A Project Report on

Marketing Strategy of Samsung Mobile

By :Akhilesh Kumar Singh

1st Semester PGDMM
Year : 2015-2016

Table of Content
1. Introduction
1.1 Growth in India's phone market.
1.1.1 Local success
1.1.2 New threat...
1.2 Scope..
2. Literature Review
2.1 Samsung Mission and Vision
2.1.1 What are Samsungs goals in the Smartphone market
and how does it want to achieve them?
2.2 Internal analysis
2.2.1 Overview of Samsung
2.3 Marketing Mix.
2.3.1 Product..
2.3.2 Promotion..
2.3.3 Price
2.3.4 Place
2.4 Worldwide Smartphone Vendor Market Share, 2015 Q2
2.5 Indian Smartphone Market Q2 2015.
2.5.1 Smartphone Vendor Highlights.
3. Marketing Mix of Samsung Galaxy
3.1 Product in the marketing mix of Samsung galaxy..
3.2 Place in the marketing mix of Samsung galaxy..
3.3 Promotions in the marketing mix of Samsung galaxy
3.4 Price in the marketing mix of Samsung galaxy..
4. Analysis Of Samsungs Marketing Strategy
4.1 SWOT Analysis
4.1.1 Strength..
4.1.2 Weaknesses
4.1.3 Opportunities.
4.1.4 Threats..
4.2 How Samsung dislodged Nokia from the top..
4.3 Samsungs Strategy for Mobile market segment
4.4 Samsung focusing on its online sales strategy for the Indian market
4.5 Samsung relying on 'Make for India' Strategy to Counter Global Slump
4.6 Samsung's new smart phones to target mid-segment buyers
5. Conclusion

1. Introduction:
Some years back, the mobile phone industry was led by Nokia and Motorola. They had been in this
position for quite some time. But things drastically changed; the story of Samsung mobile in the
mobile phone industry was one almost low profile company with distinct products and low cost
product portfolio. In less than a decade, they managed to emerge the market leaders in the
Smartphone industry. So how did this happen? In this industry, of fierce competition, the companies
have been forced to come up with very creative technological innovation and winning marketing
strategies. When iPhone was launched by Apple Inc. in 2007, they created the Smartphone market for
the average consumers, before that the product was targeting only business users. From then Apples'
iPhone and Android phones, which are offered by Samsung, HTC and Nokia have tried their best in
competing in this ever changing high-tech market and so far have qualified to be the big players in the
Smartphone industry. In a fast growing industry, time is everything and every company wants to
possess most innovative technology and products before its competitors. Samsung is currently the top
Smartphone manufacturer in Europe. At the end of 2012 Samsung had 32.3% share of the market
according to the figures from Comscore (n.d). Samsung overtook Nokia in April 2012 to claim the top
spot, a position it had maintained for long. Apple came second with 20.5% market share; followed by
Nokia at 16.3% market share (Samsung dominates European Smartphone market, 2013). Being the
top selling Smartphone brand in Europe, Samsung has captured 45% share of the European
Smartphone market according to data from Kantar World panel Comtech (n.d). As the worldwide

Smartphone sales increased by 46.9% in 2012 and accounted for 39.6% of total mobile sales,
according to Gartner research (n.d), Samsung and iPhone dominated the Smartphone market.
Samsung mobile phone led with 98 million units in Q3, commanding 32.5% of the global
Smartphone market (Apple and Samsung lead global Smartphone race, 2012) Samsung Galaxy 9
Smartphone's use Google's operating system Android. They introduced its first Windows phone in
2012. They offer great variety of products that target a wide range of customer segments in the
market. Example is the, Galaxy Music, which are for music lovers. It includes features like easy
access to music and surrounds sound. For the people who value innovative technology, they are
offered Galaxy S3, which has also a mini version for those who find it too big (Samsung, Mobile
devices, 2013). In 2013 word market % share of Samsung was 24.6%. In 2014 and 2015, there is a
fall on sales of Samsung mobiles but it maintained the market leadership by making the largest world
market share of 21.9% and 19.9% respectively. The prices for these Smart phones vary greatly to
meet different consumers needs. Some time back, Samsung was struggling to catch up with big
players like iPhone in the Smartphone market. And now it is the leading company in the market with
the addition of being the largest technology company by revenue. With the introduction of Galaxy S4
Smartphone, they have brought a whole new package of Smartphone with impressive features.
Samsung has always been under accusation of copying iPhone, which got them into trouble by losing
a high-profile case to Apple Inc. for imitating Apples design. This was seen when a nine person Jury
awarded Apple more than $1B, when founded Samsung infringed Apples patent. The Jury found
Samsung to have infringed the Apple Utility, that is Design patents but not for all products. Damages
owed by Samsung were $1.05 billion (Lowensohn, 2012). Luckily for them this legal and marketing
warfare didn't slow its momentum nor dimmed its ambitions. Samsung is focusing in increasing its
annual revenue to about $400 billion in some few years from now, which will see them in same
heights with the likes of Wal-Mart Inc., who are world's largest companies. Samsung still lags behind
Apple even after its success in the perception of most innovative company. The company leaders are

now working towards changing Samsungs culture and strategy to be classified as an innovative
company and change its reputation of being a fast follower.

1.1 Growth in India's phone market

The Indian Smartphone market is heating up as multinational and home grown companies compete to
convert customers away from old-generation feature phones.
Although growth in India's telecoms market is slowing somewhat from the frantic pace of the last few
years, telecom companies continue to add millions of mobile subscribers. With cellular penetration at just
73%, handset makers still have room to attract new customers. Yet consumers' are also upgrading, with a
thriving replacement market aided by dropping prices and cheap financing schemes.
The Smartphone handset segment offers the most potential. According to an August report from
technology researcher IDC India, only 10% of India's mobile population uses Smart phones but this is the
fastest growing segment, accounting for 29% of handset shipments in the quarter ended June 2014, up
from 16% in Q2 2013. According to IDC, during the quarter the overall India mobile handset market
stood at 63.21million units with a 5% quarterly growth, while Smartphone shipments grew 11% quarterly
and 84% year-on-year. UK-based consultancy Canalys says that India is now the world's fastest growing
Smartphone market globally and the third-largest market after China and the United States.
While Smartphone penetration is peaking in markets like these, India still offers enormous potential, with
millions of customers eager to upgrade. The spread of the Internet is also driving Smartphone demand. As
telecom companies use mobile broadband to deliver Internet access to people without computers and push
their 3G and 4G services, analysts expect that Internet access through mobile phones will grow
explosively. According to a July 2014 report by We Are Social, India has only 243m Internet users, a 19%
penetration rate, but three-quarters of these use their mobile phones to go online. Google says it expects
India to be the world's second-largest Internet market by 2017, driven by mobile usage.

IDC forecasts that India's Smartphone market will more than double by 2018, with annual Smartphone
sales growth of around 40% for the next five years. Price will be crucial to this growth: of the 18.42m
Smart phones shipped in Q2 2014, the sub-US$200 category contributed 81%. India is a price-sensitive
market and the biggest opportunity comes from the millions of low-end customers eager to upgrade.
Recognising this, India's home grown handset makers such as Micromax Informatics Ltd, Karbonn, Lava
and Spice Mobiles have dropped prices relentlessly. IDC says local companies are breaching a new entrylevel price point every financial quarter. India's cheapest Smart phones now sell at Rs2000, down from
Rs15,000 two years ago.
This has contributed to the meteoric rise of local companies. Not even on the map five years ago, they
now account for a third of handset sales and dominate the market share rankings. According to IDC, in
Q2 2014, Samsung Electronics Co. led the overall handset market with a 17% market share followed by
Micromax (14%), Nokia (10%), Karbonn (9%) and Lava (8%). IDC says it is noteworthy that Micromax
is growing faster than Samsung and that among the top five vendors, only Micromax and Lava are
growing faster than the market, at 18% and 54% respectively.
1.1.1 Local success
Local handset makers have succeeded through a mix of strategies. They hold costs down by outsourcing
production to China and Taiwan and by using chipsets made by Taiwan's MediaTek, cheaper than those
from industry leader Qualcomm Inc. Firmly targeting the mass market, they offer prices that are over 30%
cheaper than the lowest-priced international brand; Karbonn says it is interested in the base of the
pyramid not the top. Unlike multinational phone makers who concentrate on big cities, they have
penetrated deep into smaller cities and towns, where the big volumes are to be found. By offering featurerich phones at low prices, they have created a new "affordable premium" segment.

