Marketing Plan For Samsung 146-Inch Micro LED TV

Samsung 146-Inch Micro LED TV

The intent of this report is to provide a detailed marketing plan of Samsung 146 Inch Micro LED TV, which is introduced by the Samsung Company in its target market. The report will be comprised of environmental analysis, STP analysis, and marketing objectives of the business.  

Samsung Electronics is a multinational electronics company of South Korea with headquarter in Suwon. With complex structure of ownership and circular ownership, it is regarded as the flagship company of the Samsung chaebol (Vergara, 2012). Samsung has recently introduced the very first modular Micro LED 146-inch TC at the annual fist look CES event. It is the latest innovation that reflects how television is developing to provide customers with an excellent viewing experience, by performing as a centralized linked smart hub to improve everyday living (Hruska, 2018).  

Samsung 146-Inch Micro LED TV has been known as the innovation of the year 2018, as it is the first consumer modular Micro LED television with 146 inches. In a CES event, the Micro LED 146-inch Television is displayed along with other Samsung innovations highlighting the development of the television market that is providing an unforgettable experience to the customer. The proposition of Samsung 146 inch Micro LED television is to deliver excellent visuals and grow to integrate effortlessly into the lives of people. Samsung is dedicated to offering customers a top screen experiences. Being the initial consumer modular in the world Micro LED television, ‘The Wall’ signifies another revolution. The Wall can be transformed into different size and offers inconceivable brightness, black levels, and color gamut (Samsung Newsroom, 2018).

The technology of Micro LED featured in The Wall eradicates the requirement of backlights or color filters, yet lets the screen to provide customers definitive viewing experience. In addition, this product excels in the effectiveness and durability, comprising brilliant proficiency, the power consumption, and light source lifetime, giving the high standard for the screen technology of the future (Reisinger and Westover, 2019).

Political Factors

In many markets where Samsung operations its businesses has a stable political environment. However, there are some issues in a few of the international regions like India. In general, Samsung work in the international markets with compassionate political factors. Presently, it has experienced heavy political forces in South Korea. The cause of these issues is political tensions with North Korea (Pestle Analysis, 2015). While introducing 146 inches Micro LED television in different markets Samsung not just have to consider about the political instability but it should also worry about the war that would break out in the Korean Peninsula.

Environmental Analysis

Economic Factors

The decreasing buying power of the customers in numerous markets enforces company to identify the profitable solution (Pratap, 2018). It has been noticed that Samsung is adjusting itself with the decreasing disposable income of the customers in developing nations by expanding its operations in the developing markets. Therefore, it could be said that Samsung needs to introduce its ‘The Wall” in the developing market in order to have increased revenue.  

Social Factor

Samsung is a family owned multinational of South Korea. In spite of its worldwide image, the company operates as a Korean company. Due to this, they alter numerous aspects of the worldwide operations as per the local condition. In general, Samsung had to operate its activities according to the local values in several nations developing markets. Furthermore, Samsung had to alter its offering in order to cope up with the fact altering preferences of the consumer in some of the markets. Samsung works in a market niche inclined by the lifestyle preference of the customer (Pestle Analysis, 2015).

Technological Factors

Samsung is counted among the leading companies of innovation. It has attained a competitive advantage in utilizing the power of technology. Through, this they have sustained a mission to maintain the leading place in the market (Pratap, 2018). By introducing Samsung 146 inch Micro LED the motive of the company is to remain the leading firm in the innovation and technological curve will be attained.

Legal Factors

Samsung had experienced numerous types of controversies such as penalties for initiating the Apple’s iPhone and Apple iPad. This allegation changes the perception of the public from positive to negative. Besides this, the acceptance of the customers regarding its implemented policies was also hindered (Pestle Analysis, 2015).

Environmental Factors

While operating in different nations Samsung had to keep wastage or pollution in its mind. Cleaning waste and treating the environment kindly results in a positive effect on the society (Management Study Guide, 2019b). These aspects will influence the business, but will not majorly affect its profit and trade.

The threat of Substitute Products

The threat of substitute services for every category of the product provided by Samsung is substantial. The visual display business of Samsung is threatened by the indirect substitution like growing acceptance of foremost active lifestyle and spending time outdoors (Dudovskiy, 2017b).

Competition among existing businesses

Attaining market saturation for numerous categories of products in the industry of consumer electronics increases the competition because there is very little difference between the range of services or products provided in the market (Dudovskiy, 2017b). In the smartphone and television market segment, the crucial categories of services, Samsung competes with a broad variety of supplies like LG, OPPO, Apple, Lenovo, Micromax, Huawei, etc.

STP Analysis

Samsung has 579 suppliers internationally and its supply chain comprises around 2700 suppliers in numerous industries around the world. Businesses supplying common components and parts do not have considerable power of bargaining because of the significance of the order volume of Samsung and its capability to negotiate prices (Dudovskiy, 2017b). However, one key supplier that is Google practices an immense power of bargaining as the Android platform supplier because of lack of alternative platforms accessible to Samsung.

Buyer Bargaining Power

The power of bargaining of the individual consumer can be low, but that of the customers as a group and corporate buyers is significant (Management Study Guide, 2019a). The consumers are informed that they have numerous options in the industry for many products. They can simply choose a brand they want and shop form numerous sources. The switching cost is very low and due to this, the bargaining power of the customer is high.

