An Export Marketing Plan presented to Faculty of

School of Business and Governance

Davao City

ATENEO DE DAVAO UNIVERSITY

E. JACINTO ST., DAVAO CITY

In Partial Fulfillment
of the Requirements for the degree of Bachelor of Science
in Management Accounting

International Business and Trade

Course Facilitator: Ms. Manilyn S. Manos, MBA

Baclaan, Andrie John B.

October 2021

1
 Table of Contents
Title Page 1
Table of Contents 2
Executive Summary 3
Introduction 4
Financial Resources 6
Marketing Budget
Cash Flow to Fund Orders
Sustainability of Export Budget
Staff
Marketing Selection 9
Target Markets
Market Positioning in Target Markets
Competitor Analysis
Distribution Methods
Sales Goals
Product and Services Analysis 14
Product/Services for Export
Changes to Product/Service Required for Export Markets
Production Capacity
Pricing Strategy 16
Market Entry 17
Promotional Strategy 18
References 20
Curriculum Vitae 23

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 EXECUTIVE SUMMARY

The paper centers around the Samsung Export Marketing plan wherein Samsung

has grown from a little shop in the late 1930s to become Korea's most prominent and

the world's second-largest corporation. The business is most known for its technology

sectors such as Consumer Electronics, IT and Mobile communication, and Device

Solutions. Also, the Samsung developments address the Pandemic Crisis wherein they

create integrated global campaigns. With the help of financial resources, it helps to

sustain and support the business operations wherein some of the cost decrease and

profit increase. Also, it enhances the product and work environment like the safety of

the employers as they continue to mobilize the export products around the world.

Samsung creates a wide variety of customers with different goals that will meet the

company's standards and demand of the buyer. With that, there are continuous

improvements that happen in the company. The Korean suppliers can contribute their

raw materials to the company due to the restrictions of Japanese exports. Even though

there is high competition in the technology industry, the company has diversified

strategies in different fields to have a competitive advantage. Also, the investors and

analysts believe in growth and best-ever profit. Overall, the company is ready to

immerse in different situations in global works through exports because the firm adapts

to its system changes. They continue to research and develop the wholesome of their

product that meets the company's standards and meets the target market's demand as

they believe "Inspire the World, Create the future.” For the recommendation for

Samsung, the technology is always in a state of evolution. They need to be updated,

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develop, and innovate more about their business products to adapt to global systems

changes as they address the issues of the COVID Pandemic.

INTRODUCTION

Samsung Company is one of the world's most valued technological companies. It

is a multinational leading in consumer electronics, semiconductors, telecommunications,

and digital media technologies, led by South Korean entrepreneur Lee Byung-Chul.

Samsung Digital City is the company's headquarters in Suwon, South Korea. The firm

has developed into a multinational conglomerate with over 280,000 workers in 74

countries, exporting worldwide goods and services (Vailshery, n.d). Samsung has built

an identity of the brand as innovative, cutting-edge technology, and high quality of

designs and software. It attracts millions of buyers to purchase and avail of the products

and services. Above all, in the amidst of pandemic posed by COVID-19, the company

immediately response through global business activity. These are the following

business operations of the company:

First, the consumer electronics such as visual displays, digital appliances, and

health and medical equipment wherein the firm constantly reinvents the future to create

a world that leads to happier and healthy lives. For example, the company offers a

product of television screens, mobile phones, and diagnostic machines and equipment,

which reflects innovation and new consumer lifestyles. Second, the IT and Mobile

Communications business has solidified its leadership in the 5G smartphone market,

wherein it strives to maximize the value and convenience for the customers with its

networks business. Third, the device solutions when it comes to memory business

because Samsung was the first firm in the world to create EUV-based DRAM and has

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been investing in HBM2E Flash bolt for years, with applications in AI, automotive

components, IoT, AI, and 5G.With the innovation of System LSI that helps the

semiconductor and Samsung foundry that delivers a full range of solutions, from

advanced process technology to a proven IP and design ecosystem. Fourth, Research

and Development Center, the company experts continue to conduct research and

development to adapt the situation globally wherein the firm focuses on Artificial

Intelligence, Data Intelligence, Next Generation Communications, Robot, Tizen, Life &

Care New Experiences, Next Generation Display Media, and Security (Samsung us,

2021).

