Contents

Executive summary ......................................................................................................................... 2 1.0 Introduction ............................................................................................................................... 3 1.1 Research Objective ................................................................................................................ 3 1.2 Research Question................................................................................................................. 3 1.3 Literature Review .................................................................................................................. 3 1.3.1 Brand Positioning help Smartphone Company gain the market share .......................... 4 1.3.2 Apple use the brand positioning to gain the market share ............................................ 4 1.3.3 Positioning strategy based on Competitors ................................................................... 5 1.3.4 Samsung uses the brand positioning to overtake the Apple to become the market leaders. .................................................................................................................................... 5 1.3.5 Samsung using the emotional branding to overtake Apple ........................................... 6 Research method & procedure ....................................................................................................... 7 2.0 Theory.................................................................................................................................... 7 2.1 Sampling ................................................................................................................................ 7 2.2 Survey Questions ................................................................................................................... 8 Data Analysis & Finding ................................................................................................................... 9 Recommendation .......................................................................................................................... 19 Conclusion ..................................................................................................................................... 21 Limitation....................................................................................................................................... 21 Bibliography................................................................................................................................... 22

Executive summary

This research is main focusing on what is the current image of the Samsung Galaxy SIII and Apple iPhone 4s in the customers perspective because in the year 2011, Samsung Galaxy SIII is overtake the Apple iPhone in the smartphone market. This issue is shocking the world so this research will test izit the image of Apple iPhone is drop and Samsung Galaxy SIII is getting high. This research will use the online survey method to collect the data. A set of questionnaire will be design based on the similar research report on the image then only will post to the online survey website. The data collected will be analyzed into pie chat with report and finding. After that, few recommendations will give to the company in order to make change on the strategy for the smartphone. Finally the conclusion will be concluding based on the result and a list of limitation will list down.

1.0 Introduction
1.1 Research Objective
The product image is important for all the company to gain the profit and attach customers. In 2011, Samsung is overtaking the Apple iPhone 4s to become the market leader in smartphone market by introduced the Samsung galaxy SIII (Culpan, 2011) with the repositioning strategy on the product image. This research is to find out the current image of Apple iPhone 4s and Samsung galaxy SIII in the customer perspective. It is important to find out what are the current image of Apple iPhone 4s and Samsung Galaxy SIII because before the Samsung Galaxy SIII is introduce, Samsung is consider the follower in smartphone industry due that the Apple iPhone become a trend for the smartphone industry. Almost all the smartphone company is following the design and operating system of Apple iPhone so when the Samsung Galaxy SIII is introduce and overtake the Apple iPhone in market, the customer perspective will also change.

1.2 Research Question

The research Question for this research is: what the current image of Apple iPhone 4s and Samsung Galaxy SIII in customers perspective?

1.3 Literature Review

Smartphone is the trend for the world for the powerful computing abilities similar to personal computer. In 1992, the world 1st smartphone is introduced by IBM with SIMON. Then in 1996, NOKIA expands the smartphone market with the model NOKIA 9000 Communicator which comes with color for the screen. In 2007, the smartphone market

having the glory year by apple introduce the new generation of smartphone, the iPhone with the operating system that making their smartphone which are low in price, faster and more function than old generation of smartphone. The Apple iPhone are becomes a trend for the smartphone market and almost all the phone company is follow the trend (McCarty, 2011). In 2011, smartphones overtake PCs by 488 million smart phones, compared to 415 million client PCs (Alto, 2012)

1.3.1 Brand Positioning help Smartphone Company gain the market share

All marketer will use the marketing strategy on segmentation, targeting, and positioning (STP).A company identify different need in the marketplace, target those and positions its offerings so the target market recognizes the company image. Positioning is the action of designing a company offering and image to occupy distinctive place in the minds of the target market (Kotlet & Keller, 2012).
1.3.2 Apple use the brand positioning to gain the market share

