(B.O.S.S.)
Placing you so far ahead of the competition…
you will see nothing but clear waters.
Associating Korea with High-Tech Engineering
Proposal prepared for: Samsung Electronics
Prepared by:
Chris Catania
Jennifer Cheeks
Chris Kasavich
Jessica Lyons
Lea Ruka
Amy Zhang
December 3, 2008
TABLE OF CONTENTS
I. Executive Summary ............................................................................3
II. Background .........................................................................................5
III. Situational Analysis ............................................................................8
IV. Objective ...........................................................................................10
V. Methodology .....................................................................................11
VI. Timeline and Budget .........................................................................16
VII. Breakeven Analysis ..........................................................................17
VIII. Samsung: The Seoul of Innovation ...................................................18
IX. The B.O.S.S. Advantage ...................................................................22
X. Qualifications ....................................................................................23
2
I. Executive Summary
“Buy American.” The statement evokes feelings of patriotism: of doing the right thing
for your country by buying from a local shopkeeper, or the Ford dealer down the road. But it is
often juxtaposed with “Buy Japanese” out of a sincere belief that Japanese products – especially
in technology and electronics – are better made, provide superior quality, and represent a better
value to the consumer. The “Buy American” philosophy unfortunately has not made it to Japan:
for example, a recent survey showed 91% of Japanese respondents had no intention of ever
purchasing an iPhone (designed/originating in California, manufactured primarily in China).1
As a leader in nearly all of its market segments, Samsung Electronics is already
associated with high-value, high-performance home entertainment components, computers,
audio devices, and home appliances. As the #1 rated electronics brand worldwide, Samsung is
recognizable and associated with excellence.2 However, Samsung’s closest competitor – Sony
(the previous #1 Interbrand-ranked brand, and current #1 with BrandBarometer) – has a
differential advantage beyond product quality. Worldwide, customers have come to associate
products of Japanese manufacturing with excellent engineering and high-tech pioneering. “Buy
Japanese” means you get advanced technology you can be proud to show your friends. But,
what does it mean to buy Korean? More importantly, how can Samsung help create the same
perception of Korea and enjoy the benefits of an enhanced Korean brand?
Blue Ocean Strategic Solutions (B.O.S.S.) proposes to conduct a research study to
determine:

current perceptions of Korea in selected target markets

why people buy/don’t buy Samsung, including their awareness of Korean manufacture

what “excellent engineering” means to the target markets, and how customers learn a product
or brand has “excellent engineering”
1
2
http://techon.nikkeibp.co.jp/english/NEWS_EN/20080618/153419/
http://en.wikipedia.org/wiki/Samsung_Electronics
3
This web-based survey will be conducted in partnership with vendors selling Samsung
products, such as Best Buy and Amazon.com. Respondents will be purchasers of Samsung
products as well as customers purchasing Sony, Mitsubishi, LG, and other competing brands.
Upon completion of data collection the results will be scrubbed and analyzed to identify
prevailing trends. Our firm will present a summary of findings as well as recommendations on
how best to proceed with a marketing plan to:

