Marketing Mix of Samsung – Understanding the 4Ps of Marketing Mix of Samsung
Not long ago, Samsung wasn’t as popular a brand as we know it today.
Started out a small trading company in 1938, Samsung slowly and steadily tried its hand’s in different other sectors like insurance, retail, telecommunications, construction and then finally moved into digital TV and smartphones business.
Most us might not be aware of the different sectors that Samsung is involved in, but we all surely do know it as one of the world’s finest Smartphone brand.
But the story of Samsung has not been all rosy, they had its own share of struggle to maintain the market share.
A brand once struggled to keep up with the smartphone market has now progressed to become the 7th most valuable brand in the world and the main competitor of Apple Inc. in terms of smartphone market share.
But what helped Samsung become an industry leader – It was mainly 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 its advantage.
Marketing Mix of Samsung :
Product: Product mix of Samsung
The product portfolio of Samsung is quite rich and has different products which cater to different target customers. The product portfolio of Samsung includes:
Under smartphones, Samsung offers models like
- Galaxy Tab
- Galaxy pro
- Galaxy Note, Note 8, Note 7, Note Edge etc
- Samsung Galaxy 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 to offer to its customers, pricing plays an important role in the marketing mix of Samsung.
Samsung uses various pricing strategies to target different customer segments basis the different products that they offer. Marketing strategy of Samsung 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 needed to break even. 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 best in class and strongly compete with the likes of Apple iPhone in terms of market share, USP, and features.
Their new entrant in the marketing is Galaxy S9 | S9+, Samsung uses skimming pricing strategy for these flagship products which hold quite a 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 important role in the 4ps of the marketing mix of Samsung
Just like other smartphone brands, 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 their own sole distributors where they only sell Samsung products.
E-commerce channels like Facebook and Amazon are also be utilized to their maximum potential by Samsung to sell their products. Samsung has exclusive 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
Advertising and promotion play a major role in creating awareness about new product launches of Samsung.
Samsung uses a combination of Online and Offline promotional channels to promote their products. Samsung uses Product advertisements, social channels and paid digital promotion to create awareness about their products among customers.
And uses different types 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 their customers about their new flagship product.
Every company needs to crack a marketing strategy that works best for them and marketing strategy of Samsung is something which is helped the company turnaround their business and become market leaders in the smartphone category.