Coupled with this mass market approach, however, home grown companies maintain big advertising and
marketing budgets. Micromax spent heavily to build its brand, through advertising and sponsorship of
much-watched cricket events. It has signed on Hollywood star Hugh Jackman as its brand ambassador,
while Lava sponsors English football club Liverpool in India. Karbonn says it spent over 20% of its
revenues on advertising and marketing initially to build its presence. Indian handset companies have also
focused on local customisation, investing in research and development and design centres.
For instance, a phone launched by local Firstouch in May 2014 allows users to translate text between
English and Indian languages, with a keyboard designed for Indian alphabets, useful since only 10% of
the Indian population knows English. Micromax has even established an international presence, in
Bangladesh, Sri Lanka Nepal and in Russia, which it hopes will drive an entry into Eastern Europe; it
now ranks among the top ten global handset players by volume.
1.1.2 New threats
But now, a host of competitors are using those very strategies against them. Popular Asian Smartphone
brands are looking to India. China's Gionee, earlier a supplier to Micromax, has sold more than 3m units
since its Indian debut in March 2013.Taiwanese computer maker Asus entered the Smartphone market in
July 2014 with four Smart phones priced between Rs5,999 and Rs16,999, selling over 100,000 units
since. It now aims to be among India's top five Smartphone players by beginning of 2016. China's Xiaomi
has also sold 100,000 units of its flagship Mi3 device, priced at Rs13,999, since it was launched in July
2014.
At a higher rung, they are joined by international players like Lenovo and LG who are launching phones
at competitive prices. Motorola (now controlled by China's Lenovo) has made a surprise comeback: IDC
reports that in Q2 2014 Motorola became the fifth-largest Smartphone vendor, selling over 1m units just
five months after re-entering the Indian market, overtaking Nokia, Apple, Sony and others.

Taiwan-based high-end handset maker HTC is aiming for a 10% market share by 2015, saying India is
among its top five fastest growing regions. In the six months ended September 2014, it launched five
devices in the low- to mid-range category, its first sub-Rs10,000 handset. HTC is maintaining a modest
portfolio of 10-15 products. Even Apple is aiming for more affordability with trade-in payments,
instalment plans and older models.
But local players intend to push back, relying on their wide distribution network and volume-building
wide product portfolios. Micromax says it will now focus on value rather than price alone, and on Smart
phones priced between Rs10,000 and Rs15,000, as well as the fast-growing tablets segment. It is
exploring alternative revenue streams such as a measured foray into services in the areas of education,
health and security, as well as wearable devices and accessories and will expand its international business.
Local companies are also partnering with international ones. In September, Google, working with
MediaTek and Micromax, Karbonn and Spice, introduced its new Android One Smart phones priced as
low as Rs6,399 to capitalise on the mobile Internet shift. All that feverish activity will benefit both India's
customers and handset makers.

1.2 Scope:
To focus on the marketing strategy implemented by Samsung for its Smartphone products, because the
purpose of marketing is to act in a way that a company delivers products in the market that they
correspond to demand. That it satisfy its customers needs and wants with significant and sustainable
competitive advantage and profit as noted with Samsung. Samsungs success may be affected by factors
outside the scope of marketing strategy. This project will consider only the marketing strategy factors,
affecting Samsungs performance in the European market and global market at large. This paper will
discuss mainly the marketing decisions of the company in the Smartphone market not considering much
the mobile market, as the mobile products is sidelined due to changing customers needs. The project will

concentrate on the consumer perception regarding Samsung marketing strategy to structure the conclusion
of the studies.

2. Literature Review:
2.1 Samsung Mission and Vision
2.1.1 What are Samsungs goals in the Smartphone market, and how does it want to achieve
them?
In order to understand what Samsung wants to achieve in the Smartphone market and how, It will be
examined the companys mission and vision statements. This process is essential in understanding the
underlying drivers for Samsungs strategy decisions in the Smartphone market. The mission statement
is the starting point for the strategies and plans. (Drucker, 1973) He continues by saying the strategy
formulation requires answer to question What our business is and what it should be. And the
answer should be found in the mission statement (Drucker, 1973, 57)
A company needs to answer five questions to define its mission statement (Drucker, 1973). A
company must know what kind of business they have and who their customers are and what their
customers value, as well as what and how the business should be. By answering these questions, the
choice of strategy will be determined so that it leads to accomplish the goals set in the mission
statement. In their book , Successful Marketing Strategies for High-tech firms Viardot (2004) stated
that, a mission statement is different kinds of statements of the dominant justification of an
organization. The mission is defined by the skills, market segments and the added value. E.g. what is

the business? Who are the customers? And what can the business do for the customer? These
statements are usually completed with an articulation of the companys vision or strategic intent,
which express the aspiration of the company for a significant period of time. They continue by urging
that successful companies know their mission in continuously changing environment, this knowledge
will add them the discipline and efficiency to focus their efforts on the primary task of correctly
serving their customers (Viardot, 2004).Samsung mission and vision is studied this part of thesis in
order to understand how Samsung is planning to achieve its goal in the Smartphone market, and know
who are its customers and where it wants to be in the Smartphone market.

Inspire the World, Create the

Future

Figure 1 Samsung three key strengths & Core Networks. (Samsung, 2013)
Inspire the world, create the future, Is Samsung mission statement in its vision 2020. With this new
vision, Samsung commitment is to inspire its communities by taking advantage of its key strength,

creative solutions, innovative products and new technology, as they continue to promote its new
values for Samsung core networks. This includes industry, partners and employees. Samsung hopes to
contribute a better world and rich experience for all, using this efforts. Also as part of its vision,
Samsung has a plan to reach $400 billion in revenue and be classified as worlds top five brands by
2020. So far, in its management, Samsung have established 3 strategic approaches that include
creativity, partnership and talent. Samsung dedication is to be a creative leader in new markets and
wants to become a No.1 business going forward (Samsung, 2013).

Figure 2.Vision 2020 (Samsung)

Samsungs mission seems focused in building its brand and becoming a creative leader in new
markets. It looks like Samsung is set to change its reputation of being fast followers, a company that
succeeds through watching others pioneer new technologies and markets and then rush in behind.
This was seen when Samsung lost a high profile case to iPhone after being accused of the companys
phones were iPhones rip-offs that violated a number of patents. In spite of its success, Samsung still
lags behind Apple in terms of which is the most innovative company. In its mission to capture the title
of being creative leader in the Smartphone market, Samsung leaders believe they must fundamentally
transform the companys culture and strategies. By doing R&D, Samsung will be able to control its
destiny. For them to get the kind of growth they have in their mission, they have to make the
transition from being innovation follower to innovation leaders said by OBrien.

2.2 Internal analysis

2.2.1 Overview of Samsung
Samsung was founded in 1938 by Lee-Byung-Chull and was originally called Samsung Sanhoe. It started
as a small export business within Korea that produced food and sugar. It later joined electronic industry
late 1960s. It went through a pioneer digital age from 2000-2010. This digital age was the time of
revolutionary change. Samsung responded well to this need in technology with competitive products and
constant innovation by releasing products like PDA phone, LCD TV, First Solar powered mobile phones
and created world's thinnest TV at 6.5 mm. They currently specialize in digital appliances, media, phones,
semiconductors etc.

