Corporate/Brand War - Apple and Samsung - Grade 11 Marketing Project
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CORPORATE WAR PREPARED BY: TANZEEL ABDUL JABBAR 11 - J
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Transcript of Corporate/Brand War - Apple and Samsung - Grade 11 Marketing Project
CORPORATE WAR
PREPARED BY:TANZEEL ABDUL JABBAR
11 - J
GEMS OUR OWN ENGLISH HIGH SCHOOL, DUBAI
TANZEEL ABDUL JABBARXI – J
2015 – 2016
Marketing project - Title: “Survey of demand for selected products available under different brand names through the household
enquiries in the local area .”
TOPIC
“Survey of demand for selected products available under different brand names
through the household enquiries in the local area .”
INDEX1. CERTIFICATE2. ACKNOWLEDGEMENT3. TOPIC4. INDEX5. APPLE INC.6. SAMSUNG7. GROWTH PROFILE
(APPLE)8. GROWTH PROFILE
(SAMSUNG)9. FINANCIAL PROFILE
(APPLE)10. FINANCIAL PROFILE
(SAMSUNG)11. MARKET SHARE AND
MARKET SEGMENT12. MARKETING MIX
13. PRODUCT MIX (APPLE)14. PRODUCT MIX (SAMSUNG)15. PRICE MIX (APPLE)16. PRICE MIX (SAMSUNG)17. PLACE MIX (APPLE)18. PLACE MIX (SAMSUNG)19. PROMOTION MIX (APPLE)20. PROMOTION MIX (SAMSUNG)21. SWOT ANALYSIS22. STRENGTHS23. WEAKNESESS 24. OPPORTUNITIES 25. THREATS
26.PROJECT REPORT27.MARKET SURVEY 28.QUESTIONNAIRE 29.CONTD. QUESTIONNAIRE30.GRAPH 131.GRAPH 232.GRAPH 333.GRAPH 434.CONCLUSION 35.BIBLIOGRAPHY
APPLE INC. Apple Inc. is an American multinational technology company that
designs, develops, and sells consumer electronics, computer software, and online services.
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976.
It was incorporated as Apple Computer, Inc. on January 3, 1977, and was renamed as Apple Inc. on January 9, 2007.
TIM COOK
CEO
APPLE INC.
LOGO
CUPERTINO, CALIFORNIA
HEADQUARTER
SAMSUNG Samsung is a South Korean multinational company headquartered in Samsung
Town, Seoul. It was founded by Lee Byung-Chul in 1938 as a trading company with forty
employees. They, later, diversified into areas including electronics, food processing, textiles, insurance and shipbuilding.
Samsung’s revenue was equal to 17% of the entire South Korea’s GDP.
LEE KUN HEE
CEO
SAMSUNG
LOGOSAMSUNG TOWN,
SEOUL
HEADQUARTER
Growth profile of Apple Inc.
1970s to 1990s - Introduction of :- Apple I, II and III (and
its series) Macintosh and its
series Apple fax modem Quadra and its series PowerBook and its
series Newton Message Pad iMac, iBook and
AirPort
2000s - Introduction of :-• iPod and its series
(Nano, shuffle, mini)• MacBook and its
series (started in 2006)• Apple TV (2007)• iPhone 1st Gen
(2007)• iPhone 3G and its
series (2008-09)• iPod touch (2008)
2010s - Introduction of :-• iPad and its series
(2010-15)• iPhone 4 and its
series (2010-13)• iPhone 5 and its
series (2012-14)• iPad mini (2012)• iPhone 6 and 6 plus
(2014)• iPhone 6S and 6S
plus (2015)
#1 World's Most Valuable Brands (FORBES 2015 RANKING)
Growth profile of Samsung 1999
Developed the world's first 3D LCD Monitor Developed wireless Internet phone (Smartphone)
2000 TV Phone and Watch Phone Make Guinness Book of World Records
2001 Ranked No. 1 of world's Top 100 IT Companies by BusinessWeek Develops World's first 40 inch LCD
2002 Launches slimmest TV in the world Launch of color mobile phones in which the new concept LCD is introduced
2004 Released 46" LCD TV for the first time in the world
2005 Released the world's first 7 mega pixel camera phone Developed the first-ever speech recognition phone
2008 Samsung takes No. 1 spot in U.S. cellphone market
2009 Announced its "Blue Earth" solar-powered phone
#7 World's Most Valuable Brands (FORBES 2015 RANKING)
Financial profile of Apple Inc.
