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BUILDING A GLOBAL BRAND
_GROUP 7_
Hoang Thi Ngoc Huyen M987Z239
Krissapon ApinyaupatumM997Z241
Nguyen Thi Thu TrangM997Z210
Antun Paradzik M997Z223
Hyacintha FAUSTINO M997Z
Le VanM997Z246
OUTLINE I. INTRODUCTION : Beginning & history
VIII. Conclusion
II. A successful story
III. 1990 Crisis & Explaination
IV. Rebranding, the beginning of a new story
V. New R&D Strategy
VI. SWOT analysis
VII. 4 P’s analysis
INTRODUCTION
Samsung Electronics Company was established in Korea in 1969. It is the largest « Chaebol » in South Korea
During that time, the company only manufactured cheap TV sets labelled under the « Sanyo brand name »
Over the time, It became one of the world's leading electronics companies, specializing in digital appliances and media( flat screen displays, plasma TVs, cellphones…) , semiconductors, memory chip.
A SUCCESSFUL STORY 1/2
A double competitive strategy:
Production of technical components or low-cost manufactured products for well-known firms like Dell, HP, General Electric…
Sales of consumer products under the Samsung brand at very low prices through discount chains like Wal-Mart, Carrefour
A SUCCESSFUL STORY 2/2
Its success comes from its resources that can be divided into 3 parts:Technology: it has innovative technology in R&D market.Human resources: it has great human resources and policies. It does not care about employee’s background but they only hire employees who have skills. Then they reward those employees through development of their abilities.Corporate strategy: creating partnership with different companies to access on markets Samsung could not enter before.
ISSUES CAME
What happened with Samsung in 1996?
ISSUES CAMEBecause of low cost strategy:1. Capacity > Demand2. Sales and profits decreased3. Down-market image
Crisis in 1997Losing $170 million/month
SOLUTIONSHow toovercome theissues?
REBRANDING: THE BEGINNING OF A NEW STORY Samsung appear more stylish, and high
standard brand with technically superior products
They tackle the digital market (digital world Vs. analog world)
Collaboration with designers, engineers, marketers to achieve the new strategy
Reorganization of distribution channels
NEW R&D STRATEGY Innovative product development 17 research centers around the globe 9 % of the firm’s total revenues invested in
R&D ($ 5 Billion)
STRENGTHSStrong management and dynamic human resource with knowledge and experience of electronics market.
Strong global presence with strong brand and customer base (Samsung is one of twenty the best global brands from 2009).
Well diversified and differentiated product line, to meet changing customer needs (focus mainly on 4 core digital technologies) -> gain an advantage over the competitors, cover customer’s electronic needs.
STRENGTHSOrienting product strategy to “a stylish, high quality brand commanding a premium price” -> design product with high quality in attractive styling that catching the pulse of customer in different countries.
Marketing strategy with making extensive use of more contemporary promotion tools (such as product placements, sponsorships and internet advertising) contribute in part to well_known brand raising.
Spend a high percentage of revenue on R&D -> an excellent research and development capabilities.
Best Global Brands-2010
Rank Previous Rank Brand Country of
Origin Sector Brand Value ($m)
Change in Brand
Value
14 14 United States
Business Services 23,219 5%
15 15 Germany Automotive 22,322 3%
16 16 France Luxury 21,860 4%
17 20 United States Electronics 21,143 37%
18 17 United States Tobacco 19,961 5%
19 19 South Korea Electronics 19,491 11%
20 18 Japan Automotive 18,506 4%
WEAKNESSES"Samsung is not yet a brand that can live
without the product”.
Some still perceive Samsung as a low-cost brand (Customer perception of weak product attributes like Durability).
Focus on mass market instead of niche market.
16Marketing Management
OPPORTUNITIES• Samsung is well known because of products’ differentiation.
• New developed products : “Eco-Product”, “Good Eco-Product,” or “Premium Eco-Product”
•Marketing for all people , not only young, also older generations
• The high end value driven proposition helps increase the Market Share.
• Cooperation with other companies.
THREATS• The consumer durable industry is not in the best of health.
•Downtrend in the consumer durables market, due to increased of price inputs and continuing price erosion
• Competitors can produce the new product with the competitive price
• New companies enter IT sector
PRODUCT
PROMOTION
PricePrice
4P’s IN MARKETING
PLACEPLACE
PRODUCT• Emotional : Attractive styling, Modern image,
Additional value• Functional : Innovative product plus high quality• Unique Selling Point• Mass production which allow cut-cost and
standardize parts• Samsung’s product was developed to be suited for
different users in different countries
PRICE• Premium price (Being worth price to pay)• Customer's perceived value of the product is
high• Great range of price ranking, customized
price category • Don’t want to pursued competition with
Chinese low prices
PLACE
• Pull out of low price discount chain• Push product through the electronic
special stores, ex; IT Mall, Best Buy, Circuit City
• Samsung official shops• Point of purchase: in every store,
Samsung products must be on the visible place
• Product placement: mainstream movies, music, way of life
• Sports sponsorships : - Olympic summer and winter games
from 2010 until 2016 - Football: African Football Cup 2010 - Biggest sponsorship deal in British
football history- FC Chelsea
Promotion
MARKET SHARE
CONCLUSIONSamsung brand became worldwide know
A symbol of reliability and quality
Challenge for the future : maintain their position , expand their range of IT products
The company also needs to improve some specific product market shares
The next achievement will be how to reach an Iconic level.
THANK YOU!