Samsung Galaxy Note Series - Phablet

SINGAPORE POLYTECHNIC
SP BUSINESS SCHOOL

MARKETING MANAGEMENT
BA 5124

AY 2014/15
SEMESTER 1

ASSIGNMENT REPORT

SUBMITTED BY:

Name: Catherine Ann Pan

Adm. No: P7183948

Name of Company: Samsung Galaxy Note Series - Phablet

Date: August 25, 2014

Table of Contents

Introduction................................................................................................................................................................................1
The Marketing Mix – Product ................................................................................................................................................3
Product Range and Classification................................................................................................................................3
Product Target Market...................................................................................................................................................4
Product Components ...........................................................................................................................................................6
Core Benefits ..................................................................................................................................................................6
Psychological Benefits ..................................................................................................................................................9
Actual Product......................................................................................................................................................................9
Samsung Galaxy Note ...................................................................................................................................................9
Samsung Galaxy Note II ............................................................................................................................................ 10
Samsung Galaxy Note III .......................................................................................................................................... 11
Specifications Comparison ........................................................................................................................................ 12
............................................................................................................................................................................................. 14
Augmented Product.......................................................................................................................................................... 14
Branding............................................................................................................................................................................. 15
Samsung Galaxy Note Series History...................................................................................................................... 15
Does the brand name possess desirable qualities of a good brand name?......................................................... 17
Suggest changes in brand name ................................................................................................................................ 19
Product differentiation from competitors ..................................................................................................................... 19
The Marketing Mix – Promotion ........................................................................................................................................ 26
Advertising ........................................................................................................................................................................ 26
Sales Promotion ................................................................................................................................................................ 30
Effectiveness of Sales Promotion .................................................................................................................................. 35
Other Promotional tools used: ........................................................................................................................................ 35
The Marketing Mix – Price .................................................................................................................................................. 39
Product Prices.................................................................................................................................................................... 40
Competitor Prices ............................................................................................................................................................. 42
Pricing Strategies .............................................................................................................................................................. 45
The Marketing Mix – Place.................................................................................................................................................. 46
Distribution Channel ........................................................................................................................................................ 46
Retailers in the Distribution Channel ............................................................................................................................ 47
Location, layout, ambience and accessibility ......................................................................................................... 47
Suggestions ........................................................................................................................................................................ 51
ANNEX A - Interview with Wholesaler............................................................................................................................ 52
ANNEX B - Interview with Retailers ................................................................................................................................ 57

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Introduction

Ever since smartphones where introduced, there has been an emerging trend towards larger
screens. Soon after, smartphone’s size and functionality has almost met what a tablet device can do.
Hence, the fusion of the word “phone” and “tablet” leading to what popularly known today as
“phablets”.
Actually, phablets are thought as already been previously introduced from way back 1993
starting from EO Personal Communicator which did combined some tablet and phone functions.
HTC Advantage could claim as producing the first proper phablet running on Windows Mobile but
it was then a heavy purchase and weighed almost a pound. The 2010 Dell Streak was probably the
first device to be called a phablet, as described by Tech journalist Ian Scales in a Telecom TV
article back in 2010 but it failed miserably on every count.
1

Although some of the very first introduction of phablets turned out to be unsuccessful, still
companies strived harder to innovate and market this device successfully. Finally, after some time,
the efforts were paid off.
Not long after, Samsung has unveiled the first Galaxy Note in 2011 that created a brand new
smartphone category: one notch higher than smartphones and one notch lower than tablets with a
resounding success of million units sold despite the initial skepticism that greeted it.
2
Although for
a long period of time that Apple has been the king in the consumer electronic world, Samsung has
changed that in a very short time with its own high-end range of functioning mobile phones. The
Galaxy range itself is so vast with the Samsung Galaxy Note 2 and Galaxy S4 becoming the biggest
selling series in 2012 and proved to be just as big in 2013. Samsung also runs the popular Android

1
Hill, Simon. (2013). History of phablet. Retrieved July 12, 2014, from http://www.androidauthority.com/phablet-history-279494/
2
Mariano, Archie. (2014). ”The Phablet to Rule”. Retrieved July 22, 2014, from http://tech.co/phablet-rule-samsung-galaxy-note-3-vs-sony-xperia-z-
ultra-2014-01

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operating system that crowns many mobile handsets making Samsung the king of the Android
Smartphone’s market.
3

The success of Samsung’s release of phablets has soon been followed by other companies as
well. In fact, last year could certainly be titled as “The Year of the Phablet” and 2014 is off to a
great start in that category, too. In 2013, Samsung's Note family representatives met some serious
competition for the first time, when most every phone maker decided to introduce their take on
those 5.5"+ devices that people seem to be enjoying about lately.
4

Nowadays, with lots of phablets to choose from, features aren’t the only one to be
considered by companies when developing phones. Consumers’ play the very important role in a
product’s success therefore, factors that comes along with the consumer preference is being focused
as well. Trends affects the consumers be it the product’s style, design and benefits. Not only that but
also prices, how the product has reached and effectively distributed to the consumers are also being
looked at.
Competition is tough wherein all aspects of the marketing mix are crucial for a product
success. It is very important to be far more creative not just with the product but also in maintaining
relationship in all channels of distribution. This will help in the success of the product life cycles
introduction and growth stage, prolonging maturity stage and if unavoidable, at least ensure profit
has been obtained and product brand has been established before it reached its declining stage.
Up until now, Samsung has kept on innovating smartphones and phablets with features
designed to keep up with the ever changing demands of its target market. Phablets in particular have
had issues especially with its size but eventually had proven to be a hit on customers who are
willing to compromise with the size to enjoy what it can offer. Through extensive market research,
Samsung had done ways to improve their phablets that led them to produce Galaxy Note successors
- Note 2 and Note 3.

3
Samsung Phones. (n.d.). In HiTEC MOBILE. Retrieved June 16, 2014, from http://www.htimobile.com/samsung.html
4
P. Daniel. (2014). "The best phablets". Retrieved July 12, 2014, from http://www.phonearena.com/news/The-best-phablets-and-big-screen-phones-
money-can-buy-in-2014_id48270

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So far, they have been successful in staying on top of its game. Thanks in part to its
marketing success and great products; Samsung makes more smartphones than any other
competitor. And it continues to make all sorts of electronics and components.
5

The next chapter will discuss the different 4Ps that comprises the Samsung Galaxy Note
phablets. Towards the end of each 4Ps discussion, suggestions are being recommended on ways that
can help the company improve the current 4Ps of the product.
The Marketing Mix – Product
Product Range and Classification
Samsung Galaxy Note phablet series are electronic mobile devices which are Android-based
high-end smartphones and high-end tablets developed and marketed by Samsung Electronics. The
line is primarily oriented towards pen computing; all Galaxy Note models ship with a stylus
pen and incorporate a pressure-sensitive Wacom digitizer. All Galaxy Note models include apps
designed for S Pen or stylus use beneficial for note taking, digital scrapbook and multi-window
tasking.
It’s a kind of a shopping product that consumers purchase but not as frequent compared to
convenience products. The prices of these products, depending on the phablet released, are quite
expensive than the regular smartphones in the market, thus, consumers spend more time in deciding
before buying the product. Prices not to mention branding as well makes purchasing the product as
an additional benefit to the purchaser such as raising their perceived status level within their social
group.
6

5
Kovach, Steve. (2013). “How Samsung Went”, Retrieved May 27, 2014, from http://www.businessinsider.com/history-of-samsung-2013-
2?IR=T &op=1
6
Categories of Consumer Products. (2014). In Targeting Markets Tutorial - KnowThis.com. Retrieved June 20, 2014, from
http://www.knowthis.com/product-decisions/categories-of-consumer-products

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Product Target Market
The target market is much smaller than that of convenience goods because consumers
purchase these products less frequently. Consumers are far more willing to shop and locate the
products so marketers are often selective and will always do market research first before deciding
on choosing distribution outlets to sell the products.
The simplest way to define a market is it comprises all customers who have needs that may
be fulfilled by an organization’s offerings. Yet just having a need is not enough to define a
market. So other factors come into play when defining a market.
7

The target market depends on the distribution channels. For this product, the channels will
start from the manufacturer to the end-user or consumer. Either consumer or business, each sector
can be a target market of the product.
Targets business or enterprise users
Samsung had released an ad for Samsung Galaxy targeting business or enterprise users. The
ad has shown how the phablet can be used to take notes, watch video, multitask, and transfer files
over NFC.
8
The phone is perfect for those people who constantly do work on the go; be it checking
emails, take notes in a meeting, check documents, call conference and so forth.
Targets the female market
Before the Samsung Galaxy Note 1 was released, Andrew Glass, Sales Director of Samsung
UK had expressed that the phablet aims to target the female audience. “The Galaxy Note is really
good for the female market,” said Glass. He added: “To have a handbag and be able to put a 5.37-
inch phone in instead of a 10.1-inch tablet is something that I think will capture the female
market.”
9

