MARKET ANALYSIS AND CUSTOMERS

With a CAGR of 10 %, global market value for computing electronics

application sector is anticipated to be worth !"#$%&' billion b( )01*& +n a
global scale, Asia,-aci.c accounts for more than $/% of the market share&
While ! accounts for the largest share of the global market value on a
countr( basis, 0ndia and China surpasses the ! in terms of growth rate
anticipated in the near future& Among the application sectors, Computer
-eripherals account for the largest share of the entire market, driving a CAGR
of 1&1% during the anal(sis period )011,)01*& !uper Computers see as the
fastest growing application with a forecast CAGR of appro2imatel( 1#&)% b(
)01*, 3ideo Games are most demanding application on personal computers
based on the recent advancements and innovation technologies in gaming
industr(&
-rimaril( supported b( application sector 4, Analog 5 6igital
73, 7ablet, 6igital cameras 5 Camcorder, -ersonal Computers and
3ideo8Audio 9:uipment, the consumer electronics market to witness a value
of!"1&% trillion b( )01*& Geographical anal(sis shows the highest
Compounded Annual Growth Rate;CAGR< of 1'&%% is foreseen from Asia,
-aci.c region during the anal(sis period )011,)01*& 7he =iddle 9ast is not
wa( behind with a CAGR of 1'%, followed b( Africa at 1%&1%& >apan forecasts
to drive with a growth rate of 1$&1%& Among the sectors, Analog 5 6igital 73
accounts for nearl( $)&$% of the overall =arket share followed b( -ersonal
Computers at )/&/% holding the second position& Global market for
Consumer 9lectronics especiall( in 7ablet will record strong hold over the
ne2t / (ears driven b( raising demand in fast ? growth market in Asian and
other emerging countries& =a@or companies are located in >apan, !outh
Aorea and 7aiwan region and are dominating the consumer 9lectronics
0ndustr( Growth&
0ncrease in the incomes and spending power of individuals, the consumer electronic
market has witnessed a boom in sales, in the past few (ears& 7he ke( factor for this
market growth is increasing demand for BC6 73s and B96 73s& 7he digital
technolog( also has been witnessed rapid growth in the recent (ears& 7he consumer
electronics products segmented into semiconductor industr(, consumer automotive
electronics, home entertainment sector, and communications segment& 7he
consumer electronics products include mobile phones, BC6 73s, B96 73s,
smartphones, digital 73, -6As, 636 pla(ers, 673, portable media pla(ers, C673,
video games, home,theater s(stems, microwaves, printers and others& Currentl(,
the &!& market is dominating the market with largest market share of global
consumer electronics market, followed b( Asia region, particularl(, China& =oreover,
digital 73 forecasted to grow rapidl( in 0ndia and China& Deside, the digital 73
demand pro@ected to grow, with Asia,-aci.c and 9urope holding largest number of
673 homes& 7he C673 will also likel( to grow in Eorth America market in the ne2t
few (ears& With the increasing competition, more companies are looking to bring
innovative products and technologies in the market& 7he global consumer
electronics market is e2pected double digit growth in the coming (ears&
7he consumer electronics market research aims at providing a complete
account of the above mentioned sectors& 0t also provides detailed information
on industr( siFe and in,depth view of the industr(Gs ke( competitors& 7he
consumer electronics market research makes a careful stud( of all the past
reports and makes estimates based on them& Hurther, it studies the global
outlook in the consumer electronics market&
7he consumer electronics industr( has been witnessing a phenomenal
growth globall( over the past few (ears& 7his growth can be attributed to the
revolutionar( technological developments taking place in the consumer
electronics industr(& 7he revolution brought b( the digital technolog( has
enabled the consumer electronics sector to pro.t from the growing
interaction of digital applications, such as camcorders, 636 pla(er8recorder,
still camera, computer monitor, BC6 73, =obile phones, etc& According to
Consumer 9lectronics =arket Horecast report, the global consumer
electronics market is forecasted to grow at a CAGR of around /% during
)001,)01)& Also, during the same period, the global consumer electronics
shipment will grow at a CAGR of around /%& 3arious factors driving the
future growth& +n the regional front, we found that the American region,
mainl( !, is driving the global consumer electronics industr(, closel(
followed b( 9urope& 0n future, Asia -aci.c region will constitute the ma@or
portion of the consumer electronics industr(, mainl( due to the increase in
demand from the developed countries in the region& Also, the American
region along with the 9uropean region will see a decline in their market
shares because the markets there have attained saturation and onl( the
advent of new technolog( will boost the demand& 0ndiaGs consumer
electronics devices market, de.ned as the addressable market for computing
devices, mobile handsets and A3 products, is pro@ected at around !")*&%bn
in )010& 7his is e2pected to increase to !"#/&'bn b( )01#, driven b( rising
incomes and growing aIordabilit(& Growth in some product categories dipped
in )001, but the market recovered strongl( during the festive sales season
that ran until 6iwali, with man( retailers reporting )0,#0% growth& !pending
on consumer electronics devices is pro@ected to grow at an overall CAGR of
1)% through )01#, with the ke( segments including touch,screen mobiles,
for BC6 73 sets, set,top bo2es and notebook computers& =uch of the growth
will be driven b( growing demand from 0ndiaGs rural population&
STRATEGIC OBJECTIVES OF SAMSUNG ELECTRONICS
4.1 Segmentation
Market segmentation has three levels including
1. Strategic Segmentation-vision, strategic intent and product benefits
2. Managerial Segmentation-resource allocation, alignment and planning
3. Operational Segmentation-Marketing programs such as advertising, sales and
distributions.
