Consumer Behaviour Of Apple Iphone4 Users Vs Samsung Marketing Essay

Samsung started off in the twelvemonth 1938 by Byung-ChullA Lee as a little company that started their exportation concern in Korea They had exporting of fish, veggies and fruit to China. It was n’t long earlier Samsung made their presence in flour Millss every bit good as confectionary machines. After many old ages of endeavoring there company decided for as a cooperation company in the twelvemonth 1951. It was so they quickly grew puting pes in assorted diversified concerns from heavy, chemical and petrochemical industries in 1958 which so led them to come in into Electronicss in 1969. Samsung has now transformed into a one of the Leader ‘s today in the Digital Electronics industry. They have Headquarter in the Samsung Town a town in Seoul, South Korea.

Samsung had majorly influenced in the South Korean market and effected the assorted sectors i.e from economic growing, political relations, media every bit good as the civilization. Samsung is responsible for about 20 % of South Korea ‘s exports and grosss. They have grabbed a kind of monopoly topographic point in the South Korean companies. Samsung has set a benchmark in international concerns today and is considered as a function theoretical account.

Apple Inc. was formed in the twelvemonth 1976 by Steve Jobs, Ronald Wayne and Steve Wozniak. They began concern selling computing machines, Apple I personal computing machine kit. Apple is an American based company that has focussed there full concern in the designing, fabrication and selling assorted electronic devices, computing machine package and personal computing machines. There central office is in a suburbanA metropolis called Cupertino located in California.

The company deals in the Macintosh line of computing machines which are the initial successful hardware merchandises, the iPod, iPhone, iPad. Apple runing system the Mac OS X runing system ; the iTunes media browser ; iLife is the suite required for multimedia and creativeness package. Apple late considered as one of the premier company in position of market capitalisation, and the taking company in footings of engineering in the universe. Apple was stated as the admired company that was published by Fortune magazine 2011.

The province of the art design and invention in characteristics was what made Apple to make highs even without much of investings into advertizements, Apple had achieved a top solo class in the consumer electronics industry which wholly boosted its trade name image to heights ne’er attained by any other.. This gained them a devoted client base that are die bosom Apple trade name, particularly in the USA.

Product Overview

A

Samsung Galaxy S2

Apple iPhone 4S

Size

Dimensions

125.3 ten 66.1 ten 8.5 millimeter

115.2 ten 58.6 ten 9.3 millimeter

Weight

116 g

140 g

Display

Type

Super AMOLED Plus capacitive touch screen, 16M colourss

LED-backlit IPS TFT, capacitive touch screen, 16M colourss

Size

480 ten 800 pels, 4.3 inches ( ~217 ppi pel denseness )

640 ten 960 pels, 3.5 inches ( ~330 ppi pel denseness )

A

– Gorilla Glass show

– Scratch-resistant oleophobic surface

– TouchWiz UI v4.0

– Multi-touch input method

– Multi-touch input method

– Accelerometer detector for auto-rotate

– Accelerometer detector for UI auto-rotate

– Three-axis gyro detector

– Touch-sensitive controls

– Proximity detector for car turn-off

– Proximity detector for car turn-off

A

– Gyroscope detector

A

A

Internal

16GB/32GB storage, 1 GB RAM

16/32/64 GB storage, 512 MB RAM

Card slot

microSD, up to 32GB, 8 GB included, A buy memory

No

Camera

Primary

8 MP, 3264×2448 pels, autofocus, LED flash

8 MP, 3264×2448 pels, autofocus, LED flash

Features

Geo-tagging, touch focal point, face and smile sensing, image stabilisation

Touch focal point, geo-tagging, face sensing, HDR

Video

Yes, 1080p @ 30fps

Yes, 1080p @ 30fps, LED picture visible radiation, picture stabilisation, geo-tagging