7
What is a Market?. (2014). In Targeting Markets Tutorial - KnowThis.com. Retrieved June 20, 2014, from http://www.knowthis.com/targeting-
markets/what-is-a-market
8
Sage, Simon. (2012). "New Samsung". Retrieved July 15, 2014, from http://www.androidcentral.com/new-samsung-galaxy-note-2-ad-targets-
business
9
Johnson, Luke. (2011). "Samsung Galaxy Note". Retrieved July 15, 2014, from http://www.t3.com/news/samsung-galaxy-note-to-target-female-
market

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But if we have to observe, this is not really the case today. Consumers whether male or
female find themselves using these phablets regardless of the size. Although initially, the size was
an issue especially on men who prefers to put their phones in their pockets, recently, more clothing
companies are actually redesigning their pants in order to accommodate these huge handsets. In
fact, Dockers vice president of global design Doug Conklyn told FoxNews.com during an interview
that Dockers had to rework a concealed “Mobile Pocket” on some of its Khaki pants in order to
accommodate growing smartphone sizes. Also adding, “We recently increased the size of our ‘coin
pocket,’ which is the pocket-within-the-pocket on the wearer’s right, from 3×3 to 4×4 to
accommodate today’s larger phones”.
10

Targets users who want to consolidate all devices into one
With the enlarge screen, it allows more room for certain interactive features more commonly
found on tablets. The device is targeted towards users looking to condense their device usage into
single product. Users will be able to do what they can do from using smartphones and tablet all on
the same device.
Targets creative users
With the Samsung Galaxy phablets, you can make use of its S-Pen to write notes instead of
the usual pen and paper. You can save, print and even share notes online or send through email.
You can even write on the screen if ever you’re browsing on something and would want to take a
note then save it on your Gallery for later viewing, sharing or printing.
Targets users who wants a tablet-like phone and portability
The Galaxy Note’s size as a phablet falls between the size of a phone and a tablet. Its large
screen design makes users who want tablet-like functionality all in one screen. Plus, it can easily be
carried around and can even fit into ones pocket or purse.
Targets users who wants a phone with multi-functionality in one screen
Most smartphones have very small screens. With Samsung Galaxy Note phablets, you’ll be

10
Epstein, Zach. (2013). "Is that a phablet". Retrieved May 27, 2014, from http://bgr.com/2013/04/26/phablet-size-study-pants-467278/

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able to do multi-tasking all in one screen (multi-window split feature). It has big enough screen to
support opening multi-windows in the same window all at the same time.
Product Components
Core Benefits
Consumable product features are characteristics that offer benefits to the customer since
they are the main reason a customer makes a purchase.
11

Functional benefits – are called functional because the user directly associates with the
consumable product.
12

Below are some of the functional benefits a consumer can get from purchasing any of the
Samsung Galaxy Note phablets as taken from Samsung Galaxy global microsite.
[13] [14] [15]
The
benefits are being upgraded on each of the Samsung Galaxy Note phablets released from the
Samsung Galaxy Note 1, to Note 2 then Note 3.
1. Portable immersive smartphone + tablet device in one
 Large screen + Light and thin design – large screen size and phablet portability which
consolidates the functionality of a smartphone and tablet all in one device while on the go.
Although the phablets comes with big screens, it has a very slim body to fit just right into
your hand.
 Excellent viewing experience – the SUPER AMOLED display offers cinema quality, better
clarity and 16:9 screen ratios perfect for all viewing experiences. Although the phablets
comes with big screens, it has a very slim body that fits in the palm of your hands.
2. Full screen optimization for fast effective tasking in one view
 Minimal screen scrolling and transition – large screen provides advantage of being able to

11
Consumable Product Features. (2014). In Product decisions Tutorial - KnowThis.com. Retrieved June 20, 2014, from
http://www.knowthis.com/product-decisions/consumable-product-features
12
Product Features and Functional Benefits. (2014). In Product decisions Tutorial - KnowThis.com. Retrieved June 20, 2014, from
http://www.knowthis.com/product-decisions/product-features-and-functional-benefits
13
Benefits. (2011). In Samsung Galaxy Note. Retrieved July 6, 2014, from
http://www.samsung.com/global/microsite/galaxynote/note/benefit02.html?type=find
14
Benefits. (2012). In Galaxy Note II. Retrieved July 17, 2014, from
http://www.samsung.com/global/microsite/galaxynote/note2/benefits.html?type=find
15
Features. (n.d.). In Galaxy Note 3. Retrieved July 18, 2014, from http://www.samsung.com/global/business/mobile/product/galaxy-note/SM-
N9000ZIEACR-features

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view more in one glance for less scrolling. Lots of screen transition options to choose from.
 Multi- window – do multiple tasks on the same screen at the same time. (For all Samsung
Galaxy Note phablets). The enhanced multi- window feature recently allows users to drag
and drop files to share between applications easily.
 Air View – Save your time and energy to manage your files by easy quick browse without
the need to open any folders or any item. (Samsung Galaxy Note 2 and 3)
 Quick command – making basic tasks like calling, sending emails, SMS and a lot other
things easier by just writing the command on the pad. (Samsung Galaxy Note 2 and 3)
3. Free capturing and creation – best multi-input experience through sketching drawing and
notes anytime with S Pen, shape match and formula match tools for drawing calculations,
instantly capture and annotate any screen and drawing instead of texting options in messaging.
4. Simple but amazing way to express emotions - awesome photo editing experience through
various picture editing effects, easy crop and clip of texts to store or share in social networks,
handwritten notes in photos, and continuous capture of images with fixed filters from the phone.
5. Enhance confidence and professionalism on phablet’s premium stylish design on both
physical and content.
6. Enhance multi-tasking through powerful features that let users work effectively
7. Maximize productivity with phablet’s enhanced short cut features
 Pen window – No need to click on any menu or other apps. Users can draw a small window
in the screen to show basic application tasks.
 Popup Note – while on a call, pull out the S Pen to enable Popup Note you can use to write
instead of texting while talking on the phone.
 S Finder – efficient search of information or content on the phone using S Finder.
 Action and Instant memo – easily launch related applications for your use
 Direct Pen Input – enables users to perform handwriting on all input fields.

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 Voice Recorder – lets users perform high-quality recordings with two built-in mics at the
top and bottom part of the device and advanced recording options including Interview,
conversation and Normal modes.
8. Business experience with enterprise solution – provides secured access to enterprise assets
such as contact details, emails and attachments (Samsung Security Solutions), secured and
flexible messaging that allows real-time communication to configure settings remotely, monitor
policy compliance and ensured and safe data synchronizing (Microsoft Exchange ActiveSync),
professional mobile meeting while on the go (Cisco WebEx), network connectivity access
anytime, anywhere through VPN solution and virtual solutions for shared business folders,
enterprise storage functionality to retrieve the file whether online or offline and real-time
presentation while on the go through collaborative whiteboard application where others who
have access to the same application can collaborate in real time on the same screen.
9. Enhance creativity – lets users unleash their creative side with free creative apps most suitably
used with Samsung Galaxy Note’s stylus functionality. Easy fill-in drawings through S Pen as
well.
10. Easier way of transferring data – enables users to use Smart Switch, Dropbox, click and drag
file transfers and are compatible with other platforms like iCloud services.
11. User-friendly
 Easy mode – enables users set their home screen to easy mode with key functions such as
favorite contacts, apps, dialer etc at ease.
 One hand operation – enables users who don’t want to use both hands to type a message
only
12. Powerful performance at its best
 Built with powerful processor for unrivaled use of application.
 Advanced camera feature for capturing photos in deep detail, easy way to review photos and
share through different platforms.

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 Expandable memory
 Strong battery life for prolong use and power save battery options if you’re running out of
battery but need to keep the phone on for longer.
 Partners with Google Now that brings the right information based on search history, location
and time automatically,
 Runs with the fastest and smoothest version of Android

platform which makes everything
feels fast, fluid and smooth.
Psychological Benefits
These benefits address user needs such as status within a group, risk reduction, sense of
independence and happiness.
16

1. Samsung Galaxy Note phablets are expensive and the price doesn’t go down that easily. It
is perceived as the more expensive the product, the higher its quality.
2. Although latest release of Samsung Galaxy Note phablets are perceived by other users that it
doesn’t have any difference from the last ones, those target markets such as business
entrepreneurs and those who look for high-end product quality perceived each products as
highly innovative each time a new version is being released.
Actual Product

Samsung Galaxy Note

History
The original Samsung Galaxy Note 1 has been first
introduced during IFA 2011 in Berlin. It started its roll out
on October 29, 2011 from Germany, the Netherlands,

16
Product Features and Psychological Benefits. (2014). In Targeting Markets Tutorial - KnowThis.com. Retrieved June 20, 2014, from
http://www.knowthis.com/product-decisions/categories-of-consumer-products

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Belgium, the UK and France. By the end of November most of Europe should have already
received the Gingerbread-running tablet-slash-phone.
17
It then became available in East Asia,
Europe and India and finally came to Singapore by November 2011; first releasing the Samsung
Galaxy Note with 3G network capability followed by 4G LTE.
Brief Description
The Samsung Galaxy Note is an Android phablet of 5.3
inches (135mm) screen and was initially ridiculed by
reviewers for its humongous size and the reintroduction of
obsolete styluses.
18
Although it has some issues on its size at
first, it then received a positive feedback because of the stylus functionality and apps supporting
stylus input, dual camera of 8MP at the rear and 2MP in front, excellent processor performance,
brilliant display, slick software and great battery life.
19

