Strategic Marketing Analysis of Samsung

Executive Summary

In this study, the strategies of marketing implemented by Samsung are discussed to show their effectiveness towards helping in the achievement of the objectives as well as goals of the company. The PESTEL, as well as SWOT analysis of Samsung, is performed to determine the current position of the company in the market based on which SMART objectives are developed which are to be followed in improving the current productivity as well as the customer base of the company. For those seeking guidance, marketing dissertation help can provide valuable insights into this analysis. The 7 P’s of marketing along with the Ansoff matrix is used for determining the way Samsung’s marketing campaign is to be established. In terms of SOSTAC model, the outcomes for Samsung's business with respect to the present marketing strategies are determined along with control measures are mentioned on the basis of the success of the objectives for Samsung.

Introduction

Marketing strategy is referred to the overall plan of the business which is to be followed by the company for accomplishing prospective objectives and reaching determined productivity so that increased customer base can be reached with the successful delivery of services and products regarding the business. An effective marketing strategy assists the company to successfully concentrate on the scarce resources of the company to use them in best possible way to increase productivity and sales of the company (Olson et al. 2018). In this assignment, the PESTEL and SWOT analysis of Samsung is to be performed to determine their current internal as well as external market situation. On the basis of the information, the market objectives for Samsung are to be developed which are to be presented through SMART objectives. The marketing strategies and tactics to be implemented by Samsung to achieve the objectives are to be explained. The SOSTAC model is to be used to mention the marketing action of Samsung and the way the market is to be controlled is also to be discussed.

Situational Analysis

The situational analysis of the company presents the external and internal factors which are influencing the business of the company. In this process, the PESEL and SWOT analysis are to be used to determine the way external as well as internal factors are influencing the business of Samsung.

PESTEL Analysis

In case of Samsung, the PESTEL Analysis is presented to determine the way later market segmentation is to be chosen for the company to ensure its success:

Political: In the UK, as a result of Brexit the smartphone prices are raised that has led less customers to develop the intention to buy smartphones (forbes.com, 2016). This is going to affect Samsung in negative manner by creating less demand for their phones in the market due to the high price as a result of Brexit.

Economical: In South Korea, the corporate tax is raised by 3% (businesskorea.co.kr, 2017). Since Samsung mainly manufactures their phones in South Korea to be distributed all over the world, it is going to affect them to experience $1.19 billion to be paid in taxes extra for their manufacturing lowering their profit amount.

Social: In the UK, the population is found to be growing at a faster rate which is going to assist Samsung to have increased demand of their digital products and smartphones to be used by the UK individuals for communication.

Technological: The use of artificial intelligence is seen to be done by Samsung which has assisted them to improve digital along with communication performances in each of the smartphones. They have developed OLED screen which is allowed to be folded without breakage in their Galaxy X series mobiles (Manorek, 2016). This indicates that Samsung is using the most advanced technologies to ensure better services and products to its customers.

Environmental: It is planned by Samsung that 4.3 million of their Galaxy S7 phones are to be recycled into products to lower electronic trash production and polluting the environment (greenpeace.org, 2017).

Legal: In the UK, the low corporate tax to lowered to 19% from 22% acts in favour for Samsung to spend less amount in managing their taxes to executing business (forbes.com, 2017).

SWOT Analysis

The internal environment of Samsung is to be analysed through the SWOT analysis tool which is presented in tabular form below:

Objectives of Marketing for Samsung

The market planning is developed for the company by focussing on the objectives that are to be followed for determining the strategies in regard to the policies used in Samsung. The marketing plan involves profits, market shares, sales, advertisement, awareness and others required in managing the business. The SMART objectives are required to be developed for identifying the strategies to be used for market segmentation (Chaffey and Ellis-Chadwick, 2019). Thus, the SMART objectives are being developed for Samsung:

Objective 1:

To ensure proper engagement of the customers for effectively selling the products developed by Samsung

Objective 2:

To develop a focus to provide better services to consumers who prefers the S7 series of products of Samsung

Objective 3:

To deliver effective services to consumers to ensure brand equity in the market

Objective 4:

To save Samsung’s profit to invest them for their future marketing of products

Strategy of Marketing

The STP process is followed in developing strategies of marketing by Samsung so that the place, as well as target consumer, can be effectively identified (Wuryandani et al. 2018). This is also able to allow Samsung’s products to be introduced in the market through implementation of Ansoff matrix.

