Report (Samsung)

7/24/2019 Report (Samsung)

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Acknowledgement

I wish to express my sincere gratitude to my colleagues formotivating me and helping me in the case study report, I owe a debt

of gratitude to my Mentor Sir Mohammad Ahmed Butt for the

vision and foresight and guiding me in the case analysis of Samsung

Electronics, without his encouragement and guidance this report

would not have materialized I am grateful for their constant

support and help

M. Adeel Sarwar

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Introduction of the case

I was assigned as a marketing consultant in Samsung Electronics, founded in

January 13, 1969. !e current "E#$s% of our com&any are Mr. 'won #!

(yun, Mr. )oo*'eun +oon and Mr. Jong 'yun. ounder of our "om&any-s

Mr. )yun* "!ull ee. Samsung is a Sout! 'orean multinational

conglomerate com&any it-s !ead/uartered in Samsung own, Seoul $Sout!

'orea%.

My Jo0 as a marketing consultant-s to analye t!e case and to formulate t!e

strategies for t!e year 24 w!ile seeking all t!e &ossi0le as&ects and

dilemmas t!at !ow our com&any will create distincti5e ca&a0ilities, !ow it

will 0ecome a market dri5en organiation, !ow it would create 5alue for its

customers and most im&ortantly focusing on com&etitor intelligence and

continuous creation of su&erior customer 5alue, t!roug! t!e dee&

understanding of t!is conce&t, a0ility to im&lement and manage all t!e

elements, as well as t!e constant management and u&dates of t!e strategy, it

is 0elie5ed t!at t!e organiation will a0le to ac!ie5e its goals.

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!istory of the case

!e office &ark in nort!ern ew Jersey !ardly looks like a &lace t!at &lays a

role in cutting*edge design. (ard 0y a !ig!way interc!ange, t!e two story

0uilding is a0out as distincti5e as w!ite rice. )ut clim0 to t!e 2ndfloor andyou-ll see designers from Samsung electronics co. studying in &ains*talking

detail t!e American consumer &syc!e. !ere, engineer ee )yung Moo

watc!es from 0e!ind a two*way mirror as t!ree women and two men stuff a

stainless steel refrigerator wit! t!e contents of !alf* doen 0ags of groceries,

After t!e fi5e !a5e finis!ed and gi5en t!eir o&inion on se5eral &otential

configurations of drawers and com&artments, ee and two ot!er rus! into t!e

room to take &!otogra&!s and note e7actly w!ere t!e 8s!o&&ers !a5e &ut t!e

ice cream, c!icken, 0eer, milk and ot!er food. 8:e want to know t!e taste of

American customers 0ecause we need to de5elo& &roducts t!at fit t!eir life

style, says ee.

(alf a world away, "!oi :on Min sits in a windowless room on t!e ground

floor of a Seoul skyscra&er and e/ually unlikely s&ot to find t!e leading edge

design. (e s&ends !is days $and often !is nig!ts% in front of two &iano

key0oards, a &!alan7 of mi7ing consoles and doens of synt!esiers. :it! !is

!ead&!ones on, !e !its a note, listen intently ten tweak a few setting and !itsanot!er key. (is &rimary mission in t!e two year old la0; coming u& wit! a

suite of 0ells, 0oing and 0ee&s and 0ues for digital gadgets t!at will

immediately say 8Samsung to users worldwide. In t!e &ast sim&le sounds to

0e sufficient, 0ut now we realie !ow im&ortant sounds are in user

interfaces,-- "!oi Says.

ee and "!oi are foot soldiers in Samsung-s continuing assault on t!e world

of cool. Samsung, t!e Sout! 'orean com&any !as 0egun gearing all it doesfrom financing to decision making to training and la0s, to make Samsung

finely tuned rece&tor of all t!e t!ings t!at make its &roducts must !a5es in an

increasingly com&etiti5e market &lace. (undreds of dollars !a5e 0een s&ent

s&iffing u& t!e look, feel and function of e5eryt!ing from refrigerator to

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was!ing mac!ines to cell&!ones and M&3 &layer, and t!e focus !as 0een on

researc! of t!e sort ee and "!oi are doing.

8:e want to 0e t!e Mercedes of !ome electronics Says +un Jong +ong,

Samsung c!ief e7ecuti5e.

Samsung won fi5e citations in t!e industrial design e7cellence awards

$Ii5al. And since 2, Samsung !as earned a total of

1 citations at I?? design contests in t!e @.S, Euro&e and Asia.

