SAMSUNG COMPANY

UMAI HANI K.S

1ST MBA
SSIMS
 INTRODUCTION

• SAMSUNG WAS FOUNDED BY LEE BYUNG-CHULL IN 1938 AS A

TRADING COMPANY
• SOUTH KOREAN COMPANY
• LARGEST INFORMATION TECHNOLOGY COMPANY MEASURED BY
2011 REVENUES
• ASSEMBLY PLANTS AND SALES NETWORKS IN 61 COUNTRIES
• IN THIRD QUARTER OF 2012,IT SOLD 98 MILLION PHONES, OF WHICH
55 MILLION WERE SMART PHONES
IT WAS THE PRESENT LOGO OF SAMSUNG FROM THE YEAR 1993

TAGLINE:
“INSPIRE THE WORLD CREATE THE FUTURE”
LEE KUN- HEE (CHAIRMAN AND CEO)
 HISTORY
• SAMSUNG GROUP, BASED IN SEOUL, IS SOUTH KOREA’S LARGEST BUSINESS GROUP.
THE MULTINATIONAL CONGLOMERATE CONTAINS NUMEROUS SUBSIDIARIES AND
AFFILIATED BUSINESSES, MOST OF THEM UNDER THE SAMSUNG BRAND.
HERE ARE KEY DATES IN THE COMPANY’S HISTORY:
• 1938: SAMSUNG IS FOUNDED BY LEE BYUNG-CHULL AS A TRADING COMPANY.
• 1953: AFTER THE KOREAN WAR, LEE FORMS PROFITABLE CHEIL SUGAR, WHICH IS
FOLLOWED BY TEXTILE, BANKING AND INSURANCE ENTERPRISES.
• 1961: DESPITE A POLITICAL COUP, CHARGES AGAINST LEE OF ILLEGAL PROFITEERING
AND A 1966 FAMILY SCANDAL OF SMUGGLING, THE COMPANY GROWS BY
DIVERSIFYING INTO PAPER PRODUCTS, DEPARTMENT STORES AND PUBLISHING.
• 1969: LEE, WITH THE HELP OF SANYO, ESTABLISHES SAMSUNG ELECTRONICS. IT
PRODUCES INEXPENSIVE TVS, MICROWAVE OVENS AND OTHER CONSUMER PRODUCTS
FOR WESTERN COMPANIES SUCH AS SEARS AND GENERAL ELECTRIC.
• 1970S: UNDER A GOVERNMENT POLICY OF RAPID INDUSTRIALIZATION, SAMSUNG
LAUNCHES A NUMBER OF ENTERPRISES IN SHIP BUILDING, PETROCHEMICALS AND
AIRCRAFT ENGINES.
• 1980S: THE COMPANY IS EXPORTING ELECTRONICS UNDER ITS OWN NAME.
• 1983: SAMSUNG BEGINS PRODUCTION OF PERSONAL COMPUTERS.
• 1987: LEE’S SON, LEE KUN-HEE , ASSUMES CONTROL OF SAMSUNG.
• 1988: SAMSUNG SEMICONDUCTOR AND TELECOMMUNICATIONS MERGES WITH
SAMSUNG ELECTRONICS. ITS CORE BUSINESS FOCUS IS HOME APPLIANCES,
TELECOMMUNICATIONS AND SEMICONDUCTORS.
• 1990: SAMSUNG BECOMES A WORLD LEADER IN CHIP PRODUCTION.
• 1994: SAMSUNG MOTORS IS FORMED.

• 1996: LEE KUN-HEE IS INVOLVED IN A CORRUPTION SCANDAL AND GETS A SUSPENDED SENTENCE FOR BRIBERY.

• 1998: SAMSUNG COMPLETES THE DEVELOPMENT OF FLAT-SCREEN TELEVISIONS AND BEGINS THE FIRST MASS PRODUCTION
OF DIGITAL TVS. SAMSUNG MOTORS DELIVERS ITS FIRST CARS.

• 2005: SAMSUNG DEVELOPS THE FIRST SPEECH-RECOGNITION PHONE.

• 2007: SAMSUNG GROUP IS ACCUSED OF POLITICAL BRIBERY AND INFLUENCE-PEDDLING THROUGHOUT THE SOUTH KOREAN
GOVERNMENT, JUDICIAL BRANCH AND THE MEDIA.