Overall, Samsung's development was a quick reaction to COVID-19 via

worldwide corporate social responsibility (CSR) initiatives and an integrated global

campaign. The business is committed to assisting in the creation of a sustainable future.

Its responsiveness to global clients' requirements and desires.

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 FINANCIAL RESOURCES

Marketing budget

According to Samsung global (2021). The total expenses of Samsung in the

year 2020 were KRW 200 million. Some of the costs, by nature, are not related to

the marketing expenses. These are the following breakdowns of expense by

nature of how they spent the money: First, Samsung advertising had decreased

from around KRW 4.6 million in 2019 to KRW 4.2 million in 2020. Second,

Samsung sales promotion expenses had decreased from around KRW 6.6 million

in 2019 to KRW 5.8 million in 2020. Third, Samsung outsourcing expenses had

increased from around KRW 5.1 million in 2019 to KRW 5.4 million in 2020.

Cash flow to fund orders

The Samsung firm manages cash flow for future large orders by forming a

collaboration with Mastercard and Sofi, which has resulted in the creation of a

cash management account that potential orders may utilize with Samsung Pay

(YouTube, 2020). Because it is not susceptible to depreciation, depletion, and

amortization estimates, value investors consider free cash flow to be one of the

most significant metrics to assess a company's earnings potential (DDA).

However, we should consider the Free Cash Flow from a long-term perspective

because the expenditure on the business's Property, Plant, and Equipment (PPE)

can significantly impact the Free Cash Flow in any given year (Samsung

Electronics, n.d.).

Sustainability of export budget

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 The highlights in each of the following areas: Board of Directors

independence and transparency; stronger compliance and ethical management;

sustainability governance; sustainability in the pandemic era; sustainability

achievements by business unit are included in the report, which covers corporate

sustainability efforts in 2020. Under the five sustainability pillars of Environment,

Our Employees, Empowering Communities, Digital Responsibility, and Sustainable

Supply Chain, detailed actions are highlighted. In 2020, the firm also made

changes to its labor and human rights policy. It reinforced its policies on child labor

and migrant workers. Samsung also affirmed the right to freedom of association in

the Global Code of Conduct. The study also discusses how the firm enhanced

supplier work environments and boosted its supply chain management. Samsung

created its vision for diversity and inclusion, "Be Yourself, We Build a Better

Tomorrow," and has continued to lead the efforts via coordinated activities with its

worldwide workforce. Samsung has been and will continue to run social

contribution initiatives focused on youth education and growth for the future, in line

with its goal of 'Together for Tomorrow! Enabling People.' In Korea, the business

has established the C-lab Outside initiative, which fosters the startup environment

(Samsung Global Newsroom, n.d.).

Staff / Manpower

At Samsung, they aren't only interested in technology. Every difficulty is a

chance for us to better the current situation. You'll discover a varied atmosphere

here that inspires tomorrow's solutions, where individuals strive for excellence in

all pursuits and serve as role models for future leaders. Also, The highest priority is

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to protect the health and safety of employees, who are vital to advancing global

innovation (Samsung Global Newsroom, n.d.). They shall try to enhance our

standards constantly since we think that the goal of our company is dependent on

the achievement of our employees. They're dedicated to improving our work

conditions and safety procedures. We follow severe rules and regulations and

higher standards set by Samsung Electronics in its Code of Conduct. Our policy

was created to guarantee that all employees are safeguarded and compensated

and upheld their rights. We expect that our suppliers follow the Samsung

Electronics Supplier Code of Conduct, and we actively assist them in ensuring

compliance in their workplace. Furthermore, The number of Samsung electronics

employees worldwide from approximately 157,000 employees in 2009 to 267,000

plus employees in 2020 (Vailshery, 2021).

