Discuss about the Marketing for Samsung and Coca Cola.
The current report revolves around the marketing that are effectively used by two businesses in the Australian market. The report is prepared based on two case studies that are about Samsung and Coca Cola. The case studies were selected from the peer reviewed academic journals. With the material and information provided in the case studies, the report demonstrates how these companies gained competitive advantages through the implementation of the marketing strategies. Likewise, the report also provides a theoretical analysis of the reasons for the achievement of the competitive advantages. The first company Samsung was evaluated in 2007 with the case study namely, which reflects on the competitive advantages gained by the company through the executive of global expansion strategy. Likewise, the second company Coca Cola was reviewed in 2014 with the case study namely. The case study describes how Coca cola reforms its strategies in the global market and gains success.
Samsung- Samsung has just been named as the world leading consumer electronics band and it is acknowledge leader in the digital convergence revolution. Furthermore, since the foundation in 1969, the brand Samsung has effectively transitioned from an analogue driven product range to a cutting-edge and leading digital innovator, which presently has become world’s leading manufacturer of electronic products. The case study helps to learn that with increasing sales of $US 36.9 billion over 75000 employees in more than 75 countries (Kim 2007). For implementing the approach of competitive advantages and innovation, Samsung has used the approach to accomplish global competitive building the layers of advantages, which indicates continuous expansion of competitive advantages that ranges from low cost wage expense to increasing global brands. Samsung implied the approach for decades and the brand has developed the strategic platform for business growth, which is completely different from the present one. The company emphasized on “catching up” the dominant market in Western countries as well as Japan through: investment in production system, acquisition of important technology know-how and being competitive in the global market.
Coca Cola- The case study published in the reviewed journal helps to learn that overall revenue of Coca Cola is around US$35 billion as well as overall income o US$11.8 billion in 20110. The total workforce of the company is 139600 and the organization sells its products in more than 200 countries. In order to gain competitive strategies, the brand used multiple strategies such as marketing and branding, global strategy and new product launch strategy that helped the firm to gain competitive advantages and reinforce its position in the market. As opined by Vavere (2014), the beverage giant has implemented its organizational capability to implement global strategy using a mixture of central as well as local marketing functions to accomplish maximum marketing strategies and distributions effectiveness.
Samsung’s wining marketing strategy- The major strategy of brand is to develop the internal strength of the firm. The employees of the firm hold a sense of the crisis while going well and they attack when the crisis occurred (West, Ford & Ibrahim, 2015). The quality based management of Samsung emphasizes on the technology resource that is driving the force for forming the highest quality. On the contrary, the quality-based management of Samsung is particular related with the significant enablers that are known as human as well as technology. In order to gain the competitive advantages, Samsung expanded is production system in systematic “reverse order”. The organization continues to add to layers of advantages by getting into the market segment in which it could communicate on technological capabilities.
For example, Samsung particular selected the television segment as in initial target market to get into, which for years was on the declining stage in developed countries. The firm took the advantages of its abundant labors and cheap labor cost and then firm implemented the initiative of launching television at the mature stage. For each stage, the electronic giant Samsung effectively selected its skimming pricing strategies to manage its marketing positioning. The strategic choice of Samsung of beginning low end is based on three different environmental contexts prevailing later: low national earning, limited buying power of the domestic market, joint venture partner that do not share technologies in high-end product range as well as the availability of target export market particularly for low-end models.
Competitive marketing strategies applied by Coca cola- In order to dominate the global market and gain competitive, the firm serves consumers, customers, bottler s as well as the communities. As put forward by Vavere (2014), Coca Cola creates competitive value by implementing the comprehensive strategy based on six different beliefs such as Consumer demand drives everything Coca Cola do and serving the customers with an increasing selection of the non-alcoholic beverage drink that people could drink throughout the day. Furthermore, to reinforce the position in the market, the brand uses the strategies of developing quality of products, expanding the target market, developing attractive brand name and brand differentiation. The beverage firm uses the pricing strategy based on the seasons; this means they develops the pricing strategy in accordance with the season. For example, the in summer the prices of Coca Cola’s beverage products would be little high while in winter, the brand reduces the price of the products maintaining their sales and profits.
Ansoff Matrix and Samsung- With the existing models and the market, Samsung placed its products and services into different phases of Ansoff Matrix.
Market penetration- This usually involves increasing market share with both existing as well as new products. Hence, Samsung among its different categories of products Samsung increases the market share in Asian countries with the developed LCD and LED television, which are not so expensive (Kim, 2007). For example, Samsung launched its Smartphone by providing 15% cash back with bank credit cards and no processing fee.
