Since the advent of modernity and civilization, technology has played a pivotal role in the development of humanity. With the advancement of technology in the 21st century, the human race has witnessed improvements in education, medicine, commerce and communication. In fact, most research studies have shown that no aspect of the human life has been left “untouched” by technology in one way or another. The research focuses on the communications industry and especially the mobile phone industry.
Brief History of the Industry
The history of mobile phones charts the rise of devices that link wirelessly to the public switched telephone network. Speech by radio transmission has a long and diverse history dating back to Reginald Fessenden's innovations and shore-to-ship demonstration of radio telephony. During the Second World War, the military used radio telephony links. Therefore, hand-held radio transceivers have been in existence since the 1940s. Mobile telephones were availed by some companies in the 1940s. They were bulky and consumed massive power, and there was limited network support. Current cellular networks permit automatic and pervasive use of mobile phones for data and voice communications. Motorola was the first company to offer a hand held mobile phone in 1973. For the purpose of this research paper, Samsung Company will be discussed.
Samsung is a company that has a South Korean origin. The company provides diverse products, which are mainly industrial, electronic, and services through subsidiaries. The electronic goods comprise of radio systems, phones, TV sets, fridges, among others. They are intended to making life more comfortable for people. Mobile phones, which we are seeking to market, offer entertainment and communication services, as well as data storage facilities, to customers. The phones are also integrated with other facilities such as the camera. This allows the user to take photos. Samsung is trying to increase the marketability of its products in the Saudi Arabia. This is achievable through intensive marketing campaigns, as well as maintenance of a production line with quality products.
The history of Samsung and mobile phones stretches back to over ten years. In 1993, the company developed the lightest cell phone of that time. Recently, Samsung became dedicated to the 4G industry. Samsung overtook Apple in Smartphone shipment becoming the world’s top Smartphone vendor according to new data from strategy analytics. Its profits more than doubled, and its growth got boosted largely by the sales of Galaxy S2 super phone (Hoyle, 2012).
The advertisement for Samsung Galaxy S2 has done remarkably well. The main outstanding attribute about this brand would be the 8 megapixel resolution camera that is able of recording videos in entire high definition mode at 1080p. The burden in the handset is about 116g which enclosed within a slim 8.49mm chassis. The boundaries get curved effortlessly and nicely which offers it a superb sporting appearance. The phones rate sensible strategy to communicate oneself is a tremendous enhancement. The Galaxy S2 magnetic sensors and gyroscope percept hand movements and gestures easily from another feature (Hoyle, 2012).
Samsung Galaxy S2 series is competing with Nokia n8 plus the other same series cell phones. The company provides videos, photos and free downloads for screensavers and wall papers. The Samsung Galaxy S2 website gives tips and tricks on how to use it, and large focus is put on the online marketing official website product attributes and features. Online marketing is one of the proper marketing tools for Samsung Galaxy S2 users and consumers that have an interest in purchasing the phone. Samsung uses advertising as a part of their main marketing strategy (Hoyle, 2012).
The advertisement for Samsung Galaxy S2 has done exceptionally well. It works well with the latest android 2.3 operating system and also has a wide advertising television commercial and print screen which wins over many other smart phones. The brand has won over the users` hearts. It uses the features or attributes to promote the phone. The brand has become so popular because of its product based on extensive marketing strategies. The product is advertised as a smart phone product with its features including the super large screen, which displays items clearly, and this phone is currently the world`s thinnest smart phone. The official Samsung website provides features and details about the Galaxy S2 (Rogers launching LTE Samsung Galaxy S II, 2011).
Product and Branding Strategy
Samsung Galaxy S2 was and still is a spectacular phone. At its launch time, S2 was the most expensive phone of Samsung and the most features packed one in the global market. A product of that much scale and scope and with so many new features has to go through critical runs and test marketing. The next generation smart phone that is vivid, fast, slim, with dual core processor, Super Amoled plus display and 8.49 mm thickness is in the market. It has the best viewed experience, outstanding power and performance and futuristic user interface. Galaxy S2 designed for professionals and gadget freaks who love a feature packed cutting edge phone with unparalleled performance, and S2 has successfully captured that market. The brand is different from its competitors because it is slim, fast and vivid, and it has literally beaten every competitor in a screen display quality and page loading or processing. It has a 1.2 gigahertz processor, ms office files support, a camera with high definition recording, a big, bright display and ability to play multiple formats of files (“Samsung Galaxy S2: what you need to know”, 2012).