It has been considered as the first commercial success of phablets with its 5 million units sold
on the first quarter from its released, rising to 10 million units in the next 2 quarters. It is now
considered as obsolete in the market and only few stores remains to sell this device.
Samsung Galaxy Note II

History
The Samsung Galaxy Note 2 was first
announced by JK Shin, President of IT & Mobile
Communications Division at Samsung Electronics
during an IFA event at Berlin, Germany on August 29,
2012 with the idea of the device letting users to ‘unleash their inner creativity’.
20
Samsung
Electronics Co. says it has sold more than 3 million Galaxy Note II in little over a month since its

17
“Samsung announces”. (2011). In GSMARENA. Retrieved July 20, 2014, from
http://www.gsmarena.com/samsung_announces_galaxy_note_and_nexus_roll_out_schedules-news-3322.php
18
Mariano, Archie. (2014). ”The Phablet to Rule”. Retrieved July 22, 2014, from http://tech.co/phablet-rule-samsung-galaxy-note-3-vs-sony-xperia-z-
ultra-2014-01
19
Catanzariti, Ross. (2011). "Samsung Galaxy Note". Retrieved July 20, 2014, from
http://www.pcworld.idg.com.au/review/samsung/galaxy_note/401248/

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launch and 5 million units in just 2 months. It has made the company top the market with 56.3
million sales in the July – September third quarter, more than double Apple’s 26.9 iPhone sales.
[21]

[22]

It has reached the Singapore market with its Samsung
Galaxy Note II LTE media event launch of Be Creative with
Samsung held at the Ritz Carlton Hotel on October 17, 2012
but has only been available in the market on October 19, 2012
by the major telcos in Singapore.
[23] [24]

Brief Description
It is the successor of the original Samsung Galaxy Note 1 with enhanced stylus
functionality, upgraded digitizer for stylus pen input, a larger screen of 5.5 inch but a thinner form,
faster quad core processor, enterprise capability, software and hardware refinements and a lot more
enhancements. The back cover is a hyper-glazed plastic cover.
Samsung Galaxy Note III

History
Samsung's made an annual tradition of
introducing the new Galaxy Note 3 at Berlin's IFA
trade show on September 4, 2013.
25
It has begun
releasing units worldwide later that month and has
been available in 58 countries, singling out China as a particularly strong market due to the

20
Pearce, James. (2012). Samsung Galaxy Note II announced at IFA. Retrieved July 22, 2014, from
http://www.coolsmartphone.com/2012/08/29/samsung-galaxy-note-ii-announced-at-ifa/
21
AAP. (2012). “Samsung’s Galaxy Note”. Retrieved July 21, 2014, from http://www.news.com.au/world/breaking-news/samsungs-galaxy-note-ii-
sales-hit-3m/story-e6frfkui-1226509430491
22
“Samsung sold 5”. (2012). In GSMARENA. Retrieved July 20, 2014, from
http://www.gsmarena.com/samsung_sold_5_million_galaxy_note_ii_units_in_just_two_months-news-5121.php
23
Sim, Darren. (2012). “Samsung Galaxy Note 2”. Retrieved 10 June, 2014, from http://www.darrensim.com/2012/10/20/samsung-galaxy-note-2-
launch-in-singapore-october-2012/
24
Jang, Richard. (2012). “Samsung Galaxy Note 2”. Retrieved July 21, 2014, from http://richardjang.typepad.com/techstuffs/2012/10/samsung-
galaxy-note-2-lte-launch-in-singapore.html
25
Savov, Vlad. (2013). “Samsung’s Galaxy Note 3”. Retrieved July 22, 2014, from http://www.theverge.com/2013/9/4/4693206/samsung-galaxy-
note-3-specs-features-release-date-price/in/4458445

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popularity of the S Pen and just launched two new colors there. Samsung's president and CEO, JK
Shin, reported that Samsung shipped 5 million Galaxy Note 3s in the first month and 10 million
units sold in mere 60 days. The success of the sales from Samsung Galaxy Note 1 that took 5
months to reach 5 million units sold, two months to reach this level for Note 2 and a month to reach
10 million units sold only shows that as more phones are getting larger, the Note lines are becoming
more appealing.
[26] [27]
Samsung was launched in Singapore on September 27, 2013 on all three
Telco services.
28

Brief Description
It is the recent release of Samsung’s Galaxy
Note series; an android device intended for both the
mainstream consumer and enterprise consumer. It
pretty much looks the same as its predecessors but
with a lot of useful improvements from physical
redesign, software, apps and most specially, the S Pen friendly features. The size has been enlarged
to 5.7 inches with an improved RAM, processor, camera resolution, Wacom digitizer and
redesigned symmetrical stylus that you can tuck into the slot without the need to turn it upwards and
has made the device thinner and lighter than the previous Note 2. The back cover though is still
made of thin plastic but has faux leather with fake stitches outside which doesn’t really look bad,
have metallic look sides and lined appearance resembling a closed notebook.
Specifications Comparison
Pictures and data specifications taken from phonearena.com mobile comparisons
29

26
Dent, Steve. (2014). “Samsung’s Galaxy Note 3”. Retrieved July 22, 2014, from http://www.engadget.com/2013/12/10/samsung-note-3-10-million-
sold/
27
Miller, Matthew. (2013). “Samsung ships 5 million”. Retrieved July 22, 2014, from http://www.zdnet.com/samsung-ships-5-million-galaxy-note-
3s-in-first-month-7000022615/
28
Aljaru, Navene. (2013). “Buyers cite large display”. Retrieved August 9, 2014, from http://www.todayonline.com/singapore/samsung-galaxy-note-
3-launches-singapore
29
Samsung GALAXY Note LT E vs Samsung GALAXY Note II vs Samsung Galaxy Note. (n.d.). Retrieved July 18, 2014, from
http://www.phonearena.com/phones/compare/Samsung-GALAXY-Note-LTE,Samsung-GALAXY-Note-II,Samsung-Galaxy-Note-
3/phones/6779,7254,7984

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Page | 14

Augmented Product

Guarantee: mostly give 7 days (for products ordered abroad 14 days) assurance that the product
will perform according to expectations and if not, devices can be replaced, repaired or return for
refund. Full box should be included with the receipt upon return.
Warranty: each mobile device has 1 year manufacturer warranty receipt to have the mobile
repaired or replaced from the manufacturer’s service center. This will be used by consumers who
bought the product. Consumers are also advised to visit the relevant manufacturer’s service centre
on the shop’s website.
Customer Service: offers in-shop assistance like inquiry and purchasing and deliveries.
Distributors offer extra assistance like seminars on the product.
Complementary Products: offers free products like mobile accessories. Some offers smart support
service (official dealer stores).

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Suggestions for Improvement
I think the actual product will be more functional if the screen can register other input aside
from its dedicated stylus like ball pens or pencils like Sony Xperia Z Ultra. Also, it’s a bit hard to
use the stylus as oftentimes I press the stylus button accidentally which triggers screen options that
distracts me from what I was currently doing. I think it will be better if they can design the stylus by
moving the buttons where the user can’t accidentally press it. As for the augmented product, I
probably have suggestions on it like the International warranty of Business Districts retail stores.
Honestly, it’s the first time I heard about this when I conducted my interview. I think retail staff
should provide more information and even show proof that this is possible. As we all know, these
stores doesn’t have a good reputation and we get to read reviews of buyers who felt they were
ripped off by the retail staff. I suggest that they provide honest customer service and explain more
of what the consumer has to expect upon purchase if the product.
Branding
Samsung Galaxy Note Series History

Samsung Electronics Co. Ltd. founded January 13, 1969 and headquartered in Suwon, South
Korea engages manufacture and sale of electronic products. Its firm is divided into different
divisions: Consumer Electronics (CE) that provides cable television, monitor, printer, air-
conditioners, refrigerators, washing machines and medical devices; Information Technology &
Mobile Communications (IM) and Device Solutions (DS) that offers handheld products,
communication systems, computers and digital cameras. It also comprises memory, system large
scale integrated circuit and light emitting diode.
30

Samsung IM research team has found out that people would always want to do multi-tasking
while on the go – be it calling, sending messages, computing, internet surfing, managing emails,
playing games, enjoying multi-media applications such as pictures and watching videos and a lot

30
Samsung Electronics. (2012). In Forbes. Retrieved Aug 9, 2014, from http://www.forbes.com/companies/samsung-electronics/

Page | 16

more. But even with the introduction of smartphones making these activities possible, still, previous
devices have had some limitations in doing so.
The focus of the research done is that, even for consumers with multiple smart devices, they
still carry around a notepad for writing down ideas. There is an emerging desire for a primary
device for on-the-go use that could consolidate the core tasks of multiple devices as well as recreate
the ease and simplicity of using a pen and paper.
31

Photograph of the idea of consolidating core tasks of multiple devices into one. 2011. Samsung Electronics Co.Ltd. Galaxy Note Story. Web. 06 July.
2014.

