Impact of market segmentation on the pricing strategy of the Samsung and Apple
Price plays an important role in the success of any company. The segmentation strategy by Samsung has put an augmented focus on the different characteristic of the customers in a particular region. The main targeted group of Samsung is the middle class people, business professionals and the teenagers. Moreover, product development is one of the most important growth strategies which is followed by Samsung. As the main customers segments of Samsung are the middle aged customers, so the company has set the price of Samsung galaxy S8 in such a way so that the consumers can purchase it and they will also get all the facilities at a cheaper cost compared to iphone. The Galaxy S8 of Samsung is especially made for the IT departments and the businessmen and they can do all their work and thus make their life easier. Samsung galaxy S8 has tried to blend the consumer and the business feature in one device (Dissanayake & Amarasuriya, 2015). On the other hand, Apple’s iphone 8 is targeting the higher end of the market. Apple is targeting the premium customer segments and the price of iphone8 is higher compared to Samsung S8. Apple’s strategy is that its old phones are also sold at a much higher price. This is not true in case of Samsung and other brands. This was an important reason for the high pricing strategy of Apple. Moreover, iphone has two growth opportunities i.e. the price sensitive customers and the unsubsidized market and this has helped the company to set the price accordingly (Truong et al., 2017). Thus, it can be said that market segmentation lays an important impact on the pricing strategy of the company.
Branding strategy followed by Samsung and Apple
Apple Inc. has used the Apple brand to compete in the highly competitive market. Apple has expanded its products range and services. iPhone has used the augmented reality feature and this has helped to revolutionize the customer experience. This technology used in iPhone 8 has pretended to present objects like real situations. Moreover, the augmented reality is also presented by iPhone in different ways and it depends on the need of the people (Blenko, et al., 2016). Although iPhone has invested in augmented reality and it is attracting the customers but the process is costly and time consuming. The consumers are also excited about augmented reality and they were eagerly waiting to go above and beyond and experience things which are not provided in any other phone. The use of augmented reality of Apple iPhone 8 has also changed the way in which the marketers interact with the customers. On the other hand, Samsung is trying to establish itself as the iconic brand since the past two years. The new series of advertisement of Samsung are better than the one-off campaign. Samsung has changed the brand marketing strategy and thus has impacted every aspect of the company. Samsung has also published various advertisements in the journals and newspaper after the case of Samsung Note 7. This has increased the sales and profitability of the company. Moreover, it has also increased the market share of Samsung and it has won the heart of the customers and thus created a strong customer base for the company (Babayi & Rahmani, 2015).
Differences between the branding strategy of Samsung and Apple
Samsung has suffered severe effects of the Galaxy Note 7 and it has tried hard to capture the market after the introduction of Galaxy S8. Samsung and Apple are powerful brands. Samsung has made major effort to compete with iPhone. Samsung has also published different headlines in the newspaper and the marketing cost incurred by Samsung was higher than Apple. As Apple has targeted only the premium customers, it has published advertisements which would attract the affluent class (Teimouri et al., 2016). Samsung has presented galaxy S8 as a cool brand and this has trickled down to the youngsters. It has tried to resonate the young people in the same way which iPhone has done by making people realize that the brand is good for all. Alhough the brand do not have a strong strategy of connecting with the youth, but it should pay more attention to the young customers who are trying to explore new device in a reasonable price. Moreover, the display of Galaxy S8 is comparatively larger than iPhone 8 but the edge-to-edge design is better in case of Apple. Moreover, Samsung is dominating the US market and Samsung is trying to capture the global market (Chen & Ann, 2016). There is stark difference between the two brands because Apple is one of the competent brad and it is accomplished in its endeavor. Whereas Samsung is trying to prove its relevance in the tech culture presently. Thus, it can be said that the company must try tio improve its marketing and branding strategy and expand more globally.
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