In 2007, smartphone is still not having the big market share in mobile phone market due to the smartphone at that period of time is high price and limited function . Then, Apple do a research on what people want on the phone and there come out the result that customers is expecting the phone that have function of PDA and function like portable minicomputer. In the same year, the world was shock with the new smartphone, iPhone introduced by Apple with the very strong point of different with their competitor. Apple places the iPhone as versatile, convenient, value added devices for personal and

professional use. With only2 years, Apple has gain 18% of the market share which put them in 3rd place among all the smartphone company, then in 2011, even their market share is decrease to 13.8% which put them in second but there have a grow in sales for 250% from 2008 to 2011. The success of the apple is come with their positioning strategy.
1.3.3 Positioning strategy based on Competitors

Apple has made the decision to make their product different from their competitor in 2007. Besides communication, apple iPhone added elements of entertainment to their smartphone, iPhone allow customer to enjoy the music, video, picture and internet access for email and browsing web by using the new technology in their operating system, iOS that allow the third party of company to produce application for the iPhone so that the iPhone users can enjoy more function on the phone. Besides, apple is provide 2.0 megapixel camera that consider high quality among all smartphone at that time and Apple iPhone is successfully overcome the problem of having benefit that make up the POD and POP are negative correlated, Apple sell the iPhone at incredible low price that time will not more than 400$ which make iPhone low in price but high in quality. (kotler & keller, 2012, p. 310) (Maxwell, Lee, Suen, & Hofmann, 2007)

1.3.4 Samsung uses the brand positioning to overtake the Apple to become the market leaders.

After the Apple has bring the new trend to the smartphone market, most of company is trying to make their phone look alike as iPhone so there can having the point of parity and able to catch up the trend, Samsung is one of the companies to do so. At the early

stage of the rise of smartphone market, Samsung decide to use the easy way by cooperation with Google by using the Googles operation system on smartphone, Android to make their Galaxy S series is able to compete with iPhone with the similar on function, application and outlook so that the customer can easy to accept. At 2011, Samsung is overtake the Apple iPhone to become No1 in smartphone market share by introduce the Samsung Galaxy S3 (Android Marks Fourth Anniversary Since Launch with 75.0% Market Share in Third Quarter, According to IDC , 2012) (Culpan, 2011).
1.3.5 Samsung using the emotional branding to overtake Apple

In order to having the Point of different with iPhone, Samsung is making their own competitive advantages on the Galaxy S3 like bigger screen that iPhone that allow Customer having better experience when using their phone. Samsung bigger advantages is there repositioning their product by using the emotional branding. Samsung introduce the Galaxy S3 with the concept of their phone not just only for communication but it can be part of life with the slogan of designed for human and inspired by nature (Samsung Galaxy SIII, 2011). Samsung showing that concept in their ads like the bed time story and propose. (Reilly, 2012)

Research method & procedure

2.0 Theory
This research will find out the product image of the smartphone so the current available and related research report will use as the guide to help complete the question to be ask in survey. There are two research report been choose as the guide for this research (Nebenzahl & Eugene D. Jaffe, 2005) (Koubaa, 2008). The research report is compare between the element of image due that both of the giving almost the same element of image so the same element will be used as the question to be ask in the survey questionnaire.

2.1 Sampling
The research wills use the simple random sampling where each category in the population has an equal chance of being selected on the sample. An online survey was used over a secure Web connection (https://) using SurveyMonkey.coms enterprise service. An e-mail was sent to my friend with a link for invitation to participate in the survey by using the social network- Facebook. A simple random sampling was chosen based on the friend list in my Facebook account. The participant was choosing randomly according alphabet. A total 160 invitation is sending out and only 60 responded until 05 December 2012.

