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Samsung Marketin Strategy
Samsung Marketin Strategy
Product Innovation
Samsung's product range in India included CTVs, audio and video products,
information technology products, mobile phones and home appliances (Refer Exhibit
I). Its product range covered all the categories in the consumer electronics and home
appliances. Analysts felt that the wide product range of Samsung was one of main
reasons for its success in the Indian market. Samsung positioned itself on the
technology platform...
Pricing
Pricing also seemed to have played a significant role in Samsung's success...
Distribution
Along with the launch of new products, Samsung also consolidated its distribution
system. Samsung had 18 state-level distribution offices and a direct dealer interface.
The direct dealer interface helped the company get quick feedback from dealers, and
enabled it to launch products according to consumer needs...
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Said Arun Mahajan of Mudra, Samsung's ad agency, "The focus has been to evolve
concepts to do with the players, to promote the cause of cricket and patriotism.'' The
copy of the print ad read, 'With Team Samsung, It's India First.''
Product Initiatives
Samsung realized that to become a global brand, it had to change the perceptions of
consumers who felt that it was an OEM player and associated its products with low
technology. Generally, consumers in developed markets (such as the US) opted for
Samsung when they could not afford brands such as Sony and Panasonic. To change
consumer perceptions, Samsung decided to focus on product design and launch
innovative products...
Beating Sony?
In 2001, Samsung declared that it would beat Sony in the consumer electronics
market by 2005. Kim said, "We want to beat Sony. Sony has the strongest brand
awareness; we want to be stronger than Sony by 2005." However, analysts felt that it
would be difficult for Samsung to beat Sony so soon as Samsung was regarded as an
OEM player till the mid-1990s.
In 2002, while Samsung was ranked 34th with a brand value of $8.1 billion, Sony was
ranked 21st with an estimated brand value of $13.90 billion. However, while
Samsung's rank had moved up from 42 in 2001, Sony's had slipped down from 20th in
2001. In the third quarter of 2002, Samsung emerged as the world's number three
player in the mobile market, beating Siemens and Ericsson, with a marketshare of
36.4%...
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We are highlighting the main points on Samsung Company. Our report will surely be fruitful for the marketing
strategy of Samsung.
Samsung intends to earn world leadership and secure overwhelming competitive strength. It is synchronizing
product development, sales, manufacturing, marketing and design. Samsungs slogan everyones invited
describes its broad target market strategy, with a vast line of products. According to our analysis, Samsungs
main strengths are its Global Business Network, Brand Name Credibility, MPR2 technology, TFT LCDs,
innovative changes and new styles in Flatron and specially the quality awards that it has won since last two
years continuously are positive points for Samsung. Samsungs Sales and Service centers are in 4 different
countries, with vertical sort of distribution system. Samsung can use its strengths as threats for other
companies. It can easily raise its image by its quality products and promotional advertisements. Promotional
activities can play a key role in capturing the market share for Samsung.
This report highlights four major points and is further sub-divided into parts, which is preceded by a brief
abstract of its contents.
Part I presents the introduction and brief History of Samsung; Part II explains the main Strengths,
Weaknesses, Opportunities and Threats of the Company; Part III shows the Target Market of Samsung; Part
IV presents the Marketing Mix of the Company; Part V gives the Observations and Recommendations. All the
things have been discussed according to Samsungs presence Globally and particularly in accordance to
Pakistan.
Introduction
Established in 1969, Samsung Electronics has emerged as a major player in the world electronics industry.
The company consists of 4 main business units: the Digital Media Business, Semiconductor Business,
Information & Communications Business and Home Appliances Business. It employs over 66,000 people in
some 50 countries worldwide. Samsung Electronics is ranked 131st on the Global Fortune 500 List
Samsung is best known for the success it has had in the memory semiconductor industry. From 1992,
Samsung Electronics is positioned at the top of the DRAM, semiconductor market. Since then, it has
diversified its financial structure and is considered the number 1 company in market share for memory
semiconductor chips, TFT-LCDs, CDMA mobile phones and computer monitors. It is also ranked number 4 by
sales in the semiconductor industry and number 6 by units in the mobile phone industry.
Looking ahead, Samsung's vision is to become a leading company of the digital convergence revolution. The
21st century will be a time where the Internet, wireless communications, networked systems and contents
will be united. Various forms of convergence technology that link conventional stand-alone appliances
through networks will be developed.
In the new digital convergence age, core competitiveness will be determined by how companies develop
networks from components to digital products. Few companies have the business structure to form this
network in-house.
