This document provides information about Samsung Galaxy J7 smartphone prepared by Charul Arora. It discusses India's consumer durable market growth, Samsung's market share and competitors in India. A SWOT analysis of Samsung J7 is given highlighting its strengths of powerful features and wider screen while weaknesses include limited updates and competition from cheaper smartphones. The marketing mix, segmentation, targeting, positioning and product life cycle of Samsung J7 are also outlined.
2. SECTOR INFORMATION
• India’s consumer durables market is broadly segregated into urban
and rural markets, and is attracting marketers from across the world.
• Per capita GDP of India is expected to reach US$ 3,273.85 in 2023
from US$ 1,983 in 2012.
• The maximum consumer spending is likely to occur in food, housing,
consumer durables, and transport and communication sectors.
• The growing purchasing power and rising influence of the social
media have enabled Indian consumers to splurge on good things.
Import of electronic goods reached US$ 53 billion in FY18.
3. MARKET SIZE
31.13%
60.13%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
1
FMCD Market in India (US 53 $ BILLION)
MARKET SIZE ELECTRONICS HARDWARE PRODUCTION IN INDIA Linear (MARKET SIZE)
• Indian Appliance and Consumer Electronics (ACE) market reached
US$ 31.48 billion in 2017. India is one of the largest growing
electronics market in the world. Indian electronics market is expected
to grow at 41 per cent CAGR between 2017-20 to reach US$ 400
billion.
4. PORTER’S 5 FORCES MODEL
• Capital requirement is very high
• Barriers like patents make it difficult for new entrants
• Customers loyalty towards existing brand
• Advanced and innovative technologies make it difficult for new competitors to enter in the market
THREAT OF NEW ENTRANTS
(LOW)
• There are many similar products available in the market
• Some phones are launched with better functions like better camera, operating system, RAM, ROM etc.
can affect the sales of your product
• Regarding operating system, major threat is from substitutes like iphone, and other Android devices.
THREAT OF SUBSTITUTES
• There are many competitors in the market giving great competition to the rivals
• Operating Systems are also a big rivals in the market like android, iOS, blackberry OS.
• There is a price competition at low-end & Technology competition at the high-end
• Customers are loyal towards brands
INDUSTRY RIVALRY
• There are many choices for customer that is why the bargaining power of customer is rising
• Low switching cost makes it easy for customers to change the product
• Buyers can delay in buying the new models until the prices falls down that is favorable to them
BARGAINING POWER OF
BUYERS (HIGH)
• There are large number of suppliers so the companies may switch the suppliers when it wants
• Many companies hold a very strong position when bargaining to the suppliers
• There is intense competition among the suppliers so they reduce prices to the manufacture
BARGAINING POWER OF
SUPPLIERS (MODERATE)
5. SWOT ANALYSIS
• Largest manufacture of television, LCD (Liquid Crystal Display),
smartphones, mobile phones and other consumer electronics in the world.
• Holds 22% of the world market share in smartphone market.
Best Research & Development capabilities
Launched Samsung Pay application
Great Brand value in the Global Market
Not able to match the marketing strategies of Apple
China smartphones companies are also a competitors of Samsung
Samsung is highly dependent on the sales of consumer electronics.
More reasonable price products should be launched for the customers like M series.
Increased demand for tablet and smartphone-based software such as Samsung Pay
All the online channels should be used for the distribution of the product
Chinese smartphone manufacturers could emerge as competitors for Samsung.
Apple’s reputation for quality, reliability and sophistication is growing day by day.
Increasing purchasing power of customers in The USA that is attracting customers towards Apple iPhone
7. Competitors Analysis
Company News
• Samsung India to hire over 1,200 engineering graduates for R&D.
• Global Smartphone Market Fell 0.4 Percent in Q3 Due to Weak Demand.
• Samsung Galaxy Fold finally goes on sale – but only in South Korea
SMARTPHONE MARKET IN 2019
COMPANY MARKET %
XIAOMI 28%
SAMSUNG 25%
VIVO 11%
OPPO 8%
REALME 9%
OTHERS 19%
8. PRODUCT INFORMATION
SWOT ANALYSIS OF SAMSUNG J7
• Launched on 2016, September
• The letter J stands for “Joy”
• Powerful features
• Wider screen
• Android operating
system
•
• Different prices-
different variants
• Bright images at
low light
conditions
• NO Super AMOLED
• J7 had limited
market share in the
India’s market.
• No regular updates.
• J7 focused on mass
market instead of
niche market
• Focus on youth
• Wide variety of variants of
J7
• J7 is accepted by mass
customers
• Strong customer demand
for innovative products by
using the latest technology
•No fingerprint sensor
•Huge competition by
cheap and low cost
smartphone like Xiaomi,
Vivo, One Plus, etc.