Market Penetration: Samsung has developed segmentation of their competitive market through consideration of the demographic factors.

Product Development: Samsung’s S7 has been launched in the market by following proper demographic segmentation (Haroun, 2016)

Market Development: Samsung is executing market development by targeting the youth with higher income and who have increased desire towards buying smartphones.

Market Diversification: Samsung to ensure proper and successful introduction of their products in the mind of the target consumers are focussing on introduction of diverse specification in less price to compete effectively with their rivals such as Apple and others. Thus, the mentioned strategies are to be effectively followed for developing the consumer base and experience effective market competition with the presentation of diverse business ideas (samsung.com, 2020).

Implementation of Marketing Tactics

Samsung has planned to consider 7 P's of the marketing mix for informing their tactics. This is because 7 P's of marketing mix is going to allow effective determination of strategies to tack proper marketing action (Loo and Leung, 2018).

7 P’s of Marketing

The 7P’s of marketing used by Samsung are mentioned below:

Product: It is required by Samsung to extend their services such as increased warranty period, helpline assistance, after-sales services and others to the consumers who are purchasing the products.

Price: It is required by Samsung to implement discounts along with provide allowance for their products. The prince is required to be attractive that is $99 is to be shown instead of showing $100.

Place: It is required by Samsung to allow online services for buying and purchase of products along with allow friendly interaction (Yun et al. 2018)

Promotion: It is required by Samsung that they use various techniques such as digital advertisement, hoarding, banners, pictures in official websites and others to promote their products.

People: It is required by Samsung to effectively train their existing staffs to be able to deliver quality services and better demonstration of their new products to make consumer influence to buy their products.

Process: It is required by Samsung to develop constant process of innovation and improvement of their products.

Physical: It is required by Samsung to develop more physical stores which are environment-friendly to allow consumer buy from them who supports environment-friendly activities.

Marketing Action

Samsung is required to follow effective policies to ensure the enhancement of their marketing actions that supports their proper business progress. The effective marketing actions are highlighted through the SOSTAC model which is to be followed for achieving the determined objectives (Wijaya and Hermawan, 2018). A Gantt chart is presented to inform the way gradually marketing actions are to be taken by Samsung to introduce their products in the market and fulfil the mentioned objectives.

SOSTAC Model

Situation: A situational analysis is to be executed for determining the market trends which are to be followed to fulfil the desired objectives and goals as well as avoid threats in the marketing of products by Samsung.

Objective: Samsung is required to set proper marketing objectives where the key focus would be to determine the way their products are to be successfully sold in the UK (Chen and Ann, 2017). The company require to determine the promotional strategies to be followed for successfully targeting their consumer base.

Strategy: In the STP process, mentioned strategy is to be followed by Samsung to determine the way products are to be placed in the market to ensure consumers to buy them and the product management is to be ensured by considering the demographic strategies. During market segmentation by Samsung, they are to execute the task by considering the way their key rival that is Apple is following market segments to promote their products.

Tactics: In this phase, Samsung is required to focus on the way they are to develop value for their products to ensure successful gaining of profit (Kim and Chao, 2018)

Actions: Samsung required determining the skills, internal resources along with external agencies to be focussed to develop effective competency in leadership for achieving competitive advantage in the market.

Control: Samsung needs to have proper control and take effective measures with the help of their marketing department to market their products. They are to develop performance report for their sales to be compared with others to determine their success.

