Thursday, April 4, 2019

Market segmentation and marketing mix of LG and SAMSUNG

Market naval division and trade placeing variety of LG and SAMSUNGDefinitions Market part The dividing of all possible clients into crowds found on their needs, age, income, education etc. (Cambridge billet Dictionary, n.d.) market integrate The crew of actions a play along uses when selling a reaping or avail. These be often described as the intravenous feeding Ps Product, price, promotion and place. (Cambridge blood line Dictionary n.d.) Aims This piece of work aims to analyse and assess the foodstuff naval division and groceryplaceing mix characteristics of and authority for Samsung compared with LG. Due to the very broad grocery sectors and product ranges of both companies, this report depart concentrate on the comparatively new product sector of fittingness manages when considering both market cleavage and mix. Interest in these products has gr declare due to the availability of vesture devices and the suitability of technology, especially Smart earpi ece apps, to assist in this pursuit. There has also been change magnitude sentiency and concerns ab protrude care fit and healthy. According to Vecchione (2012) the market for ego- supervise functions such(prenominal) as high crosscurrent pressure and blood glucose levels development wire slight wearable devices is growing faster than Telehealth (the makeicial NHS version of technology to supervise patients remotely in their avow collection plates). The proportion of wireless devices used to monitor health conditions is predicted to increase from a low level of 5% in 2011 to as high as 80% by 2016 (Ibid), with the resulting readings being stored and analysed on keen phones. Comp either backgroundAn Introduction to Samsung Samsung was founded in Suwon, Korea in 1969. Its vision 2020 is say as being Inspire the world, create the future (Samsung website, n.d.) Samsung Electronics is a spheric leader in semiconductors, telecommunications and digital media technologies wit h sales of 143.1 billion U.S. dollars in 2011 and 221,730 employees airing across 72 countries (Ibid.) Samsung has been the worlds largest television manufacturer since 2006 and is the worlds largest producer of liquid crystal display panels. The union also has the greatest share of the international market for memory chips. With the macrocosm of the Samsung Galaxy S meandering(a), the gild has taken the lead in global sales figures for smart phones as of 2013. Samsung has also established a liberal position in the tablet computer market with the Android-powered Samsung Galaxy bridle offering square contestation against the iPad from Apple. The headquarters of Samsung Electronics Co., Ltd. are situated in Suwon, South Korea and this is also the flagship union of the Samsung Group. In 2013 the president of Samsung Electronics was Boo Keun Yoon and the goals of the company encompassed both quantitative ($400billion global sales and result one mark in the global IT indus t ravail) and qualitative ( excogitation products that enrich peoples lives and add together to a sociablely responsible future). This is a real sign of the measure as organizations increasely take in to demonstrate corporate responsibility and division to social or shared value, i.e. doing well by doing good an attempt which can provide additional competitive proceeds (Kramer, 2011). Roy (2013) explains this further as being the next stage of business thinking, embedding contri preciselyions to wider society as an built-in part of corporate strategy. Samsung operates in westbound europium, the Far East, and the coupled States increasing its share of the mobile phone market in Western Europe everyplace the past three years at the expense of companies such as Apple and Nokia. In 2011, for example, Samsung had only a 14% market share in Western Europe (compared with Apple at 21% Nokia at 20%). By 2013, Samsungs had increased its share of the Western European market to 45% App les share falling to 20%, and Nokias market share plummeted to just 5%. other competitors including Blackberry fared even worse, losing practically its 17% market share to Samsung and Apple. HTCs Android smart phones also struggle to compete with the two market giants, especially Samsung, who managed to generate more income than Apple in 2013 (please see figure 1 below). Figure 1 Samsung and Apple profits 2011-2013 ($ billion) Source Statista xiii Samsung products have held the number one spot for market share including televisions, semi-conductors (the original product which the firm originally manufactured) and mobile phones (Samsung, n.d.) Samsung is continuing to research and jump new innovative products such as LCDs and semi-conductors. An introduction to LG There is about resonance in the LG story compared with Samsung LG is also a Korean company and it to a fault was founded about half a century ago in 1958, originally k nown as G hoarstar. It was founded on the ethos of creating a happier, better animation (LG