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The core customer value of Samsung Note 5 is the physical body of the phone and functions of the smartphone. The actual product is the packaging, physical being of the smartphone, charger, and headset, quality of the Samsung Note 5, brand nameand design of the smartphone.The augmented product is the 1-year warranty that comes with the smartphone, the service, installation of software and delivery andcredit should the consumer purchase the smartphone online.25
Samsung galaxy note 5 has encountered a serious usability issue with regards to insertion of the S-pen stylus into the phone. Wheninserted the wrong way it can damage the stylus and make it unusable or even damage the phone itself. This is due to the new springejection system of the stylus from the housing. Unlike the previous note series note 5 no longer has the safety mechanism which preventusers from inserting the stylus wrongly. (International business time, 2015)One solution to this will be to include warning labels on the stylus itself and the instruction manual. This will warn users about the effectsof wrongly inserting the stylus. Another solution will be to remove the spring ejection system and put back the old stylus housing systemwith the safety mechanism. The first option is more viable as it is more cost efficient than changing the housing system of all the phones.However some consumers especially those who have used Samsung products before may not read the instruction manual and label.Therefore, it will be very ineffective as majority customers will not read the label and just begin using the phone So Samsung will need toeducate the consumers by putting clear and big warning signs on the packaging or on the stylus itself or both and to encourage users toread the instruction manual carefully.Competitor Apple has IPhone 6 plus to compete with the new released Samsung Galaxy Note 5. The unique feature of Apple products isthat they have an Operating System which is only available in Apple products. However, Samsung Galaxy Note 5 has wireless chargingwhich is an unique selling point which has an edge over the IPhone 6 plus.6.6.2.PriceBecause of Samsung has different product categories, it uses various pricing strategies. Samsung adopts the skimming price technique forsmart phones, setting a high value for it before competitors catch up. At this stage, it aims for those consumers who have the income and26
are willing to afford or purchase the new product. Once the model becomes old or any of its competitors launch a similar smartphone,Samsung will drop its price.Samsung is aiming to stop the company’s slipping share in the smartphone segment and especially in the premium smartphone segmentagainst Apple's flagship duo iPhone 6 & iPhone 6 Plus. Both Samsung Note 5 and Apple IPhone 6 plus has similar retail price whichstarts around $1,000.