With this in mind, the consumer research conducted has led to the development of a new
type of smartphone with an innovated solution that basically will help consumers minimize the need
of using multiple devices and just consolidate all these tasks into one device. But Samsung’s aim is
not just that, their primarily focus is oriented towards the use of note taking, scrap booking and
multi-tasking thus, the introduction of Samsung Galaxy Note.
Samsung Galaxy Note name origin
“Samsung” (Hangul: 삼성; Hanja: 三星) is a Korean word which is referred to as “Tristar
or Three Stars”. According to company sources three represents “Powerful” and the “stars” mean
eternity.
[32] [33]
The name was chosen by Samsung founder Lee Byung-chull whose vision was for

31
Galaxy Note Story. (2011). In SAMSUNG GALAXY NOTE. Retrieved July 6, 2014, from
http://www.samsung.com/global/microsite/galaxynote/note/story.html?type=find
32
Yibaleh, Biniam. (n.d.). Samsung. Retrieved July 28, 2014, from http://www.pinterest.com/yibaleh/biniam-yibaleh/

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his company to become powerful and everlasting like stars in the sky. The three stars remained as
the company logo in various forms until 1993 when the current logo was introduced.
34
“Galaxy”
however is what Samsung had named all of their Android phones with the release of its first
Samsung Android phone named Samsung i7500 Galaxy. And as mentioned earlier, the “Note”
series came from Samsung emerging desire for a primary device for on-the-go use that could
consolidate the core tasks of multiple devices as well as recreate the ease and simplicity of using a
pen and paper.
35
The numbers 1, 2 and 3 in the series pertains to the order of Samsung Galaxy Note
series released.

Does the brand name possess desirable qualities of a good brand name?
1. Suggest something about the product’s benefits and qualities.
If we interpret the name Samsung Galaxy Note series based from its origin name, we can also
call it as “Powerful Android Note” series. Literally, it’s a very powerful Android phone that works
like a notebook because users can use the stylus as a pen and the phone itself as the paper.

2. Should be easy to pronounce, recognize and remember
Samsung name has been in the industry for so long same as the term Galaxy which Samsung
use to name all if its Android mobile flagship from the beginning while maintaining the device’s

33
How great companies got their names. (n.d.). In Yes I Know That. Retrieved July 28, 2014, from http://www.yesiknowthat.com/how-great-
companies-got-their-names/
34
[Infographic] 20 Things You Didn’t Know about Samsung. (2013). In SAMSUNG TOMORROW . Retrieved July 28, 2014, from
http://global.samsungtomorrow.com/?p=24212
35
Galaxy Note Story. (2011). In SAMSUNG GALAXY NOTE. Retrieved July 6, 2014, from
http://www.samsung.com/global/microsite/galaxynote/note/story.html?type=find

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design methodology. The Note is far most easy to remember as all of Samsung’s devices named
with Note are those that has the tablet/phablet form with the stylus pen. Most Note devices are
commonly called as “Note” followed by the number series so it’s definitely easy to pronounce,
recognize and remember.
3. Should be distinctive.
The product name is quite distinctive in the sense it displays the spectrum of descriptive mark
distinctiveness wherein the meaning of the brand name is used in connection with products or
services related to the meaning. The term “Galaxy” which could mean wide or in this product, can
be termed as lot of variety and “Note” which can be coined as notes or notebook are words that
aren’t been used extensively in the market before.
4. Should translate well into other languages.
The name Samsung, aside from its Korean meaning, is pronounced as “San Xing” in Mandarin
and has no meaning in the Chinese translation. The name Galaxy and Note are very descriptive and
it’s a name that even if you translate into other languages will actually mean the same thing.
5. Should be legally protectable.
Under the U.S. law, characters or images that contain simple geometric shapes or text are free
from copyright restrictions because it does not meet the threshold of originality for copyright
protection. However, since these fonts are also scalable they will generally be protected even
though the specific design of the characters is not.
36

6. Extendable
Samsung Galaxy Note name is actually used not just with the phablet but also with the tablet
series as well. The use of the name being extended from the phablet to the tablet is appropriate
because the use of stylus over a Note tablet also pertains to the same uses of the stylus pen on the
Note phablet.

36
“Code of Federal Regulations”. (n.d.). Retrieved Aug 17, 2014, from http://www.archives.gov/federal-register/cfr/ Ch 37, Sec. 202.1(e)

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Suggest changes in brand name

I can’t think of any name suitable for the product because I believe that Samsung had given
the phablets an appropriate brand name. However, I think I have some suggestions on the fact that
they also use the name “Note” in some of their tablet product lines which makes it confusing. For
example, when I was searching the net for “Note” I encountered Samsung Galaxy Note 10.1 from
one of the searches. I know for a fact that the latest series for Note phablet is Note 3 Neo but seeing
the previous name got me all confused. I think Samsung should have added “tablet” and named it as
Samsung Galaxy Note tablet 10.1which differentiates the product easily from the phablet.
Product differentiation from competitors

Component supply chain

Back in 2010, Samsung was taking an Apple-like strategy for its smartphone business.
Instead of multiple handset models offered, Samsung decided to focus on one handset for its
flagship phone. With one phone model—just like Apple—Samsung benefits from production scale,
common components, and similar experience for its Galaxy phone owners. One reason for the
company’s success is that various hardware components of the smartphone are manufactured
directly by Samsung. The company makes its own chips to power phones, Super Amoled handset
displays, and flash memory for internal storage.
37
In short, the company manages its own
component supply chain.
Bigger screens
“Nobody had any idea what the right screen size was, so Samsung made all of them and saw
which one worked,” says Benedict Evans, a researcher at Enders Analysis. Producing a range of
similar devices in various sizes to see which sells best is one of those high-cost undertakings most
companies shy away from. But Samsung’s ability to produce display, memory, processors, and

37
T ofel, Kelvin. (2012). Why Only Samsung Builds Phones That Outsell iPhones.Retrieved July 29, 2014, from
http://www.businessweek.com/articles/2012-11-09/why-only-samsung-builds-phones-that-outsell-iphones

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other high-tech parts gives it a flexibility competitors can’t touch. The bigger screens proved to be a
major selling point.
38

Stylus functionality (Unique Selling Point)
Samsung Galaxy Note 3 and older versions are already shipped with stylus as well while
others are not. It positions itself as a phablet with pressure-sensitive S-Pen stylus input and relevant
software applications. With the phablets running on Android operating system, the app store have
lots of free and paid applications that consumers can make more use of the stylus pen. That
combined with the range of productivity software features had probably the main reasons why the
line-up has been so successful.
39

Image: HT C One Max stylus. (n.d.). HT C Shop/
UK. HTC One max Stylus Pen ST P100. Web. 17
Aug. 2014.

Image: LG G Pro 2 stylus. (n.d.). ebay.com.sg.
White Capacitive Touchscreen Stylus Pen for LG
G PRO 2. Web. 17 Aug. 2014.

Image: Sony Xperia T 2 Ultra stylus. (n.d.).
BOXWAVE. Capacitive Sony Xperia T2 Ultra
Stylus. Web. 17 Aug.
2014.

Image: Samsung Galaxy Note 3 stylus. (n.d.).
PhoneArena. Samsung Galaxy Note 3 Pictures.
Web. 17 Aug. 2014.

Though other phones are not shipped with stylus, users have the option to buy them
separately. Available styluses however don’t have as much stylus functionality as Samsung Galaxy
Note series.
Competitor Comparison to other phablets
For this section, we’ll use a comparison to three of the best phablets money can buy in 2014
and what features are looked heavily these days by consumers on phablets.
[40] [41]
[
42
] [
43
Since 2013
seems to be the year for phablets, we did most of the comparisons to Samsung Galaxy Note 3.

