Product and Price
Samsung Electronics Corporation Limited (SECL) is a huge company. Most of its products include smartphones, feature phones (at least formerly), lithium ion batteries, memory chips, hard drive devices, printers, tablet computers, televisions, refrigerators, and other consumer electronics and home appliance products. Because of the sheer size of the company and the extent of its operations, it would be easier to describe its products and pricing strategies using the four major industries where it operates in. Those industries would be the consumer electronics, telecommunications equipment, semiconductors, and home appliances industry.
Samsung, across all the industries where it is a participant, essentially targets all of a product’s available price point. Its smartphone division, for example, has an available lineup of products—products that are regularly updated by as frequent as ever year, for the entry level, middle range, and high end price points. This is so unlike the strategy that its rival, Apple Corporation, implements. Apple Corporation, for example, only targets the middle range to high end price points. The same goes for the target market segment. SECL has products lined up for all market segments namely: the entry level market segment, as well as the middle and high end ones.
How the business distributes its products
SECL’s distribution mix is more liberal and free-market oriented than that of its peers. It is easy to see one who does not have a physical store or even a kiosk in a public electronic marketplace who also sells a Samsung Electronics product. This is because the distribution of its products both caters to wholesalers and small-time retailers. This is unlike other companies who only allow authorized resellers to distribute their products to end-users. It is important to note, however, that the company does not cater directly to the end-users. Promotions are also often limited to what the retailer or wholesalers can offer.
Branding and Advertising
Samsung, SECL’s parent company, has its own Corporate Social Responsibility (CSR) division which takes care of all public relations-related initiatives, mostly ones that are related to environment protection and promotion of sustainable business practices . It has an aggressive approach when it comes to sales in that it basically allows anyone who is willing and motivated to sell their products become a reseller. It deals with both wholesalers and small time retailers. This may be interpreted as an attempt to flood the market with their products. In terms of customer relationship management practices, the customer focuses on quality and innovation in areas of product development; it also pays heavily for marketing and advertising in order to attract new customers, retain existing ones, and prevent turnover rates . Compared to its competition, SECL has a sizeable lead in terms of branding because in the first quarter of 2016, its products represent some 24.5% of the entire smartphone market, which are the hottest and still the fastest growing one in the electronics industry.
Competitors
SECL’s main competitor is Apple Corporation, the manufacturer of the iPhone and iPad product series. So far, SECL has already defeated Apple in terms of market share but Apple still reigns in terms of technology and overall product value. Apple is also more conservative in terms of distributing their products; it only allows legitimate distributors to sell their products, something which can theoretically impede the end-users’ access.
Strengths and Weaknesses
SECL’s main strength is its ability to target all price points in a particular industry. This gives it the advantage of being able to flood the market with its products, leading to a situation where it eventually gets the largest share of the market. It also focuses on product quality and innovation, something which the consumers love. Its main weakness is its inability to create new paradigms. So far, the market sees it as second only to companies like Apple Corporation when it comes to innovation.
Marketing Plan
The company’s marketing plan is currently working for them. Its strategy of focusing on all price points has led to a situation where it is currently the leader in terms of market share. However, it should start focusing on introducing innovative technologies on its own and stop copying from previous industry leaders if it is to retain its leading existing position.
References
Samsung. (2016). Corporate Social Responsibility. Retrieved from http://www.samsung.com/us/aboutsamsung/investor_relations/corporate_governance/corporatesocialresponsibility/.
Wambui, E. (2013). Samsung Smartphone strategic marketing: analysis of Samsung Smartphone marketing strategy decisions and the consumer perception to the implemented strategies.
