Segmentation Strategy of Samsung

The industry of electronics is highly competitive, fast-growing, and demands immense investments in R&D. Samsung is one of the most influential, popular, and powerful representatives of this industry. This technology giant was founded in 1969 in South Korea. The company produces mobile, phones, TVs, home appliances, etc. Samsung can be considered a pioneer in the electronics industry with its experience, diverse products, and continuous innovations. Effective segmentation and positioning strategies had their unique role in helping the company to become successful and obtain its unique place in the market. So, let’s discuss this giant thoroughly and analyze the strategies behind its success.

Let’s start with the target audience of Samsung.

The discussion of the following commercial will help to identify the target segment of the brand.

The commercial is energetic, cheerful, and positive. The music in the background is festive and calming. It reminds the viewer of Christmas and the holidays. The commercial combines topics that are quite actual nowadays. The writings displayed throughout the video speak about the lockdown, its consequences, and give a hint of how these days can be brightened up. The main character of the video is a young man approximately in his 30s. From the very beginning, judging from all the musical instruments in the room, it becomes clear that he is a musician.

The man is good looking, nit, and attractive. He seems extremely happy and excited as he was gifted a new device. The product is innovative and interesting. The man seems very curious and passionate about the experience that the gift would provide. He starts using the phone and the pen to have a jam session with his band in the distance.

The easy adoption of the new product speaks about the intellectuality of the man and his love of novelties and technology. This man collectively represents the segment of people whom Samsung wants to attract. All the discussed details of the commercial, show that Samsung focuses on Conscious Progressives’ target segment.   

Target Segment: Conscious progressives

Lifestyle and Values: 

People belonging to the Conscious Progressive target segment are intellectual and knowledgeable. They are in constant search for new knowledge and information as they make all their decisions based on their skills and what they know. These people give big importance to self-improvement and growth and strive to make life better with their decisions. Conscious Progressives are open-minded and have a practical outlook on everything.

They are down-to-earth and quite grounded. Representatives of this target segment won’t spend their money if there is no need for that. These people value honesty and try to be honest towards surrounding people as well. They are open to compromises and are not ready to sacrifice everything to obtain a good career and in general anything desirable. Conscious Progressives have principles that they won’t ever break.

Besides, Conscious Progressives enjoy spending time with friends. They are very often the ones organizing fun gatherings. Entertaining others is their thing to do and they are quite successful in doing it. These people are curious and adventurous. People from this segment always look put together and good. However, they don’t give much importance to their appearance.

They are trendy and prefer anything casual. For Conscious Progressives, personality is equally important to the way a person looks. They make their impression about new people not only based on their appearance but their personality.

Attitude to Shopping: 

Conscious Progressives are easily attracted to entertaining ads that can be associated with them. When it comes to shopping, they make purchase decisions based on emotional reasons. This doesn’t make Conscious Progressives less demanding towards the products they buy. These people pay attention not only to the packaging of a product but try to obtain information about it.

They want the functionality of the product to be corresponding to the image. People from this target segment give vital importance to the quality of the products they buy. They consider the quality of any product a priority. When Conscious Progressives shop for clothing items, they usually go for casual things. Along with this, the comfort of the products is valuable for them.

Interesting facts about Conscious Progressives

• They are known for their loyalty and dedication to every relationship. These people give preference and value deep, strong, and long-term relationships.
• Conscious Progressives have a thing for participating in various debates. The debates can be on popular and widely discussed topics connected with environmental, social, or political issues around the globe.
• These people use the Internet non-stop. Internet is the means for them to obtain information, to communicate with friends, and learn something new. Also, it is a place that helps them to stay up to date, informed, and open-minded.

Positioning Plan of Samsung

Carefully chosen and effective positioning can be a game-changer for any type of company. Positioning can be highly effective when it comes to creating a brand image in the minds of the customers. Each company decides for itself on what to orient its positioning strategy. This depends on the type of company, the industry, products, etc. The industry for electronics is highly competitive.

Among the many companies in this industry, Samsung is one of the most influential and popular ones. In this industry, there is always a need and demand for something new and innovative. Any company in the electronics industry needs to continuously come up with new features, better options, etc. for its products. Samsung successfully does this and manages to continuously differentiate itself from the customers.

Samsung implements quite a typical positioning strategy for a technological company. Samsung uses positioning based on the competition. The company constantly introduces new technology that helps to create a point of parity.