38
Grobart, Sam. (2013). How Samsung Became the World's No. 1 Smartphone Maker. Retrieved July 29, 2014, from
http://www.businessweek.com/articles/2013-03-28/how-samsung-became-the-worlds-no-dot-1-smartphone-maker#p4
39
Andrici, Vlad. (2014). “Phablet Rivalry”, Retrieved July 29, 2014, from http://thediplomat.com/2014/02/phablet-rivalry-samsung-galaxy-note-3-
vs-lg-g-pro-2/
40
P., Daniel. (2014). “The best phablets and big-screen”. Retrieved July 31, 2014, from http://www.phonearena.com/news/The-best-phablets-and-
big-screen-phones-money-can-buy-in-2014_id48270

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 Sony Xperia T2 Ultra – officially announced Jan 14, 2014
 HTC One Max – officially announced Oct 14, 2013
 LG G Pro 2 – officially announced Feb 12, 2014
Operating System
Almost all phablets mentioned uses the same Android operating system. But if we have to
look at previous Note – 1 and 2, they were shipped using an updated Android system since then -
Android 4.0 (Note 1 LTE; announced Sep 1, 2011) and Android 4.1.1 (Note 2; announced Aug 29,
2012).
Display
The Samsung Galaxy Note 3 measures 5.7 inch. Other phablets like HTC One Max and LG
G Pro 2 (5.9 inches) are just a few centimeters bigger but Sony Xperia T2 Ultra seems to be the
largest with its 6 inch dimensions.
Of the phablets released from 2013, Note 3(168 g) seems to be the lightest compared to
HTC One MAX (217g), Sony Xperia T2 Ultra and LG G Pro 2 (172 g).
The screen size definitely affects the technology used for pixel density with Samsung Note
series running in Full HD Super AMOLED display with a pixel density of 386ppi while the others
runs in S-LCD 3 in 367ppi (HTC One Max) and IPS LCD (Sony Xperia T2 Ultra and LG G Pro 2).
It really depends upon the person’s preference depending on their use to say which screens
suits them best. However, if we have to look at the phablets being compared, the Samsung Galaxy
Note can give you the fair screen size enough to watch comfortably, excellent screen resolution
with better quality videos and lighter weight which tops this phone from the others.
Hardware
Samsung Galaxy Note series uses an upgraded Snapdragon 800 chip clocked at 2.3GHz

41
Samsung Galaxy Note 3 vs Sony Xperia Z Ultra vs HTC One max. (n.d.). In PhoneArena. Retrieved June 12, 2014, from
http://www.phonearena.com/phones/compare/Samsung-Galaxy-Note-3,Sony-Xperia-Z-Ultra,HTC-One-max/phones/7984,7883,8008
42
LG G Pro 2 vs Samsung Galaxy Note 3. (n.d.). In PhoneArena.Retrieved August 2, 2014, from http://www.phonearena.com/phones/compare/LG-
G-Pro-2,Samsung-Galaxy-Note-3/phones/8348,7984
43
T horn, Thomas. (2013). HTC One Max vs Samsung Galaxy Note 3 vs Sony Xperia Z Ultra. Retrieved August 2, 2014, from
http://www.techradar.com/news/phone-and-communications/mobile-phones/htc-one-max-vs-samsung-galaxy-note-3-vs-sony-xperia-z-ultra-
1189214/1

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(same with LG G Pro 2) edging out Sony Xperia T2 Ultra by 0.7GHz and HTC One Max by
0.4GHz. Although all of these devices use the Quadcore processors, the Samsung Galaxy tops them
all with Quadcore 2300 MHz, Krait 400 compared to the rest that uses Quadcore 2260 MHz, Krait
400 and Quad core, 1400 MHz, ARM Cortex-A7 (Sony Xperia T2 Ultra).
Looking at the hardware features, the Samsung Galaxy Note 3 is faster and powerful when it
comes to system chip and processors for enhanced use of the device.
Storage
While all of these devices have storage expansion capabilities of up to 64GB the recent
Samsung Galaxy Note 3 differentiates itself as it has a built in storage of up to 64GB compared to
the rest using 8GB(Sony Xperia T2 Ultra) and 32GB (HTC One MAX and LG G Pro 2). It also
packs the largest amount of 3GB RAM which makes it so powerful. The LG G Pro 2 does use the
same RAM as well (but have to consider that it’s released recently than Note series) while Sony
Xperia T2 Ultra and HTC One MAX only uses 2GB RAM.
This shows that the Samsung Galaxy Note 3 provides more internal and external storage
compared to other phablets.
Camera
Looking at the phablets released from 2013, almost all of them can record a full HD video
and has a front-facing camera of 2 megapixels. LG G Pro 2 has 2.1 megapixels though which
doesn’t make too much difference). The difference is that the Note 3 has a 13 megapixels camera
with a 31mm focal length and a camcorder of up to 3840x2160 (4K) (30fps) same with the LG G
Pro 2 (again we have to consider when was this released and the screen type as well). The other
phablets has a camcorder of 1920x1080 (1080p HD) (30fps) at the maximum with Sony Xperia T2
Ultra (1.1 megapixels) and HTC One MAX (4 megapixels) front-facing camera.
This only means that upon its released, the Samsung Galaxy Note 3 is already sporting the
most powerful camera and camcorder feature among other phablets.

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Battery Life
The battery life is considered as one of the most important factor to look at on mobile
devices. The Note 3 has a battery capacity of 3200 mah (same with LG G Pro 2) which fair
compared to the Sony Xperia T2 Ultra (3000 mah) and HTC One MAX (3300 mah).

In the test conducted by GSM Arena, below are the results of the talk time, web browsing
and video playback of these devices as to test the battery life.
44

Although the Samsung Galaxy Note 3 got a lower talk time result test compared to the other
phablets, it gained fair result on web browsing and got a higher result for video playback.
Personally, with the internet nowadays, people prefers to communicate over the internet mostly
through social networks and with the video playback result where Note 3 got the higher score only
puts the use of a mobile phone for calling and a tablet for web surfing and video playback effective
as a phablet.
Competitor Comparison to Apple iPhone
As we all know, here in Singapore, most consumers will either have a Samsung smartphone
or an Apple iPhone. I also did a comparison between them to show how the previous differs from
the latter that has been dominating the smartphone market as well.
Operating System
People who want the feeling of having to control their phone and are into tweaks and

44
Vince. (2014). LG G Pro 2 battery life test. Retrieved August 2, 2014, from http://blog.gsmarena.com/lg-g-pro-2-battery-life/

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personalization will be happy with the use of the Android operating system. Recent iPhones
released from 2013 however uses iOS7 and are more for folks who favors clean and elegant surface
and doesn’t bother much about customization of the phone.
45
Similarity between these two OS can
be seen from the quick controls and notifications, basic apps and other apps with different names
but functions the same way. The downside with all iPhones is that files are needed to be sync before
you can put them into the phone whereas with Note phablets, files can be transferred by just drag
and drop.
Display
iPhones 5s and 5c released by year 2013 are all 4.0 inches which are obviously small and
lighter (132 g - iPhone 5c and 112g - iPhone 5s) compared to any of the Samsung Galaxy Note
series or any other phablets. With the physical size comes the smaller screen size which uses an IPS
LCD screen technology. Its body material is either made up of Aluminum or Polycarbonate while
The Note phablet series seems to have the plastic material effect because of its back cover.
Although an advantage for a smaller smartphone is that it fits the pocket easily, most consumers
find bigger smartphones or phablets easy to carry around even in pockets. Users don’t seem to mind
using the mobile phone with both hands. Disadvantages may focus on user experiences like surfing
websites where users have to squint their eyes and do a lot of scrolling to see some parts of a
webpage. Depending on the user, screen technology weren’t as good as the Note phablets for
watching videos and is expensive to create which puts the latter as better when it comes to display.
Hardware
Apple iPhone’s uses Apple A6 and A7 system chip which performs a bit faster than
Qualcomm Snapdragon 800 used by Note series. All devices uses Dual core, 1300 MHz processor
however, the Samsung Galaxy Note 2 which was released at the same year as iPhone 5 already uses
a Quadcore processor compared to the latter who only uses a Dual Core, 1300 MHz. It only shows

45
T . Nick. (2013). Fight for the top: Android 4.4 KitKat vs iOS 7. Retrieved August 2, 2014, from http://www.phonearena.com/news/Fight-for-the-
top-Android-4.4-KitKat-vs-iOS-7_id49453/page/3

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Samsung Galaxy Note series already functions with better processors since its predecessor’s
release.
Storage
Apple iPhones 5cand 5s’ storage capacity are 32GB and 64GB which are just comparable to
the internal storage of all Note phablet series. The expandable storage of Note phablets is
considered an advantage considering that iPhones doesn’t have this feature.
Camera
Recent iPhone series released in 2013 all used 8 megapixels camera compared to Note 3
with 13 megapixels and a front-facing camera of 1.2 megapixels making Note phablets provide
better quality pictures even with the front camera.
Battery Life
Apple iPhones 5cand 5s’ battery life capacity is 1507 mah which is twice smaller than the
Note phablet’s battery capacity. This shows Note phablets have longer battery life than iPhones.
Battery life tests conducted by Phone Arena also shows an hour lower than any other phablets:

Suggestions
Samsung Galaxy Note 3 so far is the only phablet with best stylus functionality and I think it
has clearly positioned itself as it is in the market. However, I think, Samsung should focus more in
the development of relevant applications to maximize use of the stylus functionality. Some of these

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applications are known to some target markets, however, it is not known in general. I think, they
should come up with a manual to introduce this or come up with an augmented service to put the
importance of this product position in the market.
The Marketing Mix – Promotion
Advertising

Samsung’s recent product launches and perhaps the reason why it’s best known today for its
Android smartphones making it a highly visible global brand is highly because of its advertising.
1. Massive advertising spending
It is without doubt that Samsung has been spending a lot of money when it comes to advertising
and it has been growing fast each year. In 2012 it has spent $401M USD to advertise its Galaxy line
of smartphones.
46
By year 2013, it apparently has spent $14B USD on advertising and marketing in
order to sell more Galaxy- branded Android handsets and they don’t seem to dial down its
marketing budget in the near future, even if the money it spends doesn’t always bring back the
expected results, whether it’s lower sales or adverse public opinion. It has been said that Samsung’s
marketing is too focused on projecting an image and because at the time “when their brand doesn’t
have a clear identity, their best strategy is to keep on spending” as observed by Moon Ji-hun, head
of brand consultant Interbrand’s Korean operation.
47
Samsung has used multiple advertising
agencies like The Publicis Groupe, based in Paris, France; The Interpublic Group, Inc. (IPG), based
in New York City, New York; and MDC Partners Inc. (MDCA), a global agency with headquarters
in Toronto, Ontario (Canada) and New York City, New York (U.S.) to spread a diverse message.
48