NET WORTH :- $741.8 Billion (according to Forbes 2015 data)
MARKET SHARE :- 41.4% (according to Forbes 2014 data)
Financial Profile of Samsung
NET WORTH :- $199.4 Billion (according to Forbes 2015 data) MARKET SHARE :- 37% (according to Forbes 2014 data)
Market share (%) of Smartphone Subscribers
Market SegmentApple Inc. Samsung Middle - High Income
group Mixed economy
Marketing Mix What is a marketing mix? The marketing mix is a
business tool used in marketing and by marketers. The marketing mix is often crucial when determining a product or brand's offer, and is often associated with the four P's:
Price Product Promotion Place
Product mix of Apple Inc. Apple Inc. has continued to expand its product mix. This component of the
marketing mix determines the outputs of the business organization. In Apple’s case, the following are the main product lines:
Mac iPad iPod iPhone Apple TV Apple Watch Software
These Apple products currently available in the market show the firm’s diversification in this component of the marketing mix.
This product mix shows that Apple’s marketing mix is extensive in terms of product variety to address customers’ needs in different areas of their lives.
Product Mix of Samsung In Samsung’s case, the following are the main product lines:
Tablets (Galaxy, Pro etc.) Smart Phones (S, Note, Grand, Core etc.) Refrigerator AC (Max, Crystal etc.) Washing Machine and other home appliances Personal Computer Camera TV and Home Theatre
These Samsung products currently available in the market show the firm’s diversification in this component of the marketing mix.
This product mix shows that Samsung’s marketing mix is also extensive in terms of product variety and product range to address customers’ needs in different areas of their lives.
PRODUCTMIX
Price mix of Apple Inc. Apple uses a premium pricing strategy (image or prestige pricing). It is
similar to the skimming method. In this component of the marketing mix, the emphasis is on how prices
represent the company and its products, while meeting consumer expectations.
In Apple’s case, the premium pricing strategy involves relatively high prices. This pricing strategy helps maintain the high-end image of the company
and its products. Another effect of this pricing strategy is that Apple products attract a smaller
market share composed of people from the middle and upper classes. Thus, Apple’s price mix is aligned to the company’s premium product
development strategy.
Price Mix of Samsung
In this component of the marketing mix, the emphasis is on how prices represent the company and its products, while meeting consumer expectations.
Because of its different product categories, Samsung uses various pricing strategies. They usually use skimming and competitive pricing strategies.
In Samsung’s case, the skimming pricing strategy involves getting a high value in the start before competitors catch up.
Samsung uses competitive pricing strategy for it’s other products because they face more competition in areas like TVs, cameras and home appliances.
Place mix of Apple Inc. The company uses a selective distribution strategy. The following places are included in Apple’s distribution
strategy: Apple Stores (most visible places that sell the company’s products) Online Apple Store and App Store (also amazon.com, ebay) Authorized retailers (Walmart, Target, Best Buy, etc) Telecom companies (country’s top official telecom companies) Fulfilment services from companies like Amazon.com and eBay,
through which third parties sell Apple products online. Thus, Apple’s place mix is comprehensive in exploiting
different types of online and non-online distribution channels.
Place Mix of Samsung The company uses a intense distribution concept. It includes 3 segments : Sales and service dealers, modern retail and
distributors. Sales and service dealers handle key accounts and also open exclusive
Samsung showrooms. Examples of Retailers : Croma, Hypercity, Vijay Sales etc. Their distribution network is very interesting. Samsung has a single distributor
through whom they distribute throughout a territory. (In Mumbai,. Samsung has SSK distributors who distribute all their products.)
Promotion mix of Apple Inc. Apple’s marketing mix includes promotion activities that emphasize the
premium image and quality of the firm’s products. The promotional mix supports business position in reaching more target
buyers. In Apple’s case, this component of promotion mix includes the following
elements: Advertising (through the company’s website, Apple Stores, and through other firms,
such as technology news sites) Personal Selling (in the form of Apple Store employees who provide product-specific
information in the aim of convincing store visitors to make a purchase) Sales Promotion (exchange offers, modified payment plans, etc.) Public Relations (Apple Events - leaks of new product features, press releases, and
exclusive interviews are carefully implemented to maximize positive publicity) Thus, Apple has mastered the promotion component of its marketing mix.