The Samsung Galaxy S2 differentiation is mainly in the phone being the iphone touch screen, with a unique design. The phone is the world`s thinnest phone; hence, it has different attitudes to smart phone. Moreover, its different attributes have led to different attitudes towards different perception among the potential customers. The brand personality is to lifestyle, imagination, liberty to sophisticated technology, regain, innovation, passion, stability, reliability and innovation hopes. It further shows dreams and aspirations and gives power to the people through technology. Samsung Galaxy S2 uses improved hardware personality which is also about simplicity and dual core operating system. It is and the removal of complexity from the inventor and pioneer in people lives, people-driven inventing new technology. It is also a product design and about getting viewed as easy and user friendly humanistic company with yet unique design and heartfelt connection with its customers (“Samsung Galaxy S2: what you need to know”, 2012).
The broad awareness phone creates a massive impact to the consumers. Samsung uses a visual of apple as their symbol. White font with blue background is easy to remember and recognize. The word Samsung is written on it, and an unusually short slogan which sounds yet powerful to describe the product. The brand name “Galaxy S2” sounds straightforward, typical, easy to create a message and recall the brand, easy to pronounce and the slogan says all with the words, “Vivid. Fast. Slim” (“Samsung Galaxy S2: what you need to know”, 2012).
Differentiation and Product Classification
Samsung holds the copyright of Amoled screens and, hence, super Amoled plus screen is available only in Galaxy S2 for quite a long time. The IC chips monopoly of Samsung also helped a lot in providing an edge. The 1.2 GHz core and parallel processing speed got beaten only by another Samsung Smartphone, Galaxy Note. Galaxy S2 can be categorized as a specialty product because it is sought after by those customers, who prefer a seamless, fast and cutting edge performance from their cell phones at a reasonable cost. People who prefer a more corporate image seeks a blackberry, people who are brand conscious buy an Apple iphone, but only Samsung Galaxy S2 delivers performance and stable, consistent service with a work-meets-pleasure device (“Samsung Galaxy S2: what you need to know”, 2012).
Samsung IS AN electronic appliances unit deals with mobile phones, tablet, televisions, audio video camera, camcorder, home appliances among others. Galaxy S2 falls in the Smartphone category of the Samsung mobile phones subgroup. Other mobile phone subcategories are tablet smart phones, Smartphone, essential phone, dual sim phone, touch phone, multimedia and cdma phones (“Samsung Galaxy S2: what you need to know”, 2012).
Product Life Cycle
Samsung Galaxy S2 is in earlier maturity stage of its lifecycle but yet to reach its peak. Samsung has moved to powerful Smartphone models, and the growth rate of sales has started to diminish. There are still a few innovations in the way; hence there is still little more scope of growth and some time before S2 reaches its maturity stage, but competitors have started to catch up with the standard of Galaxy S2.
Samsung Galaxy S2 is a fast phone for a fast network. The fastest network speed currently available is 4G, so naturally, the brand comes ready to jump right on board and make the most of advantage the network can offer. Today, it is possible to check voicemails and one can select the ones to play or delete. Galaxy S2 smart phone includes a 1.5 GHz processor to store video, games and information fast and smoothly. Galaxy S2 super plus screen is the industry standard for jaw-dropping color. Finally, the phone uses the state-of-the-art Android, 2.3.5 Gingerbread as the operating platform. It is fast, versatile, and extremely customizable. Most importantly the user has access to over 250 thousand apps via google play (Samsung Galaxy S II Features 2012).
The Galaxy S2 is well known due to its S-AMOLED capacitive touch screen which delivers terrific show quality for all manner of media items. The screen delivers wide viewing angles plus sheer perfection even though from outside. That is something which many other phones battle to do well. The Samsung Galaxy S3 is likely to possess similar touch screen technologies, yet one can anticipate dissimilarities inside terms of the resolution plus perhaps the dimensions of the screen (Samsung Galaxy S II Features, 2012).
The product supports GPS, 3G with AGPS, WI-FI, Edge/GPRS, USB 2.0 and Bluetooth. The phone has internal storage of 16 GB and one GB RAM, that is more than enough, and a memory card slot in case one requires extra storage space. Finally, the phone has a 1650 Mah Lo-ion battery offering one a talk time of 8 hours on 3g network and remarkable 18 hours on 2g network. Samsung Galaxy S2 exclaimed the cell phone as really impressive, and so is its price (Samsung Galaxy S II Features, 2012).
