What is Samsung's current Marketing situation? What I mean is how are they currently doing and how will they do in the future?

 

Samsung marketing strategies are explained with detailed information in accordance with market analysis and future forecasting.

Apart from being one of the world's largest smartphone brands, Samsung Electronics Co Ltd also manufactures and sells computer chips and displays as well as home appliances and televisions. It is headquartered in Seoul, South Korea. In recent years the company has experienced tremendous success, powered by its market-leading position strong innovative capabilities, and product quality. In different price points, it has brought in a wide range of smartphones. Samsung's Galaxy smartphone series holds a leading spot in the luxury smartphone segment. The Galaxy is also one of Apple's leading iPhone rivals.

Several factors have guided the company's success, including a superior brand image, marketing, product quality and its emphasis on research and development. Intense rivalry is faced by the technology industry. There are several strong Samsung rivals in the global markets, from Apple to Huawei, Xiaomi, and many more. Samsung, however, maintains a good spot in the US market amid the intense rivalry. Years of strong focus, as well as research and development, on product quality have helped the brand expand its popularity faster. The business generated net sales of 230.4 trillion Korean Won, or 197.7 trillion USD, according to its 2019 annual report (Samsung Annual Report, 2019).

Situation and Market analysis

Samsung is primarily a smartphone and consumer electronics brand. As a market for smartphones as well as TV devices, it has retained its lead. In 2006, the company gained the top spot in the global television industry and has managed to maintain its top position since then. As a television brand, the credit for its leadership status goes primarily to its emphasis on creativity. The business is ahead of the other brands in this market and has introduced a wide variety of technologies to the television landscape, including The Wall' that has brought home and workplace large-screen viewing. It was about television, however. With the highest number of shipments worldwide, Samsung continues to be the largest brand of smartphones globally.

Samsung was the biggest smartphone seller in 2019, led by Huawei in second place. In 2019, the South Korean company had a market share in the smartphone industry of around 22 percent. It sold more than 290 million smartphone units worldwide in the year. Samsung's dominance, however is not limited only to the market for smartphones or televisions, but instead the business also occupies a strong role in the tablet, semiconductor and display industry. The Samsung-made Galaxy Tab competes against the Apple iPad. Samsung was the world's second largest tablet seller in 2019, with about 7 million shipments alone in the fourth quarter. In addition, the company is also the largest distributor of NAND flash memory, having a market share of over 31% during the second quarter of 2020. In the global semiconductor industry, Samsung still enjoys a good role.

Although Samsung is a global leader in smartphones, its position in the United States market is its most important leverage. Samsung is behind Apple in the US smartphone industry, holding the place of the second largest smartphone brand. The market share of Samsung smartphones was 32 percent and 25 percent respectively during the two years, based on the figures published by counterpoint research for the first two quarters of 2020. In the smartphone industry, Apple's market share stayed at 46% for the first quarter of 2020.

However the firm retains the lion's share in the 5G smartphone market in the United States and internationally, according to reports. In the first quarter, its market share in the global 5G mobile market was 34.4 percent. On the other hand, it retained a market share of nearly 94 percent in the United States 5G smartphone market during the same time. The business maintains a leading role in the US market in its other product categories, including televisions.

Future opportunity for Samsung

5g Technology

In the 5G smartphones market, Samsung is already reaping the benefits of becoming a leader. In the 5G mobile segment, it has gained a large market share in the US market. Around 3.4 million 5G smartphone sets were sold in the United States during the first quarter of 2020, which was around 12 percent of all smartphones sold on the market during the time. For Samsung, which is also a manufacturer of 5G equipment, the introduction of 5G has brought additional opportunities. In this field as well, Samsung is off to a good head start. In September 2019, with Verizon wireless communication selecting it as the 5G networking equipment provider, Samsung scored a significant win. It is a five-year partnership involving around $6.6 billion worth of hardware and associated facilities for networking. Aside from being a mega-deal, it could also become Samsung's path to bigger wins outside the US. This will, for example offer payers in Europe the trust needed to accept Samsung's networking equipment. The good news is that this time the company has defeated proven leaders such as Nokia and Ericsson. The contract with Verizon would help the business improve its role as a 5G networking equipment provider.

Growing demand for digital services

In the past few years, the demand for digital services has continued to grow. Nevertheless, due to the coronavirus, the demand for these services was further boosted as a large number of people led lives locked up within their own homes and had to rely on digital services for many items, ranging from ordering vital goods to entertainment. Whether it's e-commerce or entertainment, most people around the globe use their smartphones to use online services. Smartphone demand decreased in the first quarter of 2020, primarily due to the economic downturn that followed the Covid-19 spread. Covid-19, on the other hand, propelled the market for digital content higher across the world, which was evident from the sharp increase in Netflix and Facebook audiences after the spread of the pandemic and lockdowns in different parts of the world. As the situation returns to normal and the level of jobs increases, smartphone sales, including 5G sets, could rise faster, which would be highly lucrative for a smartphone brand like Samsung.

Step-by-step explanation

Marketing Strategies of Samsung

Last and definitely not least, the marketing strategy of Samsung concentrated on developing an advertising campaign to create the brand image of Samsung. It was just as important to the success of a new competitive strategy to revamp their marketing efforts because even the most technically advanced and well-designed goods are likely to struggle unless consumers realize they exist, can easily purchase them, and believe they are worth the money.

Eric Kim was brought in to lead a worldwide marketing campaign. One of his first actions was to re-organize the sales networks of the business to be aligned with the strategic aim of establishing Samsung as a brand of high quality. To begin with, many of the company's items were excluded from the low price retail chains and distribution transferred through big-box electronics stores such as Best Buy and Amazon's online shopping. They also streamlined their roster of advertising agencies from 55 down to one global advertising agency (WPP), which introduced the first brand-building initiative of the company to ensure effective marketing messaging in all markets. They developed a contemporary sense of style using fashion-forward TV advertisements, thus highlighting the technological sophistication of their products as well. To improve the brand, WPP also made use of promotional tools such as product placements, sponsorships, and online ads.

RESULTS OF SAMSUNG'S STRATEGIC MARKETING DECISIONS

A big success was the revised competitive strategy and marketing programs that Samsung developed and introduced. From 2003 to 2008, the global value of Samsung's brand rose by more than 200 percent, and Sony took over as the most valuable consumer electronics brand. As a result, by 2009, unit revenues increased to $119 billion and as of 2018, revenue grew to a whopping $218 billion with the introduction of the Samsung Galaxy. Samsung aims to hit $400 billion in sales, according to the vision statement on its website, thus putting the total brand value of Samsung Electronics among the top 5 worldwide by the end of 2020. In addition, they seem to continue to lean on their strengths, as Samsung continues its commitment to advancing technology and product developments. For example, two of the latest examples of leading innovation coming from Samsung are the release of the Galaxy Z Flip and the Galaxy Fold.

According to the forecast, SAMSUNG should not be affected by short-term opportunities and performance. He also said that instead of focusing on securing fundamental technologies for long-term business, Samsung should. It is confirmed that Samsung will invest $115 billion in its business in the non-memory chip industry to become a leader in this sector by 2030.