Samsung is a multinational corporation based in South Korea that is involved in the assembly and sale of electronics. The company is a major manufacturer of hard drive and flash memory devices as well as chips and semiconductors. The company also sells consumer electronics such as mobile phones, smartphones, tablets, televisions and LCD and LED panels. Samsung Company was started in 1938 as a trading company dealing with vegetables, fruits and fish export. The company diversified into electronics in 1969 and Samsung electronics was established (Anonymous, 2013). The early products manufactured by the company include washing machines, televisions, refrigerators, calculators and air conditioners. The company launched the first mobile phone in South Korea in 1988 but it achieved poor sales. As from 1995, the company started developing new technologies and producing components for other companies. The company was very successful in technological developments such as the manufacture of memory. Samsung started supplying memory chips to Apple as well as other components for the company’s iPhones. Samsung was very successful in 2009 in mobile making and it also became the largest technology company in the world. The company has been very successful in the sale of the Galaxy S smartphomes and Galaxy Note (Anonymous, 2013).
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The charge for this marketing plan is the introduction of the Galaxy Mini tablet in the market by Samsung. A tablet is an internet-enabled device, which enables users to take notes, play games, browse and access entertainment. Tablets offer users numerous applications to choose from and they are portable and easy to use. They have a microphone, camera and on-screen keyboard. They are at least seven inches in size. Samsung has produced a line of Samsung Galaxy Tabs since 2010. Some of the features of Samsung tablets include cameras, processors and LCD display. Samsung Galaxy tablets have been in the market since 2010 and the company has been quite successful in tablet market. Currently, Samsung comes second after Apple in tablet sales. The target audience for the Galaxy Mini tablet includes individuals aged between 23 and 45. These include young as well as established professionals who require the device to help them access information and organize their lives. This marketing plan aims at evaluating the possibility of successfully launching a Galaxy Mini tablet in the market. A marketing perspective is essential for this issue since it will provide the required information about the market including the internal and external environments. This will enable Samsung to make an informed decision on when and where to launch the product as well as the promotional strategies to use.
External Environment Analysis
The tablet market has been growing rapidly (Huberty et al, 2011). In 2011, the number of tablets shipped from all the manufacturing companies for sale to various retailers was 55 million and it was projected that the 2012 and 2013 shipments would be 85 million and 102 million respectively (Huberty et al, 2011). The current trend in the industry is that more and more people are relying heavily on tablets and other hand held devices to communicate with others and get constant updates. One of the success factors in the industry is the increase in demand for tablets and this will facilitate the successful launch of the Galaxy Mini tablet. A failure factor in the industry is the growing competition from other companies such as Apple that may hinder the Galaxy Mini tablet from gaining a big market share.
The brand competitors for Samsung Galaxy Mini tablet include Apple iPad, Toshiba Xcite, HP Elite Pad and Lenovo IdeaTab. Apple iPad has the largest market share. Apple’s target market includes e-readers, business people, travelers, researchers. The strengths of Apple iPad include its strong market presence while the weaknesses of this device include the lack of a camera, limited multitasking capability, and small memory storage. This product poses a threat to the Galaxy Mini tablet due to better display and more storage models. Most customers are attracted to Apple iPad because of the popularity of the brand (Mossberg, 2013). The strengths of Toshiba Xcite include an incredible display, Nvidia Tegra 4 processor and a rear camera, which is 8MP. The weakness of this tablet is that the included stylus has no storage and the battery is not long-lasting. Lenovo IdeaTab has the ability to run the Android 4.2 operating system and it is comfortable to carry and operate due to its convenient weight and size. However, its weaknesses include a weak display resolution and camera resolution of 0.3MP only. The target market for this tablet includes individuals who are interested in surfing the internet and playing with apps. The HP ElitePad has a fast operating system and processor. However, its display resolution is not very good and it lacks a number of ports. Its target market includes active professionals in diverse fields. Consumers are attracted to it because it runs smoothly. Galaxy Mini tablet’s product competitors include Dell, Sony and Hewlett-Packard. The net books offered by these companies are similar to tablets but have different features.