Secondary

Yes, 2 Military policeman

Yes, VGA

Features

Os

Android OS, v2.3 ( Gingerbread ) , planned ascent to v4.0

Io 5

Chipset

Exynos

Apple A5

Central processing unit

Dual-core 1.2 GHz Cortex-A9

Dual-core 1 GHz Cortex-A9

GPU

Mali-400MP

PowerVR SGX543MP2

Radio

Stereo FM wireless with RDS

No

Global positioning system

Yes, with A-GPS support

Yes, with A-GPS support and GLONASS

Java

Yes, via Java MIDP copycat

No

A

– Active agent noise cancellation with dedicated mic

– MicroSIM card support merely

– NFC support ( optional )

– Scratch-resistant glass back panel

– TV-out ( via MHL A/V nexus )

– Active agent noise cancellation with dedicated mic

– Tin integrating

– Siri natural linguistic communication bids and command

– Digital compass

– iCloud cloud service

Battery

A

Standard battery, Li-Ion 1650 mAh

Standard battery, Li-Po 1432 mAh

Stand-by

Up to 710 H ( 2G ) / Up to 610 H ( 3G )

Up to 200 H ( 2G ) / Up to 200 H ( 3G )

Talk clip

Up to 18 H 20 min ( 2G ) / Up to 8 H 40 min ( 3G )

Up to 14 H ( 2G ) / Up to 8 H ( 3G )

Market and Competitor Analysis

During Q2 of 2011 they had gross revenues of 428.7 million units in the international gross revenues of nomadic devices to stop users. A direct 16.5 per centum addition from the 2nd one-fourth of the old twelvemonth 2010 harmonizing to Gartner Inc. as shown in Table 1.1. Smartphones gross revenues were up 74 percent year-on-year and accounted for 25 per centum of overall gross revenues in the 2nd one-fourth of 2011, up from 17 per centum in the 2nd one-fourth of 2010.

Table 1.1

Seller

2Q11

2Q11 Market Share ( % )

2Q10

2Q10 Market Share ( % )

Unit of measurements

( in 000 ” s )

Unit of measurements

( in 000 ” s )

Nokia

97,869.30

22.8

1,11,473.70

30.3

Samsung

69,827.60

16.3

65,328.20

17.8

LG

24,420.80

5.7

29,366.70

8

Apple

19,628.80

4.6

8,743.00

2.4

ZTE

13,070.20

3

6,730.60

1.8

Research In Gesture

12,652.30

3

11,628.80

3.2

HTC

11,016.10

2.6

5,908.80

1.6

Motorola

10,221.40

2.4

9,109.40

2.5

Huawei Device

9,026.10

2.1

5,276.40

1.4

Sony Ericsson

7,266.50

1.7

11,008.50

3

Others

1,53,662.10

35.8

1,03,412.60

28.1

Entire

4,28,661.20

100

3,67,986.70

100

Consumers in developed markets are purchases midrange Android smartphones over characteristic phones, chiefly seen due to bearers and makers ‘ publicities. 1 ( Gatner )

Since we are concentrating on the smart-phone section, we have considered companies such as Nokia, Samsung, Apple & A ; RIM.

Nokia is still leads in market portion in the overall industry. But we can see that in smartphone section the gross revenues is low due to the extremely competitory market that reduced the client demand towards Symbian.

Samsung, attained a rapid growing in the Smartphone section during the recent old ages. Galaxy-S2 sold about about 10milion units by terminal of November. The strong public presentation in smartphones helped in accomplishing a good crunch of market portion to go the 3rd best seller in this section.

Apple, iphone 4S received a overpowering response from the consumers as it had 4 million pre- orders. The growing chiefly came from 42 new bearers and 15 New states in Q2 2011. Entire Apple gross revenues coverage is in around 100 states.

RIM, market portion in smart phone declined by 12 % by Q2 2011. It had lost its place No.5 in the international nomadic device to a Chinese seller called ZTE.

Among all the smart-phone sections our major focal point is between iphone ( 4/4S ) and Samsung Galaxy S2. From the below tabular array of SWOT analysis it is seen that both have a menace of intense competition and extremely developed market. Apple iphone ( 4/4S ) is holding a advantage of first mover. Samsung Galaxy S2 is considered to be a price-value merchandise which is its major strength but lacks the Brand value in comparing to the Apple iphone.

