Project Report: Samsung Home Theater System
Group MembersAwais Naeem 083158M. Asim Riaz 083159Khuram Shahzad 083268Shakeel Anjum 083277Abrar Hussain 083109
Submitted To - Shazif IqbalInstitute of management Sciences, Lahore
Samsung Home Theater System
Words 2969 Page 2
Samsung Home Theater System
Words 2969 Page 3
Samsung Home Theater System
We believe that through technology innovation today, we will find the solutions we need to address the challenges of tomorrow. From technology, comes opportunity—for businesses to grow, for citizens in emerging markets to prosper by tapping into the digital economy, and for people to invent new possibilities.It’s our aim to develop innovative technologies and efficient processes that create new markets, enrich people’s lives and continue to make Samsung a trusted market leader.
Words 2969 Page 4
Samsung Home Theater System
History
Samsung Group headquarters at Seocho Samsung Town, Seoul.
Samsung and others (Besix, Turner) areconstructing the world's tallest building,the Burj Dubai (818 m) in the UAE.
Words 2969 Page 5
Samsung Home Theater System
Samsung constructed Petronas Twin Towers in Malaysia.
Samsung, as a subcontracter, constructed
The the Taipei 101 in Taiwan, the world's
tallest completed skyscraper.
Words 2969 Page 6
Samsung Home Theater System
From its inception as a small export business in Taegu, Korea, SAMSUNG has grown to become one of the world's leading electronics companies, specializing in digital appliances and media, semiconductors, memory, and system integration. Today SAMSUNG's innovative and top quality products and processes are world recognized.
Words 2969 Page 7
Samsung Home Theater System
1938-1969 SAMSUNG's Beginnings
On March 1, 1938, founding chairman Byung-Chull Lee started a business in Taegu, Korea, with 30,000 won.
1970 Black-and-white TV (model: P-3202) production started by SAMSUNG-Sanyo
1969 SAMSUNG-Sanyo Electronics established (renamed SAMSUNG Electro-Mechanics in March 1975 and merged with SAMSUNG Electronics in March 1977)
1963 DongBang Life Insurance acquired (renamed SAMSUNG Life Insurance in July 1989)
1951 SAMSUNG Moolsan established (now SAMSUNG Corporation)
1938 SAMSUNG founded in Taegu, Korea
1970-1979 Diversifying in Industries and Electronics
Words 2969 Page 8
Samsung Home Theater System
In the 1970s, SAMSUNG laid the strategic foundations for its future growth by investing in the heavy, chemical, and petrochemical industries.
1979 Began mass production of microwave ovens
1978 4 millionth black-and-white TV (most in the world) produced
1974 SAMSUNG Petrochemical established
Began washing machine and refrigerator production1972 Began production of black-and-white televisions for domestic sale
1980-1989 Entering the Global Marketplace
SAMSUNG's core technology businesses diversified and expanded globally during the late 1970s and early 1980s.
1989 SAMSUNG BP Chemicals founded
20 millionth color TV produced1987 SAMSUNG Advanced Institute of Technology opened for R&D purposes
1986 Developed the world's smallest, lightest 4mm video tape recorder
1984 SAMSUNG Data Systems established (Renamed SAMSUNG SDS)
First VCRs exported to the US
1990-1993 Competing in a Changing Tech World
The early 1990s presented tremendous challenges for high-tech businesses.
1993 SAMSUNG Electronics acquired U.S. firm HMS
1992 Development of world's first 64M DRAM completed
1991 SAMSUNG supported installation of Korean Pavilion at the Royal Museum of England
Development of mobile phone handset completed
1994-1996 Becoming a Global Force
Words 2969 Page 9
Samsung Home Theater System
In the mid-1990s, SAMSUNG revolutionized its business through a dedication to making world-class products, providing total customer satisfaction, and being a good corporate citizen – all under the vision of "quality first."