2. Market gains
The overspending appears to be working even if the return of investment doesn’t seem to be that
much. Being the top seller of smartphones globally, Samsung’s growth targets are all because of its

46
Kahn, Jordan. (2013). “Samsung’s ad budget exploded”. Retrieved August 2, 2014, from http://9to5mac.com/2013/03/13/samsungs-ad-budget-
exploded-past-apple-and-the-rest-of-the-field-in-2012/
47
Smith, Chris, (2013). “Reuters: Samsung to spend $14 billion”. Retrieved August 2, 2014, from http://www.androidauthority.com/reuters-
samsung-14-billion-ads-marketing-galaxy-other-devices-this-year-320700/
48
Mick, Jason. (2013). “Samsung breaks the Bank”, Retrieved August 2, 2014, from
http://www.dailytech.com/Samsung+Breaks+the+Bank+w+14B+in+Advertising+But+is+it+Trying+Too+Hard/article33846.htm

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heavy advertising. Its rising brand recognition is driven not just by spending on advertising its
mobile offerings, but also by its heavy spending in other sectors, including the TV and appliance
markets. One of its marketing aims is to be from being the most preferred smartphone brand to
becoming the world’s leading aspirational brands which can now be seen giving its rise in the
rankings on top research marketing firms such as Forbes and Interbrand.
3. Inspires to be an innovator and not a follower
Many of Apple’s followers are tagging Samsung as a “copycat” which Samsung is trying to
change to “freedom and innovation”. That’s why Samsung has produced campaigns like “Next Big
Thing” and “It’s Time to Change” campaigns which focus on what Samsung is aspiring to be. It
aims to target other product followers to change from the mainstream to the next big thing.
4. Global Recognition
Samsung’s objective is global recognition which requires expensive advertising. Considering its
large market and its revenue which are much spread out all over the globe compared to Apple
which is heavily concentrated in U.S., its aim for publicity seems to be working. In fact, Samsung
has been the official sponsor of all past eight Winter and Summer Olympics where they use it as a
way to announced the launching of their products which recently, were more on Android handsets.
They even recruited advertising rights on athletes and celebrities which aren’t cheap. Although
Samsung may have spent a lot, the publicity gained is considered success as well.
Types of Advertising – Product Oriented
 Teaser – approach in advance of a new product introduction to prepare the market for the
product

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 Informative advertising (provides basic information about the product)

 Comparative advertising – direct comparisons of product to competitor’s offerings.

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 Persuasive advertising - convinces the customers to buy the product.

Types of Advertising – Image advertising
Image Advertising is often used to educate the audience on the context of “what we do”.

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Effectiveness in advertising
Samsung may have overspent with regards to their advertising but I guess they have
achieved what they were aiming for and that is to be globally recognized especially in mobile
devices. I think the advertising helped them a lot in making the product known to the market
especially when they first launch the Note 1 phablet where Apple’s iPhone has been dominating the
market.
The teaser was very effective especially with the slogans “The Next Big Thing is Here”,
“Phone? Tablet?” among others with an image of the device and a stylus on the side got consumer’s
interest on the product launch. Other teasers with small liners like “Be Creative” and “Design your
life” actually gave consumers an idea of what the new product is all about. For people who are still
doubtful about the product, informative advertisements which give basic information about the
product will actually entice them more into purchasing the product. The persuasive ad like in the
example convinces consumers that they can get the product they were looking for from their stores.
Comparative ads helped consumers look at the very obvious difference of the product from the
competitor. Image advertisements on the other hand helps other consumers relate with the image
person used in the ads. Like in the given example where Mohammed Saeed Harib, an accredited
animator, creator and producer of Freej (animated cartoon series) in an image advertisement, it
actually conveys a message to consumers especially those that are into drawing, sketching or even
animations, that they can use Samsung Galaxy Note phablets for these kind of activities.
Sales Promotion

The sales promotions used on the products depend on the kind of distribution channel used
to make the product available to the target market. Since Samsung mobiles are products recognized
globally, the company uses a two-level distribution channel to move the product to the consumers.
Each of the channels has their own way of sales promotion to their consumers.
 Manufacturer
From the teaser advertisements next comes the product launch where there’s always product

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demonstration done to entice the consumers in purchasing the product.
It has been mentioned earlier as well that from Samsung manufacturer, they have their own
Samsung Singapore distributors to make the product available in the Singapore market. These
distributors contact the wholesalers and drops by their shops to show them the brochures about their
packages. These distributors’ offers loyalty programs such as price discounts for a number of
handsets ordered, free products like “Buy 20 handsets and get one for free”, premiums like mobile
accessories (mobile casing, sticker buttons and designs, screen protectors etc) and promotional
products like handing out products containing the product logo.
 Retailers
Various sales promotions are also being offered depending on the type of retailers.
Store-Based sellers

 Business Districts – these retailers normally offers promotional pricing or “on sale” pricing,
trade-in where customers can trade their own mobile phones to make it as part of the payment of
the phone they need to purchase, premiums or “give-away” like free mobile accessories and
Point-of-Purchase displays.
Image: Trade-In ads

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 Shopping Area
o Official Dealer Stores – these retailers offers promotional pricing or “on sale” pricing,
premiums like free downloadable apps and joins trade shows as well. Apart from that,
they also promote through social networks like Facebook where most markets are
exposed nowadays.

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Samsung also offers electronic coupons that consumers can use to get discounts on
the product upon purchase. Consumers will have to visit the Samsung shop online, avail the
code and click the link to purchase.

o Official Telco Dealer shops - these retailers offer mobile and network service plans
that consumers can pay recurrently, rebates upon sign up, free products, games
(scratch off cards) and give premiums as well. Consumers also have the option to
buy the device alone. Currently, they also offer trade-ins for mobile phones that were
previously purchased from their shop like Singtel. They also join trade shows like IT
shows, have online stores and promote products through social networks like
Facebook.

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Non-Store Sellers

Online Sellers of local or international handsets who sell used phones usually offer
additional premium items like micro sd card, free casing and earpiece along with the product their
selling to gain more value to the product.

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Effectiveness of Sales Promotion

 The product demonstrations on every product launch attracts demand of the product. It is very
important that all features and benefits of the product were highlighted from here. Most of the
time, they use known personalities to do this so as to generate traffic to a product launch.
 Point-of-purchase display promotions when placed in high traffic areas increase the possibility
that consumers will be notified that there’s a product promotion.
 Promotional Pricing or short term price reduction, rebates and trade-in will also target a lot of
consumers especially those who are practical and on tight budget.
 Free products and premium items given to consumers upon purchase catches consumer’s
attention to the product especially if the offered free or premium products are also in demand in
the market or are considered as an essential accessory to the product.
 Game promotions like scratch –off cards gets customer interest since these are given after a
purchase which lets the customers have the opportunity to win another product after purchasing
another product.
 Contests to win prized products encourage a lot of customers to join thinking they can win the
products even without paying for it.
 Loyalty programs are very important especially in maintaining a good business relationship.
 Trade Shows are events where consumers flock to buy devices on sale. It is where retailers get
traffic for their products.
Other Promotional tools used:
1. Personal Selling – basically all channels involved in product distribution makes use of personal
selling except Online sellers. From the wholesalers, product is being offered to them through
personal selling efforts of distributors. Wholesalers also do personal selling to the retailers and
the latter does the same to the final consumers.