Promotion Mix of Samsung Samsung believes in pulling the customer to themselves through advertising
and pushing the product to the customer through sales promotion. The promotional mix supports business position in reaching more target
buyers. In Samsung’s case, this component of promotion mix includes the following
elements: Advertising (through the company’s website, Samsung Stores, and through other
firms, such as technology news sites) Personal Selling (in the form of Samsung employees who provide product-specific
information in the aim of convincing store visitors to make a purchase) Sales Promotion (exchange offers, modified payment plans, etc.)
SWOT ANALYSIS
Strengths Analysis
APPLE INC. SAMSUNG Brand reputation Retail stores Strong marketing and
advertising teams Leading innovator in mobile
device technology Strong financial performance
Innovation and design Focus on environment Low production costs Largest share in mobile
phones and 2nd place in smartphones sales
Ability to market the brand Excellence in engineering
and producing hardware parts and consumer electronics
Weaknesses Analysis
APPLE INC. SAMSUNG High price Incompatibility with different
OS Defects of new products Patent infringements Decreasing market share
Patent infringement Too low profit margin Main competitors are also
largest buyers Lack its own OS and software Focus on too many products
Opportunities Analysis
APPLE INC. SAMSUNG Strong growth of mobile
advertising market Increasing demand for cloud
based services High demand Growth of tablet and
smartphone markets Obtaining patents through
acquisitions
Growing India’s smartphone market
Growing mobile advertising industry
Growing demand for quality application processors
Growth of tablets market Obtaining patents through
acquisitions
Threats Analysis
APPLE INC. SAMSUNG Rapid technological change Android OS growth Competitors moves in online
music market Rising pay levels Price pressure from Samsung
over key components
Saturated smartphone markets in developed countries
Rapid technological change Declining margins on
hardware production Breached patents Price wars
PROJECT REPORT
MARKET SURVEY Market research/survey is any organized effort to gather information about
target markets or customers. It is a very important component of business strategy.
Market research provides important information to identify and analyse the market need, market size and competition.
Surveys have been used in various fields of research, such as sociology, marketing research, politics and psychology.
METHODOLOGY : QUESTIONNARE In survey research, a questionnaire is an instrument that is comprised of a set
of questions to be asked to the participants or respondents of the survey. Sir Francis Galton, an English polymath, introduced the use of the
questionnaire in surveys. Questionnaires usually ask questions that elicit ideas and behaviours,
preferences, traits, attitudes and facts.
QUESTIONNAIRE1. Which brand has a wide range and variety in terms of their products sold?
a) Appleb) Samsung c) Others
2. Which brand do you think has a better design?a) Appleb) Samsung c) Others
3. In the following brands which is more reasonably priced?a) Appleb) Samsung c) Others
4. Which brand has a flexible pricing policy?a) Appleb) Samsung c) Others
5. Which among the given brand has a wider availability?a) Appleb) Samsung c) Others
6. Of these brands, which one has a better global network?a) Appleb) Samsung c) Others
7. Which of these brands adopt intense advertising and promotion activities?
a) Appleb) Samsung c) Others
8. Among these brands, which one is popular (more aware) to all?a) Appleb) Samsung c) Others
RESULT AFTER SURVEYWith graphical representation and
reasoning
Graph 1 – Product Mix
WIDE RANGE AND VARIETY BETTER DESIGN0
10
20
30
40
50
60
70
80
PRODUCT MIX
APPLESAMSUNG
Graph 2 – Price Mix
RESONABLE PRICE FLEXIBLE0%
10%
20%
30%
40%
50%
60%
70%
PRICE MIX
APPLESAMSUNG
Graph 3 – Place Mix
AVAILIBILITY GLOBAL NETWORK0%
10%
20%
30%
40%
50%
60%
70%
80%
PLACE MIX
APPLE SAMSUNG
Graph 4 – Promotion Mix
INTENSE ADVERTISING AND PROMOTION
AWARENESS01020304050607080
PROMOTION MIX
APPLESAMSUNG
SOCIAL RESPONSIBILITY
Social Responsibility of Apple Inc. Apple Inc. creates programs that educate and empower workers, and help preserve the
environment’s precious resources for future generations. Around the globe, Apple employees are united in bringing equality, human rights, and
respect for the environment to the deepest layers of our supply chain. Apple is committed to providing and expanding educational opportunities for workers in our
supply chain. All workers have taken advantage of Supplier Employee Education and Development (SEED) program, which offers free courses ranging from economics to English.
