Samsung
Building a Global Brand
Group 7 - Members
Veron
Yoseph
M987Z210 M987Z213
Bee
Ken
Duy
Moon
M987Z220 M9870114 M987Z218 M987Z241
Background
 Samsung
Electronics was
established in 1969 in Suwon,
South Korea.
 It was the largest South
Korean company and become
flagship of-Samsung group.
Background

Focuses on four core markets:
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.
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?
Issues came
What
happened
with
Samsung in
1996?
Issues came
Because of low cost strategy:
1. Capacity > Demand
2. Sales and profits decreased
3. Down-market image
Crisis in 1997
Losing $170 million/month
Solutions
How to
overcome the
issues?
Marketing Strategies
Establish a unique competitive
position and design by doing:
a. Technical innovation and R&D
b. New product development and
design.
c. Build samsung brand
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
R&D. (employs nearly 27,000
researcher)

B. New Product Development and
Design

Involves a team of product
designers (collaborate with
firm’s engineers, manufacturing
people, marketer, and market
researchers).
C. Build the Samsung Brand (1)

Build customer awareness.

Be sponsor of game
Build customer awareness
C. Build the Samsung Brand (2)

Ensure availability of products.



By reorganizing the firm’s
distribution channels like Best buy,
Circuit city.
Service customer after sale.
Build image of Samsung brand
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.
Build image of Samsung brand
b. Focus on PDP (Plasma Display
Panel) and cell phone
people use them everyday
The Results




The global value increased>200%
from 2000-2005.
Overtaken Sony as the most
valuable consumer electronic brand.
Sales grew to>$57 billion in 2005.
Operating income was $8 billion.
60
50
40
30
20
Samsung
Google
10
0
2.Microsoft
8.Nokia
20.samsung
2.Microsoft
3.IBM
8.Nokia
17.cisco
20.samsung
28.sony
38.google
58.yahoo
38.google
Billion
Interbrand,
www.interbrand.com
SWOT ANALYSIS
SAMSUNG 1980-1997
Helpful
To achieve the objectives
Harmful
To achieve the objectives
Internal factors
Strength
•Brand leader in selling cheap
products
• No.1 in global memory chip
market
External factors
Opportunities
Threats
•Stay in technological developing •New competitors
industry
•Cost of raw materials
•Cooperate with many distribution •Economic Crisis
channels such as Wal Mart
Weaknesses
•Low profit
•Low image
•Low satisfaction in product
SWOT ANALYSIS
SAMSUNG – after 1997
Helpful
To achieving the objective
Harmful
To achieving the objective
Internal factors
Strength
•Brand leader in selling high-Quality
products ex: LCD
•High Profit
•Good Image
•Satisfaction in product
Weaknesses
•Spend huge money on Technical
Innovation, R&D, New Product
Development and Design and Brand
Building
•Risk in failure in development of
new product
External factors
Opportunities
Threats
•New competitors
•Stay in technological developing
industry
•Cost of raw materials
• Cooperate with many distribution
• Economic Crisis
channels ex: Best Buy and Internet.
Answer the question
1. Are marketing decisions important?
Yes, because:
a. Marketing helps company selling its
products and makes the products
become well-known.
b. Marketing will increase sales and
profit.
Answer the question
2. Does marketing create value for
customers and shareholders?
Yes if the marketing strategies is
successful:
a. Marketing will help company to
know what the customer needs.
b. To let customer know about
company’s products.
Answer the question
c.
If marketing is successful, the sales
and profit will increase. At the same
time the shareholders will get more
dividend from such profit.
Answer the question
3. What constitutes effective marketing
practice?
Internal: Leader from CEO, Sales
department, Marketing department,
R&D department, budget, etc.
External: Economic condition,
culture, people, etc.
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.
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.
Answer the question
Those decisions can be summarized
by doing a good strategic planning
as follows:
a. Do situation analysis
b. Make a marketing plan
XIE XIE 謝謝
Q&A