Hassan Masood Sec J 11U0182

Executive summary
Samsung is preparing to launch a new multitasking, dual core and dual sim smart phone targeting youngsters. The product will offer a complete range of new user interface along with an additional warranty of a year which will add to its warranty. The phone is intended to meet the higher demand of over target segment who demand a bundle of entertainment package in a portable device. The primary objective is to gain sales of around 300,000 units in Pakistan. The revenue to be achieved should be accounted for $35 million and minimizing the loss up to $5 million.

Current Market Trends

Worldwide the demand for all phones has reached about 1.5 billion units in 2011. The latest trends have indicated that there has been a wild shift from simpler phones to smart phones and everyone trading in the market is trying to target as much customers as he can. In Pakistan the trading brand is Nokia which holds about 50% of the market share and following Nokia, Samsung has a market share of about 18% with 14% share of iPhone, 10% of HTC and 8% of Sony Ericsson. To gain a market share in this fast changing environment is producing innovative and reliable products in the market to be one step ahead.

Market Description
Samsung S3 focuses on customers who want easy to handle, reliable and multitasking. For this very reason it will focus on businessman, students and even camera lovers. There is a wide range of operating systems from which users can choose i.e. Android, iOS, Windows, Symbian, Bada and Java. Samsung S4 will be using S4 chipset because the touch sensitive technology is one of the best in it and it contains a bundle of application which will never lose consumer interest and besides that, it also gives you Drop Box facility to store your data online.

Sample of Competitive Product and Pricing

Competitor Model Features Price(Rupees)

Nokia

808 Pure-view

42 megapixel Camera, HD Video 45,000 Recording, Xenon Flash, HDMI Support, Flash Player, DivX Xvid support Siri,A9 chipset, IOS 6, Slimmer, HD 100,000 Camera,4.00 inch screen, Panorama view, Google Maps,8 M.P camera HD Screen Resolution, On the go u.s.b 50,000 support, Beats Audio, Android, HTC Sense,8 M.P camera Cyber Shot, Water Proof, Dust 55,000 Proof,4.7 inch HD display, Access to Microsoft Files,13 Megapixel Camera, Sony Bravia Engine

Apple

I Phone 5

HTC

One X

Sony

Xperia T

Product Review
Samsung S3 will be offering a standard feature with Touch Wiz operating system. 1. 12 megapixel camera with Carl Zeiss lens + simultaneous HD video recording with photos snap. 2. S-Beam easy to share file which can share 2GB files to phones in less than a minute. 3. Play all sorts of format i.e. DivX, Xvid and MP4. 4. Built in memory of 64GB with a further 64GB extendable option. 5. 4.9 touch screen giving crisp videos. 6. Up to 48 hours of music playback time. 7. Built in theft protection. 8. HDMI port to enjoy videos on HD T.V 9. SNS, NFC and e-Mail support.

Competitor Review
Over time technology to such greater height that is has become cheaper which has edge over some of well-known companies like Nokia, HTC, Sony and Apple.

Apple:Apple has always manufactured stylish and attractive phones. Apples product range is lower as compared to others to others but still they have captured a large amount of market share. The recent launch of iPhone 5 made sales record and all because of its shimmer body. Apple also has an edge in terms of security and applications.

HTC:HTC over a period of time has extended the research and successively emerged in the market. The main edge that HTC has in terms of sales is Beats Studio hands free which has really helped HTC to create the uniqueness in the market and the music lovers go for HTC due to its specialized hands free. One the other HTC Sense is also center of attraction for many and its smooth body adds to its beauty.

Nokia:Nokia has always played a safe game and offers a wide range of products to meet the demand of every individual. Recently Nokia launched named Nokia pure view 808 with 42 megapixel camera and gorilla glass touch screen. It created hype in the market. Nokia has stepped ahead in manufacturing Windows mobiles with some of the most catching features.