1996 Development of 1G DRAM completed
Developed world's fastest CPU (central processing unit), the Alpha chip
1994 Development of world's first 256M DRAM completed
30 millionth microwave oven produced
1997-1999 Advancing the Digital Frontier
Despite the 1997 financial crisis that affected nearly all Korean businesses, SAMSUNG was one of few companies that continued growing, thanks to its leadership in digital and network technologies and its steady concentration on electronics, finances, and related services.
1999 First in the world to mass-produce and offer a full line up of digital TVs
Developed wireless Internet phone (Smartphone), a small, multi-function phone1997 Developed world's lightest PCS (105g)
2000-Present Pioneering the Digital Age
The digital age has brought revolutionary change – and opportunity – to global business, and SAMSUNG has responded with advanced techno-logies, competitive products, and constant innovation.
2008
Named Yoon-Woo Lee as a Vice Chairman & CEO of Samsung Electronics
Developed the world's first 2Gb 50 NANO
No.1 worldwide market share position for TVs achieved for the 9th quarter in a row2007 Attained No.1 worldwide market share position for LCD for the sixth year in a row
2003 Ranked 5th on the "Most Admired Electronics Company" list released by the Fortune Magazine
2000 Develops Unique All-in-one DVD Player
Developed world's first 512Mb DRAM
Social welfare programs
Words 2969 Page 10
Samsung Home Theater System
Children are the future of our society and the SAMSUNG Welfare Foundation, along with SAMSUNG's affiliates, is actively involved in the upbringing of children and in helping people in need become self-sufficient.
We do all we can to enhance the quality of life for our neighbors.
Since 1999, for five consecutive years, SAMSUNG has donated 10 million dollars each year to help and care for the needy people in our society. Especially, SAMSUNG donated 20 million dollars in 2004.
Activity
Building/operating daycare centers for low-income children Establishing exclusive plants for the physically disabled
Support Program for Elderly Citizens
Words 2969 Page 11
Samsung Home Theater System
Products
Consumer Product
Mobile phones - CDMA, GSM
Televisions - LCD TV, Plasma TV
Audio / Video - Blu-ray, Home theater projectors, MP3 & DVD players
Cameras & Camcorders - Digital cameras, Camcorders
Computers & Peripherals - Desktop monitors, Hard disk drive
Printers & Multifunction - Monochrome laser printers, laser & Color printers & faxes
Home appliances -Refrigerators, Washers & Dryers, Microwaves, Air conditioners
CCTV - Camera, Monitor, Controller
Business Product
Business Products - Mobile computing, LCD monitors, Data projector
Telecommunication - Business telephone systems
Set Top Box - Digital video recorder, Digital satellite receiver
Words 2969 Page 12
Samsung Home Theater System
Corporate strategic planning
Samsung is useing diversification approach by producing different products in new but related industry (related diversification) i.e. mobile phones, televisions, audio and video, camera and camcorders, computers and peripherals, printers and home appliances
Business unit strategic planningSamsung is using differentiation strategy for its home theater systems by differentiating its products from its competitors in terms of innovation, cutting edge technology and world class design
Words 2969 Page 13
Samsung Home Theater System
SWOT Analysis
Words 2969 Page 14
Samsung Home Theater System
Strengths
New product concept to rollout in five months Catching the pulse of the consumer, offering good designs & understanding emotions Heavy investments in product design, technology and human resources Focus on innovative products for the high-end market Cash rich
Vertical integration (manufacture everything self)
Research and devalopment
Surrounding sound system wih ligh and heavy sound
Low bureaucracy
Speed of delivery
Tapping into youth
Design of products
Constant
Weaknesses
Not proactively coming out with newer models Lack in product differentiation Not very user friendly designs
Opportunities
Distinguish its services from competitors Offer product variations Tie up with service providers Lowering the price of its products by just 20% in many countries could increase its
profitability by 43% (as per a study report) To unseat Sony as the most valuable electronics brand and most important shaper of trends.
