Consumer Behaviour Insight Analyst: A Case Study Essay On Samsung Smartphones.

In the role of  ‘Consumer Behaviour Insight Analyst’,you will undertake a case study analysis of your chosen organisation's marketing strategy drawing on your knowledge and understanding of the consumer behaviour concepts and theories covered throughout the course. You will present your analysis, findings and recommendations in report form to the CMO of the organisation.  However, as I will be marking the case study and will not have full knowledge of your topic, please provide examples to support your discussion.  These may be images of brands/products or information/screen shots from relevant articles or websites.  In the case of images or screen shots, these should be inserted into your word document, and your discussion should refer to the image. 

Please provide:

Demonstrates sophisticated and insightful understanding of problems/issues; and presents a balanced, indepth and critical assessment of the main problem/s or issue/s in the case. Arguments and reasoning are clearly articulated and highly persuasive.

Demonstrates deep understanding of the problems/issues; presents a balanced and critical assessment of the main problem/s or issue/s in the case;  arguments and reasoning are generally effective, and persuasive.

Demonstrates capable understanding of problems/issues, but could offer more; presents an acceptable assessment of problem/s or issue/s in the case; arguments and reasoning may be inconsistent and/or tend to lack focus.

Attempts to understand problems/issues; attempts to present an assessment of problem/s or issue/s in the case; reasoning may be unclear and/or poorly expressed.

Explore relevant media stories and industry sources Body of case study   (I haven’t used any of the marketing theory and analyse the marketing strategy of the organization, problems must be solved or reason for success )

Using the theoretical knowledge you have gained throughout the course as a reference point, analyse the marketing strategy of the organisation.  Remember, as you are taking a consumer behaviour perspective, your consumer insight analysis may identify problems must be solved and/or challenges the future and/or reasons for success.  

The purpose of this case study is to analyse the consumer behaviour specific to Samsung smart phone market. For this case study, we will discuss about the consumer behaviours that affect the smart phone industry. The report begins with the information about the history and growth of Samsung Electronics Industry Co Ltd followed by the background of the company. The background of the company discusses about the major target audience of the Samsung industry specific to mobile phones, industry and the competitors and the emerging trends in the industry. It later moves and to the consumer behaviour analysis, reason for Samsung’s success and recommendation. The case study concludes with the professional reflection.

History

Samsung Electronics Industry Co Ltd was established in the year 1969 in Suwon, South Korea as Samsung-Sanyo Electronics. They began as a home electronics business and quickly became a major manufacturer in the Korean market. Despite the 1977 financial crisis, Samsung Electronics was one of the very few Korean companies that continued growing. Samsung has now been recognised as an industrial leader in technology and now ranked as top 10 global brand (Samsung, n.d.)

The mobile phone technology first began in 1983 by Motorola when they launched a cellular portable phone for commercial purposes. The first ever smartphone was created by IBM called the Simon Personal Communicator with the functions of a cell phone and PDA (Twedie, 2015)  

In 2002, Nokia and Motorola shared over 50% of the mobile market. The industry has a lot of competitors such as Sony, HTC, Xiaomi, Huwaei, Nokia, Apple to name a few. Samsung surpassed all the brands as now has the largest market share in the world in terms of number of units sold.

Target audience

Samsung targets a rage of age groups from seniors to centennials by providing them with products usable on a daily basis as well as products for industrial purpose. Unlike Apple, Samsung target audience expand from young generation to consumers with lower salaries (Manoa, 2014).  

Current and emerging trends

In order to be competitive, smartphone industry has to adopt to the constantly emerging trends and consumer requirements and embrace advanced technology.  Currently most of the consumers see for smartphones with good cameras, fast processors, good memory, durable battery life and sleek body. Smartphones now are definitive gadgets that combine the features of a TV, Camera, gaming systems, video player, mp3, instant messaging services etc. The smartphone industry is extremely dynamic even though the market is in the hands of very few players.

1. Social Influence:

Target audience

Different products are perceived to be appropriate to specific social classes by customers. Phone is necessity, but is more of a luxury product that customers hold. They prefer latest models and top most brand depicting a form of status consumption. Most of the consumers highly depend on their social circle in order to purchase a smartphone (Castaldi, Addeo, Massaro, & Mazzoni, 2011).

2. Consumer Diversity:

The Samsung smartphones are targeted for both female and male customers aged between 14 to 55. The primary purpose of the different age groups differs.

3. Physiographic factors (values and lifestyle)

The younger group of customers see smartphones as an entertainment device that includes features like video games, social media platforms such as Facebook, Instagram for networking. This category of customers generally does not mind paying extra to keep themselves entertained (Garg, 2013).

