Samsung Group

• Founded in 1938
– exporter of dried fish, vegetables, and fruits
– flour mill and confectionery machines
• 1950’s Economic Stabilization
– Korean War - Samsung lost all assets
– aimed to help rebuild Korean economy; entered the
manufacturing industry (sugar,fabrics)
– became a leader in modern business practices (recruiting from
outside)
• 1960’s Expansion of Key Industries
– entered electronics and chemical industries
– 1969 established Samsung Electronics Co.
 Samsung Group
% of Sales ($72B)
• home appliances
• wireless communic
• distribution Electronics ation
• hotels
28% • semiconductors
• amusement th
eme parks
• trading
Other
• construction 38%
• textile
• advertising • cameras
• baseball team • aircraft
• security • ships
Machinery • dump trucks
& Heavy • oil trucks
Equipment
6%
Chemicals
2%
Financial
• life insurance
• credit card services Services • polymerized compounds
• securities trading 26% • plastics
• finance and trust man • specialty chemicals
agement services
 Samsung Electronics
• Established in January, 1969
• 1970’s: Bet the future on electronics
– laid the groundwork for electronics in Korea
– helped the domestic economy grow
– paved the way for exports
• 1980’s: A more comprehensive electronics company
– established plants in Portugal and US
– established Semiconductor and Communication corporation
– began memory chip business
• Early 90’s: Integration and Globalization
• Mid-Late 90’s: Implementing new management strategies
• New Millenium: Digital Vision
 Focus: 4 Core Markets
Home Multimedia Mobile Multimedia

Personal Multimedia Core Components

 Introduction
Samsung Electronics is a South Korean multinational electronics
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.

It sales revenue in the areas of LCD and LED displays and

memory chips is number one in the world.
 Introduction
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 number of TV’s 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.
 SWOT ANALYSIS
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 worlds
largest manufacturer of random access memory chip.
 SWOT ANALYSIS
STRENGHTS

Customers are loyal and appreciating the brand. Samsung

is enjoying very good position against its competitor.

The company is maintaining very good relationship with

supplier. The company is also maintaining with laborers.

Samsung is a financial strong and stable. The production

process and procedures of inventory management are
consistent with industrial standards.
 SWOT ANALYSIS
WEAKNESSES

Samsung is facing hard competition.

Some costumer prefer apple

Marketing management needs improvement in all the facts

of marketing.
 SWOT ANALYSIS
OPPORTUNITIES

The economic condition of South Korea seems favorable.

Samsung is interiorizing the social shifts. It is having
constant policy given by government.

Samsung is reasonable equipped to take care of

technological changes.

Samsung is maintaining good international relationship

with other countries and the local.
 SWOT ANALYSIS
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 legislation

Apple and other Chinese manufacturer.

 STRATEGIC OBJECTIVES

SEGMENTATION STRATEGY
Market Segmentation has three levels including:
1. Strategic Segmentation-vision, strategic ijntent and product benefits.
2. Managerial Segmentation-resource allocation, alignment and
planning.
1. Operational Segmentation-Marketing programs such as advertising,
sales and distributions.

Segmentation in the market-driven strategy processis segments, value

opportunities, new market space, matching value requirements with
capabilities, market targeting and strategic positioning.
 STRATEGIC OBJECTIVES
SEGMENTATION STRATEGY
Activities of Market Segmentation are
1. Defining the market to be segmented.
2. Identifying market segments.
3. Forming market segments.
4. Selecting the segmentation strategy.
 STRATEGIC OBJECTIVES
MARKET TARGETING

The Market Targeting options include a single segment, selective

segment or extensive segment. When segments are not clearly
defined, product specialization or product variety strategies can
be used.

Market targeting decisions needs to take into account product-

market life cycle stage. In emerging market target risk and
uncertainty is too high, in growth stage benefits from prior
experience but is more intense than emerging stage, and in
mature stage multiple targeting strategies can be done such as
product variety or product specialization.
 STRATEGIC OBJECTIVES
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.
 STRATEGIC OBJECTIVES
Due to Samsung superiority in the general TV market,
the threats as you can tell are minimal. However in
the strategies and opportunies section, you will find
what we are doing 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 in developing the 3D gaming content
availability, which is the only relevant competetive
advantage than pricing. As Samsung introduce
new3D products to the market, the Price of the
current product will drop, making them more readily
available to lower classconsumers and expanding the
target market for thier 3D products.
 PRODUCT STRATEGY
Samsung offers the most diverse product mix in the 3D
market, offering LED, LCD and Plasma 3D TV's.

FEATURES
PRODUCT STRATEGY
 PRICE STRATEGY

Samsung's diverse product mix of 3D TV'

s range from $1200 - 7000
 PROMOTION STRATEGY
•
•
 Market Research Findings
• 1. Video Game Market
•
• Because we intend on entering into partnership in the future with
Microsoft to development a 3D gaming system, researching the gaming
market was essential. According to DMW Media, global video games
sales totaled 41.9 billion dollars in 2009 and are expected to grow
10.3 % to 68.3 billion in 2012. Games consoled sales are expected to
reach 34.7 billion dollars in sales by 2012 with a 6.9% annual growth ra
te.
•
• 2. What lead us to believe we can sell D TV‘s in this market.
•
• According to the FutureSource, 3D TV sales has been healthy and are
beginning to surpass HDTV sales at the same point in HDTV’s life.
Future Source also says that by the end of 2010, 6.2 million 3D TV‘s
will have been sold worldwide, 1.2 million of those being sold in Europe
10 million are expected to sold in 2011, and 50 million by the year 2015.
 Market Research Findings
• 3. FOCUS GROUP
•
• To gain a better idea understanding of the customers market, we organized a
focus group. The focus of the study was on what the current customers felt
about 3D products available, what improvement can be made in the eyes of
the customers. The consisted of 10 average customers, 5 men and 5 women.
5 of the people in the group in the group had used our Samsung 9000 series
3D 1080p LED HDTV, while other 5 had never used a 3D TV and were simply
asked what they thought about the idea of purchasing one and overall
concept of 3D TV's.
 Marketing Objectives

1. Enter into the 3D video Gaming Market through a partnership with

Microsoft

In order to capitalized on the growing video gaming market, we intend

on entering into a partnership with Microsoft to develop a virtual gaming
product.

2.Launch a comprehensive ad campaign that focuses on SE'

competetive advantage in 3D technology

An ad campaign focusing on our competetive advantage in technology

would be highly effective in selling more 3D TV's to developing the
market. We want to make it known that Samsung's was the first to
pioneer this technology, therefore, they are getting the most advanced
product in the market. Our goals is to increase TV sales by 5% in a 6
month period following the launch of the campaign.
Financial Marketing Plan
 Marketing Objectives.

3. Maintain market dominance throughout the "Glasses"

era and prepare and prepare the market for a glassless 3D
TV.

Having already establishes a firm hold on the 3D market, we

would like to maintain our position as market leaders in 3D
technology with the use of 3D glasses. As the market evolves
closer to glasses free technology we would like to prepare
the market for our product released in 2014. Our objective is
to see our market share reminant 88% until the release of
our glasses free product in 2014
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