2.3 Marketing Mix

In order to find out which strategy Samsung used to achieve its leading position in the Smartphone
market, It is required to look at its marketing mix. The marketing mix points out the strategic choices of
the company. Marketing mix is referred to blend of product, pricing, promotion distribution strategies
made to produce a mutual satisfying exchange with the target market (Hutchison, 2009). The marketing
mix is a synonym of 4ps, which is made of the four relevant components of all product strategy. These are
Product, Promotion, Price and Place. They hold the opportunity for the company to differentiate (Borden,
1964). The four Ps of product, price, promotion and place constitute the offer that an organization offers
to the business. If this offers suits well the consumers needs, it should lead to sales. In addition, if its
sufficiently managed, these sales should add profit to the business. (McDonald, 2013) suppliers need to
understand the attributes and benefits the buyers value so that they customize each P to their needs, and
the mix of the elements that will be appealing to the buyers (Young, 2011).
2.3.1 Product
These are the goods and services that a company offers to the target market. Product is the main thing that
the marketing energy must focus. (Borden, 1964) Hutchison (2009) defined products as goods or services

designed to satisfy the customers need. He continued by stating that the product in marketing refers to all
activities relating to the product development, keeping in mind that there is a market for the product, it
has to be appealing; it differentiates from other products existing in the market, and it can be produced at
an affordable competitive price.
Samsungs Smart phones evolve beyond its limitation in slim phones to embody the perfect combination
of comfort, simplicity and sophistication. All their unique customized Smart phones come with
outstanding features. Products vary greatly in Samsungs phone department. They have a number of
Galaxy Smart phones, Galaxy S4 being their fourth generation. Samsung galaxy Series are Android
based. These series are recognized as follows:S (Super Smart/ Flagship) they are for flagship purposes such as their current fourth generation galaxy
S4.
R (Royal / Refined/ Premium) these models combine power, performance and productivity.
W(Wonder/High Tier). This is for people who seek balance between style and performance.
Y (Young). This is for the young audience who are sensitive to price.
2.3.2 Promotion
These are all types of communications a marketer may use to give information to different people about
the product (Borden 1964). All the promotion activities are designed to communicate with the market and
thus promote the sale of the products. Promotion provides information that will assist customers in
making a decision to purchase a product. This includes: advertising, Public relations, personal selling and
sales promotion. These are important tools that support positioning within the various markets a company
wishes to address (McDonald, 2013). It is also seen as informing, motivating the customers and
reminding the consumers to purchase the product (Hutchison, 2009). Samsung uses different promotional
tools across different media platforms to promote its Smart phones. They use the television, print
advertising, internet social media and outdoor media.
2.3.3 Price

This is the amount for what the product is to be paid. (Borden, 1964). Hutchison (2009) referred price as
what customers will exchange for product. Among the four components, price is determined as an
important variable since it is one of the key determinants of a product value. Price is thus one of the
evaluative criteria used by consumers, as are the cost incurred in buying and owning or using the product
(McDonald, 2013). He also noted that the price is very difficult aspect of the marketing mix to manage.
McDonald (2013) urges that to maintain the integrity of prices; the company should implement a sound
pricing strategy; this will support the companys overall marketing strategy and profitability. After
manufacturing innovative and cost effective phones worldwide for a long time, Samsung has been able to
learn what is required to stay on top of its industry. It has not allowed Apple Inc. to grow in markets like
Asia and developing countries like India due to its price policy. This is the results of manufacturing wide
range of products with different price range.
2.3.4 Place
Also known as distribution. This is to how the product finally reaches the consumer (Borden, 1964). The
distribution channels. Providing of products at a place where is convenient for customers to access. This
is how to deliver and distribute the product to the customer (Hutchison, 2009) From a consumer

point of view, the channel through which they purchase products provide the most direct
relationship with the supplier (McDonald, 2013). So the development of a strategy for the
channel is important for the relationship an organization has with its customer. Many distribution
systems are made up of channel intermediaries such as wholesalers and retailers (Hutchison,
2009) According to McDonald (2013) a supplier must decide where to focus marketing efforts.
That is, on a push approach, whereby attention is concentrated on the intermediary, to sell in
more products or on a pull approach where the supplier emphasizes the creation of demand so
that intermediaries are encouraged to deal in that product. (McDonald, 2013).A marketer can use;
intensive distribution, selective distribution, exclusive distribution and franchising to
complement the other aspects of the marketing mix. Samsung uses variety of distribution

channels. They distribute to various telecommunication companies like mobile phone retailers,
Internet partners such as Amazon and other carriers. They also have Pop-up Samsung retail
stores.

3.1 Worldwide Smartphone Vendor Market Share, 2015 Q2

The worldwide Smartphone market grew 13.0% year over year in 2015 Q2, with 341.5 million shipments,
according to data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone
Tracker. This growth is primarily due to gains experienced in emerging markets such as APEJ and MEA.
This quarter's shipments were slightly lower than forecast and IDC expects to see a noticeable slowdown
in Smartphone shipments in 2015 as China joins North America and Western Europe in a more mature
growth pattern. Android dominated the market with an 82.8% share in 2015 Q2. Samsung reasserted its
global leadership with a renewed focus on lower-cost Smart phones.

Samsung retained its #1 leadership in the worldwide Smartphone market with a 21.4% share in
2015Q2. This retention of position comes in the midst of a growth decline of 11.5% QoQ. This is
largely attributed to the underwhelming performance of its newest flagship releases, the Galaxy S6
and the Galaxy S6 Edge. Despite this, it was able to retain the number one position due to increased
shipments of lower-end models, particularly to regions like Southeast Asia, the Middle East, and
Africa. Samsung's improved streamlined portfolio of devices, including the premium inspired Aseries, proved successful in many mid-tier markets that were typically dominated by local brands.
Though Samsung's redefined flagship (the Galaxy S6 and S6 Edge) began shipments on a strong
note, it failed to keep up the momentum.
Apple continued to find success with its larger screened iPhone 6 Plus. It shipped a total of 47.5
million units, which is a 22.3% decline from 2015Q1. Much of this came out of Greater China as
rapid 4G adoption, Apple retail expansion, and an increased appetite for premium devices elevated
the brand to new levels. Overall, iPhones grew 35.0% year over year and a remarkable 51.4% in
emerging markets alone. With Apple on the brink of its next device update, IDC expects strong sales
to continue for the rest of 2015.
Huawei raised itself to the number three spot this quarter from its fourth position in 2015Q1. There
was a continued push on premium devices from its Ascend Mate 7, P-Series, and Honor portfolio.
The shipments of mid-range and high-end phones accounted for 35.5% of its Smartphone shipments

in 2015 Q2. Huawei's Y-series sold briskly both inside and outside China, as a valuable low-cost
option in many markets. What remains to be seen is how Huawei will leverage its online vs offline
strategy, focus on revenue, and efforts on innovation to battle in this arena.
Xiaomi ousted LG to gain a spot in the top five categories. Key to its success was the launch of the
Redmi 2A model in China, as well as the continued performance of the Redmi 2 and MI-4 models.
This growth is remarkable considering that it has made its presence felt only in Asia Pacific, and
primarily in China. With Xiaomi's recent entry into Brazil and announcement to launch in Africa in
September, its future growth may become dependent on markets outside Asia Pacific. It will also
showcase if Xiaomi's direct selling strategy will prove successful in these newer markets.
Lenovo fell by two places this quarter, which resulted in a 4.7% share of the market. The Motorola
brand shipped 5.9 million units, 36.2% of the Lenovo group. The second quarter after Motorola
announced its return to China; it shipped 26K units in comparison to the 92K units in 2015Q1. Even
though Lenovo had strategically positioned both its brands and coinciding models in order to
maximize brand awareness and global reach in 2015Q1, stiff competition from Huawei and Xiaomi
has brought ample cause to re-look at its strategy.

