Samsung case study

it is report of samsung case study

1. CASE STUDY
SAMSUNG ELECTRONICS CO

2. TABLE OF CONTENTS
1.1 Acknowledgment
1.2 Introduction
1.3 SWOT Analysis
1.4 Segmentation strategy
1.5 Market Targeting
1.6 Positioning Strategy
1.7 Product strategy
1.8 Price strategy
1.9 Value chain strategy
1.10 Promotion strategy
1.11 Financial status
1.12 Recommendation to management
1.13 Attachments of Samsung Products

3. ACKNOWLEDGEMENT
Above all i would like to thank“ALMIGHTY ALLAH” whose guidance let me courageous at
every moment. I believe that he is the only sovereign authority who has the control of everything.

I extend my humble and deepest appreciation to my Respected Instructor M.A. Buttfor the
keen interest taken by him in the completion of this report. He has been a constant source of
inspiration and great help to me. His precious advices, instructions and knowledge of subject helped
me immensely.
I am highly thankful to The Authors of Strategic Marketing, David Cravens and Nigel
Piercywho were so helpful and provide me with necessary information and technical support where
ever required in their text book.

4. INTRODUCTION

Samsung Electronics is a South Korean multinationalelectronics and information technology
company headquartered in Samsung Town, Seoul.
It is the flagship subsidiary of the Samsung Group. With assembly plants and sales networks in 61
countries across the world, Samsung has approximately 160,000 employees.
In 2009, the company took the position of the world’s biggest IT maker by surpassing the previous
leader Hewlett-Packard.
Its sales revenue in the areas of LCD and LED displays and memory chips is number one in the
world.
In the TV segment, Samsung’s market position is dominant. For the five years since 2006, the
company has been in the top spot in terms of the number of TVs sold, which is expected to continue
in 2010 and beyond.
In the global LCD panel market, the company has kept the leading position for eight years in a row.
With the Galaxy S model mobile phone, Samsung’s smartphone lineup has retained the second-best
slot in the world market for some time. In competition to Apple's iPad tablet, Samsung released the
Android powered Samsung Galaxy Tablet.

5. SWOT ANALYSIS OF SAMSUNG

Samsung Group is one of the largest industrial groups in South Korea, operating through a network
of subsidiaries world.
The company interested in more than 20 affiliates, and focuses on electronics, finance and service
activities. Samsung electronics is one of the world’s largest manufacturers of random-access
memory chip.

STRENGTHS
Customers are loyal and appreciating the brand. Samsung is enjoying very good position against its
competitors. The company is maintaining very good relationship with its suppliers. The company is
also maintaining with laborers.
Samsung is a financial strong and Stable. The production processes and procedures of inventory
management are consistent with industrial standards.

WEAKNESSES
Samsung is facing hard competition. South Korea’s labor unions are strategically linked for
collective bargaining and negotiation.
Samsung need improvements in defining the vision, mission and strategic corporate objectives.
Marketing management needs improvement in all the facts of marketing.
HRM also needs improvement in all the facts of human resources management.

OPPORTUNITIES
The economic condition of South Korea seems favorable. Samsung is interiorizing the social shifts.
It is having constant policy given by the government.
Samsung is reasonable equipped to take care of technological changes.
Samsung is maintaining good international relationship with other countries and the local.

THREATS
The legislation has been passed frequently related to industry. Technological transformation takes
place in the industry was very high.
Regulatory issues and safeguarding of property rights was main threats in legislations.

6. STRATEGIC OBJECTIVES OF SAMSUNG ELECTRONICS

SEGMENTATIO N STRATEGY

Market segmentation has three levels including
1. Strategic Segmentation-vision, strategic intent and product benefits
2. Managerial Segmentation-resource allocation, alignment and planning
3. Operational Segmentation-Marketing programs such as advertising, sales and distributions.
Segmentation in the market-driven strategy process is segments, value opportunities, new market
space, matching value requirements with capabilities, market targeting and strategic positioning.
Activities of market segmentation are:
1. Defining the market to be segmented.
2. Identifying market segments
3. Forming market segments
4. Finer segmentation strategies
5. Selecting the segmentation strategy
MARKET TARGETING
The market targeting options include a single segment, selective segments, or extensive
segments. When segments are not clearly defined, product specialization or product variety
strategies can be used.
Market targeting decisions need to take into account product-market life cycle stage.
In emerging market stage risk and uncertainty is too high, in growth stage benefits from prior
experience but it is more intense than emerging stage, and in mature stage multiple targeting
strategies can be done such as product variety or product specialization.

POSITIONING STRATEGIES
The concept to position the brand may be based on the functions provided by the product, the
experience it offers or symbol it conveys.
Developing positioning strategy requires integrating the product, price, value chain, and
promotion strategy to focus them on the market target. The positioning strategy matches the
firm’s capabilities with the buyer’s preferences.

7. Due to Samsung’s superiority in the general TV market, the threats as you can tell
areminimal. However, in the strategies and opportunities sections you will find what we aredoing to
reduce the risk of these threats having an affect on Samsung’s market share.Developing a
partnership with Microsoft will be a vital component to developing the 3Dgaming content
availability, which is the only relevant competitive advantage other thanpricing. As Samsung
introduces new 3D products to the market, the price of therecurrent products will drop, making them
more readily available to lower class consumersand expanding the target market for their 3D
products.
4.6 Marketing Mix

Product Strategy
Samsung offers the most diverse product mix in the 3D market, offering LED,LCD and Plasma 3D
TVs. Samsung’s cash cow product in the 3D market however, isthe LED 9000 series.
Features
-55” or 46” class LED backlight display-.31” thin, the thinnest TV available-The most
technologically advanced television remote, with which,you can stream live television to if you
leave the room of the maindisplay and view content directly on the LCD screen on the face of the
remote
Advantages
-The distinct advantage to buying a Samsung 3D TV for theconsumer is the knowledge that they
have bought the most cutting-edge, technologically advanced TV, in the 3D market.-The remote is
the only one of its kind, offering consumers a distinctfeature they cannot get from any of SE’s
competitors.-Samsung’s 9000 series is the thinnest TV ever produced.

