Apple VS Samsung

APPLE
INTRODUCTION AND HISTORY

► Name: Apple Incorporation

► Founder: Steve Jobs, Steve Wozniak, Ronald
Wayne
► Founded: 1 April, 1976
► Headquarters: Cupertino, California US
► Employees: 116,000 (2017)
► Current CEO: Tim Cook
► Market Share: 20.3%
► Market Share in Pakistan: 14.7 (2017)
► Launched iphone:29,June 2007

► No.1 Brand by Interbrand

► Services Worldwide

► Logo: Byte into an Apple

► Slogan: Think Different

SAMSUNG
INTRODUCTION AND HISTORY

► Name: Samsung Electronics Co.Ltd

► Founder: Lee Byung Chul
► Founded: 1 March, 1938
► Headquarters: Suwon South korea
► Employees: 308,745 (2016)
► Current CEO: Kwon Oh Hyun
► Market Share: 18.5%
► Market Share in Pakistan: 26.1% (2017)
► Launched Android: 27 April, 2009

► No.6 Brand by Interbrand

► Services Worldwide

► Logo: Samsung

► Slogan: Imagine, and “Think bigger”

 4Ps of Iphone
 Product differentiation from competitors
 Innovative product  Price Skimming is used PRICE
 LTE wireless technology
 High quality camera PRODUCT  Price is reduced for the previous products
 Own IOS, no third party apps
 Finger print sensor for 1st time  Apple reduce price with time and never goes on sale
 Deals also in services
 Home screen button for android
TARGET
MARKET
PLACE
 Advertisement through online ads, TV ads and Buzz  Selective distribution
marketing  Stores and outlets are at Highpoint shopping centers
 Personal promotion by the CEO and the Top level  Karachi (Apple Istore), Lahore (Icity), Islamabad (UNI
managers store)
 Iphone packaging is also effective enough to attract  Online available at Amazon and Ebay
consumers  Apple stores and certified retailers are available at
upmarket retailers
PROMOTION
Segmentation
(Demographic and Psychographic)

 IT conscious and technology lovers

 Professionals and Teenagers of both genders
 Highly life style conscious
 High income earners
Positioning

 Strong brand image

 Exceptional User Interface of apple
 Steve Jobs as CEO
 Focuses on the emotions of consumers by apple brand
architecture
 SWOT analysis of Iphone
 Most valuable brand  No promotion to target lower class of society
 No 1 Brand (inter brand)  Very few service centers
 Apple sold 340,000 iphones per day in 2012  Poor after sales service
 Apple is world’s largest IT company by revenue and  High price
total assets  Incompatibility with different OS
 2nd Largest Mobile Manufacturer (www.factslides.com)  Defects of new products
 Strong marketing and advertising teams  Patent infringements
 Strong financial performance Strengths Weakness

 Strong growth of mobile advertising market  Rapid technological change

 Increasing demand for cloud based services  Android OS growth
 High demand  Competitors moves in online music market
 Growth of tablet and smartphone markets  Rising pay levels
 Obtaining patents through acquisitions  Price pressure from Samsung over key
components
Opportunities Threats
SAMSUNG
 4Ps of Samsung
 Innovative products  Competitive pricing and also uses penetrative pricing
 High tech producer such as micro-chips and
semiconductors  Price is reduced for more sales
 Also provides micro-processors for Apple
 Offers diverse products or wide range of products  Samsung offers many of its products for sale

PRODUCT PRICE
TARGET
MARKET
 Highly effective advertising and brand sponsorships  Direct selling to retailers and service dealers

 Sales promotion  Intensive distribution

 Advertisement on TV and online ads  Exclusive Samsung showrooms

 Sports sponsorships  Modern retailers and distributors

PROMOTION PLACE
Samsung
segmentation
Strategy
 Geographic
 Demographic
Target

 Also main target is young energetic consumers

 Also offers product for the benefits of ordinary
consumers
 Countries having low capital income
Positioning

 Samsung concept stores

 Wide case network
 Style and technology
 Tag lines used by Samsung (The next big thing, Six Appeal)
 SWOT analysis of Samsung
 Strong marketing and advertisement team  Too low profit margin
 Leading innovator in mobile device technology  Main competitors are also largest buyers
 Strong financial performance  Lack its own OS and software
 Innovation and design  Focus on too many product
 Focus on environment Strengths  Patent infringement Weakness
 Low production costs
 Largest share in mobile phones and 2nd place in
smartphones sales

 Growing mobile advertising industry  Rapid technological change

 Growing demand for quality application processors  Declining margins on hardware production
 Growth of tablets market  Breached patents
 Obtaining patents through acquisitions  Price wars
 Saturated smartphone market in developed
countries
Opportunities Threats
 Recommendations
Apple
 Company can develop strong
relation with the consumers by
effective after sales service
 Can attract new consumers of low
income
Samsung
 Can increase sales more by new
innovative products
 More resources on R&D for
future products
 Conclusion
Apple Samsung

 Best innovative products  Best option for the low capital

 Has to consider the low income earners
earners  Leader of electronics and
should minimize diversification