website, n.d.) Since 1958 it has progressed into the digital age through technological development, originally of home appliances such as washing machines and radios. Then in 1995 the company was renamed LG Electronics, acquiring the United States based company Zenith (Ibid.), hence opening up the vast American market. This was followed in 1997 by LG developing the firstborn digital mobile handset and being the first company to be certified for the production of digital television sets. In 1998 the company developed the 60 inch germ plasm TV followed by a joint venture with Phillips to create LG Phillips LCD (Ibid.) 2002 sees LG export GPRS1 colour mobile phones to Europe and in 2003 achieve periodical export volume of 2.5 million units. By 2005 LG had become the fourth largest supplier of mobile handsets worldwide plus the firm was the pioneer of spiritbook computers (LG website, n.d.) 2008 sees the company launch a new glob al identity stylish design and smart technology, in products that fit our consumers lives (LG website, n.d.). In 2009 LG becomes the third largest supplier of mobile phone handsets worldwide, and 2010 saw the company launch the worlds first 3D LED TV. According to their website LG brand identity focuses on self expression and a promise of satisfaction to its customers using the phrase delightfully smart as its strapline. The LG logo itself is said by the company to gibe a circle around the customer epitomising the corporate value of establishing a lasting relationship with and achieving highest satisfaction for customers. This is the basis of relationship merchandising and is rouge to attracting and retaining customers in a world where consumers are bombarded with sales messages. Market segmentation As Drucker neatly put it, the purpose of business is to create customers (Swaim, 2010, p.14) and to do this requires looking from outside the company from the customers point of pano rama and answering questions about market segmentation, including what does the customer buy and what is value to the customer? Samsung and LG market segmentation Information to guide segmentation can be collected through carefully planned market research and the depth psychology of questionnaire surveys. Here are approximately market segments that leave behind be or so relevant to the seaworthiness monitor market Students tend to be the virtually technology-literate and represent a well defined segment in impairment of the previous(predicate) adoption and use of new technologies. They also assist in promoting and recommending products through the social media methods plus can be helpful in co-production and the development of the product. The importance of the use of social net running(a) sites (SNS) in the consumer buying action essential not be underestimated seeking opinion from other consumers is now a pre-requisite of the purchase decision-making process. Interbrand ( 2012) suggests this may always have been the face but a feature of the past a few(prenominal) years is the increase in the speed with which opinions and consumer influence can be spread. Nielsen (2010) discovered that most lucre users seek out re trip ups and consider the brand recommendations of fellow consumers before at long last deciding on a purchase (Figure 2). The graph illustrates that recommendations from friends and family are the primary(prenominal) source of make loveledge most devoteed. A key factor to note here, however, is that official brand websites can be as influential as online consumer opinions but they have to be more than just promotional messages. In comparison, advertising in newspapers and on radio and TV are less trusted by consumers. Figure 2 Percentage of consumers who have trust in different forms of advertising Source Nielsen, 2010 Young professionals are other market segment for these types of products the main difference with the student s ector is the intimately higher income and hence greater willingness to spend more on the product. This group is arguably carrying on the great tradition of early adopters too the UK market has always been at the forefront of adopting new technology, including broadband, digital TV and Smartphone draw and quarter (Ofcom, 2010). Wireless technologies such as these fitness monitors have been no riddance with the digital age being fully embraced by the early adopters in the UK as soon as the new products have been released by the study manufacturers including Samsung and LG. There is a third key market segment for fitness monitors revealed by research evidence and that is young women who tend to be more interested in health and using exercise as a way to keep slim as much as keeping fit (Clohessy, 2014). The functionality of the new generation of fitness monitors includes features such as the number of calories being burnt off as exercise progresses, with different using up rates depending on the type and intensity of natural action. These last two market segments also have the advantage of containing a greater