The Samsung marketing mix has been at the forefront in making the high-quality brand worthy of gaining the attention of global audiences, capturing a good chunk of market share and becoming a profitable tech company in the world.
Samsung’s marketing mix elements like exemplary marketing strategies, a wide range of product categories and innovative products, pricing strategies and two pricing schemes and distinct sales promotion and digital marketing campaigns are viable reasons why Samsung’s brand which started as a trading company has now become a global electronics powerhouse in the electronic industry.
Table of Contents
An Introduction to Samsung
- Origin Country: South Korea
- Founder: Lee Byung-chul
- Founded: 1969
- Headquarters: Samsung Digital City, South Korea
- Annual Revenue in 2023: 241.60 billion USD
- Brand Value in 2023: 107.284 billion USD
- Market Cap in 2023: 305.10 billion USD
- Company Website: www.samsung.com
The South Korean conglomerate Samsung started its journey as a trading company and with time diversified into several industries. In the 1960s Samsung brand stepped into the consumer electronics industry and that was the turning point for the conglomerate as with time it has become the market leader with a huge market share in the global consumer electronics industry.
The simple trading company has now become a household name in several product categories and transformed into Samsung Electronics Industry.
Samsung Group is the largest business company in South Korea and the 8th largest company in the world based on brand value. Samsung Electronics is the largest IT company, chipmaker and consumer electronics manufacturer in the world, Samsung C&T Corporation is the 36th largest construction company in the world, Samsung Heavy Industries is the 2nd largest shipbuilder and Samsung Engineering is the 13th largest construction company in the world.
Samsung Marketing Strategy & Marketing Mix (4Ps)
Samsung is a manufacturing and distribution company affiliated with several businesses and one of the fastest-growing brands in the world. Samsung’s marketing strategy and marketing mix elements have helped the conglomerate in emerging as a pioneer in the electronics industry.
Let us get an overview of the 4Ps of the Samsung Marketing mix and its different elements like Samsung’s products, place strategy, price schemes and various marketing campaigns.
Product Strategy of Samsung Marketing Mix
The bold marketing mix of Samsung and its marketing strategy puts the focus on creating innovative products in several product categories so that Samsung branded products will make a difference and gain a competitive advantage among the target audience.
Samsung Electronics Industry Co Ltd is the top company in the conglomerate. In the beginning, the company partnered with Sanyo Lab to produce inexpensive microwave ovens and TVs. This did not get them due recognition and the company decided to switch from a low-tier manufacturing brand to a consumer electronics company with superior and high-quality products.
The Samsung marketing strategy from that point onwards changed so that the brand could become a global sensation in the consumer industry based on high-end technologies.
Products in the Samsung Marketing Strategy
The Samsung marketing strategy for Samsung’s products is very unique as it is focused on innovation and technology. Samsung manufacturing company is associated with numerous businesses for example textiles, food processing, retail, securities, home appliances, construction, insurance and chip manufacturing.
The company launches several product categories through its five business groups. Top-selling Samsung products from the trustworthy brand are Samsung television, home appliances and Samsung Smartphones and mobile devices like the Galaxy Series.
The top product categories from Samsung are-
Popular Samsung products in the home appliances product categories include washing machines, cooking appliances, air conditioners, vacuum cleaners, monitors, printers, cameras, dishwashers, refrigerators and speakers etc. In cooking appliances product categories Samsung products include microwaves and convection ovens. Samsung’s products in the air conditioners category include air purifiers and system AC
- SAMSUNG WASHING MACHINES – 6.0 CUBIC-FOOT WV60M9900A FRONT LOAD WASHER
- SAMSUNG ARISE 5-in-1 CONVERTIBLE 1.5 TON 5-STAR INVERTER SPLIT AIR CONDITIONER
- SAMSUNG VACUUM CLEANERS – BESPOKE JET PET
Samsung Television and Smart TV
Samsung’s range of Smart TVs includes motion-controlled Angry Birds and apps ITV Player.
- SAMSUNG PLASMA TV
Mobile Devices and Smartphones
Samsung Electronics Industry Co Ltd is the largest mobile phone and smartphone brand in the world. The top Samsung product of the mobile phones and smartphone brand is the new smartphone “The Samsung Galaxy Series”. Samsung has sold ten million units of the Samsung Galaxy Series of new Samsung smartphones mobile devices within the first 45 days in the United States only.
- SAMSUNG GALAXY S23
Memory and Storage Devices
Samsung products in the memory and storage devices product categories include USB flash drives, pen drives, memory cards, portable SSD and hard drives etc.
- SAMSUNG BAR PLUS – USB FLASH DRIVES
- SAMSUNG 128 GB MICROSDXC MICRO SD CARD
Place Strategy of Samsung’s Marketing Mix
Samsung is one of the leading brands in the world with 80 renowned companies in its portfolio. The conglomerate has its feet firmly in several industries and this has been possible because of Samsung’s marketing mix, its merger and acquisitions policy and Samsung’s marketing strategy.
Products in the marketing mix of Samsung are distributed through a single distribution company in a specific territory where only service dealers are responsible for corporate sales.
