MARKET ANALYSIS AND CUSTOMERS Wit ith h a CA CAGR GR of 10 %, gl glob obal al ma mark rket et va valu lue e fo forr co comp mputi uting ng el elec ectr troni onics cs application sector is anticipated to be worth !"#$&' billion b( )01*& +n a global scale, Asia-aci.c accounts for more than $/% of the market share& While ! accounts for the largest share of the global market value on a countr( basis, ndia and China surpasses the ! in terms of growth rate antici ant icipat pated ed in the nea nearr fut futur ure& e& Am Among ong the appl applica icati tion on sec sector tors, s, Com Comput puter er -eripherals account for the largest share of the entire market, driving a CAGR of &1% during the anal(sis period )011)01*& !uper Computers see as the fastest growing application with a forecast CAGR of appro2imatel( 1#&)% b( )01*, 3ideo Games are most demanding application on personal computers based on the recent advancements and innovation technologies in gaming industr(&
-rimaril( supported b( application sector 4 Analog 5 6igital 73, 7ablet, 7ablet, 6igital cameras 5 Camcorder Camcorder,, -er -ersonal sonal Computers and 3ideo8Audio 9:uipment the consumer electronics market to witness a value of! of !"1 "1& & tr tril illi lion on b( )0 )01* 1*&& Ge Geog ogra raph phic ical al an anal al(s (sis is sh show ows s th the e hi high ghes estt Compounded Compo unded Annual Growth Rat Rate;CA e;CAGR< GR< of 1'& 1'&% % is fore foreseen seen fro from m Asia -aci.c region during the anal(sis period )011)01*& 7he =iddle 9ast is not wa( behind with a CAGR of 1'%, followed b( Africa at 1&%& >apan forecasts to drive with a growth rate of 1$&%& Among the sectors, Analog 5 6igital 73 accounts for nearl( $)&$% $)&$% of the overall =arket =arket share share followed b( -ersonal -ersonal Comp Co mput uter ers s at )/ )/&/ &/% % ho hold ldin ing g th the e se seco cond nd po posi siti tion on&& Gl Glob obal al ma mark rket et fo forr Consumer 9lectronics especiall( in 7ablet will record strong hold over the ne2t / (ears (ears driven b( raising demand in in fast ? growth growth market in Asian and other oth er em emer ergin ging g cou countr ntries ies&& =a@ =a@or or com compani panies es ar are e loc locate ated d in >ap >apan, an, !out !outh h or orea ea and 7aiw aiwan an regi egion on and ar are e dom domina inatin ting g the con consum sumer er 9le 9lectr ctroni onics cs ndustr( Growth& ncrease in the incomes and spending power of individuals, the consumer electronic market has witnessed a boom in sales, in the past few (ears& 7he ke( factor for this market growth is increasing demand for BC6 73s and B96 73s& 7he digital technolog( also has been witnessed rapid growth in the recent (ears& 7he consumer electronics electronics products segmented into semiconductor industr(, consumer automotive electronics, electronics, home entertainment sector, and communications segment& 7he consumer electronics products include mobile phones, BC6 73s, B96 73s,
smartphones, digital 73, -6As, 636 pla(ers, 673, portable media pla(ers, 673, video games, hometheater s(stems, microwaves, printers and others& Currentl(, the &!& market is dominating the market with largest market share of global consumer electronics market, followed b( Asia region, particularl(, China& =oreover, digital 73 forecasted to grow rapidl( in ndia and China& Deside, the digital 73 demand pro@ected to grow, with Asia-aci.c and 9urope holding largest number of 673 homes& 7he 673 will also likel( to grow in Eorth America market in the ne2t few (ears& With the increasing competition, more companies are looking to bring innovative products and technologies in the market& 7he global consumer electronics market is e2pected double digit growth in the coming (ears&
7he consumer electronics market research aims at providing a complete account of the above mentioned sectors& t also provides detailed information on industr( siFe and indepth view of the industr(s ke( competitors& 7he consumer electronics market research makes a careful stud( of all the past reports and makes estimates based on them& Hurther, it studies the global outlook in the consumer electronics market&
7he consumer electronics industr( has been witnessing a phenomenal growth globall( over the past few (ears& 7his growth can be attributed to the revolutionar( technological developments taking place in the consumer electronics industr(& 7he revolution brought b( the digital technolog( has enabled the consumer electronics sector to pro.t from the growing interaction of digital applications, such as camcorders, 636 pla(er8recorder, still camera, computer monitor, BC6 73, =obile phones, etc& According to Consumer 9lectronics =arket Horecast report, the global consumer electronics market is forecasted to grow at a CAGR of around /% during )00)01)& Also, during the same period, the global consumer electronics shipment will grow at a CAGR of around /%& 3arious factors driving the future growth& +n the regional front, we found that the American region, mainl( !, is driving the global consumer electronics industr(, closel( followed b( 9urope& n future, Asia -aci.c region will constitute the ma@or portion of the consumer electronics industr(, mainl( due to the increase in demand from the developed countries in the region& Also, the American region along with the 9uropean region will see a decline in their market shares because the markets there have attained saturation and onl( the advent of new technolog( will boost the demand& ndias consumer electronics devices market, de.ned as the addressable market for computing devices, mobile handsets and A3 products, is pro@ected at around !")*&bn in )010& 7his is e2pected to increase to !"#/&'bn b( )01#, driven b( rising incomes and growing aIordabilit(& Growth in some product categories dipped in )00, but the market recovered strongl( during the festive sales season that ran until 6iwali, with man( retailers reporting )0#0% growth& !pending on consumer electronics devices is pro@ected to grow at an overall CAGR of 1)% through )01#, with the ke( segments including touchscreen mobiles, for BC6 73 sets, settop bo2es and notebook computers& =uch of the growth will be driven b( growing demand from ndias rural population&
