marketing strategies comparison between samsung, htc and motorola

PRESETATION ONMARKETING STRATEGIES

PRESENTED TO:

PROFESSOR VISHAL CHAVAN

GROUP PARTICIPANTS

SNEHA J CHOUHAN (ROLL NO. 21)

DR. D Y PATIL UNIVERSITY,

SCHOOL OF BUSINESS MANAGEMENT,

NAVI MUMBAI.

CONTENTS

1. Introduction to marketing strategies

2. Scenario the mobile sector industries in India

3. Brief Introduction (Samsung, Motorola and HTC)

4. Comparison on the basis of parameters like:

• Vision, Mission.

• Marketing mix

• Value Chain Analysis

• PLC (Product Life Cycle)

• New product development

3. Conclusion

1. Introduction to Marketing strategies

• Marketing strategy is the goal of increasing sales and achieving a sustainable competitive advantage.

• Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives

• A marketing strategy is a process or model to allow a company or organization to focus limited resources on the best opportunities to increase sales and thereby achieve a sustainable competitive advantage.

• A strategy is a long-term plan to achieve certain objectives. A marketing strategy is therefore a marketing plan designed to achieve marketing objectives.

• For example, marketing objective may relate to becoming the market leader by delighting customers. The strategic plan therefore is the detailed planning involving marketing research, and then developing a marketing mix to delight customers.

• Every organisation needs to have clear marketing objectives, and the major route to achieving organisational goals will depend on strategy. It is important, therefore, to be clear about the difference between strategy and tactics.

2. THE SCENARIO OF MOBILE SECTOR INDUSTRY IN INDIA

o As here in graph we can see how mobile industry take stride in 2005 and continued in 2007 as well while landlines scoring almost same in users from 2005-2007.

o In 2008-09 the overall telecom equipments revenue in India stood at 136,833 crore during the fiscal, as against 115,382 crore a year before.

o The mobile handset market is expected to show steady growth through 2014 when end user sales surpass 206 million units.

Reasons for choosing Mobile Industry

• Mobile industry in India is the fastest growing industry with lotof opportunity to grab ahead.

• Factors responsible for the growth of the industry:

Growing income of the middle-class families,

Popularity of mobile based services like online ticket booking

Low rate mobile connection plans

Technological advancement

India is the fastest growing telecommunications industry in theworld, it is currently holding a market of 706.69 Million (Dec2014) mobile phone users and is projected that India will have1.159 billion mobile subscribers by 2015.

Major Players in Mobile Industry

• Some of the major players are

– Nokia

– Samsung

– LG

– HTC

Present Scenario of Indian Mobile Industry

• India constitutes approximately 10 percent of world wilesale of mobile devices. “Market is supported by globaland local players as well.”

• “Growing influence of local handset players in the low-end segment has forced high-end companies to sellphones at a discounted rate.”

• Sales of mobile has shown an aggregate increase ofabout 50 %.

• Despite very high competition Mobile industry is growingat a very high pace.

3. Background about the mobile sector industries

(Samsung, Motorola and HTC)

INTRODUCTION TO SAMSUNG COMPANY

• Samsung is a South Korean multinational conglomerate company headquartered in Samsung Town, Seoul.

• It comprises numerous subsidiaries and affiliated businesses, most of them united under the Samsung brand, and is the largest South Korean chaebol (business conglomerate).

• Samsung was founded by Lee Byung-chul in 1938 as a trading company.

INTRODUCTION TO MOTOROLA COMPANY

• Enterprise Mobility Solutions: Headquarters located in Schaumburg, Illinois communications.

• After having lost $4.3 billion from 2007 to 2009, the company was divided into two independent public companies, Motorola Mobility and Motorola Solutions on January 4, 2011.

INTRODUCTION TO HTC COMPANY

Industry: Communications Equipment

Founded: 1997

Country: Taiwan

Chairwoman: Cher Wang

Employees: 17,413

Revenue: $9.77 B

77th most powerful brand in Forbes list.

4. Comparison on the basis of parameters like: Vision, Mission.

COMPARISON ON PARAMETERS BASED ON:

SAMSUNG MOTOROLA HTC

VISION “Inspire the World, Create the Future."