Segmentation in the market-driven strategy process is segments, value
opportunities, ne market space, matching value re!uirements ith
capabilities, market targeting and strategic positioning.
"ctivities of market segmentation are#
1. $efining the market to be segmented.
2. %dentifying market segments
3. &orming market segments
'. &iner segmentation strategies
(. Selecting the segmentation strategy
)he firm uses mainly lifestyle and demographic variables in segmenting
their market . )he firm should hoever lay more emphasis on the changing
lifestyles of the young generation and cater for their ever changing needs. %n
order to regain market share, the company can segment the market into rural
and urban people. )he rural targets ill help increase the market share. )he
urban should comprise mainly the people aged 1(-3*. )his ought to be their
Segment
Marketing
main segment in order to compete favorably ith brands in the same market
segment. )his target group of people focuses mainly on music, leisure and
has the flair for hip gadgets in the market.
Levels of segmentt!on
!amsung is targeting the customer market b( dividing it into diferent segments and
oIering each segment diIerent product based on their common characteristics
Bses fo" Segment!ng Cons#me" M"$ets
7he consumer market for samsung products has been divided using four schemes of
segmentation variables i&e geographic, demographic, ps(chographic and
behavioural
Geog"%&!' Segmentt!on
Reg!on( !amsung has divided the Asian market into diIerent geographical regions
such as northern, eastern and southern areas
C!t)( !amsung is targeting diIerent countries of Asia diIerentl( b( dividing as
diIerent markets such as 0ndian =arket, China market&
Demog"%&!' Segmentton
Age( age factor is not reall( involved in !amsung segmentation but its most users
are adults enthusiastic people
Fm!l) s!*e( !amsung -roducts are oIered for all famil( siFes
Gen+e"( !amsung home theater s(stem is e:uall( bene.cial for male and female
In'ome( !amsung -roducts are oIered with var(ing features to diIerent peoples
based upon their income level i&e& low ;upto " 1/00< lower middle ;"&1/00,$000<
middle ;"$000,/000< upper middle ;" /000,'000< and high ;above" '000<
Occasions
Benifits
User status
Usage rate
Loyality status
O''#%t!on( !amsung has divided the consumer into diIerent categories based
upon their occupation i&e& businessman, self emplo(ed, students and teachers
E+#'t!on( !amsung is also keen to know about the education level of its target
market i&e& illiterate, school / to 1/, under graduate, graduate and postgraduate
,s)'&og"%&!' Segmentt!on
L!fest)le( !amsung is also classif(ing customers on diIerent levels based on
diIerent lifest(le of the people i&e& culture oriented, sports oriented, outdoor
oriented
,e"sonl!t)( customers are diIerentiated on the var(ing level of personalit( such
as compulsive ambitious
Dehavioral !egmentation 4
Dene.ts 4 Consumer are also targeted diIerentl( based upon the bene.ts that are
seeking in !amsung electronics i&e&, some people ma( want good :ualit( , some
ma( want low services and some want good services&
ser !tatus 4 !amsung is keen to know user status of its target consumer in order to
better oIer its product and therefore the( are divided into e2,user, potential user,
.rst time user and regular user&
Bo(alit( !tatus 4 7arhet market of !amsung ma( contain people with diIerent
lo(alit( status and therefore !amsung is targeting these customer diIerentl( based
on their lo(alit( i&e&, hard core lo(als, split lo(als, shifting lo(als, switchers&
Targeting:
)he market targeting options include a single segment, selective segments, or
e+tensive segments. ,hen segments are not clearly defined, product
speciali-ation or product variety strategies can be used.
Market targeting decisions need to take into account product-market life cycle
stage.
%n emerging market stage risk and uncertainty is too high, in groth stage
benefits from prior e+perience but it is more intense than emerging stage, and
in mature stage multiple targeting strategies can be done such as product
variety or product speciali-ation.
Samsung target the upper middle class professionals. )his usally have busy
schedules and hence need to communicate ith their colleagues and families.
