Marketing Plan Report - Samsung Galaxy S10
Marketing Plan Report - Samsung Galaxy S10
• Class: 17G1BM02
• Lecturer: Lê Hồng Đắc
• Group Member:
1. Nguyễn Lê Thiên Ngân - 179011040
2. Huỳnh Anh Thư - 179011042
3. Bùi Khắc Hoà - 179011049
Providing to the board of directors and all the shareholders of the Samsung Vina Electronics Co.,
Ltd to have an overview of what the marketing department is going to do for promoting the S10
series smartphone as well as the financial data of this project for 1 year until we launching the next
generation of the Samsung S model.
TABLE OF CONTENT
I. Company Introduction..................................................................................................................1
1.1. History.......................................................................................................................................1
1.2. Vision........................................................................................................................................1
1.3. Vision........................................................................................................................................1
II. Executive Summary..................................................................................................................2
III. Market Analysis........................................................................................................................2
3.1. Market Size................................................................................................................................2
3.2. Market Growth..........................................................................................................................3
3.3. Market Demand.........................................................................................................................4
3.4. Market Needs............................................................................................................................4
3.5. Market Trend.............................................................................................................................4
3.6. Market Share.............................................................................................................................5
IV. SWOT ANALYSIS...................................................................................................................5
4.1. Strength.....................................................................................................................................5
4.2. Weakness...................................................................................................................................6
4.3. Opportunities.............................................................................................................................6
4.4. Threats.......................................................................................................................................6
V. COMPETITION........................................................................................................................6
VI. PRODUCT OFFERINGS..........................................................................................................8
6.1. Design........................................................................................................................................8
6.2. Camera.......................................................................................................................................8
6.3. Performance...............................................................................................................................8
6.4. Intelligent...................................................................................................................................8
VII. DISTRIBUTION CHANNEL...................................................................................................8
VIII. MARKETING STRATEGY.................................................................................................9
8.1. Objectives..................................................................................................................................9
8.2. Target Segmentation................................................................................................................10
8.3. Positioning...............................................................................................................................11
8.4. Marketing Mix.........................................................................................................................14
IX. Financial Report......................................................................................................................18
9.1. Sale Forecast............................................................................................................................18
9.2. Marketing Budget....................................................................................................................21
X. CONCLUSION.......................................................................................................................24
REFERENCE.....................................................................................................................................25
I. Company Introduction
1.1. History
Samsung Electronics was founded in 1969 and quickly become a major manufacturer in the Korean
market.
1999, Launched the world’s 1st MP3 phone. Developed a wireless Internet phone
2010: launched the Galaxy Smartphone series with the Android OS. Began mass producing 64-
gigabit 3-bit NAND flash memory. Become the #1 global electronics company in sales
1.2. Vision
The Vision 2020 is at the core of our commitment to create a better world full of richer digital
experiences, through innovative technology and products.
The goal of the vision is to become a beloved brand, an innovative company, and an admired
company. For this, we dedicate our efforts to creativity and innovation, shared value with our
partners, and our great people.
We have delivered world best products and services through passion for innovation and optimal
operation.
We look forward to exploring new business areas such as healthcare and automotive electronics,
and continue our journey through history of innovation.
Samsung Electronics will welcome new challenges and opportunities with joy.
1.3. Vision
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II.Executive Summary
Samsung is going to start a campaign to introduce totally new product that can comprehend mistake
which struggle in s9 series. The company now presents galaxy S10, S10+ have been nominated to
compare with flagship production come from other companies such as Iphone XSmax, Goggle Pixel
3XL, Huawei P30, P30 pro and Xiaomi Mi9, Mi9 TE.
