Presentation on :

Presented To :Sir Azfar Abassi

Presented By :Sohail Khan (Bs-Economics)

1427-314014Muhammad Abdullah Asrar Mirza (Bs-Economics)

1427-314005Mobeen Mir (Bs-Economics)

1427-314001Fatima (Bs-psychology) 1427-115109

PRODUCT

PROMOTION

PricePrice

4P’s IN MARKETING

PlacePlace

In 1970, Samsung Electronics made cheap 12-inch television sets under Sanyo label.Now, capturing the number one position in the global memory chip market and pioneering the development of flat-screen displays, plasma TVs, multifunction cellphones, and other digital devices.

Product

Semiconductors : DRAM, SDRAM, flash memory, and hard drives

Digital displays : LCD displays, Plasma displays, and OLED displays

Home Electronics : TVs, DVD players, Blu-ray players, home cinema systems, set-top boxes, and projectors

Mobile devices : mobile phones, MP3 players, digital cameras, and camcorders

Computing products : monitors, laptops, UMPCs, CD and DVD drives, laser printers, and faxes machine; and

Home appliances : refrigerators, washing machines, microwaves, ovens, vacuum cleaners, and air conditioners.

Product

Samsung invested a lot of money in research and development, in order to meet what customers needs and wants.

Samsung spent about 9% of revenue, amounting to around $5billion, in 2005 in research and development.

product

“design awakeness all your senses”.

Samsung sells product with a price that’s worth, if we compare it with the

functions, benefits and technology.

Samsung is in the process of building an image as “a stylish, high quality

brand commanding a premium price”

Pro

du

ct p

lacem

en

ts

Sponsorships

Media Advertising

Hotel chains (such as Hilton), where most in-room technology was now dated and required early replacement to retain competitive advantage.

Their products are also been used in various movies which is also been used as a marketing base.

Also their giving away their products at various sports event as gift for the players.

The Summer and Winter olympics games

Chelsea FC shirt sponsorship deal

Horse jumping (Samsung Superleague).

In 2005 ,the firm devoted nearly 15 % of its media budget allocated to page -topping banner ads on over 400 Internet sites

Link to mainstream entertainment : Fox’s movies Fantastic Four

Display in the film

Samsung has its own stores which can be found around the world. Not only in Asia , but also in America, Europe, Australia and Africa.

Samsung has its stores located & also its service center at places where it is closes to the customer reach.

At the stores, we not only can buy the product that sold, but also feel the experience of digital lifestyle.

In India after covering the urban market Samsung is now ready to tap the urban market.

Plans are to start up a plant in Tamil Nadu & Andhra Pradesh with an investment of $150 million.

Existing knowledge and experience of electronics market

Strong global presence with strong brand and customer base, in 2009 according to Interbrand Global value of Samsung’s brand is US$ 17,518 million compare to its competitor, Sony, which is US$ 11,953 million.

Well diversified and differentiated product line, to meet changing customer needs. Samsung electronics has 4 business areas to cover customer electronic needs.

Design with an attractive styling that catching the pulse of customer, as the result of the development of Samsung‘s new products that involve team of product designers.

Market share: Global market share of mobile phone increase from 18% in 2004 to 19.1% in 2009. Memory chip Industry is 27% in 2009 compare with 21% at the end of 2008.It is the biggest manufacturer of liquid-crystal display panels with 23% share in 2005, increase to 26.2% in Q1 of 2009. 2009 Figures

Loyal customer & customer satisfaction: Samsung Electronics reports that its “Anycall” mobile phone topped the American Customer Satisfaction Index (ACSI) (2005)Cost Competitiveness by mass Production

Samsung Electronics expanded production dramatically to become the world's largest manufacturer of DRAM chips, flash memory, optical storage drives

TechnologyWith an excellent research and development capabilities, they spend a high percentage of revenue on R&D. It resulted in global leadership in the television segment, and in improving its position from the third to second player in mobile phones with their innovative products.

Customer perception of weak product attributes like Durability

Different perception on “worth the price” product on each person that difficult to cover.

Not pro-active coming out with unique and leading model

Focus on mass market instead of niche market

Increasing on electronics consumer market

Strong customer demand for innovative products & value-added features

High % of Younger population, which can be expand a new market now and in the future

Population by Age and Sex, More Developed Countries: 2009

Increasing competitionDRAM (Q1-2009)

Rank

Company Market Share

1 Samsung 34.3%

2 Hynix 21.6%

3 Micron Technology 14.6%

4 Elpida Memory 14.2%

5 Qimonda 4.8%

Increasing competitionLCD TV (Q3-2008)

Rank

Company Market Share

1 Samsung 20.2%

2 Sony 13.8%

3 Sharp Corporation 10.2%

4 LG 9.3 %

5 Phillips 7 %

Increasing competitionMobile phone (Q1-2009)

Rank

Company Market Share

1 Nokia 36.2%

2 Samsung 19.1%

3 LG 9.9 %

4 Motorola 6.2 %

5 Phillips 5.4 %

Decreasing Operating profit margins

Consolidated Financial Statement years ended Dec 31, 2007 and 2006 (audited report)

1 US$ = 938 Won

2007 (Thousand US$)

2006 (Thousand

US$)

Sales 105,018,995 91,508,107

Cost of Sales 75,566,005 64,025,507

Gross Profit 29,452,990 27,482,600

Selling, General and Adm exp

19,886,587 17,750,164

Operating Profit 9,566,403 9,732,436

Gross Profit Margin 28.05 % 30.03 %

Operating Profit Margin 9.1% 10.6 %

Economic Slowdown, makes demand for electronics product weaken.