Executive Summary
Samsung Electronics has proven to the business community that they are one of the most prestigious companies in technology in the industry. With the emergence of more technologies in the markets, more than the market can handle in the current era; Samsung has paved the way for the future in their products. One of the most popular technological advancements in the market from Samsung is the high-tech glasses. The first high-tech was launched in March of 2013 and has already had a significant impact in the marketplace. Following the release of the product, the company dominated the market controlling nearly 70 percent of the total share. With the increased technological advancements, ordinary items are currently undergoing re-invention into new designs as shown by the Samsung high-tech glasses. Eyeglasses are very common with people aged 55 and over due to decreased eyesight resulting from ageing. Though the glasses are primarily made to offer enhancement to the eyesight and UV rays’ protection, the high-tech designs make them to a new level, by infusing technological mix. Also, with the social media and mobile phone becoming integral part of individual’s lives, ability to gain speedy and instant information is essential in the modern society. The company has differentiated high-tech glasses from others in the market through market segmentation, pricing, quality, and unique distribution channels.
Although Samsung is dominating the electrical technology market, there are strategies and tactics that provide the company with an increased competitive advantage over the competition. Previously, the company has focused on innovation, marketing mix, target and positioning and market segmentation through market research. Samsung has previously prepared for the annual launch of significant item to hit the market that explains the gained competitive advantage and their market leadership in high-tech glasses and other electronics. In the future, the company plan to enter the digital world market with the partnership with Microsoft that will further enhance technological advancements in the production of high-tech glasses. Throughout the journey of marketing, Samsung Company has continued to provide marketing mix, target and positioning using best ad campaigns for the general public to always remember the Samsung products. The company focuses on increasing their prominence in a sleek design alongside effective ad campaign to catch the eye of the high-tech product target group. Samsung has a specialized branch that manufactures high-tech glasses using high-technology for the international and local markets. The strategies and tactics of the marketing mix, target and positioning and market segmentation have enabled the company to hold the top spot in the high-tech glasses market since its launch in 2013. When these markets begin to decline, the company has ready technology for the next big wave of high-tech glasses.
Introduction
Samsung was founded in 1938 and has become one of the largest electronics companies in the world. As the widely recognized electronic company globally, Samsung owns an excellent reputation. Currently, the innovation of high-tech glasses occupies more than 24 percent of the total export in South Korea (Na, Tse, Katila, Weyant, & Stanford University, 2012). In case someone would mention the phrase “high-tech glasses,” one could probably assume that it refers to the Google Glasses. However, the current generation people decrease the strength of their sight at early ages of 55. Samsung high-tech glass is the newest development in wearable technology. The device is worn as a pair of glasses and syncs the smartphone of the user. It has a hands-free, voice-activated system that enables it to function as a smartphone (Ham, 2007). This report provides the strategies and tactics employed by Samsung Company in their targeting and positioning in the market, marketing mix as well as an analysis of their customer base.
As such, Samsung Electronics has produced high-tech glasses to enhance sight and protect users from UV rays. The high-tech glasses produced by the company are advanced and provide options for directions, check into social networks and place video calls (Lee, 2009). While it has taken a long time for the wearable computing to mature, the recent advancements made y the company indicates that the company is embracing technology needed to top the market in the digital world. Therefore, this report accomplishes this objective by using company reports and existing literature based on the evaluation of their current marketing plan. Baek, (2008) asserts that a behavioural objective of Samsung high-tech glasses is to change the societal stigma of the aged population constantly looking down into the smartphone. With the glass, the product increases face to face interaction through the hands-free product capability.
Customer Analysis
Samsung high-tech glasses are primarily made to target the working class in economically developed countries of 55 years and above mostly. The market for Samsung high-tech glasses is made up of several segments. Kuhn, (2009) reports that the consumers, who make the market, are of varying buying behaviour and characteristics due to the different factors contributing to varying consumer mindset. As such, the company has disintegrated the market into various segments to capture the heterogeneous market of high-tech glasses. With the technological developments, the company target market is easily identified as the early adapter with quick diffusion rates that is, the rate at which market accepts the product idea or new product. The company focuses on the middle-class consumers in economically developed countries considered to be early adopters of new technology (Arnell, Kettmann & Stewart, 2010). The target consumers of 55 and over are the main economic drivers of any nation and are considered affluent individuals who have redefined cool from fast high-tech glasses (Co, 2013). The consumers represent, rather as small 8-10 percent of the overall population in the target markets. They are mostly 55 and over, educated and married individuals. Samsung company has identified this target group as the most likely candidates to show interest in buying the newest generation of high-tech glasses the broader target market tends to be the ageing population understanding that every part of the world has gone digital.
