Marketing analysis essay on: Company’s SWOT on ANZSIC code of the company
Intend of this paper is to discuss an organization and the industry in which this is operating. In contrast, ANZSIC code of that industry has also been specified. Next segment of the paper has made a situational analysis based on company’s strengths, weaknesses, opportunities and threats. Therefore, paper has attempted to identify every internal and external environmental factor before taking a SWOT analysis, which may have impact on the company. The forthcoming section of this paper has described the organization’s objective in depth. Afterward, some recommendations have also been added as a part of the overall discussion to improve the marketing objective of the company. Consequently, market segmentation, target market, positioning strategies of those organizations has been illustrated. In addition, the description of these strategies has been evaluated with reference to the established marketing objective of the company. Moreover, the paper has outlined marketing mix concept of the company and their interrelationships. At the end of paper, recommendations have been made for each of the marketing used that will help the company monitoring and improving its marketing performance.
The company taken for the discussion is Samsung mobile which is located in Australia. This company offers local, domestic and international telephony and other mobile service all over the world. The main focus of company is on residential customers and small to large businesses. The company has also starting offering high speed data and broadband connection to local and domestic customers which makes it different for other organizations in the industry. Therefore, to grow and expand its market in current business world, it mainly focuses on youth by offering attractive features through its multiple services. The industry is telecommunication industry which offers wireless mobile service and other connections to the customers (Samsung, 2012).
Moreover, ANZSIC code of the company is 5809 according to Australian bureau of statistics, in which ANZSIC codes and titles have been defined by Australian and New Zealand standard industrial classification (Australian bureau of statistics, 2012).
The company is technically very advanced and consists of heavy assets of multiple technologies. The company is well known for its advanced and different services, it put in cell-phones. The quality of company is unbeatable and it always keeps on introducing new concepts for different products and categories of mobile handsets. In addition, the company takes care of its customers and knows their needs and therefore offers them innovative products by understanding their actual requirement and designs they want. As the human resource plays a vital role in every organization’s constant success, The Company invests in human resource, research & development, new technologies and product design and brings a new and innovative concept for the customers (Macmanus, 2012).
The weak point of company is lacking in product differentiation. Moreover, it also waits for the competitors to attack with their new concept and products in the market, thus it is not proactive in taking actions and initiative. It focuses on mass market instead of focusing niche market and therefore sets the low price for its products and low price products dictates the low quality of product. In this context, the products offered by Samsung seem to have perception of less quality products as compare to its competitors.
As it is good in understanding customers, it can gain the market share by introducing distinctive products. Next, it can go for product variation techniques and can bring unique products and already existing products with multiple varieties in the market. On the other hand, the use of mobile phone is mounting up like anything, therefore Samsung can take its advantage and offer user friendly mobile at affordable price for the customers.
The level of threat and competition is very high for Samsung in this competitive environment. The competitors such as Sony, LG, Samsung, Nokia, HTC, etc are there to compete with. Telecommunication industry is developing and increasing day by day, so it would be very difficult to remain with good position in the market (Macmanus, 2012).
Government can impose some law concerning the environmental and hygiene factors which may be affected by pollution and wastages of technologies used in making handsets. Therefore, it is made necessary to follow the rules and regulations by every company operating in same industry.
The exchange rate, inflation rate, interest rates issues can impact the overall business and services of Samsung telecommunication. For that, it needs to focus on global market instead of serving local and domestic markets only.
Social factors involve culture, values, lifestyle, thinking patterns, and status of the society at large while offering the product. This may have an impact on the business of Samsung, if the customers change their mindset and thinking of buying mobile sets and other related services.
The Company needs to focus on new, innovative and updated technologies so that it could compete with its strong competitors, Therefore, Samsung can take camera, motion capture, mobile application services and 3G connection services into account in order to attract the customers and gain largest market share (Husna, 2008).
(a) The main objective of the company is to seize a leading market share and maintain it by offering unique and innovative products. Therefore the company aims on inspiring the world and creating the future through its marketing strategy. Afterward, two recommendations can be made to improve this marketing objective of Samsung (Samsung, 2012).
(b) In this regard, first company should get closer to the customers in order to receive better and accurate ideas about their demand, needs and expectations. The idea is to suggest that customers can detect indifference and fault in any product easily, thus by understanding their needs, products can be offered in accordance with that and long-term relationship and loyalty can be established. Second, Company should think out of box in order to get the attention of customers at a global level. In addition, it can take advantage of new and innovative advancement in technologies (Pellemans, 1971).