"Our history is rich. Our future is dynamic. We are Motorola and the spirit of invention is what drives us."

“Our vision is to address your communications and software automation requirements with intuitive Internet platforms and professional branding initiatives.”


MISSION Everything we do at Samsung is guided by our mission: to be the best “digital-e-Company”.

We are a global communications leader powered by a passion to invent and an unceasing commitment to advance the way the world connects. Our communication solutions allow people, businesses and governments to be more connected and more mobile.“

We are a global IT solutions provider adding value to our clients and people through emerging technologies. We are dedicated to the success of our clients, employees, business partners, suppliers, community, and stakeholders.

5.Marketing Mix

1. PRODUCT

SAMSUNG MOTOROLA HTC1)Tablets2) Mobile phones – Smart phones, normal phones,3) Televisions – LEDs, LCDs. Plasma TV, SMART TV, HDTV etc4) Cameras and Camcorders5) Refrigerators6) Air conditioners7) Washing machine8) Microwave ovens9) IT – Laptops, printers and accessories.

The product portfolio is one of the strongest point for Samsung.

In creating products, Motorola concentrates on:attractive designexcellent call-qualityease of usevalue-added features including music player, games, camera, and video featureshigh quality, reliable products.

MOBILESTABLETSCAMERA

2. PRICE


-Skimming price-Competitive pricing

Prices charged by Motorola are linked to the product life cycle.

As a product matures and sales increase, it is possible to reduce costs.

They offer products from lower range to higher range

3. PLACESAMSUNG MOTOROLA HTC

It works on the channel marketing concept wherein there are three segments. Sales and service dealers, Modern retail and Distributors. showrooms. The Modern retail segment includes large retailers like Croma, Hypercity, Vijay sales, Vivek’s and any others who are present in the modern electronic retail chain. Samsung being such a branded product, the retailers are bound to keep Samsung as an alternative for their customers.

Internet ON SITES LIKE FLIPKART,AMAZON, IN STORES , ETC

4. PROMOTION


on one hand, Samsung uses various marketing vehicles across the year covering festive season as well as non festive time. On the other hand, it gives many offers and discounts to its trade partners to motivate them to sell Samsung above competition. With such a strategy, Samsung’s brand is on the rise so that both, the pull as well as push strategy is working simultaneously in Samsung.

An important avenue for communication is advertising. Advertising is referred to as 'above the line' promotion.

Other types of promotion such as special offers and discounts are referred to as being 'below the line'.

AdvertisingCatalogsNewspapersTV

6. Value Chain Analysis

WHAT IS A VALUE CHAIN ANALYSIS?

What is Value Chain Analysis?

• The Value Chain Model was given by Michael Porter.

• Value chain analysis is one of the most widely used strategic tools that measure the perceived value of the customer.

• Organizations identify strategic advantages and disadvantages with the help of value chain analysis. Value chain refers to all the value-creating functions required for creating and delivering the goods and services to the target customers.

• It helps to analyse specific activities through which firms can create value and competitive advantage.

SAMSUNG

• The Analysis Value Chain Framework analysis has its shortcomings in not being able to represent value-adding activities that Samsung might be performing outside of the value chain.

• A lot of the value created by Samsung, even strictly in the mobile market, comes from things like branding and human resources which are not accounted for in such an analysis. I

• t’s because of this that we have selected separate analytics techniques throughout the report to understand Samsung and its operations from various perspectives.

• Determining inbound and outbound logistics and the changes that would result in them from the acquisition of AuthenTec and Synchronica and the new activities added was the most difficult and perhaps vague sections of the Value Chain Analysis because that’s not information readily available to the public.

• Determining how things would change outside of the obvious expectations related to data coming in and out of the new branches and what the new employees have to offer is a difficult task with the limited information available.

MOTOROLA

• What activities a business undertakes is linked to achieving its competitive advantage, and Motorola seemed to be best prepared to implement a global strategy, because of the superior competitive advantages of its foreign operations compared with Samsung Electronics, and HTC.

• Paradoxically, Motorola's rivals showed a greater disposition to use resources from outside of the United States (Business week 2008). Thus, Motorola need to largely focus on building a strategy that would allow the company to recover its competitive position in its own home market, which was essential for survival.

