CONTENTS

Company Mission Statement and Background

Samsung Mobile Technology and Android
Augmenting Products
Market Segment and Target Market
Differentiation and Product Positioning
The Advertising Campaign
Social Media Marketing
The Samsung Retail Shops
Marketing Campaign Effectiveness 7Ps
Recommendations

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CASE STUDY: Samsung Galaxy Marketing Campaign

Company Mission Statement and Background
As of 2013, the Samsung Group is a South Korean company with 369,000
employees and pulling in an annual revenue of US$247.5 trillion. Samsung based
its operations and business philosophy on the following mission statement:
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Strong desire of growth and constant innovation.

Creating, providing, and maintaining high quality products.
Providing new and innovative and potential revealing experience to
customers.

Their core competencies, which guided their strengths in the technology industry
in general, are as follows:

Conceptual and Technical consumer assistance

Innovation(Creation of highly differentiated products and innovative

solutions)
Commercial
Operations
Research and Development

Samsungs longterm view, as stated in their slogan that not many know about,
is, Inspire the World, Create the Future.
Just ten years ago, the mobile industry was lead by the now submerged Nokia
and Motorola. Samsung was significantly low in profile, and carried lower cost
products. However, in less than ten years, the Samsung Group have become one
of the most innovative in companies in the world. Their involvement with Google
has also made them one of the most controversial companies in the mobile
industry. The rules of the digital are being re-written as the innovations of
Samsungs products demands new approaches to business operations. Its
marketing strategies that have been implemented are as innovative as its
products, especially when it involves the direct competition with fierce
competitor, Apple, among others.
The Samsung success story, as described in their website, began when the
Samsung mobile group met with the Global Strategy Group to develop a short to
mid-term strategic plan for the smartphone category. Four Global Strategists
worked with twelve Korean collages in a task force environment to develop
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recommendations that covered strategic areas, such as the operating system,

the user interface, and the ecosystem around the smartphone. The team flew to
major markets to meet with external partners and conducted internal interviews
to identify key success factors in the segment. The results of the project were
presented to the head of Samsung Mobile and its senior management. And
history was made...and still being written.
One of the most sought after products of the 21 st century thus far is the Samsung
Galaxy product line. This case study covers the Marketing Campaign that have
been implemented for the companys Galaxy products, but with focus on their
flagship smartphones Galaxy SIII, Galaxy SIV, Galaxy Note, Galaxy Note II, and
their latest flagship, the Galaxy Note III.
Samsung Mobile Technology and Android
When Samsung first started in the smartphone business, they integrated their inhouse operating system called Bada. Samsung Mobile was doing fairly well in
consumer acceptance and sales for Bada devices. However, they skyrocketed
when they incorporated Android, Googles premier open-source mobile operating
system, into their flagship devices, starting with the Samsung Galaxy S.
Augmenting Products
Due to their success with their first Android device, Samsung have been placing
focus on its Galaxy line as their main commercial mobile product. In addition to
the Galaxy line, Samsung has even stretched its Galaxy name to other nonphone devices that work as an extension to the smartphones. The images below
are examples, the Samsung Galaxy Gear and the Galaxy Camera.

Samsung Galaxy Camera

Samsung Galaxy Gear

Market Segment and Target Market

The company targets three general categories of consumers and they are as
follows:

Young people of 18 to 30
Professionals
New Geek

The targeted group are able to buy the Galaxy products mainly in licensed
mobile phone dealers, but are directly controlled in mobile service provider
shops, electronics retailers, household equipment shops and, especially, the
Samsung retailers.
Differentiation and Product Positioning
The differentiation of Samsung has been very much focused on its products. The
design of the Galaxy series have a professional and corporate look, with
sophisticated colours, such as grey, dark blue, and white, with accents of silver
or gold, often appealing to the professional and consumers who care for image
and status. The design of the OS, although its based on Googles Android,
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Samsung added a second skin on the overall interface, making it bright,

presumably to look appealing to the younger and more active crowd. Below are
pictures of the Galaxy Note III, which design is also incorporated unto other
devices in the Galaxy roundup.

Classy black and gold Galaxy Note III

Bright and

colourful interface

In addition to the design, Touchwiz, Samsungs version of the Android operating

system and interface, also adds numerous functionalities and capabilities that far
exceed other devices made by Sony Ericson, HTC and Apple; although whether or
not it is useful to users is arguable.
Overall, the design of the hardware, the interface and functionality are clear
indicators of the devices differentiation strategy and product positioning.
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The Advertising Campaign

1. TV Commercials
As the Samsung Galaxy phone line started to gain popularity, Samsung
heavily marketed their products through heavily budgeted and diverse
television commercials. Their more memorable commercials are directly
competing with Apple, which some disagree with, morally, as it stupefies
Apple iPhone users. Below are print screens of one of the commercials
directing as Apple and its users.

Can your iPhone do this?..

Another approach uses humour, human attraction and other emotions in
developing its brand and positioning. Below is a picture showing how a Galaxy
phone can help in romance.