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 MARKET SELECTION

Target Markets

Samsung's products are aimed at a wide variety of customers, from everyday

users to industrial standard equipment. Customers often range in age from their

twenties to their fifties, or even older, if they have the financial means to acquire and

utilize the Samsung goods on the market. Early adolescent to early adult (ages 14 to

25) This age range of Samsung product users is typically Samsung's smartphone target

market, as they are typically tech-savvy. This category of clients is expanding because

Samsung has seen greater spending power in recent years than in previous years. In

addition, the Adults (26 to 50 years old) group of customers represents most of

Samsung's target market since they are the ablest to acquire any of the items. Samsung

has to offer, whether they be smartphones, smart televisions, cameras, or other home

appliances such as vacuum cleaners or washing machines. The market segment will

continue to develop in the coming years (Sauce, 2019).

Korea's government and Japan's government are two possible export

destinations: The government of South Korea has announced a new semiconductor

material testing facility. The show's main attraction was a massive white machine

donated by Samsung Electronics at a fraction of its market value. After Japan placed

export restrictions on high-tech chip materials, the facility was established to encourage

local producers to develop and test chipmaking materials such as photoresists, which is

becoming increasingly important as the South strives for self-sufficiency (CNBC, 2020).

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Another prospective market is Japan, where Samsung Electronics recently announced

that it had been selected as a 5G network solution supplier for NTT DOCOMO, INC., a

prominent Japanese operator. Samsung will work with DOCOMO to deliver richer 5G

services to people, accelerate digital transformation for enterprises, and benefit society

through its breakthrough 5G technology, which includes O-RAN-compliant solutions.

DOCOMO serves approximately 82 million subscribers in Japan with a high-quality

wireless network. DOCOMO uses cutting-edge technology in its 5G network as part of

its continuous goal to offer an upgraded network and give consumers a variety of

enhanced mobile services (Samsung Newsroom, 2021).

Market Positioning in Target Markets

Segmentation, targeting, and placement on Samsung are a series of actions

carried out in a particular order. The essence of Samsung's marketing strategy is

comprised of these actions. Segmentation is the process of separating a population into

distinct groups based on shared features. Targeting is the process of identifying specific

groups of people to be product and service customers. Finally, positioning is the

process of selecting the marketing mix that is most suited to the target consumer

category (Research, 2017).

The following are the many forms of positioning that Samsung employs: First,

Samsung uses multi-segment positioning to target many segments at once by offering a

variety of product and service bundles. For example, Samsung SMART Signage

professional displays come in a variety of sizes, screen resolutions, and functions, as

well as a variety of pricing points. As a result, Samsung caters to the requirements and

desires of customers with various financial means. Second, Samsung is well-known for

10
imitating its major competitor Apple in product design, functionality, and marketing

approach. Third, certain Samsung goods, such as mobile image sensors, have a poor

turnover rate at the moment. On the other hand, these items were created with the

expectation of increased turnover in the future. The Samsung IT & Mobile

Communications, Samsung Consumer Electronics, and Samsung Device Solutions

geographic region spans more than 80 nations, both rural and urban.

Competitor Analysis

According to the LawAspect (2020), Based in South Korea, Samsung Group is

the world's second-biggest corporation by revenue, with a diverse range of products

including semiconductors, thinner panels, televisions, 3D experiences, Smart TVs and

Apps, mobile phones, home appliances, and other items. It needs to compete in the

market in such a way that it is at the top. In doing so, they have concentrated on several

factors to compete with market giants like Sony and Apple. The Samsung Electronics

company is one of the world's leading consumer electronics and component

manufacturers. It is well recognized for various electronic items, including household

appliances, televisions, and cell phones. The firm does, however, manufacture

components like display and memory panels. Device Solution, IT & Mobile

Communications, and Consumer Electronics are Samsung's three primary business

segments.

