Samsung

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Samsung
Building a Global Brand
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Group 7 - Members
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Background

• Samsung Electronics was established in 1969 in
  Suwon, South Korea.
• It was the largest South Korean company and
  become flagship of-Samsung group.

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Background

• Focuses on four core markets

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Background

• Start out in 1970 making cheap 12-inch television
  sets under the Sanyo label.
• Samsung Electronics morphed into
• innovative company.
• Number one position in the global chip market.
• Pioneering the development of digital devices.

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Background

• Mid 1990s Cost driven
• Low-cost products
• Me-too products - very low prices
• From 1996 Change everything except your spouse
  and children
• ? Why? What? How?

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Issues came

• What happened with Samsung in 1996?

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Issues came

• Because of low cost strategy
• Capacity gt Demand
• Sales and profits decreased
• Down-market image
• Crisis in 1997
• Losing 170 million/month

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Solutions

• How to
• overcome the
• issues?

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Marketing Strategies

• Establish a unique competitive
• position and design by doing
• Technical innovation and RD
• New product development and design.
• Build samsung brand

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A. Technical Innovation R D

• Control its own technical destiny, not just copy
  others.
• By focusing on core technologies such as
  semiconductors, large area LCDs, display driver,
  and mobile telephony.
• Spends higher of revenue on RD. (employs
  nearly 27,000 researcher)

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B. New Product Development and Design

• Involves a team of product designers
  (collaborate with firms engineers, manufacturing
  people, marketer, and market researchers).

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C. Build the Samsung Brand (1)

• Build customer awareness.
• Be sponsor of game

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Build customer awareness
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C. Build the Samsung Brand (2)

• Ensure availability of products.
• By reorganizing the firms distribution channels
  like Best buy, Circuit city.
• Service customer after sale.
• Build image of Samsung brand

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Build image of Samsung brand

• a. Brand orientation
• Samsung hired new manager Eric Kim to handle
  marketing stuff, the first thing Eric Kim do was
  giving all the advertisement to FBC, Fact Based
  Communications (FBC) is a European-based media,
  in order to unify style.

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Build image of Samsung brand

• b. Focus on PDP (Plasma Display Panel) and cell
  phone
• people use them everyday

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The Results

• The global value increasedgt200 from 2000-2005.
• Overtaken Sony as the most valuable consumer
  electronic brand.
• Sales grew togt57 billion in 2005.
• Operating income was 8 billion.

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Brand valuation in 2005
Billion
Interbrand, www.interbrand.com
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SWOT ANALYSISSAMSUNG 1980-1997
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SWOT ANALYSISSAMSUNG after 1997
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Answer the question

• 1. Are marketing decisions important?
• Yes, because
• Marketing helps company selling its products and
  makes the products become well-known.
• Marketing will increase sales and profit.

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Answer the question

• 2. Does marketing create value for customers and
  shareholders?
• Yes if the marketing strategies is
  successful
• Marketing will help company to know what the
  customer needs.
• To let customer know about companys products.

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Answer the question

• If marketing is successful, the sales and profit
  will increase. At the same time the shareholders
  will get more dividend from such profit.

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Answer the question

• 3. What constitutes effective marketing practice?
• Internal Leader from CEO, Sales department,
  Marketing department, RD department, budget,
  etc.
• External Economic condition, culture,
  people, etc.

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Answer the question

• 4. Who does what in marketing and how much does
  it cost?
• The leader, sales department, marketing
  department, supplier, etc. It will cost according
  to products, budget, and customer.

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Answer the question

• 5. What decisions go into the development of the
  strategic marketing programs for a particular
  good or service and how can those decisions be
  summarized in an action plan?
• The decisions depend on the objectives of the
  company, customer orientations, profit
  orientations, budget, etc.

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Answer the question

• Those decisions can be summarized by doing a good
  strategic planning as follows
• Do situation analysis
• Make a marketing plan

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XIE XIE ??

• Q A