Strategy Of Samsung Pricing Strategy

995 Words2 Pages

Branding Strategies Samsung utilizes many branding strategies in order to expand its global brand image and recognition. The first expansion of Samsung’s brand image was started in 1993. Samsung Electronics changes its logo from its basic black bold letters spelling Samsung to a white Samsung word on a blue background. The blue background was designed in the shape of an elliptical because it gives the impression of modernization and is futuristic. The idea of updating the logo was definitely a success because it have the Samsung logo a vibrant look that is more aesthetically pleasing. Samsung’s branding efforts have definitely paid dividends because the brand is world class and is one of the top brands in terms of recognition. …show more content…

In the mobile phone market Samsung faces stiff competition from companies such as Apple, HTC and Microsoft etc. As a means of combatting this market saturation and competition, Samsung employs a mix of different marketing strategies. The pricing strategies utilized by Samsung are as follows:
• Competitive Pricing- As a means of gaining a competitive edge Samsung deploys a competitive pricing strategy. For most of its products except high end smartphone Samsung uses a competitive pricing strategy. Products such as televisions, refrigerators, air conditions and lower end smartphones have stiff competition from other companies such as LG, Panasonic and HTC etc. Samsung has great brand recognition for home appliances but nit greater than LG. As a matter of fact LG is actually above Samsung in the home appliance category. This trend is similar for Whirlpool with washing machines and Cannon with Cameras. Therefore it is evident that Samsung are nit the market leaders in numerous products the make so they must have a competitive pricing in order to gain customers form their competitors. Samsung hardly utilized penetrative pricing because it does have a well-recognized brand. However, its prices will be completive or slightly better than its competitors in categories that it does not have competitive advantage. …show more content…

The price skimming strategy is used as a means of competing with Apple who is its harshest rival. Samsung is able to use price skimming in the smart phone market because of the fact that it always has a product that has the latest and greatest technological features so people are willing to pay a premium for these mobile devices. So Samsung employs the price skimming strategy by charging a high price for its mobile devices before competitors are able to catch up. One competitors catch up Samsung will have another device that is of a higher quality that it can utilize with price skimming. For example currently Samsung has the Galaxy S7 and S7 Edge as its top handsets and they are extremely popular among consumers despite their premium price

More about Strategy Of Samsung Pricing Strategy

Open Document