8468 TaLeNgocLinh 2611 docx Ministry of Finance University of Finance – Marketing ☞
Trang 1Ministry of Finance University of Finance – Marketing
Essay on groupANALYSIS OF MARKETING
STRATEGY OF SAMSUNG GALAXY S
Trang 2Ho Chi Minh City, 2021
Trang 4IMAGE CATALOG
Image 1.1: Logo of Samsung Group
Image 1.2: Samsung Electronics Vietnam Factory Thai Nguyen
Image 1.3: Profits of samsung factories in Vietnam
Image 1.4: Revenue of samsung factories in Vietnam
Image 2.1: Viet Hung Bao Bi Ltd one of Samsung's first and most well-known providers of carton packaging and paper pallets.
Image 2.2: Cellphone Store
Image 2.1: the number of users of the top 15 countries
Image 3.1: The percentage between men and women who expect Samsung or Iphone Image: 3.2: Versions of Galaxy S21+ 5G
Image 4.1: Diagram of Samsung phone distribution
Image 4.2: Currently, Samsung has up to 7 experience stores
Image 4.3: Sponsor sporting events
Image 4.4: Sponsor the 360mobi Championship Season 2 – 2019
Image 4.5:On November 24, Mr Choi Joo Ho, General Director of Samsung
Vietnam, presented scholarships to students
Trang 7TABLE OF CONTENTS
Trang 81 OVERVIEW OF THE SAMSUNG GROUP
1.1 The formation and development process
Overview of Samsung Group Samsung Group is one of the largest tradinggroups in Korea, started as a small export business in Taegu in 1938, founded byLee Byung-chul, and has grown rapidly Samsung Group is a diversified businessgroup in Korea, including Samsung Electronics and Samsung Insurance Currently,Samsung is one of the world's leading suppliers in many fields such as TV screens,mobile phones, electronic components and many other high-tech industrial
products Today's products and processes Samsung's cutting-edge, top-qualityprocess is recognized worldwide The company has been and will be expanding itsproduct seriess and markets, increasing its profitability and market share, and
pursuing its mission of helping to build better lives for customers around the world
In the business fields, Samsung Group has been focusing on the electronics
industry Therefore, when it comes to Samsung, one cannot fail to mention Samsungelectronics company Samsung Electronics, Samsung electronics company, founded
in 1969, is the largest division of Samsung Group, and is one of the leading
companies largest electronics company in the world
Image 1.1: Logo of Samsung Group
❖ Other well-known Samsung subsidiaries:
- Samsung Electronics (largest electronics - high-tech company in the world byrevenue, and 4th largest in the world by market value in 2012)
Trang 9- Samsung Heavy Industries (2nd largest shipbuilding company in the world,second only to Hyundai Heavy Industry)
- Samsung Engineering and Samsung C&T (construction firms ranked 12th and36th in the world, respectively)
❖ Other significant subsidiaries:
- Samsung Life Insurance (the world's 14th largest insurance business)
- Samsung Everland (managing Everland Resort, Korea's oldest theme park)
- Samsung Techwin (company engaged in space exploration, production ofsurveillance, protection, and military equipment, etc.)
- Cheil Worldwide (in terms of revenue, it was the 15th largest advertising firm
in the world in 2012)
In 2019, Samsung had the highest global brand value in Asia and was ratedfourth in the globe In July 2020, Samsung surpassed major competitors such asApple, Google, Sony, LG, Panasonic, Philips, and others to maintain its positionatop the list of 1,000 most loved brands in Asia for the ninth consecutive year, asdetermined by leading market research firms Campaign - Asia-Pacific and NielsenMedia Research According to Interbrand, in October 2020, Samsung will havesurpassed automobile manufacturer Toyota (Japan) to become the most costly brand
in Asia, ranking fifth internationally behind Google, Microsoft, Amazon, and Apple(USA) In November 2020, Samsung maintained its market share of 33.7 percent,surpassing Apple's (30.2 percent) to claim the No 1 position, dominating the
Smartphone market in the United States after ranking second for the previous threeyears (2017, 2018, 2019) Also in 2020, Brand Finance, the UK's independent brandvaluation and strategic consulting firm, announced the results of its national brandreport, in which Samsung's brand value was valued at approximately 95 percent.billion US dollars - ranked first in Asia, fifth in the world, ranked above many bignames such as Facebook, Volkswagen, Walmart, Toyota, Huawei, and only afterfour US technology companies (Amazon, Google, Apple and Microsoft) By 2021,
Trang 10the aforesaid number will have risen to 102.6 billion USD, yet Samsung will still beranked fifth in the world.
