MINISTRY OF EDUCATION
AND TRAINING VIET NAM

MKT101

Group assignment
_______________________________________________________

Products: Samsung Galaxy S9 and S9+

Group information

Group members

Lecturer

Nguyen Hoang

SE03997

Nguyen Xuan Truong

SE04362

Pham Minh Thuy

SE03992

Vu Ngoc Thach

SE04094

Nguyen Tuan Tung

SE04084

Dang Phuc Nghia

SE04444

Le Pham Khanh Hoa

Hanoi, January 2018


Table of Contents
I.

Introduction ........................................................................................................... 2

II. Literature review ................................................................................................... 3

III.

1.

Marketing environment .............................................................................. 3

2.

Consumer behavior ..................................................................................... 3


3.

Marketing strategy ...................................................................................... 3

4.

Marketing mix ............................................................................................ 4

Analysis ................................................................................................................ 4
1.

Introduction of Samsung ............................................................................ 4

2.

Introduction of Samsung Galaxy S9 and S9+ ............................................ 5

3.

Marketing environment .............................................................................. 5
a.

Analyze microenvironment by SWOT model ........................................... 5

b.

Analysis macroenvironment by PESTLE model...................................... 6

4.


Consumer behaviors ................................................................................... 8
a.

Consumer influence model ...................................................................... 8

b.

Types of buying decision behavior ........................................................ 10

c.

Buyer behavior process ......................................................................... 10

5.

Marketing strategy .................................................................................... 12
a.

Segmenting consumer markets .............................................................. 12

b.

Marketing targeting .............................................................................. 13

c.

Positioning and Differentiation ............................................................ 14

6.


IV.

Marketing program ................................................................................... 15
a.

Product .................................................................................................. 15

b.

Pricing ................................................................................................... 17

c.

Place ...................................................................................................... 17

d.

Promotion .............................................................................................. 18

Recommendation and conclusion .................................................................... 18

References .................................................................................................................... 20

1


I.

Introduction

We decided to choose Samsung to be the company for analyzing. As big company

as Samsung, they have very different interesting strategies and marketing programs.
Moreover, we will have the opportunity to consolidate knowledge because this topic is
quite broad theories. When we know more about the theory and analysis, we can analyze
a marketing environment by ourselves perfectly.
We choose to focus on the marketing strategy implemented by Samsung for its
smartphone models: Samsung Galaxy S9 and S9+. Because the purpose of marketing is
to act in a way that a company delivers products in the market that they correspond to
demand. Samsung’s success may be affected by factors outside the scope of marketing
strategy. This report will consider the marketing environment, consumer behavior,
marketing strategies and marketing program. We will discuss the marketing decisions
of the company in the smartphone market, not much in the mobile market, as the mobile
products is sidelined due to changing customers’ needs. We will also concentrate on the
consumer perception regarding Samsung marketing strategy to structure the conclusion
of the studies.

Figure 1. Samsung Galaxy S9 and S9+

2


II.

Literature review
1. Marketing environment
The marketing environment includes the actors and forces outside marketing that

affect marketing management’s ability to build and maintain successful relationships
with customers.

The microenvironment consists of the actors close to the company that affects its
ability to serve its customers, the company, suppliers, marketing intermediaries,
customer markets, competitors, and publics.
The macroenvironment consists of the larger societal forces that affect the
microenvironment. It includes Demographic, Economic, Natural, Technological,
Political and Culture.
PESTLE model: PEST analysis describes a framework of macroenvironmental
factors; it includes Political, Economic, Social, Technological, Legal and Environmental.

2. Consumer behavior
Consumer behavior refers to the buying behavior of final consumers - individuals
and households who buy goods and services for personal consumption. Consumer
market refers to all of the personal consumption of final consumers.
Characteristics Affecting Consumer Behavior: Cultural Factors, Social Factors,
Personal Factors, Psychological Factors.
Types of Buying Decision Behavior: Complex buying behavior, Dissonancereducing buying behavior, Habitual buying behavior, Variety-seeking buying behavior.

3. Marketing strategy
A strategy of a company or organization combines all of its marketing goals into
one comprehensive plan. A good marketing strategy should be drawn from market
research and focus on the right product mix in order to achieve the maximum profit
potential and sustain the business.

3


Figure 2. Purpose of marketing strategy

4. Marketing mix
The marketing mix is the set of tools (four Ps); the firm uses to implement its

marketing strategy are Product, Price, Promotion and Place.

