Samsung:
Building a Global Brand
My
- M987Z247
Eli M987Z254
Loan –
M987Z234
Ocha M987Z212
Joice M987Z224
12-inch TVs
Memory chip
Plasma TVs
Multifunction cellphone
Samsung
Flat-screen display
Other digital devices
Positioning until the mid-1990s:


Low-cost manufactured products for betterknown brands.
Selling consumer products (electronics) at
very low price.
After 1996, several shocks in Samsung’s
competitive environments:
The
global memory chip market went into
tailspin due to slackening demand and excess
capacity.
Asian
financial crisis in 1997.

Samsung: GOOD TECHNICAL QUALITY
but
LOW-COST
LOW-MARKET IMAGE
SAT AT BACK OF THE STORE
“Redefining Samsung’s Brand Image”


Stylish, high quality brand commanding a
premium price
Establish a unique competitive position by
developing technique and design

Technical Innovation and R & D

New Product Development and Design

Encouraging Marketing Programs


Focusing on digital technologies
Shifting substantial resources into technical
research and development:
◦ Spent about 9% of revenue (US$ 5 billion) on R &
D in 2005
◦ Employs nearly 27,000 researchers (including
2,400 PhDs) to work in 17 research centers
around the world.


To make the customers consider that
Samsung’s products is worth of price
To collaborate closely with the firm’s
engineers, manufacturing division, marketers,
and market researchers.

Assigning 450 designers in 6 design centers
in the world to ascertain customers tastes
and preferences.

To build customer awareness of the products:
◦ Ensuring the availability, service after sale, and
communicating Samsung essential value and
attributes around the world, to make sure the
consumers are worth the money.

Reorganize the firm’s distribution channels,
particularly in developed market.
◦ Pulling the products out of the low-price discount
chains and distributing them trough qualityoriented electronic stores



Consolidated the firm’s advertising to a
single global advertising group.
Launching new design product.
Extensive use of contemporary promotional
tools:
◦ Eg. sponsorship Olympic games, Internet, and
movie advertising



Global value of Samsung’s brand increased
more than 200% from 2000 – 2005.
Sales grew to more than US$56 billion in the
fiscal year ending in Dec 2005
Operating income hit a record US$ 8 billion


Samsung has successfully redefined its image
as one of leading electronics companies all
over the world.
To develop an organization, the well
marketing plans is one of the keys to be
successful.


With the new marketing strategy, Samsung
impressed customers of the high-brand
image.
Slogan “design awakens all your sense” has
been familiar worldwide.
References


Kotler, et al. (2006), Marketing Management,
Pearson, 12th Edition
Etzel, et al. (2004), Marketing, McGraw Hill,
13th Edition