Samsung Galaxy Note7 Marketing and Public Relations

The Note 7 Marketing
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Introduction
Samsung Galaxy Note Seven is an Android enabled smartphone, manufactured by the Samsung Electronics. Production of the phone was discontinued since it encountered some problems, just after its unveiling on 2nd August 2016. Samsung Electronics, which produced the phone has its headquarters in Seoul, South Korea, and has been operational since 1938.
The note seven is the sixth primary device produced in the Galaxy Note series, and it’s an evolution of the Samsung galaxy note 5. The Note 6 inherits some hardware components as in the Note 5, although some improvements were made in many aspects. Some of the features inherited from the Note 5 include Expandable storage, which saw the introduction of the use of SSD micro cards. Also, the phone was IP68 water resistance (Gsmarena.com, 2018).
Other than the features mentioned earlier, some improvements were made on other features, making it superior over its predecessors.
Furthermore, consumers seemed perplexed by the quality of construction of the phone, especially curved sides, and the HDR support feature incorporated. On September 2, 2016, Samsung suspended the sales of the note seven productions and later announced a recall of all the units sold. A manufacturing problem was given as the sole reason for the same. More afterward, Samsung continued with the production of other Smartphones in the same series which saw the Samsung note 8 becoming a successor of the recalled Note 7.

The Smartphone Competition
At the moment, smartphones are considered to be the standard configuration for mobile devices, and market analysts have established that it’s one of the fastest growing industries in the world. According to data obtained, the sales of smartphone handsets grew significantly by over 4.3% in 2013, with 435 million units sold in the second quarter. According to the same source, over 1.47billion units got shipped to various destinations, and by 2021, more than 1.8billion units are estimated to be sold.
Samsung is the most significant smartphone vendor across the world, a position it has held since 2009. It is estimated that the company controls up to 20% share of the smartphone industry around the globe. The Galaxy series, where the Note 7 lies, is the main line of the production that is sold across the world. In early of 2017, the shipments are said to have increased to more than 47.1 million units.
Apple closely follows Samsung, becoming the second most abundant seller of smartphone units across the world. They sold more than 215 million iPhone units around the globe. Huawei is the third vendor, with some other Chinese companies such as OPPO, Xiaomi, and Lenovo following carefully, with much of their exports directed to Africa and other third world countries across the world.
Competition amongst smartphone manufacturers is observed through the number of units sold, market penetration and the launch of new devices. According to Solomon et al. (2008), the smartphone industry is anticipating to establish the tactics used by their competitors, to remain relevant in the market. For example, after Apple unveiled their new iPhone in 2017, several companies followed suit, with SONY, LG, Lenovo and Motorola releasing new devices in a short time span. Both groups introduced new features in their units and conducted a thorough market survey before shipment begun. Market targeting and segmentation are some of the favourite marketing strategies adopted by most of the companies for the effective reach of the consumers.
The Chinese Offering
China, like other well-established nations across the world, is one of the leading smartphone manufacturers. Most of the units manufactured in China are consumed locally, although most of them have of late faced stiff competition from brands such as Apple and Samsung. Other gadgets are exported to the rest of the world, with developing countries being the primary consumers of some units. The famous Chinese smartphone brands include Oppo, Xiaomi, Huawei, Infinix, Tecno, and X-tigi. Some of the mentioned brands are very popular in developing nations, unlike developed ones.
Market targeting is one of the aspects that have made Chinese smartphones accessible across the world. As mentioned by Solomon et al. (2008), target marketing involves identifying a market and partitioning the market into distinct segments. Planning and application of different market strategies are then enhanced according to each segment’s needs. With the adoption of other marketing strategies such as positioning and promotion, the Chinese smartphones have successfully ventured into the world market, and are favourably competing with giant smartphone manufacturers such as Samsung and apple.
Background of the Note 7 Battery Issues
Many Samsung users across the world were looking forward to upgrading their devices with the latest flagship model; The Samsung note galaxy note7.Such was after much-hyped promotional services around the globe, which saw many consumers eager to use the device. In one of their adverts, Samsung claimed that the Phone would be “the key for opening a door for new experiences.”