Sony:Sony which was previously known as Sony Ericsson has emerged as a great threat for the competitors. The Xperia server has received a very positive response within a short period of time and its new series of Xperia is quite unmatchable. Sony cell phones are water proof, shock proof, dust resistant and built in application of walkman. The camera is equipped with Cyber-Shot lens, producing finest results.

Channels and Logistic Review

Samsung product will be distributed in Pakistan among one of the top retailers. The important channels will include the following 1. Mobile Zone ,Teletech ,United Mobile ,Advance telecom (These retailers will provide product to the final consumers) 2. Shopping Malls-Malls like Hyper Star, Metro; Panda etc. will carry products in their gadgets section and will display it on one of the most eye catching shelves. 3. Online Retailers-E-Bay and Amazan.com will provide the product to potential consumers and will display Samsung Galaxy S3 on its homepage 4. Social Networking Sites-The sites like Facebook and Twitter will be used to make sure that maximum audience reach the product by creating a fan page and providing a direct link to online retailing stores 5. U-fone will also be sponsoring our product and will be providing customer with this device and will also take into account the advertisement campaign Initially the main focus will be on Pakistan because there is a place to expand by bringing innovation in the product and if the product is successful than it will be made available for India, Dubai, Canada, Malaysia and Singapore.

Strengths, Weaknesses, Opportunities and Threat Analysis (SWOT Analysis)

Samsungs one of the biggest strength is its operating system as well as its heave processor but on the other hand it does gave a major weakness in the quality of the materials used. The opportunity that Samsung have is the growing market of cell phones and one of major threats are its competitors and fast changing technology.

Strengths
Some of strengths of Samsung are as follows 1. 2. 3. 4. 5. Diversified business portfolio Covering major proportion of segments as compare to Apple, Sony and Htc Leading smart phone products in the market Better Research and Development Department Global Marketing

Weaknesses
Samsung was successful in bringing innovation to the product but it still lacked behind in some of the fields which includes 1. 2. 3. 4. Lower quality of materials used Fluctuations in profit Lower demand pattern in some of the countries Lack of focus on lower class products

Opportunities
Samsung has the ability to explore the following areas and take something out from them 1. Growing market 2. Making distinctive product can help Samsung to take over the market share of Nokia. 3. Need to launch new products like that of Samsung Galaxy S2

Threats
Samsung face some of the threats regarding its new product launch of Samsung Galaxy S3 1. Samsung has a long way to go to become a market leader with an immense competition being faced from HTC, Nokia, Sony and Apple 2. With a less range of products, Samsung lacks behind its competitors 3. Increasing raw materials prices 4. Government Regulations

Objectives and Issues

We have already set objectives in order to work in directional and more meaningful way.The first and second year objectives are as follows 1. During the initial launch of the Samsung Galaxy S3.we are aiming to sell 300,000 units by minimizing cost as well as losses 2. During the second year Samsung Galaxy S3 will by Galaxy Note Astound for which a combined strategy will be followed up. The main focus will be on the sales of the 2 products and dominating as much market as we can.

Issues
In relation to the launch of the Samsung Galaxy S3 one of the biggest issues that the product has to face is the quality of the materials used in the products. The casing is easily damaged and there are no additional cases available. We will make sure that the quality meets the required standards and additional covers are available for the wider segment.

Marketing Strategy
As Samsung has the second market share in the smartphone market and there are many competitors available so Samsung will be undertaking product differentiation strategy. As Samsung Galaxy S3 is a high end product so it will mainly focus on upper middle class and elite class students, who are studying in colleges in universities because Samsung has it all which will urge students as a must have product. Samsung S4 comes with music player, large amount of memory, HD games, 12 megapixel camera and Microsoft Office to help students fulfill their daily needs. On the other hand it provides a bunch of features for business professionals too. It has an instant e-mail sender as well as 2.00 GHz processor to run large files and a build in projector to present your work anytime anywhere and with it comes a HD front facing camera to stay connected with your colleagues or family members during long trips at any part of the world.

