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Title: Marketing Plan Company Background Samsung Samsung was founded in 1938 in Taste, Korea which they started off as a small export business before expending into other industries such as, media, ship building and electronics. When the 1997 financial crisis hit nearly all the Korean business, Samsung was able to continue growing thanks to its leadership in digital and network technologies and its concentration on electronics. Till today, Samsung has evolved into a modern global cooperation from its humble beginnings.
Executive Summary Samsung is preparing to lunch its new mobile device which is called Samsung EXEC One, a premium device with a premium build quality and a fluid software with advance features such as voice activated command to be known as their latest premium flagship device. The target market is the consumer and business market by taking advantage of an unfulfilled demand for a premium build device with the latest in software and features.
The primary market objective is to achieve 500,000 sales units by the end of the first year. The primary financial objective is to achieve a sales revenue of $100 million. Current Marketing Situation The smartened market is currently in a matured stage, there is a surplus in the rarity of smartness to choose from in the market as there are multiple variations in each of the phones to suit either personal or professional use.
The year 2012 is the point in time which the smartened industry is deemed to have matured as in that year alone, smartened with touchstones capabilities flooded the market originating from varies MEMO (original equipment manufacturer) and the market share battle was mainly fought around two major operation systems which are Apple Inc. ‘s ISO and Google’s Android. These two operation system makes up 95. 2% of the total market share of smartness with Apple Inc. s ISO leading the charge with 53. 3% and Google’s Android not far behind with 41. 9%.
This is due to Google’s Android popularity being an open operation system which is available for all Samsung Marketing Plan By Main -Adapter MEMO to use and tweak while Apple Inc. ‘s operating system is a closed system where the only MEMO which manufacture are themselves which leads to a lack in the variety but of better overall quality. Both of these systems success can be attributed to the hard-core following behind each system. Figure 1: Breakdown of the semaphore’s operating system by percentage of usage in the U. S. A in the year 2012.
Macro Environment PEST Analysts Political The political climate in the United States is fairly stable. Economical The GAP as well as household income has gone up while the unemployment rate has gone up. Social The year 2012 is the year in which presidential elections. Technological Technological advancement have been making progress especially in wireless communication (LET) Figurer: PEST Analysis of U. S. As Macro Environment In Regards to the Smartened Industry of 2012 Based on the PEST analysis done to analyses the macro environment f the U. S.
A in the year 2012, the political climate although have been fairly stable over the three years of 2011, 2012 and 2013, in the year 2012, it marks the end of President Beam’s first term in the office and with the declining economic environment of the Unites States during that year causes a feeling of uneasiness among the population as the GAP has gone up as well as the household income but by a miniscule percentage of 0. 5%. With an increase in the GAP (Purchasing Power Parity) the employment rate has also gone up by a small percentage of 0. 8%. This is u to the economic downturn.
The social environment on the other hand, eyes were glued to the presidential election of 2012 as President Obama competes again after the end of his first term for a second term with the focus on reviving the economic and a redesign of the healthcare system. Although there are in a state of economic downturn, the technological environment is thriving as the technological sector is constantly improving especially in 2012 with most of the major carriers in the U. S. A adapting for the latest in wireless communication which is LET (Long Term Evolution).
SOOT Analysis SOOT Analysts Strength Innovative product and design, brand awareness and premium hardware and fluid software. Weakness Pricing Opportunity Increasing demand for smartness that are more capable and diverse in their functions and better build Threats Short product life cycle, aggressive competition Figure 3: SOOT analysis of Samsung EXEC One Objective and Issues First half of the year – 200,000 units Second half of the year – 300,000 units Issue analysis Create awareness and hype on the product through a recognized brand with loyal lowers through promoting premium hardware, innovative design, and fluid software.
