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In the dynamic landscape of the mobile and smartphone industry, Samsung Mobile has strategically positioned itself to cover the entire spectrum of the market. As illustrated by the Brand Bull-eye diagram (Figure 1) proposed by Kotler and Keller (2012, p.309), Samsung's product lineup is designed to cater to diverse consumer needs. This includes not only high-end smartphones but also affordable and simple mobiles, recognizing the continued popularity of such devices among specific demographics, such as children and the elderly.
The current positioning of Samsung Mobile revolves around its aspiration to be the market leader in the global mobile and smartphone industry.
This involves not only outshining competitors like Apple in the premium smartphone segment but also displacing Nokia as a producer of budget-friendly and straightforward mobile phones. The primary focus of the South Korean company is on individuals seeking communicative gadgets, highlighting its commitment to meeting the communication needs of a wide-ranging consumer base.
The strategic positioning of a brand depends heavily on identifying consumer insights, essentially understanding the actual problems prevalent in the market.
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In the context of the smartphone market in Kazakhstan and Central Asia, one glaring issue has been the inflated prices of smartphones. This stems from the absence of official representatives of smartphone companies in the region, leading to a reliance on unofficial retailers for mobile phone distribution. Prior to Samsung's entry into Kazakhstan, the market lacked a reputable source for smartphones, creating a demand for communicative electronic devices at affordable prices that could satisfy existing needs.
With the establishment of a branch in Kazakhstan, Samsung not only addressed this market gap but also introduced high-quality smartphones at remarkably affordable prices.
This move positioned Samsung as a formidable competitor not only to Apple's iPhone but also to other major players in the market, such as HTC, LG, Sony, and Nokia. The Competitive product set, as outlined by Kotler and Keller (2012, p.305), reflects the intense rivalry in the industry, prompting Samsung to adopt a straddle-positioning campaign. In this approach, product differentiators for one competitor become points of parity for another, creating a nuanced competitive landscape.
Professor Joel Urbany's Three Circles analysis (Figure 2) provides valuable insights into differentiating factors among Samsung and its competitors (Strategic M, p151). By consolidating these differentiations into a common table (Table 1), a comprehensive overview emerges. While Apple excels in innovation, corporate image, and product quality, it falls short in terms of offering large screens and affordable prices. On the contrary, LG distinguishes itself with accessible costs and Amoled screens but lacks proprietary software. This analysis positions Samsung with a significant advantage over its competitors, striking a balance between innovation, quality, screen size, and affordability.
Examining Table 1 not only aids in understanding the reasons behind Samsung's competitive edge but also sheds light on the "Reasons to Believe" in Samsung's productions. Beyond strong corporate image, Samsung's ability to integrate innovation, quality, and affordability sets it apart in a highly competitive market.
In conclusion, Samsung Mobile has strategically positioned itself as a comprehensive player in the global mobile and smartphone market. Its product lineup, spanning from high-end smartphones to simple mobiles, reflects a nuanced understanding of diverse consumer needs. By entering markets like Kazakhstan and Central Asia, Samsung has not only addressed existing challenges, such as inflated smartphone prices but has also emerged as a strong competitor against industry giants like Apple, HTC, LG, Sony, and Nokia.
The Three Circles analysis and Competitive product set framework further highlight Samsung's competitive advantages, showcasing its ability to balance innovation, quality, screen size, and affordability. As the company continues to evolve and adapt to changing market dynamics, its strategic positioning remains a key driver of its success in the highly competitive mobile and smartphone industry.
Strategic Positioning of Samsung Mobile. (2016, Apr 16). Retrieved from https://studymoose.com/positioning-of-samsung-mobile-essay
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