2.2 Survey Questions.

The survey, containing 10 questions, was made available online from 29 November. Questions were explicitly asked about specific questions of the element of the image of product which contain innovative, highly technical, luxurious, looking, quality, proud to show, performance, reliability (Nebenzahl & Eugene D. Jaffe, 2005, p. 13) (Koubaa, 2008, p. 147). Each of these questions used multiple choice where the responder will giving two smartphone as the answer to choose only one of it, the two smartphone is Samsung galaxy SIII and Apple iPhone 4s which is the main focus in this research

Data Analysis & Finding

The Percentage of male and female joining the survey

female 52%

male 48%

1.) What is your gender? In total there are 60 responder which contain female 52 %( 31people) and male 48 %( 29 people). This data show that the female is more willing to take the survey.

The Percentage of age group

25-34 0% 45-54 0% 35-44 7% 55-older 2%

18-24 91%

2.) What is your age? There are 91% of the responder is 18 to 24 year old, 0% for 25-34 year old, 7% 2544 year old, 0% 45-54 year old and 2% 55 year old and older. The responder age is mainly focus in young adult which is 18-24 year old due that when sending the invitation for the survey though social network, most of the invitation is sending to this age group but still there are some responder from 35-44 year old group and 55 and older year old group is respond to this survey due the invitation though the social network group..

The Percentage of smartphone that more innovative

Apple iPhone 4s 37%

Samsung Galaxy SIII 63%

3.) Which smartphone is more innovative? Innovation is the action or process of innovating a new method, idea and product (innovation, 2012). There are total of 59 people answer this question and only one is skipped. There are total 63% of responder choose the Samsung Galaxy SIII as the smartphone which is more innovative and only 37% of responder think that Apple iPhone 4s is more innovative. This date show that there are nearly of the responder choose the Samsung Galaxy SIII is more innovative than Apple iPhone 4s, this data prove that Samsung Galaxy SIII is successfully changing the customers perception on their new series of Smartphone though reposition their product image.

Which smartphone is highly technical?

Apple iPhone 4s 44%

Samsung Galaxy SIII 56%

4.) Which smartphone is highly technical? There are total of 59 people answer this question and only one is skipped. There are 56% of the responder is choosing the Samsung Galaxy SIII as the highly technical smartphone where by 44% of the responder think that Apple iPhone 4s is Highly technical. This data show that Samsung is changing the customers perception on the smartphone technology from follower to the leader in the industry and Apple is losing their advantaged in the image of highly technology after the Samsung reposition their Galaxy S series Smartphone.

Which smartphone is luxurious?

Apple iPhone 4s 54%

Samsung Galaxy SIII 46%

5.) Which smartphone is luxurious? The definition of luxurious in this question is extremely comfortable or elegant of the smartphone (luxurious, 2012). There are total of 59 people answer this question and only one is skipped. There are total 46% of the responder is choosing the Samsung Galaxy SIII is the luxurious smartphone where by 54% of responder is choosing the Apple iPhone 4s is more luxurious. This data show that Samsung Galaxy SIII still do not change the customers perception on the image in luxurious but there are close with Apple iPhone 4s so there maybe can reposition their product in coming year to focus on this issues.

Which smartphone is good looking?

Apple iPhone 4s 44%

Samsung Galaxy SIII 56%

6.) Which smartphone is good looking? The good looking in this question is subject to the design and outlook of the smartphone. There are total of 57 people answer this question and only three is skipped. There are total 56% of the responder think that Samsung Galaxy SIII is better in looking and 44% of the responder think that Apple iPhone is better in looking. From the pass, most of the smartphone is follow the design of the Apple iPhone series so this data show that the Samsung Galaxy SIII successfully create a new image in the smartphone outlook by using the different design with the Apple iPhone.

Which smartphone is having better quality?

Apple iPhone 4s 46%

Samsung Galaxy SIII 54%

7.) Which smartphone is having better quality? The definition of quality in this question is the standard of smartphone as measured against other smartphone of a similar kind and the degree of excellence of smartphone (Quality, 2012). There are total of 59 people answer this question and only one is skipped. There are total 54% of the responder think that Samsung Galaxy SIII is better in quality and 46% of the responder think that Apple iPhone is better in quality. This data show that the Samsung is changing the customer perception on the quality of their smartphone when there repositioning their new series of product which is the Samsung Galaxy SIII.