In September 2016, police officers at the Saint Louis police stationed were alarmed of a car on fire in one of the neighbouring streets. On arrival at the scene, the police found a vehicle, damaged beyond repair and interrogated the owner, who happened to have escaped. Statements issued by the police indicated that the driver had before the fire been charging a Samsung galaxy note 7, which burst into flames few minutes after plugging it into the power outlet. The suggestion that the cause of the fire was the phone remained unconfirmed although the police proceeded with their investigations.
On a different but similar incident, a southwest airline, operating in the United States of America cancelled its flight due to an explosion caused by a Samsung galaxy note 7. The blast caused a lot a lot of smoke in the plane instilling a lot of fears in the flight. While under interrogation, the owner of the unit reported that he had been powering it, before it started producing popping sound, and eventually exploded. He then threw it on the ground upon realizing the same.
Such cases increased significantly, with some explosions recorded in different parts of the world. As of September 2016, thirty-five similar cases got reported, and Samsung promised to give a detailed response sooner after the inspection was complete. Such led to an adverse reaction from the consumers and consumer organizations across the world. While responding to the explosion issue, the U.S product safety commission immediately recalled the phone, noting that the batteries had a problem and hence were unsafe (Forbes.com, 2018).
Some travel agencies across the world also banned the use of the Galaxy note7 devices on their vehicles and planes. One of the favourite airlines in the United States advised their travellers, upon boarding the plane to completely switch off and avoid charging the note seven units not until after they deplane.
After such happenings, the Government of the United States of America recalled the Samsung devices in its territories. The urgency of the matter was realized when Samsung also provided a statement urging the return of the already bought devices. Those affected were given a replacement. These problems are said to have caused the company losses amounting to more than $53 million.
After a thorough investigation, the company disclosed on what the cause of the device‘s battery to overheat and catch fire, especially during charging. As per the company’s findings, the overheating was as a result of three different problems in the batteries, sourced from three different suppliers.
One of the Suppliers was Samsung SDI. In this supplier s ‘case, there was lack of enough room between the heat-sealed protected subsection at around the battery and its other internal elements.
The second supplier was the Amperex technologies Limited, and in their case, some cells missed insulation tapes, a shocking revelation. Furthermore, some batteries had some ineffective protrusions that damaged the separator between the anode and the cathode. Additionally, the separators were found to be very weak. Hence they could be easily damaged, causing short circuits.
Samsung’s Reaction to the Problems, Their Advantages, and Disadvantages
To remain relevant in the market, Samsung reacted in some ways to the adverse issues associated with their Galaxy Note 7 Unit. One of the reactions that were offered by the Samsung Company over the problem was the offering of informative communication, to the concerned and consumers at large. Whereas some people viewed this as a valid move, some consumers argued that the company took longer to offer more elegant details (Hong, et al, 2014).
Whereas timely communication is one of the active ways of managing a crisis in an organization, the conversation should be factual, and convenient. On occasions that consumers take too long to respond to such issues, as claimed in this case, many weaknesses get exposed. For example, this leads to a lot of criticism, lack of trust and prove lack of control, which hurts the organization‘s reputation at the end.
The second reaction that was undertaken by the Samsung was the recalling of the Samsung note seven devices across the world. This showed a lot of safety care and concerns, by the company, towards its consumer across the world. To ensure that consumers affected were well taken care of, the organization introduced an exchange program whereby the consumers were given alternative devices for use.
Although such was viewed to be beneficial, some reports claim that even the newly exchanged phones did explode. Such meant that the strategy of getting defective phones out of the hands of the consumers, as requested by Samsung was not efficiently working. Therefore, this created mistrust amongst the consumers, which could affect the reputation of the company in the coming years (Chen & Sang, 2009).
Furthermore, the company reacted by entirely ceasing production of the Note 7 gadgets across the world. Therefore, the output of the device was done for two months as the product got launched on August 19, and production ceased on October 11. One advantage of this move is that customers and consumers across the world were assured of their safety. There would be no more speculations of such incidents.
