Recently, Samsung has emerged as a popular brand in the market.
Started as a small trading unit in 1938, Samsung gradually expanded it’s business to new verticals like insurance, telecommunication, retail, construction and then finally introduced itself to smartphones and digital TV business.
Most of us are not aware of the verticals in which Samsung is involved in, but we all know that samsung is one of the best Smartphone provider.
But the journey of Samsung was also with many ups and downs and has struggled a lot in order to maintain position in the market.
The brand which struggled to compete the smartphone market has now evolved as the 7th most valuable brand around the world and is now the core competitor app Apple in smartphone market.
Do you know what helped Samsung to become the industry leader? It was the marketing strategy of Samsung.
Let’s understand the 4ps of Marketing mix of Samsung, the marketing strategy of Samsung and how effectively it used to become a leader in market.
Marketing Mix of Samsung :
PRODUCT: PRODUCT MIX OF SAMSUNG
The product portfolio of Samsung is entirely huge and has multiple products which serve the needs of diverse customer range. The product portfolio of Samsung includes the following :
Under smartphones, Samsung offers models like
- Galaxy Pro
- Galaxy Tab
- Galaxy Note, Note Edge, Note 8, Note 7 etc
- Samsung S9, S9+, S8, S8+, A6, A6+, J6 and many more
PRICE IN MARKETING MIX OF SAMSUNG :
Pricing Strategy of Samsung :
Having a wide variety of the products for its customers, pricing plays a huge role in the marketing mix of Samsung.
Samsung uses multiple pricing strategies to target different customer segments basis the different products that they offer. The strategy Samsung opted for revolves around the pricing of its different brands and models.
Skimming Price Strategy:
In skimming pricing strategy the products are priced higher so that fewer sales are required to reach the target. Selling a product at a high price, sacrificing high sales to gain a high profit is, therefore “skimming” the market. Skimming price strategy is basically for the early adopters of the product.
Samsung smartphones are one of the best in class products and strongly compete with brands like Apple iPhone in terms of market share, USP, and features.
Their new entrant in the marketing is Galaxy S10 | S9+, Samsung uses skimming pricing strategy for these flagship products which hold very strong customer affinity.
Samsung tries to get high value at the start with the skimming strategy and then, later on, drop the prices when the competitors try to enter the market.
Competitive pricing strategy:
Apart from its flagship products, there are a number of smartphones and other products that Samsung launches in the market every now and then. For these products, Samsung uses competitive pricing where it competes with other big brands like LG, Voltas, Hitachi etc on the basis of Brand value, features and price.
Samsung uses competitive pricing for different products and product categories where it tries to compete with the competitors on the basis of the price of the product.
PLACE IN MARKETING MIX OF SAMSUNG
Place plays a very crucial role in the 4ps of the marketing mix of Samsung
Just like other smartphone brands, the marketing strategy of Samsung also follows channel marketing as the distribution medium for its products. Samsung has tie-ups with large as well as small retail giants like Chroma, Vijay Sales, Reliance digital, etc that handle the sales of Samsung.
Apart from these retail distributors, Samsung also has its own sole distributors where they only sell Samsung products.
E-commerce channels like Facebook marketplace and Amazon are also be utilized to their maximum potential by Samsung to sell their products. Samsung has unique partnerships with these brands that allow them to reach out to a large customer base in a cost-effective manner.
PROMOTION IN MARKETING MIX OF SAMSUNG
Branding plays a huge role in creating awareness about new product launches done under different categories.
Samsung uses a mix of Online and Offline promotional channels to promote their products. Samsung uses advertisements, social platforms and paid digital promotion to create awareness among customer for new product launches.
It also uses a wide range of offers and schemes with trade partners to push their products through an offline channel. Below is an ad of the all-new Samsung Galaxy S9 | S9+ that Samsung created to generate awareness among its customers about their new flagship product. Every company needs to crack a marketing strategy that works best for them and the marketing strategy of Samsung is something which is helped the company turnaround its business and become market leaders in the smartphone category.