Which smartphone is proud to show?

Apple iPhone 4s 48%

Samsung Galaxy SIII 52%

8.) Which smartphone is proud to show? The meaning of proud to show in this question is the customer is proud when there showing the smartphone. There are total of 58 people answer this question and only two is skipped. There are total 52% of the responder think that there are proud when there show Samsung Galaxy SIII and 48% of the responder think that there are proud when there show the Apple iPhone. This data showing that the customers are changing the perception to Samsung Smartphone, there are actually proud to have the Samsung Galaxy SIII.

Which smartphone is having better performance?

Apple iPhone 4s 42%

Samsung Galaxy SIII 58%

9.) Which smartphone is having better performance? The definition of quality in this question is the capabilities of a smartphone (performance, 2012). There are total of 59 people answer this question and only one is skipped. There are total 58% of the responder think that Samsung Galaxy SIII is having better performance and 42% of the responder think that Apple iPhone is having better performance. This data show the Samsung successfully changing the customer perception when there repositions their smartphone by giving the better performance on their Samsung Galaxy SIII.

Which smartphone is more reliable?

Apple iPhone 4s 53%

Samsung Galaxy SIII 47%

10.)

Which smartphone is more reliable?

The definition of reliable in this question is the consistently good in quality or performance and able to be trusted the smartphone in when using (reliable, 2012). There are total of 59 people answer this question and only one is skipped. There are total 53% of the responder think that Samsung Galaxy SIII is more reliable and 47% of the responder think that Apple iPhone is more reliable. This data show that Samsung changing the customers perception in the image of reliability.

Recommendation

Based on the result on the survey, Apple iPhone image is lower than the Samsung Galaxy SIII in total. The percentage of people thinks that the outlook, the feeling that prove to show, the innovation, the performance, technic, and quality for Apple iPhone is less than the Samsung Galaxy SIII. The Apple Company can reposition their iPhone by using the point of difference with the competitors. The best way for Apple iPhone look difference with the competitor is change the design of the iPhone due that the customers are getting bored on design of iPhone and that the reason iPhone image is low. Design is the most important element for a product, it will affect how a product look, feel, and function to a customer. Moreover, design can shift consumer perceptions to make product image experiences more rewarding. Consumer will buy the product if the design is pleasant to look at and easy to open, install, use, repair, and dispose of. Besides that, company can easy to manufacture and distribute (Kotler & Keller, Setting Product Startegy, 2012). Apple Company can design the iPhone to bigger and higher definition of touchscreen so that the customer can easily touch and see. Besides, Apple Company can provide more choice of color on iPhone to customer. Besides changing the design of the iPhone, Apple Company can use the emotional branding strategy to reposition the iPhone, Apple have to build on their performance advantages to strike an emotional chord with their customers. Apple Company can link the Apple iPhone with the daily life of the customers in their advertising because the pervious ads of the Apple iPhone are focusing in the new feature of the hone itself only so the Apple Company can try make the changing by adding element of emotion to their advertising. Moreover, Apple Company

can use the brand Narratives and storytelling strategy on the iPhone. Apple can tell the story of iPhone, how the consumer engage with the iPhone over time and touch point where they come into contact, and the role and relationship the iPhone plays in the lives of consumers (Kotler & Keller, crafting the brand positioning, 2012).

Conclusion
In conclusion, Samsung Galaxy SIII is successfully changing the image in customers perspective. In others word, the repositioning strategy used by Samsung is successful changing the image for their Samsung Galaxy series. The apple iPhone need to be repositioning their product in order to getting back the good image in customers perspective. Finally, the strategy of repositioning the product is proving useful and should be used for the others Smartphone Company as well in order to increase the market share and competitive advantages.

Limitation

There are limitations on this research. First, There are 2 responder complain there cannot answer the question on the age due that there are under the age given. Second, the number of responder is not enough to be analyzed. Finally, the questionnaires question is not informative due to the limitation on the number of question given by the online survey website.

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