Samsung, however, is ready to lead in this Age as it will use its strengths in semiconductor,
telecommunications and consumer electronics technology to develop innovative multi-capable products and
create powerful networks that will empower the user for anytime, anywhere communications and a higher
quality of life.
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public, but it also illustrates the fashion focused and technologically trendy Samsung look. Samsung radiates
technological elegance and stylish panache, joining forces with SSAFW compliments and enhances this
techno fashion centered brand. Corporate sponsorships from renowned corporate brands make style and
artistic endeavors possible and accessible. Yet, Samsung Mobiles joint sponsorship with SSAFW is especially
innovative, as corporate sponsorships of artistic endeavors are still relatively new.
Additionally fashion victims and trend targets find a little endorsement from a corporate sponsor further
boosts confidence and builds trust in the brand. It no longer matters what you wear, rather the importance
lies in who you wear and what brands accessorize and compete your look. The Giorgio-Armani Samsung
cellphone certainly was a hit at the launch of the Samsung Mobile Ione Modle on 13 March 2008. The size
of a credit card, its easy to mistake for the most widely used accessory among shoppers
worldwide! Director of Sanlam South African Fashion Week, Lucilla Booyzen, says, A designer gadget
completes your look just as much as a pair of shoes or a great handbag, ensuring you are toujours a la
mode.
Samsung Mobile is employing a diverse range of media to communicate the passion and vigor behind this
brand. Apart from the mobile phone motivated artwork, a fully integrated media campaign is set to roll out
over the next 6 months to launch the competition to each and every eligible and eager girl and guy in South
Africa. An online micro-site has been built for national access and a viral element will accompany
this. Samsung Mobile is utilizing outdoor media as well as a print campaign that includes Cosmopolitan
magazine and a radio campaign with national youth station 5FM and a number of campus community
stations. Selected SABC, M-NET and DStv channels will also be involved in an above-the-line campaign to
ensure that each and every stone is turned to find the first male and female Samsung Mobile Icne Modle.
In total over R5 million is being spent to ensure the right models are found.
In closing to his speech at the launch Hume summed up the partnership by saying, Your mobile phone is an
extension of your arm, youre never without it and its a highly visual object no matter what youre
wearing. The fusion between fashion and technology is almost seamless, particularly in South African society
where cell phones are societal status symbols, somewhat like shoes used to be in ancient times when the
length of the toe of your shoes communicated your rank in society.
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Samsung Group
From Wikipedia, the free encyclopedia
Samsung Group
Type
Public (Korean: )
Founded
1938
Founder(s)
Lee Byung-chul
Headquarters
Area served
Industry
[1]
Conglomerate
Electronics
Shipbuilder
Financial
Chemical
Retail
Products
Entertainment
Flash memory
Aviation
Optical storage
Mobile phones
Smartphones
Hard disk drive
Revenue
Net income
Total assets
Total equity
Employees
276,000 (2008)[2]
Samsung Electronics
Subsidiaries
Website
Samsung.com
industries. The company's strong influence in South Korea is visible throughout the
nation, which has been referred to as the "Republic of Samsung".[7][11]
Contents
[hide]
1 Background
2 History
3 Market share
4 Sports sponsorship
o 4.1 Samsung sponsor of the Olympics
5 See also
6 Notes and references
7 External links
[edit] Background
Samsung is the world's leading consumer electronics brand and one of the top twenty
global brands.
View of the Samsung logo inside the Time Warner Center in New York City.
Currently helmed by Lee Soo-bin, CEO of Samsung Life Insurance, it has been run by
generations of one of the world's wealthiest families, formerly by chairman Lee KunHee, the third son of the founder, Lee Byung-Chull.
Many major South Korean corporations such as CJ Corporation, Hansol Group,
Shinsegae Group and Joong-Ang Ilbo daily newspaper were previously part of the
Samsung Group. Though they are still controlled by ex-Chairman Lee Kun-hee's
relatives, they are no longer officially Samsung affiliates. Some leading companies in
South Korea, notably MP3 player manufacturer iriver and search engine portal Naver,
were established by ex-Samsung employees. A large number of South Korean firms,
particularly those in the electronics industry, are dependent on Samsung for the supply
of vital components or raw materials such as semiconductor chips or LCD panels.
This has led to continued allegations of price fixing and monopolistic practices.
Samsung Group also owns the Sungkyunkwan University, a major private university
in South Korea.
Samsung Group accounts for more than 20% of South Korea's total exports[10] and in
many domestic industries, Samsung Group is the sole monopoly dominating a single
market, its revenue as large as some countries' total GDP. In 2006, Samsung Group
would have been the 34th largest economy in the world if ranked, larger than that of
Argentina.[12] The company has a powerful influence on the country's economic
development, politics, media and culture, being a major driving force behind the
Miracle on the Han River; many businesses today use its international success as a
role model.
