COMPARATIVE ANALYSIS OF INTEGRATED MARKETING COMMUNICATIONS MIX STRATEGY FOR LAPTOP MANUFACTURERS APPLE VS SAMSUNG

TABLE OF CONTENTS

EXECUTIVE SUMMARY
A laptop is something that is portable and small enough to sit on a persons lap (webopedia, 2008). Personal computer industry dates back 1970s, the first commercial portable computer obsorne 1 was available in 1981 and the advent of laptops dates back 1995 after which Microsoft and Intel became the standard software to be used in laptops1. Post advent of laptops the industry took a leap to new era and then began an era of technology. At the beginning of laptop era we could notice limited players like Lenovo, Dell, Apple, IBM to name a few; however invention of technology, change in consumer preference and industry attractiveness brought in other players like Samsung, HCL, Toshiba, AUSUS and Acer. Data monitor (2012) forecast that global PC industry will grow at a compound annual growth rate (CAGR) of 10-13% in market value during 2012-13. Today the industry is highly competitive with competition internally as well as externally. The internal threat is majorly from apple computers that are technology leaders as well as sharp in their market move, external competition is from introduction of smart phones, tablets and mobile internet starting to compete with laptops due to features such as gaming, internet access, and enterprise application. Amidst tough competition, apple inc. is continuously reinventing on all market fronts thereby trying to retain their market position. What matters in the current competitive scenario is how we as a Samsung could gain advantage in the marketplace by clear differentiation, sharp communication and top of mind positioning. Being a Brand manager of Samsung mobile, my responsibility is to analyze existing marketing communication mix used by apple inc. and recommend specific strategies Samsung can adopt to increase market competitiveness. Through this report I have made an attempt to identify apple inc. moves and suggest the future moves for Samsung

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INTRODUCTION
Apple Inc. Apple inc. today is the manufacturer of the finest laptops, I-pads, I-pods and I-phone. The technology used is considered of a world class stature and is the leader in designing and developing technology across globe. The company enjoys huge brand loyalty and has created a brand that carries huge brand equity. World-wide market share for Macs stood at 4.5% wherein apple laptops have 27% market share in the US market. The report indicates that HP is the market leader with total 17.2% market share in 2012 followed by Acer, Dell, Lenovo and ASUS2 (Gartner, 2012). Tim Cook, CEO, Apple quoted that the retina display Macbook has good tremendous response and have seen company taken the number one position in laptop share in the US.3 MacBook air shipments are expected to total 8.4 million devices in 20124 (Statista, 2012) For several years apple product strategy involved creating innovative products and services aligned with a digital hub strategy, whereby apple products function as digital devices, including I-pod, I-pads and I-phones. Recently apple is offering harmonized and synchronized and integrated solution using I-cloud as a hub. The core competency of apple is delivering exceptional experience through superb user interface. This strategy is based around all apple products, playing a key role in the process. Apple uses branding strategy based on emotions. The strategy is about lifestyle, imagination, innovation, passion hopes, dreams, aspiration and power to people through technology. It is about creating simplicity in peoples life and removal of complexity driven by product design and being a real humanistic company with heartfelt connection with customers. From brand architecture viewpoint, apple maintains monolithic brand identity everything being associated with the apple name. Mac laptop is the finest creation and is separate from the world of window & Intel. Linux being the operating system is the safe from virus attack because majority of the virus programmes are made for windows. Mac systems are being considered best for viewing color because they show the same result during prints. Samsung Samsung is most diversified conglomerates in the world wherein Samsung notebook is ranked the No.1 in South Korea, and has broad presence all over the globe. Samsung is worlds leader in memory chip maker. Recently has intensified its move across all categories wherein it has become market leader in mobile segment by beating Nokia, this is in developing country like India. Also the recent stiff between Samsung and Apple inc. in US markets draws an example of Samsung capability and ability to penetrate as well as head the market. As quoted by Seongwoo Nam, general manager, Samsung the netbooks and notebooks PC are growth
2 3

http://www.appleoutsider.de/2012/04/27/q12012-pc-vendor-marketshare/ http://www.mactech.com/2012/09/12/apple-laptops-have-27-market-share-us 4 http://www.statista.com/statistics/214773/ultrabook-share-of-global-notebook-market-since-2011/

engine for our IT business5. According to Yonhap news, Samsung shipped a total of 14 million notebooks in 2011.6 Samsung strategy is primarily price focused and largely concentrated on affordable notebooks with superior design. Samsung series 9 laptops surprised everyone with its thin form factor and sleek curves. The series was first in line to Apple MacBook and an ultrabook before Intel even invented them. This is made possible because Samsung owns everything into the supply chain that gave more control of supply chain and allowed them to be faster and responsive with product launches. Innovation is at the heart of the Samsung wherein there is continuous new product launches in the market place. For any new company, while entering into new market, there are two ways to stimulate growth i.e. by intensive campaign and unique product offerings with unique functions (Ramaswamy, 2008). Samsung have explore both i.e. introduced its leading innovation on continuous basis as well as strengthen the community. Samsung always pays to reduce lead time in the market place because it believes that being late in the business means business is over. Samsung as a brand today resembles to premium brand that elicits exceptional pride for owing the products. This is through their commitment to innovative customer focused marketing

http://www.livemint.com/Industry/TUesBo2b3dHumrY0rWX8MP/Samsung-eyes-big-name-in-laptop-PCmarket.html 6 http://news.softpedia.com/news/Samsung-Snatches-Seventh-Place-on-Worldwide-Laptop-Market-242185.shtml