8Samsung is t!e &oster c!ild for using design to increase 0rand 5alue and

market 5alue, Says ?atrick :!itney,


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its inno5ati5e design and egalitarian a&&roac!, Samsung !as emerged as t!e

0est*selling 0rand in !ig!*end Cs in t!e @.S, and t!e world largest "M needs im&ro5ement in organiation.

&pportunities

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Economic conditions of @SA are relati5ely moderate.

Samsung is reasona0ly e/ui&&ed to take care of t!e social s!ift.

!e com&any is e7&eriencing consistency in go5t. &olicies.

Samsung is e/ui&&ed to take care of new tec!nology and incor&orate

into t!eir o&erations.

!e international en5ironment for Samsung a&&arently seen fa5ora0le

for Samsung.

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'hreats

@SA is e7&eriencing social s!ift w!ic! is 0ringing a0out im&act on to

t!e electronic industry.

Electronic industry is su0Gect to new legislations and laws.

Electronic industry is su0Gect to new tec!nology.

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Strategic Marketing objectives(Samsung Mobile phones)

ocusing on organiation-s controls and coordinates t!e acti5ities of its

5arious 0usiness units and staff functions.

>e*engineering t!e cor&oration to &ro5ide 0est /uality mo0ile &!ones,

focus on total /uality management, 0uilding distincti5e com&etencies,

rein5enting t!e organiation and strategic &artnering.


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ocus more on inno5ati5e &roducts t!at is totally new for t!em and t!at

0rings c!ange in t!eir life and cell &!ones t!at 0ecome t!eir stylestatement.

Must &ro5ide useful and 5aria0le outcome criteria, o0Gecti5es must 0e

stated on facts and in /uantifia0le terms, must 0e realistic and

consistent.

o continuously 0roaden our customer data0ase 0y o0taining new

information on customer c!aracteristics and needs.

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Segmentation strategy

Market Segmentation is a &rocess of di5iding a market into meaningful,

relati5ely similar, and identifia0le segments or grou&s. It !el&s t!e

marketer to distinguis! w!at marketing mi7 will 0e more a&&ealing for

a &articular grou& of consumers. Segmentation a&&roac! !el&s in more

effecti5e strategic &lanning, 0ecause it !el&s utilie necessary resources

and &ower in order to reac! t!e ultimate sales.Samsung is one of t!e few glo0al cor&orations t!at !a5e 0een

successfully &racticing multi segment targeting.

As t!e num0er of mo0ile su0scri0er-s increases t!roug!out muc! of t!e

world and &enetration rates reac!es saturation le5els, Samsung mustin5ent new ways to differentiate t!em and attract new customers andgenerate !ig!er re5enues. A well*de5elo&ed segmentation strategyoffers t!ese &ossi0ilities, as well as &ro5iding a means of increasingcustomer loyalty and reducing c!urn. !e traditional a&&roac! tosegmentation 0ased on features, demogra&!ics and &ayment met!ods isno longer ade/uate and re/uires a com&lete re*e5aluation in t!e face oft!e c!anging needs of mo0ile &!one end*users.

Samsung needs to de5elo& a 0etter understanding of t!eir customers so

as to de5elo& s&ecific &roducts t!at matc! customers- needs. !ecreation of mo0ile communities, 0randing, de5iceser5icecustomiation, rele5ant content, &ortal strategies and retail distri0utionare among t!e added elements t!at !a5e to 0e in &lace.

Identify a generic market t!e com&any will 0e focusing on a larger

market t!an it !o&es to reac!, 0ut at t!e same time searc! for suita0letarget market at t!is 0road le5el.

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A&&ealing to a 0road cross*section of t!e market t!roug! offering

differentiating features t!at make customers willing to &ay &remium&rices, e.g., su&erior tec!nology, /uality, &restige, s&ecial features,

ser5ice, con5enience

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Mar-et.'arget strategy

Market targeting consists of e5aluation and selecting one or moresegments w!ose 5alue re/uirements &ro5ide a good matc! wit! t!eorganiation-s ca&a0ilities. It-s t!e &rocess of &lacing t!e 0uyers in a

&roduct*market into su0 grou&s so t!at t!e mem0ers of eac! segmentdis&lay similar res&onsi5eness to a &articular &ositioning strategy.