Samsung will try to appeal to individuals with 55 years and above with an intention of captivating the ageing population market. One common product consumer is their likely geographic location. The company markets in USA, India, Asia, and Europe due to the likelihood of availability of technological content in such countries rather than economically struggling countries. Essentially, most people from 55 years to 70 years reside in urban areas in economically developed countries. The psychographic segmentation of the consumers in this market mix, Sue Shim, Samsung Chief Managing Officer defined the target consumer as “immersed in high-tech glass experience, an individual who is an opinion leader and an early developer amongst peers” (Samsung Electronics, 2013). Samsung has established a plan to interact with consumers and expose them to a variety of available product models. The market forecast project digital products such as smartphones and the potential support of this target population by the nations. Therefore, Samsung tends to focus on demoing the available high-tech glass products in the market through promotional activities, offering additional exposure.
Target and Positioning
According to Lee and The Corporate Transformation of Korean Firms, (2007), technology and new product proliferation has made the consumers bombard with the varieties and has a difficult time selecting and differentiating best of the many alternatives. Also, small companies are fighting for recognition bringing further competition. According to Viardot (2004), the technology innovated high-tech glasses being of high class in the company, their target includes the consumers of the upper and middle class mostly in economically developed countries that are approximately aged fifty-five and above. The company estimates that this group of people often wants an eye glass with luxury level high-end feel and high-level convenience. However, the company is looking to expand the market in the 21st century. Likewise, Samsung Company adverting has recently focused on different populations that might require high-tech glasses (Mullins & Walker, 2013). The company is also targeting the middle-class individuals with the average-priced, however, still luxurious high-tech glasses.
Samsung Electronics has made efforts to differentiate the high-tech glasses it manufacturers from a wide range of available choices to obtain a unique position in the marketplace. Cravens & Piercy, (2006) indicates that companies must differentiate their products from the competitors to identify the target customers in the market. Therefore, Samsung management recognizes that positioning is their role, and they conduct it haphazardly. Advanced technological innovations used by Samsung Electronics forms the basis of differentiation from the competitors (Hackley, 2010). Furthermore, the price, quality, target application, target audience and channels of distribution employed by the company most offers a unique position in the marketplace. The wide range of technological products such as smartphones that has established the company brand in the market is critical for positioning of the enterprise. Overall, Samsung offers best prices, promotes performances that position the high-tech glasses directly against the competitors.
For the consumers who are looking for high-tech glasses with advanced digital capabilities, Samsung offers unique high-tech glasses with proven quality. Samsung Electronics announced numerous eye safety and technological innovations over the previous years (Quelch & Harvard Business School, 2004). However, the innovation adopted by the company was duplicated by the competitor. The company distributes the products using a broad range of robust networks of dealers worldwide. The company comprehends that the consumers cannot just develop interest in buying the ordinary glasses at the expense of high-tech glasses. Therefore, the company makes high-tech glasses that have the ability of sailing in the market. Trim, (2007) observed that the intentions of changing the brand perceptions are also in line with the establishment of pace in the mixed market. Consequently, it is all about how the customer can easily get the product since most people in the developing countries cannot afford to purchase company products. The introduction of distribution channels, distribution centers and inventory management makes faster and easy processing and transportation of the products.
Marketing Mix
Samsung high-tech glasses have a strong marketing mix due to its dynamic product marketing mix concept application. Samsung has a wide product portfolio in different product categories. Samsung brand image driver are high-tech glasses, mobile phones, cameras, air conditioners, washing machine and IT (Scott-Kemmis, 2014). Thus, the Samsung high-tech glasses marketing mix is one of the strongest points of the company.