3.2 Indian Smartphone Market Q2 2015

According to the International Data Corporation (IDC) Asia/Pacific Quarterly Mobile Phone Tracker,
26.5 million Smart phones were shipped to India in the second quarter of 2015 (2Q15), up 44% from
18.4 million units for the same period last year. This strong second quarter performance saw
Smartphone shipments grow by 19% following a sluggish first quarter this 2015.
However, this growth was specific to smart phones as the overall Indian mobile phone market shrunk
by -6% in the second quarter of 2015 on a year-on-year (YOY) basis. Vendors only shipped 59.4
million units in 2Q15 compared to 63.2 million units shipped in the second quarter of 2014.

The growth in the Smartphone market was helped by vendors using online retail, or eTail, to
penetrate the market. According to Kiran Kumar, Research Manager with IDC's India Mobile Phone
team, "eTailers have opened additional avenues for growth for many vendors in India, who would
have otherwise struggled to get a hold in the complex distribution network." Although India remains
a retail dominated market, vendors such as Lenovo and Xiaomi have used etailing channels in India
to rapidly expand their presence. "The share of Smartphone shipments through eTailers increased for
most of the key vendors in Q2," added Kumar.
In addition, Chinese vendors have tripled their shipments YoY in India and doubled quarter-onquarter (QoQ). Lenovo, Xiaomi, Huawei and Gionee alone accounted for 12% of the total
Smartphone market in the second quarter, double from a year ago. "As China started to slow down,
most vendors from the country have targeted India as the next big growth market for Smart phones,"
said Kiranjeet Kaur, Research Manager with IDC's Asia/Pacific Mobile Phone team.
The new entrants to the Indian market have utilized specific strategies to drive sales growth,
according to Kiranjeet Kaur. "Key to the success of the Chinese vendors has been popular flash sales
through online players such as Flipkart, Snapdeal, and Amazon. At the same time, they have also
focused on bringing more 4G phones at affordable US$100-150 price points, which is a segment left
unattended by Indian and global vendors." Except for Lenovo, the top vendors in the second quarter
still had a majority of their shipments going through traditional channels.
2.5.1 Smartphone Vendor Highlights:
Samsung remained the leader in the Indian Smartphone market despite experiencing a QoQ
shipment decline while growing shipments on a YoY basis. The resultant volume growth YoY came
from their phones in the affordable segment, such as the relatively new Galaxy J1, and older models

such as the Galaxy Core. Performance was not boosted by the first full quarter of sales for the new
Galaxy S6 and S6 edge.
Miramax made a comeback in 2Q15 with 60% QoQ growth. Even though its Android One phones
and the Yu Yureka phones got off to a slow start, its other Smart phones in the US$50-150 price
segment, where it is traditionally strong, performed well.
Intex captured the number 3 position launching a slew of new models. It remains strong in subUS$100 segment, which contributes to at least four-fifths of its overall volume. Also, it forayed into
the 4G space with Aqua 4G Plus with a small initial volume.
Lava continues to feature in the top 5 of the India Smartphone business. Their recent investments on
local manufacturing and their plans for the future make them a serious player in India.
Lenovo, as a group, is the only China-based OEM in the top five list in India. It captured 6% of the
market as its Lenovo and Motorola brands continued to record strong shipments through its online
channel partners. The entry level 4G Smart phones, A6000 and A7000, initially exclusively available
through eTailers, helped lift Lenovo in to the top vendor league in India.

IDC expects India to maintain a double-digit growth rate in the Smartphone market over the next few
years as people switch to Smart phones and gradually upgrade to 4G smart phones as well. By 2017,
we expect India to overtake the United States as the second largest Smartphone market globally.

3. Marketing Mix of Samsung Galaxy:

Despite the competition from similar companies, Samsung in India is growing manifold. Samsung is a
brand very common among the youth. Both, creative products and excellent service delivery provide a
very personalised customer service. It presently has a strong hold on the market owing to its trusted
performance in the last decade.
The reason for the Samsung brand to shoot up in brand equity is the Samsung galaxy series
and Android phones. Samsung Galaxy is a series of Android powered Smartphone designed,
manufactured and marketed by Samsung Company. The Galaxy series are high-end Smartphone series
that include the likes of Galaxy Note Series, Galaxy Tab Series and Phablets, which come with added

functionality of a stylus. Samsung has developed a very effective marketing strategy for its Samsung
Galaxy Series in order to compete effectively in the market.

3.1 Product in the marketing mix of Samsung galaxy

Samsung has a wide range of products from Televisions to washing machines and laptops. However, in
the present market scenario, a major part is dominated by the Smartphone and in that, the Samsung
Galaxy series. Samsung has launched a number of Samsung Galaxy Series smart phones and tablets,
which have been well received in the market. In fact, it can be described as among the best quality
manufacturers of tablets and high-end Smartphone. By the end of 2014, Samsung had sold over 600
million cellular devices and also remains as the largest manufacturer of Android driven devices covering
36% of the market.
Samsung galaxy products include
i) Galaxy Note series
ii) Galaxy Y series
iii) Galaxy S series
iv) Galaxy Tab series
v) Galaxy Grand series
To be on the top Samsung comes with a new model almost every month or even less. Samsung GALAXY
S5, the latest offering helps to optimize work efficiency and security and ensures business continuity.
Samsung GALAXY Note 3 and Samsung GALAXY Note 10.1 (2014) edition provides all the capability
one needs to complete business tasks while exhibiting professional style. Samsung GALAXY Note-PRO
lets business professionals view and manage tasks with ease.

3.2 Place in the marketing mix of Samsung galaxy:

Place not only means location and distribution schemes but rather includes the entire management process
until reaching the products to the consumer. Samsung products are available in the market via varied
channels working on the concept of channel marketing with the segments- Sales and service dealers,
Modern retail and Distributors. Samsung retailers sell products through chains of supermarkets clearly
concentrating on the demand and opportunities to expand their in-store share.
i) Sales and service dealers are involved in corporate sales and they can also open their own exclusive
Samsung showrooms.
ii) Modern retail comprises of retailers like Viveks, Vijay sales, Hypercity and Croma. These retailers
prefer to keep Samsung as an alternative owing to its brand name and quality products.
iii) Samsung has a unique distribution scheme with a single distributor in a city who further caters to all
the retailers of the area like in Mumbai Samsung has the SSK distributors as the sole distributor for all its
products.
Samsung uses channel marketing in its industry. And from this strategy, only service dealers are taken into
account for corporate sales. Furthermore, retailers who present the technology chain are bound to include
Samsung in their list, because of the firm being a world-famous brand and Samsung can also serve as an
alternative for the consumers.
Moreover, the distribution is a compelling part of the Samsung marketing strategy. In certain cities,
Samsung has a contract with a single distribution company that distributes the product throughout the
city. For instance, Mumbai is a great example of a city, where Samsung distributes its product through a
single company. These reasons may vary, but some of them might be like less concentration required for

monitoring distribution channels or paying less to distribution companies because while placing a large
order, discounts are always present.

3.3 Promotions in the marketing mix of Samsung galaxy:

For Samsung, the new product launches and schemes keep being updated in the local media. Newspapers
and the electronic media help in promoting new launches as well as in informing the consumers about
Samsung products and its goals. Samsung being a global giant in consumer electronics is well aware of
the fact that Promotion is the strongest pillar behind the marketing mix strategies. Hoardings and posters
are put up in the major cities. Celebrities are invited for the launch of a new product. In addition, to help
promote the global appeal of the brand, often-famed celebrities like Amir Khan and Priyanka Chopra are
made its brand ambassador. It is usually Samsungs strategy to use almost 5% of revenue generated from
sales in promotion. Public relations, putting out new releases, writing articles for trade publications etc.
are usually the part of promotional schemes. For the official launch of Samsungs latest Wave and Galaxy
S, Amir Khan was present in Mumbai.
Samsung promotes its products through media, as for example through TV, internet ads and radio
promotions. In the picture below, you have the winners of different electrical appliances that this
company raffled in a radio contest in India. Samsung also uses direct advertising through media. For
example, here we have the last advertisement campaign which uses as promoters the image of football
players such as Messi, Rooney and Ronaldo in its S5 campaign. This enterprise also uses interactive
promotions such as web banners. Here we have an example.

