Samsung Target Market

Target Market Samsung’s targets a very wide range of consumers ranging from normal day to day usage devices to industrial standard equipment. The usual target age group of customers range from the 20s to 50s or even older, as long as the person has the ability to purchase and use the products that Samsung has to offer in the market. Teenagers to early adults (aged 14-25). This age group of Samsung product consumers is usually Samsung’s smartphone target customers as they are mostly technology savvy. This group of customers is growing as Samsung saw that this group has more spending power in recent years compared to in the past. Adults (aged 26-50). This specific group of targets the largest portion of Samsung’s target market as this is the group of consumers that have the most ability to purchase any of the product Samsung has to offer in the market be it smartphones, smart television, cameras or any other household products like vacuum cleaners or washing machines. This portion of customers will continue to grow in the years to come. Samsung target customer segment Type of segment ation Geographi c Demograp hic Segm entation criteri a Samsung IT & Mobile Communicatio ns Samsung Con sumer Electronics Samsung Dev ice Solutions Region 80 countries worldwide 80 countries worldwide 80 countries worldwide Densit y Urban/rural Urban/rural Age 18-65 25-65 Urban/rural 25-60 Gende r Males & Females Males & Females Males & Females Lifecycle stage Bachelor Stage Newly Married Couples Bachelor Stage Newly Married Couples Bachelor Stage Newly Married Couples Full Nest I Full Nest II Full Nest III Empty Nest I Empty Nest II Full Nest I Empty Nest I Full Nest II Empty Nest II Full Nest III Students, employees, professionals Employees, professionals Students, employees, professionals ‘Hard core loyals’ ‘Soft core loyals’ ‘Hard core loyals’ ‘Soft core loyals’ ‘Hard core loyals’ ‘Soft core loyals’ ‘Switchers’ ‘Switchers’ ‘Switchers’ Solitary Survivor II Behavioral Degre e of loyalty Full Nest II Full Nest III Solitary Survivor I Occup a-tion Full Nest I Sense of belonging Perception of trendiness Advanced functionality Userfriendliness & simplicity Benefit s sought Overall high quality Person a-lity Determined Ambitious Userfriendliness & simplicity High quality for competitive price Easygoing Advanced functionality User-friendliness & simplicity Overall high quality Ambitious Trendy User status Social class Psychogra phic Lifestyl e Cost-conscious non-users, potential users, first-time users, regular users, and ex-users non-users, potential users, first-time users, regular users, and ex-users non-users, potential users, first-time users, regular users, and ex-users Middle class Upper class Working class Middle class Middle class Upper class Mainstreamer Succeeder Resigned Mainstreamer Mainstreamer Aspirer Explorer Aspirer Succeeder Reformer Explorer Explorer SWOT Analysis Strengths – Innovation and design – Low cost production – Focus on environment – Large market share – Hardware integration with many open source OS and software – Customer loyalty – Good industrial standards – Strong inventory management Weaknesses – Samsung lacks its own OS / software – Focuses on too many variation of products – No focus on one core competency product – Very strong competitors (Eg: Apple) – Samsung has a low profit margin – Products may be deemed as not user friendly at times Opportunities Trendy – Raising Smartphone Market – Increasing portable promoting industry – Growing interest for quality requisition processors – Evolution of tablets business – Gaining patents through acquisitions Threats – Slow market in developed countries for smartphones – Rapid change in technology – Increasing Competition – Breached patents – Apple’s iTV launch – Declining margins in hardware production Increasing Competition in Smartphones Manufacturing of smartphones are now much easier than ever as more companies are seen entering the market and markets are becoming saturated. People are switching to smartphones to connect to the internet in developing countries. Smartphones are becoming important to connect people to the web as fixed-line telephone networks are often weak in emerging markets and building new ones is expensive. China, the world’s largest smartphone market now, as well as fast-growing markets of India and Brazil, local smartphone makers in these emerging markets could become a threat over market leaders Samsung and Apple with their low-cost decent smartphones. Recent news on Xiaomi, a Beijing-based company, designs its phones with high-end specifications and sells them at midrange prices. Though Xiaomi smartphones is still inferior to iPhone or the Galaxy in terms of quality, but the company beats them on price, a significant factor for many consumers in China. On top of that, other smartphone makers like China’s Huawei, ZTE and Lenovo and India’s Micromax and Karbonn, are offering those features on their smart phones at a price local populations can afford. There is nothing in the existing technologies of Samsung or Apple that cannot be matched by other companies, thus Samsung may need to create phones that are cheap but capture the aspirations and imagination of users in emerging markets to compete on cost. Innovation and design Samsung, the largest brand in South Korea and it is also multinational company which diversified business under name of Samsung such as Samsung electronics, Samsung heavy industries and Samsung heavy construction. Samsung from producing black white TV as their sole purpose transform to a world reputable high technology corporation nowadays, Samsung was making a lot of right in innovative their products .Samsung increasing their investment in R&D such as R&D globalization and products design. 16 R&D center was established by 2004 to improve their products design and their existing technologies and Average of 9% of revenue was spent on R&D in the year between 2002 and 2007. Samsung put their efforts to create new and better design and products, this has been brought Samsung to win many awards and get 17,377 patents worldwide. To balance between feelings and reason, Samsung’s philosophy is using geometric and technological parameters and enhancing the design so the user can be emotional connection with its product. Samsung has such as good results in innovation and design because of their co-operation have a team of creative, knowledgeable and experiences people to contribute in the development of technology and Samsung aims to satisfy more consumers with its products and services.