There is improved technological advancement today especially in high speed internet, long battery life, touch screen facility, high storage capacity and high speed micro-processors (Huberty et al, 2011). These advancements will enable Samsung to develop innovative tablets with numerous capabilities.
The economic environment in the US, which is one of Samsung’s major countries of operation, is favorable for the Galaxy Mini tablet. The economy has been in constant growth except during economic crises. During times when there is slow economic growth, people spend less money on luxury devices and this can negatively affect the tablet business.
Legal issues that may affect the charge include distribution restrictions, copyright infringement and the governance issues affecting the marketing of the products. Samsung has been involved in legal battles with Apple over claims of intellectual property infringement by Samsung’s tablets and smartphones.
The beliefs and backgrounds of the target market will affect the success of the product. There are changes in lifestyles such as an increased enthusiasm for new technologies. Increased reliance on the internet for various purposes is another cultural change, which will facilitate the growth of Samsung’s tablet market.
Customer Environment Analysis
The current and potential consumers of Samsung tablets are men and women aged between 23 and 45 years of age. These individuals are well versed with the technological advances and the new tablets that are introduced in the market. They also have the financial ability to purchase them. The younger consumers need the tablets for their entertainment needs. Other consumers include business persons who need tablets to run their businesses. The buyers of the tablets are also the users. The retailers, distributors, promotional activities, consumers who have already used the tablets, and the price, influence their buying decisions. Samsung Galaxy tablets serve over 10% of the world’s customers. The company has the capacity to serve over 20% of the customers. The consumers of Samsung galaxy tablets buy them from various stores located in different countries of operation (Anonymous, 2013). The intermediaries in the purchase of Samsung galaxy tablets include distributors and retailers.
Electronic commerce has increased the sale of the tablets since most consumers prefer the convenience of buying from online stores. Most of the non-store purchase of tablets by the consumers is done on the internet. Consumers buy tablets during periods of economic growth. They also buy them as soon as new products are introduced in the market. Advertisements and other promotional activities affect the purchase decisions of the consumers and they increase the sale of the devices. Samsung galaxy tablets have numerous benefits, which satisfy the consumers’ needs. These include Bluetooth, long battery life, lightweight, high resolution, card reader slots, Wi-Fi and small size. Apple’s iPad provides a multi-touch screen (Mossberg, 2013). Customer’s needs are constantly changing and they demand for products that will meet all of them. Most customers pay for the products through credit. There are non-customers for the Samsung galaxy tablets because competitors such as Apple (Huberty et al, 2011) dominate the market.
Internal Environment Analysis
The financial performance of Samsung in the past in the tablet market has been good. However, the company does not make as many sales as its main competitor, Apple. The target market for the product includes individuals from age 23 to 45. The company communicates to the target market through advertising, internet, sales promotion, personal selling and public relations (Anonymous, 2013). The marketing objectives for the company include making Samsung brand the leader in the tablet market and attracting loyal customers. The company hopes to improve the awareness, of the Galaxy Mini tablet, and make many sales. Samsung’s marketing programs include print and electronic advertising as well as sales promotions, which will be effective in improving the market’s awareness of the Galaxy Mini tablet.
Samsung is one of the leading manufacturers of tablets and other electronic devices. One fifth of Korea’s exports come from this company. The company takes advantage of the technological advancements to develop innovative and high-quality products that meet the needs of users all over the world. Some of the major resources in Samsung include its research and development network in different countries, which facilitates the development of first-rate products (Anonymous, 2013). The company is financially stable and its organizational structure includes the CEO, executive team and board of directors. The management approach at Samsung is based on talent, creativity and partnership (Anonymous, 2013). The Galaxy Mini tablet is at the introduction stage of the product life cycle.
Anonymous. (2013, November 10). Company overview of Samsung Electronics Co. Ltd. Business Week.
Huberty, K., Lipacis, C. M., Holt, A., Gelblum, E., Devitt, S., Swinburne, B., … & Ono, M. (2011). Tablet Demand and Disruption. Morgan Stanley Research, 1-96.
Mossberg, W.S. (2013, October, 29). Speed and Power packed into a thin iPad Air. The Wall Street Journal.