Samsung has had a significant impact on the growth of the Korean economy,politics, media, culture, and social life, and is the driving force, the major 'nucleus'behind the success of the 'Miracle of the Han River.' Contributing one-fifth of thecountry's entire export turnover, the group's earnings also accounted for 17% of theKorean economy's overall GDP of $ 1.1 trillion in 2013
April 2009: The Samsung Electronics Vietnam (SEV) project, located in YenPhong industrial park in Bac Ninh, was given an investment certificate and
launched into operation with a capital investment of 2.5 billion USD
2010: Launched the first 3D TV range in Vietnam, as well as the Galaxysmartphones that run on the Android operating system
Image 1.2: Samsung Electronics Vietnam Factory Thai Nguyen
At 2014, the Samsung Vietnam Electronics Thai Nguyen (SEVT) project wasgranted an investment license and began operations in the Yen Binh industrial park
in Thai Nguyen, with a total investment capital of $5 billion USD
2016: The SEHC (Samsung CE Complex) project of Samsung Vietnam, with atotal investment of $2 billion USD, opened its doors at Saigon Hi-tech Park
Trang 112017 saw the formal opening of the Samsung Group Solution ExperienceCenter (EBC) and the Research and Development Center (Samsung Ho Chi MinhResearch & Development Center – SHRD) in Vietnam.
It is estimated that more than 300,000 Vietnamese people worked in
Samsung's factories until the beginning of 2018 At the same time, SamsungElectronics Vietnam (SEV) is now not only an FDI enterprise with the largestproduction scale, the most rigorous and talented recruitment process, and is
regularly ranked in the top "best places to work," but also the largest foreign directinvestment
Image 1.3: Profits of samsung factories in Vietnam
Trang 12Image 1.4: Revenue of samsung factories in Vietnam
1.2 Products of Samsung Group
Samsung is a multi-industry corporation, the most prominent of which is in thefield of electronics, a subsidiary of this group is Samsung Electronics - the largesthigh-tech in the world by revenue Samsung uses its own brand, Samsung,
uniformly for all of the company's products The choice of the company name - thebrand name to label the product represents a smart way of Samsung using the
company's reputation to affirm the quality of the product This shows the confidence
of the business in ensuring the quality of the product and at the same time gainingthe trust of customers when they dare to assert themselves in the market Electronicproducts manufactured by Samsung are clearly labeled so that customers can reallyknow the origin, origin and trust in this brand as well as distinguish them fromcounterfeit and fake products that are rampant in the market school To name itsproducts, Samsung chooses to name new products as a mixed name: Companyname + Product name For example :
● Samsung Galaxy series: Galaxy Z, Galaxy S, Galaxy Note, Galaxy A,Galaxy USA
● Tablet series (Tablet): Samsung Galaxy Tab S, Samsung Galaxy Tab A
● Smart watches: Galaxy Watch, Galaxy Watch Active, Galaxy Fit
● TV series: Samsung Smart TV, Samsung LCD TV, Samsung Plasma
1.3 Interview of Samsung Galaxy S
Samsung Galaxy S-series with a mission to always lead the trend,
Samsung Galaxy S was first introduced on March 23, 2010, markingSamsung's first turning point into the smartphone business Galaxy S isSamsung's high-end smartphone series with luxurious design, classycurved screen, powerful configuration, terrible camera with the aim ofdirectly competing with Apple's iPhone series The "S" in the word
Trang 13Galaxy S stands for Super Smart Currently, the Galaxy S series is stillSamsung's most successful product series, making a name for Samsung
in the smartphone field
The Samsung Galaxy S series is a series of high-end Android mobiledevices produced by Samsung Electronics Together with the SamsungGalaxy Note, the lineup serves as Samsung's flagship smartphone model.Samsung later expanded the Galaxy S series to tablet computers with theannouncement of the Galaxy Tab S in June 2014 and released the nextmonth As of January 2021, the latest smartphones in the Galaxy S seriesare the Samsung Galaxy S21 series, which were first released in January
2021 The Samsung Galaxy Tab series is the related tablet series, whichincludes the tablet Samsung Galaxy Tab S7 released in August
2020.Samsung Galaxy S Series:
- Samsung Galaxy S (June 2010)
- Samsung Galaxy S II (February 201)
- Samsung Galaxy S III (May 2012)
- Samsung Galaxy S4 (March 2013)