Product
Samsung high-tech glasses are in high demand across more economically developed countries due to the fact that the product is considered luxury items and thus costs more (Turun & Wambui, Elizabeth, 2013). Therefore, the high-tech glasses are mainly sold in more industrialized nations since the target group of 55 years found in economically developed countries can afford the products. Likewise, the high-tech glasses are very popular among the working class as Samsung high-tech glasses overtook Google Glasses as the world’s best-selling high-tech glasses according to the current market research from strategic analytics that claimed Samsung shipped 12 million units of its flagship device in high-tech glasses (Fisk, 2011). Also, since the company is so popular and has a good reputation, the company brings new high-tech glasses that will lead to repeat purchases, the next high-tech glasses will be better than high-tech glasses currently on offer and this will entice the consumers to come back and purchase more Samsung high-tech glasses and other products.
The high-tech products form the basis of the company’s marketing mix. The services offered are the best advertisement since the specialization on channels for international marketing means the company establishes contacts with the potential consumers. Thus, the company through its marketing mix focuses on the fulfillment of the promises made to customers. Likewise, Samsung takes the high-tech glasses across the national boundaries to explore new markets, guide the customers through the maze, and foster relationship with clients (Viardot, 2012). This ensures focused deliverable through getting the products into the channels.
Pricing
Stigliani, (2010) writes that the pricing of the company is directed towards matching the positioning. The high-tech glasses are not economical or cheap, thus are at high end of the pricing scale. The Nissan Altima cars are affordable more than the cars in similar segment. The product targets individuals that require outstanding high-tech glasses in the segment in the case of comfort, design, innovation, and quality. The major objective of the company is to make the cars increasingly affordable for the consumers. The purpose of launching the high-tech glasses is in relation to price, and therefore the prices of high-tech glasses are kept affordable compared to the current market competitors (Jemielniak, Marks & IGI Global, 2012). The amount of money, the customers pay for high-tech glasses, overweighs the perceived interest of the customers and shows the perceived value of the product. Therefore, the customers can make reasonable choices based on the offerings available.
Place
Samsung is present through various established channels in the market. Currently, the company works on channel marketing concept using three segments namely; Modern retailers, Sales and service dealers and Distributors. The sales and service dealers handle Samsung’s key accounts alongside corporate sales. Likewise, the dealers are also permitted to open exclusive Samsung showrooms. The modern retail segment incorporates large retailers like Hypercity, Croma, Vivek’s, and others present in the current electronic chain (Michell, 2010). With a strong brand, Samsung retailers keep Samsung as an alternative for their clients. Samsung distribution network is the most interesting case. The company has single distributors in numerous cities through whom they distribute throughout a territory.
Promotion
Samsung does all media promotion, including print and video ads. Recently, Samsung has gained massive attention due to massive publicity approaches. In most occasion, the company holds promotional events, for instance, recently, there was an event named “Samsung high-tech glasses Promotion” in Hong Kong. Baloh, Uthicke and Moon, (2008) indicates that Samsung high-tech glass brand is widely known for its innovation and high quality. Samsung employed aggressive activities for promoting the products in the recent years and maintained product quality and development of brand image approach by providing excellent services to the customers (Kumar & Steenkamp, 2013). Samsung high-tech glasses are the largest seller in the market segment. From advertisement point of view, Samsung has employed precise and careful advertisements using both the traditional and the social media. The company has always projected their brand image as the most brands reliable for the customers in the segment. The customers have continually updated themselves on the policies and procedures of the company. The adoption of the latest technology and continual upgrading of the product whenever necessary as well as product remodeling after a specific time period has been the fundamental drivers of the company.
Conclusion
The report involves the background of Samsung high-tech glasses aimed at individuals 55 years and above from economically develop nations. As such, it provides insights of the marketing mix, target and positioning, and customer analysis of the product. Via discussion marketing mix, market segmentation and positioning of Samsung high-tech glasses, the company superiorities are best established. The overall strength of the company is enhanced, and further expansion of the promotional events will ensure product development (Kotler & Armstrong, 2012). Samsung high-tech glass is first of its kind, developed by well-established brand. The product is high quality and high tech, making it of great value for consumers. Its voice-activated functions and unique design makes it easily identifiable and convenient for the users. That target market is middle and upper-class people in aged from 55 and above from economically stable countries and belongs to the generation that uses smart phones. Marketing positioning and targeting, marketing mix and segmentation are captured in the market share and marketing ahead of the competitors releasing similar products.
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