LITERATURE REVIEW
Todays ever changing culture combines with social networks, empowered customers and intense competition, companies need to be prepared for holistic thinking and marketing communication strategy. With increase in global competition and technological advances, it has become very critical for business to make long lasting impact on target audience and in the market. The concept of integrated marketing communication is one powerful tool that helps to make impact in the market place. The concept of IMC become well known during 1990s and is largely used in recent years. Integration is not a dreamland of endless possibilities with revolutionary marketing results. Its an on-going process made up of many discrete but valuable steps, each contributing to the greater cause (Eldridge, 2007) The need to strive for a greater integration is considered inevitable by many, although the means by which such integration may be achieved is uncertain (Eldrige, 1999) IMC is the strategic analysis, choice, implementation and control of all elements of marketing communications which efficiently, economically and effectively influence transactions between organization and potential customer. (Smith, 1999) American association of advertising defines IMC as concept that recognize the added value of a comprehensive plan that evaluates the strategic role of a variety of communication disciplines, and combines these disciplines to provide clarity, consistency and maximum communication impact Thus integrated marketing communication is integration of marketing tools, approaches and resources which maximizes impact on consumer mind and which results into maximum profit at minimum cost. As a concept it integrates all marketing related aspects so that they work in harmony and then trigger so that it has powerful impact on the audience. According to Don Schultz, Integrated marketing communication is a new way of looking at the whole, where once we saw parts such as advertising, public relations, sales promotion, purchasing, employee communications and so forth. It is realigning communication to look at it the way the customer sees it as a flow of information from indistinguishable sources. Duncan and Everett defines IMC as, strategic coordination of all messages and media used by an organization to influence perceived value IMC is the combined total effort by the company to inform, persuade or remind customers directly or indirectly about the brands, products of the company. Integrated marketing communication is carried out by company using following 6 modes of communication: Advertising: Sales promotion: Paid communication through mass media Short term incentive to encourage trial purchase

Events & experience: Sponsored events or activities

Public relation: Direct marketing:

Designed to protect image and reputation communicating individual customer, one to one distance communication by mail, telephone, internet Face-to face interaction with one or more prospective customer

Personal selling:

There are two critical factors, first, strategic combination or mix of the basic elements and second factor is consistency of the theme across all elements in the campaign. The research compiled by U.S. Department of commerce, the American Management Association, and the Direct Marketing association reiterates following facts: Average stand alone direct mail campaign generates 3.3% response rate One basic marketing element added to stand alone direct mail campaign, response rate increases to 5.4% Two basic marketing elements added to stand alone direct mail campaign, response rate increases to 6.7% Three basic marketing elements added to stand alone direct mail campaign, response rate increases to 6.9%

Thus Integrated Marketing communication is a process that manages all of companys or brand interaction with customer and key stakeholders. Its premise is that everything a company does, and sometimes what it doesnt do, send a message.

CRITICAL ANALYSIS & DISCUSSION Marketing mix is the mixture of several ideas and plans followed by a marketing representative to promote a particular product or brand is called marketing mix (Neil Borden, 1953) Following are the elements of marketing mix: Product Price Place Promotion

Let us evaluate Apple laptops & Samsung laptops on the basis of their marketing mix: Apple:
Product: Apple Laptop product range include MacBook Air, MacBook Pro, Mac mini, iMac, Mac Pro, OS X Mountain Lion. Price: the price ranges from $999 - $2499 Promotion: Apple is highly active in its promotional endeavors. Its logo has become most recognizable symbol. Apple uses two methods of promotional strategies towards its target audience. The first one is by heavily advertising on television network, technology magazine and internet. The second promotional tool apple uses is personal selling. Apple stores are home to many young sales representative that are trained in product information and customer service. Place: Apple heavily depends on the network of its Apple stores which sells all range of MacBooks

Samsung: Product: Samsung has categorically segregated its laptop range based on its features. They are as below: Essential: these are reliable, sturdy & powerful notebooks Ultra portable: these are the thinnest laptops from Samsung High performance: these are designed for ultimate processing i.e. videos, images etc Business: these laptops are designed for specially business purpose Net-book: low priced, value for money range

Price: The price ranges from $500 - $1800

Promotion: Samsung promotion strategy is the create push as well as pull. Pull is created by advertising laptop range on television and internet whereas push is created by discount offers and trade scheme. Place: Samsung has recently focused on developing Samsung stores thereby selling only Samsung products; however, major focus remains on dealer based distribution strategy

The above analysis of marketing mix concludes that Apple majorly focuses on technology driven strategy whereas Samsung focuses on price driven strategy

Slogans & marketing message used by Apple Mac: Performance and design taken right to the edge Way more power. Way same size. Now up to twice as fast The lightweight notebook thats anything but a light weight Over 4 million pixels. Under 1.7 Kilos. Its impressive by any measure

Slogans & marketing message used by Apple Mac:

Double celebration: Buy a Samsung Laptop and get 2 Assured offers (Oct 15 Dec 31, 12)