2. Print Media
Print advertisements also have its version of the television commercials.
However, other forms of print advertisements used to attract consumers
are through the use of celebrities, such as the one below with football star,
David Bekham. This approach is quite typical and is used throughout the
entire Galaxy line because it works.

David Beckam uses the Samsung Galaxy SIII

Social Media Marketing
Samsung heavily uses Facebook and Twitter for the teases and launches of
Galaxy products. It had been reported that US$129 million in sales of their
Galaxy smartphones were attributed to Facebook alone. Samsung made

Facebook a key part of the Samsung Galaxy SIV and, consequently, their Galaxy
Note III launch campaign in 2013. Their justifications for using Facebook were as
stated to be as follows:

Drive mass awareness of the high-end, Android touch-screen-based

smartphone.
Increase brand favourability and purchase consideration for the new

device.
Encourage fans to help spread the word about the new phone to their
friends.

Samsung Mobile uses Facebook as the digital hub of its integrated campaign.
They invested a reported 30% of its total digital spending on the Facebook
platform. Samsung leveraged the millions of fans who liked the Samsung
Mobile Facebook page to build broad awareness of the new Galaxy SIV and Note
III among more than 588 million friends.
The Samsung Retail Shops
Demonstration and exploration of new technology is essential for any product
that is intended to exist in the same commercial arena as products ranges
developed by Apple, which learning curve are said to be extremely simple, yet
unsurpassed capabilities.
Therefore, arguably in the footsteps of Apple, Samsung opened literally hundreds
of exclusive boutique retailers across the globe for prospective customers to try
their range of smartphones and other devices, in which the Galaxy line is placed
as their main feature product of the shop outlet, as shown in the picture below.

Samsung Retailer
In some countries, Samsung would go as far as opening a shoe shining kiosk to
have customers try the latest Galaxy line. Pictured below is someone trying out
the Galaxy Note III, the latest Samsung flagship device, while having his shoe
polished. It is a unique promotional approach, although indeed interesting.

Try a Galaxy Note III and have your shoe shined

Marketing Campaign Effectiveness 7Ps
This section analyses the effectiveness of Samsung Marketing campaigns and
approaches from the perspective of the 7 Ps.

1. Price
The price for the flagship devices, Galaxy SIII, SIV, Note II, and Note III,
started at RM2200 at launch. It is observed that, for Android phones, HTC,
Sony and LG puts its prices around the price stated by Samsung.
Seemingly, Samsung would price a flagship product; this would then be
used as a pricing benchmark for other Android brands. However,
Samsungs prices are very much more competitive when compared to
Apples iPhones, which in 2014, start at RM2399 up to RM3199.
Additionally, when bundled with a contract, the prices for the Samsung
Galaxy line, are much more affordable. This contributes to the popularity
of Samsung Galaxy phones over iPhones.
2. Product
As discussed in the Differentiation and Product Positioning section, the
design and interface of the Galaxy devices are directly related to the
image of professionals, exclusivity, and also for the young and vibrant.
Also, Samsung makes certain that it cannot be beaten in functionality and
capabilities, regardless of it usability.
3. Promotion
Referring back to the discussion in the Advertising Campaigns section of
this assignment, its promotional material covers aspects of human
emotions, such as humour, status, and even romance, to make Samsung
products memorable and attractive. Also, the typical use of celebrity
endorsements continues in the Galaxy products.
4. Place

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In terms of its distribution methods, the products are well-centred in the

retail shops in attracting mall goers; not to mention Samsung kiosk that
lets customers test Galaxy devices while having their shoes shined.
5. People
The reason for having a retail shop at every mall is not only to showcase
the Galaxy line, but to have a direct method for customers to buy and fix
the products should something go wrong with the device. This creates the
feeling of confidence in people, which level of trust contributes to its
companys success.
6. Process
Many mobile companies suffer from inadequate supply to meet customer
demands, even Apple. This inevitably causes customers to lose confidence
in the companys processes and manufacturing methods. Samsung holds
reputation to release their products to most parts of the world in a very
short time, and are able to maintain stock. This shows that their
manufacturing strategies are efficient and its processes are intact.
7. Physical environment
This reiterates the discussions on its retail presence and its ability to
directly manage problems experienced by customers, so as to maintain
their confidence in the Galaxy products. As can be seen in the previous
image of a Samsung retail shop, the environment is inviting and there are
always people to assist customers.
Recommendations
Below are some recommendations based on this case study:
1. Samsung should further analyse the users needs to better design a more
usable device. This is because too many functions may be wasteful in
terms of storage space and it slows down the device. This way, the

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devices do not have to be cluttered with useless functions and lack

storage space for users.
2. The design of the products should change, rather than keeping with
essentially the same as previous models both Galaxy SIII and Galaxy SIV,
Galaxy Note to Galaxy Note 3 look very much alike in hardware design.
3. Even though the prices are quite competitive, many users feel it does not
justify the high end prices because it uses an open source mobile
operating system by Google, and it is essentially made of plastic, unlike
ones by competitors, such as Apple and HTC, which makes many of their
flagship models in high grade aluminium and metals.

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