Samsung GALAXY S4 - Marketing Mix in Australia - Example

Student: ID: Tutor: Course title: Course code: Institutional affiliation: Date of submission: Table of Contents Marketing mix of Samsung Galaxy S4 in Australia Market 3 1Introduction 3 2Target market 3 2.1Demographic characteristics: 4 2.2Behavioral characteristics: 5 2.3Psychographic characteristics: 5 3Marketing mix 6 3.1Product 6 3.2Promotion 8 3.3Place 10 3.4Price 10 4Competitive advantage 11 5Success of the firm 12 References 13 Marketing mix of Samsung Galaxy S4 in Australia Market 1 Introduction This report focuses on the marketing mix of Samsung Galaxy S4 in the Australian market. The report aims at evaluating the effectiveness of Samsung Galaxy S4 as a response to the Australian target market’s needs and wants. Samsung Galaxy S4 is manufactured and distributed by Samsung electronics Co Ltd, a subsidiary of Samsung group based in Seoul South-Korea[Sam133]. Samsung group is the world largest Technology Company in terms of revenue generated. Apart from mobile phones, Samsung electronics also produces other items such as microwaves, TVs, Radios, Refrigerators, and other consumer electronics[Sam135]. Samsung Galaxy S4 was introduced into the Australian Smartphone market towards the end of April 2013 to follow up on the success of Samsung Galaxy S3 which had been in the market for over one year. The Australian Smartphone market is very competitive with players such as Nokia, Apple, Samsung, HTC and other brands all competing for a share of the market[And13]. Samsung Galaxy S4 was introduced into the market as a life companion, designed to interact with the social, fun side of the users. it features include but not limited to 5.0" Display Size display, and 13 megapixels dual camera, Group play, S Translator[Sam132]. 2 Target market Samsung Galaxy S4 runs on Google’s android platform which is currently enjoying widespread popularity around the world and in Australia where the market share was recorded at 64% in October 2013[And13]. Samsung Galaxy S4 is a premium Smartphone by Samsung Electronics targeted for the high end market which desires not only performance but also prestige in the products bought[And13]. Famed by the manufacturer as the ultimate life companion, Samsung Galaxy S4 promises an exceptional experience for its users thus giving value for their money[Sam134]. Samsung Galaxy S4 is giving iPhone 5 a hard time in Australia where the latter had been enjoyed an almost unrivaled market domination in Australia. To understand the market for Samsung Galaxy S4, the following segment features can be considered; 2.1 Demographic characteristics: Age The phone is not particularly targeted for any age group but most of the features and the experience intended for the user to accrue by the manufacturer means the phone will most likely be focusing the middle class in Australia which is between the ages of 22 and 50. According to Shapiro (2013) this market segment is usually interested by new technology, the segment is comprised of people with busy lives and will most likely be looking for any opportunity to have fun, and this is where Samsung Galaxy S4 comes in to complete the moment. Munusamy, Lim, & Chellia (2010) note that older consumers above 50 tend to be loyal to certain brands and models they are used to and thus may not constitute an important target market for Samsung Galaxy S4. Gender Samsung Galaxy S4 designers have achieved a neutral positioning for the phone as a product that can suit both genders. It means therefore that both females and males comprise the target market for Samsung Galaxy S4 in terms of gender segmenting. Ethnicity Samsung has positioned itself as a global brand not affiliated to any ethnic, religious or political group. As such the product targets all Smartphone buyers in Australia despite the affiliations mentioned. 2.2 Behavioral characteristics: Benefits expectations Due to the high price and premium positioning of Samsung Galaxy S4, its consumers expect to find high performance and advanced technology in the gadget to deliver just the exceptional experience it has been touted to offer[Sam134]. Among other things, users expect fun photo taking sessions, music playing experience, superior browsing and internet connectivity, advanced apps and more. Geographic characteristics: Samsung target market in Australia is targeted for the whole of Australia in terms of geography considering mobile phone penetration and rising disposable income in the whole of the country. The phone was launched in Australia to rival the dominance of apple in the market with the Australians growing acceptance of android based smart phones. 2.3 Psychographic characteristics: Lifestyle: The middle class is often associated with consumerism in economies all over the world. Most purchase gadgets to trendy without regard to neither price nor the benefits expected[Gar13]. Australia’s middle class is no exception. Samsung Galaxy S4 targets consumers with this particular lifestyle in Australia with a product that offers prestige and new technology all packaged in a beautifully designed Smartphone. 