Mobile phone, which is defined as a high technology electronic product, is popular all over the world. Bangladesh must be one of the biggest markets for those mobile phone manufacturers.
As a leader in mobile telecommunications market, Samsung has its scientific business strategy that leads to success, and pays a great attention to the market of Bangladesh. Based on the Bangladesh mobile phone market, this paper analyzes Samsung’s business strategy to show reason of Samsung’s success. The business strategy includes the strategic intent, the competitive strategy and marketing mix. The strategic concept of Samsung is to take the demand-side strategy. Samsung subdivides the whole market into several objective markets according to the researches about the partialities of different individuals.
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And then different types of mobile phones are put into the market aimed at attracting different consumer groups. The competitive strategy of Samsung is to improve the innovative ability to win the competitive advantage. Strong technological innovation ability makes Samsung stand in the forward position of mobile industry all the time, and characterized this brand by a special vitality. And the marketing mix of Samsung is to use the integrated marketing strategy including product, price, promotion and place.
It values the construction of a brand, the orientation of its products and pays a lot of attention to technology improvement. It increases the sales through sensitive advertisement, presentation to the celebrities and large-scale entertainment. Current Market Situation Increasingly, we are observing that handsets are following the pattern of typical consumer electronics; the trend is toward phones with improved features at lower prices. Simultaneously, there are more manufacturers who will deliver cheaper handsets to capture the mass market.
Multifunction cell phones, e-mail devices are increasingly popular today. Touch screen phone is very much attractive because it is Very much easy to use and people can browse the website like they browse in a laptop computer. Competition is therefore more intense. So it is easily visible that there will be massive demand for such phones in the future. To gain market share in the dynamic environment, Samsung must carefully target Specific segments with features that deliver benefits valued by each customer group. Market Description Samsung Wave II touch pad phone’s primary target consumers are young people.
It is very much attractive for student because of it’s wide touch screen which could be used as a hand Held palmtop. It supports Wi-Fi technology so people can transfer their documents and other important file through this phone like a workstation. In the prospect of Bangladesh people can easily monitor the Stock market movement through its high-speed Internet technology. Other users are entrepreneurs and professionals. It is very much cheap in compare with an apple I-phone. Product Review The Samsung Wave II S8530 (or "Samsung Wave II") is the Successor f Samsung Wave S8500 smartphone running the bada 1. 2 operating system designed by Samsung, which was commercially released on October, 2010. The Wave is a slim touchscreen phone powered by Samsung's "Hummingbird" CPU (S5PC110), which includes 1 GHz ARM Cortex-8 CPU and a powerful built-in PowerVR SGX 540 graphics engine, "Super LCD" screen and 720p high-definition video capture capabilities. Our Product Samsung Wave II smart phone offers the following standard features With a bada 1. 2 operating system Hardware features Calling - The speakerphone is great.
It was very loud and clear. Conference calling was also easy. Once you've placed your second call, an icon appears to conference the two calls. It can connected 20 calls at once and had no trouble swapping and dropping individuals from the conference. Design The phone is made of mostly metal alloy and is measured at 10. 9 mm thick. In terms of form factor, it is a slate style featuring only 3 physical buttons on the front: call, reject/ shutdown, and main menu button. The ergonomically designed body also makes it more comfortable to hold. Screen The screen is a 3. -inch (94 mm) capacitive touchscreen Super LCD with an anti-smudge oleophobic coating on top of the scratch-resistant tempered-glass (Gorilla Glass Display) touch panel which has been shown to be capable of resisting extreme friction (scratch-resistant). The screen resolution is 800x480 WVGA. Processor The phone features a 1 GHz SoC, which internally contains an ARM Cortex A8 CPU core that is identical to the ARM Cortex CPU core used in Apple's A4 package on package SoC. The Phone graphics engine is SGX 540 which is said to be capable of generating 90 million triangles per second (same as the SoC used on the Samsung Galaxy S).
And 512MB RAM (same hardware as Samsung Wave S8500). Camera The phone features a 5 megapixel which supports 2592 x 1944 pixels, along with autofocus, LED flash, Geo-tagging, face, blink detection, image stabilization, touch focus,etc. Other than these features it has various shooting modes such as beauty shot, smile shot, continuous, panorama and vintage shot. As a camcorder it is able to shoot 720p HD recording (1280x720) at 30 FPS with flash. As well as this, it is also able to record slow motion video (320x240) at 120 FPS with flash. Other features
Other feature includes A-GPS, 2 GB/8 GB of internal storage with a microSDHC slot for an additional 32 GB. It also has a magnetometer, a proximity sensor, an accelerometer, 5. 1-channel surround sound Mobile Theater, music recognition, a fake call service, smart search, Social Hub and it is the first phone to support Bluetooth version 3. 0. In addition to Bluetooth 3. 0, the phone also features Wi-Fi 802. 11 b/g/n, HSDPA 3. 2 Mbit/s and HSUPA 2 Mbit/s. This phone is available with both European/Asia 3G bandings and the North American 3G bandings.