Figure 1: Ansoff Matrix
(Source: West, Ford & Ibrahim, 2015)
Product development- Hence, the organization develops new products for existing market that could effectively meet customer requirements (Kotler et al., 2015). The launch of Samsung LCD TV was affordable. The product was introduced for the middle-income families. Before the launch of this product, Sony and Videocon were very expensive.
Market Development- This strategy enables the company to rely on the new market with the existing products. Samsung implemented this strategy of launching its LCD TV in Asian countries like India. Since, the launch of first LCD television in 2006, the brand considered Indian market as the potential market, whereas the other brands like Sony and Videocon considered Asian market as the poor market for such products (Zhu & Chen, 2015).
Diversification- This strategy enables the company to develop new product for the new market. This strategy includes the innovation; thereby, it is risky. Samsung first launched Smartphone in 2009 in Asian market, which was a new market. The product was highly accepted by the people in Asia (Kim, 2007). Besides the stylish and sleek body of the Smartphone, the product includes the many features, which were never introduced before in the market. This strategy helps the firm to become leading electronic gaunt with highest market share.
The above-discussed Ansoff matrix strategy helped Samsung to gain competitive advantages and increase market share but in the present days, the entry of HTC, Sony and other electronic brands with same products shifted the market of Samsung aside.
Market penetration-This strategy helps to develop the market when the firm sells and presents the products to existing market. As put forward by Czinkota and Ronkainen (2013), the competition could be in pricing, promotion or distribution. The brand Coca Cola helped people to fight obesity in the global market. Since the beginning in 1982, the outcome of developing trend towards dieting as well as healthier living, the diet coke for was become a highly successful product for the brand Coca Cola, which helped to increase market share.
Product development-while applying this strategy, the organization develops new product and sell them in the existing product. Coca Cola developed new product as Fanta to develop the market share (Vavere, 2014). The enhancement of new flavor sparkling drink by Coca Cola was as the direct outcome of listening to customers.
Market development-Market development strategy helps the firm to sell the existing product in new market as well as obtain new range of customers to increase sales. Coca Cola expanded its vanilla version in UK market after US. After being successful with the launch of diet Coke in US market, Coca Cola decided to launch their new Vanilla flavored version in UK.
Figure 2: Coca Cola Ansoff Matrix
(Source: Vavere, 2014)
Diversification- As put forward by Vavere (2014), diversification strategy is the strategy where Coca Cola developed new product and target them in the niche market. Thus, to implement this strategy successfully, Coca Cola develops 1.5 liter bottle to considering the households. It is observed that increasing number of household contained 1-2 people, which led the firm to believe that a smaller version of 2 liter family sized bottle could be popular in the market.
Conclusion
On the completion of the report, it can be mentioned that both of the firm have gained an enormous popularity in the global market. The effective implementation of the strategy helped the firm to gain competitive advantages and strengthened their position in the market. Theoretical discussion helps to learn how these organizations uses the strategies to stand firmly in the target market. The discussion also helps to learn that market strategies should be developed and implemented based on the situation arise and the nature of the market.
Reference List:
Amine, L. S., & Raizada, D. (2015). Market Entry into the Newly Opened Indian Market: Recent Experiences of US Companies in the Soft drinks Industry. In Proceedings of the 1995 Academy of Marketing Science (AMS) Annual Conference (pp. 287-292). Springer International Publishing.
Chan, H. K., Wang, X., Lacka, E., & Zhang, M. (2015). A Mixed?Method Approach to Extracting the Value of Social Media Data. Production and Operations Management.
Czinkota, M. R., & Ronkainen, I. A. (2013). International marketing. Cengage Learning.
Frynas, J.G. and Mellahi, K., 2015. Global strategic management. Oxford University Press, USA.
Grant, R. M., & Jordan, J. J. (2015). Foundations of strategy. John Wiley & Sons
Kim, R. (2007). Samsung’s competitive innovation and strategic intent for global expansion. Problems and Perspectives in Management, 5(3), 131
Kotler, P., Burton, S., Deans, K., Brown, L., & Armstrong, G. (2015). Marketing. Pearson Higher Education AU.
Lin, C., & Chang, C. C. (2015). The effect of technological diversification on organizational performance: An empirical study of S&P 500 manufacturing firms. Technological Forecasting and Social Change, 90, 575-58
Vavere, J. (2014). Coca-Cola Life–How New Strategies Help the Company to Maintain Dominance in World Markets.
West, D., Ford, J., & Ibrahim, E. (2015). Strategic marketing: creating competitive advantage. Oxford University Press.
West, D., Ford, J., & Ibrahim, E. (2015). Strategic marketing: creating competitive advantage. Oxford University Press
Zhu, Y. Q., & Chen, H. G. (2015). Social media and human need satisfaction: Implications for social media marketing. Business horizons, 58(3), 335-345.
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