According to the Posts, R. (2021) states that the firm manufactures and sells a

variety of appliances in the consumer electronics market, including refrigerators,

televisions, monitors, washing machines, air conditioners, and air conditioners, among

others. It also makes mobile digital X-ray GM85, in-vitro diagnostics, mobile CT

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scanners, digital radiography systems, and diagnostic ultrasound systems, among other

things. Samsung also earns money in this category through producing

telecommunications equipment for mobile networks, Samsung wearables, accessories,

and IoT (Internet of Things) services, in addition to selling phones. Globally, the

business has sold over 400 million mobile handsets. Samsung's revenue comes from

memory, System LSI, and foundry companies in the last sector, Device Solutions. The

business is the world's largest manufacturer of memory chips. DRAM, mobile DRAM,

and consumer SSDs are some of the goods that come within the memory business. The

System LSI business includes Samsung's Dual-Pixel image sensor and FinFET process

technology, among other things. Finally, FinFET mobile SoCs (System-on-Chips) and

the FD-SOI make up the foundry industry (Fully Depleted Silicon on Insulator).

Distribution Methods

If shops are ready to accept stock, Samsung can sell their goods everywhere. As

a result, Samsung can sell to customers directly or indirectly. Except in the United

States, where the telecom connection requires Samsung to develop multiple phone

versions, Samsung can swiftly grow and saturate the market with their goods (s).

Samsung also has an established distribution network as a result of its current

companies. This is extremely valuable; Samsung does not require many resources to

introduce their phones and tablets to new areas. More significantly, they do not require

many resources to bring their phones and tablets to new countries. Other Samsung

goods will be distributed through these distribution channels in the future. This implies

that companies can easily advertise more than simply gadgets if they want to

(Trevzsaaga, 2016).

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 Samsung has a good relationship with global air/sea carriers and forwarders to

ensure dependable logistics. Services include air/sea freight, express, local transport,

and multimodal transport, which combines multiple modes of transportation, are

available at worldwide locations in 37 countries. Samsung SDS offers a variety of

foreign transportation options. Samsung uses data from IoT devices, boats, AIS, and

GPS to track the location and condition of the shipments. By evaluating and processing

data, we can also increase the efficiency of logistical operations. We can deliver

dependable services because of our strong partnerships with worldwide air/sea carriers

and forwarders. Multimodal transportation, which combines the advantages of air, sea,

and train, is also an option. We take care of logistical operations from departure to

arrival while offering a single point of contact, thanks to our worldwide network of 58

locations in 37 countries and our relationship with 1,900 partners (SamsungSDS, n.d.).

Sales Goals

Figure 1 Sales Eletronics’ global revenue

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 According to Vailshery, (2021) states that Samsung Electronics' global income

has consistently increased between 2005 and 2020. Samsung Electronics made

roughly 81 trillion South Korean won in revenue in 2005. (Approximately 70 billion U.S

dollars). Samsung Electronics now has a revenue of roughly 237 trillion South Korean

won in 2020. (Approximately 200 billion U.S. dollars).

PRODUCT AND SERVICES ANALYSIS

Products/Services for Export

The benefits of Samsung products are Multi-tasking with the Multi-window, Selfie

Sensor and Selfie Camera, Power Saving Mode, and Ultra-Power Saving Mode. The

other benefits are Wireless Charging and Fast Charging, Samsung Pay, True Privacy, S

Health, Palm Swipe Screenshot. Furthermore, the advantages are updated technology,

ground-breaking hardware, Android OS, Functional Features, and Reliable

Manufacturer (Samsung Global Newsroom, n.d.). While it comes to the services of

Samsung, engagement is one of the Samsung primary organization's main objectives

aimed to help to recruit and retain employees in a competitive industry. Also, aim to

meet the standard of the target market. The most popular services are the following,

Ask you intelligent assistant by BIXBY, Connect with the Samsung members

community, Switch phones in a flash makes people convenient in using the product, the

Galaxy Store, Track the wellness metrics, and Make life at home easier (Samsung

Electronics America. n.d.).

