4 P’s of Samsung smartphone: What made it possible for Samsung to beat Apple in smartphone sales? Almost three years before, during a press conference a question has been asked to Aamir Khan “If you are a number one actor in Bollywood, then why don’t you endorse number one brand in mobiles” Aamir replied “Samsung is not a number one brand at this stage but it will become soon”.
Everyone laughed to the answer and probably they were right.Who would have been thought that in the crowd of many superior players like Apple, Nokia, Blackberry, Sony etc, Samsung would become a market leader in just the period of four years but it did and quite silently. As per the third quarter results of 2011, Samsung has overtaken the Apple as a world smartphone leader and become the biggest mobile phone maker by revenue. How Samsung managed to do it in a very short period of time.
Let’s try to figure out with marketing mix (4P’s of marketing). Product:Before comparing the smartphones of Apple and Samsung, we will see what smartphone is. It is considered to be the combination of traditional PDA and cellular phone. Apple launched iPhone in 2007 with a breakthrough innovation and created the entire new category for mobile phones.
It acquired the large shares of market with a very short time. Samsung entered into the race by launching first smartphone in 2009. While Apple had a make approach (it had its own OS, APP store), Samsung adopted a collaborative approach.It focused on developing software expertise and made a strategic partnership with Microsoft, google. It also launched it own OS – Bada and introduced the smartphone series - Ominia based on windows 7, wave series based on its Bada and Galaxy series based on Android. It continuously focused on innovation and brought many features like verti keypad, amoled screen.
Soon it has surpassed all its competitors in filling the number of patents. Apple focused on improving its single product iPhone and brought limited versions 3, 3GS, 4, 4S.Price: Price is the major differentiator for Samsung smartphone. While Apple is more focusing on Innovation, Samsung mixed the cost leadership with innovation as their competitive strategy. At the beginning of 2007, Smartphone is a luxurious phone afforded by upper class segment in the market but as time passed more and more people desired to have smartphone. As Nokia was busy to position them in upper segment, Samsung filled that gap perfectly.
It came up with Galaxy series started from 7000 rs to 35000rs.It helped them to penetrate the evolving market of smartphone. Other players could not deliver any cutting edge smartphones with same price range to compete with Galaxy series. Place: Samsung handled its supply chain effectively and opened a number of its own outlets and offer higher margin to other retailers as channel is the most effective way to reach to customer.
It launched smartphone GSM and CDMA both which helped to reach to customer across the globe. Promotion: Samsung used its marketing and promotional activities very cleverly.As a electronic manufacturer to position themselves as mobile brand, it was a immense challenge for them. Many othe companies have failed in doing so like Videocon. It established successfully itself as a technological leader in the market with its “what next” campaign.
It ran attractive and appropriate advertise campaign for its Corby and wave smartphones to attack the young crowd. Galaxy series worked wonders for the brand. Overall, affordable smartphones with an appealing set of features is a key for Samsung to beat Apple in smartphone sales.