[edit] History
selling consumer electronics in South Korea in order to protect Samsung from foreign
competition and nurture an electronics manufacturing sector that was in its infancy.
To make up for a lack of technological expertise in South Korea, the South Korean
government effectively required foreign telecommunications equipment
manufacturers to hand over advanced semiconductor technology in return for access
to the Korean market. Such policies eventually lead to Samsung manufacturing the
first Korean dynamic random access memory chips.
Samsung Group later formed several electronics-related divisions, such as Samsung
Electronics Devices Co., Samsung Electro-Mechanics Co., Samsung Corning Co., and
Samsung Semiconductor & Telecommunications Co., and grouped them together
under Samsung Electronics Co., Ltd. in 1980s. Its first product was a black-and-white
television set.
In the late 1980s and early 1990s, Samsung Electronics invested heavily in research
and development, investments that were pivotal in pushing the company to the
forefront of the global electronics industry. By the 1980s Samsung was
manufacturing, shipping, and selling a wide range of appliances and electronic
products throughout the world. In 1982, it built a television assembly plant in
Portugal; in 1984, it built a $25 million plant in New York; and in 1987, it built
another $25 million facility in England.
The 1990s saw Samsung rise as an international corporation. Not only did it acquire a
number of businesses abroad, but also began leading the way in certain electronic
components. Samsung's construction branch was awarded a contract to build one of
the two Petronas Towers in Malaysia, Taipei 101 in Taiwan and the Burj Khalifa in
United Arab Emirates (founded by Callum Cuirtis), which is the tallest structure ever
constructed.[13] In 1993 and in order to change the strategy from the imitating costleader to the role of a differentiator, Lee Kun-hee, Lee Byung-chulls successor, sold
off ten of Samsung Group's subsidiaries, downsized the company, and merged other
operations to concentrate on three industries: electronics, engineering, and chemicals.
In 1996, the Samsung Group reacquired the Sungkyunkwan University foundation.
Compared to other major Korean companies, Samsung survived the Asian financial
crisis of 1997-98 relatively unharmed. However, Samsung Motor, a $5 billion venture
was sold to Renault at a significant loss. Additionally, Samsung manufactured a range
of aircraft from 1980 to 1990s. The company was founded in 1999 as Korea
Aerospace Industries(KAI), the result of merger between then three domestic major
Aerospace divisions of Samsung Aerospace, Daewoo Heavy Industries and Hyundai
Space and Aircraft Company (HYSA). Korea Aerospace Industries(KAI) - largest
shareholders as of 2009 (Korea Development Bank 30.53%, Samsung Techwin
20.54%, Doosan(formerly known as Daewoo Heavy Industries) 20.54%, Hyundai
Motor 20.54%).
Most importantly, Samsung Electronics (SEC) has since come to dominate the group
and the worldwide semiconductor business, even surpassing worldwide leader Intel in
investments for the 2005 fiscal year. Samsung's brand strength has greatly improved
in the last few years.[14]
Samsung became the largest producer of memory chips in the world in 1992, and is
the world's second-largest chipmaker after Intel (see Worldwide Top 20
Semiconductor Market Share Ranking Year by Year).[15] From 1999 to 2002, Samsung
conspired with Hynix Semiconductor, Infineon Technologies, Elpida Memory
(Hitachi and NEC) and Micron Technology to fix the prices of DRAM chips sold to
American computer makers. In 2005 Samsung agreed to plead guilty and to pay a
$300 million fine, the second-largest criminal antitrust fine in the US history.[16][17][18]
[19]
In 1995, it built its first liquid-crystal display screen. Ten years later, Samsung grew to
be the world's largest manufacturer of liquid-crystal display panels. Sony, which had
not invested in LCDs, contacted Samsung to cooperate. In 2006, S-LCD was
established as a joint venture between Samsung and Sony in order to provide a stable
supply of LCD panels for both manufacturers. S-LCD is owned by Samsung and Sony
51% to 49% respectively and operates its factories and facilities in Tangjung, South
Korea.
Considered a strong competitor by its rivals, Samsung Electronics expanded
production dramatically to become the world's largest manufacturer of DRAM chips,
flash memory, optical storage drives and it aims to double sales and become the top
manufacturer of 20 products globally by 2010. It is now the world's leading
manufacturer of liquid crystal displays.