)he secondary target are the high school college and graduate ho need
devoices hich are multifunctional and portable. )he secondary target includes
medium si-e corporations and they aim to help managers and employees have
crucial data access on the go. )hus the company has to main segments and
this is called multi segments targeting. )he company should hoever enhance
target group to incorporate more teen activities that are the main target of main
compitiotrs.
Positioning
)he concept to position the brand may be based on the functions provided by
the product, the e+perience it offers or symbol it conveys.
$eveloping positioning strategy re!uires integrating the product, price, value
chain, and promotion strategy to focus them on the market target. )he
positioning strategy matches the firm.s capabilities ith the buyer.s
preferences.
)he positioning strategy that the company uses to market its ne products is
the positioning of the ne product as a convienient value added device hich
can be used for professional and personal use by young professionals. )here is
also focus on convenience as it incorporates other features such as music,
internet access, laptops. )his positioning strategy enhances sony products as
professional and hip.
Samsung electronics produces consumer electronics in five categories , they
are )/.s and video 0audio players , mobile phones, computers , cameras , home
appliances . e have discussed the points of parity and points of differentiation
of Samsung ith its competitors
)/0/ideo0audio players 1 Samsung has become the company ith the highest
sales of )/.s . )hey ere the first to introduce 3$ 2ed tv.s .)hey have alays
had a head to head competition ith sony in the )/ segment. %n the past fe
years Samsung has managed to become the leading producers of )/. )heir
possession of Samsung chip has also enabled them to come up ith innovative
products like the smart tv in response to sony.s internet tv . )hey have been
successful in integrating technology ith electronics thus becoming the market
leaders . they also have the advantage of manufacturing their )/.S in their on
factory hile sony outsources the manufacturing
3oints of parity 14oth sony and Samsung give importance to innovation and
picture !uality . both had a tough competition introducing slim0ultraslim )v.s
.sony introduced internet )/ , hile Samsung introduced smart )/ . Samsung
also introduced 3$ 25$ tv
Overall positioning#- better !uality and design , innovative features value for
money , integral part of family
6ome appliances#- Samsung has a variety of products under home appliances
category . )hey include air conditioners, microave oven , refridgerators
,ashing machine , vacuum cleaners , etc . %n india Samsung has tough
competition from another south 7orean company 28.
-oints of parit(4, 7here are a lot of popGs between !amsung and BG & Doth
concentrated on innovation and brought new technologies& BG bought
innovation in the form of side b( side door fridge , automatic doors for fridge
,health guard in AC , tallest cooler in fridge &while !amsung imtroduced
innovation like s series compressor in AC,6igital inverted compressor that keeps
food fresh for ' da(s ,uniform cooling , HRECC ? new sound of freshness ,
bubble generator in washing machine ,biosleep 4,ac sets temperature according
to bod( temperature&Doth concentrated on health( lifest(le&BG Js tag line itself
is lifeGs good & while !amsung concentrates on keeping food fresh , pure air from
ac , protection of soft clothes and other product bene.ts &
+verall positioning4, health( living , innovative product features ,
energ( eKcient hence cost saving
Cameras#-Samsung is not a very big player in cameras segment buut still its a
popular brand . it has got tough competition from canon and sony. 9ameras
segment include handy cam , digital cameras .
Points of parity:- 3roduct features and innovation like super -oom , 2:* degree
ide angle shots in sony . better picture !uality in canon . dual vie and multi
vie cameras from Samsung
Mobile phones#-samsung is one of the highest sellers of smart phones .it has a
tough competition ith apple . )here is a tough competition beteen apple.s
iphone and samsung.s gala+y . %n india Samsung has tough competition ith nokia
. it has also raced ahead of nokia .)hey used the possession of their on chip to
their advantage and bought about lot of innovation
Laptops#- Samsung is an emerging player in laptops . )hough it has its on chip ,
it uses intel chip in its laptop to be on par ith the competitors . it has competition
from dell and hp
Points of parity :- )he ma;or points of parity is performance and style .
!erall positioning #- samsung laptops have a better version of the consumers
basic e+pectations from a laptop
!erall brand positioning of sams"ng
"ll samsung products focus a lot on prod"ct benefits and feat"res . )hey
ant to provide a variety of benefits and features from a single product
Most important feature is the integration and "se of technology in
delivering the necessary value
#nno!ation is also a key criteria .
"ll samsung products focus on !al"e for money . one of their positioning is
that of getting more than hat you pay for .
)hey also position themselves as better pro!iders of the points of parity than
their competitors
PS#T#$#$% ST&T'M'$T ( S&MS)$%
&or every person ho ants to get the ma+imum value for the price that
they pay .
)he samsung electronics is an electronics firm that provides electronic goods
that satisfy all your e+plicit and implicit needs more than your e+pectations .
<nlike other electronic firms , our products are innovative , at the same time
provides ma+imum value . on the hole its affordable lu+ury