enhance the perception of Korea as an originator of high-tech engineering

link that perception to Samsung to elevate the Samsung brand

leverage existing strategic partnerships to share benefits and diffuse the costs of enhancing
the brand of a country
Our prediction is that we will need 12 weeks to finish the initial recommendation report
and summary of research, and this portion of the project will cost approximately $88,000.
4
II. Background
Developing a marketing plan to enhance the image of Korea in Samsung’s target market
requires a solid background on Korea, Samsung, and the electronics industry.
Korea
As one of the oldest continuing civilizations in the world, Korea is one of the wealthiest
countries in Asia and a source of both promise and concern in the international community.3 The
democratic South Korea was established in 1948 and is a major economic power in Asia, having
the fourth-largest economy in the East and the 13th in the world.4 Called the “Miracle on the Han
River,” South Korea’s economic explosion was fueled by the export of high-tech goods. As a
world leader in information technology systems, South Korea has contributed to the world
economy through exports of semiconductors, LCD displays, computers, and mobile phones, led
by Samsung and their competitor LG.5 This tech boom was concurrent with the computerization
of the car, leading to the success of Hyundai as a high-quality, low cost automaker. South Korea
also aims to be the global leader in broadband access (currently 2nd behind the United States).
As a first-world country centered on technology and exports to fuel the GDP, South Korea is
affected by the same economic concerns as the United States.
While the economy has boomed in South Korea, such profits have not been realized in
Communist North Korea. Its strong isolationist policy restricts trade, and concerns about nuclear
proliferation have further hampered building a stake in the worldwide economy. A full 25% of
the North Korean GDP is spent on the military, compared to less than two percent of its
counterpart south of the Demilitarized Zone. 6
3
R.L. Forstall, R.P. Greene, and J.B. Pick, "Which are the largest? Why published populations for major world urban areas vary so greatly", City
Futures Conference, (University of Illinois at Chicago, July 2004) – Table 5 (p.34)
4
IMF (2007). "World Economic Outlook Database, October 2007". 2007. IMF. Retrieved on 10/31/2008
5
http://en.wikipedia.org/wiki/South_Korea
6
http://en.wikipedia.org/wiki/North_Korea
5
Samsung
Korea’s largest company and the best known Korean brand in the world,7 Samsung
Group is composed of numerous international businesses united under a common brand. The
three stars (the word “Samsung” is Korean for “three stars”) of the brand are Samsung
Electronics, Samsung Engineering, and the shipbuilding arm Samsung Heavy Industries. The
company is also involved in financial services, investments, and chemical production. It is a
leader in many Korean domestic industries and owns both a mall and a state-of-the-art medical
center. Founded in 1938 and incorporated in 1951, Samsung has risen quickly as a leader in
technology.8
Samsung Electronics is the world’s largest consumer electronics company, and in 2005
passed Sony as the most popular consumer electronics brand in the world. 9 As a global market
leader in more than 60 product categories, Samsung is an innovator in the areas of
semiconducting chips, personal computer components, digital displays, HDTVs, laptops, and
personal entertainment devices, to name a few.
Samsung Electronics also manufactures
refrigerators and other home appliances under the same brand.
It is difficult to overstate the value of the Samsung Electronics brand. Interbrand found
the Samsung Electronics brand doubled in value between 2001 and 2004, rising to $12.5B in
brand equity, and currently values the brand at $16.8B.10
Already strong in its core
competencies, Samsung has stated it will continue to focus on high-value products related to
their semiconductor, flat-panel, and telecommunications arms. The company has also stated its
marketing intentions are to preserve a holistic approach to strengthen the brand, instead of
individual marketing plans.11
7
http://www.wi-fitechnology.com/displayarticle342.html
http://www.bookrags.com/wiki/Samsung_Group
9
http://www.wi-fitechnology.com/displayarticle342.html
10
http://www.interbrand.com/case_study.aspx?caseid=1085&langid=1000
11
http://www.samsung.com/us/aboutsamsung/companyprofile/digitallvision/CompanyProfile_DigitallVision.html
8
6
The Electronics Industry
The electronics industry boom was concurrent with the boost in consumer spending that
coincided with the 1990s and early part of this decade. Discretionary income made it possible
for consumers to purchase the latest MP3 player or plasma screens. With the dot-com bust and
now the mortgage crisis, it is feared the electronics industry will feel the hit as consumer
spending declines. Electronics retailer Best Buy saw a 10% drop in sales in September 2008,
mirroring an industry-wide drop of 13.8% for the month. Holiday spending is expected to remain
flat compared to last year, in an industry predicated on 4-5% annual holiday season increases. 12
With an increasingly narrow margin of quality in the electronics industry due to
improvements in manufacturing and miniaturization, it is believed that as we progress through
the digital era, products will be primarily distinguished less by quality and function, and more by
brand.13
Despite the current economic crisis, Samsung is continuing to funnel company
resources into R&D, assuring it can effectively maintain a differential advantage and honestly
promote a brand focused on innovation and design. Samsung is, therefore, well-positioned to
remain market leader, with its strong and valued brand name coupled with a healthy cash flow
and low debt.
Samsung’s competitors are Nokia and Apple in the telecommunications market, Hynix in
the semiconductor market, and Sony, Panasonic, and LG in the digital media/flat panel market. 14
12
http://www.businessweek.com/technology/content/oct2008/tc20081015_401380.htm?campaign_id=rss_daily
http://www.samsung.com/uk/aboutsamsung/companyprofile/digitallvision/CompanyProfile_DigitallVision.html
14
http://premium.hoovers.com/subscribe/co/competitors.xhtml?ID=55277
13
7
III. Situational Analysis
As stated in the background, the advancements of the digital age mean consumers are
increasingly making purchasing decisions based on brand, rather than function. This is good
news for Samsung in pursuing a strategy to enhance the brand of Korea: tying the already-strong
Samsung brand to an enhanced Korean brand is a sound strategy for increased success.
Market competitor Sony already enjoys the benefits of this strategy. Consumers purchase
Sony products because of both the excellence and quality of the Sony brand, and the belief that
Japanese products are inherently superior to similar products made elsewhere. Samsung is no
longer in the position of having to overtake Sony as either a leading brand (depending on which
ranking is reviewed) or sales leader.
As a reference, a current bellwether of consumer
electronics sales performance is a company’s share of the 42” flat panel market, owing to the
product’s availability from nearly all electronics brands, cheapness of manufacture, and
relatively narrow quality range (i.e. there is much less difference between a Sanyo 42” and a
Sony 42” as compared to an RCA and a Bose radio). According to market research in this area,
Samsung has 18.9% of unit share and growth, with Sony having 10.4%.15
While there are many product lines to consider across the electronics market, it is safe to
say that Samsung’s chief goal is to remain at the top, rather than struggle to gain market share.
And, as Samsung is already a market leader without the assistance of a strong Korean tie-in,
building this perception of Korea and tying it to Samsung should prove valuable in securing
Samsung’s place atop the electronics market.
There are multiple issues to address before a marketing plan may be implemented, such
as:

Which market? As an international leader, it is advisable to focus efforts where they will be
most effective. 48% of Samsung Electronics sales occur in either the US or Europe, with an
additional 21% in Korea itself.16 Selling Korean excellence to Koreans is not an effective
use of marketing dollars, at least in the short term. Our firm recommends Samsung focus on
the US and European markets for this effort.
15
16
http://www.displaysearch.com/cps/rde/xchg/displaysearch/hs.xsl/7034.asp
http://www.samsung.com/global/business/lcdpanel/aboutus/AboutUs_GlobalSalesNetwork.html
8

What does the market already believe? When the target market sees “Made in Korea,”
will they think of the tech-boom South Korea, focused on broadband access and information
for all…or communist North Korea and nuclear test launches? Do they know Samsung is
Korean? And what do “excellent engineering” and “high-tech pioneering” mean to the
members of the target market? Our proposed research plan will address these issues.

What is the best strategy for creating this association? This is a proposal to enhance the
brand of Korea in the eyes of target markets in the US and Europe. It will require significant
resources and a commitment at all levels of Samsung to the process. But, how does a
company enhance the brand of a country? Interestingly, it has been done before: Sony, with
a concentrated initiative beginning in 1963. Our company has examined the best practices
that Sony and its founder Akio Morita implemented that took the perception of Japan from
post-WWII shambles to the international home of technology, and we have created a flexible,
ambitious plan that utilizes some of these aspects, improves upon others, and leverages the
positives that already differentiate Samsung from Sony.