Positioning:As we have already mention that we will be using product differentiation so we will position Samsung as the most delightful, ultra powerful and status symbol product. The product will be focusing on two segments which include students and business professionals. A promo video will be made which will summarize all the unique features a device may hold and its main edge over its competitors will be focused most in that.

Product Strategy:Samsung Galaxy S3 will provide all the features that we mentioned before, the cell phone will be sold with a one year extended warranty and a completely new unit of cell phone if any damage occur within the first week because Samsung wants to create a brand loyalty by taking into account customer values .Creating a brand new perception of smartphone that the materials that are used are reliable and durable will be the main focus of Samsung Galaxy S3 smartphone.

Pricing Strategy:Samsung Galaxy S3 will be priced at 55,000 Rupees (wholesale) and 60,000(retailer).The price charged is quite higher than that of its competitors i.e. Nokia, HTC and Sony because of more durable materials and latest technology possible. Our main focus groups are elite and middle upper class so the price may not be that big issue. But, after the launch of the Galaxy Note Astound, the price will be cut-off in order to attract a wider range of customers.

Distribution Strategy:Our aim distribution strategy includes covering as many places possible to reach our product to final consumers. For that we can target the distribution channels of Cant, DHA, Liberty and Malls like Mall of Lahore, Hyper Star and Metro etc. We will choose Mobile Zone, Advance Mobile and united mobiles as our major distributors. The product will also be made available in Samsung Official stores as well as well reputed computer outlets. Pamphlets will be printed in colorful versions to give a detailed description about the product and sample phones will also be made available to these outlets so that potential buyers can have a hand on experience too.

Marketing Communication Strategy:Samsung already has its brand awareness and the advertisement that took place in the launching of Samsung Galaxy S2 still have the blurry image in peoples mind. We have set a great deal of advertisement budget for our latest gadget because no matter how good your product may be but if its not advertised in a proper way than it can be a massive failure. We will be using different sports channels like ESPN and TEN SPORTS to advertise our product because 20 20 leagues has just started and we can target great amount of students. On the other hand we will also be using top line magazines as well as newspaper to advertise our product and let most of business professionals informed of its arrival. The social networking site like Facebook will also be an integral part in our promotion strategy.

Marketing Research:The research and development department of Samsung is considered as one of the best as compare to its competitors and it will give us an edge over them. We will make sure that we get the maximum of the response of the new product that we are planning to launch and if there are any bugs or faults that need to be fixed or an addition required by the consumers than we will fix them through updates and this information will also help us to improve our upcoming Samsung product (Samsung Galaxy Astound).

Marketing Organization:Samsung marketing officer, Zahid Akhtar, holds the overall responsibility for all the Marketing Activities.

Mr Usman is the Sales Manager Mr Hamza is the Advertisement Manager Mr Abrar is the Promotion Manager Mr Ali holds the Regional Sales Mr Bilal is the Advertising Analyst Mr Ahmad is the Promotion Analyst Mr Sajjad holds the authority of Regional Sales

Action programs:Samsung Galaxy S4 will be launched in February. The following are the summaries of the action programs we will use during the first six months of next year to achieve stated objectives. January-Sales Promotion will take into place and hype will be created for the product. February-Product will be launched globally and Pakistan will be the one to receive it first and different packages will be given to the consumers. March- Jelly Bean update will be launched for this Android Monster which will make him unique in its own kind. April-Free applications package will be launched for Samsung and users can enjoy applications free of cost. May-New colors will also be launched for this device which include Garnet Brown, Black, Grey, Pink June-Samsung will launch its potable speakers and an additional back covers to make your smartphone look more unique and stylish

Budgets:The first year sales revenue for Samsung Galaxy S3 will be accounted for 35 Million dollars with an average whole sale price of 60,000 per unit and a variable cost of 40,000 for 300,000 we anticipate the loss of Samsung of up to $5 million.

Controls:We will be planning a high end control measure in order to minimize the problem of casing been damaged that tends to appear in our previous models. We will also be examining the cell phones in different conditions so that we may know that which area needs a chances of improvements.