Software Features User Interface The phone is one of the few smartphone to feature the Samsung bada operating system platform. The UI is Samsung's own Touchwiz 3. 0. Touchwiz 3. 0, like the 2 predecessors (Touchwiz 2. 0 and Touchwiz), utilises widgets. The 3 most notable widgets pre-installed in Touchwiz 3. 0 are Daily Briefing (which includes all essential information such as weather, finance, AP mobile news and schedule), Feeds and Updates and Buddies now (which allows users to call, send texts to and read Facebook/Twitter feeds off their favourite contacts).
Users are allowed to have up to 10 homescreens to add widgets. Applications In terms of Internet Browser, Samsung Wave is pre-installed with Dolphin Browser v2. 0 (based on WebKit). While this browser supports Flash it is disabled by default to improve page load time. By default, the phone comes with Picsel Viewer which is capable of reading . pdf and Microsoft Office file formats. Users from selected countries can buy and download Picsel Office Editor from Samsung Apps. As for Samsung apps, users can also download applications, games and widgets from the application store.
Other software includes the GPS software that comes with this phone (LBS Route 66), Palringo IM, Facebook, Twitter, social hub, mini diary, daily briefing, memo, video player, FM radio, media browser, voice recorder, e-mail and pre-installed asphalt5. Media Support MP3, AAC, AAC+, e-AAC+, WMA, AMR, WAV, MP4, FLAC, MPEG4, H. 263, H. 264, WMV, AVI, DivX, XviD, MK Competitive OVERVIEW Players There are currently four tiers of players in the handset market: · Tier 1: Nokia, Samsung and Apple · Tier 2: Motorol and Ericsson · Tier 3: Alcatel, Siemens etc · Tier 4: the rest
Nokia swept into the market, overtaking both Motorola and Ericsson to achieve the largest handset sales during 1998. Samsung after a brief struggle against Nokia and apple finally got a large share of customer. The failure of Motorola to move from analog to digital and of Ericsson to pursue fashionable designs enabled Nokia’s market position to improve. Since then, both Motorola and Ericsson have been aggressively playing catch- up, attempting to leverage their strengths in technology and semiconductors to attack Nokia’s share in the overall world market. Tier 3 companies cater to a lower-end, lower-margin market.
Relative lack of economies of scale, product range, and brand equity make market dominance or even parity a very difficult challenge for these smaller players. However, Samsung – with its new stylish design and technology – is well positioned in the emerging smart phone market, and is capable of threatening the larger two companies (nokia and apple). Compare between Samsung Wave-II and I-phone Because the large chunk of market segment who prefers Smartphone is captured by the apple’s I-phone.
Strengths Having the advanced technology over the competitors in the mobile phone industry – Decentralized company structure, innovative and creative employees and Charismatic strong leader – One of the best market leadership in the mobile industry – Strong brand name and company image in the global market – Has its own manufacture and network – Product innovation – Economy of scale Weaknesses – Complacency and arrogance – Few customized operator-specific handsets – Few alliances, company sticks to its standing in the market, do not want to cooperate with the operators Opportunities – The emerging market in developing countries, such as China, India, Bangladesh – The emerging market for high-end mobile phone such as business user phone Threats – Facing more new competitors, especially from Asia – Stronger buyer power from the network operators – Lost market share – Strong competition in mobile industry Objectives
We have set aggressive but achievable objectives for the first and second years of market entry. • First-year objectives: During the Samsung wave-II initial year on the market, we are aiming for a 40 percent share of the Bangladesh smart phone market through unit sales volume of 1,00,000 units. • Second-year objectives: Our second-year objectives are to achieve a 60 percent share based on sales of two models and to achieve break-even early in this period. Market Segmentation Our target market is mainly focused on young and professional people with a attraction for technology which is available in a relatively cheap price.