The threat of New Entrant

The new entrant threat for Samsung is low, as the industry requires huge investment to create these types of brands and attract skilled personnel to create the brand with the help of marketing activities. (Pratap, 2017).

Segmentation, targeting, and positioning strategy of Samsung involve different types of activities in a in an order. Together these activities create the marketing strategy of Samsung (Dudovskiy, 2017a).

Segmentation is based on the concept of dividing the population into diverse groups depending on their similar characteristics. In dividing the market, academics classically search for common characteristics like common interests, shared needs, similar lifestyles, or similar demographics profiles (Dolnicar, Grün, and Leisch, 2018). Eventually, the aim of the segmentation strategy is to recognize high yield segments that are most profitable or that have a potential of growth such that these could be chosen for the special attention. Samsung has a wide segment of the target market that is aimed by the company through its marketing strategies. Segmentation of the Samsung market is done based on four criteria:

Demographic Segmentation – Demographic Segmentation is the simplest types of segmentation used by businesses. Many companies make use of this type of segmentation to target the right population that could use their product. Segmentation normally divides the population depending on the variables such as age, income, family size, religion, gender, nationality, and race. Here, Samsung has segmented its market based on gender, occupation, and life cycle stage.

Geographic Segmentation – Geographic segmentation is comprised of dividing the people based on the geography. The potential market of the company has diverse requirements depending on their geography (Williams, 2010). The variables based on which Samsung has divided its market are Region, Age, and Density.

Marketing Objectives

Psychographic Segmentation – Psychographic segmentation is the one used to divide the market according to their lifestyle, interests, activities, and opinions in order to determine their market segment. Samsung has segmented its market based on lifestyle and social life.

Behavioral Segmentation – Behavioural segmentation is used to divide the market based on their usage, decision making, and buying the pattern. Samsung has divided its market based on behavioral segmentation with the variables loyalty, user status, and personality.

Targeting is based on the concept of choosing precise group as customers of services and products. A target market is a customer group within a business market in which a company aims its efforts and resources of marketing. It is a subsection of the overall market for a service or product. Target market generally comprised of customers who are of similar characteristics like income, age, lifestyle, or location and are likely to purchase the offerings in the market or are a most profitable segment for the business (Bernanke, Laubach, and Mishkin, 2018). The major target market of Samsung is males and females, professionals, upper class, and middle class.

Positioning is the place occupied by the brand in the customer’s mind and the way it is distinguished from the competitor’s products (Rajagopal, 2016). To place the product in the market, businesses can highlight the distinguishing features of their product or can put their efforts to make a suitable image through the marketing mix. Once a product has attained a strong place, it could become tough to reposition it. The positioning strategy that will be used by Samsung for its 146-inch Micro LED television

Multi-segment positioning – Samsung will not just target one target, it will frame the strategies to target more than one segment at same time by providing different offers to the customers. The 146 inch Micro LED can be adjusted at any size, functionality and ultimately with diverse prices depending on different facilities. The Wall will be placed in the market as the first modular Micro LED television with 146 inches.

The below table will highlight the targeting, positioning, and segmentation of Samsung 146 inch Micro LED television

Type of Segmentation	Criteria of Segmentation	Target Customer Segment
Geographic	Region	80 nations
Age	25-60
Density	Urban
Demographic	Gender	Female and Male
Life cycle stage	Bachelor and Married
Occupation	Employees, professional
Behavioral	Benefits sought	Advanced functionality, user-friendly, high quality
Loyalty Degree	Switchers Hardcore loyal
User Status	Existing customer Potential user First time user Ex-users of Samsung products
	Personality	Trendy
Psychographic	Lifestyle	Explorer Succeeder
Social class	Upper class Middle class

Marketing objectives are the goals arranged by companies while advertising its services or products to potential customers (McDonald, Frow and Payne, 2011).

The marketing objective Samsung is to increase its brand value by introducing the very first customer modular 146 inch Micro LED television in the market. This objective is measurable in terms of increasing sales within one year. The company can attain the 10-20% increase in the sales of the product with the help of mass media marketing such as television, radio, billboards, hoardings, etc. Besides this, this objective is relevant to the mission of Samsung to be the leading brand of innovation and technology.  

Consolidation of variability analysis

Segmentation

The innovative product that is 146-inch Micro LED television (The Wall) introduced by Samsung Company will help it in attaining the marketing objective of increasing the brand image among the customer in the market. As innovation in today’s world is considered the driver of success and growth. Economically “The Wall’ will support the company in increasing its sales by 10-20% through its innovative features that will attract a maximum number of existing, potential, and retaining ex-customers. Besides this, with this first customer, modular Micro LED 146-inch Television of advanced technology and features Company will give strong competition to its key competitors in the market such as Apple, Lenovo, and Micromax. Presently, there is no substitute for this product in the market, which offers a competitive advantage to Samsung in comparison to its competitors.   

Conclusion

The above report has provided a detailed marketing plan for the innovative products introduced by Samsung that is 146-inch Micro LED television in the market. The report has performed variability analysis in order to identify what environmental factors can influence the performance of ‘The Wall’. From the above analysis, it has been identified that the consumer electronic good industry is very competitive, however; the first consumer modular Micro LED 146-inch television will give strong competition to the competitors such as Apple and Micromax. Moreover, the marketing objective of Samsung behind introducing this innovative product in the market is to increase its brand value among customers by using mass promotional strategies such as television, radio, hoardings, etc.

References

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