To dominate the digital home competing with Sony and Philips. Capitalize on reputation, image
Threats
Energy crisis in PakistanWords 2969 Page 15
Samsung Home Theater System
Political instability
Aggressive competitors like Sony, LG eating into its share
Not keeping track of new trend in the market
Ability of others to copy design (LG)
Strategic alliances
Promotional alliance
Samsung has promotional alliance with the phone tel Pvt. Limited, Makro cash & carry, Metro cash & carry and Hyperstar for promoting its products
Logistics allianceDWP group provide logistics services to Samsung electronics company digital world Pakistan
Words 2969 Page 16
Samsung Home Theater System
CompetitorsSamsung has different competitors in its market of home theater system that can eat up to its market share there are two classes of its competitors i.e. direct competitors, indirect competitors
Direct competitors- all the companies that are involved in producing the home theater systems are classified as its direct competitors which are:
Sony
LG
Philips
Toshiba
Indirect competitors- all the companies that are producing the products related to Samsung home theater systems are classified as its indirect competitors as indirect competitors can also pose a threat to company towards achieving strategic aim along with direct competitors. Its main indirect competitors are:
Pioneer
Kenwood
Mitsubishi
Yamaha
Words 2969 Page 17
Samsung Home Theater System
Analyzing the Macroinvironment
Needs and Trends
Samsung closly look at the changing consumer preferences, fashions, style, trends and maga trends and offers the products in pursuance of these trends
Other Macroenvironment forces
Demographic environment- the overall population of the world and Pakistan is continuously increasing
Economic environment- the consumer market of Pakistan consist of people with different income levels some are poor and some are rich and based upon that income level they choose among different products based upon their income level
Social-cultural environment- Pakistan market is a mix of different cultures and values, rattails of the people change with the change in social culture
Natural environment- natural environment is changing rapidly throughout the world due to this phenomena the overall environment of the world is changing i.e. global warming
Words 2969 Page 18
Samsung Home Theater System
Technological environment- the technological environment of Pakistan and the world is continuously changing and has a major effect on the buying preferences of the people
Political-Legal environment- the political environment of Pakistan is not very stable and there is a rapid change of governments due to which there are changing policies of new governments which effects the whole market of Samsung (home theater system)
Levels of segmentationSamsung is targeting the customer market by dividing it into diferent segments and offering each segment different product based on their common characteristics
Bases for Segmenting Consumer Markets
The consumer market for samsung home theater system has been divided using four schemes of segmentation variables i.e geographic, demographic, psychographic and behavioural
Words 2969 Page 19
Samsung Home Theater System
Geographic Segmentation
Region- Samsung has divided the Pakistani market into different geographical regions such as northern, eastern and southern areas
City- Samsung is targeting different cities of Pakistan differently by dividing different cities as different markets
Demographic Segmentaton
Age- age factor is not really involved in Samsung segmentation but its most users are adults enthusiastic people
Family size- Samsung home theater systems are offered for all family sizes
Words 2969 Page 20
Samsung Home Theater System
Gender- Samsung home theater system is equally beneficial for male and female
Income- Samsung home theaters are offered with varying features to different peoples based upon their income level i.e. low (upto Rs. 30000) lower middle (Rs. 30000-60000) middle (Rs. 60000-80000) upper middle (Rs. 80000-100000) and high (above Rs. 100000)
Occupation- Samsung has divided the consumer into different categories based upon their occupation i.e. businessman, self employed, students and teachers
Education- Samsung is also keen to know about the education level of its target market i.e. illiterate, school 5 to 15, nongraduate, graduate and postgraduate
Psychographic Segmentation
Lifestyle- Samsung is also classifying customers on different levels based on different lifestyle of the people i.e. culture oriented, sports oriented, outdoor oriented
Personality- customers are differentiated on the varying level of personality such as compulsive, ambitious
Words 2969 Page 21
Samsung Home Theater System
Words 2969 Page 22
Samsung Home Theater System
Samsung: Building brand equity through brand community
Samsung has created a strong brand around innovation, cutting edge technology and world class design.