Another Samsung also uses other promotion tools seen in class such as events, personal sales, publicitypublic relations, Google Awards, social networks it also uses different kinds of sales promotions. For
example, we were surprised when we read a piece of news of 2012 that explained that Samsung paid 50
of oil in a gas station in Madrid to those customers who owned their last mobile phone launched to the
market: Samsung SII. Here we have the report by the economist with the following headline:Samsung la
la en una gasolinera de Madrid: regala carburante y provoca un caos de trfico
We have also found an example by Samsung in which it directly does not use any of the promotion tools
seen in class. This is the case of All eyes on the S4 where the enterprise organizes a game in the main
station of Zurich awarding a Samsung Galaxy S4 to the first person that is able to look at the mobile
phone for an hour, despite the placement of thousands of distractions.

This implies that Samsung adapts the language and the content of its webpage to each of the countries
where it is established. In each of the countries, it will also have to consider the legal system regarding
promotion, what kind of publicity competition carries out, etc.

3.4 Price in the marketing mix of Samsung galaxy:

Since Samsung has a wide range of products, it has various pricing methods. Price of a commodity says a
lot about the product. Innovative products, which are exclusive to a place, are generally marked up to
meet the demand curve and use skimming price. For instance, during the launch of Galaxy Note 3
witnessed a huge demand in the market. In such cases, Samsung adopts the skimming price technique,
whereby they get a high value for a commodity before the competition sets in the market. Once the
product becomes old or faces a clash by other such products, Samsung reduces its price.
In certain cases, Samsung also adopts competitive pricing schemes to out beat the competitors in the
market. Nevertheless, one thing that is worth noting is that Samsung doesnt have the reputation of
entering late in the market. So it means that it doesnt have to produce products at a lower price in order
to catch up. Instead, other companies have to price their products lower in order to compete with
Samsung.
Samsung marketing strategy involves two pricing strategies and lets sees for what goals are they used.

Skimming Price Smartphones of Samsung are leading the market with Apples iPhone. As
Apple, Samsung also uses skimming price to gain the upper hand over their competitors. For
instance, Galaxy S6 and S6 Edge are the brands new products of Samsung carrying the slogan
Next is Now and claiming that they are the most beautiful smartphones ever created. Without a
doubt, S6 Edge (64 GB) that costs 1 180$ will brilliantly/smoothly sell around the globe. But, what
will happen when other competitors will launch a smartphone with identical features? Simple.
Samsung will lower the price and easily steal customers from the competitor.

Competitive Pricing One of my favorite parts of Samsung marketing strategy. Due to the fact,
that unlike smart phones, Samsung has difficulties in gaining an edge over its competitors with
other products. Surely, Samsung is an authentic brand, but in terms of home appliance, it cant
possibly surpass LG. Furthermore, in Cameras Cannon and Nikon are leading the market. So, for
Samsung to withstand this fierce competition, its vital to use competitive pricing. Also, Samsung
never is a late comer in production and non-innovative, but they are mostly the first ones to
introduce a change.

4. Analysis Of Samsungs Marketing Strategy:

4.1 SWOT Analysis

This method is the best in exploring the strengths, weakness, opportunities and threats for Samsung.
SWOT analysis will help in understanding whether Samsung has built its strategy using its strength and
protects itself from the threats in the market, and whether it has worked to offset its weaknesses.
SWOT analysis is a way to monitor company's internal and external environment, the overall evaluation
of the strength, weaknesses, opportunities and threats, (Kotler and Keller 2009, 101) When a company
consider its strengths, and build its strategy and utilizing them this will create a competitive advantage for
them. Weaknesses and threats are the factors that can affect the company in a negative way. By being
aware of these, Samsung can develop a strategy that will offset its weaknesses and protect them from
threats. Opportunities are used for the company to develop and grow in the market.

4.1.1 Strength
Samsung is focused on producing devices that can be connected with most of the software android, OS.
This gives them an edge over Apples devices. Galaxy S4 is the biggest strength for Samsungs
Smartphone products. Its superior technology allows Galaxy S4 to better meet the customers needs in a
way the competitors cannot imitate.
Samsung is the current market leader in the Smartphone, category accounting 21.2 % of the entire market
share. It has sold a lot of phones globally compared to its closest competitor, Apple Inc. The Galaxy S
series are the main reason for gaining a large market share over a 6 years time.
It can be argued that innovation cant be classified as one of Samsungs strength. But if we take a look at
its S4 flagship, this product stands out currently in the market and listed as one of the best Smart phones
in the market, with its many innovative features that most of its big rivals lack, like feature-rich camera,
useful preloaded apps, gesture support, fast quad-core performance, removable battery and micro SD
card. Although Apples new flagship, iPhone 5S are known for its high innovation, Samsung currently
stands out with its S4 flagship in terms of innovation. This is seen in the quality of the products.

Comparing the two smart phones iPhone and Galaxy S4, in terms of design and build, S4 stands out with
its large screen compared to iPhone which is small. S4 screen is big in resolution and pixel density than
iPhone 5S that give it high display. The camera on S4 is up to date the best seen on any smart phone in the
current market giving it an advantage over its competitors. This statement can be supported by the
responses collected in the survey, where one of the users mentioned Samsung smart phone's cameras are
great with good quality of pictures and fast. The software, on the other hand, always brings huge
differences. Even though Apple has a strong App store, its iOS has different lack of customizability which
is Androids major strong point. This can be backed up with the responses collected from the survey where
the respondents listed the availability of the android application in Samsung smart phones as easy to use
and are offered free of charge. Innovation does stands as Samsung strength under this term. Samsung has
production facilities in low cost countries, which allows them to produce their products in low production
cost. This benefits them as they can offer a lower price and still earn higher margins.

Samsung is the worlds most successful electronics manufacturer. It is the worlds largest
manufacturer of television sets, liquid crystal display (LCD) panels, mobile phones and smart
phones.

Samsung is the worlds number one marketer of mobile phones with 21.4% of the worlds largest
market share in the second quarter of 2015. Apple is number two with 13.9%.

Samsung has impressive research and design capabilities. It was able to create and roll
out Samsung Pay, a payment app with similar capabilities to Apple Pay, in less than a year. Samsung
has been able to replicate many of the capabilities of both Apple Inc.s phones and Google Inc.s
Android operating system for mobile devices.

Samsung has strong manufacturing and marketing capabilities.

Samsung has long-standing relationships with retailers in the United States and Europe that
provide a steady sales channel for its

4.1.2 Weaknesses

There are few differences between Samsung products and its competitors. Samsung offers many smart
phones, including Galaxy S line. These smart phones have been criticized for being evolutionary as
opposed to revolutionary and contain many features that are used by many companies.
Samsung has been caught in cases of infringing Apples and some other firms patent, thus destroying its
reputation and made to pay handsomely for the damage.
The fact that Samsung is selling millions of mobile phones is a great achievement; however, the major
issues are that Samsung is not making a good margin on those sales. The production of their products is
highly fragmented as well, where they have made many different types of handsets accommodate
different prices points. This might create mixed messages to investors who may find that stream lined
products offering would better in the long term. Samsung will be disadvantaged over its rivals if they lack
strong software and OS. Software and OS production have high profit margin, can increase integration of
the company products.

Samsung has not been able to match Apple Inc.s marketing capabilities for smart phones. Its
share of the U.S. smart phone market fell by 2.3% between 2014 and 2015. In contrast, Apples
share price grew by 34.9%.