STRATEGIC OBJECTIVES OF SAMSUNG ELECTRONICS 4.1 Segmentation Market segmentation has three levels including 1.Strategic Segmentation-vision, strategic intent and product benefits 2.Managerial Segmentation-resource allocation, alignment and planning 3.Operational Segmentation-Marketing programs such as advertising, sales and distributions. Segmentation in the market-driven strategy process is segments, value opportunities, ne market space, matching value re!uirements ith capabilities, market targeting and strategic positioning. "ctivities of market segmentation are# 1.$efining the market to be segmented. 2.%dentifying market segments 3.&orming market segments '.&iner segmentation strategies (.Selecting the segmentation strategy )he firm uses mainly lifestyle and demogra phic variables in segmenting their market . )he firm should hoever lay mo r e emphasis on the changing lifestyles of the young generation and cater for their ever changing needs. %n order to regain market share, the company can segment the market into rur al and urban peo ple. )he rur al targets ill hel p increase the market shar e. )he ur ban should comprise mainly the peo ple aged 1(-3*. )his ought to be their
main segment in order to com pete favorably ith brands in the same mark et segment. )his target group of people focuses mainly o n music, leisure and has the flair for hip gadgets in the market.
Levels of segmentt!on !amsung is targeting the customer market b( dividing it into diferent segments and oIering each segment diIerent product based on their common characteristics
Segment Marketing
Bses fo" Segment!ng Cons#me" M"$ets 7he consumer market for samsung products has been divided using four schemes of segmentation variables i&e geographic, demographic, ps(chographic and behavioural
Occasions Benifits User status Usage rate Loyality status •
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Geog"%&!' Segmentt!on Reg!on( !amsung has divided the Asian market into diIerent geographical regions such as northern, eastern and southern areas C!t)( !amsung is targeting diIerent countries of Asia diIerentl( b( dividing as diIerent markets such as ndian =arket, China market&
Demog"%&!' Segmentton Age( age factor is not reall( involved in !amsung segmentation but its most users are adults enthusiastic people Fm!l) s!*e( !amsung -roducts are oIered for all famil( siFes Gen+e"( !amsung home theater s(stem is e:uall( bene.cial for male and female In'ome( !amsung -roducts are oIered with var(ing features to diIerent peoples based upon their income level i&e& low ;upto " 1/00< lower middle ;"&1/00$000< middle ;"$000/000< upper middle ;" /000'000< and high ;above" '000<
O''#%t!on( !amsung has divided the consumer into diIerent categories based upon their occupation i&e& businessman, self emplo(ed, students and teachers E+#'t!on( !amsung is also keen to know about the education level of its target market i&e& illiterate, school / to 1/, under graduate, graduate and postgraduate
,s)'&og"%&!' Segmentt!on L!fest)le( !amsung is also classif(ing customers on diIerent levels based on diIerent lifest(le of the people i&e& culture oriented, sports oriented, outdoor oriented ,e"sonl!t)( customers are diIerentiated on the var(ing level of personalit( such as compulsive ambitious Dehavioral !egmentation 4 Dene.ts 4 Consumer are also targeted diIerentl( based upon the bene.ts that are seeking in !amsung electronics i&e&, some people ma( want good :ualit( , some ma( want low services and some want good services& ser !tatus 4 !amsung is keen to know user status of its target consumer in order to better oIer its product and therefore the( are divided into e2user, potential user, .rst time user and regular user& Bo(alit( !tatus 4 7arhet market of !amsung ma( contain people with diIerent lo(alit( status and therefore !amsung is targeting these customer diIerentl( based on their lo(alit( i&e&, hard core lo(als, split lo(als, shifting lo(als, switchers&
Targeting:
)he market targeting options include a single segment, selective segments, or e+tensive segments. hen segments are not clearly defined, product specialiation or product variety strategies can be used. Market targeting decisions need to take into account product-market life cycle stage. %n emerging market stage risk and uncertainty is too high, in groth stage benefits from prior e+perience but it is more intense than emerging stage, and in mature stage multiple targeting strategies can be done such as product variety or product specialiation. Samsung target the upper middle class professionals. )his usally have busy schedules and hence need to communicate ith their colleagues and families. )he secondary target are the high school college and graduate ho need devoices hich are multifunctional and portable. )he secondary target includes medium sie corporations and they aim to help managers and employees have crucial data access on the go. )hus the company has to main segments and this is called multi segments targeting. )he company should hoever enhance target group to incorporate more teen activities that are the main target of main compitiotrs. Positioning )he concept to position the brand may be based on the functions provided by the product, the e+perience it offers or symbol it conveys.