Samsung holds the major share of the work market in smartphone industry in terms of number of units sold. However, in April 2018, Apple had a market share of 53.9 percent, while Samsung had a market share of 22.27 percent. Samsung has to understand the consumer behaviour specifically in Australia and analyse the consumer behaviour trends to increase their share in the Aussie market by providing advantages that will allow the customers to try a product different from their devoted brand (Jones & Lee, 2006). They should also invest in brand loyalty to retain the past and current consumers. Samsung partnered with Google for their android and play store while its rival group has its own operating system. Samsung must constantly work on both software and hardware to gain a competitive advantage in the market (Choi, Kim, & Yoon, 2014).

However, Samsung grew such a high share on the smartphone market by offering the customers products with exceeding features and quality at affordable prices when compared to its competitor Apple. Samsung is now focusing on improving the design to compete with iPhone’s elegance and casing (Lee & Lee, 2004). They are also focusing on features such as adaptability, Camera, battery life, memory storage and other characteristics that customers are looking for. They are surpassing all the expectations of the customers to satisfy their requirements (Akim & Tielung, 2014).

Marketing Concept

Social identity theory states that the people define self-concept with the help of connection with the social groups. The social identity theory can be utilised in the marketing of Samsung mobile that can help the company in the aspect of organizational identification. The marketing of Samsung mobile lays stress on interacting with the customers so that they can identify with the brand. It can be said that stress is laid on collective or public self that refers to self within the collective. The social identity theory of Samsung mobile for creation of a healthy brand that can put the company at an advantageous position. Perceived value acts as a significant predictor in relation to brand loyalty. The human beings in the society undergo changes with the help of interaction with other people (Menon et al., 2015). The identity of a person does not develop in vacuum but it occurs with the help of interaction with societal members. The individuals in the society can be said to be members of various groups based on gender, race and skill sets (Solomon et al., 2014).The marketing concept that is used by Samsung mobile in their marketing approach is that the possession of the smart phone will help in raising the self-esteem of the people in the society. The marketing concept employed by Samsung mobile acts as a positive reinforcement for the individuals in the society. Samsung Smartphone can raise the status of the people having it and this is made use of by the company for selling the brand in the market.

Current and emerging trends

Justification

The modern age is advertisement-driven where the behaviour of the individuals is regulated with the help of inter-personal relationships. Advertisements help in marketing lifestyle to the consumers. The social identity approach of marketing of Samsung mobile is aimed at increasing self-esteem of the people. Advertisements helps in targeting members belonging to a particular group (Baker, 2014). Self-identity of an individual can develop in response to the other members of a group to which the individual belongs. The individuals in the society adopt the behaviour so that they can become members of a significant group. The marketing of Samsung smartphone affects the identity of an individual along with the group. Marketing employed by Samsung smart phone can change the self-concept of the individuals belonging to a particular group. The marketing of Samsung smartphone provides opportunity to the people in deciding whether they want to identify with that of a particular group. The members present in an organization can define them in relation to one-ness with the organization (Armstrong et al., 2015). The members of a specific community can engage in particular behaviours on that of a collective basis owing to their attachment to the particular brand. The marketing of Samsung smart phone can help the individual consumers in modifying self-identity and they can make use of brand for defining themselves.

Marketing Strategy

Samsung has brought into the Australian market Samsung Galaxy Series smartphones along with tablets that has helped in broadening the consumer base. Samsung smartphone makes use of innovation that has helped it in bringing many galaxy products within the market like Note, Y, S and the tab series.

Samsung makes use of skimming price for gaining upper hand over that of the competitors. The smartphones of Samsung are the best within the market and they are market leader from the point of view of the features that are provided by them. Samsung smartphone uses skimming price that helps them in getting high value in relation to the competitors (Lusch & Vargo, 2014). In the event of any Samsung model becoming old or competitor launching a similar product Samsung in Australia drops prices that helps them in catering to a large number of consumers within Australia.

  Samsung makes use of channel marketing in Australia that makes the service dealers in Australia to take into account the aspect of corporate sales. The retailers in Australia include Samsung within the list that helps them in reaching out to a large number of consumers in Australia. Samsung smartphone in Australia has three segments in relation to channel marketing that is sales, distributors along with service dealers. Service dealers of Samsung handle the main accounts and they deal with corporate sales. The dealers are instrumental in opening exclusive Samsung showroom in Australia. Samsung is branded product and the retailers keep Samsung like an alternative for the customers.

Marketing Concept

  Samsung makes use of promotional tactics in Australia that attracts the customers for buying the smartphone. Samsung makes use of discounts, sponsors, events and festivals for engaging with the consumers in Australia. Samsung takes recourse to strong tactics for pushing product to consumer with the help of sales promotion. Samsung smart phone provides discounts to the trade partners that motivates them in selling Samsung above the competition. Samsung Australia makes use of push along with pull strategy so that it can cater to the needs of the customers (Menon et al., 2015). Print along with media advertising can be used by Samsung Australia that can help them in drawing the attention of a large number of consumers in Australia. Samsung smartphones in Australia makes use of sales promotions for gaining attention of people in Australia.