Branding, Packaging and Labeling
The company has come up with a simple method to nurture its Smartphone, focused on its ever expanding portfolio of the industry leading android which identifies specific functionality. There are new ways to identify the Galaxy Smartphone as per the latest name allocation. The new designs include the given classes that smart phone products fit. The packaging is super for this brand. An 8 x6 x 2.5 inch deep sea blue box designed to slide like a matchbox and well compartmentalized inner black box that opens like a box of cake is the description of Galaxy S2. The outer covering has a pictorial representation of details of the features on the back side. The powerful drawback on the packaging is the absence of the user manual. The overall packaging shows lots of creativity, information and catching. The inner black box that slides of the cover contains a durable material which can cope with a decent amount of burns and damages (Samsung Galaxy S II Features, 2012).
The phone is super, and being a new Samsung entry, the price was high, targeting a specific niche. Performance is the key when it comes to the customer consideration and price does not matter much. In different countries, the product is priced differently with the majority taking a low price entry in comparison with the other smart phones in the same series. The price is as low as $ 550 in some countries. Samsung Galaxy S2 is classified as a specialty product, hence, a skimming pricing. The company used a premium pricing, setting the prices high for quality. The product targets a specific segment which is willing to pay the high price for the performance. The product is sought after by those customers, who prefer a seamless, fast and cutting edge performance from their cell phones at a reasonable cost. People who prefer a more corporate image seeks a blackberry, people who are brand conscious buys an Apple Iphone, but only Samsung Galaxy S2 delivers performance and stable, consistent service with a work-meets-pleasure device.
Price skimming or premium pricing strategy involves setting the prices relatively high for a product or service at first, and then the price is lowered overtime. This is a version of price discrimination. Such strategies allow the company to regain faster and overdo the competitors’ move who may cause a reduction of prices in the market. The aim of price skimming strategy was to capture the consumer surplus. However, this strategy came along with some setbacks. The method is most applicable in situations of elastic demand, which was not the case with the Galaxy S2 product, and skimming encourages the entry of competitors. However, since the company has the advantage of making and keeping leadership in the technology world, earning the high returns was possible during the initial stages of the Galaxy S2 to recover its initial investment.
The competitors started producing an equally same product, leading to aggressive lower prices, making it hard for the followers to stay in the market. Samsung has also used penetration strategy setting the prices of Galaxy S2 lower than the competitor’s smart phone in the same series. This was aimed at capturing the competitor’s customers. The product was initially available directly from AT&T online stores for $99 with free shipment. The promotion was the best promotional offer in the market at that time (Raphael, 2011).
The introduction and launching of Samsung Galaxy S2 is done in different times all over the world. This gave the competitors time to counter the innovation so that by the time the product reached some areas, the competitors` product was already in the market. The opportunity to maximize sales became limited. A multi launching of any new product be it an improvement of Galaxy S2 or another smart phone in the Samsung family will produce more returns than before. Samsung needs to plan and launch the products at the same time in many countries to limit the competitors’ chances of penetration (Samsung Mobile, 2012).
Recommendation two: The phones need some improvements, especially in the custom ringtones. The downloaded or transferred ringtones fail in most cases. Further, instruction manual needs to be inserted to help consumers understand the phone attributes.
Recommendation three: In the past, Samsung kept silence on its sales but it is now doing a U-turn and claims to have sold ten million Galaxy S2 smart phones into the retail channel. There is no doubt that the brand is popular and well received device in the market, however, the competitors may take the Korean company claim that Samsung has doubled the number of devices in its retail channel in weeks. It is likely that Samsung has impressive sales figures for its Galaxy S2 Smartphone for every UK leading mobile network that carries the device. The company has a challenge to impress the US market and to counter the competition. Galaxy S2 being a specialty good, a suitable strategy is required to capture the segment (Hoyle, 2012).
In today’s era marketing is extremely crucial in promoting a new product and/or service and it forms the only informative way to the consumer. Marketing strategies are also crucial for a business as they can attract customers to buy specific items boosting the company’s income. Galaxy S2 got popularity in the market because of its spectacular attributes and entertaining looks. Despite that, a strong strategic marketing has boosted its popularity in the market worldwide. The phone has a giant screen which displays items clearly and makes one`s video watching experience much better (Raphael, 2011).
The advertisement of this phone was also done so attractively. It works with the least android system of operation with a super wide screen above other phones in the same series. The company has a new way of nurturing its smart phones, focused on its ever expanding portfolio of the industry leading android devices. Samsung Galaxy S2 series is competing with Nokia n8 plus the other same series cell phones. The company provides videos, photos and free downloads for screensaver and wall paper. The Samsung Galaxy S2 website gives instructions on the operation of the phone, and large focus is put on the online marketing official website product attributes and features (Raphael, 2011).
Online marketing in one of the powerful marketing tools for Samsung Galaxy S2 users and consumers who are interested in purchasing the phone. Samsung use advertising as a part of its main marketing strategy (Samsung Mobile, 2012).