Some Chinese competitors are catching up to Samsung in the smart phone market. Between 2014
and 2015 Huaweis share grew by 48.1%, and Xiaomis share grew by 29.4%.

Samsung is heavily dependent upon consumer electronics sales in markets with limited potential
for growth, such as the United States and Europe, for much of its revenue.

Samsungs devices use the Google Android open source operating system. Many consumers seem
to view Android as an inferior product to Apples iOS. The public has not been as accepting of
Android as the tech community has.

Some consumers view Apple products as more advanced and dependable than Samsung products.

Samsungs marketing efforts are not as sophisticated as Apples.

4.1.3 Opportunities

Samsungs wide range of smart phones can attract different markets. Due to its Smartphone consistent
quality, features and performance, many critics consider Samsung the leading Android manufacturer.
Most carriers use these features to advertise for the phone and push sales. Samsung is a leader in different
forms of technology which can utilize the innovation of new smart phones, such as using high definition
technology from their television and incorporate that into the screens.
One of Samsung innovation was the Galaxy Note. The first of Phablet (Phone/Tablet) One of its kind. It is
currently the only hybrid in the market and is rated well even on its phone capability. Samsung having a
wide range of phones that can cater for a large market, and with the strategic tie ups with Google will help
them rule electronic market.
Growing mobile advertising industry. Samsung can develop advertising platform for its mobile devices
and greatly benefit from this lucrative market. The release of Galaxy S4 created new markets which
allowed Samsung to improve their business and diversify their portfolio. Being the only main
manufacturers of applicators processors for smart phones and tablets, gives them a competitive advantage
over their competitors. The increasing demands for smart phones require best quality application
processors that can only be provided by Samsung. Great portfolio patent is another Samsungs
competitive advantage. They can only be found by engaging in expensive R&D or through acquisition of
other firms.

Growing market for smart phones, tablets and other mobile devices, especially in developing
regions such as Africa and India, where consumers are unfamiliar with PCs. Sales of tablets finally
overtook sales of traditional personal computers in 2015.

Increased demand for tablet and smart phone-based solutions such as Samsung Pay

New technologies such as wearable tech

Growing middle class in developing world will increase market for consumer electronics.

Growing online market from sales channels such as Amazon.com

4.1.4 Threats

Apple is seen as the biggest Samsung threat especially in the launch of its new device the budget iPhone
5C. The idea that a budget iPhone would allow Apple to sell in emerging markets such as India would cut
market shares for Samsung. Availability of substitute products affects Samsung Galaxy ability to raise
prices; this might cause customers to switch to other products.
The significant problem by Samsung and other technology companies is the rapid change in technology.
Companies are under high pressure to release new products faster and better than their competitors. This
is always hard when a company wants to introduce something new, innovative and successful. Having
very low gross margin in most of their products, and already selling some of the products with significant
price cuts, Samsungs, competitor can follow price cutting approach to and induce price wars.

Apple has emerged as the dominant smart phone and tablet brand in some
markets, such as the United States. Samsung has not been able to overcome
Apples reputation for reliability.

Apples reputation for quality, reliability and sophistication seems to be growing.

The Google Android operating system, which Galaxy devices depend upon, is not as popular with
average people as iOS is.

Declining or stagnating middle-class incomes in North America and the United States could
reduce consumer buying power in those key markets for Samsung.

Chinese manufacturers such as Huawei and Xiaomi could emerge as serious rivals to Samsung.
These companies share of the critical mobile device market is growing while Samsungs is falling.

Apple could enter more consumer products areas such as home appliances and cameras and
directly compete with Samsung in those markets.

4.2 How Samsung dislodged Nokia from the top:

A day before Microsoft's $7.2-billion buyout of Nokia's mobile device business, the Finnish mobi
manufacturer's India outpost was to host a press conference in the capital to announce the launch of a
slew of products targeting the mass market. The event was re-scheduled-ostensibly due to indisposition of
the chief guest, Telecom Minister Kapil Sibal. However, the overnight announcement in Seattle has

changed the picture. From now shadow of the new owner will loom large on any move that Nokia makes.
Wary competitors included.

The deal will have the biggest resonance for the market leader in India, Samsung, which occupies the No.
1 position both in terms of revenue generated and units sold. According to a Voice & Data survey of
mobile handset players released last month, Samsung generated sales worth Rs 11,328 crore in 2012-13, a
jump of 43 per cent from the previous year. Its market share for the year was pegged at 31.5 per cent as
against Nokia's 27.2 per cent. While Nokia's sales were lagging Samsung's at Rs 9,780 crore, the Korean
company may now have to step up its vigil to guard its market share in the country in the light of the new
development.

Nokia has been in India for around 18 years, for most of these it was the unquestionable leader of the
handset market. In fact, it gave millions of Indians their first feel of a mobile phone. At its peak-which
lasted until the mid-2000s-the Finnish company had 60-65 per cent market share. The dream run came to
an end in the second half of that decade as Android-operated phones took the industry by storm. A few
strategic missteps by Nokia only hastened that slide-making Samsung's growth in market share
sweepstakes easier.

Analysts say what worked for Samsung was its different-strokes-for-different-folks strategy. Even as it
went about building a channel distribution network on the ground, Samsung hit the market with a wide
portfolio of handsets at varying price points, leaving no consumer segment untapped. While highlighting
the ease of user interface of its handsets through marketing promotions, frequent product upgrades kept
its portfolio fresh. This helped to keep up consumer interest in its products. Samsung began sprucing up
its product portfolio every quarter at a time when the industry norm was to come out with a new product
line every six to eight months.

Wide array
"At any given point in time, we have 30-40 models available in the market," says Vineet Taneja, country
head (mobile & digital imaging), Samsung India. For instance, in the smart phone segment, there are 1516 models in the price range straddling Rs 5,200 to Rs 40,000. Samsung executives say the competitive
edge in this journey has been its research & development, the steady stream of innovation pipeline and
manufacturing prowess. "This was combined with our ability to gather customer feedback and speed-tomarket. This helped us address a larger customer base," says Taneja. Samsung backed its faster churn rate
with strong branding and promotion activity, both at the consumer level and at the channel partner level.
According to industry estimates, Samsung outspends its rivals by two times when it comes to advertising
and marketing.

Analysts and industry players say Samsung's strategy of "throw everything at the wall, something will
stick" worked to break Nokia's stranglehold in the Indian market. Samsung also made the most of the
dual-SIM and the smart phone wave; Nokia caught on to the trend much later. By the time Nokia tied up
with Microsoft to promote smart phones under the Windows operating system, Samsung had already
obtained a sizeable lead in the market.

Clearly, the winds were blowing in smart phones' favour. In August this year, an international press
release by research firm Gartner had two interesting highlights. For the first time, global mobile smart
phone sales in April-June quarter of 2013 surpassed ordinary phone sales. Two, Microsoft Windows
became the third largest mobile operating system, overtaking BlackBerry. The writing on the wall was
clear for both Microsoft and Nokia: smart phones-run on whichever operating system -were going to
drive the mobile handset business in the future. A few weeks later, Microsoft announced the muchanticipated buyout of Nokia's mobile business. For Nokia, which is fighting a losing battle to hold on to
its market share in India, the deal offers a now-or-never chance. For Microsoft, it's an assault on the
increasing stranglehold of Android operating system on the Smartphone ecosystem. The suddenness of

the move has taken some industry players and analysts by surprise. "We were expecting it but not so
soon," concedes a senior executive from a rival firm.

Analysts, however, do not see any immediate threat to Samsung's leadership position in India. According
to Shiv Putcha, principal analyst (consumer services), Ovum, a research consultancy, there is no threat to
Samsung's lead in the Indian market for at least two years. "By that time the full impact of the MicrosoftNokia deal will play out in the market. We will also know whether any of the local Indian handset brands
has the appetite to overtake Samsung in India," says Putcha.

