Recently, news are coming in that Samsung has lost its market leader position in Smartphone markets in India and China, two of its biggest markets. What makes Samsung’s position in mobile handset market so vulnerable?
In India, MicroMax and in China, Xiaomi are said to have displaced the market leader. MicroMax and Xiaomi are claimed to be beating Samsung at its own game in which it decimated Nokia few years back.
In the utterly crowded and commoditized mobile handset market, such drastic changes are not surprising, unless you are an Apple. Samsung may dispute the claim or defend its territory for a while, but not for long. Sooner than later it will have to give in to some competition, which may emerge and ascend rapidly because it has built its brand on the foundation of vulnerability.
What are the marketing lessons one can learn from Samsung’s shaky brand position? Here are three :
1) No single target customer segment
You can own Samsung phone for as low as Rs 1200 or as high as about Rs.50,000. That is a full spectrum of mobile phone users. So, who is a Samsung target customer? Almost everybody.
Because of this large base, Samsung can be attacked by any Tom, Dick, Harry and their cousins. And it will have to spend time, money and energy in defending each of these territories.
Marketing lesson-1 :
Have a clear target customer segment and protect it firmly. Sharper the target, the safer. Don’t spread yourself too thin so that you can be attacked by anyone.
2) No clear positioning in customer’s mind
If you own an iPhone, that says something about you. You understand or appreciate quality, innovation and uniqueness. Also, you can afford a high-end phone.
If you own a Samsung? It does not say anything about your taste. You could as well own any other similar ‘looking’ phone.
Marketing lesson-2 :
Have a distinct positioning for your brand. Stand for something. Own a distinct position in customer’s mind. Don’t focus on marketshare alone. Focus on mind share instead. And drive that home in the customer’s mind.
3) No uniqueness
Apple has its unique hardware and its unique software. This makes switching difficult for an iPhone user because he gets used to some unique features, services and Apps which other mobile Operating Systems can’t offer. An Android based Samsung can be seamlessly switched to another Android phone without any significant loss of data or user experience.
Be unique. Give something that others can’t copy easily. Don’t become easily replaceable.