What will this cost? Section VI shows a detailed breakdown of estimated research and
related costs that will enable our firm to deliver a report on how best to move forward, along
with tailored suggestions and ideas on specific next steps. Post-research, our firm will be
happy to coordinate with Samsung on implementation of the recommended action items.
9
IV. Objective
The objectives of this project are twofold:
1. Enhance the perception of Korea as a high-tech country.
2. Link that perception to Samsung.
Accomplishing one goal without the other is meaningless, and accomplishing either will
require an initial period of information gathering. A thorough research process is advisable to
determine baselines on current perception of Korea, buyer motivations, and related information.
This information will be used to inform a marketing plan and will also provide metrics that can
be evaluated through the implementation of a marketing plan to determine the ongoing success
of the initiatives.
At B.O.S.S., our initial objective is to conduct this research and information gathering
initiative and present our findings to Samsung. Upon the conclusion of the initiative, we look
forward to customizing a marketing plan using the information gathered to enhance the
perception of Korea as a high-tech country.
10
V. Methodology
Big goals require big solutions…and at Blue Ocean Strategic Solutions we believe such
solutions require detailed and exhaustive research as the first step on the road to success. Our
initiative will consist of eight steps:
1. Gather general information –target market demography, industry information, competitor
research.
2. Segmentation – pinpointing who will receive the survey.
3. Survey creation and programming – It is crucial to create a survey that asks the right
questions succinctly to maximize completion. Correct coding is also essential.
4. Partner selection - Determining what to ask will be as important as choosing our partners in
presenting the survey to the market.
5. Survey implementation – in concert with our chosen partners, we will roll out the survey to
the target market
6. Data review – an analysis of trends in the target market related to the issues at hand.
7. Presentation of recommendations – while our firm may have a broad concept of how to
proceed, we will utilize the data to refine our recommendations on moving forward.
8. Ongoing support – our firm will remain on-hand to work closely with Samsung to integrate
the research and implement a multiphase plan to elevate the brand of Korea.
1. Gather General Information
Owing to careful review of publicly-available Samsung resources our firm has
determined which geographic target markets are most advisable to pursue.
As Samsung
Electronics offers products ranging from semiconductors to refrigerators, however, our firm
looks forward to receiving guidance from our client regarding more specific target market
demography. There is much anecdotal and pre-existing survey information concerning the
average age and related demography for consumer electronics purchases…but we at B.O.S.S.
believe in asking the client what they want (or in this case, who they want), rather than providing
what is not wanted.
Furthermore, our firm will review Samsung’s chief competitors and the
industry at large, to build on our base of knowledge and add to the quality of the survey. We will
11
also review existing literature and surveys regarding the current perception of Korea in the target
markets, such as Gallup poll information.
2. Segmentation
Prior to survey creation, it will be important to establish exactly who we want to survey,
and not simply in terms of age, geography, or other demography. As our firm proposes to utilize
a web-based survey tool in conjunction with established vendor partners, it is important to
demarcate who will be surveyed with these partners.
We believe it equally essential to survey purchasers of Samsung products, and purchasers
of competitors’ products. It is just as important to know why people buy Samsung, as it is to
know why they do not. Are Sony customers actively thinking of the Japanese high-tech brand
when they purchase a 58” Sony VEGA HDTV? Do Samsung (or LG) customers know the
company is Korean, or do they think it is Japanese? These are important questions to answer,
and as such our firm will survey, within previously-established parameters of the target market,
customers purchasing Samsung, LG, Nokia, Sony, and/or Panasonic products.
3. Survey Creation and Programming
The flexibility of a web-based survey tool will enable us to craft one body survey that can
respond to the answers of the consumer. Our firm recommends this option because:

Cost/benefit – compared to focus groups and print surveys, the cost/benefit for web-based
survey tools is a significant positive.

Time – setting up focus groups can take weeks. Mailed surveys take days. Web surveys are
restricted only by internet connection speed.

Ease of analysis – proper coding allows for simple data exportation to advanced statistical
analysis packages.17
17
http://www.scb.se/Grupp/Omscb/_Dokument/Werner.pdf
12
While a web format may allow for flexibility, it is not permission for sloppiness in
research protocols. Our firm will carefully draft a body document that will ask key questions to
determine:

Product and brand purchased

Knowledge of that product and brand that led to purchase, including country of origin

If applicable, why a Samsung product was chosen over comparable competitor products