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Galaxy S Galaxy tab Gear VR Wireless QLED TV Blu-ray Fridge Mobile
A 2017 Charging UHD 4K Processors
Dock
Galaxy Note Galaxy tab Galaxy Phone Premium Sound + Washing Z-SSD
S Watch Holster 4K UHD Sound machine
TV Speaker
(With
Integrated
Bass
Speaker)
Galaxy A Galaxy Gear 360 Tablet 4K UHD Sound bar Air Mobile
Book Accessories TV (With Bass conditional image
Speaker) sensor
Galaxy M Galaxy tab Gear Fit2 Galaxy Full HD TV Wireless Vacuum RDIMM
E Pro Buds Speaker cleaner
Gear S3 Earphone
frontier
Bluetooth
Gear IconX
For 2018, the number of smartphone users in Vietnam is 32.43 million people. Vietnam's
population is about 95 million people in 2019, we estimate to reach 35.76 million of smartphone
users. This would mean that around 37,64 percent of the population would use the smartphone in
this time, with this share predicted to rise 5.48 percent by 2019.
3
Smartphone growth rate as share of the population in Vietnam from 2017 to 2023.
Consumers remain willing to pay more for premium offerings in numerous markets and they now
expect their device to outlast and outperform previous generations of that device. They also want
phones with great displays, fast connectivity, all-day battery life, and a few extra luxuries thrown in,
now.
The Vietnamese smartphone market is going to the saturation period. in recent years, Sharp, LG,
HTC and Sony has been eliminated out of VN SP marketplace due to the fact that they were left
behind. The Growth of SP has never been delayed, user's demand increased day by day and to fulfill
the mission, only those strongest brands who keep up with the changes made by this new generation
such as Samsung, Apple, Huawei, Xiaomi, Oppo and Vivo could withdraw. However, the market
tournament has gone down to the pricing round, whoever brings the most benefit with less cost can
raise their portion sharply, hence, brands come from CN: Xiaomi and Huawei, especially Xiaomi
seem to sole this one well enough to speed up its growth rate up to 5% a year in comparing with SS
and Apple.
Chinese smartphone brands have expanded in their market share in Vietnam smartphone which
leads to the famous trend of using smartphone at medium price segment; therefore, Samsung has to
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encounter this situation by release new genre of smartphone with lower price version in order to
meet the requirement from the market.
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- Sharing battery.
4.2. Weakness
- Quick charge still remains 18W compare to Xiaomi 24W and OPPO VOOC 40W.
- Samsung face ID still uncompetitive to Iphone XSmax and Xiaomi (3D face ID).
- The original made Samsung core the Exynoss 9820 is a little bit underrated compare to Apple
A12 and Qualcomm snapdragon 855 in overall using.
4.3. Opportunities
- Sales rate tend to increase by 150% compare with S9/S9+ last year.
- Becoming a positive premise for producing upcoming Note10 ‘flagship’ that can compete to all
other ‘flagships’ from competitors with 5G satellite connection technology.
4.4. Threats
- Xiaomi and Huawei are going to release their 2019 ‘flagship’ which utilize both 5G and
Snapdragon 855 with the lower price. People in China, whom represent for half of the market
share will have their attraction into the production.
- Main competitor Apple still cover their products, left unknown prediction for 2019 trending.
V. COMPETITION
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Competition framework of Xiaomi and Samsung
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VI. PRODUCT OFFERINGS
The result of 10 years of pioneering mobile first, the Samsung introduces the next generation of
mobile innovation – Galaxy S10 – the next generation Galaxy has arrived.
6.1. Design
- S10 goes beyond the bezel, to introduce the Cinematic Infinity Display for the first truly
uninterrupted smartphone viewing experience. Made possible only by our unique laser-cutting
process.
- S10’s Dynamic AMOLED screen produces the only HDR10+ viewing experience on a
smartphone, all white drastically reducing 29% harmful blue-light to make even the brightest of
scenes easier on your eyes.
- We’ve revolutionized screen technology to deliver the first ultrasonic fingerprint sensor fused
right into our ground-breaking display.
6.2. Camera
- S10 redesigns the mobile camera with 5 pro-grade cameras that let you shoot like a pro.