- Samsung Galaxy S5 (February 2014)
- Samsung Galaxy S6 | S6 egde | S6 egde+ | S6 active (March 2015)
- Samsung Galaxy S7 | S7 egde | S7 active (February 2016)
- Samsung Galaxy S8 | S8+ | S8 active | S Light Luxury (March 29, 2017)
- Samsung Galaxy S9 | S9+ (February 25, 2018)
- Samsung Galaxy S10e | S10 Lite | S10 | S10+ | S10 5G (February 21, 2019)
- Samsung Galaxy S20 FE | S20 | S20+ | S20 Ultra (LTE | 5G) (February 11,2020)
- Samsung Galaxy S21 Series 5G (January 11, 2021)
Trang 142 MARKETING ENVIRONMENT2.1 Microenvironment
● Suppliers
Samsung is one of the world's leading technological companies, thus theirphones are designed from the start to be international As a result, Samsung places apremium on the quality of its suppliers' components Advantest Corp and Canon Incare two of Samsung's primary suppliers Samsung also collaborates with
Vietnamese suppliers and establishes long-term partnerships with them By the end
of 2019, 42 Vietnamese companies have become Samsung's first-tier suppliers, agrowth of tenfold in only five years after just four units in 2014 Samsung plans toraise the total number of devices to 50 by the end of the year Not to mention thehundreds of tier-2 suppliers who contribute to the world's largest electronic
manufacturing chain Viet Hung Bao Bi Ltd, based in the province of Hung Yen, isone of Samsung's first and most well-known providers of carton packaging and
paper pallets
Image 2.1: Viet Hung Bao Bi Ltd one of Samsung's first and most well-known
providers of carton packaging and paper pallets.
Trang 15● Marketing Intermediaries
Marketing intermediates assist Samsung in promoting, selling, and
delivering its products to final consumers or buyers Retailers are the primary waythrough which Samsung's new goods reach consumers in Vietnam, in addition tohosting showrooms to market new goods “Thế giới di động” or “CellphoneS” aremajor retailers in Vietnam that are distributing most of Samsung's phone seriess.Besides, Samsung has also opened “experience stores” in recent years, contributing
to expanding the retail scale for this brand
Image 2.2: Cellphone Store
● Customer
Samsung's clients in Vietnam are quite diverse because the company owns awide range of products in several areas The Samsung A series will be used bystudents and low-income individuals while the S or Note series is for those with alot of money
● Competitors
Samsung is the most popular phone in Vietnam Samsung offers a wide range
of pricing due to its various phone seriess, allowing it to reach wider customers
Trang 16Samsung, on the other hand, generates a large portion of its earnings from sellinglow-cost phones such as the A and M seriess Samsung's Galaxy S series is always
up against competition from other phone brands, making sales of the Galaxy S lessimpressive than sales of their low-cost phone seriess
In December 2020, iPhone's market shares in Hanoi jumped to 13.7 percent,approaching the sales of Vietnam's third-largest company In November and
October of last year, Apple's sales were only 8.6 percent and 5.2 percent,
respectively This is a remarkable statistic, indicating that Vietnamese users areeagerly anticipating the release of new iPhone models Apple Inc (iPhone 12 seriesofficially debut in Vietnam from November 27, 2020) Remember that Apple onlysells high-end product seriess (priced over 10 million VND) but accounted for over13% of sales, whereas top brands like Vsmart, Oppo, and Samsung primarily
accounted for sales thanks to low-cost seriess As a result, it's clear that Apple isSamsung's most difficult competitor to beat if it wants to lead the high-end phonemarket
The Xiaomi Mi Mix series is a potential opponent to the Samsung Galaxy Sseries Because Xiaomi has yet to release this phone series in Vietnam The Xiaomi
mi mix series's items are mostly distributed through small retailers in Vietnam IfXiaomi's Mi Mix series is released in Vietnam, it will be a competitor to Samsung'sGalaxy S series
Samsung's Galaxy Note series is a surprising rival to the Galaxy S series Withthe differences in design and the Note series' ownership of the "S pen," Samsunghas created an internal competition
2.2 Macroenvironment
● Economic
GDP per capita increased 2.7 times between 2002 and 2018, reaching overUSD 2,700 in 2019, with over 45 million people fleeing poverty The poverty rate
Trang 17fell dramatically from more than 70% to less than 6% ($3.2 per day at purchasingpower parity) Ethnic minorities make up the majority of the remaining poor inVietnam, accounting for 86 percent.