Furthermore, such move is termed disadvantageous and much blame directed to the leadership of the company. Some argue that the command failed to realize the problem during initial testing stages, an aspect that saw the providence of ineffective units.
Differences of Samsung’s Reaction in the United States As Compared To South Korea
Significant differences were noted about the reaction of the Note 7 Failure in the two countries. The USA, through its consumer protection bodies, acted swiftly and ordered the return of all the devices in its territory. Also, usage of the galaxy was limited to some areas as people were warned against using it vehicles, airplanes and other travel mechanisms (Forbes.com, 2018).
The recall led to adverse results for the Company and the South Korean economy at large. The Samsung Company is one of the most significant contributors to the South Korean economy. Since the USA has one of the biggest consumers of the products, sales decreased rapidly as a result.
Contrary to such actions as taken by the government of the USA, Samsung, through its headquarters in Seoul took some time before completing investigations and informing the public on what had transpired. The most surprising aspect of this reaction is that the company failed to address the corporate culture as expected. Although that was of concern, the company apologized to its consumers across the world on the Mishap caused, indicating that such problems won’t be repeated in the coming future.
Recommended Actions
Considering the market share that Samsung holds across the world, I suggest that before the release of the troubled Note 7 gadget, the company should have thorough tests. Such was to ensure that reliability of the product was enhanced before its release. Safety is an important aspect, considered by consumers in any market setting.
Furthermore, the company should have carried audits of the involved suppliers, as they were at the nerve of the problem. Moreover, the group should have sued the suppliers, being part of the reasons that caused massive losses to Samsung. To regain its trust to consumers, operations with such suppliers need to be terminated.
Action by Apple
Apple, considered to be one of Samsung’s leading competitors increased their public relation antics, alongside their promotional features. Such saw increased vendor ship of the iPhone products across the world, overtaking Samsung for a while, although this was short-lived. Whereas sale of iPhone gadgets rose, those of Samsung dropped.
Action That I Would Have Recommended For Apple
It would of public interest if Apple could conduct an audit of their suppliers, to prevent problems such as those experienced by their Rival Samsung. Such would ensure that their products and the company, in general, get a good reputation across the world as before. Furthermore, ensuring that thorough testing of the gadgets is done before their release can be of much importance to Apple. Such is to provide that the released products are reliable, safe and valid, unlike as experienced by Samsung.
Christian Bible Integration
The Bible, through the book of Colossians, encourages us, as workers to work with all heart, and not for human masters (Colossians 3:23 King James Version). Therefore Samsung Company should strive to offer the best out of its work. Such should be done efficiently and satisfyingly. Therefore, before releasing the products to the market, they should ensure that they met the required standards.
Conclusion
Understanding the marketing problems before the release of products to the markets is essential. Companies should ensure that their products meet the required standards before the products are released to the consumers. By doing this, the consumers build a lot of trust and reliability, which facilitates excellent reputation for the organization. Samsung should, therefore, adhere to such in future, to prevent mentioned repercussions and liability lawsuits.

References
Chen, B., & Sang-Hun, C. (2016). Why Samsung Abandoned Its Galaxy Note 7 Flagship Phone. New York Times, 11.
Forbes.com. (2018). Forbes Welcome. [online] Available at: https://www.forbes.com/sites/melissaagnes/2016/09/15/what-samsung-did-wrong-when-responding-to-the-galaxy-note-7-disaster/#18fefd831795 [Accessed 4 Feb. 2018].
 Gsmarena.com. (2018). Samsung Galaxy Note7 – Full phone specifications. [online] Available at: https://www.gsmarena.com/samsung_galaxy_note7-8082.php [Accessed 4 Feb. 2018]. Lee, K. J. (2013). U.S. Patent Application No. 29/419,700.
Solomon, M., Marshall, G. and Stuart, E. (2008). Marketing. Upper Saddle River, N.J.: Pearson Prentice Hall.
Hong, Soon Jai, et al., (2014). The comparison studies of Samsung Galaxy and Apple iPhone – Mainly with users’ lifestyle -. Journal of Digital Design, 14(1), pp.97-106.