- Powered by our revolutionary Neural Processing Unit, 3 rear Pro-grade cameras mean you can
shoot with not just telephoto and wide lenses, but an epic ultra-wide.
- S10 enables you to record professional-grade HDR10+ video, resulting in even greater colors or
contrast frame-by-frame, while Super Steady lets you shoot hi-motion video without the motion
sickness.
6.3. Performance
6.4. Intelligent
- Bixby Routines, the next generation adapts to you, learning your habits to automatically perform
common tasks.
- Bixby Voice Unlock, a smarter Bixby now recognizes you, so, you can unlock with just a voice.
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We currently have two manufacturing plants in Vietnam, one is a mobile phone factory in Yen
Phong-Bac Ninh industrial area (SEV company), and the other is a factory in Thu Duc - Ho Chi
Minh City (Samsung Vina company).
After completing the production, we transport products to the warehouse to prepare for distribution
through over the country. Samsung has two main types of distribution that are direct and indirect.
First, with direct distribution, it has another name non-level channel which accounts for 5% of
Samsung’s total sales. Samsung Galaxy S10 series is sold directly from SES stores to the
customers. Currently, Samsung has a total of 7 SES across Vietnam. Customers will be experienced
using the latest model at the store. Moreover, SS also have their own website, customers can order
directly on this website without through any distributors.
Second, with indirect distribution, we have two types: the 1-level channel which accounts for 50%
of Samsung total sales, we will send directly for retailer without through wholesalers (such as The
Gioi Di Dong, Vien Thong A, FPT shop, Dien May Xanh, etc).
Thanks to these retail stores, products are easy to reach to customers that bring high business
performance for the company. The other one is the 2-level channel which accounts for 45% of
Samsung total sales, we distribute throughout wholesalers such as Phu Thai Gr, Viettel, Petrosetco
Distribution. With the distribution through the main distributors, we save some costs such as rental
costs, water & electricity expenses. On the other hand, through this type, we can control our
distribution system more easily that creates a sustainable competitive advantage.
I. MARKETING STRATEGY
8.1. Objectives
We have set aggressive but achievable objectives from QI/2019 to QIV/2020 of Samsung Galaxy
S10 series.
- Sell 1.2 million units in the QI/2019 and 4.4 million units in the QIV/2020.
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- Launch next model in series S10+ with using 5G.
- Achieve 30% market share in the end of 2019.
Segmentations is about segregating the target customer’s basis on the Age, Gender, Income,
Lifestyle, Behavioral and Psychographic Segmentation.
8.2.1. Geographic
Dividing your customer personas or groups basis the geographical areas they reside in (rural and
Urban) and then deciding on which segment area you want to target. Samsung targets both the rural
as well as urban population.
Samsung launched its “Samsung Guru” for customers of rural areas as well as “Galaxy series” for
urban areas. Samsung has a deep product mix and has products which cater to different customer
segments and classes.
8.2.2. Demographic
Demographic segmentation is basically segmenting customer groups basis the age and their earning
potential.
For Samsung, the demographic segmentation lies between 20-55 age group and people have income
above fifteen million VND.
8.2.3. Psychographic
Psychographic segmentation is dividing your market based upon consumer personality traits, values
and lifestyles.
Samsung too has products for people who make their choice based on their lifestyle. Samsung
Galaxy series in one such series with innovative features and stylish design developed especially for
high-end customers who like to flaunt and make a style statement with their smartphones.
8.2.4. Demand
The demand segment shows customers' need whose want to buy our products based on the features
and quality of products and utilities that the product offers.
For Samsung, they aim to people who refer to use luxury goods, technology enthusiasts who want
to experience the superior features that Samsung has provided in this latest series. In addition, S10
is also aimed at customers who want a phone that can work as a small computer that can be portable
just need to connect a keyboard and a wireless mouse.