• 2012: SAMSUNG ELECTRONICS BECOMES WORLD’S LARGEST MOBILE PHONE-MAKER BY UNIT SALES, OVERTAKING NOKIA, THE
MARKET LEADER. U.S. JURORS RULE SAMSUNG MUST PAY APPLE (AAPL) $1.05 BILLION IN DAMAGES FOR VIOLATING SIX APPLE
PATENTS ON SMARTPHONE TECHNOLOGY.
Company profile

Industry Conglamerate
Founded 1 MARCH 1938,
FOUNDER Lee Byung-chul
Headquarters Seocho district,seoul, south
koreo
Areaserved World wide
Products Apprel, automative,
chemicals, consumer
electronics,medical
equipments
,telecommunications
equipments,home
appliances,DRAM,Ships
Number of employees 489000
Net income $22.1 billion
Revenue $305 billion
Total assets $529.5 billion
MISSION -
SAMSUNG’S MISSION SEEMS FOCUSED IN BUILDING ITS BRAND AND
BECOMING A CREATIVE LEADER IN NEW MARKETS. IT LOOKS LIKE
SAMSUNG IS SET TO CHANGE ITS REPUTATION OF BEING
FAST FOLLOWERS, A COMPANY THAT SUCCEEDS THROUGH WATCHING
OTHERS PIONEER NEW TECHNOLOGIES AND MARKETS AND THEN RUSH
IN BEHIND. THIS WAS SEEN WHEN SAMSUNG LOST A
HIGH PROFILE CASE TO I PHONE AFTER BEING ACCUSED OF THE
COMPANY’S PHONES WERE I PHONE’S RIP-OFFS THAT VIOLATED A
NUMBER OF PATENTS
• VISION-
“INSPIRE THE WORLD, CREATE THE FUTURE”, IS SAMSUNG MISSION
STATEMENT IN ITS VISION 2020. WITH THIS NEW VISION, SAMSUNG
COMMITMENT IS TO INSPIRE ITS COMMUNITIES BY TAKING ADVANTAGE
OF ITS KEY STRENGTH, CREATIVE SOLUTIONS, INNOVATIVE PRODUCTS
AND NEW TECHNOLOGY, AS THEY CONTINUE TO PROMOTE ITS NEW
VALUES FOR SAMSUNG CORE NETWORKS. THIS INCLUDES INDUSTRY,
PARTNERS AND EMPLOYEES. SAMSUNG HOPES TO CONTRIBUTE A BETTER
WORLD AND RICH EXPERIENCE FOR ALL, USING THIS EFFORTS . ALSO AS
PART OF ITS VISION, SAMSUNG HAS A PLAN TO REACH $400 BILLION IN
REVENUE AND BE CLASSIFIED AS WORLDS’ TOP FIVE BRANDS BY 2020.
SAMSUNG PRODUCTS
 SMART PHONES

• SAMSUNG DEVELOPED ITS FIRST LIGHTEST MOBILE IN THE YEAR 1993

AND THE MODEL IS SCH-R800
• IT WAS AVAILABLE IN CDMA NETWORKS
• DEVELOPED SMART PHONES WITH MP3 PLAYER TOWARDS THE END
OF THE 20TH CENTURY
• NOW THEY HAVE 41.6% OF SMART PHONES MARKET SHARE IN INDIA
• SAMSUNG WAVE S8500 AND S1900 GALAXY S LANCHED IN JUNE
2010
 CAMERA

• MAJOR DIGITAL CAMERA PLAYERS ARE CANON , NIKON , SONY ,

SAMSUNG AND PANASONIC.
• IN INDIA THE MAIN PLAYERS IS NIKON .
• TWO NEW NX MODELS WILL USE THE ANDROID OS
• NOW POLAROID AND NIKON ARE THE TWO COMPANIES HAVE
ANDROID BASED POINT AND SHOOT CAMERS
MARKETING MIX STRATEGIES OF SAMSUNG – SAMSUNG HAS
REACHED UNBELIEVABLE HEIGHTS WITH ITS SMART PHONES, WHICH
HELPED THE BRAND TO BECOME A SYMBOL OF QUALITY AND
RELIABILITY FOR ITS CONSUMERS.
• BESIDES THE PRODUCT, SAMSUNG IS FAMOUS FOR ITS CUSTOMER
SERVICE (SAMSUNG HAS ONE OF THE FASTEST PRODUCT SERVICES).
THOUGH, PRODUCT VARIATION IS THE MOST POWERFUL ASPECT OF
THE MARKETING MIX OF SAMSUNG.
• SAMSUNG MARKETING MIX PRICING STRATEGY – SAMSUNG MARKETING
STRATEGY INVOLVES TWO PRICING STRATEGIES AND LET’S SEE FOR WHAT
GOALS ARE THEY USED.