Figure 3. Marketing mix

III. Analysis
1. Introduction of Samsung
Samsung is one of the greatest brands available in the market that aims to secure
the world leadership in the industry and earn devastating competitive strength by
synchronizing the development and manufacturing of product, design, marketing and
sales. The organization is well known for its great accomplishment in the industry of
semiconductors based on memory. Samsung has been maintaining its high position in
the industry continuously from 1992. The company has been stretching its financial
4


structure throughout the industry to maintain itself as a number one company in the
industry of mobile phones, semiconductors, monitors, computer gadgets, televisions,
TFT and LCD screens. It also achieved 4th place in the semiconductor industry and 6th
place in the mobile gadget industry by selling huge volumes.

2. Introduction of Samsung Galaxy S9 and S9+
The Samsung Galaxy S9 and S9+ (shortened to S9 and S9+) are two Android
smartphone models produced by Samsung Electronics as part of the Samsung Galaxy S
series. It can connect to 2G, 3G, 4G and 4G LTE networks. It is the newest release in
the Galaxy S series. Samsung have poured all of their effort into this product and
concentrating on adding more features such as the dual-lens camera set up on the back
(S9+), dual aperture rear camera helps the phones to shoot 4K at 60 frames per second.
The phones support AR Emoji technology, which is similar to Apple’s Animoji to let
users make emojis based on themselves. These features are main unique selling point on
S9 and S9+. The consumer also can mess around with the file systems which makes it

more appealing to people who are interested in technology. The S9 and S9+ models are
great successors to Samsung Galaxy S8 and S8+ and are considered as the rival of
iPhone X and models of other smartphone producers (website, 2018).

3. Marketing environment
a. Analyze microenvironment by SWOT model
Strengths (S)
-

Samsung has a wide product range, which allows them to grab ample market
share from various markets.

-

Samsung has the ability and resources to use the latest technology and offer
new and exciting features frequently.

-

Samsung has set up many production plants in low cost locations, thus they
save on cost of production significantly.

5


Weaknesses (W)
-

Samsung never introduces a new design on its own; it always waits to attack
its competitors. Thus, it missed the first mover advantages.


-

Many Samsung products are not user friendly, therefore consumer often
hesitate to switch to Samsung products even if the price and quality is
exceptional.

-

Samsung does not focus on a specific niche; it offers its products to the mass
market only.

Opportunities (O)
-

Samsung should make an active effort to offer unique products to customers,
in order to grab more market share.

-

Samsung could launch sub brands to the company, with new and improved
strategies.

-

Samsung could increase variation in its products.

Threats (T)
-


Samsung has linked product lines, which means that if one product line fails
due to its own reasons, other product lines will also suffer.

-

The more people expect of Samsung, the more disappointed they will get if
Samsung makes mistakes.

-

Countries all over the world are experiencing a high cost due to high
inflation rates in most locations.

b. Analysis macroenvironment by PESTLE model
Political factors
South Korea’s political nature has presented a tormenting factor for the company
that now faces political instability at its home country. The home country’s situation is
dissimilar when it is measured against other countries. Some of the countries where
Samsung is experiencing an inconvenient business environment, including Africa and
Southeast Asia.
6


Economic factors
Since the ongoing global economic crisis has severely dented the purchasing
power of consumers in many developed markets, Samsung has to seek profitable
ventures in the emerging markets. The key point to note here is that the macroeconomic
environment in which Samsung operates globally is beset with uncertainty and volatility
leading to the reorientation of its strategies accordingly.


Social-cultural factors
Being a global company, Samsung has been acting locally. It means the company
should adopt a local strategy in many emerging markets. Apart from this, Samsung had
to tailor its products to the fast changing consumer preferences in the various markets
where it operates. The key point to note here is that Samsung operates in a market niche
which is strongly influenced by the lifestyle preferences of consumers, given that the
fact is socio cultural factors are different in each country.

Technological factors
The company has the power of technology which drives innovation for sustainable
business advantage. The major benefit of technology is its ability to cut down production
costs and improve quality. Samsung is proud of its inventive advance to technology and
improvements for manufacturing products that deploys design technology and features.

Environmental factors
The basic weather and climate variations comprise of environmental factors that
influence business operations. Samsung’s approach to Corporate Social Responsibility
defines its concern to its environment. It is expressed through production facilities
grounded on environmentally friendly designs. With regard to this, the company has
been implementing practices aimed at protecting the environment.

7


Legal factors
Some of these legal constraints have an influence on business operations and
demand characteristics of consumers. The adoption of minimum wage rate policy by
governments can affect a firm, since it will have to raise wages increasing the cost of
production.