•Challenges on design
and build quality by high
end smartphone
manufacturers
9. MARKETING MIX
• Super Amoled HD Display with
5.5inches LCD screen
• 1.5gb RAM, 16gb ROM, Expandable
memory up to 256gb
• 13 mega pixel rear camera with flash,
5 mega pixel front camera
• 3000mAh lithium-ion battery
capacity & Operating system android
5.1
• Connectivity- Bluetooth, 4G/LTE, USB,
GPS & Features Radio, media player,
video player etc.
• 1year warranty & 8 models and
PRICE
• Samsung is a market leader in smart phones
acquiring second highest market share after
Xiaomi. It uses two pricing schemes which
are:
• Skimming Price – Samsung uses skimming
pricing policy. For instance, we take example
of Samsung J7 when Samsung launched it.
• Competitive Price – This pricing strategy is
used by Samsung as a marketing strategy.
Samsung have to maintain the competitive
price of its product to match its competitors.
Because Xiaomi have surpassed Samsung in
Indian market with its cheap prices.
PRODUCT
10. CONT…
• Samsung sells its product directly to the
retailers and service dealers, due to this
strategy, only service dealers are
responsible for the corporate sales.
• Retailers those are dealing in technology
generally have to include Samsung in
their offerings, because of its global brand
value. The distribution is the strength for
Samsung.
• Samsung also distributes its products
using a single distribution company in a
particular location that further distributes
the products to other locations.
PROMOTION
• Samsung believes that advertising the best
form of promotion to engage potential
consumers and position the brand.
• Samsung promotes new products using
newspapers and digital media & At the big
placard, hoarding and posters are put up on
highways and streets.
• To take the advantage of the huge number of
followers of celebrities, the brand has invited
many celebrities to be the brand ambassadors
and promote the product.
• Samsung also uses different promotional
tactics to make customers buy the product as
sponsoring events & offers huge discounts
during national festivals.
PLACE
11. SEGMENTATION
• Geographic – Samsung
J7 segment basically
Targets the urban and
semi-urban areas.
• Demographic –
Samsung J7 is a
smartphone for youth,
age of 16-30, for
business person,
professionals, etc. This
phone also targets
middle class customers
with low purchasing
power because of its
reasonable pricing.
• Psychographic – Choice
based on their lifestyle.
It also provides many
variants that attracts all
type of customers.
POSITIONING
The strategies adopted by
Samsung J7 to position itself in
the smartphone market are as
follows:
• Samsung J7 focuses more on
the real margin which comes
from mid-to-high-end
segments
• Samsung Concept Store to sells
its product by giving details of
the product to the customers
• Creating market & category
creation in small towns
• Wider service centers network
• Branded itself as a symbol for
quality.
TARGETING
Samsung J7 have the following
target customers:
• Trendy and young people.
• Professionals and corporates.
• Large business enterprise.
• Organizations such as:
services to public safety, the
government, and both utility
and manufacturing
enterprises.
• Institutional sales for colleges
and universities.
• Targeting is not only focused
on numbers but also focuses
on acquiring and retaining
customers.
Segmentation, Targeting &
Positioning
12. PRODUCT LIFE
CYCLE
• Eventually, the market
for a product will start
to shrink, and this is
what is known as the
decline stage
• SAMSUNG GALAXY J7 is
in the Decline Stage.
14. JD’S & JOB SPECIFICATION
Marketing
Finance
Human Resource
SELECTION PROCESS
Online Application: Applicant need to fill online form first before
Pre-selection: Simple chat with applicant who applied for the job
Interview: Interview happened offline or through Skype
Job Offer: After selection they give the offer letter to selected
candidates
16. Samsung has an innovation-centered organizational culture. This
corporate culture is part of an organizational design that emphasizes
employees’ knowledge, skills, and abilities for innovating the company’s
technology products, such as smartphones and laptops. This
organizational culture helps in:
• Development of opportunities for all employees
• Passion for excellence
• Constant change
• Ethical foundation for integrity
• Emphasis on prosperity for all
ORGANIZATION CULTURE
17. • Current Ratio = Current Assets / Current Liabilities
= 32524 / 17061 = 1.9
• Gross Profit Margin = Gross Profit / Net Sales X 100
= 1976 / 58863 X 100 = 3.35%
• Net Profit Margin = Net Profit After Tax / Net Sales X 100
= 3712 / 58863 X 100 = 6.30%
• Operating Profit = Operating Profit / Net Sales X 100
= 7031 / 58863 X 100 = 11.94%
• Debt Equity Ratio = Debt / Equity
= 4405 / 17862 = 0.2466
FINANCIAL ANALYSIS