• The worldwide smartphone market
grew 25.3% year over year in the
second quarter of 2014 (2014Q2).1
• Total mobile phone shipments in
2013 reached 1.83 billion units
globally, a year-on-year increase of
6 percent from 1.73 billion units in
• Smartphone sales in India have
grown 65% to 23.5 million units in
the third quarter of 2014.3
SOURCE: 1 Smartphone Vendor Market Share, Q2 2014
2 CCS Insight Report: Global Smartphone Market Analysis and Outlook
3 Smartphone sales in India up 65% in Q3: Report
• Growing popularity of large display mobiles.1
• Trend of Android Mobile phones – Android OS Market Share: More
• Rise of Phablets (5.0 – 6.8 inches) – Nokia XL, Samsung Note 4,
Samsung Galaxy S5.3
• Rise of dual Sim phones.4
• Multi core processors- Better speed and Reliability.5
SOURCE: 1,2 & 3 ERICSSON Consumer Lab Report 2014
4,5 KPCB Internet Trends 2014
• Significantly decrease in Mobile prices.1
• Increasing usage of Mobile Internet.2
• Increasing standard of living and buying power of consumers.
• Low cost Smartphones - Micromax, Karbonn, Lava, etc.
• Multiple and Innovative features- Latest OS, high end graphics.
SOURCE: 1,2 IHS QUARTERLY The Future of Smart Phones
• One device for all of your electronic needs.1
• Ease of use and security.2
• Advancement in digital health market.3
• Smartphone manufacturers are diligently trying to find
permanent solution to increase battery life, one of which is
to have the smartphone generate its own power.4
SOURCE: 1,2 IHS WEARABLE
3,4 Ricknas,Mikael ., CITEWORLD
• In 1983, Samsung jumped into mobile phone business.
• Samsung launched its first Samsung Galaxy Phone in June 2009,
and it offered a good number of features as compared to any
• The success is entirely built on Samsung’s Galaxy brand which
has encompassed over 50 separate devices.
• Samsung has largest market share of 24.3% followed by Nokia,
Apple, LG, Sony and HTC which have market shares of 13.6%,
8.4%, 3.7%, 2.1% and 1.3%.1
• In smartphone segment also Samsung is leader having market
share of 30% followed by Apple which has market share of
SOURCE: CCS Insight Report, Global Smartphone Market analysis.
SAMSUNG MARKET SHARE
June 2010 Galaxy S1
May 2011 Galaxy S2
May 2012 Galaxy S3
April 2013 Galaxy S4
April 2014 Galaxy S5
SAMSUNG GALAXY S SERIES
Indian Market Share
• Samsung Electronics has surpassed Nokia in
overall Mobile shipments in India during the
1st quarter of this calendar year.1
• Samsung achieved No. 1 ranking in sales
revenue and market share in mobile phone
SOURCE: 1 IDC Asia Pacific Mobile phone tracker, 2013 Q1.
2 SAMSUNG ELECTRONICS ANNUAL REPORT 2013.
Segmentation refers to a process of bifurcating or dividing a large unit into
various small units which have more or less similar or related characteristics.1
Steps for Market Segmentation
• Identifying product-related need sets.2
• Grouping customers with similar need sets.3
• Describing each group.4
• Selecting an attractive segments to serve.5
SOURCE: 1 MSG Market Segmentation
2,3,4,5 Consumer Behavior, Del l .Hawkins
Major Segmentation – SAMSUNG
Source: European Journal of Business and Management Vol 3, No.9, 2011
• Samsung has adopted a multi-segment target strategy.
• Samsung is targeting and selecting target segments which are more profitably and
able to generate higher sales and profits.
• Samsung targets teenagers or young people with products which are more
• Samsung also using niche marketing strategy because Samsung has recognized a
niche market for flip smart phone.
