Author will discuss elaborately the current market and impotently scenario of company along with the competitive edges. The recommendations for the marketing strategy will be given In the report on the basis of the segmentation, positioning, targeting and marketing mix functions. Author will Telecommunications. 1. 2 Background of the company: Samsung was founded in 1938 as the trading company in South Korea. In the late 1960 the Samsung entered in the telecommunication industry. From the sass, the Samsung has been increasing its business globally. Samsung Telecommunication is one of the business units of multinational company Samsung Group. Slideshows, 013). Samsung has been become the most popular brand worldwide from 2005 for the electronic products in South Korea and worldwide (Slideshows, 2013). In 2012, Samsung Electronics has become the largest mobile phone maker in worldwide by unit sales. According to the Annual report 2011 of Samsung, the electronics products of the Samsung has been sold and generated a record amount of earning that makes one of the companies as the sustained global leader. Specially, the smart phones have acquired a salient amount of the global mobile phone market competition with other mobile communication companies.
At present the products (mobile phones) of Samsung Telecommunication have been recognizes at all over the world for the top quality and creative for the users in the reasonable price. As of the Q assuaging acquired the 46% market sharing producing the Google Android running devices. At a glance of Samsung mobile market share in 2011 Source: Samsung Annual Report 2011. 2. Analysis of the situation: 2. 1 SOOT analysts: Strengths: In 2011 the demand of the mobile phone worldwide was 1. 5 billion units in all over the world while the Samsung individually sold 330 million of those units.
Don’t waste your time!
Order your assignment!
The amount f the sales exceeded the limit of the expectation of the company. Samsung GALAXY SSL 1 were sold by 20 million from the introduction from the April 2011. On the other hand, GALAXY SO was introduced in middle of the 2012 which gained the most of the smart phone market share worldwide for the outstanding performance and service. The mobile phones of the Samsung have a wider range of the uses and a variety of choice for every class of people around the world. For the outstanding software development in the smart phone, the Mobiles of the Samsung have gained a strong position in the market (BBC, 2013).
Moreover, by the good service of the Samsung SO, this company got 9 million pre order for before the launching of the Samsung SO in 2012. This was the milestone expressing the strong market position in worldwide. (Kim, Ongoing, 2012). Samsung Telecommunication sold by 20 million units of Samsung SO in the 100 days after its introduction in the market May 2012. (Lobo Media Group, 2012). Samsung Telecommunications got 10 million pre orders in the first week of the announcement of the Samsung SO. Samsung is hunting development that balances the control of progressive premium markets with the vitality and attention of evolving markets. Samsung, 2013) Weakness: Dependencies on others for the software have been become a concerning issue form the company. (Run Kumar, 2012). The customers have a negative perception that the Mobile Phones of the Samsung are weak in terms of durability (Slivered, 2012). This has created a negative impact on the conservative customers who are very concern companies for example, Monika. The Samsung has been focusing more on the mass marketing strategy than the niche market. On the other hand, the competition in the market has been increasing day by day.
Still the Monika is considered as the most preferable in the 3rd world countries like India, Bangladesh, and Pakistan etc. Opportunity: The opportunity of the Samsung is very good because it can make the variety of mobile phones for the different users in different countries. As the company has very strong reputation in the market (BBC 2013), the Samsung can launch sub brands to the company. On the other hand, the Samsung can make effective promotion program in developing and 3rd world countries to gain more market sharing. In this respect Samsung can make more stores in those countries.
Samsung can make the smart phones in a cheap price that will increase the sales among the low level consumers in different countries. This opportunity will make the existing customers satisfied and attract new customers to buy the Samsung Mobile phones. The Samsung Telecommunication may launch the more durable products in the market that will attract the conservative customers. As a result the sales and profit margin will be increased. Threats: The increase offers of the competitors (Monika, Motorola, phone etc ) have been increasing day by day. On the other hand, the low cost of Chinese Mobile Phone
Companies’ mobile phones can impact on the business of Samsung market. The emergence of the internet in every country of the world has offering alternative way for the communication via other processes like the Spiky in computer to the customers. Other companies are trying to capture the market share by providing more extra facilities in their mobiles in a cheap rate. Summary of the SOOT analysis: It is apparent that the Samsung Telecommunication has a substantial portfolio of its strength and has a great opportunity to move forward to in the existing and future market around the world.
There are still good amounts of the market where the business of Samsung can be expanded with more convenient mobile phones with a reasonable price. Extensiveness growth and the brand again seem to be the main factors for the success of the organization in the competitive environment. However, there are some threats and risks for the company increasing the alternative products and services to the Samsung Telecommunications. 2. 2 Differential advantage/ competitive Edge: The first section of this part will contain the elaborate discussion looking the competitors’ activities in the telecommunication market around the world.