• SKIMMING PRICE – SMARTPHONES OF SAMSUNG ARE LEADING THE MARKET

WITH APPLE’S IPHONE. AS APPLE, SAMSUNG ALSO USES SKIMMING PRICE TO
GAIN THE UPPER HAND OVER THEIR COMPETITORS. FOR INSTANCE, GALAXY
S6 AND S6 EDGE ARE THE BRANDS NEW PRODUCTS OF SAMSUNG CARRYING
THE SLOGAN “NEXT IS NOW” AND CLAIMING THAT THEY ARE THE MOST
BEAUTIFUL SMARTPHONES EVER CREATED. WITHOUT A DOUBT, S6 EDGE (64
GB) THAT COSTS 1 180$ WILL BRILLIANTLY/SMOOTHLY SELL AROUND THE
GLOBE. BUT, WHAT WILL HAPPEN WHEN OTHER COMPETITORS WILL LAUNCH
A SMARTPHONE WITH IDENTICAL FEATURES? SIMPLE. SAMSUNG WILL LOWER
THE PRICE AND EASILY STEAL CUSTOMERS FROM THE COMPETITOR.
• COMPETITIVE PRICING – ONE OF MY FAVORITE PARTS OF SAMSUNG
MARKETING STRATEGY. DUE TO THE FACT, THAT UNLIKE SMART PHONES,
SAMSUNG HAS DIFFICULTIES IN GAINING AN EDGE OVER ITS
COMPETITORS WITH OTHER PRODUCTS (FOR EXAMPLE, SAMSUNG HAS
TROUBLE KEEPING UP WITH ROBOTIC VACUUMS LIKE THE ROOMBA 650
AND 880). SURELY, SAMSUNG IS AN AUTHENTIC BRAND, BUT IN TERMS OF
HOME APPLIANCE, IT CAN’T POSSIBLY SURPASS LG. FURTHERMORE, IN
CAMERAS CANNON AND NIKON ARE LEADING THE MARKET. SO, FOR
SAMSUNG TO WITHSTAND THIS FIERCE COMPETITION, IT’S VITAL TO
USE COMPETITIVE PRICING. ALSO, SAMSUNG NEVER IS A LATE COMER IN
PRODUCTION AND NON-INNOVATIVE, BUT THEY ARE MOSTLY THE FIRST
ONES TO INTRODUCE A CHANGE.
• PLACING IN SAMSUNG MARKETING STRATEGY – SAMSUNG USES CHANNEL
MARKETING IN ITS INDUSTRY. AND FROM THIS STRATEGY, ONLY SERVICE DEALERS ARE
TAKEN INTO ACCOUNT FOR CORPORATE SALES.
• RETAILERS WHO PRESENT THE TECHNOLOGY CHAIN ARE BOUND TO INCLUDE
SAMSUNG IN THEIR LIST, BECAUSE OF THE FIRM BEING A WORLD-FAMOUS BRAND AND
SAMSUNG CAN ALSO SERVE AS AN ALTERNATIVE FOR THE CONSUMERS.
• THE DISTRIBUTION IS A COMPELLING PART OF THE SAMSUNG MARKETING STRATEGY.
• IN CERTAIN CITIES, SAMSUNG HAS A CONTRACT WITH A SINGLE DISTRIBUTION
COMPANY THAT DISTRIBUTES THE PRODUCT THROUGHOUT THE CITY.
• FOR INSTANCE, MUMBAI IS A GREAT EXAMPLE OF A CITY, WHERE SAMSUNG
DISTRIBUTES ITS PRODUCT THROUGH A SINGLE COMPANY.
• PROMOTION IN THE 4PS OF SAMSUNG – SAMSUNG MARKETING STRATEGY
USES DIVERSE FORMS OF PROMOTION. AS COCA-COLA AND NIKE, SAMSUNG IS
CONVINCED THAT ADVERTISING IS ONE OF THE BEST FORMS OF PROMOTION TO
ENGAGE POTENTIAL CONSUMERS.
• BESIDES ADVERTISING, SAMSUNG APPROACHES DIFFERENT PROMOTIONAL
TACTICS TO MAKE CUSTOMERS BUY THE PRODUCT.
• FOR INSTANCE, QUITE OFTEN, SAMSUNG INTRODUCES DISCOUNTS, SPONSORS
EVENTS, ENGAGES WITH NATIONAL AND WORLDWIDE FESTIVALS, ETC.
• HENCE, THE SAMSUNG MARKETING STRATEGY SIMULTANEOUSLY HELPS THE
ORGANIZATION PROGRESS IN DIFFERENT ASPECTS.
• SPONSORSHIP – SAMSUNG IS ONE OF THE LARGEST COMPANIES IN
THE WORLD. TODAY, THEY HAVE 150,00 EMPLOYEES WORLDWIDE.
• SAMSUNG IS MOSTLY FAMOUS FOR ITS PRODUCT QUALITY, BUT
BESIDES THE GADGETS, SAMSUNG IS KNOWN FOR BEING A
SPONSOR GIANT. CURRENT SPONSORSHIP OF SAMSUNG IS SYDNEY
OPERA HOUSE, AUSTRALIAN OLYMPIC TEAM, NSWIS
AWARDS, OCEANIA FOUNDATION, ETC.
• ADVERTISING – SAMSUNG DOESN’T CONCENTRATE ON
COMMERCIALS LIKE COCA-COLA OR PEPSI, BUT THEY ALWAYS
PROMOTE THEIR MOST IMPORTANT PRODUCTS.
• TO GET THE HANG OF SAMSUNG’S ADVERTISING SYSTEM, LET’S
REVIEW SOME OF THEIR FAMOUS AND MOST SUCCESSFUL
ADVERTISEMENTS.
 THANK
YOU