HTC

• The value chain is that an organization creates value by performing a series of activities and it represents how each competitive advantage created via an organization adds value to the service or product for each customer. In the HTC Company, R&D, Production, Marketing & Sales, Customers Service and Human Resource are adding the value to their company. (Hill & Jones, 2008)

7.PLC (Product Life Cycle)

What is Product Life Cycle?

A. INTRODUCTION STAGE:


In 1938, Samsung began as a small business trading produce and consumer goods. Almost 70 years later, Samsung has transformed itself into a global powerhouse whose superior products and services now range from semiconductors and LNG ships to fine chemicals and financial services, just to name a few.

Motorola introduced the original RAZR with an effective marketing campaign touting the RAZR as a must-have product. By 2006, the phone had sold more than 50 million units

The HTC Dream was the first cell phone to feature the Android software operating system. Other devices include the Desire, Explorer, Rhyme, and Sensation. HTC's phones are marketed by wireless communications carriers including T-Mobile USA.

B. GROWTH STAGE:


Samsung Galaxy has below sets which are currently on this stage: Samsung Galaxy S5: Price is INR 52000. Thus very low market share in countries like India. Popularity is only 2.6 % (Source: gsmarena.come). This has all new feature including Android Verrsion (Android Kitkat). It has sold below 1 lac sets in India (Souce: EconomicTimes)

RAZR phones experience relatively short life cycles, and the growth stage for these devices typically lasts for only a couple of years. During this stage, Motorola lowers the price of the phone, reducing the profit margin per unit but increasing overall profit for the company. During the growth stage, the market for a RAZR continues to expand and demand for the product continues to increase.

an expanded role covering operations, quality, sales operations and services

C. MATURITY STAGE:


Product is established and aim for the manufacturer to maintain a market share which they have already built. Thus product is highly standarised. Price of the product plays an importandrole. Samsung Galaxy has few sets in this stage, such as: Samsung Galaxy Core: Released on 6th May, 2013. With price INR 11000, it is at mature stage.

During the RAZR model's maturity stage, the model experiences increased competition from other products that adapt many of the phone’s popular features. Sales also start to drop during this stage and Motorola will typically continue to lower the price point of the phone.

HTC, the first maker of phones using software from Microsoft Corp. and Google Inc., has seen its share of the global smartphone market share fall to less than 4.2 percent from 10.3 percent in the third quarter of 2011, according to market researcher IDC. During that period, Samsung and Apple shipments more than doubled, helping trigger a 40 percent drop in HTC’s stock last year after a 42 percentdecline in 2011, according to data compiled by Bloomberg.

D. DECLINE STAGE:


Market for this product starts to decline. Even low price does not play any role because of old and very common features. This happens after maket becomes saturated. New products with better quality are present in the market. Galaxy has below set in this stage:

During decline, the RAZR is no longer regarded as the hot phone on the market. Other companies continue to introduce better products that have more features and use improved technologies. Decreasing sales eventually cause Motorola to discontinue a given RAZR model. Motorola discontinued the original RAZR in 2007.

HTC last year said it “dropped the ball” on products, pointing to weaknesses in design and engineering. The unveiling of models One X, S and V in February 2012 was supposed to herald a reversal of fortune, yet a lag of as many as six months before shipment, and complaints about connection problems and overheating, saw sales miss analyst estimates.

9. New Product Development

What do you mean by New Product Development?

NEW PRODUCT DEVELOPMENT BETWEEN:


INTRODUCINGSMARTWATCHES

Google’s acquisition of Motorola shifts the balance of power in the handset-patent conflict between Google and its operating system competitors,” said Ross Rubin, executive director of industry analysis for NPD. “Android’s momentum has made for a large pie that is attractive to Motorola’s Android rivals, even if they must compete with their operating system developer.”

NPD Display Search: HTC tablet could be coming this year, powered by Windows

13. CONCLUSION

CONCLUSION• In terms of market share Samsung contributes to a higher

segment, while HTC is second and Motorola is 3rd.

• Samsung, a Korean company is in huge demand by the customers due to its strategies of coming up with new products every now and then.

• HTC a Taiwanese company is also performing fairly. It’s known for its tablets and mobile phones.

• Motorola is in a revival stage where it has collaborated with Google to come up with new product to acquire market.