“But positioning is not what you do to a product. Positioning is what you do
to the mind of the prospect.”1
Samsung came up with AMOLED, which stands for Active Matrix OLED, is a
hybrid display technology that pairs the active matrix backplane from a
traditional TFT display with an OLED display.2
Samsung used Gorilla glass technology developed by Corning Incorporated
in Grand series, S series and Note series.3
SOURCE: 1 Ries Al, Trout Jack (1982) Positioning: The Battle for Your Mind
2 Owano Nancy, Phys.org
3 Corning Gorilla Glass Technical Materials
• Consumer behavior is the study of how
people buy, what they buy, when they buy and
why they buy.1
• It is an attempt to understand human actions
in the buying role.
Source: 1Kotler, P. and Keller, K. (2011) “Marketing Management”(14th edition),
London: Pearson Education
Major set of variables in Samsung
Quality: Samsung has led the industry in quality standards for the semiconductor
industry since 1993 when the company first received top-level (ISO9001) certification of
its plants in Korea. Samsung has satisfied consumer requirements through its broad
range of quality management system achievements like the ISO9000, TL9000 and the
Service: Samsung attentively listens to customers' voice and performs various technical
and quality support like Qualification Support, Quality Improvement, Problem and
Source: 1 http://www.samsung.com/global/business/semiconductor/support/quality-assurance/quality-management/certification
Availability: All Samsung products are easily available globally.
Price: Skimming price – Samsung smart phones are one of the best in the market leader in
terms of the features and USP’s that they provide. The Samsung Note 3 + Gear is another
entrant in the market which has grabbed attention of people. Thus Samsung uses Skimming
price for these products wherein it tries to get a high value in the start before competitors
catch up. Once the model is old Samsung immediately drops the price.1
Social contribution activities: The social contribution activity promoted by Samsung
Electronics is divided into 4 types of social welfare, academic/culture, global interchange
and environment preservation based on the classification standard of Samsung social
Source: 1 http://www.marketing91.com/marketing-mix-of-samsung/
Analyzing the Howard Sheth model keeping Samsung in mind
Brand Image of Samsung
Good brand image strategies can lead to a good brand performance .
Brand image has three components:
The first expansion of brand image of Samsung Electronics Company was started in 1993.
Samsung Electronics Company has driven into a new corporate identity by changing its logo from the
basic black bold type letters of the word Samsung with red star signs at the side into white Samsung
word on a blue color background .
The blue background was designed to be an elliptical shape which gives an impression of
modernization and advance. It is determined to agree that Samsung has succeeded in the
development of its brand logo.
Samsung has clearly proved that it has driven on the right track as the brand is now widely well
known around the world with its reputation of global electronics brand
Source: Rodrigo, Analysis of Samsung’s marketing and brand strategies[ 12 December, 2012]
Its character obviously describes that it is a strong brand approximately innovation, cutting edge
technology and world class design.
To clear its brand image, it reinforces Samsung’s strong connection to the brand community to customer;
besides, it reinforces its brand image of always being in leading position of innovation and design.
Another powerful development of brand image of Samsung was to design an impression of the brand
with global sport events. Samsung became the official sponsor of the wireless technology in the
Olympics when Seoul was hosted in 1998. By representing its brand into sport events, the brand will be
greatly notice by lot of consumers.
Samsung has decided to become an official sponsor for Chelsea football club since 2005/6 season and it
was the second largest sponsorship signed by Samsung since the Olympics Games (Jones, 2005). By
doing this Samsung logo is now appearing on every shirt of Chelsea players and it can be seen as an
impressive way to maintain image of the brand.
