SAMSUNG- Building a Global Brand

1. SAMSUNG- Building a Global Brand Southern Taiwan University of Technology Marketing Management

2. GROUP V.

3. Content • Background • SWOT analyses • Samsung´s Starting Step • Several Shocks • New Competitive and Marketing Strategies • Tehnical Inovation and R&D • Human Resources of Samsung • Product • Price • Marketing Programs to Build the Samsung • The Result • At Present • Vision

4. Background • 1969 • the world largest electronics company • 2009 revenue - $117.4 billion • 2009 Net income - $8.33 billion • Headquarters in Samsung Town, Seoul, South Korea • Samsung group • Affiliated companies • Employees –164,600 Anja Grgic

5. Background • Samsung Electronics focuses on four areas: • Digital Media • Semiconductor • Telecommunication Network • LCD Digital Appliance • Three key strengths • Three strategic approaches in management • New value • Inspire the World, Create the Future • Green Samsung Anja Grgic

6. SWOT analyses STRENGTH • 40 years of experience on global market • Ability to make and implement new major strategy • R&D department(27000 researchers>24000 PHDs, 17 centers around the globe) • Close collaboration between samsung employees • Strategic formation of designers and marketing experts around the major world capitals • Stylish and cool design • World awareness of Samsung brand • Excelent promotion strategies • High sale Marko Marinic

7. SWOT analyses WEAKNESS • Very dependent on advertisment • Dependent on material resources • Lack of their own well known software platform • risk of sight damaging (3D TV) Marko Marinic

8. SWOT analyses OPPORTUNITIES • Think of samsung brand before start shopping • Five key fields: • Capturing • Display • Storage • Processing • Connectivity • SAMSUNG Future Life and Style Marko Marinic

9. SWOT analyses THREATS • New global market shocks • Material time delivery and cost • Lack of electricity around the world • Brand softening • New technologies and designs from other competitors • World too indebted to buy new products very frequently • War – North Korea Marko Marinic

10. Samsung´s Starting Step • 1970 : making cheap 12”TV sets under Sanyo label • morphed into a technically innovative company • No. 1 in the global memory chip market • pioneer in plasma TVs, multifunction cellphones, and other digital devices • Mid 90‘s : primarily produced technical components or low-cost manufactured products • selling me-too consumer products through discount chains like Wal-Mart at very low prices Sudiana Colyn

11. Several Shocks • The global memory chip market went into a tailspin • Sales and profits of Samsung were softening • Down-market image of Samsung brand • The Asian Financial Crisis in 1997 • Samsung’s capital was almost completely eroded by losing 170 billion won per month Sudiana Colyn

12. New Competitive and Marketing Strategies • Focusing on the customer needs • Developing and marketing technically superior products • Building an image of Samsung as a stylish, high-quality brand commanding a premium price • Using technical innovation and design to appeal to younger and relatively upscale customer segments around the world Sudiana Colyn

13. Tehnical Inovation and R&D • 1998 : Samsung changed from focusing on production mechanism to Marketmechanism • 2005: Spent $ 5 billion on R&D • 2009: Invested $ 4,3 billion to make the world largest memory chip Tran Thi Thanh Loan

14. Human resources of Samsung • Nearly 27,000 researches including 2400 PhDs – working in 17 research centers • 450 designers are assigned to 6 design centers in world capital cities Tran Thi Thanh Loan

15. Product Samsung Electronics focuses on four areas Digital media Telecommunication network LCD digital appliance Semiconductor Television, computer Mp3, DVD players… Fax machine, Mobile phone… Desktop monitor, TFT-LCD, … NAND,flash memory, SRAM,SDRAM … Tran Thi Thanh Loan

16. Price • Samsung sells product with price that worthed, if we compared it with the functions, benefits and technology Price • Samsung is in the process of building an image as “a stylish, high quality brand commanding a premium price” Tran Thi Thanh Loan

17. Marketing Programs to build the Samsung Brands • Effective action of marketing managers and market researchers of Samsung • Communicate Samsung brand around the World • Recognize the firm in the developed Markets Chambuu Battulga

18. Marketing Programs to build theSamsung Brands • To focus on its promotions- Samsung launched its first major brand-building advertising campaign in 2001 • Use new promotion steps-it has been principal sponsor of both the summer and winter Olympics game Chambuu Battulga

19. Marketing Programs to build theSamsung Brands • In 2005 the firm devoted nearly 15 percent of its media budget to pagetopping banner ads on over 400 Internet sites • Provide links to mainstream entertainment products from partner company, such as Fox's 『Fantastic Four』 Chambuu Battulga

20. The Result • Samsung’s Innovation and Marketing Strategy was a success • Overtaken Sony as the most valuable consumer electronics brand • In 2005: • Sales: USD 56 Billion • Operating income: USD 8 billion Marie Nikki Martinez

21. At present • Samsung continues to respond with advanced technologies, competitive products, and constant innovation • No. 1 in the US digital TV market for the 4th consecutive year Marie Nikki Martinez

22. Vision • New Technology • Innovative Products • Creative Solutions • Market Oriented Enterprise Marie Nikki Martinez

23. Q&A?

24. Thank You for listening!