Identify customer grou&s using descri&ti5e c!aracteristics and com&are

res&onse rates 0y &lacing t!e information in a ta0le and com&are t!emto measure customer res&onsi5eness to a marketing mi7 suc! as

&roduct usage rate, &otential segments can 0e identified.

ocus more on yout! as t!ey lo5e to e7&erience new gadgets and want

to 0e get aware and recognied t!roug! new tec!nologies.


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/ositioning strategy

?ositioning may focus on an entire com&any, a mi7 of &roducts, as&ecific line of &roducts, or a &articular 0rand, alt!oug! &ositioning isoften centered on a 0rad. ?ositioning initiati5es are closely linked to

0usiness strategy 0ecause strategic &ositioning com&rises t!e efforts oft!e 0usiness to deli5er su&erior 5alue to its customers.

ain a rele5ant, distinct and enduring &osition 0y t!e targeted 0uyers

t!at t!ey consider im&ortant.

Interact more wit! customers to analye t!eir &erce&tion as &ositioning

of t!e 0rand is determined 0y t!e 0uyer-s &erce&tion and &erce&tion ofcom&etitors strategies.

oing !ead*to*!ead wit! t!e com&etitor, matc!ing eac! ot!er in e5ery

way. o 0e successful, t!e attacker must !a5e su&erior resources and0e willing to continue longer t!an t!e com&any attacked.

?ositioning can 0e central to customers- &erce&tion and c!oice decisions

w!ile ensuring t!at all t!e elements of t!e marketing &rogram are

consistent and su&&orti5e.

!e focus of t!e &ositioning conce&t s!ould 0e functional, sym0olic or

e7&eriential.

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/roduct Strategy

A&lanfor marketinga good t!at is foundedu&on an analysisof t!e

nature of t!e intended market, !ow muc! market s!areis to 0eac!ie5ed, !ow t!e good is to 0e marketed and !ow muc!&rofitisantici&ated. Most0usinessmarketing directorswill de5elo&a clear andrealistic&roductstrategy&riorto t!e launc!of a new &roductinto itsintended market.

Analye mo0ile &!one features and attri0utes t!at are salient to

customers.

Mo0ile &!one s!ould 0e more 5ersatile and kee&ing u& t!e idea to 0emore user friendly t!en com&etitors suc! a okia, I?!one etc.

ocus more on t!eir designs as Samsung always !as a com&etiti5e

ad5antage on 0eing trendy and design oriented.

A com&re!ensi5e M>< $Market >e/uirements


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"om&ressing t!e time s&an for &roduct de5elo&ment so t!at it creates

an im&ortant com&etiti5e ad5antage.

et effecti5e feed0acks and generate res&onse from customers w!ile

designing t!e mo0ile &!one-s &rototy&e, ask t!em a0out t!e weaknessesand strengt!s of t!e &roduct &rototy&e and w!at are t!e maGor areas towork more.

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/ricing Strategy

?rice offers a fast and direct way of communicating wit! t!e 0uyer,

?rice offers a way to /uickly attack com&etitors or, alternati5ely to

&osition a firm away from direct com&etition.

ocus on determining &ricing o0Gecti5es, w!ic! guide

strategy de5elo&ment.

It-s necessary to analye t!e &ricing situation, taking into

account demand cost, com&etition and &ricing o0Gecti5es.

ocus on &enetration &ricing, it-s designed to ca&ture market

s!are 0y entering t!e market wit! low &rice relati5e to t!ecom&etition to attract 0uyers.

Set Calue 0ased &ricing, sets &rices &rimarily, 0ut not

e7clusi5ely, on t!e 5alue, &ercei5ed or estimated, to t!e

customer rat!er t!an on t!e cost of t!e &roduct or !istorical&rices.

?ricing strategy of Samsung needs im&ro5ement as &ricing

im&acts all 0usiness functions.

It re/uires continuous monitoring 0ecause of c!anging

e7ternal conditions, t!e actions of com&etitors, and t!e

o&&ortunities to gain a com&etiti5e edge t!roug! &ricingactions.


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0hannel strategy

#0tain t!e latest researc! and insig!t on c!annel management to

ena0le &artners and resellers to more effecti5ely market and sellmo0ile &!ones effecti5ely and efficiently.

Samsung needs ret!inking im&ro5ement in c!annel strategy

earn !ow to select &artners for ma7imum im&act, structure&artner agreements and audit for success.

ocus on 5ertical marketing system $CMS% for 0etter

coordination wit! t!e distri0ution c!annel.

