Assignment on: Principles of Marketing Course Code: (EIB-507) Topic: Marketing Plan For SAMSUNG Smartphone “GALAXY-S”. Prepared for: Md. Kamal Uddin Ph. D (Osaka University) Associate Professor, Dept. of International Business, University of Dhaka Prepared by: Md. Asif Jamal ID: 80903059 Date of submission: 05/08/2010 Executive Summary SAMSUNG is preparing to launch a new multimedia Smartphone- SAMSUNG GALAXY-S in a maturing market. Despite the Smartphone leaders i-Phone, HTC, O-2, NOKIA and others “GALAXY-S” can compete because this product offers a unique combination of features at a value-added price.
SAMSUNG is targeting specific segments in the consumer and the business markets, taking advantage of opportunities indicated by higher demand for easy to use Smartphones with expanded communications, entertainment, softwares and storage facility. The primary marketing objective is to achieve first year BD market share of 5 percent wit unit sales of 5000. The primary financial objectives are to achieve first year sales revenue of BDT. 235 million. Keep first year losses to less than BDT. 40 million and break even early in the second year. Market Description:
SAMSUNG GALAXY-S’s market consists of consumer and business users who prefer to use a single device for communication, Social Networking, Information storage and exchange and entertainment on the go. Specific segments being targeted during the first year includes professionals, corporations, students, entrepreneurs and medical users. Purchases can choose between models based on several different operating systems, including systems from i-Phone, Palm, Microsoft and Symbian plus Linux variations. GALAXY-S licenses G-2 based systems because it less vulnerable to attack by hackers and viruses.
With a mass storage becoming commonplace in the Smartphone market “GALAXY- S” is equipped with ultrafast 32 gigabyte internal hard drive and expandable up to 96 GB for information and entertainment storage. Technology costs are decreasing even as capabilities are increasing which makes value priced models more appealing to consumers and customers with older model Smartphones or PDA’s who want to trade up to newer, high end multifunction units. Marketing Strategy: SAMSUNG’s marketing strategy is based on a positioning of product differentiation.
GALAXY-S is one of the products of the SAMSUNG Smart phones which are to be called “Future beyond Smart phones”. Its primary target is the top class new generation innovators who needs one portable device as a substitute of computer. It helps them to coordinate their busy schedule, communicate with family and colleagues, got driving directions and be entertained on the go. Secondary customer of “GALAXY-S” is college and graduation students who want a multimedia device with a difference. It also includes the facilities to store up to 25000 e-books in its 32GB mass memory.
The segment can be described demographically by age (16-30) and education status. Positioning: Using product differentiation, SAMSUNG is positioning the GALAXY-S as the most versatile, convenient, value added model for personal and professional use. The marketing strategy will focus on the world’s first and only four inch high definition super amoled display, it’s excellent battery life and one of the fastest processor (1GHz humming bird) in the market and last but not the least it’s excellent integrated features. Product strategy:
The “GALAXY-S”, including all the features described in the earlier products review section will be sold with a one year service warranty. SAMSUNG will introduce a more compact powerful high end model (SAMSUNG WAVE) during the following year. Building “GALAXY-S” is an integral part of SAMSUNG’s production strategy. The brand and the logo (SAMSUNG GALAXY-S) will be displayed on the product at power on and also its packaging and reinforced by its prominence in the introductory marketing campaign. Pricing strategy: The “GALAXY-S” will be introduced at the price BDT. 46990 estimated retail price per unit.
SAMSUNG expect to lower the first model price when they expand the product line by launching the “WAVE”. The price reflect a strategy of 1) Attaching desirable channel partners and 2) taking share from i-Phone, HTC, O-2, NOKIA and other established competitors. Distribution Strategy: SAMSUNG channel strategy is to use selective distribution i. e. selected outlets. Marketing GALAXY-S through the well known stores where the expensive phones are usually sold. SAMSUNG is trying to attract the top class customers who usually want everything n a Smartphone with any price.
SAMSUNG will provide demonstration products, detailed specification handouts and full color photos and displays featuring the product. SAMSUNG will also arrange special bonus for the retailers who can sell volume products. Marketing Communication Strategy: By integrating all messages in all media, SAMSUNG will reinforce the brand name and the main points of product differentiation. Research about media consumption, patterns will help the advertising agency to choose appropriate media and timing to reach prospects before and during product introduction.
Therefore advertising will appear on a pulsing basis to maintain brand awareness and communicate various differentiation messages. The agency will also coordinate public relation efforts to build the SAMSUNG “GALAXY-S” brand and support the differentiation message. To attract customer attention and encourage purchasing, SAMSUNG will offer a limited time premium gift. To attract, retain and motivate channel partners for a push strategy, SAMSUNG will use trade sales promotions and person selling. Until the “GALAXY-S” brand has been established the communications will encourage purchase through selected outlets.