Changes to Product/Service required for Export Markets

These are the following changes of products required for export markets:

Samsung electronics changed the packaging design from plastic to sustainable

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materials that address the concerns of the environment under that sustainability policy

of the company. Also, The target market is changing to adapt to the situation the

Samsung Electronics needs to re-branding under the NEXT innovation team. It focused

on giving insights and new strategies of how the consumers evolved in future years.

Currently, the team of Samsung Electronics is motivated to study how the world is

changing from the products, partners, customers, and other industries. In Addition,

Samsung should change its design wherein the entity wants a real change towards a

premium look because the Global competitiveness is high. Samsung needs to innovate

front and back design while eliminating some old features like TouchWiz (Newsroom,

2021).

Furthermore, Samsung should change its design wherein the entity wants a real

change towards a premium look because the Global competitiveness is high. Samsung

needs to innovate front and back design while eliminating some old features like

TouchWiz. Lastly, some Samsung products are retooling the original model. The new

Galaxy Fold is more complex, better, and more robust quality than the old products.

These improve quality products: Screen Protector, Protective Cups, Protective Metal

layer, Flush hinge, Improved Hinge Mechanism, Updated Software, and Availability

(BySakshi, & Poutintsev, 2021).

Production Capacity

In partnership with its global suppliers, Samsung is always trying to create a

sustainable business environment based on a concept of justice, openness, and co-

prosperity. The business provides support to our suppliers to operate by worldwide laws

and norms to fulfill its environmental and social obligations. They also have a risk

15
management system to ensure that human rights violations and environmental

consequences are minimized during the mining process in high-risk regions. Samsung

Electronics Co. will increase its foldable device production capacity in response to

unanticipated global demand for its Galaxy Z Fold 3 and Z Flip 3 products. Its display

division would boost its annual foldable production capacity by 47 percent, from 17

million to 25 million. Samsung plans to expand its Bac Ninh facility in Vietnam in the

second half of this year, with total production expected by the end of the year or early

next year. Samsung took the choice owing to high market demand. With 920,000 pre-

orders reported in South Korea, Samsung will need to expand its facilities to meet future

sales since it will likely add three additional manufacturing lines to its present seven,

allowing the business to control production volume more flexibly (Android Authority,

2014).

PRICING STRATEGY

To maintain a competitive edge, Samsung is pursuing a competitive price

approach. Samsung pursued and created a marketing strategy that allowed it to

become an industry leader in the technology sector. Its marketing approach has been

claimed to be the most successful ever implemented by a corporation. Samsung's

pricing strategy consists of two parts: a skimming price and a competitive price.

Skimming pricing is utilized when a new or recently introduced product is sold

comparatively high due to its novelty, consumer advantages, or present Wow factor.

However, as the product becomes more established in the market, the price gradually

drops and is brought to market at a competitive price. Skimming allows the company to

change and update its prices in response to the growing competition, resulting in a

16
lower price to attract more customers. Suppose other smartphones are brought to the

market. In that case, the firm will need to decrease its costs so that people who want to

buy a Smartphone would be interested in buying one (Tringali, 2021).

Samsung's smartphones are outperforming Apple's iPhone on the market.

Samsung, like Apple, utilizes price skimming to get an advantage over its competition.

For example, Samsung Galaxy C9 Pro, the company's first smartphone with 6GB RAM,

was reduced in price in India in October and is currently available for Rs. 29,900. The

model saw its first price reduction in June, bringing the price down to Rs. 31,900 from

Rs. 36,900 at launch. To be competitive in the market, Samsung will stick to its price-

revision approach. Setting the price of a product or service depending on what the

competitor is charging is competitive pricing. The Samsung 8+, which was just released,

is the finest illustration of this, competing with the iPhone X at a lower price. Before

then, the Galaxy S6 and Galaxy S6 Edge were priced similarly to the iPhone 6 and

iPhone 6+. As a result, Samsung delivered greater features and competed on price to

gain market share. Pricing is critical for a business because it guarantees that the

company conveys the value they place on a product. This is especially true when

consumers judge and decide on the worth of a product based on the established price.