Slogan of Samsung:
From 2012 Samsung started its new slogan “ Turn on tomorrow” which adds a all new taste to new brand
Source: Rodrigo, Analysis of Samsung’s marketing and brand strategies[ 12 December, 2012]
For the customer satisfaction, Samsung
attentively listens to customers' voice and
performs various technical and quality
support like Qualification Support, Quality
Improvement, Problem and Requirement
With the new Quality Concept of Back to
Basic in mind, Samsung would do their best
to provide the Highest Quality of Customer
Factors affecting consumer behavior
Source: Mediterranean Journal of Social Sciences; MCSER Publishing, Rome-Italy
Volume 4 No 12, October 2013
Distribution network of Samsung in India
• The national distributor of Samsung in India is Savex Computers
• Savex has been distributing IT and Telecom products for Samsung since
• It has got 41 branches across the country with its headquarter in
• The distribution structure in Samsung is decentralized.4
• They have zonal distributor in each zone of the country and the
dedicated national distributor to organize retail business to drive
SOURCE: 1,2,3 http://www.savex.org/
4,5 ET Samsung Mobile revamps sales and distribution in India
• Samsung now has two sales verticals-one selling products to distributors,
stand-alone multi-brand outlets and Samsung brand stores, and other
focusing only on national and regional retail chains.6
• They have re-organized their business around the sales channel with
dedicated team for channel management and products.7
• At the regional level, there are be two branch heads for the products to grow
the business in multi-brand outlets under the regional manager who reports
to the head of the distributor head.8
• There will also be key account managers at the region and branch level who
will push sales to the national and regional retail chains under the head of the
retail chain management.9
Source: ET Samsung adopts mobile phone business strategy for consumer durables
Samsung vs Apple Advertisement
• Samsung released many ads to mock Apple iPhone 6 Plus during Note
• Samsung also attacked iPhone 5 due to its lack of features as
compared to Galaxy Note III.2
• Apple iPhone 4 was also criticized because of its antenna issues during
Galaxy S release.3
SOURCE: 1,2,3 Kastrenakes, Jacob., A brief history of Samsung mocking Apple announcements
Innovative Global Brand3
Less importance for
Lack of user centred
Source: 1,2,3,4,5,6, SWOT Analysis of SONY Source: IDC, The Wall Street Journal
Samsung vs Sony
• Sony is behind Samsung in terms of both launching phones with
the latest version of Android, and updating them to the next
version as and when it’s launched.1
• Sony’s software has its own upside when compared to the often
criticised, overwhelming Touchwiz deployed by Samsung.2
• If Sony can address the complaints on software updates and
increase the life span of its products, then Sony smartphones can
better compete with Samsung’s army of Galaxies.3
Source: 1,2,3 D, Danny., Round 2014 – Samsung vs. Sony
1.Known for best overlay of Android
OS with HTC interface
2.High product quality
3.Highly popular in the urban market
1.Mostly Touch phones
2.Limited of advertising and
•HTC, tweeted : "Buyer's
remorse: Coming soon to S5
owners. March 25.“
•Competitors of Samsung: Nokia
and HTC mocks Samsung Galaxy
S-5 for it’s resemblance to
previous model S-4.1
SOURCE: 1 NDTV correspondent, Nokia, HTC mock Samsung Galaxy S5
Mobile industry scenario during the launch of Samsung Galaxy S1
1. S1 was launched in June 2010. It was the first Android phone of the S family.1
2. At that time Nokia was the market leader with market share of 34%.2
3. However, the market share reduced from 40% in 2009 to 34% in the next year.3
SOURCE: 1,2,5 ABI research
4 Nokia in 2009
Launch of N95 in 2007, the flagship of Nokia
1. Nokia launched N95 in 2007 which was a major revolution in the mobile industry.1
2. It had various features which were mostly absent in other phones at that time.2
SOURCE: 1,2,3,4 Nokia’s decline in figures –
Symbian OS: One of the most successful failures in Tech history
• It is the oldest smartphone software platform.1
• The topmost operating system till the first quarter of 2010.2
• It is not an OS for internet phones.3
• The browser was a second class citizen. It was from a third party owner
SOURCE: 1,2,3,4 Techcrunch.com
The Critical success factors of S series
Success factors for Galaxy S in 2010: 1 million galaxy smartphone sold in 45 days in US
• In US AT&T and T- mobiles advertise their Galaxy S smartphones for $200
• Galaxy S devices were also available with Sprint, Verizon wireless and US
cellular and cellular South.2
• Samsung Galaxy S was also a sponsor of X Games 16, which was held in
downtown Los Angeles from July 29 to August 1 2010.3
• Samsung adopted Social media campaign including Facebook promotion
and sharing content in Samsung mobile’s social media channels.4
• Samsung in 19 days sold a million of the Android powered galaxy devices
before it came to US market.5
SOURCE: 1,2,3,4,5 Jhonston, Casey; The rise of Samsung’s Galactic Empire.