If applicable, why a comparable Samsung product was not purchased

What “high-tech” means to the consumer
The survey will be mostly restricted to selections of product, multiple choice options
allowing “Other” responses to be written-in, and select short answer write-ins for open-ended
questions such as the “high-tech” question.
It will be important to create an impartial survey that is equally able to ask a Samsung
purchaser why they did not buy a Sony product, and vice versa. We do not want to introduce
bias into the tool by revealing the survey was commissioned for Samsung. As such, the survey
itself will be coded and hosted on our own firm’s website.
Coding will be handled in-house by our IT staff, who will frame the survey decision tree
created on paper into an iterative online survey tool. Data security will be a top priority, and the
survey will be coded so that raw data can be easily exported into an SPSS or related software
package for analysis. Extensive in-house beta testing will precede any live rollout to work out
any bugs.
4. Partner Selection
Our firm proposes Samsung leverage existing vendor partnerships in presenting the
survey to consumers at point-of-purchase.
Samsung consistently demonstrates it is an
enlightened corporation dedicated to the communities in which its vendors do business, such as
with the annual Four Seasons of Hope $100,000 donation to the Carlos Santana Milagro
Foundation, in conjunction with retail partner Best Buy.18 This kind of work, in conjunction with
18
http://www.pr-inside.com/samsung-s-four-seasons-of-hope-and-r866169.htm
13
vendor incentives, places Samsung products prominently in stores and maintains positive
relationships. Asking key vendors to assist with this research is not a burdening request.
Consumer Reports shows the three top online retailers of electronics are Crutchfield,
B&H, and Amazon.19 As established Samsung partners and firms focused on customer
satisfaction, B.O.S.S. believes these companies would be very accommodating in presenting a
link to our designed survey to consumers: however, should Samsung prefer other online
channels, they can certainly be accommodated. We also recommend the “big box” stores of Best
Buy (U.S.) and DSG (Europe, owners of PC World and PC City, among other outlets) in
presenting the survey opportunity at point of purchase.20
Web customers, upon purchase, will receive a link with their order confirmation to the
survey. Customers in physical stores will find a special code on their receipts linking to an
external website. Cashiers in these stores will draw their attention to the website and remind
them of the incentive to participate: all respondents will be entered into a drawing to win one of
five 42” Samsung plasma HDTVs, along with complimentary home installation provided by the
retailer linking to the survey. While this incurs a minimum cost to the retailer, it allows the
retailer to offer/upsell additional services during said installation, such as a home theater
consultation, HDTV color calibration, and more.
5. Survey Implementation
Our firm will work with Samsung to determine the most mutually advantageous “drop
date” for the web survey. There are pros and cons for nearly all choices: the summer season
theoretically offers more time for consumers to go online and fill out the survey, but purchases
drop. The holiday season typically sees a boost in electronics spending – 2008 is predicted to
remain flat – but consumers may be so hurried during the holidays that surveys are not filled out.
Samsung may have other marketing/market research initiatives ongoing that could conflict with
certain dates. Coordination is key.
Our firm recommends keeping the survey live for six weeks. The “lifespan” of a web
link or printed survey link on a receipt is much shorter than even a direct mail piece, and as such
we feel keeping the survey website live longer than this would not prove advantageous.
19
20
http://www.electronichouse.com/article/amazon_bh_and_crutchfield_top_rated_in_electronics/
http://www.mobiletoday.co.uk/news.aspx?id=34818&fid=150
14
6. Data Review
Throughout the six week window our data managers will review, clean, and analyze
responses. Open-ended answers will be preserved in full for presentation to our client, but will
be cleaned and interpreted for statistical analysis. We will present Samsung with a bound copy
of all verbatim responses for reference post-research.
Post-survey, our data managers will analyze the results and determine what members of
the target market know about Samsung and its competitors, how they made their buying
decisions, and related views of Korea and high-tech engineering. Combining this research with
information gathered in the first step of our intelligence-gathering process, we will be able to
customize a plan to move forward to enhance the brand of Korea as a high-tech country.
7. Presentation of Recommendations
As stated, our firm has conducted a thoughtful review of the Morita initiative to elevate
Sony and Japan in the eyes of the international community. Morita and Sony made many
remarkable advances…and numerous costly mistakes. We will use this as a rough template,
insert Samsung’s established differential advantages and our research findings, and present a
series of recommendations on how Samsung might best move forward with an initiative to
elevate the perception of Korea as a high-tech country in the eyes of the US and UK target
markets.
8. Ongoing Support
Depending on the target market’s survey results, the perception of Korea in Samsung’s
consumer base may already be positive. If the target market associates “Korea” with the hightech, democratic South Korea, our job may prove simpler (and cheaper) than if the target
market’s first impression is Communism and nuclear missile testing.
