Contemporary Marketing Strategy

Samsung Smartphones Unit UK

Introduction:

The consumer goods industry in its versatility and competence of business is developing
day by day and is reaching the zenith. The competition has increased so much that the rivals are
concentrating all of their efforts and energy on the process of surpassing their opponents through
more innovative strategies of marketing their products. These industries are trying their hard to
develop new methods, applying new theories of marketing and reassessing their current
strategies, in the light of internal and external factors.(Teece, 2010)

Samsung founded in 1938, is now one of the leading Android Smart Phone consumer
brand in the world. Samsung is best known for its internationally recognised brand Galaxy
Smartphones and Tablets. Apart from setbacks from its Galaxy S7 battery burning issues. But
still Samsung, unlike Apple invests heavily on its Promotional Marketing Strategies. (Hitesh
Bhasin, 2017)

Macro and Micro Environmental Factors:

Micro and Macro Environmental Factors includes External and Internal Factors. These
factors are considered as beyond in control of the marketing strategic Units but still are
considered as influential while planning a strategic marketing strategy.(Barrington, 2014)

Micro or Internal Environmental Factors (SWOT Analysis):

Strength:

Samsung smart phone unit in UK is putting is best efforts to keep its strength in making
its marketing strategy more versatile and competitive.

Diverse Range of Products:

The marketing strategist of Samsung UK has realized the need to volatility and diversity
of the product needed by consumers. For Example, Samsung has diverse range depending upon
the economic class of it users. The S class is for high socioeconomic class and J product line is
for mid-entry customers with same experienced and features.(Yeung, 2016)

Placing in Marketing Strategy:

 Strategy means product reaching to its customers. As Samsung UK is working through
proper channels of Marketing by applying the theory of demographic regional marketing, using
Strategy & Segmentation, Targeting and Positioning (STP). They only allow their proper trusted
dealer into an account. These retailers or dealers are bound to include the diverse range of
Samsung products in their list.(Philip T. Kotler, Gary Armstrong, 2014)
Skimming Pricing Tactics:

Samsung UK Marketing unit is really concentrating to compete with their rival brand
IPhone. Because the Smart Phones of Samsung are in competence with Apple’s IPhone. So in a
way Samsung also uses like IPhone its tactics of Skimming price as its strong strategy. Like in
Galaxy S6 and S6 Edge, Samsung claimed it to be the most beautiful Smart Phone ever. But
when some other brand will introduce the products, Samsung will reduce its price to attract
consumers.(WALTER WHITE, 2015)

Samsung Value Chain (Porter’s Five Forces Analysis):

Samsung Value chain is an analysis of its framework for all its business activities
globally.

 Samsung Inbound Logistics: with over 2700 suppliers around the world through
proper channels making it an easier access to their products, these and 2012 and
2013 statistics for progress in sales.(Dudovskiy, 2017b)
 Samsung Operations: Consists of round 38 global operation bases, and in 2105
it were 199 operation hubs, with three divisions.
1. IT & Mobile Communications (IM)
2. Consumer Electronics (CE)
3. Device Solutions (DS)

 Samsung Outbound Logistics: it has enabled Samsung to deliver updates of its

popular products to customers in a timely manner.
  Samsung Marketing & Sales: Think globally and act locally, with aim to effect
customers’ needs at emotional level, through channels.
 Samsung Services: Striving to deliver its services to highest standard, with high
level of customer’s satisfaction.

Weaknesses:

There are number of issues which Samsung Marketing Units have to face these days in a
highly competitive environment.

Diverse Range:

Samsung has yet to face its weakness issues due to its diverse range of product, Unlike
Apple’s IPhone with single model, making it rely confusing for the consumers to select from the
available product range.(Dudovskiy, 2017a)

Uniqueness:

Samsung lack its Uniqueness like its rival Apple for its own operating system (OS).
Similarly Samsung lacks creative packaging style and it usually copies the idea from IPhone.
Samsung also lacks friendly merchandises as Nokia etc. (Sherry, 2017)

Product Failures:

The biggest issue so far Samsung has to face is the problem of its products failing the
expectation of customers regarding its safety and reliability. The recent bursting and overheating
issue of Samsung Galaxy S7’s battery. There are some cases been on the surfaced news in which
there were incidents of Smart Phones catching fires result in burning cars, jeeps or even whole
garages. In this way with the failure of one product, Samsung had to launch S8 to overcome their
failure in S7 and to satisfy their customers “win over some consumers that are still hesitant”.
(Natalie Mortimer, 2017)

Opportunities:

Samsung UK Marketing Business Unit is benefitting from its opportunities for

introducing it’s increased in demand smart wearable product like smarts watches and tablets etc.
(Sebastian Anthony, 2014)
  Samsung also to put its efforts to introduce its products using demographic
theories for regions like Africa, India and other developing countries, where there
is very little or no familiarity with such smart products.
 Samsung has an opportunity to introduce smart-Phone based solution as Samsung
Pay, like Apple Pay.
 An opportunity in developing countries for middle class consumer to increasing
market.