4. Consumer behaviors
a. Consumer influence model
Cultural factors
Cultural factors include the set of values and ideology of a community or a group
of private individuals. As in the U.S. mostly prefer smartphones while in the developing
countries like India and South Africa, people like simple mobile phone.

Social factors
The civilization of human being grew up as they started to live in a society. They
interact with each other for better solutions. A consumer’s behavior is therefore
influenced by the social factors such as groups, family and roles and status.
-

Family: If a teenager purchases a mobile, he or she would prefer more on
entertainments & games, while an official person would prefer more on
presentation and professional mobiles.

-

Reference group: A man wanted to purchase a mobile so he went to the
nearby store and purchased a Samsung mobile because his friends and
colleagues were using same mobile and they were satisfied by it. Customer
will buy a mobile from his relatives or friends so he can get good guidance
and good services.

-

Roles and status: Each individual plays a dual role in the society depending
on the group that he or she belongs to. For instance, a C.E.O of a company
will buy such a mobile that can help him to play both the role properly, a

C.E.O of the company as well as a father of a child.
8


Psychological factors

Figure 4. Psychological factors

-

Motivation: Most people are attracted towards advertise of Samsung Galaxy
S9 and S9+ mobile and they are motivated to purchase the same.

-

Beliefs and attitudes: Some people purchase Samsung smartphones to over
show their beliefs and attitudes towards their companions. For example,
buying a Samsung galaxy S9 or S9+ instead of Oppo.

-

Perception: For instance, there are two students, the first one wants to
purchase a Samsung Galaxy Note 8 and the other chooses S9. Instead of
being motivated by same purpose, still they purchased different types of
mobile. One pursued that the Note is best for its screen size whereas one
pursued that S9 is best for style as well as sensor.

-

Learning: If a person is using a mobile of Samsung, he is mostly aware of

features of the mobile and he will convince other consumers to buy the same
brand of mobile.

Personal factors
-

Age and life stage cycle: Consumption of Samsung mobile is also affected
by the stages of family life cycle like bachelor stage, newly married couple,
young & old couple and independent children uses different Samsung
phones according to their uses.

-

Lifestyle: A person’s lifestyle is reflected through his activities, hobbies,
opinions and thinking. A man believing in simple living and high thinking
9


will purchase Samsung Galaxy A while a man living luxurious life will
purchase Samsung Galaxy Note.
-

Occupation: Consumption is also influenced by the occupation of the
consumer. A labor employee will purchase a normal kind of Samsung phone
while at the top most level of the organization head will purchase Samsung
Galaxy S9.

-

Personality: Personality means some total of appearance, knowledge and

different types of skills. That is why a man believing in innovation will go
for S9 or S9+ while a person loving simple product may purchase a simple
Android phone.

b. Types of buying decision behavior
Samsung Galaxy S9 and S9+ are products that give people a Dissonance-reducing
buying behavior because they are quite expensive thing and people do not change their
phones frequently. Moreover, there are a lot of famous brands about smartphones in the
world, so it make people even harder to find out.

c. Buyer behavior process
-

Problem or Need recognition: A student is given a notice from the college
and he has to inform all other members of his class. However, he cannot
send this notice to others because of the ordinary mobile, so here problem
is recognized which can be solve with a smartphone.

-

Information search: Nowadays, Samsung mobiles are very famous amongst
people so information that regards its various mobile phones is easy to get.

-

Evaluation: This chart shows features that people want to experience in a
mobile. 29% of people consider battery life in mobile whereas only 2% of
them see a video capture as power of mobile. Looking at the comparison,
consumer can evaluate the mobile in very poor, average, good or very good.
Based on information in the chart, Samsung Galaxy S9 and S9+ will easily

be considered in good or very good group.
10


Figure 5. Chart of features users want to experience

-

Purchase decision: There are many reasons for which a customer can buy a
Samsung phone. For example, a person decides to buy a mobile of Samsung
because of high battery life, good processor and best price.

-

Post purchase behaviors: Depending on the customer satisfaction, post
purchase behavior may be positive or negative.
 Positive: When they satisfy with the S9 or S9+, they can give a lot of
positive recommendations to other people and even want to buy another
one for themselves.
 Negative: When they do not like the S9 or S9+, they may say bad things
about these products. This bad news may spreads very quickly.

11


5. Marketing strategy
a. Segmenting consumer markets
Demographic segmentation
Samsung Galaxy S9 and S9+ are designed suitably for both men and women. With
strong design, stylish products, these models target to young generations. The age group

of customers that S9 and S9+ primarily towards are the people between the ages of 18
and 35. Products are suitable people in middle class and upper class, the entrepreneurs,
office workers who often have to communicate.

