” basically, anything communication-related can be compelling to them, and they’ll pay extra for a device that will it well. The information-centric users are more introverted. Rather than concentrating on their dialog with other folks, they tend to carry out a lot of thinking on their own, and want their mobile unit to be amemory supplement and a means to get new details. They’re willing to pay extra for features that help them record and remember tips and information.

3. 3Behavioural factors

Earlier users of Samsung (Be it handphone or different appliances) will more than likely purchase Korean again as a result of familiarity and if they have experienced pleasant experience with the phone, the probability of repurchase can be high.


4. 1Product

a. 3 Levels of Product

An item is normally defined as the physical items that buyers purchase. Yet actually the nature of a product could be further explored in three or more levels. These are the Core Item, The Actual Merchandise and The Increased Product which can be further described in Appendix 3.

Smartphone industry keeps growing rapidly with many new brands coming in for any slice of market share every fighting to fulfilling client growing wants. Understanding the a few levels of item can better enable Samsung to position itself.

Based on Kotler’s Three Amount of Product Structure, the The samsung company smartphone core product is supplying consumers device of connection. Through productdifferentiation of cell phones, consumers are given a variety of choice for you see, the product while illustrated in Appendix 3. Samsung’s approach will ensure it really is already on the finishing line when consumer tastes transform hence this produces a vast product range for each taste and demand.

b. Consumer Product

The samsung company smartphone is definitely categorised as being a Shopping Item. Consumers will certainly compare around the price, style, function, quality and appropriateness of the smartphone due to the multiple brands and model in the market. Having achieved unmatched global competitiveness in hardware, Samsung korea has been focusing on enhancing it is software functions in interface, user encounter, and style and manufacturer awareness. To keep competitive, The samsung company must continuously develop quality and progressive smartphones in which to stay the lead.

c. Brand Development Strategy

The most difficult step in making a marketing program is normally the technique of developing a manufacturer strategy. It has been the biggest concern face by simply most businesses but it is a crucial step in resulting in the company identity. In the mobile phone market, Korean branding nonetheless falls at the rear of Apple. However Samsung lately has been extremely aggressive and rapidly attaining market share. We will will leave your site and go to discuss Samsung brand advancement strategy.

‘While many companies that sponsor situations are focused on improving their brand awareness, Samsung Electronics examines things slightly differently. The Korean giant ” a major sponsor with the recent Junior Olympic Games (YOG) “

says that “brand preference is a better indicator of whether or not its purchase has paid dividends. ‘ (The Straits Time, 13 Sept 2010)

Samsung sponsors in Children Olympic Games (YOG) and the forthcoming London 2012 Olympics will certainly provide good profile and brand power. Through sponsorship in the Olympics, Samsung seeks to, through user encounter boost up their brand.

g. Survey End result on Concentrate on Segment Notion (Product)

From your survey studies, 94% in the respondents are smartphone users with with 2 respondents one non-smartphone user and one unsure. We have checked out with the not sure respondent and respondent was using a smartphone bought to her by her daughter. The strong percentage of smartphone users 94% as per survey results confirmed a strong And 60% in the respondents replied they are likely to purchase The samsung company for their up coming phone.

4. 2Price

a. General Charges Approach

Cost will always be the real key concern of customers’ before making virtually any purchasing decision (Smith and Carsky, 1996). The level of cost is found to positively impact behavioral intentions mainly because value establishes image of the brand inside the eyes of the consumers (Aaker, 1991). The purchase price set for almost any product which include smartphone is essential as it directly impacts in consumer order.

The company’s range of low- to high-end cell phones caters to nearly all budget. Depending on client recognized value and market offerings, Samsung adoptsa value based pricing approach. ‘If there is a consumer for doing it, we will give you the product, says Younghee Lee, senior vice-president of potential for Samsung’s mobile business. ‘ (The Business Time, 17 Drive 2011)

w. Price When compared to Competitors

The samsung company stays on the competitive cost and using its vast manufacturer product line; every range of prices is met using a product. We have used the recent kick off of Korean S3 Mobile phone with its competition as illustrated in Appendix 4. Samsung korea S3 smartphone is considered the top quality product series in the smart phone market and have picked close competitors mainly Apple iPhone 4S and HTC 1. From the assessment, though The samsung company S3 is the latest merchandise launch between the three phones, it continue to stays for a lower than $100 selling price difference with competitors. The retail price Samsung provides is very near its opponents giving it an advantage over these people.

c. Product Mix Prices Strategies

The product mix is a collection of services and products that a business chooses to offer its industry and charges strategies based on what objectives the company acquired set for them.

Samsung’s product approach is to produce Android gadgets across various price items and overflow the market through as many providers across the world as is possible. The original Galaxy S was sold through about 240 different global vendors.

Product-line pricing require setting price for different items within a wide array of products at diverse price point is definitely the strategy The samsung company applied for smart phone. For example , Samsung had a large amount of smartphones goods with different design and style and feature for different rates as shown in Appendix 5. The higher the characteristic and advantage obtain, the larger the consumer need to pay.

d. Price Adjustment Approaches

A set of tactics used by companies to adjusted their basic prices to account for different customer differences and changing situations. Thecommonly use strategies are Low cost and Permitting Pricing, Segmented Pricing, Psychological Pricing and Promotional Pricing.

