Marketing Mix of Samsung analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the Samsung marketing strategy. The article elaborates the pricing, advertising & distribution strategies used by the company.
Let us start the Samsung Marketing Mix:
Samsung invests a lot in research and development to deliver the best products to its customers. Samsung offers a wide range of products in different product categories. The diverse offerings come under the products of Samsung marketing mix. The products can be classified into five categories and they are:
Mobile devices- Smartphones like Samsung Galaxy series, Tablets, Wearables, Other Phones, Accessories
Samsung Home Appliances- Refrigerators, Washing Machines, Cooking appliances, Air conditioners, Vacuum cleaners
TV/AV – Samsung Television, Audio and Video, Accessories
Information Technology - Printer and Multifunction, Monitor
Memory/Storage- SSD, Portable SSD, Memory cards, USB Flash drives
Samsung is a market leader in smart phones and is a dominant player in market for home appliances. It uses two pricing schemes which are:
Skimming Price –Samsung uses skimming price policy. For instance, when Samsung launches new products with different variants of storage capacity, it prices the product higher. But when other competitors launch a smartphone with identical features, Samsung lowers the price and easily prevents the reduction of its market share due to the launch of the competitor.
Competitive Pricing –This pricing strategy is a part of Samsung marketing strategy. Samsung has not succeeded in becoming the leader in other product categories. Samsung is a trustworthy brand, but in the ‘home appliances’ product-category, it hasn’t surpassed LG yet. To prevent the flanking attacks from its competitors in the market it’s essential for Samsung to use competitive pricing. Also, Samsung is a not a first mover in these product categories and thus it has to defend its position in the market. All these help in understanding the pricing strategy in the Samsung marketing mix.
Samsung sells directly to the retailers and service dealers. And due to this strategy, only service dealers are responsible for the corporate sales. Retailers dealing in technology generally have to include Samsung in their offerings, because of the brand being world-famous. The distribution is the strength for Samsung. Samsung also distributes its products using a single distribution company in a particular location that further distributes the products to other locations.
Promotion is a strong pillar in the marketing mix of the company. Samsung believes that advertising the best form of promotion to engage potential consumers and position the brand. Samsung promotes new products using newspapers and digital media. To take the advantage of the huge number of followers of celebrities, the brand has invited many celebrities to be the brand ambassadors and promote the product. Big placard, hoarding and posters are put up on highways.
Besides advertising, Samsung also uses different promotional tactics to make customers buy the product. Samsung is mostly famous for its product quality and user experience but Samsung is also known for being a giant in sponsoring events. Samsung also sponsors major events. Samsung offers heavy discounts during national festivals. This concludes the Samsung marketing mix analysis.
SAMSUNG is a South Korean company founded by Byung-Chull Lee in 1938. The company started as a trading company and gradually became a multinational conglomerate through many acquisitions and mergers. Samsung Electronics Industry Co Ltd was established in 1969. Samsung has more than 200 subsidiaries across the world. The brand’s vision is to be in the global top 5 by 2020 and it believes that value creation and innovation will lead it to the top. The company also inspires to be in the top 10 world’s best workplaces. The company offers Mobile devices, Televisions, Home Appliances to the consumers.
Browse 4Ps Analysis of more brands and companies similar to Samsung Marketing Mix. The Marketing Mix section covers 4Ps and 7Ps of more than 300 brands in 2 categories.
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