Geographic segmentation
Products have been selling throughout the world but was first introduced in the
high population and developed cities, such as Barcelona, New York, London and Los
Angeles. In addition, the products has a huge foothold in the Asian market and Samsung
are trying to expand the market in North America.

Psychographic segmentation
Products attract to people who prefer active lifestyles, modern, love fashion and
high technology.

Behavioral segmentation
Samsung Galaxy has a large number of loyal customers for the product line Galaxy.
It is also one of the strengths of S9 and S9+.

We can see that Samsung Galaxy S9 and S9+ have the large and potential market
segments. It could help products to gain competitive advantages over other products.
The company should choose the most effective market segment to focus on. On the other
hand, the company should design a detail marketing strategy to attract customers.
12


b. Marketing targeting
Market segments are evaluated by three factors. Segment size and growth,
Segment structural attractiveness and Company Objectives and Resources.

Segment size and growth

The market of S9 and S9+ is worldwide and focus on areas of developed countries,
high-income people to increase sales and bring large profits for Samsung. However, the
great size and growth rate will definitely attract competitors with strong competitiveness.
For example, Apple with iPhone X and other product lines of HTC, Sony and Oppo.

Segment structural attractiveness
S9 and S9+ have numerous competitors such as iPhone X, Oppo F5, HTC U11.
Not only competitive in sectors, there are competition between products of the same
company, for example Galaxy A product line.

Company Objectives and Resources
Objectives of S9 and S9+ are to sell bulk products, to get attention of buyers, to
build credibility with customers and to expand markets. Good sources of major
investment, prestige, high quality products are interesting elements which can help
Samsung to achieve their goals. Target market segment of S9 and S9+ is differentiated
marketing. They are products for middle and upper middle class. On the other hand,
Samsung also produces the product line Galaxy A for average income customers to
spread market segment. Potential target markets of S9 and S9+ are developed countries
and some developing countries such as countries in Southeast Asia, North America and
China. The selection of the target market of the products associated with their target
customers (high-end consumers). Samsung did it well! When the products were put on
the target market, they instantly created a craze. Samsung brand has been increasingly
ingrained in minds of consumers whether they own Samsung products or not.

13


c. Positioning and Differentiation
Positioning maps


Figure 6. Positioning maps

Through the Positioning maps, we can see that Samsung Galaxy S9 and S9+ are
high quality products, with strong technical specifications, meticulous design and they
give us good user experience. In terms of price, S9 and S9+ are products in the luxury
segment. However, price of the products is not too high. In the customers’ minds, S9
and S9+ are truly high quality products with good price.

Value proposition

Figure 7. Value position

14


Samsung offers a good quality product but lower price when compared with
equivalent rivals. This is to increase competitive advantages, which could bring their
products to more consumers.

Product differentiation
Samsung Galaxy S9 and S9+ are sophisticated design and elegance. With a large
5.8-inch and 6.2-inch screen, respectively, while the screen of iPhone X is less than 5.8
inches (Seizt, 2018). Cameras with the title “The Reimagine” are the greatest difference.
It helps user not only to take beautiful pictures but also to record super slow-motion
videos with an incredible speed of 960 frames per second. Additionally, there are many
special features, such as AR Emoji, GIF Music, Live Translation, Intelligence Scan and
Multi Device Experience, which build a special S9 and S9+ (Haselton, 2018).

6. Marketing program
a. Product

Core benefits
S9 and S9+ are the smartphones using Android 8.0 “Oreo” mobile operating
system which aspires to be the user inanimate life companion and help simplify daily
life by providing entertainment, medium for communication, task management and also
monitoring health and well-being (Kelly, 2018).

Actual product
S9 and S9+ captures precious moments of the user’s life by taking photos in
innovative ways like dual camera, photos in the dark but brilliant, GIF music, super slow
motion videos. S Voice provides speech control of the phone features like calling and
messaging. It also helps users to ensure their privacy by Face Recognize feature. Air
gestures allow simple hand motions to accept calls, change music, browse web and view
photos. Voice-guided navigation with 3D map view and AR Emoji are unforgettable
interesting experiences for users (website, 2018).

15


Augmented product
Samsung warrants that their product is free from defects in material and
workmanship under normal use and service for a period of 1 year after the date of
purchase. Customer service includes local Samsung stores which provide services to
customers. Customers also feel free to contact through company website for product
support, helping with direct sales, media relations inquires… Many local stores offer
contracts where a customer can buy in the product in instalments.

