SAMSUNG ELECTRONICS MARKETING MANAGEMENT CASE – 1 GROUP 06
HISTORY OF SAMSUNG Samsung Electronics was founded in 1969 inSuwon, South Korea as Samsung Electric Industries originally manufacturing electronic appliances such as TVs, calculators, refrigerators, air conditioners and washers.
SAMSUNG ELECTRONICS Today, Samsung brand is the best known South Korean brand in the world and in 2008. Business week rated Samsung as 21st on the Top 100 Best Global Brands 2008. Samsung overtook Japanese rival Sony as the world's leading consumer electronics brand. history
PRODUCT Price 4P’s IN MARKETING Place PROMOTION
Product In 1970, Samsung Electronics made cheap 12-inch television sets under Sanyo label. Now, capturing the number one position in the global memory chip market and pioneering the development of flat-screen displays, plasma TVs, multifunction cellphones, and other digital devices.
Product • Semiconductors : DRAM, SDRAM, flash memory, and hard drives • Digital displays : LCD displays, Plasma displays, and OLED displays • Home Electronics : TVs, DVD players, Blu-ray players, home cinema systems, set-top boxes, and projectors • Mobile devices : mobile phones, MP3 players, digital cameras, and camcorders • Computing products : monitors, laptops, UMPCs, CD and DVD drives, laser printers, and faxes machine; and • Home appliances : refrigerators, washing machines, microwaves, ovens, vacuum cleaners, and air conditioners.
“design awakeness all your senses”. product Samsung investeda lot of money in research and development, in order to meet what customers needs and wants. Samsung spent about 9% of revenue, amounting to around $5billion, in 2005 in research and development.
SAMSUNG ELECTRONICS United States Top 5 Innovators 2008
SAMSUNG ELECTRONICS Europe Top 5 Innovators 2008 These rankings comes from IP Solutions, part of Thomson Reuters : The world’s leading source of intelligent information for businesses and professionals.
PRICE Samsung sells product with price that worthed, if we compared it with the functions, benefits and technology. Samsung is in the process of building an image as “a stylish, high quality brand commanding a premium price”
PLACE Samsung has its own stores which can be found around the world. Not only in Asia, but also in America, Europe, Australia, and Africa. At the stores, we not only can buy the product that sold, but also feel the experience of digital lifestyle. One of Samsung’s store in America
PLACE • Samsung also has other distribution channels: Best Buy and Circuit City, who known as quality-oriented electronics speciality stores. • Bell Microproducts, who known as one of the world's largest storage-centric value-added distributors.
Internet advertising Promotion Product placements Sponsorships
Product placements • Hotel chains (such as Hilton), where most in-room technology was now dated and required early replacement to retain competitive advantage.
sponsorships • The Summer and Winter olympics games • Chelsea FC shirt sponsorship deal • Horse jumping (Samsung Superleague).
Internet advertising • In 2005 ,the firm devoted nearly 15 % of its media budget allocated to page -topping banner ads on over 400 Internet sites • Link to mainstream entertainment : Fox’s movies Fantastic Four • Display in the film
Strengths • Existing knowledge and experience of electronics market • Strong global presence with strong brand and customer base, in 2009 according to Interbrand Global value of Samsung’s brand is US$ 17,518 million compare its competitor, Sony, which is US$ 11,953 million.
2009 2008 Brand Country of Origin Sector Brand Rank Rank Value Value Value
Strengths (cont’d) • Well diversified and differentiated product line, to meet changing customer needs. Samsung electronics has 4 business areas to cover customer electronic needs. • Design with an attractive styling that catching the pulse of customer, as the result of the development of Samsung‘s new products that involveteam of product designers.
Strengths (cont’d) • Market share: Global market share of mobile phone increase from 18% in 2004 to 19.1% in 2009. Memory chip Industry is 27% in 2009 compare with 21% at the end of 2008. • It is the biggest manufacturer of liquid-crystal display panels with 23% share in 2005, increase to 26.2% in Q1 of 2009. 2009 Figures
Strengths (cont’d) • Loyal customer & customer satisfaction: Samsung Electronics reports that its “Anycall” mobile phone topped the American Customer Satisfaction Index (ACSI) (2005) • Cost Competitiveness by mass Production Samsung Electronics expanded production dramatically to become the world's largest manufacturer of DRAM chips, flash memory, optical storage drives
Strengths (cont’d) • Technology With an excellent research and development capabilities, they spend a high percentage of revenue on R&D. It resulted in global leadership in the television segment, and in improving its position from the third to second player in mobile phones with their innovative products.
weakness • Customer perception of weak product attributes like Durability • Different perception on “worth the price” product on each person that difficult to cover. • Not pro-active coming out with unique and leading model • Focus on mass market instead of niche market
weakness (cont’d) • Huge investment on Research & Development Consolidated Financial Statement years ended Dec 31, 2007 and 2006 (audited report) 1 US$ = 938 Won
Opportunities • Increasing on electronics consumer market • Strong customer demand for innovative products & value-added features • High % of Younger population, which can be expand a new market now and in the future Population by Age and Sex, More Developed Countries: 2009
Threats • Increasing competition • DRAM (Q1-2009)
Threats(Cont’d) • Increasing competition • LCD TV (Q3-2008)
Threats (cont’d) • Increasing competition • Mobile phone (Q1-2009)
Threats (cont’d) • Decreasing Operating profit margins Consolidated Financial Statement years ended Dec 31, 2007 and 2006 (audited report) 1 US$ = 938 Won
Threats (cont’d) • Economic Slowdown, makes demand for electronics product weaken.
Conclusion The conclusions drawn from the SWOT analysis were that Samsung’s strengths carry more weight than its weaknesses.If Samsung can properly exploited opportunities that exist, it will navigate the threats with no significant difficulties.
Octawati Buntaran M987Z249 Phailin Thampramuan M987Z216 Nguyen Pham Nhut Thien M987Z240 Thank you Yanni Putri M987Z255 Rahul Kohli M987Z207 Nong Hong Sa M987Z231