proportion of working people who are consequently much less influenced by the impregnable price of the product. They are also proactive Twitter and Facebook users and contributors, reading reviews and providing comment as part of the consumer decision-making process. Marketing mix The marketing mix, or four Ps (product, price, promotion and place) is a tool integral to the development of marketing strategy the specific tactics for the study parameters of the product or service can be defined. In more recent literature, the marketing mix has been expanded to include the seven Ps (Kotler, 2012,) encompassing more elements as shown below in Figure 3. The basic four mix elements watch but are joined by the new criteria of people, sensual evidence or environment, and process these are considered by some to better describe the marketplace influences. Kotler (2012.p.31) describes it as holistic marketing which recognizes and reconciles the chain of mountains and complexities of marketing activities. Figure 3 the seven Ps of the Marketing cock Source Kotler, 2012 However, this report will be concentrating on the four spirit marketing mix elements of product, price, promotion and place. Samsung marketing mix In the typeface of Samsung, the tactics adopted to satisfy some of the marketing mix elements mogul be considered to be Product The Samsung fitness monitor is called Gear primed(p) (Figure 4) and is designed for the wrist it has a curved display and several apps including a built-in heart rate monitor and work out counsel system. Promotion Celebrity endorsement is not a new concept and has a long history dating back to the early 1900s. For example, tally to Ketcham (2001), Buffalo Bill Cody was pictured on a trade witticism and supplied a testimonial for the back of the card, in which he praised the benefits of Ki ckapoo Indian Oil. some other trade card visualized the image and name of Sarah Bernhardt, connecting her with Carters Liver bitter (Ibid.) Samsung has already successfully used celebrity endorsement to push its products, using the sportsmen and women at the Sochi spend Olympics (Samsung, n.d.) This philosophy can be extended to use the younger sports-oriented consumer, with the careful selection of sports stars providing a industrial-strength enticement for consumers to try the product. It might be a footballer or tennis player, perchance connected with a major sporting event. Price If a bounteousness price is to be charged for the product, Samsung needs to provide a strong competitive advantage for the Gear primed(p) over the competition, curiously LG. A good way of securing willingness to pay a higher price for a product is to add value through additional features or superfluous services. Samsung is well regarded for its innovative products and is number one in the s mart phone market currently. This kudos will most probably rub off onto the fitness monitor too provided the right approach is adopted in terms of engaging the consumer through the social media focusing on Facebook and Twitter. put down With its domination of the Smartphone and tablet computer markets, Samsung will be able to figure out not only its on-line presence for sales of the Gear Fit monitors but also capitalize on the goodwill and very strong presence in the high street. All the mobile phone intercommunicate companies will be keen to stock the innovative Samsung products including fitness monitors, as will the supermarkets and electronics stores. Samsung already produces medical monitor equipment for the hospitals and clinics this fitness monitor could be added to the product range for healthcare too. LG marketing mix The marketing mix tactics adopted by LG could conceivably include Product In terms of the fitness monitor, LG has developed a couple of complementary p roducts the Lifeband bracelet (Figure 5), with a touch screen and the heart rate earphone monitor. The Lifeband plays music, receives calls and texts, has a three axis accelerometer and altimeter for recording exercise effort, and can track the street of the wearer using a Smartphone app. Promotion aligning a brand with major events to create and maintain an identifiable profile is central to the promotion ground of the marketing mix. The natural target events for the promotion of the Life band will include the London Marathon and the Great North Run monitoring the heart rate during a marathon event assists with pacing and avoids heavy the heart (Sinha, 2014). Price maintaining a premium pricing policy would be possible with such an expanding market, but LG needs to ensure the consumer is willing to await to pay that premium through constant product enhancements such as the music functionality and GPS capability. These enhancements need to be communicated and discussed with c onsumers through engagement through social media hopefully developing that relationship with the customer central to the LG ethos, as depicted in the encircling logo. Place Apart from the company website there must be considerable scope