The competitive edge will be outlined in second part analyzing the different competitors of the Samsung Telecommunication. 2. 2. 1 Competitive analysis: Below, the key competitors of the Samsung Telecommunications are described from different sources. Monika: Monika is a Finnish Multinational Communication in the communication and information technology industry producing and selling the mobile phones and portable IT devices around the world. Monika is a Joint company with the Siemens both of them providing equipment and services for the telecommunications network around the world.
The key products are mentioned below: * Smartness, * Mobile computers, * Networks, * Mobile gaming devices, * Mini laptops, * Internet tablets (Monika Booklet 36) (Monika Corporation, 2009) etc. Monika was the largest vendor of the mobile phones around the world from 1998 to 2012 (BBC, 2012) but over the past few years the company is suffering for the advancement of the competitors. How still the company has a good amount of the market share around the world for the durable and cheap hand sets for the lower and middle class peoples. phone: phone is the smartened devise which is marketed by the Apple Inc.
After the munching of the first generation phone the company gained a huge amount of the market share for the exceptional operating services around the world. (Honda, Mathew, 2007). Since 2007 the Apple Inc released more five devices with more facilities in the mobile phone and got a positive image among the customers. There were 0. 27 million customers in Q 2007 and by increased the amount comes in the 37. 40 million in the Q 2013 (Appendix 1). However, the phones are normally more expensive and the lower and middle class people can’t buy easily.
On the other hand, for the technological and competitors advancement, the market of the phone is educing day after day. Moreover, the phone has a greater advantage because the existing phones can adopt the newer versions software from the new and updated phones as a result customers are become happy to stay with the service of the phones in the market because they don’t need to buy newer versions. Motorola: Motorola is the American multinational telecommunication company (Ante, Spencer E, 2011) divided into two independent public limited companies in 2011.
The company give importance on the cellular telephones with different smartness quality as well in the market. The company was the very successful in the mid-2000 UT lost a significant market share in the last decade. Now, the company is trying to recover the old market sharing marketing the smartness using the Google’s open- source Android mobile operating systems (Motorola, 2013). The company has a wide range of the key products in the market that effect on the business of the Samsung Telecommunications.
The main products are given below: * Tablet computers, * Smart phones, * Mobile phones, * Networking systems, * Mobile telephones infrastructure, etc. BlackBerry: From the released year 1999 the BlackBerry is has been acquiring a great amount of he market share worldwide. In 2011, BlackBerry got 3% of the market around the world for the mobile device sales and acquire the 25% market of the smartness (Garner, 2011). However if we see the number of the users from the 2003 to 2012 we will find that the BlackBerry is increasing day after day. (Appendix 2) 2. 2. Competitive edges: the Samsung has been successful in representing the high quality and excellence goodwill in the customers around the world delivering the premium phones at a reasonable price for the all classes. According to the present continuation of the Samsung Telecommunication, the company is also flexible to adjust with the change that makes the strong position of the company in the competitive market. It allows the company to make strong position in the general and Smart phones products by the own distribution channel in every country of the world. 3.
Recommendations: Based on the findings from the different reliable websites, Journal, books, and articles, it is appeared that the Samsung telecommunications has a good reputation among the customers around the world. For example, the 10 million advance orders for the GALAXY SO has shown the strong market share in 145 countries. There are different types of the mobiles in the Samsung around the world but still all the customers are not able to buy the companies high quality products in the offered prices. The company may produce some phones with smart phone facilities in a fair price.
This trend will boost the market in everywhere of the world. Moreover the competitors advancements and efforts the market is become more sophisticated that’s why the company can take effective promotion programs to reach the phones near to the end customers. 3. 1 STEP Analysis: STEP stands for the segmentation, targeting, and positioning. All these makes the here stages which allow to: * Identify the customers, * Choose which mobile has great popularity among all the phones, * Implement the optimization of the segment of the products of the Samsung and communicate with the customers to make more effective products (phones) Figure: STEP 3. . 1 Segmentation: Segmentation is the process of the identification of the present demand of the customers. Segmentation finds what the customers’ demand is. For example, there are some customers who don’t like the smart phones because they don’t need that for their uses while other customers are very interested to have the smart phones for he multi uses. Now a phone can’t be suitable for the all classes of the customers. In case of the Samsung Telecommunications the company can be more profitable focusing on the choice of the most customers to meet their demand with the phones consistently.
