Not too far ago, Samsung wasn’t as popular as now.
They struggled to keep up with the smartphone market, but now Samsung has progressed so much that they are the main competitor of the Apple Inc.
Furthermore, Samsung is the largest tech business by revenue and seventh most valuable brand today.
What helped Samsung to become an industry leading technology company, was the marketing strategy they applied.
The Samsung marketing strategy was one of the most effective strategies ever created because it helped a cost-driven company to change its structure and become an authority manufacturer.
Due to the ever-changing tastes of consumers in the technology industry, companies had to follow the pace and offer progressive and evolving gadgets to their customers.
So, Samsung also had to change in order to gain the upper hand on the market and the new Samsung marketing strategy was the key to evolution.
Samsung Marketing Strategy: The Master Brand
Growth and development are essential parts of the technology.
Consumers were never attached with certain technology products, they always strive to have the best. Such situation has obliged technology manufacturers to rapidly create new gadgets that would satisfy the needs of customers, and for several years, Samsung has never failed in this component.
Society has always loved when the gadget maximizes their life comfort and decreases the time spent on unwanted/simple tasks.
Today, Samsung has sparked in terms of innovation and instead of satisfying the needs of the society, they have literally started to create the need for people.
Besides, Samsung has an interesting and vast product portfolio. Their product range includes laptops, tablets, smartphones, TVs, cameras, Refrigerators, etc.
By this, I mean that the Samsung marketing strategy has helped the firm to build trust on every product they manufacture.
Now, let’s start discussing and analyzing parts of the well-praised marketing strategy of Samsung.
Marketing Mix of Samsung – Samsung has reached unbelievable heights with its smartphones, which helped the brand to become a symbol of quality and reliability for its consumers.
Besides the product, Samsung is famous for its customer service (Samsung has one of the fastest product services). Though, product variation is the most powerful aspect of the marketing mix of Samsung.
Samsung Marketing Mix Pricing Strategy – Samsung marketing strategy involves two pricing strategies and let’s see for what goals are they used.
- Skimming Price – Smartphones of Samsung are leading the market with Apple’s iPhone. As Apple, Samsung also uses skimming price to gain the upper hand over their competitors. For instance, Galaxy S6 and S6 Edge are the brands new products of Samsung carrying the slogan “Next is Now” and claiming that they are the most beautiful smartphones ever created. Without a doubt, S6 Edge (64 GB) that costs 1 180$ will brilliantly/smoothly sell around the globe. But, what will happen when other competitors will launch a smartphone with identical features? Simple. Samsung will lower the price and easily steal customers from the competitor.
- Competitive Pricing – One of my favorite parts of Samsung marketing strategy. Due to the fact, that unlike smartphones, Samsung has difficulties in gaining an edge over its competitors with other products. Surely, Samsung is an authentic brand, but in terms of home appliance, it can’t possibly surpass LG. Furthermore, in Cameras Cannon and Nikon are leading the market. So, for Samsung to withstand this fierce competition, it’s vital to use competitive pricing. Also, Samsung never is a late comer in production and non-innovative, but they are mostly the first ones to introduce a change.
Placing in Samsung Marketing Strategy – Samsung uses channel marketing in its industry. And from this strategy, only service dealers are taken into account for corporate sales.
Retailers who present the technology chain are bound to include Samsung in their list, because of the firm being a world-famous brand and Samsung can also serve as an alternative for the consumers.
The distribution is a compelling part of the Samsung marketing strategy.
In certain cities, Samsung has a contract with a single distribution company that distributes the product throughout the city.
For instance, Mumbai is a great example of a city, where Samsung distributes its product through a single company.
These reasons may vary, but some of them might be like less concentration required for monitoring distribution channels or paying less to distribution companies because while placing a large order, discounts are always present.
Promotion in the 4Ps of Samsung – Samsung marketing strategy uses diverse forms of promotion. As Coca-Cola and Nike, Samsung is convinced that advertising is one of the best forms of promotion to engage potential consumers.
Besides advertising, Samsung approaches different promotional tactics to make customers buy the product.
For instance, quite often, Samsung introduces discounts, sponsors events, engages with national and worldwide festivals, etc.
Hence, the Samsung marketing strategy simultaneously helps the organization progress in different aspects.
Sponsorship – Samsung is one of the largest companies in the world. Today, they have 150,00 employees worldwide.
Samsung is mostly famous for its product quality, but besides the gadgets, Samsung is known for being a sponsor giant. Current sponsorship of Samsung is Sydney Opera House, Australian Olympic Team, NSWIS Awards, Oceania Foundation, etc.
Advertising – Samsung doesn’t concentrate on commercials like Coca-Cola or Pepsi, but they always promote their most important products.
To get the hang of Samsung’s advertising system, let’s review some of their famous and most successful advertisements.
Marvel’s Avengers: Age of Ultron and Samsung Mobile present ‘Assemble’ Part 1 and 2 -The advertisement, starring Lionel Messi, Eddie Lacy, John Florence, Fabian Cancellara and 2 awesome fans, was the huge success of Samsung’s marketing department.
At the moment, both parts of the video have more than 51 million views. The commercial focuses on the compatibility of the Gear VR and the Galaxy S6, showing the awesomeness of the new product that Samsung introduced.
Furthermore, it’s important to note that Samsung gave non-famous people a chance to participate in this breathtaking commercial, making the company and the advertisement even more successful and at the same time, increasing the public image of the organization.
#GALAXY11: The Match Part 1 and 2 – The sensational moment that every football fan has been waiting, when Lionel Messi and Cristiano Ronaldo come together and run for #GALAXY11 to save the planet from the evil aliens! The commercial is absolutely stunning and compelling. Moreover, the quality is outstanding and it’s definitely amusing. So, the ad surely drives interest to Samsung and it might even make you change the brand of your smartphone.
Samsung marketing strategy is a perfect example for marketers to progress and grow. No matter how hard you try, it’s crucial to create a powerful marketing strategy for your business to grow and evolve. Furthermore, having multiple products can dramatically benefit your company, but if it’s not wisely used, then the whole firm might collapse. So, being cautions is vital. And never spare your energy, time and money on marketing, because it’s the core competency of your business development.