Samsung 4K SHUD Analysis and Research

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Samsung4K SHUD Analysis and Research


TheProposed Product: The Samsung 4 K SUHD TV

TheSamsung 4K SUHD TV is a fifth generation Smart TV products designedand produced by Samsung. Samsung 4K SUHD TVs are produced under theKS- product line, which have highly refined features designed toenhance the quality and experience of its customers. The 4K SUHD TVmodels are between 54 to 65 inches in size, are run by the highlysophisticated Tizen OS, a smart hub, web browsers, and other socialnetworking applications. The current version of 4K SUHD TVs are knownfor their sheer quality of contrast, black levels, and colorsaturation. Consequently, the depth of clarity in the new series of4K SUHD TV products is one of the defining features of Samsung’sUltra Clear Panel technologies. More information about thespecifications, qualities, and reviews on the 4K SUHD TVs can befound at

Thechoice of this product is underline by the fact that the electronicindustry and particularly the TV market is one of the most saturatedyet competitive markets in the world. With the rapid technologicaladvancements, it is interesting to observe how companies willcontinue to reorganize themselves by combining a number of factors totarget, position, and capture market attention (Ojalvo,2010).Being one of the latest inventions from Samsung, the 4K SUHD TVsprovides one of the best opportunities to study how the company hascontinued to use innovation, technological advancements, and itsmarket influence to market its products. While 4K SUHD TVs offersquality, it is faced by stiff competition from complementary andsimilar products from other manufacture such as LG. Studying themarketing trends of 4K SUHD TVs will therefore be important inunderstanding how strategic marketing influences targeting, productpositioning, and ultimately Samsung’s market share.



Theglobal market for LCD TV has continued to grow over the last fewdecades. A 2016 report by the indicated the 216million sets of smart TVs were shipped across the globe between 2015and 2016. Unfortunately, this was a slight decline from the 2013-2014 statistics. Researchers have estimated that consumer consumptionof smart TV will continued to be weak. Despite the decline, smart TVwith large size screen experienced an increase in shipment from 18.3%to 19.7 % in 2016, it is anticipated that the consumption of UHDs andSUHDs will reach 22% of the total Smart TV consumption data acrossthe globe. Of particular interest in this case is the consumption of4K TVs. Studies have shown the 4K TVs consumption will increase fromthe 2014-2015 14% to 23% in 2016.

Therivalry between OLED panes and curved 4K TV screens is expected todominate the 2016 high-end market. With the heavy marketing campaignconducted by Samsung, it is anticipated that 4 million 4K TVs will beshipped in 2016. Unfortunately, the OLED TV technology from LG isvery expensive thus, the market share for 4K TVs, and other SUHDtechnologies will continue to in the coming years. It is anticipatedthat LG will ship 450, 000 to 500, 000 pieces.

TheConsumption Trends for 4K TV and Ultra HD TVs is shown below

of Relevant articles

2015Samsung report

Ina 2015 smart product consumption report, the company reportedsignificant growth in the consumption of its TV products. Samsungflat-panel TV product lines were consumed by 28.3% of the companymarket share in the developing and developed nations. However, a39.1% was recorded for the Ultra-large size market. In the SUHD andUHD TV market, Samsung reported a significant market share increaseby December 2015 recording 34.3% product consumption rate.

In2016, the company anticipates to continue dominating the TV industrywith the range of innovating products. The company targets thepremium TVs segment producing both the SUHD, curved andultra-large-size TVs for this segment. These products have won thehearts of many consumers in the American and European market. Samsungbelieves that with the company new plan to collaborate with globalcompanies on SUHD TV technologies, and the inclusion of the Tizenplatform, the company will continue to improve the quality andexperience of UHD and SUHD TV products.

Horowitz,N. et al. (2015) study on the consumption of UHD TVs

Thisstudy investigated the consumption of UHD TVs in the United States.According to Horowitzet al. (2015), there are over 300 millionestimated televisions in the United States. The authors acknowledgethat the consumption of UHD particularly the 4K television brand ofUHD will dominate the market in the coming years. The anticipatedincrease in consumption of 4K televisions will be boosted by the highquality services offered by the TV set. However, Horowitz et al.(2015) observes that the increase in demand for UHD TVs will beaccompanied by high demands for energy consumption.

Jukic(2015) Review of the Exploding 4K TV market

Inthis online report, Jukic reviews the expanding market for 4K TVacross the world. According to Jukic (2015), 4K ultra HD technologiesare increasingly moving closer to becoming the main replacement forthe exiting market of Full HD TV. Jukic review a recent report byStrategy Analytics, which predicted that by 2020, half of the UShomes, will own the 4K TV. Tracing the history of 4K consumption inthe united states, Jukic observes that only 1% of U.S homes had 4K TVin 2014, by 2015, this percentage had improved to 10% by 2020, it isestimated that 50% of the American population will own a 4K TV ofsome kind.

