Based on its recent analysis of the mobile phone market, Frost & Sullivan recognises Samsung Kenya with the 2014 Kenya Frost & Sullivan Competitive Strategy Innovation and Leadership Award. For the third year running, Samsung has retained its sales leadership in the highly competitive Kenyan mobile phone market, posting 100 percent growth in sales from 2011 to 2013.
The company’s wide product range allows it to select phones appropriate to each market segment, as well as serve different segments of the market, based on price and functionality preferences. Samsung, for example, offers a 24-month warranty on its smartphones, as opposed to the standard 12-month warranties provided by other manufacturers.
Stakeholder integration is another area where Samsung excels in comparison to its competitors. It works extensively with partners to ensure that the products and their pricing are suitable for each customer segment and geographical area of the market.
“By partnering with Kenya’s largest mobile operators, Safaricom and Airtel, Samsung has been able to leverage the operators’ extensive distribution channels to boost handset sales and enhance customer value,” says Frost & Sullivan research analyst Lehlohonolo Mokenela. “The company has also used these strategic partnerships, to provide once-off data packages of at least 250Mb with the purchase of certain Samsung phones.”
Samsung also offers a value-added service that allows customers to check if the phone is genuine by texting a unique code on the phone to a central database. This system has been highly successful in reducing the impact of the grey market and counterfeit phones on Samsung’s sales, and simultaneously improved customers’ purchase experience.
“In addition, the wide and extensive service network ensures that any issues with the smartphones are dealt with rapidly and effectively,” notes Mokenela. “Following best practices, the company has made use of toll-free numbers, social networks, and on-going surveys of customers, operators, and partners to identify and remedy issues with products, as well as gain additional insights into customer demand.”
Samsung has developed apps to enhance a smartphone user’s experience, and also provided branded charging stations in airports and large public places, while advertising to a captive market. Through their strategic partnerships, an impressive targeted marketing strategy, and taking customer needs and preferences into consideration, Samsung now holds second place for the number of phones accessing the Internet, and through its dominance in the smartphone segment, is fast closing the gap.
Samsung sells its phones in its six brand stores across urban and rural Kenya, as well as in over 4000 mobile operator stores across the country and in approximately 200 retail outlets. Its understanding of the different geographical areas of the market enables it to capitalise on opportunities better than the competition.
Frost & Sullivan presents this award to the company whose competitive strategy has yielded significant gains in market share during the research period. Often, the recognised company has taken advantage of recent market changes that facilitate the introduction of novel methods of capturing and solidifying market presence. Alternatively, it may have executed an inventive strategy within the existing competitive landscape, empowering itself to overtake the competition. The company captures the attention of the competition, which quickly adjusts in order to protect its own market position. These innovations are expected to produce lasting, precedent-setting trends in the industry.
Frost & Sullivan Best Practices awards recognise companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis and extensive secondary research to identify best practices in the industry.