3 Marketing mix 3.1 Product The product under review in this paper is Samsung Galaxy S4 which is a mobile communication handset produced by Samsung Electronics. The Smartphone runs on android 4.2.2 (Jelly bean) system with advanced features including Octa Core Processor, 1.6GHz Quad + 1.2GHz Quad CPU Speed, 5.0" Display Size display, and 13 megapixels dual camera. Wi-FI connectivity[Sam132]. In addition to these, Samsung Galaxy S4 also has features such as Group play, S Translator and other premium features unique to Samsung Galaxy S4[Sam133]. The phone is going for around $799 in Australia making it a luxury consumer commodity that is not necessarily a necessity product[JBH13]. The phone meets the needs and wants of the target market which is specifically interested in high performance gadgets that offer more than communication but also premium service and value to the users. Samsung Galaxy S4 offers prestige and exceptional experience to its users through the applications and features unique to the product. Samsung Galaxy S4 is pegging its prospects on the strong brand that is Samsung electronics well known globally for quality and reliable gadgets[Ant11]. It is important to note that Samsung Galaxy S4 predecessor Samsung Galaxy S3 was hugely successful in Australia and all over the world and is just entering the market to extend the good run by the predecessor[And13]. The product is packaged as a prestigious and ‘must have’ Smartphone gadget that will make life fun and enjoyable for users. The Samsung Galaxy S4 is marketed as the life companion and fits so well with the lifestyle of the middle class who are the target market of the product[Sam134]. Samsung Galaxy S4 is at the growth stage of its life cycle having been in the market for only six months. The product has faired well in the market within a very short time building on the success of the previous models of the Samsung Galaxy S family. At this stage the product enjoys good sales and consumer reception of the product is good. Growth at this stage is impressive giving the firm a chance to recoup initial costs of producing the product before the market dynamics reduce the growth of the product[Rub12]. 3.2 Promotion Image source: Samsung Australia. Samsung brand is associated with quality and reliability judging from the success of previous Samsung Galaxy S models and other household appliances. All the same the Smartphone market in Australia is very competitive. The android based devices are taking over the market slowly encroaching into iPhone’s and Blackberry’s market share (The Sydney Morning Herald, 2013).This necessitates the need by Samsung to launch an aggressive campaign to popularize Samsung Galaxy S4 which is also facing competition from the android based devices such as HTC and also Nokia’s Lumia running on windows mobile platform. Samsung has run several motion adverts on local Australian media in television networks including Austar. The marketing theme for Galaxy S4 is “Its time to change- Make the switch to Samsung GALAXY S4” [Sam134].Some of the adverts include the ‘dinner party’, ‘Its time to change- the teaser’ and ‘everyone changing’. The adverts feature a central character yet to purchase Samsung Galaxy S4 while his friends have all switched to the new gadget[Sam131]. The teaser highlight the translator feature of Galaxy S4 (SamsungAustralia, 2013).The aim of the adverts is to provoke the consumer towards buying the new Samsung Galaxy S4 as ‘it is time to change’ television adverts give advertisers a better chance of demonstrating the benefits that a product delivers and these particular Samsung Galaxy S4 adverts achieves just that by highlighting some of the exceptional features by the phone such as group play, S translator, 13 megapixels camera and more. Samsung has also taken advantage of the emerging social media platform to popularize Samsung Galaxy S4 and run promotions in Australia. Through the twitter handle @Samsung Galaxy S4 is currently running a promotion in which it’s giving away 200 new Galaxy S4 smart phones to users who retweet and follow some of its promo hash tags[Gal13]. Samsung has overtime established the Samsung Galaxy S model as high quality reliable Smartphone and has thus relied on the successes of the previous Samsung Galaxy S models to have consumers anticipate a much better version of the Samsung Galaxy S which they have already approved as quality and prestigious gadgets[Sam132]. This is the strategy Samsung used when launching the Samsung Galaxy S4 into the Australian market where prior announcement gets the market ready for the product and thus stimulate initial sales of the product that help absorb any future consumer indifferences to the product. The promotion is quite compatible with the products lifecycle as it focuses on positioning the product as the newest best alternative in the market and thus seeks to stimulate growth in the growth stage of the product before efforts starts focusing on maintaining market share. 3.3 Place Samsung does not distribute directly to consumers like apple which uses some of its apple stores to distribute the iPhone brand. Instead, Samsung uses stockists to distribute its products to the Samsung Galaxy S4 buyers[Ant11]. This means that stockiest such as Harvey Norman, JG HIFI and Dick Smith sell Samsung Galaxy S4 to consumers at a margin[Sam13]. This ensures that Samsung has a wide reach in Australia as the stockiest are established stores with reliable networks all over Australia. In addition this reduces overhead expenses and initial capital outlay thus reducing risk on the side of the manufacturer. The stockists also help stimulate sales of the product by running their own promotions further reducing expenses and increasing revenue generation for Samsung. Harvey Norman and JB HIFI all sell Samsung Galaxy S4 at their websites apart from stores all over Australia further increasing their market reach. High end Smart phones have short life cycles and thus need fast distribution to reach the end consumers within the shortest time before competitors launch newer models[Rub12]. As such this distribution network is suited for the products growth stage of its lifecycle as; it will not be very extensive going forward. 