Apple demands that suppliers treat workers fairly and ethically at all times. Apple demonstrates the highest commitment to protecting workers’ rights. This includes abiding by a maximum 60-hour workweek.
Apple insists on safe and healthy facilities for all workers. Worker safety is of paramount importance. Apple has found that well-trained managers and employees are essential to the process. In 2014, participants in the Environment, Health, and Safety (EHS) Academy launched more than 870 projects in their facilities to improve working conditions.
Apple products and processes are of the highest environmental standards. Apple is doing their part to conserve the planet, including half a billion gallons of freshwater, through Clean Water Program and by educating managers on air pollution control and other subjects.
Social Responsibility of Samsung Samsung Engineering seeks to improve conditions around the world through
our social contribution programs. Company-wide, they utilize their strengths and resources to benefit local communities and help children and families in need. Individually, their employees are encouraged to take part in the many volunteer programs offered by the company.
There are various programs : Building libraries Book donation Technical school Donation programs Voluntary services Community outreach program Green awards for youth (environmental program)
AWARDS
Awards – Apple Inc. Apple won eight ‘IF Product Design Awards’ at the CeBIT 2008
show in Hanover, Germany. Apple’s iPhone wins J.D. Power Award. No.1 in Fortune Magazine’s ‘Most Admired Companies” poll Apple iPad wins both the gadget of the year and reader’s
gadget of the year in the 2010 Stuff Gadget Awards. The prestigious Black Pencil D&AD Awards, for the design of
the iMac and the iPhone. iPhone 4 has won the best Best Mobile Device Awards at
Barcelona.
Awards – Apple Inc. Apple 3G iPhone has won 4 categories of competition British
Technology Awards 2008: Innovation of the Year- apple 3G iPhone. The most stylish technology of the year- Apple 3G iPhone The best mobile phone year – apple 3G iPhone. The Gadget- Apple 3G iPhone
Best Music Technology : Apple iTunes iPhone 4 wins best mobile Device at MWC 2011.
AWARDS WON BY APPLE
Awards - Samsung Energy Star Top Pledge Driver recognition(Apr. 2013)
- Ranked 3rd in the 2012-2013 change the world, star with energystar campaign in U.S.A.
Energy Saving Contribution Award (May. 2013)- Samsung China received awards for four consecutive years in China.
Salt Lake City Recycling Recognition(Apr. 2013)- Recognition for supporting recycling activities in U.S.A.
China top green company (Apr. 2013)- Recognition for green management in China
Energy Star Award (Mar. 2013)- Selected as highest energy star award (Partner of the Year - Sustained Excellence)
IDEA Award(May. 2013)- Ranked Gold level for 100% recyclable printer (Origami) in U.S.A.
Awards - Samsung ENERGY STAR Partner of the Year Award - Sustained Excellence
- Highest ENERGY STAR honor for outstanding leadership and commitment to energy efficiency
ENERGY STAR Partner of the Year - Climate Communications- Recognition for excellent work in communicating the importance of preventing climate change through energy efficiency
Call2Recycle Award- Acknowledgment for continued commitment to helping keep batteries out of the waste stream
AWARDS WON BY SAMSUNG
CONCLUSION PRODUCT MIX: Samsung has more range and variety than
Apple because Samsung also deals with home appliances along with smartphones, TV, etc. while Apple deals with only limited variety and range of products. Apple has sleek and compact design which is more stylish when compared to Samsung, hence Apple has a better design.
PRICE MIX: Samsung is sold at a much reasonable price than apple because they use mostly Competitive Methods. Even though the prices are high initially (skimming method), it reduces drastically which makes it reasonable. Samsung has more Flexibility in pricing than Apple because they adopt many pricing policies like skimming and competitive methods.
CONCLUSION PLACE MIX: Samsung is more widely available than apple
because it has adopted intense distribution concept, where their products are made available for all income groups. Apple has more global network than Samsung. Apple uses selective distribution concept. It has a wider reach and acceptance globally. This is purely due to the brand image apple has.
PROMOTION MIX: Samsung does more of advertisement and promotional activities because it has to attract more customers due to its lower brand image than Apple. While in terms of popularity/awareness Apple has an edge over Samsung due to its high brand image. It is most commonly used by famous personalities and the launch of its new products is always a big news.
BIBLIOGRAPHY www.marketwatch.com www.enwikipedia.com www.forbes.com http://www.strategicmanagementinsight.com/ www.google.ae