New features, a new option, and other novelties help Samsung to keep up with time and maintain a leading position among other strong companies in the industry. A recent example of a completely new concept introduced by Samsung can be the Galaxy S6.

The unique attribute of this product is its curved screen. This concept is something unseen and game-changing in the electronics industry. By implementing this technology, Samsung managed to attract the interest and curiosity of customers.

The curved screen presented by this giant brought new opportunities for itself and competing companies who would either adopt the novelty or come up with something else to up Samsung.

Now, It’s time to move on to the Marketing Mix of Samsung.

Marketing Mix is a collection of an effective set of tactics that can help to attract customers and promote products. Let’s discuss each of the 4 Ps of marketing one by one.

Product: The portfolio of products that Samsung produces is extremely extensive and diverse. The company has over 50 production bases in different locations as well as over 30 R&D centers and around 6 design centers.

The portfolio of products of Samsung includes customer electronics such as mobile phones, tablets, laptops, home appliances, etc. It also has divisions for products related to devising solutions and IT & mobile communications. Samsung offers a variety of products that can be suitable for people with different tastes, income levels, preferences, etc.

All of the products of the company are known for their quality and durability. At the same time, the products of Samsung correspond but also dictate the recent trends of the market.

Price: When it comes to pricing, Samsung uses three different types of pricing strategies on its products. The strategies vary based on the product line, the changes in the market, etc. The three pricing strategies that Samsung uses are Competitive Pricing, Scheme Pricing, and Product Line Pricing.

• Competitive Pricing: The range of Samsung products is very extensive. The company operates in different segments, but it doesn’t have the same position in all of them. For example, cameras produced by Samsung are not in the same position as the ones by Canon. Similarly, home appliances by Samsung don’t surpass the ones produced by Miele. Consequently, Samsung uses competitive pricing on its products in these categories to maintain its share on the market.
• Scheme Pricing: Whenever Samsung presents new technology and concept mainly in accordance with its smartphones, it puts high prices on such items. With time, when the competitors start to adopt and imply the same features and technology to their products, Samsung lowers its prices to increase its market share.
• Product Line Pricing: Samsungactivelyimplements product line pricing when it comes to cost categorizing of its products. The company does this to create different quality levels in the minds of its customers. There are different lines of products for people with different income levels and preferences. In this way, by cost categorizing its products, it becomes easier for customers to differentiate the products of the company and distinguish affordable items from the expensive ones.  

Place: Samsung products can be found in different countries around the world. The company uses various sales channels to make its products available to a wide customer base. Samsung has actively engaged in sales and service deals that are directly associated with corporate sales.

At the same time, Samsung distributors for selling its products. The company has a country, territory, and regional distributors. Different distributors can obtain different distributorship rights.

A distributor can get the right to officially present all Samsung products or a single product category. This can vary considering the territory of operation, experience, and size of the distributor. Besides, Samsung sells its products through small and large retail outlets.

Such giant retailers are Reliance Digital, Chroma, etc. Along with all these sales channels, Samsung uses online sales and e-commerce channels. Customers can buy Samsung products from the official website of the company. Speaking about e-commerce, Amazon is a perfect example of a platform where the products of Samsung can be purchased.

Promotion: Samsung uses different types of promotion channels to update and attract customers. The company uses both conventional as well as unconventional channels for promotion. The advertisements for the company displayed on different TV channels and other platforms are always fresh, interesting, and engaging.

Their ads are known for being informative and entertaining. At the same time, Samsung actively uses its social media platforms for creating ads, and paid digital promotion for reaching its customers, create awareness about its products, and enlarging the customer base.

Also, the company uses media platforms to post and inform people about novelties and updates from Samsung. This technology giant is also engaged in different initiatives and does lots of sponsorships for promotional reasons.

The company uses campaigns for promotional purposes as well. Another interesting way of promotion is the schemes and offers that the company presents to the customers with its trade partners.

Summing up, many factors and decisions had their effect on the success that Samsung has nowadays. This company managed to maintain its excellence, passion, and dedication for everything it does. Despite its success, the company never stays in place but keeps growing through self-improvement, R&D, and market research.

Along with this, customers have a unique place in the success of Samsung. Thanks to a carefully chosen and effective segmentation and positioning strategy the company managed to become as influential and powerful as it is now. Check out the main page of our website for more posts like this.