In the smartphone market, discount and allowance pricing adjustment technique is commonly utilized. This strategy enables companies to modify their standard price to reward buyers for certain answers, such as early on payment of bills, volume level purchases, and off-season ordering. This strategy is many forms.

Seasonal price cut is a value reduction to buyers who also buy items or companies out of season. For example , when The samsung company Galaxy S3 is release, the price of The samsung company Galaxy S2 was lowered. In this scenario, older model of smartphone is the same as off season items. Seller will offer you discount to encourage the purchaser to purchase off older designs.

Allowances will be another type of reduction from the list price. For instance , trade-in allowances are price reductions offered for turning in an old item when buying home. Trade-in allowances are most frequent in suppliers selling touch screen phone.

e. Survey Result about Target Segment Perception (Price)

Through our survey results, most participants rated price as ‘most important’ aspect to consider when buying a smartphone.

An interesting thing to note can be 40% with the respondents mentioned they will

pay about $300 for the smartphone and 30% pointed out they are willing to pay more than $1500 for a mobile phone. It is therefore important to draw particular data to comprehend the needs and wishes for those segmented clients.

4. 3Place

a. Number of channel levels

Place is additionally known as funnel, distribution or perhaps intermediary. It’s the mechanism whereby goods happen to be moved through the manufacturer for the consumer. We have analysed Samsung korea smartphone syndication as demonstrated in Appendix 6.

Samsung practises roundabout channels using selective syndication. The channel contains 1 to 2 intermediary amounts. Through the main telcos and authorised sellers, Samsung circulation in Singapore is very strong, and this is exactly what Samsung korea wants. One can possibly purchase a The samsung company Smartphone each and every neighbourhood in Singapore. Most authorised marketers were given item training & support when needed. Every telco (SingTel, M1, Starhub) also have dedicated staff to supply training & desk support to buyers should they need assistance in order to use the mobile phones.

w. Channel power

From the Appendix 6, the distribution programs are intense diverting to 300 stores making it readily available for consumers. The large and extensive channels are one aspect for Samsung success.

c. Number of outlets, position

The stores for Singapore are predicted to be more than 300, with at least one store in every neighbourhood and the supply to buy on the net with totally free delivery.

deb. Survey Result on Focus on Segment Belief (Place)

From our survey outcomes, 99% from the respondents bought their mobile phone through the several channels with 49% through telco and dealers. Consumers prefer shopping for phones with contracted lines and this might suggest Korean can consider giving a better incentive to telcos and dealers to help boost up their particular sales.

some. 4Promotion

a. Marketing Communications Objectives

Marketing communications objectives is definitely paramount to marketing accomplishment. If there is simply no objective, than there will be absolutely no way to measure the marketing accomplishment. After all, an objective is the target intended to attained, which should be attainable and can be measured.

Understanding the Support life Cycle (as illustrated in Appendix 7) of each merchandise can enable the company to respond with the marcom objectives. Though Samsung started out its Smartphone in 2008, in our view the stage for The samsung company smartphone are at its maturity stage inside the Singapore context. During launch of a new smartphone, the objectives could be more informative just like:

Telling marketplace about the brand new product

Explaining how a product works

Suggest fresh uses for an item

Marketing work by Samsung is normally executed for kick off of new goods. As for their particular existing goods, it is carried out together with their particular vendors want it fairs and Electronic festivals. The advertising communication goals for these attempts will be different by a new kick off. The targets these hard work is:

Encourage brand switching

Persuading customers to buy now

Build manufacturer preference

Keep item in customers’ mind

Maintain top rated of mind awareness

Promotion Blend

Attractive prices of good goods are not enough for a organization to generate optimum sales and profits. The advantages of products need to be communicated to customers. In marketing, this can be commonly known as “promotion.

The total marketing and sales communications programme is named “promotion mix. Elements of advertising mix include Advertising, Product sales Promotion, Pr, Personal Advertising and Direct Marketing.

The portions of promotion mix used by The samsung company smartphone will be: 1)


Deliver marketer’s message using any paid form of mass media outlets, this involve nonpersonal presentation and promotion of ideas, services or goods by a great identified attract. The 3 purpose of advertising happen to be Informative, Convincing and Reminder.

Samsung continues to be using all purposes because of their advertising campaign in different occasion. Let’s look into Korean individual advertising and marketing purpose and objectives.

Revenue Promotion

Revenue promotions normally refer to encouraging customers to respond or undertake some activity using some sort of incentives through special immediate techniques.