Local challenge
In the last four years, a bunch of fleet-footed Indian handset players have cropped up riding on the
Android wave, taking a few leafs from Samsung's aggressive market play in the country. Already,
Micromax is within striking distance of Samsung in the smartphone segment with 22 per cent of the
market in Q2 of 2013. Samsung had 26 per cent share in the same quarter, while another Indian player,
Karbonn, had 13 per cent share.

According to Lloyd Mathias, director, GreenBean Ventures, and former chief marketing officer, Tata
Docomo and Motorola India, the biggest challenge to Samsung in the smartphone segment would come
not from Nokia but from the clutch of Indian brands which collectively occupy 45-50 per cent of the
market. These domestic players have displayed the same speed and agility as Samsung when it comes to
being price- and feature- aggressive. These players are pushing down the average selling price of
handsets, putting pressure on the margins of multinational players.

Market players point out that price-conscious first-time consumers are changing handsets every 12-14
months. "They prefer feature-rich smart phones and are not so brand conscious," says Manasi Yadav ,

senior market analyst (mobile phones and tablets), IDC India. The growth in the phablet segment-smart
phones with large screen size (5 inch to 7 inch)- has largely been driven by local Indian players.

The handset market in India is also set to enter a new phase where partnerships between mobile operators
and manufacturers become the norm. "Mobile service providers are increasingly looking at locking in
high average revenue per user post-paid customers with attractive 3G plans bundled in with brandconscious users," says Llyod. This could prove to be the game changer for many handset players.
In that sense, the mobile phone market is poised for a lot of action in the coming months. Multinationals
like Apple, Lenovo and Sony too are getting into contention, targeting the high-end, high-margin
smartphone sales. As the market gets crowded, Anshul Gupta, principal research analyst at Gartner, says
Samsung may need to cut down on the clutter in its portfolio. "It needs to focus on fewer segments and
models rather than fight rivals in each segment" says Gupta.
Sudhin Mathur, director (smart phones), Lenovo India, says: "Days of one brand dominating the market
are over." The strategy that will work going forward for each player is to protect the market segment one
is strong in, attack the market where there are growth opportunities. "India is not a homogeneous market,
and

every player needs to decide its battle field," said Mathur.

4.3 Samsungs Strategy for Mobile market segment:

No wonder Samsung is undisputed king in mobile market other than Apple. Their strategy is quite simple
and energetic. Their Market strategies varies according to the regions. Samsung regularly introduces new
models in all segments in every 4 to 6 months.
Samsung was the first to introduce mini, mega and zoom concept in mobile Market, Now its been
followed by all other companies. They created the benchmark by introducing Samsung Galaxy S series
for Power users and for all in one entertainment, Galaxy Youth/Star for young generations, Galaxy Note
series for Professionals, Galaxy Zoom for Photo enthusiasts and Galaxy Grand for budget friendly buyers.
Samsung never disappoints their customers and followers. Samsung always tries to lure customers with
lots of gimmick, To lure Indian users they brought keyboard in 9 Indian languages. Other features like
Split Window, Eye Scrolling, Reading mode, Chat On, Story Album, Music player with plenty of
equalizer settings gives lots of options for different types of users. Recently they have launched Milk
Music service which is a perfect competitor for iTunes Radio & Spotify. As of now it is only available for
US customers only.
Samsung Hub which is like Google play, offers a wide range of apps especially for Galaxy owners,
Samsung also offers apps in regional language which is attract more customers. Samsung Group Play app
which allows you to share your content exclusively between the Samsung phones via WiFi is also a handy
feature.
Samsung surprised everyone by jumping into smart-watch market and by launching Galaxy Gear which
restrictively works with high-end Galaxy smart phones. They have even launched second iteration of
Gear within span of 6 months. They have recently launched Gear 2 and Gear 2 neo series.
They also compete with Qualcomm, Mediatek, STM with their Exynos SoC. They offer high end galaxy
smart phones with both Snapdragon SoC and Exynos SoC, which is released according to the regions.

Taking on display side Sasmung introduced AMOLED technology and now they have moved to Super
AMOLED concept in their latest flagship models. Samsung offers budget friendly phones and premium
phones also with a hefty price tag. Their R&D dept is super fast in adapting in technology and new
features. With their recently launched Galaxy S5 they have introduced fingerprint sensor and waterproof
body which was adapted from iPhone 5S and Sony Xperia Z resp.
So overall Samsung follows great marketing strategy which is benefiting Samsung, which is why
Samsung dominates mobile market segment.

4.4 Samsung focusing on its online sales strategy for the Indian market:
Samsung has been facing fierce competition in the Indian smart phone segment from the likes of Xiaomi,
Motorola, OnePlus, and ASUS, and some Indian brands, which are focussing on online sales. Now,
Samsung has revealed that the company is focussing on and fine tuning its online sales strategy in the
country. The company is also focussing on sales from the rural market, which has contributed
significantly to sales.
According to sources within the company, the South Korean smart phone giant is looking to tap into the
booming e-commerce market in India, and the company has even a separate team at its headquarters to
plan online sales strategy. The company had to face revolt from offline retailers after online retailers
started providing huge discounts and price cuts on Samsung devices.
When asked about the companys plan to tap into the e-commerce segment, Rushi Suri, Samsung India
Director-Product Marketing Consumer Electronics, said, For us the consumer is the key. Where the
consumer would want us, we would be there and would be offering right kind of products at right price.
In case of (consumer) electronics, the clear understanding with the management is where the consumer
would want us, we would be there.

In terms of Samsungs strategy to drive overall sales, it is focussing on Made for India products that
have the right set of features for the right prices. The company recently announced the Galaxy J series of
smart phones, which have good value-for-money factor along with features such as 4G LTE and Ultra
Data Saving mode that Indian consumers are demanding these days. However, the companys official
declined to comment on the percentage of sales that the company is attracting from the online channels.

4.5 Samsung relying on 'Make for India' Strategy to Counter Global Slump:
One source familiar with Samsung said the group, one of the biggest players in the Indian consumer
electronics market, would invest up to $1 billion in manufacturing units and in research and development,
adapting products to local taste and needs. While Samsung does not give a figure for its investments or
revenue targets from India, senior officials say it plans to invest heavily in manufacturing and research. It
already uses a 10,000-strong development team to tailor everything from fridges to air conditioning units
for Indian consumers.

"While Prime Minister Narendra Modi is talking about 'Make in India', we are saying 'Make for India',"
said Ranjivjit Singh, chief marketing officer for Samsung in India.
"It's not just about manufacturing that we've been doing anyway. But we are making products designed
for India, and this doesn't happen by luck."
Singh said Samsung was also considering adding a new manufacturing unit. It already has three research
centres and two factories.
"A lot of states have been approaching us for a new factory, but it is premature to talk about investments,"
he told Reuters.
Samsung is under intense pressure as rivals Apple and China's Xiaomi threaten its position as global
leader in smart phones, key to its bottom line.
In India, Samsung is seeing strong competition from local company Micromax, which has moved beyond
phones into categories like affordable televisions and tablets.

Xiaomi, which launched in the Indian market in July last year has also said it would invest and begin
local production in India soon.
Samsung has been in India for two decades and of the handsets it sells locally, 90 percent are made at two
manufacturing units in the country. They could also manufacture high end Galaxy S6 phones locally for
export, officials said.