Interviewswith potential users

Toestablish how different segments of the market view the new 4K SUHDTVs, a randomized survey was conducted on two different consumers ofthe products: students, and young professionals. Students tend to betechnologically literate and represent a significant amount of theearly adopters of new technologies. They have been seen to promotethe use of new technologies through social media. However, studentslack the financial power to acquire some of the top technologies. Inthe case of 4K SUHD TVs, the surveyed student population confirmedthe exceptional qualities of the 4K SUHD TV. In fact, 90% of thesurvey population noted that they would be willing to immediatelytransit to the new 4K SUHD TV sets. However, they lamented on thepricing of the 4K SUHD TVs. To them, act as the exclusion factor whenmaking purchase decision. 20% of the interviewed students possessedthe new sets of 4K SUHD TVs.

Theyoung professionals on the other hand represent a class of theconsumer population that is technologically savvy. They have thefinancial power and though limited, most of them have been observedto purchase products depending on how technologically powerful it is.In this survey, 80% of the interviewed young professional populationhad 4K SUHD TVs.18 % said they were in the process of acquiring oneof the 4K SUHD TVs. When asked about the pricing, the youngprofessionals were relatively comfortable about the pricing of thenew sets of 4K SUHD TVs. Furthermore, only 15% felt that the priceswere too high. For them, the capabilities of the technology are worththe prices quoted.

AProfile Of The Primary Market Segments


Segmentation bases

Target customer segment for 4 K SUHD TV



USA, and 13 other countries


Rural and urban






All age categories


Males and females


Low and middle income category


Students, employees, professionals


High school, technical, Bachelors,

Social status

Working class, skilled working class, lower middle class, middle class

Family size

Single individuals, nuclear and extended families



Traditionalists, contended conformers


Easy-going, determined




Benefits sought

Cost advantage, variety

User status

Active user


Skeptical, positive


Formany consumers, the internet has become one of the most importanttools for buying decision. According to an online survey conducted byEttenberg(2003),the internet is the first choice of inquiry when consumers are facedby the difficult question of product choice. In this study, 81% ofthe respondents confirmed that they seek out opinions from onlinesources before making the decision to purchase a product. The mostpopular ways of getting information for most uses are blogs, productreview websites, and sometimes the official website for themanufacturing company.

Whendeciding to purchase 4K SUHD TV, the first thing a customer will dois to search for the product’s information on the internet. Thecustomer will choose from a wide range of information sourcesconcerning the product and learn as much as possible about theproduct. Blogs, news articles, social media updates, and productanalysis websites will be the main source of information concerningthe product (Caplin,2005).The customer will then consider the experiences of other consumers ofthe same product. Most of the products have positive and negativesurveys found online. For example, customer experiences on 4K SUHD TVsets can be found online ranging from product reviews from e-commercesites, to personalized blogs created by individuals, and comments onsocial media. Based on the information garnered online by the clientconcerning the 4K SUHD TVs, the client will be in a position to makea decision on whether to take the next step or not. Negative surveyswill most obviously discourage the client, while positive surveyswill play a critical role in making the ultimate choice of buying a4K SUHD TV.

Aftergathering information about the product, its specifications,functionalities, and durability, the customer will then consider thepricing of the product. A wide range of online sources exists showingdifferent prices for the product under different conditions. Thecustomer may visit Amazon to do a comparative analysis of the productprices the client might as well visit e-bay or any other e-commercewebsite that provide prices for the different categories of 4K SUHDTVs. Some bloggers also provide summaries of the pricing of 4K SUHDTVs from different e-commerce platforms.

Whenthe client is satisfied by all the aspects that they are looking for,the decision to order the product follows. Studies have shown that90% of the client who use the internet to gather information about aparticular product will purchase the product from an online source.Luckily, Samsung has partnered with various e-commerce platforms tooffer its products. In addition, the products can be ordered from thecompany website or any of its stores.

Marketingopportunities that the digital revolution offers marketers

Accordingto Solomon (2015), the internet has changed numerous industries butfew have been changed as marketing. Today’s marketers have some ofthe best tools for monitoring product progress, assessing productimpact, creating customer relationships, and establishing productpresence in the market place. Unlike in the past where thetraditional marketing tools limited the capabilities of markets, thedigital revolution have completely reorganized marketing and changedthe rules of engagement in the field of market. While there is a widerange of ways through which the digital revolution has impactedmarketers, below are some of the opportunities it offers tomarketers.