Place and Distribution Strategy in the Marketing Mix of Samsung
Place and distribution strategy in the marketing mix of Samsung relies mainly on large retailers, their own website and sales and service dealers. The company has a wide distribution network in place to facilitate quick dispatch. Most retail outlets in the world distribute the products of Samsung Electronics Industry because of high brand value and loyalty in the market.
The distribution channel in the marketing strategy of Samsung includes
Large retailers are responsible for making sure that all high-demand Samsung products especially in the electronics industry like mobile devices, smart TV, air conditioners, home appliances and Samsung smartphones are delivered to the end customers through retail outlets on time.
Sales and Service Dealers
The company launches new products in the market but only service dealers are responsible for corporate sales.
Samsung launches new products in the electronics industry through its own website. Customers can choose product items like home appliances, mobile devices and other Samsung electronics through the single distribution company website as well as the Samsung website. Primary examples are Samsung UK and Samsung India.
Pricing Strategy in the Marketing Mix of Samsung
Samsung Electronics Industry Co Ltd is the highest earner of the Samsung Group as it accounts for a major chunk of the revenues. Samsung marketing strategy puts a lot of focus on price schemes and pricing strategies of the trustworthy brand to maintain its position in the electronics industry.
Pricing strategies are one of the crucial components of marketing and have a direct impact on sales and ultimately profits.
The pricing strategy in the marketing mix of Samsung relies on its retailers and dealers that sell the products to end customers. The company offers lucrative deals to its distributing agents so that they are obliged to promote Samsung products in the consumer market.
Samsung Marketing Mix: Price
The Samsung marketing strategy follows two pricing schemes to boost sales. The company takes the help of offers and discounts to sell Samsung products and also encourages business partners to sell Samsung products to maintain its hold in the market and deal with competitors successfully.
The two price schemes followed under the marketing strategy of Samsung are the Competitive and Skimming Price Strategy
Price Skimming Strategy
The price skimming strategy under the marketing mix of Samsung has taken the brand far and wide in the consumer market, especially for Samsung electronics products. At the onset, Samsung levies premium prices in the market to capture the target audience.
When competitors launch identical products after Samsung launches new products in the market, Samsung starts lowering their product rates through incentives, offers and discounts. The skimming price strategy helps the brand in maintaining its premium position in the market
Competitive Pricing Strategy
To achieve tremendous development and huge success the market leader has laid the groundwork for pricing strategies and price schemes. The Samsung marketing mix and competitive pricing strategy have helped the Samsung brand to thrive elegantly amidst stiff competition in the electronics industry where competitors are ready to take advantage of the high prices of other brands to promote the quality products of their brand at lower rates.
The competitive pricing strategy under the marketing mix of Samsung helps to position the Samsung brand at the top of the industry. Consumers are attracted towards top-quality products like mobile devices, home appliances and Samsung smartphones because of the competitive price strategy which has helped the company record significant profits in recent years.
Promotion Strategy of Samsung
The Samsung promotion strategy is the key component of the marketing mix of Samsung as it increases brand visibility in the market, lures in new customers and helps to maintain the existing customer base. The various tools used for Samsung promotion are as follows-
Samsung uses traditional media to market its products to every part of the world. Ads and commercials are advertised through newspapers, radio, television, posters, billboards, hoardings and magazines etc. It has also taken the help of audio-visual ads through online advertising marketing campaigns to promote its brand products.
Sales Promotions in the Marketing Mix of Samsung
Sales promotions in the marketing mix of Samsung include incentives, discounts, offers and promotional activities to engage successfully with the end customers.
Samsung has used the star power of its brand ambassadors and celebrities like Olivia Ong, Desmond Tan, Priyanka Chopra, Abhinav Bindra and Aamir Khan to gain better visibility in the consumer market. These celebrities often are a part of digital marketing as they also can be seen in commercials for specific products.
Social Media Marketing Strategy of Samsung
The brand uses social media platforms under Samsung’s marketing strategy to keep the company at the forefront. It encourages customers to write and share their experiences with the brand products on social media platforms.
Samsung has social profiles on all the major networks for instance Facebook 162M, Twitter- 12.5M and Instagram – 4.5M. Samsung also uses some of the best available digital marketing practices like quality content and SEO to solve customer issues. YouTube unboxing, product reviews and online ads are also an integral part of the social media marketing strategy of Samsung.
Samsung Digital Strategy – Notable Digital Marketing Campaigns
Growing Up Campaign
The funny and strategic campaign “Growing Up” is a masterpiece that mocks Apple subtly. The campaign was created by Wieden + Kennedy and touches on topics like water resistance and storage space.
#YouMake Campaigns by Samsung offers continuous benefits and services through customer participation and virtual experiences.
# IndiaReadyAction was launched by Samsung in India encouraging millennials to film and share Real-India through the Samsung phone.
#OverToYou is one of the important Samsung campaigns where the brand provided 12 bloggers, YouTubers and athletes with Galaxy S4 so that they could create and share content with their audience.
Key Takeaways of Samsung Marketing Mix
The key takeaways from the marketing strategy of Samsung are
- Using the Samsung marketing mix to position the brand favourably in the consumer market
- Focusing on innovation and the latest technologies for product creation
- Maintaining existing and targeting potential customer base through pricing strategies
- Top-notch marketing planning to boost brand visibility
Liked this post? Check out the complete series on Marketing Mix