Market segmentation can the divides the market into different groups (segments) in the large market to make together all the customers who have same trend or requirements, interests, and needs. Thus the customers of the Samsung can be divided into three segments which are the demographic, socio-cultural and cryptographic. In the demographic approach of the market segmentation includes the populations. In this process the Samsung can divide the market into groups according to the income level.
All the phones of the Samsung are not very expensive or luxurious because the varieties of the phones will meet the variety of the customers’ expectations and wants or demand by different prices and patterns. Socio-cultural segmentation includes the difference among the customers’ culture and habit. For example, the customers of Britain are not same as like as the Middle especially for the mobile phones for example the most of the people of the Bangladesh (developing country) can’t use the GALAXY SO because of the lack of internet facilities.
The third cryptographic segmentation implies that the mobile phones of the Samsung should be easy to use and portable. Moreover the easy functioning process of the mobile phones makes the customer satisfied to use that smoothly. 2. 1. 2 Target Target market is the specific groups of the customers who will use the products or services of the company. A company like the Samsung Telecommunication can identify and meet the needs of the target market through the market segmentation. There are different levels of the customers in the market.
Samsung can offer phones or the handsets for almost all the segments by understanding the target users’ expectations. Thus the company will be able to market the phones to every customer in different prices in different models. For example, the mobiles which are expensive can be for the rich class of the people. The mobiles in a cheap price can be provided in the market for the lower class of the people. On the other hand the company can also target the average customers who want consistent service and recreation from the mobile phones.
Customers can be targeted in age level as well (Appendix 3) because in the differences of the age level the demand of the customers varies in many ways. Samsung can deliver the phones on the basis of the differences in the age level. 2. 1. 3 Positioning: Positioning supports the companies like the Samsung to create the perception and idea about the products in the minds of the targeted customers 0. In this respect, the Samsung can make the phones for different targeted customers for example; a mobile phone which can be used by the young people may not be popular to older age customers.
The products which are very good and a good brand makes the company enable to make repeat business because the image of the product in the specified customers drive the customer to buy the product again. As a result the company can gain competitive advantage. Figure: Positioning of the products and services. According to the Samsung Annual Report 2011 , the positioning of the Samsung telecommunication is bas on the differentiation of the phones and services of the phones in different prices and levels.
There are many occasions like new-year, Christmas, Valentine ‘s Day etc can be good time to increase the sales volume in the arrest because normally the customers buys more phones on these occasions. So the Samsung can make effective measurements to keep the supply trend in line. 3. Four AS The four AS help the companies to take into the physical barriers that prohibit the company on the widespread adoption of the production. The figure of the four AS has been shown in the appendix 4. 3. 1 Product: Products are the goods or the services of a company that is provided by company to the targeted customers.
In the development of the products (phones) the Samsung must consider the design, quality, features, packaging, customer services and sequence of the after-sales services. In accordance with the changes in the demand or develop the products. The differences, modifications and the developments of the phones will attract the new customers. The existing customers will be more interest to achieve new one and this initiative will increase the sales and profit simultaneously. 3. 2 Price: Price is very crucial and important in the marketing mix because if the price is high the company will lose the customers.
Pricing strategies can be improved through the company’s brand strategies along with the market positioning and different range of he prices in different products. Samsung Telecommunications can make the pricing in considering the level of the income in the different customers and then can provide different products. When the customers will see the reasonable price in the branded product they will buy that with more interest. So the Samsung may give importance on the making of good range of prices. 3. 3 Place: The companies like the Samsung don’t sell the phone directly to the customers.
There are different types of the multi-level distributes in the market they support to reach the products at the hand of the customers. In the stores, the smart spheres of the Samsung should be placed in the prominent space where the entire customer can notice easily that can increase the price. On the other hand, the phones should be marketed in accordance with the differences different areas or places. 3. 4 Promotion: The company like the Samsung must promote the phones from beginning of the phones to be delivered in the market to attract the customers from the competitors.
Good promotional activities can inform the different features of the products and services. As a result the company will be able to gain more customers from the existing and future market. Samsung can use the radio, computers, online process, billboard, conference, TV, seminar etc to promote the phones in different time according to the conveniences. The company may have some slogan to promote the phones in the market. There are some slogans for of the Samsung which are different in different mobile phones models for example, the slogan of the GALAXY SO is “Inspired by Nature” (Samsung, 2011).
All these will help the company to improve the sales and market simultaneously. 4. Conclusion: Based on the report, it is recommended that the Samsung should focus on the racing of the smart phones because if the company can reduce the price the company will be able to gain maximum market share in the telecommunication industry. The Samsung can highlight the innovative features of the phones through the extensive and attractive advertising and branding. Similarly the company may increase the Samsung Mobile Stores to increase the appearance of the brand among the customers in different areas of the world.