3.4 Price Samsung Galaxy S4 is a prestige shopping product whose value is more towards prestige than offering the basic service of a mobile phone. The target market is less sensitive to high price and as such associate high price with high quality and prestige. The pricing of Samsung Galaxy S4 is quite high at and average of $ 750 in three online retailers (Harvey Norman, JB HIFI and Dick Smith) Apple’s iPhone5 is retailing at an average of $ 780 while Nokia’s Lumia 925 is going for an average of $ 650 in the three shops[Har13]. The prices are almost same and reflective of brand strength in the Australian market. iPhone5 is the oldest brand of the three and as such has to maintain a high price reflective of the market share and consumer trust it has gained overtime coupled with the higher brand strength, Samsung Galaxy S4 comes second pegging its prospects on the success of the previous Samsung Galaxy S4 models. Lumia is a latecomer using price undercutting to gain a market share. Samsung is using its brand strength to determine the price but also considering market reality of a dominant iPhone to slightly undercut the price to attract consumers but also keeping it relatively high to maintain the prestige tag. It is a balance that suits the growth stage of the product’s lifecycle as it stimulates buying and consolidation of the gained market share. 4 Competitive advantage Samsung Galaxy S4 is marketed by Samsung as a life companion due to its highly interactive features that offer a unique yet exciting experience to its users. Some of the features include 5” Full HD Super AMOLED screen, 13 Megapixel Camera with Dual Shot, S Translator, Air Gesture, NAVIGON navigation system[Sam134]. Samsung is also a strong brand associated with reliable technology and high quality hardware running stable android software. The product positioning as a ‘must get’ technology product builds on this long held reputation by the target market. The previous models of the Samsung Galaxy S line have been meeting consumer expectations and thus the new brand is hyped as better than the previous releases[Sam133]. These factors all conspire to give Samsung Galaxy S4 a strong competitive advantage over its major rivals such as Lumia and iPhone which don’t enjoy the popularity of the android as well as the rising acceptance of Samsung a reputable brand. The company has also been able to maintain a relatively affordable price for Samsung Galaxy S4 making it an affordable alternative from the rest of the smart phones in the market. The features also make the phone enjoyable to be with and this is what the promotion efforts seek to advance. 5 Success of the firm From the analysis in this paper, it is evident that Samsung has employed a great deal of effort in the marketing mix of Samsung Galaxy S4 to differentiate the product in a market full of similar products. The marketing mix is able to meet consumers’ expectations and needs thus making the product effective in terms of responding to consumer needs and wants. To start with the product features all the characteristics of a luxury Smartphone which is what the target market is interested in. the gadget is fun to be with and is also high performing in terms of processor speed, network connectivity, music playing, video taking and other features unique to Samsung Galaxy S4. The distribution strategy ensures the product is relatively affordable and reaches the market in time. The consumers also have a chance to have their queries responded to through the designated stockists The promotion method through televisions networks and social media networks as well as print in magazines ensures the company is able to reach the target market and assure them of the product’s ability to meet their wants and preferences. The pricing is not too outrageous neither is it so low to dilute the perception of the product as a premium technology product. The price then ensures higher sales but also serves the psychological effect of positioning Samsung Galaxy S4 as a prestige commodity which actually the unmentioned need of the target market. It is clear then that the success of the firm in harmonizing the marketing mix to ensure it meets the needs and wants of the consumers effectively has been achieved. In effect the firm will be successful in making decent profits from Samsung Galaxy S4 while at the same time meeting the needs of target market as highlighted in this paper. References Sam133: , (Samsung, 2013), Sam135: , (Samsung, 2013), And13: , (Sadauskas, 2013), Sam132: , (Samsung, 2013), Sam134: , (Samsung Australia, 2013), Gar13: , (Shapiro, 2013), JBH13: , (JB HI-FI, 2013; Harvey Norman Australia, 2013), Ant11: , (Michell, 2011), Rub12: , (Dholakia, 2012), Sam134: , (Samsung Australia, 2013), Sam131: , (Applegoss, 2013), Gal13: , (Galaxy S4/Twitter, 2013), Sam132: , (Samsung, 2013; Samsung Australia, 2013), Sam13: , (Samsung Electronics Australia, 2013), Har13: , (Harvey Norman Australia, 2013; JB HI-FI, 2013), Sam134: , (Samsung Australia, 2013; Samsung, 2013), The Sydney Morning Herald, 2013. Android extends lead over iPhone as Windows Phone grows. [Online] 8 August. Available at: http://www.smh.com.au/digital-life/mobiles/android-extends-lead-over-iphone-as-windows-phone-grows-20130808-2rhjj.html [Accessed 27 December 2013] Read More