Identify w!ic! distri0ution intensities are feasi0le, taking into

account t!e sie and c!aracteristics of t!e market target.

Selecting t!e alternati5es t!at are com&ati0le wit! t!e &ro&osed

market target and marketing &rogram &ositioning strategy.

!e intermediaries t!at are selected s!ould &ro5ide a5enue to t!e

market segment$s% targeted 0y Samsung.

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It-s useful to &roduce a ma& of e7isting or &lanned c!annel

strategy, to allow com&arison wit! com&etitors and to identify

new com&etitors. "!annel ma& analysis s!ould em&!asie end*users.

"!annel modification and migration decisions re/uire careful

analysis.


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/romotion Strategy

?romotion strategy consists of &lanning, im&lementing andcontrolling an organiation-s communications to its customersand ot!er target audiences.

ocus on ad5ertising using 5ariety of media $ews&a&er,

magaines, tele5ision, radio, internet, direct mail, outdoorad5ertising% wit! creati5e message design.

Setting communication o0Gecti5es.


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ecommendation to the management

!e cor&orate directions, 5ision, mission formulating cor&orate strategy

needs im&ro5ement.

Samsung needs im&ro5ement to infuse market dri5en c!aracteristics in t!eir

all ty&es of strategies.

Segmentation, market targeting &ositioning needs re5isit.

?ricing strategy needs im&ro5ement.

?romotion strategy needs im&ro5ement.

Samsung needs ret!inking im&ro5ement in c!annel strategy.

(>M needs im&ro5ement in organiation.

)uilding amica0le working relations!i&s wit! ot!er de&artments of

Samsung and its customers.

ocus on t!e software tec!nology to en!ance 0est features of

mo0ile &!ones.

Samsung needs reengineering in its >< eam to find uni/ueness

and identity in t!eir cell &!ones t!at really s&eaks to its customers.

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Annexures

Samsung Electronics launc!ed its first mo0ile &!one in 19KK, in t!e

Sout! 'orean market. Sales were initially &oor and 0y t!e early 199sMotorola !eld a market s!are of o5er 6 &ercent in t!e countryLs mo0ile&!one market com&ared to Gust 1 &ercent for Samsung. SamsungLsmo0ile &!one di5ision also struggled wit! &oor /uality and inferior

&roducts until t!e mid*199s and e7it from t!e sector was a fre/uentto&ic of discussion wit!in t!e com&any.

Samsung Electronics ac/uired a B &ercent stake in AS >esearc!, a@nited States*0ased &ersonal com&uter maker, for @SF3DK million in

e0ruary 1994.

or four consecuti5e years, from 2 to 23, Samsung &osted netearnings!ig!er t!an fi5e*&ercent t!is was at a time w!en 16 out of t!e

3 to& Sout! 'orean com&anies ceased o&erating in t!e wake of t!eun&recedented crisis.

As Samsung s!ifted away from consumer markets, t!e com&any de5iseda &lan to s&onsor maGor s&orting e5ents to remain in t!e &u0lic eye. #ne

suc! s&onsors!i& was for t!e 199K :inter #lym&ics!eldinagano, Ja&an.

Samsung !ad a num0er of tec!nological 0reakt!roug!s &articularly int!e field of memory w!ic! are common&lace in most electrical &roducts

today. !is includes t!e worldLs first 6BM0 AM in 1992, 246 M0AM in 199B, 1 ) AM in 1996. In 2B, Samsung de5elo&ed t!e

worldLs first K0A< Memoryc!i& and a manufacturing deal-s

struck wit! A&&le in 24.

Samsung !as em&!asied inno5ation in its management strategy sincet!e early 2s and it again !ig!lig!ted inno5ation as &art of core

strategies w!en it announced t!e Cision 22 in w!ic! t!e com&any setan am0itious goal of reac!ing FB 0illion in annual re5enues wit!in ten

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to fifteen years. In order to cement its leaders!i& in t!e areas of memoryc!i&, mo0ile &!ones, tele5ision &roduction, t!e com&any !as in5ested

aggressi5ely in researc! and de5elo&ment. !e com&any !as 2Bresearc!*and*de5elo&ment centers around t!e world.

S+!."122

!e Samsung S(*


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onscreen 0randing, t!e un&o&ular s!ortcut side0ar and non*o&tional sounds $e.g.

0randing sound on &ower*onoff%. !e new software can add features suc! as

5oice*dial and 5oice*command, and increased memory a5aila0ility.

!e S(*

Documents

Report (Samsung)