Samsung Galaxy S2

Strengths

Price-value merchandise

Good Distribution channels

Assortment in Product Line for all sections

4G is available in S2

Rich User Interface

Wide Screen, Gorilla glass

Failing

Looks non impressive

Lacks Brand value

Opportunities

Google Support

Independent Hardware Unit

New position symbol

Menaces

Intense competition

Highly Developed Market

Apple iphone 4

Strengths

First Mover

Style/ Brand

Rich User Interface

User Base

Ballyhoo

Opportunities

Existing Applications

Loyal client base

Distribute itune content

Siri

Market Positioning

Apple has already established a topographic point in the heads of the people that it is a really high value merchandise and is portrayed as a mark of flawlessness. Apple iphone rapidly jumped the starting stage and straight off went to growing by their rise gross revenues, turning figure of rivals and strong consciousness. This is made possible merely by understanding the unfulfilled demands, design and ability to run with any computing machine operating system. After the launch of iphone a new epoch of touch was created that made the other rivals to establish similar sort of merchandise in this section. Samsung being one of the major participant introduced Corby which became a hit among the value consumers, and so in order to derive market portion of the high terminal consumers they launched the Galaxy series.

Targeting the females Samsung had launched Galaxy S2 in Pink coloring material which besides gained a batch of new clients for them.

In Q2 & A ; Q3 Apple had a sale of 38million worldwide whereas so Samsung had a sale of 10 million in the same quarters.

Company Focussed

Competition Focussed

Pushs the Boundaries

Leader: Apple

Rival: Samsung

Corsets within the Boundaries

Niche: Lava/Spice

Follower: LG/Motorola/HTC

Apple:

Prelaunch Strategy

Public Relations

Web logs

Sneak Peak on R & A ; D info

Buzz & A ; Viral selling

Launch Strategy

Print Media

Television

Outdoor Media

Social Media

Apple.com

Post Launch Strategy

Carrier handled advertizement

Apple.com

Independent reappraisal web sites

Digital Campaigns

Samsung besides have push & A ; pull scheme for the merchandise launches and publicity of the merchandises. Compare to Apple, Samsung creates bombilation among the consumers by showcasing their merchandises in trade shows & A ; exhibitions. Samsung besides launches the teaser picture and print media information to advance the merchandise before the launch. In Dubai there are no streamers or print media advertizements for Apple, nevertheless there are many streamers available for Galaxy S2 at different topographic points. Samsung have many functionary You Tube channels for the different geographic locations. To vie with Apple in USA Samsung launched an official signup page for Galaxy S2 where possible purchasers can login to understand the assorted characteristics of the phone and confab with the official client support Centre. As a rival scheme Samsung is into aggressive advertizement against the Apple with series of new advertizement particularly for US market in which they have shown the new engineering invention of 4G which is presently non supported by any iPhone.

For Samsung:

Prelaunch Strategy

Public Relations

Exhibitions & A ; Trade shows

Teaser Videos

Print Media

You Tube Videos

Launch Strategy

Print Media

You Tube Videos

Intense Television Ad

Outdoor Media

Social Media

Samsung.com

Post Launch Strategy

Banners

Promoters

Dealer Advertisements & A ; Offers

Independent reappraisal web sites

Trade shows/Exhibitions

Pricing Scheme

iPhone is available in three different versions of Phone memory: 16GB, 32GB, 64GB whereas Samsung is merely available in 16GB merely. Both are available in Locked and unbarred versions. Locked versions are usually available in 2years contract in USA ( ATt & A ; T ) , UAE ( Etisalat & A ; du ) , India ( Airtel & A ; Aircel ) .

The below tabular array gives the pricing of the two smart-phone giants in three different parts:

In footings of pricing Apple has come up with many following schemes:

To make out to the Maximum consumers they have launched locked and unbarred versions with important monetary value differences in some states.

Their pricing differs depending on state to state & A ; in Asiatic states they have positioned as a Luxury merchandise.

Monetary values are higher than their rivals because of people perceive them as the province of the art engineering.

Apple has fixed pricing scheme, alterations in pricing occurs merely when a newer version of the merchandise is launched.