Vietnam's economy was severely impacted by the COVID-19 infection due ofits deep economic integration, but it also demonstrated remarkable resilience In
2020, GDP growth is expected to be 2.9 percent Although Vietnam is one of thefew countries in the globe to have positive economic growth, the epidemic has hadlong-term effects on households, with roughly 45 percent of those surveyed
reporting lower income
Without the epidemic's impact, Vietnam's economy would not suffer the samenegative consequences, and it could grow even faster During the latest outbreak,Samsung likewise had a lot of problems The virus initially impacted the supplychain, but this was rapidly remedied Second, the COVID-19 pandemic has loweredphone demand
● Politic
The phone not only serves as a means of communication, but it also reflectsthe owner's wealth and status Any regulations pertaining to cell phone users aregiven proper consideration The government has always made it easier for phonecompanies to compete successfully and equitably in the marketplace Because thesuccess of these firms generates cash for the state budget, creates jobs for a largenumber of people, and promotes economic growth The open political environment
is assisting corporations such as Samsung in expanding their production capacity
● Ecology
Vietnamese culture is incredibly diversified, with distinct consumer behaviors
in each region Samsung has realized this, therefore whenever they produce a newGalaxy S, they always release two versions: S and S plus (in recent years, there hasalso been a high-end version of the Galaxy S series called S Ultra) to cater to a wide
Trang 18spectrum of customers with varying incomes and needs Furthermore, each phonecomes in a wide range of colors for customers to pick from (usually there will be 3color versions) Vietnam's labor resources are also plentiful, making it easy forSamsung to grow its manufacturing capacity.
● Technology
Samsung is the world's largest mobile phone manufacturer, therefore it'scritical to keep up with technological advancements Take, for example, Nokia'sdemise as a result of failing to stay up with global trends Since the Samsung
Galaxy S8 was released, there has been essentially little change in the outwarddesign of the Samsung Galaxy S series; the only difference between these phones is
an upgrade in configuration and camera You can't blame Samsung in this scenariobecause their Galaxy S phone is intrinsically too great and developing the phone'ssoftware and internal hardware through each generation each year has been a
problem
Samsung releases Android updates for its phones on a regular basis, as well asresearching and developing new ways to boost the processing performance of itsGalaxy S series phones
Developing mobile devices that can use 5G networks is also one of Samsung'stop priorities
● Demography
Vietnam's population is estimated to reach 97,757,118 people on December
31, 2020, an increase of 876,475 people over the previous year's figure of
96,903,947
Because Vietnam is a developing country, the people here are in a state ofintegration with the world, mobile phones can be said to be an extremely importantand popular object for Vietnamese people
Trang 19Image 2.3: the number of users of the top 15 countries
According to Adsota's Vietnam Digital Advertising Market report, the
Vietnamese market currently has up to 43.7 million people using smartphone
devices out of a total population of 97.4 million people, reaching a rate of 44.9% These figures also help Vietnam to enter the top 15 markets with the highest number
of smartphone users in the world, alongside many other developed countries such asthe UK, Japan, Germany or the same representative in Southeast Asia is Indonesia
As a result, Vietnamese people have a high need for mobile phones Rightnow, Samsung's job is to perfect their product as much as possible in order to gainmarket share as rapidly as possible
Trang 203 S – T – P STRATEGY3.1 Segmentation
Market segmentation is a marketing technique that involves segmenting a targetmarket into smaller, more defined segments, enabling a business to conduct strongmarket research into customers By participating in market segmentation,
researchers can reveal consumer experience insights, product development
innovation approaches, suggestions for boosting customer loyalty, and more
To enable the company to have a more detailed view of the market and select thetarget market correctly and efficiently, Samsung has segmented the market based oncustomer income
❖ Demographic segmentation: Segmenting the market by income
depending on the income of each individual, they will choose forthemselves a smartphone with a price that is suitable for theirconditions
• High-end phone segment (Flagship): Over 15 million VND
High-end phones (Flagship) are the flagship product of that manufacturer, whenequipped with the most modern features on the current technology market, in
addition, the configuration or price is also quite high compared to other models.other products These are all phones with good performance, sharp cameras and alot of extremely outstanding features and extremely good configuration High-endsmartphones (Flagship) are suitable for users who want to own and enjoy the
experience products with the latest technology, best cameras, best designs and bestfeatures
However, products in this segment often have a very high price in common, so mostare aimed at successful business people
• Near-premium phone segment: prices range from 10 to 15 million VND
Trang 21Devices in this segment will cost from 10-15 million VND and will focus on certainfeatures such as camera, entertainment, or have strong configuration, or have a nicebrand and design The phones in this segment are often the flagship of the previousyear, carrying the most advanced technological features.