Samsung belongs to best consumer electronics brand : November 8th 2005
In a survey of the top 100 global brands, Business Week magazine & Inter brand Consultancy have valued Samsung's brand at $14.9 billion in 2005, making it the world's topmost consumer electronics brand, a position long held by more entrenched player Sony. Samsung was at 8th position last year and now it rank 12th position in the ranking of top global brands.
20th rank in Top100 Global brand Our 20th rank in the Top 100 Global brands is a testimony of the trans-formation the company has undergone in the last few years.
Points-of-Difference and Points-of-Parity
Points of Difference (PODs)
Samsung is differentiating its products in terms of innovation, cutting edge technology and world class design from its competitors in order to maintain a core competency
Points of Parity (POPs)
Samsung is offering different models in its line of home theater systems with varying features and these products are priced based on these varying features
Differentiation strategy
Words 2969 Page 23
Samsung Home Theater System
Product differentiation
Samsung differentiates its products from its competitors in terms of cutting edge technology and world class design
Personel differentiation
One of Samsung's strongest assets is our team of talented researchers and engineers. More than a quarter of all Samsung employees—42,000 people—work everyday in research and development, and we expect that number to surpass 50,000 by 2010.
Image differentiation
Samsung has crafted an innovative image in the minds of the consumers
Buying situationsSamsung uses both situations in ordering for its business supplies, it makes most decisions in new task and lesser in straight rebuy situation
Words 2969 Page 24
Samsung Home Theater System
Straight rebuy
The purchasing department of Samsung reorders supplies such as office supplies and bulk chemical on routine basis and chooses from a approved list
New task
Whenever Samsung purchases an item for the first time it offers for an open tender and chooses from the business suppliers on the bases of suitability
Korean electronics giant, Samsung, has many divisions. Two of them, Samsung Electro-Mechanics (SEMCO) and Samsung Electronics Co. (SEC) supply the parent company with the electronic components used in Samsung's products.
Words 2969 Page 25
Samsung Home Theater System
Products (Home Theater System)
5.1 channel home theatre system
Bluetooth 1080p video
Up-Scale
Anynet+ (HDMI-CEC)
USB host
Price MRP Rs. 42,900/-
HT-TX715T
5.1 channel home theatre system
USB host with CD ripping BD wise
Bio Kelp Speaker
Auto Sound Calibration
Price Rs. 29,900/-
HT-TX725
5.1 channel home theatre system
BluetoothWords 2969 Page 26
Samsung Home Theater System
1080p video Up-Scale
Anynet+ (HDMI-CEC)
USB host
Price Rs. 19,900/-
HT-TZ315
Bio Kelp Speaker 1080p video up-scale
USB host with CD ripping
power bass
Price Rs. 14,900/-
HT-Z220
USB host with CD ripping
Bio Kelp Speaker Anynet+ (HDMI-CEC)
1080p Video Up-scale
Price Rs. 15,900/-
HT-Z320
Words 2969 Page 27
Samsung Home Theater System
Power and performance
1080p video up - scale Anynet + (HDMI - CEC)
USB Host
Price Rs. 18,900/-
HT-TZ225
Home theatre surround system
1080p video Up-scale USB Host
Anynet+ (HDMI-CEC)
Wireless-Ready
Price Rs. 17,900/-
HT-TZ312T
Home theatre surround system
Bluetooth 1080p video Up-scale
Anynet+ (HDMI-CEC)
USB Host
Price Rs. 14,900/-
HT-Z310Words 2969 Page 28
Samsung Home Theater System
Full featured home theatre system with wireless rear speakers
USB Host 1,080p video up-scale
ASC (auto sound calibration)
Anynet+(HDMI-CEC)
Price Rs. 24,900/-
HT-TZ425
Words 2969 Page 29
Samsung Home Theater System
Upgrade your TV's sound
TV best match (40 inch or above) wall mount or display on table top
wireless active subwoofer
optical sync with TV
Price Rs. 24,900/-
HT-WS1R
Home theatre system
Full HD Up-Scaling Anynet+ (HDMI-CEC)
USB host
wireless ready
Price Rs. 44,900/-
HT-X810T
Single disc home theatre surround sound system
powerful sound DivX playback
Price Rs. 9,900/-
Words 2969 Page 30
Samsung Home Theater System
HT-Z110T
Words 2969 Page 31
Samsung Home Theater System
DVD home theatre system
USB Host power bass
Dolby Digital Plus
Price Rs. 10,900/-
HT-Z121T
5.1 channel satellite speakers' home theatres system with 800W high power output
1080p video Up-scale Anynet+ (HDMI-CEC)
USB Host
Price Rs. 12,900/-
HT-Z210T
Words 2969 Page 32
Samsung Home Theater System
Accessories and Packing
Words 2969 Page 33
Samsung Home Theater System
Words 2969 Page 34
Samsung Home Theater System
Price
Product (home theater system) Model Prices (Rs.)