Some of the sales promotions technique used by Korean smart phone is definitely:

a)Joint promotion with Key Telco

Samsung korea smartphone often had joint promotion with major telco to boost up the sales from the smartphone. By way of example thepromotion that was in the Starhub official site that offersSamsung Galaxy S3 at different selling price depending on the plansign up or maybe the Samsung Galaxy S2 at a low price with two years plan. (As shown in Appendix 8)

b)Joint Promotion with Significant Electronic Huge Store

Samsung korea always conduct joint campaign with key electronic mega store during ad-hoc promo fair. Payments like

additional Sdcard, screen guard, casing or 0% interest

instalment plan is often used during such reasonable. This campaign is used to boost the revenue by offering some perks and also to clear inventory for the older version smartphone. (As shown inAppendix 9)

Survey End result on Target Segment Understanding (Promotion)

Through our review findings, respondents rated ‘current mobile program expired’ as the utmost important factor which influence their very own purchase of smart phone. This might always be an important indication for The samsung company to have extreme tie up special offers with the telcos to offer buyers attractive rates for those plans that have expired.

A significant percentage of respondents also pointed out the kick off of newsmartphone is influential in making the purchase. These are likely the consumers whom are willing to shell out a premium price for the newest launch of smartphone. Samsung korea can make use of this and through promoting for example; television set commercial, newspapers advertisements, internet announce the newest launch in a tasteful fashion to attract this segment of consumers.


Constantinides (2006) emphasizes that marketing combine is a structure of the dominant marketing supervision paradigm to identify market expansion, environmental alterations and trends. Several research confirm that the 4Ps is definitely the dependable conceptual platform of professionals dealing with functional marketing concerns (Romano and Ratnatunga, 95; Coviello ainsi que al., 2000). The vast acceptance of the 4Ps amongst field marketers is the result of their serious exposure to idea during university years, since identifying the 4Ps since the manageable parameters is likely to influence the buyer buying process and decisions (Brassington and Pettitt, the year 2003; Soekartawi, 2005a).

We carried out the review to evaluate several segments of customers’ attitude toward 4Ps. It is anticipated that with this survey findings with all the primary info we have gathered can we better understand and give recommendation for Samsungto develop greater understanding of how to serve existing and potential customer depending on 4Ps idea for a basis to meet earnings of their organization. Through our survey, all of us realised an important trend; nearly 94% in the respondents hold a smart mobile phone. Assuming the newest data coming from Singstat saying 95% of Singapore home having a handphone, and get back equate to 94% of them possessing a Smartphone, the total volume of touch screen phone market is estimated to be lowest 3-4Million in Singapore by itself.

Current users of The samsung company are generally pleased with the features and functions with the phone. Even so as Samsung faces close competition having its competitors, Samsung korea needs to continually come out with fresh innovation and technology to stay in the business lead. As Korean is in its maturity level of the product life cycle, Samsung korea needs to identify itself from competitors.

However the tricky part is to placement products throughout different, but overlapping, marketplace segments. It is important to note, yet , that as some buyers may are part of both sectors, positioning statements for a product should never conflict. To avoid perplexing consumers, it can be necessary to produce a broad appeal to equally segments then change the placing slightly inside each segment. As The samsung company smartphone do has many variations, approximate 24, the setting within every range should be unique and clear to consumers.

Total we feel that Samsung has done well to come this far and stay in the lead. The advantages Samsung features over opponents are the vast distribution channels and the great product variants. Samsung need to continue to make sure its suppliers and telcos are given eye-catching incentives which in turn can bring in non Korean users. Samsung should also concentrate on building company loyalty, which will ensure preserve of past and current Samsung consumers. Their main goal ought to be to maintain their very own current market share and extend the product life cycle.


Samsung Gadgets 2011 Annual Report reached on twenty-five June 2012 http://www.samsung.com/us/aboutsamsung/corporateprofile/download/2011_annual _rpt. pdf

Singapore in figures 2011 http://www.singstat.gov.sg/pubn/reference/sif2012.pdf utilized on 25 June 2012

Constantinides E (2006). The Marketing Mix Revisited: Towards the 21st

100 years Marketing. M. Mark Manag, 22: 407-438.

Porter, M., “Competitive Strategy ” Techniques for Examining Industries and Competitors,  (New You are able to: The Free Press, 1980).

Smith, M. Farreneheit., and Carsky, M. M. (1996). Grocery Shopping Behaviour: A Comparison of Involved and Uninvolved Consumers. Diary of

Retailing and Consumer Providers, 39 (2), 73-80.

Aaker, G. A. (1991), Managing Company Equity. Taking advantage of the Value of Brand, Free Press, New York, NYC.

Busha, Charles L., and Stephen P. Harter. Research Strategies in Librarianship: Techniques and Interpretation. Orlando, FL: Educational Press, Inc., 1980. Latino C, Ratnatunga J (1996). The Position of Marketing, Eur J. Indicate, 29: 9-30. Brassington Farreneheit, Pettitt S i9000 (2003). Rules of Marketing, Third Edition, Prentice Hall/Financial Moments. New Jersey.

http://www.bloomberg.com/news/2012-04-27/samsung-overtakes-nokia-as-world-sbiggest-phone-vendor.html http://www.samsung.com/sg/aboutsamsung/corporateprofile/valuesphilosophy.html


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Topic: Market share, Samsung company, Samsung korea, Their particular,

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Published: 12.04.19

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