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2. Marketing Public Relations

 Institution advertising –
Samsung Galaxy Note
awards
49

 General PR – Samsung
pushed PR campaign to
position the Note phablets as
a trendy handset over
iPhone’s dominance in the
market.
50

 Publicity – newspapers
(use events to promote
product)
51

49
“Best in digital advertising”. (2014). In T he Straits Times. Retrieved Aug 8, 2014, from http://www.straitstimes.com/the-big-story/dl-awards-
2014/story/best-digital-advertising-recognised-the-straits-times-digital-lif
50
PR campaign challenges iPhone’s dominance among consumers. (n.d.). In RAGAN’S PR Daily. Retrieved August 10, 2014, from
http://www.prdaily.com/awards/specialedition/115.aspx
51
“Samsung is hiding”. (2014). In Mail Online. Retrieved Aug 8, 2014, from http://www.dailymail.co.uk/sciencetech/article-2717034/Samsung-
hiding-inside-Oculus-Rift-Teardown-reveals-Galaxy-Note-3-inside-generation-virtual-reality-headset.html

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 Sponsorships
Samsung has been the official sponsor
of all the past eight Winter and Summer
Olympics.
In the image capture from video
here, David Beckham, Samsung’s Official
Ambassador for the London 2012
Olympic and Paralympic Games
demonstrates the unique features of the
Samsung Galaxy Note, showcases
Beckham’s incredible soccer skills as he
reproduces the melody of Beethoven’s
classic ‘Ode to Joy’ by kicking a series of soccer balls against a 15-foot wall of drums.
52

 Product placements – use
of product on-screen in a
movie or on programme.
FCU: Fact Checkers Unit is
based on a short film of the
same name turned to series that
follows the adventures of two
overzealous fact checkers –
Russel and Dylan, who uses
Samsung Galaxy Note to
gather factual evidence.
53

52
Peters, Mark. (2012). “David Beckham promotes Galaxy Note”. Retrieved Aug 3, 2014, from http://www.letsgodigital.org/en/33170/david-
beckham/
53
Walford, Lynn. (2012). “Samsung Galaxy Note FCUisodes - What's the Deal?”. Retrieved June 24, 2014, from
http://www.wirelessandmobilenews.com/2012/02/samsung-galaxy-note-ics.html

Page | 38

 Institutional advertising – ads to make favourably
known an organization behind the product
3. Direct Marketing
Telephone Marketing (Telemarketing) – the telemarketing
is done mostly by Telco Dealers who will call customers for
upgrade to Samsung products or services on some of the
product’s features like Samsung KNOX for enterprise users.
In-bound Marketing – most channels involved in the product distribution also creates means to
attract qualified prospect to their businesses. Nowadays, aside from the physical shop, they also put
up websites where customers can send inquiries, know their store locations and contact their hotline
or help chat services. They also have social media
accounts like Facebook, Twitter or Instagram for
these inquiries as well.
4. Direct Mail Marketing
Samsung allows consumers for direct
subscription to RSS Feeds through installing from
Samsung Galaxy apps.
Use of promotional tools suggestions
Business Districts retail shops focuses more
on in-store promotions where consumers will only get
to know about it if they physically visit the store. Consumers nowadays would normally check the
website for any reviews on good deals to purchase the product. I think it will be an effective
promotion if these stores will set up an In-bound marketing like a social network page where they
can attract customers by posting their sales promotions. These public posts can even be shared to
reach more customers. Consumers can have easy ways of bargaining their way on the products by
commenting on the posts or sending a private message.

Page | 39

The Marketing Mix – Price
Manufacturer
The good thing about Samsung is that they develop most of the important parts used to
create their mobile handsets – among are system chips, processors, RAM etc. TechInsights
Teardown did a pricing research on Samsung Galaxy Note 2 and Note 3 where result costing of
each device is less than US$240.
54

Image: T eardown pricing of Samsung Galaxy Note 2 and 3. (n.d.). teardown.com.
QUICK TURN TEARDOWN OF THE SAMSUNG GALAXY NOTE 3. Web. 05 Aug. 2014.

Mark up price on all distribution chains
According to Mr. Danny Ramchandani (the wholesale store manager I interviewed), the
pricing ranges from manufacturers to the final consumers would normally go as follows:
Note 2 Note 3 Remarks
SGD500 SGD710 before GST
7% 7% GST
SGD535 SGD759.7 OR SGD760 charged by manufacturer to wholesaler
SGD53.5 SGD76 10% additional price charged to retailer
SGD588.5 SGD836 charged to retailer
SGD58.85 SGD83.6 10% additional price charged to consumers
SGD647.35 - $700 SGD919.6 - SGD $980 charged to consumers

54
QUICK T URN T EARDOWN OF T HE SAMSUNG GALAXY NOT E 3. (n.d.). In teardown.com. Retrieved Aug 5, 2014, from
http://www.techinsights.com/samsung-galaxy-note-3/

Page | 40

Product Prices

Image: Samsung Galaxy Note 1 T elco price comparisons. Retrieved June 12, 2014, from http://www.sgphonedeals.com/blog/2011/11/23/price-
comparison-samsung-galaxy-note-singtel-starhub-m1/#

Page | 41

Page | 42

Competitor Prices

Equipment only

Equipment + Telco Postpaid plan

Page | 43

Page | 44

Note:
 All prices mentioned came from what were gathered in interviews and secondary research.
 Telco-Postpaid plan is a 2-year contract
 Additional charges for extra services along with the contract are not included from the prices
mentioned.
 Prices mentioned without currencies are all in SGD.
 The handsets compared are both phablets and iPhones released from 2013 because it’s this year
when companies started releasing phablets.
 The prices vary from new customers and re-contracts. Customers who chose to do trade-ins can
also pay prices at a lower price.
Pricing Analysis
 We can tell the big difference in prices from when the product was still in the manufacturer
down to the final consumers.
 Business Districts’ retail store prices are lower of up to SGD300 compared to official dealer
stores for all handsets.
 Upon asking why Business Districts retailers offer cheap prices, they said it’s because they
don’t pay too much (some say even say they don’t) GST that’s why they don’t put a high
mark-up price on the handsets.
 Note phablets costs higher than other phablets but are lower compared to iPhone handsets.
 Note 1 - The highest price you can pay is around SGD300 – SGD398 for a brand new phone
and the lowest you can pay is around SGD200 for a second hand phone.
 Note 2 - The highest price to pay is around SGD800 – SGD850 for a brand new handset in
official dealer stored and lowest is around SGD300 in Business Districts stores.
 Note 3 - The highest price to pay is around SGD860 – SGD900 and the lowest is around
SGD500 - SGD650 in Business Districts sellers and online sellers.

Page | 45

 For mobile phones with Telco service plans, Starhub offers the cheapest plan a consumer
can get for a 2 year contract. Plans from all Telco services offer the same plan value and
almost the same added services.
 Of all the handsets compared, Sony Xperia T2 Ultra is the cheapest handset. Samsung
Galaxy Note 3 plays either second or third which is just a fair pricing. The phablets are sold
at the same price regardless of the amount of storage it can offer unlike iPhones where
prices differ depending on the storage size.
 All of the handsets from Telco services offer the same Premium plan prices.
Pricing Strategies

 All chains use Market Skimming pricing strategy especially on a new released handset.
Samsung Galaxy Note phablets are electronic gadgets which are very innovative hence the
high initial price.
 All chains except Online Sellers also practices Product Line pricing since these retailers
does not focus in selling only one kind of handsets. In the case of the Note phablets, most of
them will most likely sell the Note series – 1, 2 and 3. Prices will vary depending on the
release dates of the handset series.
 Product bundle in the case where aside from the handset, additional mobile accessories are
also being offered for a discount price. With Telco Dealer shops, consumers will have the
opportunity to pay less recurring fee to avail the phone upon purchasing a service/data plan
along with the handset. Official dealer stores like those inside the shopping mall area only

Page | 46

offers the fix price which consumers can’t have the option to bargain unless they’re having a
promotion.
 Promotional pricing are seasonal which is practiced by most chains except Official Telco
dealers who offers the same service plan pricing even though handset charges varies
depending on demand and the Online sellers who of course will sell their used handset one
time so no need to set a promotional pricing.
 All chains practices Psychological pricing. Most of the time, they use odd pricing to make
the product appears cheaper when in fact if you round off the price, it’s like the same as
other chains.
 Optional-product pricing in cases where the buyers will have an option to obtain an
accessory of the product for a price. This is normally offered by Wholesalers and Business
Districts retailers. Telco Shops however offers extra services like Smart Support.
Pricing Suggestions
Official dealer stores should also use a product bundle or an optional product pricing
strategy. Most consumers have confidence in buying handsets from these stores but the high prices
has always been the consideration especially of consumers who are low budget or doesn’t want to
spend more. Consumers mostly buy mobile accessories along with the handset and I believe if they
will do this pricing strategy, they can actually attract more customers and gain more profit as well.
The Marketing Mix – Place
Distribution Channel

Samsung uses a Two-level distribution channel, however, from the manufacturer; it uses a
distributor to distribute the products to the wholesaler partners. Wholesalers then provide products
to the retailers and consumers in turn purchase products from retailers.

Page | 47

Since the phablets are being manufactured overseas, the distributors make the product easily
available to the wholesalers depending on which country the distributor branch is located. This
makes it easier for wholesalers to obtain the products instead of ordering overseas. Retailers on the
other hand order the product from wholesalers. This is very convenient for them since these
phablets are very expensive, some retailers especially the small ones will only have small orders
ranging from around 3-10. So it’s only good that these wholesalers exist to take their small orders.
Consumers on the other hand mostly purchase the product for themselves so the best place to get
the handset is from retailers.
Retailers in the Distribution Channel
Location, layout, ambience and accessibility
The retailers involved:
 Provide limited services as some sales assistance are being offered to customers like inquiry,
purchasing and even delivery but other retailers don’t.
 Are all specialty stores which carry an electronic product line but different assortment like
brands and electronic product type (mobiles, camera, laptops).
Retailers:
1. Store-Based sellers – where consumers physically visit the retail outlets to obtain the product.

Page | 48

A. Business Districts
Location: downtown or central business districts, commercial street, major cities intersection
and rely on traffic of downtown
Example: Stalls in Interchange
Layout: some are small stores made up of glass shelves where handsets are displayed to be
easily seen by customers. These glass shelves are also where the staff entertains their customers.
Ambience: customers may have uneasy feeling of purchasing the product because of these
stores’ bad reputation. Customers can bargain their way to buy the product.
They are effective in distributing the product to consumers who have limited budget, and
doesn’t care too much on the psychological benefit of purchasing the product in such place.
Examples: mobile retail stores found along interchange, Sim Lim Square and Mustafa.