for collaborating with franchise/nationwide gyms and exercise equipment companies to promote the LG Life band. There will also be increasing effectiveness in tendering for Clinical Commissioning Group contracts for Telehealth2 and telecare 3 products the wearable fitness monitor providing a cost-effective and simple to use way for patients to monitor their own condition and feel more in control of their health. Conclusions * some(prenominal) Samsung and LG Electronics have identified the fitness monitor market as a potential area for considerable growth over the new few years. * They have both developed attractive products to promote to the particular market segments highlighted in this report, including students, women interested in staying fit t hrough calorie numbering as well as exercise, and young professionals. * Pinkse and Slade (2004) remind us that competition is greatest amongst brands that are most similar and it seems that these two large Korean electronics firms need to distinguish themselves from the other in order to create a unique selling proposition (USP) for their product(s) and to generate a desire for the product and organisations. Recommendations 1. It would be beneficial to take a longer term view of demographic trends, particularly in view of the senescence demographic, to predict any smorgasbord in the potential market for fitness monitors. Such information is supplied by the Office for subject area Statistics Census 2011 data and population projections (ONS 2011). 2. Exploiting the potential of social media to promote the brand identity through taking advantage of the buzz around the social side of fitness and exercise which exists particularly amongst younger target market segments. 3. Celebr ity endorsement is a in reality effective way to promote products that are the subject of culture and desire, particularly amongst the youth and young adult market. Samsung used sports men and women at the Sochi Winter Olympics to promote their products (Samsung, n.d.) perhaps they can continue this and maybe LG could find their own set of celebrity endorsers for their products? 4. However, considering the increasing demeanor expectancy combined with the ageing demographic (a greater percentage of the population being aged over 55, 65 and particularly 75 there is a considerable untapped market for promoting fitness monitors to this group of consumers. The lengthier retirement periods experienced by umteen people nowadays provide considerable potential for promoting a symmetric exercise regime to be built into their daily routine. The fitness monitor is well suited as an aid to a healthier old age as it is simple to use, portable and wearable, and can be promoted as positively r educing the likelihood of long term illness or disability. This is backed up by the evidence that highlights regular physical activity as the single most important lifestyle behaviour change for keeping healthy (Colberg et al, 2010) preventing type 2 diabetes, reducing high blood pressure and vastly reducing the risk of cardiovascular disease and increased mortality. 5. Pursuing the fitness monitor market and expanding it into the Telehealth sector will have considerable potential too as the NHS and healthcare professionals are more and more encouraging people with long term conditions to be more proactive about self-care and management. The Department of Health (2011) estimates there are around 15 million people in the UK with long term conditions and that as many a(prenominal) as 80% of these people could be supported to manage their own condition including though the use of effective self-monitoring. Not only will this reduce pressure and costs on NHS services, including keepi ng people out of hospital but there is evidence that outcomes for patients are improved too with people more confident and experiencing a better quality of life (Challis, 2010). Word count = 3,093 References Colberg, S., Sigal, R., Fernhall, B., Regensteiner, J., Blissmer, B., Rubin, R., Chasan-Taber, L., Albright, A. Braun, B. 2010. Exercise and Type 2 diabetes. 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Accessed 11/10/2014. 1 GPRS (General Packet Radio Service) is a technology change phones to transfer data quickly, whilst still allowing telepho ne calls to be made. 2 Telehealth (or telemedicine) is defined as the remote monitoring of physiological functions including blood pressure, temperature and blood clams levels, particularly as an aid to the self-management of long term conditions by patients in their own homes (Source RCN website, n.d.) 3 Telecare covers a number of systems of sensors and alarms which monitor the safety of the lifetime environment enabling people to remain living at home who otherwise would require care in a community hospital or care home. Examples of telecare devices include fall detectors, personal alarms, flood detectors and utmost(prenominal) temperature detectors (Source RCN website, n.d.)

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