4.6 Samsung's new smart phones to target mid-segment buyers:

Kick-starting the New Year in style, Samsung Electronics has launched four new smart phones in the
Indian market. Targeting the mid-segment buyers in the Rs 15,000 to Rs 30,000 range, the new smart
phones offer a mix of style, design and a host of features desired by the Indian consumers for long,
Samsung officials said citing an internal survey.
According to Mohammad Asim Warsi, vice president IT & Mobile marketing, Samsung Electronics,
"Premium build with full metal unibody design, enhanced social media experience, slim design, superior
hardware and software are key attributes of the new smart phones that will hit the market in the coming
weeks."
The Indian mobile phone industry, according to industry estimates, has been growing at higher double
digits of around 30%. While the level of competition is high, with Indian and international brands vying
for an increased share of the pie, Samsung officials said, the company has grown upwards of 30% and
continues to enjoy a leadership position in the market.
The new smart phones being launched are under the Galaxy A (3 & 5) and E (5 & 7) series of which the
ones in A series are also the slimmest units offered by Samsung yet. In fact, the E series phones have been
launched for the first time in India and will be introduced in the other markets eventually.

The Galaxy A3 priced at Rs 20,500 will start retailing this weekend while A5 costing Rs 25,500 will be
made available next week from January 15. The E5 (Rs 19,300) and E7 (Rs 23,000) smart phones are set
to hit the stores post January 20, 2014.
"The mid-segment is not only witnessing high growth but is also valued significantly by the consumers.
We are envisaging further acceleration in terms of growth in the current year as the new launches will
expand and help gain trade share in India," said Warsi.
While not sharing specifics about the company's promotional strategy for the new smart phones, Warsi
said, the company will adopt a 360 degree approach to promote the new handsets. While television
campaigns and digital mediums will be key focus areas, the company remained tight-lipped on budgetary
allocation for advertising and promotional activities for the next 12 months.

5. Conclusion:
For the conclusion of this research, Samsung is already seen as the current leader in the smart phone
market. This was due to its innovative products such as its flagship Galaxy S4 and Note II, which was
launched with a massive marketing spend of more than $4 billion USD in 2012. This is four times Apples
budget. As it focuses on being an aspirational brand to its target market of young consumers, they are
seeking for this generation Y, marketing using very high-profile partnerships with celebrities like Giorgio
Armani and LeBron James. Samsung is actually having great response from this target market as noted
earlier in the response of the data analysis, the highest number of respondents owning Samsung smart
phones are between the ages of 26 years to 40 years who are known to be the generation Y. The Galaxy
S4 is marketed as a life companion; that includes features like navigating without touching the screen
and the built in health monitoring. Samsung is literally evolving its brand, to not just innovate but by
making it live up to its mission on enhancing lives of its consumers.

To finish up with the strategy analysis section, it can be concluded that the marketing strategy choices
Samsung makes affects its positive outcome in the smart phone market. Samsungs marketing mix, the
company has chosen to use well the differentiation strategy targeting a broad market segment. The
product as a component mix is differentiated well as it offers different innovative features and design
quality compared to its competitors. Due to large no. Of application on android, Samsung customers feel
that they are offered innovative solutions. The S4 device being their flagship smart phone possesses very
innovative technology that cannot be found in their rivals Apples iPhone 5. The price is quite high that
differentiate it from the rest of other smart phone products and positioning it in the high end costly smart
phone like iPhone. They also have a cheaper version to cater for middle class consumers. According to
the analysis and considering the marketing situation this strategy choice of Samsung indeed boost its
positive performance in the smart phone market Samsung use of segmentation strategy by targeting
different market segments is working well for them too. They have positioned their products well, and
they have let their customers know they are offering something for everyone. Samsung has mastered the
idea of creating products that are suitable for their chosen market segments, and positioning itself clearly
so that customers are aware they recognize their needs. We can see this by how they advertise their
products effectively in the market, by clearly communicating how ordinary people can take advantage of
the technology they are offering. Most smart phone companies do not communicate the benefits clearly
and in a way an ordinary person can understand. Samsung communication strategy in its promotion
component of marketing mix shows exactly who they are targeting and what they are offering to the
targeted market.
Samsungs customers are enjoying the touch screen experience with its smart phone's product lines. Fact
that is also seen on the respondents opinions as they stated their gratitude towards the size of screens and
usability of the product. The slogan Designed for Humans seems to have been received well by the
people. The products are quite well known for their economical pricing. This strategy of launching the
product with reasonable price range and powerful new innovative product and aggressive promotional
strategy is generating a lot buzz and success around Samsung Galaxy series.

So, is Samsung on its way to be a market leader in creativity?

It can be said that Samsung is moving to the right direction. Samsung gained points for the availability of
applications and easy user interface. The Android OS is also seen as a positive, innovative advantage
among the respondents in Samsung products The S4, which is the current Samsung flagship, has really
shown how Samsung is working towards achieving their goal for being creative leaders in this high
competitive market. Galaxy S4 has more power and cutting edge features such as the face/eye tracking

and gesture-based controls that Apple flagship iPhone 5 current lack. The resolution of the 0.31 inch-thin
Galaxy S4 is higher than iPhone 5, and there is more screen real estate on the S4 display compared to the
4inch one in iPhone.
If we compare Samsungs S4 and Apples new iPhone 5c which both are plastic made, something rather
surprising for Apple to make a plastic smartphone from its usual more sophisticated glass and aluminum
phones we can find both smartphones comes in different colors though 5c has many brighter colors that
definitely stand out compared to the darker toned hues that are available with Galaxy S4. Plastic isnt the
most premium material used by smartphones nowadays, but between this two the 5C closed design
evokes the sturdier construction while the S4 has seams and hollowness attached to it. At the end of the
day, the two looks equally appealing to the eyes of the beholder. However, if it werent for the bright color
options with the 5C, it would have come nothing more than bland in this comparison. Taking a look at
their pricing, iPhone 5C come cheaper than Galaxy S4 with around $100 difference with a contract, it
seems as if iPhone wants to beat Samsung in their own game of differentiation strategy using price
component of its marketing mix by introducing a cheaper version of iPhone in the market. But in the end
the galaxy S4 gives a superior overall performance compared to iPhone 5C in terms of performance and
software features. S4 offers a wide range of features in its operating system such as Smart Scroll and
the Air View, just to mention a few of the features. These are amazing features that the iPhone 5C
currently lack. With the Galaxy S4 outstanding performance, it seems Samsung is in its way to achieve its
mission of becoming leaders in innovation.
Also, by opening up a new innovation center in Menlo Park, California, planned research and
development lab in San Jose and one of its most daring undertaking, the creation of a massive new
semiconductor campus with distinctive design, Samsung is seemed determined to compete with Apple in
becoming a creative leader in the smart phone market. This move in expanding its work in Silicon Valley,
its a sign of increase in its rivalry with Apple, since they are both competing more directly for the same
employees, investments and innovation. Samsung runs a marketing innovation Fund to foster a creative
culture in the business that is designed to reward internal creativity in marketing ideas and executions.

This program enables Samsung to put together information and ideas from Samsung subsidiaries that are
aimed to change its brand knowledge. These products demonstrate how Samsung is looking holistically at
industry best practices to inform its marketing execution. They also encourage new ideas on its enterprise,
products and solutions as they listen to and award employees with creative and innovative thinking. To
add on that they also have open innovation center and product innovation team that promotes innovation
within the business. All these sums up the reasons that Samsung is surely on its way to be leaders in
creativity

6. References:
1. Eadicicco L. 2013, Samsung Galaxy S4 review (T-Mobile)
Review.http://www.laptopmag.com/reviews/smartphones/samsung-galaxy-s4-t-mobile.aspx.
2. Neil H. Borden, 1964. The Concept of the Marketing Mix, Journal of Advertising Research.
3. Samsung embarking on an aggressive expansion in Silicon
Valley.http://articles.latimes.com/2013/feb/18/business/la-fi-samsung-silicon-valley-20130218
4.
5.
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http://www.idc.com/getdoc.jsp?containerId=prSG25827215
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apple-india-offline-retailers
8. http://www.business-standard.com/article/companies/how-samsung-dislodged-nokia-from-thetop-113090600009_1.html
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10. http://www.dnaindia.com/money/report-samsung-s-new-smartphones-to-target-mid-segmentbuyers-2050360