The once giant Samsung has been having a tough time recently and with record losses quarter after quarter the management seems to have changed it strategy for India which I would detail in this post
Samsung’s current stratergy from what I can infer is to drastically reduce the prices of old smartphones and make them look attractive to tech-savvy and budget conscious buyers. For example the S3 Neo after regular price cuts is now a better VFM alternative compared to Moto G2 from a hardware perspective but Samsung never spends a lot on marketing these phones like S3 Neo to the general public. That’s because the tech savvy/budget sensitive crowd really does not require marketing and can very well figure out the worth of a smartphone on their own.
The other stratergy Samsung is following is to extensively advertise their high margin smartphones such as the Galaxy A series/Galaxy Note Edge/Galaxy Alpha. These smartphones come with metal(except Note Edge(maybe)). Also these smartphone have all the bells and whistles and are advertised extensively at the non tech savvy users who really don’t care much about Price to specs ratio.
So Samsung is basically having a dual stratergy.
Samsung’s current stratergy from what I can infer is to drastically reduce the prices of old smartphones and make them look attractive to tech-savvy and budget conscious buyers. For example the S3 Neo after regular price cuts is now a better VFM alternative compared to Moto G2 from a hardware perspective but Samsung never spends a lot on marketing these phones like S3 Neo to the general public. That’s because the tech savvy/budget sensitive crowd really does not require marketing and can very well figure out the worth of a smartphone on their own.
The other stratergy Samsung is following is to extensively advertise their high margin smartphones such as the Galaxy A series/Galaxy Note Edge/Galaxy Alpha. These smartphones come with metal(except Note Edge(maybe)). Also these smartphone have all the bells and whistles and are advertised extensively at the non tech savvy users who really don’t care much about Price to specs ratio.
So Samsung is basically having a dual stratergy.
1. First one is to cut prices of old models and make them appealing to tech savvy/budget conscious customers and avoid losing market share to companies like Motorola.
2. Second stratergy is to introduce new models like Alpha/A series etc with novelties like metal body,fingerprint scanner(Alpha), Ultra power saving mode etc etc and sell them at a high margin to non tech savvy users along with extensive marketing.
Both the above mentioned stratergies should in theory help Samsung maintain market share while at the same time remain profitable but it remains to be seen if it actually works out.
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