5.1 channel home theater system HT-TX715T 42,900
HT-TX725 29,900
HT-TZ315 19,900
HT-Z220 14,900
HT-Z320 15,900
Power and performance HT-TZ225 18,900
Home theatre surround system HT-TZ312T 17,900
Home theatre with wireless speakers HT-TZ425 24,900
Upgrade your TV's sound HT-WS1R 24,900
Home theatre system HT-X810T 44,900
Single disc surround sound system HT-Z110T 9,900
DVD home theatre system HT-Z121T 10,900
5.1 channel satellite speakers HT-Z210T 12,900
Home theatre surround system HT-Z310 14,900
Place
The samsung home theater products are available in the following places of pakistan
Makro cash & carry Metro cash & carry Hyperstar HKB Samsung outlets Abid market Hall road
Words 2969 Page 35
Samsung Home Theater System
Outlets
Samsung has 18 outlets in all over pakistan out of which 10 are in the lahore
Competitive strategiesSamsung is the market leader in the market of home theater system and therefore it will have to use defence strategies in order to defend its market share from its competitors
Words 2969 Page 36
Samsung Home Theater System
Promotion:The objectives of samsung promotional activities is to create awareness about our product and to get
desired market share through our promotional efforts.
Promotional Mix:
Samsung uses promotion mix in ordr to deliver and communicate obout its products to final consumers:
Advertisement
Samsung advertises its products through magazines, news papers, television commercials, bill boards,
posters and its own web site (http://www.samsung.com)
Advertisement budget
Words 2969 Page 37
Samsung Home Theater System
According to a report from Advertising Age, Samsung is reviewing its estimated $600 million global advertising account. The U.S. account, which is reportedly worth $152 million, is currently handled by WPP Group's MindShare. The most recent data suggests that Samsung spent some $626 million on advertising worldwide in 2009. Publicis Group's Leo Burnett Worldwide currently handles creative advertising and branding.
Public Relations
Samsung is very keen in building a good relation with our clients as it is very essential to capture
large share in the market. These public relations are built by engaging in activities like
Sales Promotion
Our major sales promotion is by giving special discounts or coupons to our customers and retailers.
We arrange these kinds of discount activities’ on timely basis to keep an edge over our competitors.
Direct Marketing
We are sending our sales people to approach customers to build relations with them. Another
technique we are useing is sending occasional mails to the registered users on the web, thus
communicating ourselves directly with the most potential group of our market.
(http://www.samsung.com)
Conclusion:
Samsung for over 70 years has been dedicated to making better world through diverse businesses that today span advaced technology, semiconducters, skyscraper and plant construction, petrochemicals, fashion, medicine, finance, hotels, and more. Our flagship company, samsung electronics, leads the global market in high-tech electronics manufactering and digital media.
Through innovative, reliable products and services, talented people, a responsible approach to business and global citizenship and colaboration with our partners and customers, samsung is taking the world in imaginative new directions.
Words 2969 Page 38