Gantt Chart

Marketing Plan Controls

Samsung is required to involve their entire marketing department to measure and control the marketing process of their products. The sales performance reports are to be used by the department to compare with their expected figures of sales to determine their performance and efficiency. The sales quota is to be fixed for the sales team by Samsung to ensure each understands their target to be fulfilled. The team is required to be supervised with the help of territory manager. The following of the process is going to help Samsung to create sales improvement along with successful promotional activities for introduction and marketing of their products. Samsung requires receiving feedback from individuals and consumers regarding their services and products which is to be allowed to be provided in smooth and flexible manner. This is because it would allow the company to determine the changes to be made in their services and products to ensure better performance. Thus, marketing plan control indicates that it allows effective management of marketing strategies and it is to be done by involvement of all departments of the company (Opresnik, 2018).

Conclusion

The discussion informs that PESTEL analysis and SWOT analysis of Samsun is done to determine their external and internal environmental performance. The PESTEL analysis indicates that Samsung has effective technology and acts in environment-friendly way to deliver their services. Moreover, they have high demand in the society but the political factor that is Brexit is creating issue for their business by making them raise the price of their products. the SWT analysis informs that Samsung loyal customer base as strength and lower corporate tax in the UK is making them execute less expenditure for taxes related to business while operating in the UK. The SMART objectives for Samsung are used to inform the marketing objectives they are trying to accomplish for achieving productivity in market. The 7P’s of marketing mix are informed by Samsung to inform the strategies they are following to place their products in the market. The SOSTAC model is used to determine clarified understanding of marketing strategies of Samsung.

References

Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing. Pearson UK.

Chen, C.M. and Ann, B.Y., 2016. Efficiencies vs. importance-performance analysis for the leading smartphone brands of Apple, Samsung and HTC. Total Quality Management & Business Excellence, 27(3-4), pp.227-249.

Haroun, I.M., 2016. Exploring Corporate Strategic Management and Global Expansion on the Case study of Samsung Electronics. Archives of Business Research, 4(1). pp.230-239.

Kim, R.B. and Chao, Y., 2018. The effect of country of origin on consumer-based brand equity (CBBE) of Colombian consumers: An empirical investigation of Samsung vs. Huawei brands. Journal of International Studies, 11(3), pp.70-81.

Loo, P.T. and Leung, R., 2018. A service failure framework of hotels in Taiwan: Adaptation of 7Ps marketing mix elements. Journal of Vacation Marketing, 24(1), pp.79-100.

Manorek, S.L., 2016. The Influence of Brand Image, Advertising, Perceived Price Toward Consumer Purchase Intention (Case Study: Samsung Smartphone). Jurnal Berkala Ilmiah Efisiensi, 16(1). pp.20-34.

Olson, E.M., Slater, S.F., Hult, G.T.M. and Olson, K.M., 2018. The application of human resource management policies within the marketing organization: The impact on business and marketing strategy implementation. Industrial Marketing Management, 69, pp.62-73.

Opresnik, M.O., 2018, July. Effective Social Media Marketing Planning–How to Develop a Digital Marketing Plan. In International Conference on Social Computing and Social Media (pp. 333-341). Springer, Cham.

Wijaya, P.K. and Hermawan, A., 2018. E-Marketing Applications Based On Virtual Reality Using Sostac Planning Method On Sales Property. Tech-E, 1(2), pp.16-25.

Wuryandani, S., Ismoyowati, D. and Nugrahini, A.D., 2018. STP analysis in marketing pigmented rice as functional food. KnE Life Sciences, pp.128-135.

Yun, J.J., Jeon, J., Park, K. and Zhao, X., 2018. Benefits and costs of closed innovation strategy: Analysis of Samsung’s Galaxy Note 7 Explosion and withdrawal scandal. Journal of Open Innovation: Technology, Market, and Complexity, 4(3), p.20.

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