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Type of segmentation Segmentation criteria Samsung target customer segment
8.3. Positioning
The concept to position the brand based on how much product cost and how many people using that
product on the market. Therefore, we use 2 elements: price and trendy of the latest product between
Samsung and direct competitors such as Apple, Huawei, Nokia, Pixel, Xiaomi.
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The latest smartphone perceptual map in Vietnam.
Thanks to the relentless development, Samsung has achieved remarkable achievements in 2018,
including the top 5 most innovative companies and top 5 global brands.
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The best global brands 2018 rankings.
POPs & PODs between Samsung Galaxy S10+ and iPhone XS Max.
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POPs & PODs between Samsung Galaxy S10+ and Samsung Galaxy S9+.
+ Design: The S10 series represent the elegance and sophistication of an exclusive smartphone,
which make it stands apart from the previous Galaxy S models as well as other current
smartphones in the market. The S10 models have larger screen sizes with the latest display
technology Infiniti-O.
+ Features: The S10 smartphone is equipped with the most modern technological features in the
smartphone industry. That is the ultrasonic fingerprint sensor technology integrating into the
front screen, instead of the users have to scan the fingerprint on the backside near the camera
group in the S9 generation.
+ Camera: S10 series promise to bring users the most realistic and quality photos with a triple-
camera system including lens / wide lens / ultra-wide lens.
+ Performance: The S10 series is Samsung's most powerful phone at the current time with the
most powerful processors, memory up to 1 TB and battery capacity up to 4,100 mAh.
- What do we care about our consumer after they purchase the S10 smartphones?
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Gain credit from our consumers is always our important goal, therefore we provide to our
consumers:
+ 1-year insurance package.
+ 2-year guarantee.
8.4.2. Price
- How much are the prices of S10 series?
The following table shows the listed prices of the S10 series in the retailer stores:
+ The prices above are listed in all Samsung showrooms. The retailers should not set the
product’s price higher than the listed price. This prices are based on COGS, the value of the
products, and the price of competitors’ products.
+ In order to encourage retailers, import large amount of the Samsung latest smartphone series,
we will set a profitable wholesale price for all retailers. Especially, Samsung will increase the
discount for any retailer that finish payment quickly and use bank transfer service for their
payment. For example: a discount for 1 retailer in Ho Chi Minh City would be increased from
6.5% to 8.5% if the payment of orders valued from VND 2 billion and paid immediately.
Discounts are also increased to 8.8% if paid by bank transfer.
- How do we manage the price in our retailer’s system?
+ Samsung has always stated clearly the terms and regulations on how retailers should set their
price in the contract.
+ If the retailer was selling for less than the minimum price required by Samsung or was selling to
customers in other regions, causing unfair competition and conflicts in the retailer system.
Samsung would use sanctions ranging from mild such as réprimande to tough such as ending a
cooperation contract between Samsung and the retailer.
8.4.3. Place
- Channel 1: Samsung Mobile Showroom -> Consumer
+ In this channel, Samsung will sell the series S10 directly to the consumers through its showroom
system or SES (Samsung Experience Store).
+ Currently, Samsung has total 7 SES in Vietnam including 4 showrooms in Ho Chi Minh city, and
the other three stores in Ha Noi, Hai Phong and Kien Giang.
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+ Retailers are usually mobile supermarkets or electronics centers. To reach all the consumers
nationwide, Samsung has established relations with a lot of retailers throughout Vietnam. Here
are some of the official Samsung retailers:
• Thegioididong.
• FPT Shop.
• VienthongA.
• Lazada.
• Adayroi.
• Viettel Store.
• Nguyen Kim.
• CellphoneS.
• Hoanghamobile.
• Hnammobile.
• Mainguyen Luxury Mobile.
+ This channel accounts for about 50% of Samsung mobile phone total sales.
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• Petrosetco Distribution (PSD became Samsung official wholesaler in 8/2012). Petrosetco own a
+ These are the responsibilities of the retailer for the Samsung product:
• Minimum sales are 50 phones per month.