Product life cycle
S9 and S9+ are entering into its growth. It has been approximately a month since
the first launch of these models and it has already become well known and publicized
throughout its target market via successful advertising. Their advertisements can be seen

almost everywhere their target market. They can be seen on TV, on newspaper and on
bus station walls. Knowledge of the products have spread via these means and most of
the prospective customers have already known about them. It will probably start its
decline period when the next model of product line Galaxy S is released, provided that
there is the same increase in technological discoveries as there have been in the past
three years. We can inference this from the older models and its product life cycle.

Figure 8. Product life cycle

16


b. Pricing
Pricing strategy for S9 and S9+ is price-skimming strategy as Samsung Galaxy has
oriented a great brand name in customers’ minds. Many people have obsession to buy
the products at once and share its new features with friends and family members.
The S9 and S9+ costs customers approximately $750. They are pricing it to get the
maximum amount of turnover for the highest price. The optimum trade off would have
been found via lots of market research. A lower price would make a higher turnover but
a lower profit due to the revenue barely outweighs the cost. A higher price would result
in a much lower turnover which, in turn, would lead to low profit.

c. Place
The main marketing system of Samsung Galaxy S9 and S9+ is vertical marketing
systems with Franchise organization. A marketer can use intensive distribution,
selective distribution, exclusive distribution and franchising to additional aspects of the
marketing mix. Samsung uses multiple distribution channels. They are distributed to
various telecommunication companies such as mobile phone retailers, Internet partners
such as Amazon and others. They also have Samsung retail stores.
In Vietnam, the channels of distribution of S9 and S9+ are mostly through

wholesalers and then passed on to retailers where consumers can buy products. There is
also another one where the distributors buy a large amount of products and sell them to
consumers.

Figure 9. Distribution channels

17


S9 and S9+ have been selling worldwide and internationally in order to get more
consumers, that is why Samsung manufactured the products in different countries.

d. Promotion
The target market of S9 and S9+ is the wealthy, young business class who require
mobile phone as a job tool for young fashionable sociality. In short, they are mostly
people were born after 1980. They either have a medium disposable income to begin
with or have enough income to be able to save up for S9 and S9+.
Samsung do not really provide any discounts because it would be up to retailers
and it might vary depending on the number of stocks and if it was parallel imported or
not. They advertise a lot. Their brand image and market share have power to make S9
and S9+ more popular. Personal sales is only really applied by retailer as customer
service by employees. This, unless in Samsung's shops, is completely uncontrollable by
Samsung.
In its promotion component of the marketing mix, SAMSUNG used Olympic
Game sponsorship. As the Worldwide Olympic Partner in the Wireless Communications
Equipment and Computing Equipment category, Samsung continues to create a digital
doorway into the Olympic spirit for the athletes, officials, staff, and fans worldwide.
Recently, in Winter Olympic Games PyeongChang 2018, Samsung expanded its
partnership to Wireless Communication and Computing Equipment category, widening
the product category to smartphones, tablets, laptops, personal computers, other

computing equipment, and desktop printers (website, 2018).

IV. Recommendation and conclusion
For the conclusion of this research, Samsung has already considered as one of the
current leaders in the smartphone market. Samsung Galaxy S9 and S9+ are marketed as
a “life companion" that includes features like navigating without touching the screen
and the built in health monitoring. Samsung is literally evolving its brand, not only to
innovate but also to make it live up to its mission on enhancing lives of its consumers.

18


S9 and S9+ device are their flagship smartphones possesses very innovative
technology that makes them the main rivals of Apple. The price is quite high that
differentiates them from the rest of other smartphone products and positions it in the
high-end costly smartphone like iPhone. Samsung uses segmentation strategy by
targeting different market segments that are working well for them too. They have
positioned their products well, and they have let their customers know they are offering
the best things for everyone. Most smartphone companies do not communicate the
benefits clearly and in a way that an ordinary person can understand. Samsung
communication strategy in its promotion component of marketing mix shows exactly
whom they are targeting and what they are offering to the targeted market.
To sum up, Samsung is surely on its way to be leaders in creativity.

19


References
Haselton, T., 2018. CNBC. [Online]
Available at: />[Accessed 23 3 2018].

Kelly, G., 2018. Forbes. [Online]
Available at: />[Accessed 23 3 2018].
Seizt, P., 2018. Inventor's Business Daily. [Online]
Available at: />[Accessed 23 3 2018].
website, G. o., 2018. Compare Apple iPhone X vs Samsung Galaxy S9. [Online]
Available at: />[Accessed 23 3 2018].
website, P. o., 2018. About Partners. [Online]
Available at: />[Accessed 23 3 2018].
website, S. o., 2018. Galaxy S9 | S9+. [Online]
Available at: />[Accessed 23 3 2018].

20