Threats:

 The reputation of Apple’s quality, reliability and creativity is growing which puts
a threat to Samsung.
 The operating system of most of the Galaxy Brands are not very much
competitive with even an average IOS version brands.
 With the emergence of other Chinese product with same specs and quality are
posing some serious threats to its Marketing.

“Q4 2014 was a disastrous quarter for Samsung, with much of the blame laid at the door
of the mobile division. That quarter saw smartphone shipments fall by 8.2 percent, but
the product mix saw a fifty percent decline in the high-end smartphones that typically act
as the profit engines. “(Spence, 2016)
Macro or External Environmental Factors (PESTLE Analysis):

The macro factors consist of all the outside Broader forces or actors. These Includes
Political, Economic, Social, Legal and Ethical.

Political:

The effects of economic interventions by governments and its subsidies and political
legislation on sale and usage. Samsung has seen subjected to notable level of risk in UK. Since it
is not its home country that is why some factors has affected Samsung marketing and
profitability due to EU enlargement, legal factors, creating new laws and focusing on patents,
new taxation policy causing Business constraint and international trade. A country’s political
legislation is a sure way to affect the company’s fundamental scopes like marketing, workforce
etc. (Muralidaran, 2007)

Economic:

According to Pahl and Richter, an economic condition and factors are surly involve in
shaping a firm progress. These economic factors are comprised of the policy of taxation, the
interest rates, the existing growth and economic development, the rate of inflation etc.(Pahl &
Richter, 2009). For a large consumer disposable income, Samsung has also undergone a
favorable economic condition in UK. It is the countries which facilitates companies like
Samsung, which has proved to be beneficial for it, especially for its production of Galaxy S2.

Social Factors:

In the book, Marketing Communications: A Brand Narrative Approach, it is clearly been

described that the ability of a company to think in a global perspective and to act in a local
manner is an effective way for the elimination of social and cultural gap between the company’s
native region and foreign region. (Dahlen, Lange, & Smith, 2010). UK has proved to be
favorable for the immigrants, so the increased in number of immigrants has made it beneficial for
Samsung mobile company’s increased market size and labour provision. Samsung has
incorporate itself in the new market successfully.

Technological Factors:

Technological factors includes the invention of new products. An innovation is online

marketing, like Apple Pay, which Samsung lacks. Similarly like bar code reading and computer
aided design advancements are all technological factors used to cutting down production cost
and for improving technology. Samsung in UK is now internationally recognised for its strong
hold and invention in Smart Phone Technology for its culture of innovativeness.(Ferrell &
Hartline, 2013)

Environmental Factors:

Population in UK are educated and are aware of environment friendly products. This has
increased Samsung focus on the production of Environmental friendly products. Samsung has
implementing its efforts but with the failure in its Galaxy S7 burning and overheating issue has
tainted its brand image, which Samsung has gained with Galaxy S8.
Legal Factors:

These are demographic or regional legal implementations in which premises a company

must have to operate. In UK Samsung’s main concern is to keep on board some of the legal
factors effecting the external operation for Samsung Smart Phone, includes National legislation
related to health and safety issues foe customers, which it has to fulfill.

Evaluation of tools and Techniques:

Samsung has struggled much to catch up in Smart Phone Industry from the past two
slipping years and has come up with S7 and S7 edge by turning its fortune back into business.
(Nisen, 2013). The most effective tools and Techniques where Samsung is best are

 Learning from its Competitors

 Use of Scrap Material for Eco-friendly
 Diverse in Nature
 More Advanced Supply chain and Distribution
  Thinks globally, Acts Locally Policy.

Conclusion:

After the close analysis of the above Macro and Micro environmental analysis it can be
confidently concluded that in UK Samsung has fewer threats to face than its strengthens in the
Smart Phone Market. Samsung in UK Posses enough material and labour resources with
beneficial governmental policies, consumers market etc. To cope up with all these challenges,
Samsung has to carry a lot of research and investment in BOP market. With all these enough
resources Samsung can facilitates itself in Android Smart Phone market. The only threat
Samsung has the slow rate of diffusion of Smart Phones, which can slow its goals attainment
process. As well as Samsung should generate global strategies in formation and local in
execution within the markets of services.
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