(a) Segmentation is made on the basis of age, gender, job, and status, level of income, values & beliefs, and lifestyle of the customers. Therefore, Samsung has targeted youths mainly those who are well-settled and earning good. Similarly, marketing department of Samsung is concerned about the perception of customers as it is based on reality. The Company has segmented its target market on the basis of marketing strategy and focused on following sectors for its key products (Buzzle, 2012):
- Customers segmentation based on age (mainly youths wanting attractive features), generation, business or occupation, level of income and society status.
- Developed values based strategies in order to create a brand name and loyalty in the market. That was decided on the basis of the product’s usage and its compatibility (Macmanus, 2012).
The Company always tries to put its main efforts in bringing the products effectively before the customers. Additionally, the positioning strategy of the company has put long term profit aspect and therefore put extra efforts for product positioning. Samsung telecommunication has chosen banners, campaigns in shopping malls, creative posters, road rallies and other promotional activities to position its product’s brand in customers’ mind. It aims to reinforce its position in the market as a world’s one of the largest smart phone maker and seller (Karadeniz, 2009).
(b) Furthermore, these strategies can be evaluated to related and integrate with marketing objective of the company. First the segmentation strategy of Samsung states the customer segmentation on the basis of psychographic and demographic characteristics, thus the objective to seize the dominant market share can be accomplished by this. In advance, it will help identifying the target market of customers and understanding their expectations from products such as price, quality, applications, type of usage, status of phone, etc. Second, targeting and positioning strategy of Samsung taking posters, banners and relevant promotional strategies into consideration will assist reaching maximum customers and gaining large share of market for their products (Perner, 2010).
(a) Marketing mix is used as an effective tool which is used at the time of determining product’s offering. It consists of four Ps of marketing which are product, place, price and promotion of the product. In some of the organizations, these 4 Ps are expanded to seven or eight Ps based on different nature of service and product’s offering.
- Product: A product is what is made in accordance with customer’s needs and expectations. For this, company conducts a survey to know demands, needs, and expectations of the customers. On the other hand, every product has to go by phases of its life cycle from its maturity to decline in sales.
- Price: The price is that amount which customer gets ready to pay for the product he or she wants to possess. Therefore, the pricing of the product should be done as per the material and resources used in manufacturing the product. Apart from this, the aspect of price elasticity is also taken into consideration before setting the price for a particular product. In this context, there are various strategies for pricing such as market skimming, penetration, neutral pricing, etc.
- Place: It refers to a place where the product can be made accessible and convenient for the customers easily. For this, the distribution systems are used by the organizations concerning the convenience and comfort of the customers.
- Promotion: It is regarded with the promotional activities of the product such as advertising through broadcasting, banners, posters, live shows and many other campaigns. The promotion of a product also involves public relations, sales promotions and personal selling concept of the product (Kerin & O’Regan, 2008).
Moreover, the interrelationships between these marketing mixes can be noticed and discussed in this paper. Price and promotion are interrelated because the advertising expenses are set on the basis of low or high price of the product. If the product is of low price, then small level of advertising strategies are exercised such as personal selling, banners and rallies only. On the other hand, if product has good quality and high price, it is advertised through TV, posters, banners, shopping mall campaigns, etc. Next, price and place are also interrelated because distribution cost is also associated and set in accordance with price of the product (Moosmayer & Fuljahn, 2010).
Product: First, A standard system and technology should be brought forward to manufacture the product. Second, company should be taken product mix into account while making the product forward.
Price: First, the marketer should be aware of the customer perceived value of the product before setting the price. Next, the pricing should be done after evaluating the competitive price of similar product.
Place: The marketer should consider franchising and exclusive distribution systems while placing the product. Second, the knowledge, understanding and awareness of the customers about the product should also be evaluated by the marketer.
Promotion: First, a company going for promoting its products can take support of press releases, exhibitions, seminars, trade fairs, etc to promote it effectively. Next, Print media is also an important option for the company to promote its product where the features can be described deeply.
For a conclusion, it can be said that Samsung has aimed its marketing strategies to lead the market and gain largest market share by inspiring the world. Company is technically strong but week in taking initiatives. On the other hand, it can have an opportunity to present the unique products in the market. Next, threat for company is very high in terms of its competitors. Moreover, 4 Ps of marketing mix and recommendations have also been described in this paper which state an overall idea of marketing plan for Samsung telecommunication.
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