Samsung offers the best 3D packages, consisting of 3D starter kits, 3D home theater surround sound,
3D capable blue rayplayers, and the highest quality 3D TVs.
Benefits
-Among the benefits of this product, the increase in customer satisfaction, due to the quality of the
product, will be unmatched bycompetitors.Because Samsung produces such a diverse product mix,
they can meet all theneeds of the 3D TV consumers with the products they offer, at a very
competitive level.


Price Strategy
The price of the 9000 series is $5,999. However, Samsung’s diverse product mixof 3D TVs ranges
from $1,200-$7,000.

8. Promotion Strategy
Samsung has launched various advertising campaigns, spending billions of dollars across three
continents, North America, Europe and Asia. Eight billion dollarshas been spent in Europe
alone, and three billion in Asia. Neither of which compare tothe twelve billion dollar campaign
launched in the North America, predominantly the US,from where 66% of the 3D TV market
exists.They also have and will continue to use celebrities such as singing group, TheBlack Eyed
Peas, to promote their products. They use these celebritiesinadvertisements seen by the public, but
also at some of there biggest events in whichthey display the product and allow the consumers at the
events to experience Samsung.
These products will be sold mostly online, where customers can find deals for free shipping and set
up. This also offers consumers the opportunity to analyze reviewsand physically see features of our
products rather than hear them from a retail storeassociate.Samsung’s products will not be offered in
wholesale stores or super centers likeWal-Mart or Target, but the consumer will have the
opportunity to purchase them inspecialty electronics retail stores like Best Buy and HH Gregg.

Market Research Findings
1. Video Game Market
Because we intend on entering into a partnership in the future with Microsoft todevelop a 3D gaming
system, researching the gaming market was essential. Accordingto DMW Media, global video game
sales totaled 41.9 billion dollars in 2009 and areexpected to grow 10.3% to 68.3 billion
in 2012. Game console sales are expected toreach 34.7 billion dollars in sales by 2012 with a 6.9%
annual growth rate.
2.What leads us to believe we can sell 3D TV’s in this market?
According to FutureSource, 3D TV sales have been healthy and are beginning tosurpass HDTV sales
at the same point in HDTV’s life. FutureSource also says that bythe end of 2010, 6.2 million 3D
TV’s will have been sold worldwide, with 1.2 million of those being sold in Europe. 10 million are
expected to be sold in 2011, and 50 million bythe year 2015.

3. Focus Group

To gain a better idea understanding of the consumer market, we organized afocus group. The focus
of the study was on what the current consumer felt about the 3Dproducts available, and what
improvements could be made in the eyes of the consumer.The group consisted of 10 average
consumers, 5 men and 5 women. 5 of the people inthe group had used our Samsung 9000 Series 3D
1080p LED HDTV, while the other 5had never used a 3D TV and were simply asked what they
thought about the idea of purchasing one and the overall concept of 3D TV’s.

9. Marketing Objectives

1. Enter into the 3D video Gaming Market through a partnership with microsoft
In order to capitalize on the growing video gaming market, we intend on enteringinto a partnership
with Microsoft to develop a virtual gaming product. Short term, wewould like to couple 3D TV
technology with a dominant video gaming console like theXBOX 360. By the year 2020 we intend
on launching a virtual gaming product.
2. Launch a comprehensive ad campaign that focuses on SE’s competitiveadvantage in 3D technology.
An ad campaign focusing on our competitive advantage in technology would behighly effective in
selling more 3D TV’s to developing market. We want to make it knownthat Samsung was the first to
pioneer this technology, therefore, they are getting themost advanced product in the market.
Our goal is to increase TV sales by 5% in a 6-month period following the launch of the campaign.
3. Maintain market dominance throughout the “Glasses” era and prepare themarket for a “glassless” 3D
TV.
Having already established a firm hold on the 3D market, we would like tomaintain our position as
market leaders in 3D technology with the use of 3D glasses. Asthe market evolves closer to
glasses free technology we would like to prepare themarket for our product release in 2014. Our
objective is to see our market share remainat 88% until the release of our glasses-free product in
2014.

Financial Marketing Plan

To enter in to the gaming market with Microsoft, we plan on focusing our R&D
budget (7 billion in 2010) solely on producing a virtual reality gaming platform. This budget
includes the research necessary to develop the product. We would like another 20 billion to fund
production, distribution, customer service, and market research.

10. An average ad during the super bowl is $1.1 million dollars for one 30-secondSpot. We would like a
500 million dollar advertising budget to effectively advertise for a six-month period.This goal will
be achieved with the daily operating cost and should not increase the average spending per year.





RECOMMENDATION TO MANAGEMENT
I would like to recommend that Samsung should use its strengths to overcome its weaknesses and
use different strategies to catch opportunities and resist the threats coming from its competitors by
hiring well experienced and talented marketing executives, officers, and managers.

11. SAMSUNG PRODUCTS