$eveloping positioning strategy re!uires integrating the product, price, value chain, and promotion strategy to focus them on the market target. )he positioning strategy matches the firms capabilities ith the buyers preferences. )he positioning strategy that the company uses to market its ne pr oducts is the positioning of the ne product as a convienient value added device hich can be used for professional and personal use by young professionals. )here is also focus on convenience as it incorporates other features such as music, internet access, laptops. )his positioning strategy enhances sony products as professional and hip.
Samsung electronics produces consumer electronics in five categories , they are )/s and video 0audio players , mobile phones, computers , cameras , home appliances . e have discussed the points of parity and points of differentiation of Samsung ith its competitors )/0/ideo0audio players Samsung has become the company ith the highest sales of )/s . )hey ere the first to introduce 3$ ed tvs .)hey have alays had a head to head competition ith sony in the )/ segment. %n the past fe years Samsung has managed to become the leading producers of )/. )heir possession of Samsung chip has also enabled them to come up ith innovative products like the smart tv in response to sonys internet tv . )hey have been successful in integrating technology ith electronics thus becoming the market leaders . they also have the advantage of manufacturing their )/S in their on factory hile sony outsources the manufacturing oints of parity 4oth sony and Samsung give importance to innovation and picture !uality . both had a tough competition introducing slim0ultraslim )vs .sony introduced internet )/ , hile Samsung introduced smart )/ . Samsung also introduced 3$ 5$ tv Overall positioning#- better !uality and design , innovative features value for money , integral part of family 6ome appliances#- Samsung has a variety of products under home appliances category . )hey include air conditioners, microave oven , refridgerators ,ashing machine , vacuum cleaners , etc . %n india Samsung has tough competition from another south 7orean company 8. -oints of parit(4 7here are a lot of pops between !amsung and BG & Doth concentrated on innovation and brought new technologies& BG bought innovation in the form of side b( side door fridge , automatic doors for fridge ,health guard in AC , tallest cooler in fridge &while !amsung imtroduced innovation like s series compressor in AC,6igital inverted compressor that keeps food fresh for ' da(s ,uniform cooling , HREC ? new sound of freshness , bubble generator in washing machine ,biosleep 4ac sets temperature according to bod( temperature&Doth concentrated on health( lifest(le&BG Js tag line itself is lifes good & while !amsung concentrates on keeping food fresh , pure air from ac , protection of soft clothes and other product bene.ts &
+verall positioning4 health( living , innovative product features , energ( eKcient hence cost saving Cameras#-Samsung is not a very big player in cameras segment buut still its a popular brand . it has got tough competition from canon and sony. 9ameras segment include handy cam , digital cameras .
Points of parity:- roduct features and innovation like super oom , 2:* degree ide angle shots in sony . better picture !uality in canon . dual vie and multi vie cameras from Samsung Mobile phones#-samsung is one of the highest sellers of smart phones .it has a tough competition ith apple . )here is a tough competition beteen apples iphone and samsungs gala+y . %n india Samsung has tough competition ith nokia . it has also raced ahead of nokia .)hey used the possession of their on chip to their advantage and bought about lot of innovation Laptops#- Samsung is an emerging player in laptops . )hough it has its on chip , it uses intel chip in its laptop to be on par ith the competitors . it has competition from dell and hp Points of parity :- )he ma;or points of parity is performance and style . !erall positioning #- samsung laptops have a better version of the consumers basic e+pectations from a laptop !erall brand positioning of sams"ng •
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"ll samsung products focus a lot on prod"ct benefits and feat"res . )hey ant to provide a variety of benefits and features from a single product Most important feature is the integration and "se of technology in delivering the necessary value #nno!ation is also a key criteria . "ll samsung products focus on !al"e for money . one of their positioning is that of getting more than hat you pay for .
)hey also position themselves as better pro!iders of the points of parity than their competitors PS#T#$#$% ST&T'M'$T ( S&MS)$% &or every person ho ants to get the ma+imum value for the price that they pay . )he samsung electronics is an electronics firm that provides electronic goods that satisfy all your e+plicit and implicit needs more than your e+pectations .
