Applevssamsungmarketing-180205135606.pdf

Apple VS Samsung

APPLE INTRODUCTION AND HISTORY ► Name: Apple Incorporation ► Founder: Steve Jobs, Steve Wozniak, Ronald

► ► ► ► ► ►

Wayne Founded: 1 April, 1976 Headquarters: Cupertino, California US Employees: 116,000 (2017) Current CEO: Tim Cook Market Share: 20.3% Market Share in Pakistan: 14.7 (2017)

► Launched iphone:29,June 2007 ► No.1 Brand by Interbrand ► Services Worldwide ► Logo: Byte into an Apple ► Slogan: Think Different

SAMSUNG INTRODUCTION AND HISTORY ► ► ► ► ► ► ► ►

Name: Samsung Electronics Co.Ltd Founder: Lee Byung Chul Founded: 1 March, 1938 Headquarters: Suwon South korea Employees: 308,745 (2016) Current CEO: Kwon Oh Hyun Market Share: 18.5% Market Share in Pakistan: 26.1% (2017)

► Launched Android: 27 April, 2009

► No.6 Brand by Interbrand ► Services Worldwide ► Logo: Samsung ► Slogan: Imagine, and “Think bigger”

4Ps of Iphone        

Product differentiation from competitors Innovative product LTE wireless technology High quality camera PRODUCT Own IOS, no third party apps Finger print sensor for 1st time Deals also in services Home screen button for android

 Price Skimming is used

PRICE

 Price is reduced for the previous products

 Apple reduce price with time and never goes on sale

TARGET MARKET

 Advertisement through online ads, TV ads and Buzz marketing  Personal promotion by the CEO and the Top level managers  Iphone packaging is also effective enough to attract consumers

PROMOTION

PLACE

 Selective distribution  Stores and outlets are at Highpoint shopping centers  Karachi (Apple Istore), Lahore (Icity), Islamabad (UNI store)  Online available at Amazon and Ebay  Apple stores and certified retailers are available at upmarket retailers

Segmentation (Demographic and Psychographic) 

IT conscious and technology lovers



Professionals and Teenagers of both genders



Highly life style conscious



High income earners

Positioning 

Strong brand image



Exceptional User Interface of apple



Steve Jobs as CEO



Focuses on the emotions of consumers by apple brand architecture

SWOT analysis of Iphone  Most valuable brand  No promotion to target lower class of society  No 1 Brand (inter brand)  Very few service centers  Apple sold 340,000 iphones per day in 2012  Poor after sales service  Apple is world’s largest IT company by revenue and  High price total assets  Incompatibility with different OS  2nd Largest Mobile Manufacturer (www.factslides.com)  Defects of new products  Strong marketing and advertising teams  Patent infringements  Strong financial performance Strengths Weakness  Strong growth of mobile advertising market  Increasing demand for cloud based services  High demand  Growth of tablet and smartphone markets  Obtaining patents through acquisitions Opportunities

    

Rapid technological change Android OS growth Competitors moves in online music market Rising pay levels Price pressure from Samsung over key components Threats

SAMSUNG

4Ps of Samsung  Innovative products  High tech producer such as micro-chips and semiconductors  Also provides micro-processors for Apple  Offers diverse products or wide range of products

PRODUCT

 Competitive pricing and also uses penetrative pricing

 Price is reduced for more sales  Samsung offers many of its products for sale

TARGET MARKET

PRICE

 Highly effective advertising and brand sponsorships  Direct selling to retailers and service dealers  Sales promotion

 Intensive distribution

 Advertisement on TV and online ads

 Exclusive Samsung showrooms

 Sports sponsorships

 Modern retailers and distributors

PROMOTION

PLACE

Samsung segmentation Strategy 

Geographic



Demographic

Target 

Also main target is young energetic consumers



Also offers product for the benefits of ordinary consumers



Countries having low capital income

Positioning 

Samsung concept stores



Wide case network



Style and technology



Tag lines used by Samsung (The next big thing, Six Appeal)

SWOT analysis of Samsung  Strong marketing and advertisement team  Leading innovator in mobile device technology  Strong financial performance  Innovation and design  Focus on environment Strengths  Low production costs  Largest share in mobile phones and 2nd place in smartphones sales

    

 Growing mobile advertising industry

 Rapid technological change

 Growing demand for quality application processors  Growth of tablets market  Obtaining patents through acquisitions

Opportunities

Too low profit margin Main competitors are also largest buyers Lack its own OS and software Focus on too many product Patent infringement Weakness

 Declining margins on hardware production  Breached patents  Price wars  Saturated smartphone market in developed countries Threats

Recommendations Apple 



Company can develop strong relation with the consumers by effective after sales service Can attract new consumers of low income

Samsung 

Can increase sales more by new innovative products



More resources on R&D for future products

Apple

Conclusion

Samsung



Best innovative products





Has to consider the low income earners

Best option for the low capital earners



Leader of electronics and should minimize diversification