Marketing strategy: Target medium to upper income professionals, medium to large cooperation’s with product differentiation as a premium device fit for the hectic lifestyle of a executive. Positioning: A premium device made of premium hardware and fluid software which offers professionals a device with the stamina of a marathon runner to cope with their hectic lifestyles. Hands free voice command for entertainment, communication and most importantly, information capabilities. Product strategy:
One year warranty and introduce a refreshed model for the following year through a marketing campaign. The logo of Samsung will be engraved onto the lower back of the phone to enforce consumer’s confidence in the product. Pricing strategy: Introduction price of $299 on contract with selected telecommunications providers such as Verizon Wireless and Sprint with the inclusion of LET package plan and $399 off contract with the inclusion of a limited edition phone casing. Pricing is set equal to a flagship device for an MEMO to gain more market share from Apple Inc. Distribution strategy:
Selective distributions in high end malls, specialty and concept stores, with limited demonstration sets to increase demand and maintain the premium air around the device. Pamphlets distributed will contain detailed specifications of the device and an executive summary in the front page to appeal to both technological as’. N. Y and professionals. Marketing communication strategy: Advertising to create awareness and product differentiation in all media. Sending selected media with significant following on social sites like Backbone, Youth and Google+ such as www. Internationality. Com and www.
Phenomena. Com a phone unit for them to conduct their review of the device as most potential buyers tend to research their potential target device on the web especially through sites unaffiliated with Memo’s as they trust the opinion of the sites to be unbiased and trustworthy. Action Programs Revealed at the end of January January: Kick-off sales promotion campaigns but not revealing the whole device, Just teasers of the device with touting the premium build quality and a promise of a fluid software. Train retail sales personnel’s on the EXEC One features, benefits and advantages.
Grand reveal of the device at an invite only event for media outlets, media sites, floggers as well as professionals where selected reviewers receive their device unit. February: Start integrated print, radio, internet, and social media marketing campaign targeting professionals and tech enthusiasts. Lifting of the sanction on review of the device by selected reviewers on February 4th, one week shy of Valentine’s day to create hype with commercials touting it as a perfect gift. Point of sales signage starts. Join the year’s most renounced trade show for mobile computing, MAC (Mobile World
Congress). March: Marketing campaign continues with the introduction of contests to win a pair of the EXEC One, which runs for three months with winners selected for each month up to May. May: Announce the last winner of the contest in an event and unveil the new advertisement of the EXEC One with endorsement from executives from various industries with special appearance from the CEO of Samsung, endorsing the product in the commercials. Introduction of a new color variant of the device with the same hardware and software to keep the hype going. On Contract sales Expected Sales (Units) 280000
Price per unit $299 Total Revenue Off Contract sales 180000 $399 $71 Total Sales Revenue For On and Off Contract Sales Manufacturing Costs Variable Costs Fixed Costs Overhead Costs Administrative Costs Marketing Costs Other Costs Net Profits CONTROL To monitor the plan’s progress, monthly report will be required for off contract sales from specialized and concept stores while quarterly reports will be required for on contract sales. By reviewing the results of each periods, it can be identified which part of the business is not attained its goals and suitable arrangement will be made to rectify it.
Contingency plan will also be drawn up in order to prepare for cases such as price wars, overwhelming or underwhelming market demand. At the first half of the year, a meeting will be set up to look back on the original goals and determine if any adjustment to the business model is required to achieve it. Conclusion In conclusion, with the increasing demand for a more capable and better build mobile device, by introducing the Samsung EXEC One, to meet the demand of the consumers, Samsung seeks to gain more of the market share from their top competitors, Apple Inc. Analysis is done on the macro environment of U.
S. A and the device itself in order to determine the best way to proceed in terms of marketing the device such as the marketing, positioning, product, pricing, distribution and market communication strategy. Not only that, an action plan is drawn up to map the marketing activities for the product over the first half of the year. Through the analysis also, a budget is drawn up which is to be used as a baseline of comparison for actual results and control procedures are also established in order to ensure the device’s success, prevent and rectify any unforeseeable circumstances. References Business Insider, 2013.