• Strictly abide by Vietnamese law provisions on goods management and circulation.
• Inform Samsung of price information, market penetration of new products from Samsung’s
competitors offered.
• Preserving the phone in accordance with the conditions and technical standards specified in the
time when the agent has not paid for Samsung.
• The retailer has to pay a deposit to Samsung as a guarantee of the retailer’s debt. The lowest
debt limit for the retailer is equal to the deposit amount. Debt payment must not exceed 15 days.
If the retailer fulfills their payment on time, the retailer will be rewarded. After a period of 15
days, if the agent still has not paid the debt, Samsung will automatically deduct the deposit to
make up for the debt.
+ When receiving a shipment from the company, it is the responsibility of the retailer to notify
Samsung in writing with signature and seal (if any) of the purchaser.
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+ The retailer should provide Samsung with the following notarized documents: business
registration, business establishment decision (if any), appointment of director and chief
accountant (if any), and the person appointed negotiate with the company (name, position,
signature).
Before we sell the S10 model to the market. Our marketing departments will contact with our
wholesalers & retailers to inform them about the S10 series and convince them to purchase with
bigger bills.
+ All information related to this new smartphone models.
+ The sale opportunities of the S10 series.
+ Promotion programs
+ Training course for saler of the retailers.
+ Samsung always support product shipping fee to all retailers.
8.4.4. Promotion
+ Most of our marketing budget would be invested on our advertising campaigns for the Samsung
Galaxy S10 series. Specifically, we will spend 60% of our total marketing budget for advertising
activities mostly in QII/2019 and QIII/2019. Therefore, the calculation for this project would be:
- The following table describes some of our main advertising campaigns for the S10 series:
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Campaigns Describing
- The following table shows our expected sale volume and sale revenue of 3 S10 models from
QII/2019 to QI/2020:
S10e 200 2,340 150 1,755 150 1,755 100 1,170 600 7,020
S10 700 10,990 650 10,205 500 7,850 400 6,280 2,250 35,325
S10+ 300 5,310 300 5,310 200 3,540 200 3,540 1000 17,700
Total 1,200 18,640 1,100 17,270 850 13,145 700 10,990 3,850 60,045
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Billion VND
- The following pie chart illustrates our sales forecast from QII/2019 to QI/2020 for the S10
series.
- Comment:
We predict that the S10 series will boost our performance in the smartphone industry in Vietnam
as well as the reputation of the Samsung Galaxy models to the new level. The S10 series are
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estimated to raise the growth rate from -12.4% up to 29%. So the average growth rate should be
maintained at around 7.8%.
- The following bar chart illustrate growth rate of Samsung total revenue sale of the Samsung
Galaxy S model for each year:
Billion VND
- We decided to spend around 4.0% of our total sales for the total marketing budget. Therefore, the
calculation would be:
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Content Budget
- The following table shows all the advertising campaigns that we are going to run for
promoting the S10 series in the Vietnam market.
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- The following table shows the figures of our estimated
marketing budget for S10 series.
Billion VND
QII/2019 QIII/2019 QIV/2019 QI/2020
Expense Total
(%) (25%) (22.7%) (25%)
- The following bar chart shows the total marketing budget for S10 series.
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Most of the budget will allocate mainly in the second quarter and third quarter of 2019 in order to
achieve the maximum sale volume. In the last two quarters, we are going to reduce the budget due
to the launching of Samsung Galaxy Note 10 into the market.
III. CONCLUSION
Despite the growing from the competitors, we are believing that Samsung will have a successful
year with the S10 models, which is the most powerful and innovative smartphone series that
Samsung has ever built. We will implement all the actions that have been planned in this report and
adjust the plan depending on the situation of the market and our consumers. Through this report, we
hope that the board of directors, the shareholders of the company, and all the employees will have a
clear vision of the path that the company will follow.
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