Smartphone industry applevs samsung
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SMARTPHONE INDUSTRY Halil Yildirim
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TABLE OF CONTENT IntroductionMarket developmentFinancial positionsCompetitive advantageChanges and future of the industry
S-T-P strategies Porters’ 4P’s Recommendation Sources
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INTRODUCTION South Korean, founded in 1938 Wide range of product categories:Smartphones, Tablets, Laptops, TV’s, Cameras, Office electronics (Printers, Hard Disks etc.), Home electronics (Refrigerators, microwaves etc.)
#1 in the smartphone market since 2012
American, founded in 1976 More narrow range of product categories:Smartphones, Tablets, Laptops, Computer, MP3 player, digital media player, OS,
#2 in the smartphone market Several lawsuits
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MARKET SHARES Development in market sharesApple 18.8% (2011) to 11.7% (2014)Samsung 17% (2011) to 24.9% (2014)
Product launch parallels (top models):
* 2 in Q3 2014
Vendor 2011
2012
2013
2014
Apple 1 1 1 0*Samsung
2 3 4 4
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FINANCIAL POSITION Share price: $118.93 0.07(0.06%) Volume: 24,814,402 52wk Range:70.51 - 119.75 Market Cap: 697.51B P/E ratio: 18.44 Revenue Growth: 21.80%
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FINANCIAL POSITION Share price: $1155.38 Volume: 196,891 52wk range: $968 - $1349.160 Market capacity: 151.17 B P/E Ratio: 7.50 Revenue Growth: 13.60 %
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COMPETITIVE ADVANTAGE Own chip manufacturer Control on manufacturing process Vertical integration Strict Software standards Closed eco system Easy sync Many suppliers (Hon Hai Precision, Pegatron Corp.)
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COMPETITIVE ADVANTAGE Manufactures everything Bring products to the market faster Able to rapid change Pricing strategy Largest tech. Company because of the revenue No Suppliers
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CHANGES AND FUTURE OF THE INDUSTRY
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CHANGES AND FUTURE Disruptive innovation & Incremental innovation Updated software Mobile payment
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SEGMENTATION Geographical: Global presence own retail stores, electronics stores
61 countries Demographical: Age: 16-29 students, young adults, business professionals
Income: Middle/high Psychographic: Technology enthusiasts Customization
Geographical: Global presence own retail stores, electronics stores
62 countries Demographical: Age: 14-55 students, young adults, business professionals
Income: High (/middle) Psychographic: Music/gamer, media/design enthusiasts Simplicity
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TARGETING
Primary target groupUpper middle class professionals
Secondary target groupHigh school/college students
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POSITIONING High quality Mass consumers Wide price range Feature oriented
Premium brand High quality High price Design and trend oriented
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PRODUCT (4P’S) High-end: Galaxy S5, Galaxy Note 4 Mid-range: Galaxy S5 Mini Low/mid-range: Galaxy Ace 4
Premium: 6, 6 Plus, 5s Mid-range: 5C
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PRICE (4P’S) Cost (Hungary): Galaxy Note 4 ~ $ 975 Galaxy S5 ~ $ 735 Galaxy S5 Mini ~ $ 490 Galaxy Ace 4 ~ $ 205
Strategy: Price skimmingCompetition pricing
Cost (Hungary): 6 Plus ~ $ 1 035 6 ~ $ 900 5S ~ $ 650 5C ~ $ 550
Strategy: Price skimming
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PLACE (4P’S) Electronic retailers
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PROMOTION (4P’S) Tradeshows, Flyers and Postcards Videos Workshops & Events Spent $ 14 billion on advertising in 2013
Cultivate an air of secrecy and intrigue to fuel speculation and buzz Create the illusion of scarcity to increase demand Focus on a "friendly" customer experience Wow customers through design and packaging Create a passionate brand community of fans who identity with Apple's brand values Spent $ 933 million on advertising in 2013
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RECOMMENDATION & STRATEGİESMARKETING SPENDING OF APPLE AND
SAMSUNG
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Below 42% of iPhone owners had owned an iPhone previously While 43% of Samsung owners had previously owned an Android phone. Apple does a better job of getting Android users to convert to iOS with about 20% of its customers coming from Android vs. only 7% of Samsung customers coming from iOS.
Apple has a bit higher retention rate at 42% vs. 38% for Samsung. Apple does a better job of switching Samsung customers at 19% vs. Samsung only converting 7% of its users from Apple.
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RECOMMENDATION FOR SAMSUNG (MARKETING )
-Increasing Brand Loyalty. Not too focused on the features. -Creating own Ecosystem in order to differentiate itself from other Android Phones. It will increase its brand loyalty as well
-Marketing Activities of Samsung is quite promising both in digital and conventional media. (Buzz Marketing, Media Marketing, Sponsortships)
--Increasing the Loyalty! (Low compared to Apple) It’s more about positioning and bonding activities than simply adverising via Celebrities or Media. The Message , Contend is more important than the popularity itself.
-Ie: ‘Celebrity Packed Selfie’ on Oscar Show with Galaxy SIII--Company should more rely on TV Shows, appearence on the movies etc..-- Instead of following position , company should lead both in communication and production* (“The Next Big Thing is here”, ‘The Next Big Thing’
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RECOMMENDATIONS FOR APPLE
-Apple’s main marketing strategies- create brand loyalty and excitement-“Apple lifestyle”. Their commercials are simple, yet elegant, and displays this “Apple lifestyle” to the consumer.
-product placement in movies- 30% of films from 2001 to 2011. From 2008 to 2011 Apple has reportedly spent $647 million on iPhone placement in movies
--Need to change its marketing strategy from overlaying on emotional evocative ads.
--Using of Buzz Marketin, using of Celebrities
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SOURCES http://www.idc.com/prodserv/smartphone-market-share.jsp https://prezi.com/635kt-vpajlq/segmentation-strategies-used-by-apple-and-samsung/
http://stpsamsungmobiles.blogspot.hu/ https://prezi.com/9varrsfnvjfd/strategy-analysis-formulation-of-apple-inc/ http://www.slideshare.net/mandarghanekar/group-assignment-22 http://matiesmarketing244.com/2013/09/18/samsung-vs-apple-the-marketing-war/http://www.forbes.com/sites/chuckjones/2013/08/20/apple-and-samsung-who-could-win-the-smartphone-war/