Samsung Electronics, which saw record profits and revenue in 2004 and 2005,
overtook Sony as one of the world's most popular consumer electronics brands, and is
now ranked #19 in the world overall.[20] Behind, Nokia, Samsung is the world's second
largest by volume producer of cell phones with a leading market share in the North
America and Western Europe.[21]
Samsung's
global
Competitors
m/s
34.3%
Hynix
40.4%
Toshiba
M/S
Year
Source
[22]
26.2%
LG Display
30.5%
LG
21.6% Q1 2009
28.1% 2008
2009
25.8%
February
34.8% Q1 2008
90.0%
LG
Q2 2008
[26]
19%
Sanyo
20%
Q2, 2009
[27]
16.1%
9.5%
Dell
14.6% 2008
Seagate Technology 34.9% 2007
[28]
16.4%
HP
19.2% Q1 2009
[30]
23%
LG
13.7 % Q3'09
Revenue
[31]
[23]
[24]
[25]
[29]
Share
French door
refrigerator (U.S. 18.79%
market only)
Mobile phone
21%
Digital camera
9.1%
Drillship
80%
Whirlpool
23.83%
2009
January
Nokia
37.8% Q3 2009
Canon
19.2% 2007
Daewoo
Shipbuilding &
20%
2000~2007
Marine Engineering
[32]
[33]
[34]
[35][36]
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SOURCE:WWW.BUSINESSWEEK.COM
OCTOBER 31, 2005
MEDIA CENTRIC
Jon Fine
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This being the Web, these ads are neither static nor one-way. They can link to other sites, should consumers be
given a good reason to click. It occurs to you: This is a network in and of itself. You can use your collective ad buy to
leverage partnerships with other marketers. You have essentially blurred the line between advertiser and medium.
Such is the story with consumer-electronics darling Samsung. Its ads not only promote its own wares but also
sometimes other big mainstream entertainment products, be it Fantastic Four or releases from Jon Bon Jovi and The
Who. "Hi, Hollywood. You would like to reach 175 million people in 30 days?" deadpans Peter Weedfald, Samsung's
senior vice-president for consumer electronics and North American marketing. "We can do it."
There are many arrows in Weedfald's quiver -- all that choice Web real estate, Samsung products' natural fit with
entertainment, musicians' need to promote themselves independently of labels' efforts, and his own ultra-audacious,
buzzword-studded selling style. With them all, Weedfald is proving there's life left yet in the lowly Web banner ad, and
in the tattered mass-marketing model itself.
INTERNET SPENDING by Samsung Electronics -- that is, its consumer unit -- tripled between 2001 and 2004, to
$11.5 million. It accounted for slightly more than 14% of its measured media spending for the first half of 2005.
Samsung also boosted its advertising on network TV and in magazines, but it has, perhaps unwittingly, created
competition for traditional media by becoming something of an ad vehicle itself. "Let us be your advertising,
marketing, publishing, creative" partner, says Weedfald, warming to an imaginary audience. "We get to burnish
Samsung by standing next to Jon Bon Jovi. He gets a vast distribution network."
Using ads as a distribution mechanism is a byproduct of the bigger game for Weedfald. As a mass marketer with
myriad product lines, Samsung seeks ubiquity and repetition. (Googling some of Weedfald's pet phrases -- "the ADD
economy," the Internet being "Darwin on speed" -- aptly proves that he practices what he preaches regarding
repetition.) Weedfald, a former tech-magazine executive, loves publishing metaphors. "I want Jon Bon Jovi. I believe
in his audience -- his circulation -- and what he stands for," he says. "The unique editorial is his music, and his genius
around the music." (You were warned about his selling style.) What is a network without content?
A full-court promotional press for Fox's Fantastic Four last summer involved Net and traditional media ads and instore displays at Best Buy. Actual money that changed hands between Samsung and the studio: zero, as Samsung
traded off its Net bona fides for multiple product placements in the film. "Samsung's Internet reach is so pervasive,"
says Lisa Licht, Fox's senior vice-president for global marketing partnerships. "Think where moviegoers are: They're
on the Internet for a significant portion of the day." Samsung (NWS ) just announced a deal with The Who in which
buyers of certain Samsung systems get free Who DVDs -- a deal promoted, of course, by its Web presence. Last
year, Samsung sponsored a Webcast of a Bon Jovi concert, framed by what looked like a Samsung TV, and grabbed
125,000 viewers, 87% of whom stuck around for the nearly two-hour show.
Uncomfortable as it may make media executives who might once have aired a Bon Jovi concert themselves, it likely
didn't hit Web users that they were watching another turret crumble on the advertiser-media wall. The old New Yorker
cartoon tells us that on the Internet, no one knows you're a dog. The Samsung corollary is: On the Web, no one
knows you're not a medium. Even if you act like one.
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