Either way, proper integration of the research is key in developing the marketing plan.
This initiative will require significant time and resources, and our firm will stand by Samsung
throughout the process and assist with the totality of the marketing process.
15
VI. Timeline and Budget
Step
1. Gather General
Information
Description
Secondary data research and marketing
intelligence
Discuss with Samsung the B.O.S.S.
2. Segmentation
preferred segmentation strategy, make
changes per client
3. Survey Creation Design of a flexible web-based survey tool,
and Programming coding
4. Partner
Selection
Discuss with Samsung preferred housing of
survey routes: online, brick & mortar
5. Survey
Implementation
Rollout on target date discussed with client,
passive site monitoring throughout
6. Data review
Data scrubbing, coding, analysis
7. Presentation of
Recommendations
Preparation of initial recommendations to
inform Marketing Plan
Survey Premium
5 42" Samsung plasma televisions
(PN42A450 model)
Project
Duration
3 weeks
6 weeks
3 weeks
40
$12,000
10
$3,000
80
$24,000
10
$3,000
20
$6,000
100
$30,000
20
$6,000
n/a
Totals: 12 Weeks
16
Billable
Hours
Cost (2
consultants,
$150 per
hour)
$4,000
280
$88,000
VII. Breakeven Analysis
We at B.O.S.S. believe that with any marketing plan, an important and critical aspect is to
analyze and quantify what the breakeven for the project will be. In order to justify the expense
incurred in the hiring of B.O.S.S. we will look at both the costs incurred to obtain our
professional services as well as the amount of incremental sales that are required to justify the
project.
As our timeline shows, the services provided by B.O.S.S. will have a cost of $88,000.
This number represents a small fraction of the reported $113.8MM spent in the US market last
year by Samsung, a figure which excludes online media. 21 To put this in perspective, Samsung
would spend the equivalent of 0.08% of its annual US marketing budget on this project.
Still, $88,000 is a material investment for a company.
According to Samsung
Electronics’ 3Q results22, Samsung realized a 22% gross profit margin on sales of its Consumer
Electronics. Therefore, in order to cover the cost of this project Samsung would only have to
increase sales of its LCD market by $400,000, which represents 0.00038% of its $105B in sales
for 2007 or 0.0023% of its $17B in 2007 LCD sales.23 Given the average sale price for the 3Q
2008 of $474 per Flat Panel Television (FPTV), Samsung would have to increase sales by 844
units. This is a very small amount given 2007 saw FPTV sales of 90M units and 2008 is
expected to end with 120M FPTV’s sold.24
21
http://www.adweek.com/aw/content_display/news/agency/e3i1ceb4468ca0772e73eaca17661a67981
22http://www.samsung.com/us/aboutsamsung/ir/ireventpresentations/earningsrelease/downloads/2008/20081024_conference_eng
.pdf
23http://www.samsung.com/us/aboutsamsung/ir/financialinformation/annualreport/downloads/2007/00_SEC_07AR_E_Full.pdf
24http://www.samsung.com/us/aboutsamsung/ir/ireventpresentations/earningsrelease/downloads/2008/20081024_conference_eng
.pdf
17
VIII. Samsung: The Seoul of Innovation
As stated, the foundation of this plan is the successful re-branding of Japan as a
technological powerhouse by Sony in the latter half of the 20th century. We will review how
Akio Morita engineered this turnaround, discussing strengths and weaknesses, in this section,
and also emphasize how mistakes made by Sony can be turned into successes by Samsung.
Beyond this foundation, we cannot know the specifics of this marketing plan until the
first step – research – is complete. We do believe, however, that there will be key points to
emphasize in the marketing plan that will be common to any derived initiatives from the
research. We will briefly review these as well, and give estimates to what we feel these
initiatives may cost. In short, however, the marketing plan is this: to enhance and re-message
Samsung’s existing marketing approach and materials to join Samsung’s strong brand and
superior product line to the Korean brand.
The Morita Plan: Analysis and Recommendations
Akio Morita (1908-1997) became co-founder of what was to become Sony Corporation
when he was 25 years old. Four years after the end of World War II, the company invented
magnetic recording tape and sold its first tape recorder in Japan. In 1958 Morita made the
decision to change the name of the company to Sony – a hybrid of the Latin sonus and the
American colloquialism “sonny.”25
A brilliant engineer and a born marketer, Morita had a laser focus on brand identity
believing it, coupled with the opportunities presented by the shrinking world economy of the
50’s and 60’s, presented unlimited opportunity for growth. His marketing concept focused on
brand-name identification and brand responsibility.26
Sony’s globalization truly began when Morita moved his entire family to America in
1963, to better understand the market. Sony became a success in the country by offering
superior products under a superior brand.
But how did that translate to the Japanese brand? Morita was a passionate nationalist and
proudly espoused “Made in Japan” on every Sony product (it was also the title of his bestselling
25
26
http://en.wikipedia.org/wiki/Akio_Morita
http://www.time.com/time/time100/builder/profile/morita.html
18
book). He tirelessly met with heads of state, international vendors, and even salespeople to talk
about Sony products. All of his marketing innovations focused on placing Sony on the national
stage, and the superior brand with a superior product was always linked to the country trying to
rebuild from the rubble of World War II. His goal from the beginning was to create innovative
and high-quality consumer electronics that would put Japan back on the map.
What did Morita do well?