Gender : Male & Female Family Life Cycle: Young, single, married, married with children, older, under18. Occupation: Professional and technical, managers, officials and proprietors, clerical, sales, craftspeople, supervisor, Operatives, farmers, retired, students, homemakers, unemployed. Social Class: Lower Lowers, upper lowers, working class, middle class, upper middles, upper uppers Monthly income: Below Over10,000 Taka Size of potential market : Total population of Bangladesh. Geographical Location: Rural, Semi-Urban, and Urban User status: Potential user, first time users & regular users Usage rate: Light user, medium user & heavy user.
Readiness stage: Aware, informed, interested, desirous and intending to buy Marketing Strategy Positioning In 2007 Samsung Telecommunication Business reported over 40% growth and became the second largest mobile device manufacturer in the world.  Its market share was 14% in Q4 2007, growing up form 11. 3% in Q4 2006. In Q1 2008 Samsung strengthened its second position on the market and achieved 15. 6% world handset market share. So as per the concern regarding Bangladesh Samsung is already achieved a good market share after Nokia. Product Strategy
The development of a product with global appeal
Nimble movement to sell it internationally Most importantly, a commitment to learning what consumers want, without consideration of the limits of existing technology
- Best mobile devices for everyone regardless the price and geography
- Internet services on mobile devices
- Business mobility markets
- Once the superior business devices are introduced, Corporate users will take advantage of the stability and innovation
- Low cost innovative devices in the emerging markets will generate revenue due to the brand loyalty
- Introducing the device for business solutions, superior from its competitors
- Giving SDK(software development kit) to the developers to develop more applications on its new OS platform
- Introducing low cost ,innovative, devices in the emerging markets
- Leading Brand Pricing strategy
Samsung Wave-II smart phone will be introduced at BDT 20000/- per unit in compare with Apple-iphone, which costs BDT 55000/- per unit. Though it is not superior than I-phone but it could Outrun some function of I-phone like as we have mentioned in our previous discussion. Distribution Strategy In Bangladesh by selective distributor Samsung could promote the market and also by media Advertisement. Samsung could also promote the consumers with joint co-operation with major Carriers like Grameenphone and Banglalink. Marketing Communication Strategy
- At TV Advertisement
- At Radio Advertisement:
- At Outdoor Advertisement:
- At Press Conference:
Action Program The Samsung Wave-II will introduce in February 2012. Through a series of scheduled program Samsung will carry out its marketing strategy and achieve its objectives. A monthly basis detail about these programs are given below February 2012
- We will initiate a huge amount trade sales promotion ad. Campaign to educate dealers and generate excitement for the product launch.
- Send catalogs & brochures to 50000 likely customers
- Set-up showrooms
- Provide samples product reviewers, opinion leaders and celebrities as the part of our public relation strategy.
- Create own website. March 2012
- Collecting marketing information. Start an integrated print/radio/TV/ Internet campaign targeting consumers.
- Launching Samsung Wave-II April 2012
Study consumer satisfaction and identify opportunities. Budget [pic] Total first-year revenue : Tk. 200 Core sales volume: 100,000 average wholesale price : Tk. 20000/- per unit. Variable cost per unit : TK 2500 for units Samsung Wave-II projects sales of Tk 60 Lac on 1st quarter and consequently Tk. 60 Lac, Tk. 40 Lac and Tk. 40 Lac Estimated first-year fixed costs: TK. 170 Core Break Even calculation = TK. 1700000000 /TK. (20000-2500) = 97143 Units(approximated) Controls There should be a tight monitoring system in every level of execution from top to bottom.
We will carefully monitor customer satisfaction through our product and customer service Center. Any sign of deviation will be corrected through our highly skilled manpower. Further plan has been developed in the context of severe price downgrading. CONCLUSIONS Samsung must rethink its strategies if it is to remain successful. The recent economic slowdown coupled with impending market saturation and the demand for increased functionality, is beginning to dramatically change the handset market. Samsung should take aggressive measures to resist commoditization if it is to grow and continue being profitable. We have outlined some ways that it can accomplish this.
Its brand has proven to be one of its most valuable assets, and Samsung should continue building it. Samsung must also thoroughly research evolving customer needs and provide a positive impetus for brand differentiation. Finally, by forming strategic alliances with industry and service providers, Samsung can ensure and maximize its visibility to the end- user. Samsung also needs to bring new products to market, and, as the market is showing signs of saturation, shift its focus onto the replacement market. This means developing data-driven services and appropriate partnerships with content providers. There simply needs to be an incentive for existing handset owners to purchase a new Samusng handset.
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