The Way Forward for Samsung, and Innovation, Harvard Business Review.
• The Galaxy S2 had been the best smartphone in the range of top
smartphones. It had generated 20 million sales in the first 12 months.6
• Another major success factor of Galaxy S series smartphone is its unique
blending of hardware and software features. Whether its an app like S
Health, or a feature like AirView; the features of Galaxy S smartphones are
awesome and easy to use.7
• According to earlier reports in IBTimes UK, Samsung Electronics had
received nine million pre-orders for the Galaxy S3 worldwide.8
SOURCE: 6 Thenewstribe.com
The Globe: The Paradox of Samsung’s Rise, Harvard Business Review.
SWOT ANALYSIS - SAMSUNG
-Strong Brand Value
-Innovation & Design
-High Market Share
-Diversified Product Line
-Less Profit Margin
-Own OS is unpopular
-Obtaining Patents through
-Low cost Chinese products
Source: DATAMONITOR Ref code: 1453
PEST ANALYSIS - SAMSUNG
-Samsung has been
subjected to copyright law
-Recession in America in
-Fluctuating dollar rates
-Trend that Samsung
produces best smart
-One of the most
Source: Team FME Pestle Analysis ISBN 978-1-62620-998-5
1Optimal Marketing, Harvard Business Review.
Threat of New Entrants – LOW
-Technology investments needed – Large Capital
-New entrants could find difficult to compete
and gain economies in market share against
major brand players
Threat of Substitute Products – LOW
-Multiple features in Smartphone – Camera,
Bargaining Power of Buyers – Medium
-Wide variety of choices
-Pricing – Consumer based
Bargaining Power of Suppliers – Medium
-Manufacturers rely on Suppliers for quality
components/ parts at competitive prices
-OS:Android is open source
-Difficult to switch in B2B market
Rivalry Among Existing Firms – HIGH
Many players in Market – Apple, Sony
Competition among players is high – Pricing, Advertising
Firms coming with new technologies, innovations – attracting
Source: Team FME Porter’s Five Forces ISBN 978-1-62620-999-2,
How Samsung Gets Innovations to Market, Harvard Business Review
1. Silva, M. (2013), How Advertisers Can Maximize Mobile Conversions, Harvard Business Review.
2. Thomas, W. & Miller, P. (2014), How Samsung Gets Innovations to Market, Harvard Business
3. Corstjens, M. & Merrihue, J. (2003), Optimal Marketing, Harvard Business Review.
4. Khanna, T. & Song, J. (2011), The Globe: The Paradox of Samsung’s Rise, Harvard Business
5. Vossoughi, S. (2012), The Way Forward for Samsung, and Innovation, Harvard Business Review.
6. HIS Whitepaper (2013), Wearable Technology, IHS Electronics & Media.
7. Meeker, Jacob. (2014), INTERNET TRENDS 2014, CODE CONFERENCE.
8. Ericsson, 10 Hot Consumer Trends, Consumer Labs.
9. Global Smartphone Market analysis (2014), CCS Insight Report.
10. Samsung Electronics Annual Report (2013), Samsung.
11. Technical Materials (2008), Corning Gorilla Glass.
12. Consumer buying decisions models: A descriptive study International Journal of
Innovation and Applied Studies, ISSN 2028-9324, Vol. 6 No. 3 July 2014.
13. Mediterranean Journal of Social Sciences, MCSER Publishing, Italy, Vol. 4 No 12,
October 2013 .
14. Data Monitor(2005), Samsung Electronics Co. Ltd., Ref Code: 1453.
1. Kotler, P. and Keller, K. (2011) “Marketing Management”(14th edition),
London: Pearson Education.
2. Porter, Michael E.(1985), "Competitive Advantage", pp 11-15, New York: The