In footings of pricing Samsung has come up with many following schemes:

To make out to the Maximum consumers they have launched locked and unbarred versions with important monetary value differences in some states.

Samsung provides a normal pricing construction irrespective of the geographical location.

Samsung maintains monetary values at a competitory monetary value with their rivals.

Samsung is now bit by bit cut downing monetary values in order to maximise gross revenues and pull new clients to better their market incursion.

Consumer Behaviour

Methodology

We have conducted the consumer behavior study by bordering a questionnaire and distributed it to the users of iPhone & A ; Samsung Galaxy S2 in DIAC ( Dubai International Academic metropolis ) . We have considered a sample size of 40 constituting of 20 Samsung Galaxy S2 users and 20 Apple iPhone 4 users ( as iPhone 4S has non been officially launched in Dubai yet ) . With the feedback we have received through our study we are carry oning our statistical analysis and the consequences are as given below:

The two chief aims of this study was to understand the determination procedure of the consumer before buying the phone. The 2nd aim is to mensurate the degree of consumer satisfaction among the two smartphone users.

Merchandise Attributes act uponing the determination devising in purchasing the phone:

The three BASIC attributes which came as an of import factor after analysing the informations are Brand value, Performance & A ; Features/Specifications.

Brand Value is really of import among the consumers of both Galaxy S2 & A ; iPhone4. It has been seen in our study 59 % were Apple users who got more influenced by Apple Brand to buy their phone compared to Samsung that is 41 % .

Performance is an highly of import factor for both iPhone every bit good as Galaxy users. As shown in the piechart the S2 users were more influenced by public presentation of the phone as this one of the property that led them to prefer Samsung smartphones to the iPhone.

Features/Specifications is an highly of import influential factor for buying phone for the users of iPhone and Galaxy S2. For Galaxy S2 it is inferred that 54 % users were influenced by this to buy the phone compared to iPhone which is merely 46 % .

Medium of Properties that led to this determination:

This is to understand the assorted medium which has played a of import function to ease the determination procedure. In both Samsung Galaxy S2 and iPhone4 word of oral cavity and advertisement played a important function where as industrial publications and trade show events were non that impactful.

As seen in the pie chart Samsung has 64 % and iPhone 4 has merely 36 % . Bing a rival Galaxy S2 and shown above holding high influence for its public presentation and specifications word of oral cavity has become an of import factor.

Samsung has been more influential with its advertizements compared to Apple as seen in the chart towards the left. They used Teaser pictures and was more aggressive in their Ad scheme for Galaxy S2.

Inferences of the merchandise through Ads:

There were certain properties shown in the Ad for the two merchandises. After watching the Ads consumers had perceived that these properties, Product is of High Quality, Brand Awareness, Were the Claims made credible are of import than other properties.

Inspite of the aggressive advertizements scheme that Samsung had shown, Apple still managed to portray their merchandise as a High Quality merchandise from really few of their official advertizements.

As we have seen the Brand value is a high influential factor while buying iPhone. This must hold been generated through trade name consciousness in which advertizement is one of the factors.

As we have seen from the Unique merchandising proposition, Apple had ever shown advertizements emphasizing more upon their Applications. This claim made by them is more credible, as seen from the pie chart.

Customers who relied on Internet Research for their Decision of their Telephone

It is seen from the people we surveyed that there are high figure of people who use Internet to understand the overall specifications of the phone. From this we can deduce that Internet is a major factor for doing their determination for the merchandise.

From the consequences we derived it ‘s been seen that Review websites played a major function in the clients who bought Samsung Galaxy S2 whereas You Tube and Company websites were most influenced in the purchasing procedure of iPhone4 users.

It ‘s rather clear from the chart that most of these two smartphone users have experienced the phone prior to purchase.

From the saloon chart we interpret that the highest figure of people utilizing the Samsung Galaxy S2 got inspired by utilizing their friends phone which led them to the purchase of the same. However, in the instance of iPhone both friend ‘s phone and company salesroom both play a critical function. As the major traders like Sharaf DG and Jumbo they have a sole subdivision for iPhone.