Mass Appeal – when the Walkman was invented, it had at least three different names in the
world. Morita insisted it be known as the Walkman universally. He believed in universal
recognizability: now, “Walkman” appears in nearly every dictionary.

Personal contact – Morita became the face of Sony in America and across the globe. Stating
his fervent belief in the superiority of the Japanese and their products, his nationalism rubbed
many the wrong way, but few could argue with the message after trying his products.

Steadfast focus on a succinct message – Sony makes superior products, made in Japan. What
was initially treated as suspect in the United States became accepted knowledge after
customers tried the products: “I bought a Walkman, it is superior, and it is made in Japan.”
With time and focus on the same message, customers came to believe that superior products
were made in Japan, which was Morita’s overarching goal for his home country.
Furthermore, it required no added marketing resources: nearly all Sony advertising included
this message in its underlying fabric, as opposed to separate marketing campaigns for Sony
and Japanese nationalism.27
Clearly, Morita’s plan was a success. But this is 2008, and Korea is not emerging from a
war. How can Samsung adopt this rough template, making adjustments and improvements to
both fit the current times and economy, and improve upon Sony’s efforts? While our firm looks
forward to conducting further analysis into Samsung’s differential advantages, we can offer one
recommendation in line with this reasoning:

Leverage strategic partnerships – for all his marketing genius, Morita’s nationalism and
independence cost him dearly on more than one occasion. For example, Sony’s refusal to
license Betamax to other manufacturers – instead preferring to dictate their own industry
standard – cost them in the VHS/Betamax format war. Compare this to the current initiative
ongoing in Russia between Samsung and Korean automaker Hyundai, where the enlightened
27
http://www.evancarmichael.com/Famous-Entrepreneurs/1158/Lesson-2-Give-Your-Marketing-a-Mass-Appeal.html
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companies realized the significant overlap for big-screen TV’s and luxury cars, and currently
utilize joint-marketing and promotions to reinforce their positions as leaders in their
respective markets.
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B.O.S.S. strongly recommends Samsung investigate expanding this
partnership to the US and UK target markets as the company works to enhance the Korean
brand. After all, a rising tide lifts all boats: a Korean brand associated with high-tech
engineering will also benefit Hyundai, and Samsung should pursue methods that enhance the
effect while diffusing the cost.
Samsung: The Seoul of Innovation
Our firm recommends Samsung adopt a moniker similar to “Made in Japan” or “Intel
Inside” as the basis of this initiative. It should be easily adopted by Samsung, easily remembered
by the consumer, and symbolic of the message that Korea is a high-tech country associated with
excellent engineering. We recommend The Seoul of Innovation. This play on words is designed
to quickly associate Samsung’s already high-quality technology with Korea, and adds passion
with the homonym for “soul.” We will be happy to partner with Samsung in devising another
value statement, should it be desired.
It should be noted that while The Seoul of Innovation is not recommended as the
overarching brand message of the company, it may be an option worth considering. Statements
which may or may not be such messages taken from Samsung materials currently include:
o Leading the Digital Convergence Revolution
o Embracing Innovation at Every Opportunity
o Life Unlimited
o Creating New Lifestyles for the World29
It is difficult to determine which of these, if any, currently serves as a company “motto.”
Our firm believes The Seoul of Innovation preserves much of the verve of the aforementioned
statements, while adding the needed link between Samsung and Korea to elevate the Korean
brand. The Samsung brand is strong enough to do the heavy-lifting of elevating the brand
of a country, but only if it is linked correctly, consistently, and pervasively.
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29
http://english.chosun.com/w21data/html/news/200809/200809130002.html
http://www.samsung.com/us/aboutsamsung/samsunggroup/annualreport/SAMSUNGGroup_GroupAnnual2006.html
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B.O.S.S. looks forward to completing the detailed research plan that will help lay further
groundwork for the marketing plan to enhance the brand of Korea. We can, however, provide
preliminary recommendations as to three focus areas for Samsung.
1. Holistic Marketing – regardless of the final construction of the marketing plan, it must touch