Samsung makes use of new ideas so that it can stay customer-focussed that helps it in the creation of a strong brand image. Samsung provides smartphones of the best quality that helps in meeting the expectation of the customers. Samsung indulges itself in redesigning and it introduces new series in relation to the products as a marketing strategy. They design slim phones that cater to the taste of the modern day consumer (Armstrong et al., 2015). Samsung is not instrumental in targeting any particular segment of market but mainly serves high-end people in the society like business people along with the young adults. The marketing strategy of Samsung includes public relations and direct marketing that helps the common people in Australia in knowing about the exclusive features in relation to Samsung mobile. There are R & D centres in Australia that helps in developing the brand of Samsung.

Recommendations

The evolution of technology has made it necessary that companies should make use of it so that it can thrive within the industry of consumer electronics. Samsung can use social media that can help it in maintaining relationship with the consumers. The online presence can help the consumers in gathering unique information about the smartphones of Samsung that can help it increasing the profit of the company. The company can partner with the network carriers in the other countries that can help in the aspect of distribution of the products of Samsung. Samsung should offer discount to the trade partners that can provide them with motivation in relation to distribution of the smartphones of Samsung. This can help the consumers in buyig the product at a cheaper price.

Justification

The aspects of marketing a product have evolved through an arduous process spanning decades involving understanding the consumer behaviour and assessing their choice. Prior to my engagement with the learnings of this course I had always analysed the market through a restricted means. But by gaining more insight into the various influencing factors over the decision-making process of consumers, I have become more aware. The nature of human beings is highly based on their social spheres and interactions that occur frequently. The market research undertaken by brands globally have common grounds that are conducted keeping the consumer at the core. The individual decision making of any consumer can have far reaching effects on the global market and a have a turning tide effect on the value of products and brands.

References

Samsung. (n.d.). About us. Retrieved from:  https://www.samsung.com/au/aboutsamsung/company/history/

Suki, N. M., & Suki, N. M. (2013). Dependency on Smartphones: An Analysis of Structural  Equation Modelling. Journal of Technology, 62(1), 49-55

Akim, L. L., & Tielung, M. (2014). COMPARISON ANALYSIS OF CONSUMER  PERCEPTION BETWEEN I-PHONE 5S AND SAMSUNG GALAXY S5.  Retrieved 10 4, 2018, from:  https://ejournal.unsrat.ac.id/index.php/emba/article/download/5774/5307

Castaldi, L., Addeo, F., Massaro, M. R., & Mazzoni, C. (2011). A Consumer Perspective on  Mobile Market Evolution. Retrieved 10 4, 2018, from:  https://cdn.intechweb.org/pdfs/24901.pdf

Choi, J.-H., Kim, B.-J., & Yoon, S.-K. (2014). UX and Strategic Management: A Case Study  of Smartphone (Apple vs. Samsung) and Search Engine (Google vs. Naver) Industry.  Retrieved 10 4, 2018, from: https://link.springer.com/chapter/10.1007/978-3-319- 07293-7_68

Garg, N. (2013). Apple v. Samsung: Design Protection and Consumers. Retrieved 10 4, 2018, from: https://digitalcommons.pace.edu/cgi/viewcontent.cgi?article=1021&context=pipself

Jones, T., & Lee, D. (2006). Samsung, Others Adopting Value Innovation. Research- technology Management, 49(5), 5. Retrieved 10 4, 2018, from: https://questia.com/library/journal/1g1-151549081/samsung-others-adopting-value- innovation

Lee, S.-J., & Lee, B.-Y. (2004). Case Study of Samsung's Mobile Phone Business. Retrieved 10 4, 2018, from: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=556923

Manoa, G. G. (2014). INFLUENCE OF SAMSUNG MARKETING TOOLS TO SMARTPHONE PURCHASE INTENTION OF MANADO YOUTH PEOPLE. Retrieved 10 4, 2018, from: https://neliti.com/publications/2407/influence-of- samsung-marketing-tools-to-smartphone-purchase-intention-of-manado

Menon, A., Bharadwaj, S. G., Adidam, P. T., & Edison, S. W. (2015). Effective Marketing Strategy-Making: Antecedents and Consequences. In Proceedings of the 1997 Academy of Marketing Science (AMS) Annual Conference (pp. 224-224). Springer, Cham.

Solomon, M. R., Dahl, D. W., White, K., Zaichkowsky, J. L., & Polegato, R. (2014). Consumer behavior: Buying, having, and being (Vol. 10). London: Pearson.

Baker, M. J. (2014). Marketing strategy and management. Macmillan International Higher Education.

Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction.

Lusch, R. F., & Vargo, S. L. (2014). The service-dominant logic of marketing: Dialog, debate, and directions. Routledge.

Twedie, S. (2015, June 14). The world's first smartphone, Simon, was created 15 years before  the iPhone. Business Insider. Retrieved from:  https://www.businessinsider.com.au/worlds-first-smartphone-simon-launched-before-  iphone-2015-6?r=US&IR=T