Introduction
In terms of volume, Samsung is the largest smartphone manufacturer and seller in the world. According to Counterpoint Research, Samsung has followed some strategic directions that have made them the best smartphone producer in the world. This report has explored the marketing strategies of Samsung in the smartphone market.
What are the marketing strategies of Samsung in the smartphone market
Samsung continuously conducts market research
There has been tremendous competition in the global mobile phone industry and companies are constantly trying to offer newer and better mobile phones for the customers. To win the competition, Samsung is continuously researching and developing new mobile phones to attract new and more customer. The most prominent competitor of this company is Apple. To make wider use of the mobile phones, Samsung allows the use of Android application in its mobile phone because this is available.
Samsung emphasizes on adding new features in their smartphones
The mobile phone customers want new features, as a result Samsung has a research and development centre that continuously develops new features and adds innovations (Samsung, 2015). Therefore, adding new features is one of the most important Marketing strategies of Samsung in the smartphone market. The company offers newer mobile phones very offer so that it can meet the increasing demand of the customer, each time it offers a new phone, and it has some new features and additional services (Rogerson and Peckham, 2015). On the other hand, Lenovo also makes and brings newer phone in the market, but the frequency and the level of development is much less than those of Samsung or Apple.
Samsung puts pressure on reducing costs
Reducing the costs is one of the most important Marketing strategies of Samsung in the smartphone market. Samsung is in pressure to reduce the production cost because they are now facing competition as Chinese companies offer far cheaper mobile phones. To reduce the cost, Samsung has moved its production in lower cost countries such as in China, Vietnam and in India. As a result it has become able to reduce the cost. Moreover, the company focuses on experiencing economies of scale in its production process through bulk production.
On the contrary, Lenovo is a Chinese company and thus it already has the advantage in terms of production cost. Still Lenovo tries to reduce the production cost. One significant difference between the two companies is that Samsung tends to increase its price of newer mobile phones, on the other hand, Lenovo is reducing its prices.
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Samsung expands business in the emerging economies
Responding to the increasing use of mobile phone in the emerging market is another of the most important Marketing strategies of Samsung in the smartphone market. Samsung has targeted the emerging market and thus the company offers adapted products and services to these countries. But one important fact is that the company has not reduced its prices unlike Lenovo. On the other hand, Lenovo also adapted the products to match with the changing needs of the emerging economies. This company has reduced the prices for gaining more market share in this emerging market.
Reduce the new product development cycle time
The time to market a product has decreased and thus the companies are now in pressure to reduce the time to invent and market a product. Thus, Samsung has increasingly developed its R&D department to make sure that it can deliver quality products in least amount of time.
Samsung wisely handles legal cases in the USA
Forbes reported that Samsung has faced legal case from Apple several times and to react with the situation, the company has made the position as an advantage. Apple proved that Samsung has copied Apple technology and after then, Samsung has published that it has the same technology as Apple, this situation has improved the position of Samsung.
Samsung makes bigger smartphones
The company has successfully targeted that people would like bigger smartphone and thus the company has produced bigger smartphones, therefore, the company is successful in capturing a market share of almost 20% in the global mobile phone industry.
Adds impressively new features
Another competitive strategy of the company is that it can trace the needs of the culture and people and accordingly it produces and adds new features to its new mobile phones. As a result the company has been able to get the increasing market share.
Samsung is a fast follower
Another competitive strategy of the company is that it can follow other competitors such as Apple. Samsung has followed the closest competitor: Apple and copied its features in the products. Therefore, it was also filed cases against Apple for violating the patent copyrights.
Targeting the quality-loving customers
In the recent times, there has been increasing demand for higher quality products, in this case, Samsung has emphasized on the quality of the products and marketed the customers in the developed world. In addition to that the company also understood that there is demand for quality smartphones in the developing world. Thus it marketed customized products in those developing market.
Samsung emphasizes on differentiation
Although Samsung first followed Apple in some cases, latter on Samsung also developed new products and invented new technologies. Samsung has differentiated its products from the competitors in terms of features, prices, quality. It has differentiated its products to target the higher class customers who want to feel special with innovative products.