Galaxy S5 Marketing Plan

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Distribution Channels:

Samsung faces distribution problems at home in South Korea. A South Korean government entity know as, South Korea's Ministry of the Future executed a ban on the sale of smartphones as a penalty for distributors for spending too much money on their phone subsidies to gain customers. South Korean based Sk Telecom Co and KT Corp had to wait weeks until they were able to sell the Galaxy S5 due to the government ban.

Despite bans in South Korea sales trends are doing well in South Korea causing a higher demand due to the scarcity of the phone. Also, the Galaxy S5 is doing well in America, nearly doubling sales of the IPhone 5S. Conversely the sales for the initial release of the Galaxy S5 in India is a lackluster and the S5 is struggling competing with Lenovo Group Ltd and Huawei Technologies Co, who have the majority of the market share in India.

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Threats and Opportunities Analysis:

Nokia, Motorola, LG, Blackberry, and Apple are just a few of the competitors in the cellular industry. Galaxy S5’s number one threat is the high level of competition. With the numerous competitors available, consumers have many choices when it comes to their mobile device. With all of these choices it makes it difficult for the Galaxy S5 to standout and to get ahead of the other choices available. The other threat that Galaxy S5 faces is that the market is constantly changing. With advances and changes in technology, what the market expects and demands changes. This can be a threat to the Galaxy S5 if it is not up to par. This also means that the Galaxy S5 will only be on the market for a short time before there are advanced versions and updates that can be added. When this happens there will be a shortage of demand for Galaxy S5 and then it will hit the fourth product life cycle stage which is decline.

With every threat there is an opportunity. With the market constantly changing, that also means that the market is growing. This allows for different technologies and versions to come to play. What may satisfy one customer may not satisfy another. This is an opportunity for the Galaxy S5. The Galaxy S5 is the newest version of its line out, which means that it has the newest capabilities and features, giving it an upper hand in the market. Another opportunity is that the Galaxy S5 is as close to water proof as technology currently allows. The Galaxy S5 can stay at a depth of 3ft for an extended period of time. Not many other technologies have this capability giving it an advantage over its competitors. Its also great for those in the market who are seeking a more sturdy device.

SWOT Diagram:

Strengths

Weaknesses

- Established Market

- Quality Products

- Large Budget

- Water Resistant

- Made for everyone

- Heavy

- Malfunctioning Applications

- Battery Life

- Expensive

Opportunities

Threats

- Growing Market

- Water Proof

- Technology Growing

- High Competition (Apple)

- Constantly Changing Market

Objectives and issues:

Samsung has set high but attainable objectives for the S5 during the first six months of market entry.

First 3-Month Objectives:

During the first three months on the market, Samsung plans for the S5 to break even with sales by the end of the three month period. At the price of $599.99 per unit, this equates to a sales goal of approximately 25 million units. Samsung predicts to sell 11 million units within the first month, one million more than the previous version S4.

First 6-Month Objectives

During the first six months on the market, Samsung plans to release a new version of the S5 that will allow consumers to select the phone in various colors. This will be called the S5 Color Series. Samsung’s goal for this is to double the sales from the first three months with this option, equating to approximately 50 million units.

Issues

In launching this new product, the main issue is the competition found in the smart-phone market. Since it is such a highly competitive market, there is a high chance that the S5 will not stick out with technology or will be undercut by cheaper prices. Samsung hopes that previous users will remain loyal to their brand. They also plan to appeal to different markets by promoting the high-quality everyday used features of the S5, such as the camera, and also promoting the highly technological options available for the technologically advanced consumers.

Action programs:

The program set in place for marketing the Galaxy S5 is to create commercials and campaigns all targeting the feature of easy mode. Easy mode, also known as beginner’s mode, has three screens. On these three screens there are plain and large apps set. These apps are pre-chosen and are typically the frequently used ones such as calendar, clock and email. This is unlike original mode where there are several screens, little icons, and lots of apps. Easy mode is created for those who prefer simpler settings.

Our goal is to target this market. We will create ads and commercials with the concept of ‘Pick your mode’. This will hit not only the those needing easy mode, but also those who are capable of using original mode. In the advertisement shown there will be two users one with easy mode one with original, both making use of the Galaxy S5. The goal of this will be to show how everyone can use this. To reach the whole market there will also be advertisements in the newspaper, posters on bus stops, and the radio. Each of these advertisement areas will be handled by our employees with the execution handled by our top marketing team.

We will have the majority of ads set in place