Image: Lim, Jessica. (2013). In T he Strait T imes. Stand Alone shop in Sim Lim Square. Web. 09 Aug. 2014.
55

B. Shopping Area – are specialty stores in a shopping district that offer limited services or
assistance to consumers.
i. Official Dealer Stores
Location: in the shopping malls and caters to selling electronic devices without service plan

55
Lim, Jessica. (2013). Errant shops finding ways to mask reputation. Retrieved Aug 9, 2014, from
http://www.straitstimes.com/breaking-news/singapore/story/errant-shops-finding-ways-mask-reputation-20130828

Page | 49

Layout: The stores have different product lines with sales staff assigned on each of the sections.
Mom-and-Pop retail formats. They are small, individually owned and operated.
Ambience: Products sold are expensive than Business Districts retail stores but consumers
doesn’t mind because these stores have very good reputation and consumers have confidence in
the products they can obtain from them. Shops can be packed with people especially on
weekends and during sale promotions.
These are effective in distributing product to consumers who wants to purchase a handset
without signing up for a postpaid service.
Examples: Courts, Samsung Shops, Planet Telecoms

ii. Official Telco Dealer shops - offers network service plans along with the mobile
devices.
Location: in the shopping malls or business districts
Layout: bigger stores that normally have a customer service corner in front where people
normally queue, handset display corner, lounges and cashier.
Ambience: shops have good reputation on product quality so customers feel comfortable in
buying the product. Shops can be packed with people especially on weekends.
Examples: Singtel, Starhub, M1

Page | 50

It distributes the products effectively on consumers who want to purchase the handsets along
with a network service plan.

2. Non-Store Sellers (Online Sellers) – consumers can purchase the product (local and
international) without the need to physically visit the stores through the internet. These are
effective for users who find convenience in purchasing the product anytime and anywhere while
on the go.
Location: online shopping websites
Layout: website has useful links to assist the customers on their online shopping experience

Page | 51

Ambience: Internet savvy users may feel confident about buying products from here, however,
they might feel hesitant because it’s too risky especially with what to expect from the quality of
the product. It’s effective in distributing the products to consumers who prefers ordering
handsets from overseas online thinking that it’s cheaper compared to purchasing the handsets
locally instead.
Example: eBay, Gumtree, STCLASSIFIEDS
Suggestions
Samsung is a globally recognized product and I think it had hit all channels in moving the
products to the consumers. However, with the recent technology nowadays, I suggest that all
channels should put up a website or if they can’t afford, they can create social network pages to
gather more customers, provide better customer support and inquiry and even gather feedback to
further improve their service.
For Official Telco shops, I have experienced queuing outside for so long and the line can
actually extend outside the shop across the mall. These shops are always full especially on
weekends where time is wasted just by waiting for your turn. I think they should create an online
booking system so customers will only arrive in the shop on the reserved schedule. I have checked
their online shops as well and I noticed a difference with the layout but I find M1 having the most
organized interface. Other online stores have confusing links and search bars which I think they
should improve and organize the same way as M1 does.

Page | 52

ANNEX A - Interview with Wholesaler
Store: Lucky Store – Holland Village
Store Manager: Mr. Danny Ramchandani
Products carried: Specialty merchandise in electronic devices (mobile, computer, home
entertainment and appliances)
Service level: Limited service (basic services like shipping and credit purchasing)
From Manufacturers / Distributors
1. How Samsung manufacturer / distributor do sell their products to you?
The distributors visit our stores and provide us brochures of their Samsung handset packages.
2. What is your channel arrangement with the Samsung manufacturer / distributor?
Independent. We have a basic contract that we are one of their official wholesalers for the product
but are not required to purchase a quota of the product.
3. What other services do they offer you aside from the packages?
They have promotions, complementary products such as posters, mobile casing, and screen
protectors and seminars about the product as well.
4. Do distributors offer below augmented products?
Guarantee – normally they give 7 days to exchange a defective handset (when opened)
Warranty – the handset box itself has a 1 year warranty receipt
Customer service – they deliver the products and offer seminars as well
Complementary products – at times will give us free mobile accessories such as casing, posters and
screen protectors

Page | 53

5. What are your terms to distributors with:
Delivery – prices are fixed. Items are delivered depending on availability of stocks and agreed
schedule.
Profit Margin – normally we are allowed to add 10% mark-up price from what they’re charging us
Other Incentives (bonus, free trips) – not really, anything extra is on the product itself
Packaging – We ask our distributors to pack the products in boxes that will fit our storage. They
don’t add tags like RFID to track how items are sold since were independent from them. And as
soon as we purchased the products, we are entitled to sell them at our own phase.
Training – They only offer seminars about the product
Promotional help – None. We cater for our own advertisements but they provide promotional tools.
6. What is the payment term you have with the distributors?
We can pay either cash or credit. Normally, they give us 14 days to pay.
7. Did the distributor check any qualifications of your store before they agreed to make you one of
their official wholesalers?
Yes. Normally they check on the store’s age of business (preferably establish growth), history,
financial condition (credit rating, income growth and cash flow) reputation and number of outlets.
8. Have you tried ordering to a different distributor?
Yes if the one we usually order have no stocks. Sometimes we also order from other wholesalers.
This is okay since we don’t have any exclusivity in our contract.
9. How do you decide in ordering products?
We do market research and base it from the order of our retailers.

Page | 54

10. The type of handsets your selling:
Warranty handsets (has a guarantee from the distributor to return the product if damaged when
opened)
Don’t sell export handsets (handset with no warranty)
11. Do you have any idea where the export phone came from?
Yes. These phones are bought from other countries and sold here. That’s why it doesn’t have a
warranty.
12. Do you have any idea how much export phones are being sold?
Normally, it’s $30 - $40 off the normal retail price.
13. Do you have other store branches? Where?
Yes. Katong, Transit Road, High Street Centre
14. Has it happened that they contact your retailers directly?
No idea but I don’t think so. Because distributors are normally targeting wholesalers for the volume
of sales and retailers only order small amounts of handsets.
To Retailers:
15. How do you transact business with your retailers?
Normally they either walk in the store or they just call us and order the handsets.
16. Do you have any quota with the number of orders?
None. They can order any amount of handsets they like.
17. What is your channel arrangement with the retailers?

Page | 55

They’re on an independent contract. Free, no binding, they can order from others as well.
18. Do you offer below augmented products to retailers?
Guarantee – normally we give 7 days to exchange a defective handset (when opened)
Warranty – the handset box itself has a 1 year warranty receipt
Customer service – they deliver the products and offer seminars as well
Complementary products – we do give free mobile accessories such as casing, posters and screen
protectors if they order a lot of handsets (Ex. 10 handsets) Sometimes we give discounts too.
19. What are your terms to retailers with:
Delivery –Items are delivered depending on availability of stocks and agreed schedule. They can
either pick up from our outlet stores or we can deliver the items to their store. We charge $10 one
delivery regardless of the amount of handsets.
Profit Margin – we just sell them to retailers. It’s up to them how much they’ll like to sell them
Other Incentives (bonus, free trips) – not really, anything extra is on the product itself
Packaging – they orders in small quantities so packaging is not an issue
Training – none
Promotional help – None. We cater for our own advertisements but we can provide promotional
tools.
20. What is the payment term you have with the retailers?
For new retailer partners, we only allow cash on hand basis. For old and trusted retailer, normally
we let them pay us for as long as 14 days.
21. Do you check any qualifications of your store before selling them the handsets?

Page | 56

Sometimes, but not really. Since if it’s a new retailer then we only ask for cash on hand.
22. Is your location convenient for your resellers? (If they buy the products in-store)
Yes. We have all 4 branches around Singapore and so far our retailers don’t have walk-in issues.
23. Do you have any issues in transporting the products to your resellers?
None. If we can’t deliver on our own, we sent a courier especially if it’s urgently needed.
24. If you’re responsible to deliver the products to your resellers, do you:
__yes__ship __yes__deliver in person __yes__courier
25. If the product is not delivered on hand, what do you use to track the items?
None. We don’t track our purchased mobiles.
26. If you don’t have any non-product assistance (promotional support, teach selling skills, online
store) currently, do you plan to have one soon? If yes, what is it?
Yes. We’re now redesigning our website for it.
27. As a wholesaler, do you count on the retailer to place regular orders and to make on-time
payments?
None with the number of orders, but with payments, they need to give it as soon as possible.
28. Are there instances that you deal directly with customers?
Yes, in our retail store branches.
29. Handset Pricing: (We don’t order Note 1 anymore as they are considered obsolete)

30. Pricing Strategy:
Market Skimming, Product Line, Product Bundle, Promotional, Psychological and Optional-
product.

Page | 57

ANNEX B - Interview with Retailers
1. What are your prices for:

2. Do you offer below process adjustments?

Samsung Galaxy Note Series - Phablet

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