Marketingis primarily concerned with understanding the needs of customers andfinding creative ways of solving those needs. The internet offers oneof the best and unique opportunities for identifying and solvingconsumer needs. Unlike in a traditional marketing approach wherecustomer research efforts for example were expensive and manuallydone, the digital revolution has provided new and exciting ways ofgaining customer insights through surveys in cheap and convenientways. Furthermore, the digital revolution has given birth to new CRMsystems that are easy to use and deploy to clients.

ProductDevelopment and launch

Mostmarketers are increasingly using digital platforms to communicate thestages of product development and communicate launching dates for theproducts. Samsung is a perfect example in this case the companyutilized its digital platforms to launch the new series of SUHDTVs. In addition, contemporary digital technologies have fostered thedevelopment of cloud-based customer collaboration efforts whencompanies are developing products. Companies have better ways ofgetting precise and important information about the products beingdeveloped.

BrandManagement and Communication

Thedigital revolution has provided cheap ways of management brands andnew platforms of communicating to consumers. In fact, brandmanagement and communication are the most common uses of digitalplatforms today. Digital platforms provide real-time responses toproducts provide marketers with product performance analysis tools,and great social monitoring tools that help marketers to understandand connect with the concerns of consumers. importantly, digitalplatforms have provided markets with the necessary tools, to share,publish, and create strong multimedia content that amplify thepresence of products both the digital platforms and the normalmarket.

CustomerRelationship management

Withthe contemporary presence of digital platforms, marketers are able todeploy a broad range of customer-oriented services that fostercustomer loyalty and improve the experiences of the customers. Forinstance, digital platforms have enabled the development ofsophisticated loyalty systems that are designed to improve theexperience of the customers. In addition, digital platforms haveenabled deeper engagement with customers making it possible forreal-solutions.


Whilethe 4KSUHD TV have proven to be one of the most liked versions of TV setsin contemporary history, they face major competition from differentcompetitor manufactures. Oneof the major competitors for the 4KSUHD TV is the LG OLEDTV panels. These panels have the same functionalities, designs,sizes, and relatively similar prices. However, the only difference isthe technology use. Each of the companies claim that their technologyis superior, but from the interviews conducted previously from thisstudy and the online survey, the Samsung SUHDTV product line is more superior. Below is a comparative analysis ofthe two product’s marketing mix.

Placein the Marketing Of Samsung SUHD and LG OLED TV panels

Samsunghas a well-established marketing channel across the globe. Thecompany presence throughout the globe is established by the variouschannels owned by the company in different markets of the world. Thedistribution network has created significant network for the companyin different cities of the world. Just like LG, Samsung rely onsingle distributors in specific cities of the world to promote andsale its products. For instance, in Mumbai, the company uses SSKdistributors to coordinate the distribution of the company products.Forthe Samsung SUHD and LG OLED TV panels, both companies serve a globalaudience. Both companies have established networks across the globe.Samsung too has a strong market presence in the TV series.

Pricein the Marketing of Samsung SUHD and LG OLED TV panels

Whenpricing its products, LG employs the cost plus fixed markup for allits products. This means that the customer pays for the cost ofproducing the product, plus what the company considers as the mostreasonable profit. Importantly, LG follows a price policy that callsfor the development of prices in consideration of the place where thegoods are sold. The same pricing strategy has been applied for the LGOLED TV panels. On the other hand, Samsung uses a competitive pricingstrategy for its products except smartphones. With the competitive pricing approach, Samsung’s strategyis to beat the competitor in the market. In addition, Samsung’spresence in the world gives the company an advantage because it doesnot use penetrative pricing strategy.

Promotionin the Marketing of Samsung SUHD and LG OLED TV panels

Justlike Samsung, LG believes in the concept of promotionaladvertisement. However, the company has not engaged in extensiveadvertisement campaign for its OLED TV panels like Samsung did withits SUHDTVs.The company has a strong digital media presence and the advertisementof its products can be found on both the traditional and contemporarymedia platforms. As part of its promotional activity, LG givesdiscount to its customers and special discount to distributors andretailers with LG exclusive shops. Notably, personality promotion ishighly valued in LG. On the other hand, Samsung has engaged inextensive promotional campaign for its new product. The company hasspent millions of $ it establishes its online presence as well theprint media. Some commentators have argued that Samsung is better attheir product promotional activity than LG. A similar characteristicfrom the two companies is the fact that the different tacticsemployed to push the company products match with the existingconditions in the market. For instance, the approach for twocompanies changes during the festivities and non-festivity seasons.


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