BUILDING A GLOBAL BRAND
_GROUP
7_
Hoang Thi Ngoc Huyen
M987Z239
Hyacintha FAUSTINO
M997Z
Krissapon Apinyaupatum
M997Z241
Antun Paradzik
M997Z223
Nguyen Thi Thu Trang
M997Z210
Le Van
M997Z246
OUTLINE
I. INTRODUCTION : Beginning & history
II. A successful story
III. 1990 Crisis & Explaination
IV. Rebranding, the beginning of a new story
V. New R&D Strategy
VI. SWOT analysis
VII. 4 P’s analysis
VIII. Conclusion
INTRODUCTION
Samsung Electronics Company was established in Korea
in 1969. It is the largest « Chaebol » in South Korea
During that time, the company only manufactured
cheap TV sets labelled under the « Sanyo brand name »
Over the time, It became one of the world's leading
electronics companies, specializing in digital appliances
and media( flat screen displays, plasma TVs,
cellphones…) , semiconductors, memory chip.
A SUCCESSFUL STORY 1/2
A double competitive strategy:
Production of technical components or low-cost
manufactured products for well-known firms
like Dell, HP, General Electric…
Sales of consumer products under the Samsung
brand at very low prices through discount
chains like Wal-Mart, Carrefour
A SUCCESSFUL STORY 2/2
 Its success comes from its resources that can be
divided into 3 parts:
Technology: it has innovative technology in R&D
market.
Human resources: it has great human resources and
policies. It does not care about employee’s background
but they only hire employees who have skills. Then
they reward those employees through development of
their abilities.
Corporate strategy: creating partnership with
different companies to access on markets Samsung
could not enter before.
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 $170 million/month
SOLUTIONS
How to
overcome the
issues?
REBRANDING: THE BEGINNING OF A NEW STORY
 Samsung appear more stylish, and high
standard brand with technically superior
products
 They tackle the digital market (digital
world Vs. analog world)
 Collaboration with designers, engineers,
marketers to achieve the new strategy
 Reorganization of distribution channels
NEW R&D STRATEGY
 Innovative product development
 17 research centers around the globe
 9 % of the firm’s total revenues invested in
R&D ($ 5 Billion)
STRENGTHS
Strong management and dynamic human resource
with knowledge and experience of electronics market.
Strong global presence with strong brand and
customer base (Samsung is one of twenty the best
global brands from 2009).
Well diversified and differentiated product line, to
meet changing customer needs (focus mainly on 4 core
digital technologies) -> gain an advantage over the
competitors, cover customer’s electronic needs.
STRENGTHS
Orienting product strategy to “a stylish, high quality
brand commanding a premium price” -> design product
with high quality in attractive styling that catching the
pulse of customer in different countries.
Marketing strategy with making extensive use of
more contemporary promotion tools (such as product
placements, sponsorships and internet advertising)
contribute in part to well_known brand raising.
Spend a high percentage of revenue on R&D -> an
excellent research and development capabilities.
Best Global Brands-2010
Sector
Change
in Brand
Value
Rank
14
14
United
States
Business
Services
23,219
5%
15
15
Germany
Automotive
22,322
3%
16
16
France
Luxury
21,860
4%
17
20
United
States
Electronics
21,143
37%
18
17
United
States
Tobacco
19,961
5%
19
19
South
Korea
Electronics
19,491
11%
20
18
Japan
Automotive
18,506
4%
Brand
Country of
Origin
Brand
Value ($m)
Previous
Rank
WEAKNESSES
"Samsung is not yet a brand that can live
without the product”.
Some still perceive Samsung as a low-cost brand
(Customer perception of weak product
attributes like Durability).
Focus on mass market instead of niche market.
Marketing Management
16
OPPORTUNITIES
Samsung is well known because of products’
differentiation.
•
• New developed products : “Eco-Product”, “Good EcoProduct,” or “Premium Eco-Product”
•Marketing for all people , not only young, also older
generations
• The high end value driven proposition helps increase the
Market Share.
• Cooperation with other companies.
THREATS
The consumer durable industry is not in the best
of health.
•
•Downtrend in the consumer durables market,
due to increased of price inputs and continuing
price erosion
• Competitors can produce the new product with
the competitive price
• New companies enter IT sector
PRODUCT
Price
4P’s IN
MARKETING
PROMOTION
PLACE
PRODUCT
• Emotional : Attractive styling, Modern image,
Additional value
• Functional : Innovative product plus high quality
• Unique Selling Point
• Mass production which allow cut-cost and
standardize parts
• Samsung’s product was developed to be suited for
different users in different countries
PRICE
• Premium price (Being worth price to pay)
• Customer's perceived value of the product is
high
• Great range of price ranking, customized
price category
• Don’t want to pursued competition with
Chinese low prices
PLACE
• Pull out of low price discount chain
• Push product through the electronic
special stores, ex; IT Mall, Best Buy,
Circuit City
• Samsung official shops
• Point of purchase: in every store,
Samsung products must be on the
visible place
Promotion
• Product placement: mainstream
movies, music, way of life
• Sports sponsorships :
- Olympic summer and winter games
from 2010 until 2016
- Football: African Football Cup 2010
- Biggest sponsorship deal in British
football history- FC Chelsea
MARKET SHARE
CONCLUSION
Samsung brand became worldwide
know
A symbol of reliability and quality
 Challenge for the future : maintain
their position , expand their range of IT
products
 The company also needs to improve
some specific product market shares
 The next achievement will be how to
reach an Iconic level.
THANK YOU!