every aspect of the company. Media messaging is just as important as packaging and
customer contact. Samsung has already stated its commitment to a holistic approach: it will
become even more important with the linked brand of Korea.
2. An Emphasis on Personal Contact – just as Morita made it a point to personally meet with
Sony consumers – from vendors to retailers to final customers – Samsung senior
management should enhance current efforts to build similar personal relationships.
Reinforcing the positive message of The Seoul of Innovation is, we believe, best done in
person.
3. Strategic Partnerships – the Hyundai partnership is one example, but Samsung has many
friends across the globe. Could packaging vendors be partnered with in an innovative way to
enhance the perception of the product and link that perception to Korea? Could the home
delivery staff of Best Buy be asked to present a Samsung product, upon final installation,
differently than competitors? B.O.S.S. will examine these scenarios and others in designing
a custom marketing plan.
One final point: to the extent that Samsung incorporates this messaging into pre-existing
media communications, public relations, packaging and related materials, and personal
encounters with government officials, manufacturers, vendors, and consumers, the added
ongoing cost of this plan should be negligible. The upfront cost of redesigning materials and
messaging, however, may be considerable. Our firm looks forward to conducting the stated
research plan and reviewing other intelligence to determine the most cost-effective way to link
Korea with excellent engineering.
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IX. The B.O.S.S. Advantage
Why choose B.O.S.S.?
Samsung Electronics is not a small business hoping to survive today’s economic climate:
in most estimates, you are the top electronics brand in the world. You got there by presenting a
superior product, differentiating yourself from the competition, and not only through hard work,
but smart work.
Our philosophies are not dissimilar. At B.O.S.S., we know the top companies in the
world require effective and innovative solutions to meet complex problems. We believe the
most effective solutions use powerful information resources to inform detailed marketing
strategies that build new partnerships, enhance existing partnerships, and exceed the goals of the
client in a cost-effective manner.
We look forward to working with you.
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X. Qualifications
Chris Catania holds a BBA in Finance and a minor in Marketing from The University of Texas
McCombs School of Business. Mr. Catania is currently pursuing his MBA from the University of
Houston.
His professional career has involved conceptualizing, organizing, and implementation of
multiple marketing plans involving heavy newspaper, radio, and television in the Houston area. In
addition, Mr. Catania has extensive experience in high end retail sales and customer relations.
Jennifer Cheeks has a Bachelor of Science degree in Information Systems Technology and is currently
seeking her MBA at the University of Houston. She has four years of experience in data cleansing and
utilizing business analytics software. Her data management and technology skills are a great asset to our
research efforts.
Chris Kasavich holds a Bachelor of Arts degree from Trinity University, and is currently enrolled at the
Bauer College of Business in Houston, TX. He has worked in the nonprofit fundraising field for seven
years and assisted with the rebranding of the multi-million dollar Rice Annual Fund for Student Life and
Learning in 2003.
Jessica Lyons has a Bachelor of Arts degree and a Business Foundations Certification from The
University of Texas at Austin and is currently working towards an MBA at The University of Houston’s
Bauer College of Business. She has four years of experience in financial services and two and a half years
in management as a supervisor. Ms. Lyons has also been responsible for the implementation phase of
multiple marketing campaigns at her firm.
Lea Ruka has a Bachelor of Science degree from Texas A&M University specializing in international
business and relations and is currently seeking a Masters in Accountancy at the University of Houston.
She has extensive experience in domestic and international accounting, bringing a useful financial
analysis and budgeting skill set to this project.
Amy Zhang holds a bachelor’s degree in Public Finance and a minor in Accounting from Zhongnan
University of Economics and Law in China, and is currently seeking her MBA in University of Houston.
She has conducted extensive research on the background of Korea and its bearing on this proposal.
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