• Mid-range phone segment priced from 5 million to 10 million VND
This is considered the most popular segment in the Vietnamese market and usuallycosts from 6 to 10 million, completely satisfying the user's experience The majority
in this segment, their customers are students students, who have worked withrelatively stable income
• Low-cost phone segment
Smartphones in this segment usually cost less than 6 million VND Products in thissegment usually do not have anything new and special technology but can fullymeet the basic needs of users such as making calls, texting, surfing the web andwatching movies
Market Segmentation by Gender: Gender influences Samsung's purchasing
decisions in a 2018 study, which respondents will choose from among the 4 phoneseriess in the same high-end segment of Iphone and Samsung we get the tablebelow The vast majority of men choose Samsung while women prefer Iphone
Image 3.1: The percentage between men and women who expect
Samsung or Iphone
❖ Psychographic segmentation: Samsung products from almost all
segments have luxurious and sophisticated designs The colors are
Trang 22often chosen for its phones in addition to colors such as copper gold,white, black Samsung also constantly offers colors that match thepersonalities of different customers.
Each color represents a personality within each individual customer Samsung hasdesigned different colors to represent each person's inner personality Take forexample the Samsung Galaxy S21 series
purple, this is the latest color and only available on Samsung Galaxy S True to thename 'passion purple', I was really captivated by the unique, novel color schemethat brings elegance and sophistication certain nobility
Phantom Gold: With Phantom Gold color on Samsung, this color highlights theelegance and nobility for both men and women, especially business people whenexuding their own style and temperament
White: people immediately think of simplicity, purity, sophistication and lightness.dark gray: Powerful, luxurious and elegant are his words to describe the colorshade This is the most basic color and can often be found on any phone
3.2 Versions of Galaxy S21+ 5G
❖ Geographic Segmentation: Dividing your customer personas or
groups basis the geographical areas they reside in (Rural and Urban)
Trang 23and then deciding on which segment area you want to target Samsungtargets both the rural as well as urban population.
3.2 Targeting
Targeting is a set of buyers sharing common needs or characteristics that the
company decides to serve
After carefully researching market segments, Samsung has chosen for their
Samsung Galaxy S product series the target market is the high-end phone segment.Target customers of Samsung Galaxy S are successful businessmen with stableincome Characteristics of this customer group, the segment has a high ability topay:
- This is the segment that needs to use a variety of products and services
- Help business people bring higher profits…
This is a very competitive segment Currently, the high-end phone product series inVietnam, is the close competition of Iphone and high-end product series of
Samsung
The group of customers who are not dominated by price, what they need in a phone
is not only the most advanced features from the camera to the configuration but alsothe internal value of a phone The sophistication, elegance and beautiful design arealso a decisive factor Customers in this target market will have higher requirementsfor services and products
However, with current installment payment policies, Samsung Galaxy S also targets
a group of personalities who like to express themselves but whose income is notenough to pay for a single payment The characteristics of this group are mainlyyoung people aged 20-35, starting to want to build an image for themselves, theyalways want to update the latest trends, want to express themselves in a certainaspect personalities This is also a potential segment of Samsung Gaxaly S