As a result, price is an important marketing component since it conveys the market and

product value of the new product to the company (Gupta, 2021).

MARKET ENTRY

Despite being one of the world's leading manufacturers of electronic products,

you might be shocked to learn that Samsung began as a low-tier manufacturing

company with low customer perception. Mainland China markets have also reopened,

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with investors focusing on concerns in the Chinese housing sector. As property

developers struggle with high debt levels, the prospect of significant demand for steel

and iron ore remains dim. Samsung Electronics' earnings are increasing because of the

new market opens (New York Digital News, 2021).

PROMOTIONAL STRATEGY

Samsung uses both a push and a pull strategy in their advertising campaign,

which includes many discounts. Samsung places its items through sales and advertising

methods by employing a push advertising strategy. Significant expenditure in traditional

advertising accomplishes it. The company uses commercial placements in key events

such as the Super Bowl as part of its push advertising strategy. Like many other

companies, Samsung uses social media platforms like Facebook, Twitter, and YouTube

to keep its online presence up to date. Samsung establishes and maintains contact with

its consumers through these social media marketing techniques. They also use social

networking platforms to make announcements about their new items. Pull advertising

strategies include initiatives like these. Samsung used to partner with celebrities to

promote its products. They never collaborated with David Beckham to promote their

Samsung Galaxy Note and Galaxy. Samsung has once again enlisted Bollywood

actress Nargis Fakhri to promote the Samsung Galaxy in India. Samsung used to

advertise its mobile phones differently, focusing its efforts on attracting audiences.

18
Samsung began the commercial by providing customers with basic information about

Samsung phones. This technique informs users about the phone's brand name by

zooming in on Samsung phones and viewing the brand name displayed on the phones.

In the case of Samsung Electronics, all of their advertising operations are geared

around providing correct information to clients through high-quality commercials, which

aid customers in deciding whether or not to purchase the items. Samsung's advertising

is focused on the empowerment of corporate brand identity and goods in general. Also,

Samsung's common global advertising strategies are TV advertisement, print

advertisement, and Point of Sale advertisement. Finally, we may conclude that

Samsung's product promotion is quite effective. Samsung builds linkages with their

goods and then utilizes those associations to become clients of their products.

Samsung primarily employs two kinds of advertising: direct and indirect. They market

their products indirectly through television, the internet, and other media. Samsung used

the indirect technique to inform customers that the new goods are safe to use

(Sadnan.nahid041, 2020).

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 CURRICULUM VITAE

ANDRIE JOHN B. BACLAAN

Date of Birth: December 3, 1999

Age: 18 years old

Gender: Male

Height : 5’2

Weight: 53 kilos

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 Birthplace: Davao City

Religion: Apostolic Ministries for Christ

Civil Status: Single

City Address: Blk 3 Lot 13 Stella Mafori Subd. Upper Madapo Hills

Bankerohan Davao City

Parents

Father: Armin C. Baclaan

Mother: Mary Luz B. Bangcore

EDUCATIONAL ATTAINMENT

School Level School Year

St. Augustine International School Grade 6 2012-2013

AMA Basic Education Grade 10 2015-2016

AMA Basic Education

CLUB/ORGANIZATION

Club Position School Year

JPAMA PIO 2021-2022
SASEC Logistic Officer 2020-2021
Supreme Student Government Vice President 2015-2016
Math-Sci-Com President 2014-2015
Business Club Vice President 2015-2016
Math-Sci-Com Auditor 2014-2015

Apostolic Ministries for Christ Organization

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Club Position Year
AMC President 2017-Current
AMC Youth Coordinator 2020-Current

SEMINARS AND TRAININGS ATTENDED

Seminar Venue Year

Tax Webinars Ateneo de Davao 2021-2022
University
Connecting Careers Ateneo de Davao 2021-2022
University
Leadership Program AMA Basic Education 2014-2015
Music on Fire STI College 2014-2015
Anti-Bullying Program AMA Basic Education 2015-2016

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