It ‘s clear from the saloon charts that bulk of iPhone users are all Die-Heart fans whereas Galaxy S2 users are all Inspired users who experienced the phone and so decided to hold it. In this we can see that Apple has a strong Brand Loyal client Base.

Now we arrived to the concluding stage of our study where we measure the client satisfaction station purchase of the Telephone

From the Survey we inferred that bulk of the users in both the trade name smartphones are very` satisfied and holding that the phone is fun and easy to utilize. However, the iPhone4 had a higher count in the figure of people who found it more fun and easy.

We inferred from the pie chart that bulk of the users of Galaxy S2 every bit good as iPhone4 were Very satisfied about the Quality made of the phone. However, the iPhone4 had a higher count in the figure of people who had said has a better quality brand of the instance.

The bulk of consumers were really satisfied with the characteristics which were accommodating at that place need in both the smart phone as we can see from the graph. However, the Galaxy S2 had a higher count in the figure of people who had the sentiment that it suited their demands.

The cyberspace experience is holding more satisfied consumer for iphone comparison to Samsung galaxy S2. Nonetheless bulk of the nomadic users were really satisfied about their Internet entree experience.

When it comes to application bulk of the two phone users were really satisfied with what their phone provided them. But so when we compare between the two phones we see that iPhone4 had more figure of people who were really satisfied with their on-line Application shop as they have an app for about anything.

Both the phone users had bulk users who were “ really satisfied ” with the exposure and picture clarity their phone had, but comparing between the two phones its seen in the piechart, iPhone has more really satisfied clients in regard to Photo and camera lucidity.

Sound Performance was ranked “ really satisfied ” for both the phone user in bulk, Galaxy S2 has more “ really satisfied ” clients compared to iPhone4 as we can see from the pie chart.

Clearly from the saloon chart its seeable that iPhone users are non happy with the Battery Backup the phone provides, whereas for Galaxy S2 its holding an uneven distribution so what we understand is the phone gives different battery backup depending on the intent of what the user does the most.

SWOT Analysis on footing of Consumer Behaviour Survey

On the footing of our consumer behavior study we have redefined our SWOT Analysis

Apple iPhone 4

Strengths

First Mover

Brand of High Quality & A ; Awareness

Loyal User Base

Photo & A ; Video Clarity

Application shop Use

Internet Access Experience

Failing

Limited Distribution channels

Less Advertisement

Less Word of Mouth

Opportunities

Existing Applications

Loyal client base

Menaces

Gorilla Attack

Intense competition

Highly Developed Market

Samsung Galaxy S2

Strengths

Feature/Specification

Performance

Good Distribution channels

Sound Performance

Suiting Customer Needs

Battery Backup Satisfaction

Opportunities

Word of Mouth

Ad

Recommendations

For Samsung

Samsung should concentrate on trade name edifice schemes.

Samsung should tactically be after and rectify, to make a feeling among the clients that Galaxy S2 is a dependable merchandise of high quality.

That company needs to concentrate on to act upon people to choose their merchandise in the approaching hereafter through cyberspace and societal media.

For Apple

Apple should concentrate more on advertizements.

Apple should do their merchandise available by opening more company shops.

Apple should concentrate on the merchandise handiness on the planetary graduated table after the merchandise launch.

Decision

It is seen from our surveies that this industry is holding a strong competitory scenario and technologically advanced section. Due to its high aggressive nature there is a changeless alteration in the invention of the merchandises within less span of clip.

In both the merchandise Galaxy S2 & A ; iPhone4 holding an border over each other in some or the other properties for e.g. Apple is known for its trade name value where as Samsung is known for its public presentation. Samsung being a rival is more aggressive towards its selling scheme and in recent times they have started Gorilla onslaughts particularly in American & A ; European Markets. Compare to Apple Samsung have broad scope of distribution across worldwide which is their major strength. The major strength for Apple is its big loyal client base without any effectual selling they are able to keep it.

There is a belief that the rival may shortly will go the leader in this section but as we have seen in past that Apple has ever brought invention in their merchandise and with this they have gain first mover advantage and able to capture high market portion. So in future we believe that there will be a ferocious competition in the smart phone section non merely between these two companies but with other companies coming in the image to derive important market portion.