samsungcasestudy-120423102751-phpapp02.docx

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CASE STUDY

SAMSUNG ELECTRONICS CO


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TABLE OF CONTENTS

1.1 Acknowledgment1.2 Introduction1.3 SWOT Analysis1.4 Segmentation strategy1.5 Market Targeting1.6 Positioning Strategy1.7 Product strategy1.8 Price strategy1.9 Value chain strategy1.10 Promotion strategy1.11 Financial status1.12 Recommendation to management1.13 Attachments of Samsung Products


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ACKNOWLEDGEMENT

Above all i would like to thank ALMIGHTY ALLAH whose guidance let mecourageous

every moment. I believe that he is the only sovereign authority who has the control of everythin

I extend my humble and deepest appreciation to my Respected Instructor M.A. Butt for t

keen interest taken by him in the completion of this report. He has been a constant source

inspiration and great help to me. His precious advices, instructions and knowledge of subject help

me immensely.

I am highly thankful to The Authors of Strategic Marketing, David Cravens and Nigel Pier

who were so helpful and provide me with necessary information and technical support where ev

required in their text book.


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INTRODUCTION

Samsung Electronics is a South Koreanmultinational electronics and information technolocompany headquartered inSamsung Town,Seoul.It is the flagship subsidiary of theSamsung Group.With assembly plants and sales networks in countries across the world, Samsung has approximately 160,000 employees.

In 2009, the company took the position of the worlds biggest IT maker by surpassing the previousleader Hewlett-Packard.

Its sales revenue in the areas of LCD and LED displays and memory chips is number one in theworld.

In the TV segment, Samsungs market position is dominant. For the five years since 2006, thecompany has been in the top spot in terms of the number of TVs sold, which is expected to continu

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, Samsungssmartphone lineup has retained the second-beslot in the world market for some time. In competition to Apple's iPad tablet, Samsung released theAndroid powered Samsung Galaxy Tablet.
http://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Samsung_Townhttp://en.wikipedia.org/wiki/Seoulhttp://en.wikipedia.org/wiki/Samsung_Grouphttp://en.wikipedia.org/wiki/Samsung_Grouphttp://en.wikipedia.org/wiki/Seoulhttp://en.wikipedia.org/wiki/Samsung_Townhttp://en.wikipedia.org/wiki/Multinational_corporation


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STRATEGIC OBJECTIVES OF SAMSUNG ELECTRONICS

SEGMENTATION STRATEGY

Market segmentation has three levels including

1. Strategic Segmentation-vision, strategic intent and product benefits2. Managerial Segmentation-resource allocation, alignment and planning3. Operational Segmentation-Marketing programs such as advertising, sales and distributions

Segmentation in the market-driven strategy process is segments, value opportunities, new markspace, 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 segments3. Forming market segments4. Finer segmentation strategies5. Selecting the segmentation strategyMARKET TARGETING

The market targeting options include a single segment, selective segments, or extensisegments. When segments are not clearly defined, product specialization or product varie

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 priexperience but it is more intense than emerging stage, and in mature stage multiple targetistrategies 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, texperience it offers or symbol it conveys.Developing positioning strategy requires integrating the product, price, value chain, a

promotion strategy to focus them on the market target. The positioning strategy matches tfirms capabilities with the buyers preferences.


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Due to Samsungs superiority in the general TV market, the threats as you can tareminimal. However, in the strategies and opportunities sections you will find what we aredoingreduce the risk of these threats having an affect on Samsungs market share.Developingpartnership with Microsoft will be a vital component to developing the 3Dgaming contavailability, which is the only relevant competitive advantage other thanpricing. As Samsuintroduces new 3D products to the market, the price of therecurrent products will drop, making thmore readily available to lower class consumersand expanding the target market for their 3products.4.6 Marketing Mix

Product StrategySamsung offers the most diverse product mix in the 3D market, offering LED,LCD and Plasma 3TVs. Samsungscash 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 mtechnologically advanced television remote, with which,you can stream live television to if yleave the room of the maindisplay and view content directly on the LCD screen on the face of tremoteAdvantages-The distinct advantage to buying a Samsung 3D TV for theconsumer is the knowledge that thhave bought the most cutting-edge, technologically advanced TV, in the 3D market.-The remotethe only one of its kind, offering consumers a distinctfeature they cannot get from any of SEcompetitors.-Samsungs9000 series is the thinnest TV ever produced.

Samsung offers the best 3D packages, consisting of 3D starter kits, 3D home theater surround soun3D 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 tproduct, will be unmatched bycompetitors.Because Samsung produces such a diverse product mthey can meet all theneeds of the 3D TV consumers with the products they offer, at a vecompetitive level.

Price StrategyThe price of the 9000 series is $5,999. However, Samsungsdiverse product mixof 3D TVs rangfrom $1,200-$7,000.


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

Market Research Findings1. Video Game MarketBecause we intend on entering into a partnership in the future with Microsoft todevelop a 3D gamisystem, researching the gaming market was essential. Accordingto DMW Media, global video gamsales totaled 41.9 billion dollars in 2009 and areexpected to grow 10.3% to 68.3 billiin 2012. Game console sales are expected toreach 34.7 billion dollars in sales by 2012 with a 6.9annual growth rate.2. What leads us to believe we can sell 3D TVsin this market?According to FutureSource, 3D TV sales have been healthy and are beginning tosurpass HDTV saat the same point in HDTVs life. FutureSource also says that bythe end of 2010, 6.2 million 3TVswill have been sold worldwide, with 1.2 million of those being sold in Europe. 10 million aexpected 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 focof the study was on what the current consumer felt about the 3Dproducts available, and whimprovements could be made in the eyes of the consumer.The group consisted of 10 avera

consumers, 5 men and 5 women. 5 of the people inthe group had used our Samsung 9000 Series 31080p LED HDTV, while the other 5had never used a 3D TV and were simply asked what ththought about the idea of purchasing one and the overall concept of 3D TVs.


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Marketing Objectives

1. Enter into the 3D video Gaming Market through a partnership with microsoftIn order to capitalize on the growing video gaming market, we intend on enteringinto a partnershwith Microsoft to develop a virtual gaming product. Short term, wewould like to couple 3D Ttechnology with a dominant video gaming console like theXBOX 360. By the year 2020 we inteon launching a virtual gaming product.2. Launch a comprehensive ad campaign that focuses on SEscompetitiveadvantage in 3D technology.

An ad campaign focusing on our competitive advantage in technology would behighly effectiveselling more 3D TVsto developing market. We want to make it knownthat Samsung was the firstpioneer this technology, therefore, they are getting themost advanced product in the markOur 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 Glassesera and prepare themarket for a glassless

TV.

Having already established a firm hold on the 3D market, we would like tomaintain our positionmarket leaders in 3D technology with the use of 3D glasses. Asthe market evolves closer glasses free technology we would like to prepare themarket for our product release in 2014. Oobjective is to see our market share remainat 88% until the release of our glasses-free product2014.

Financial Marketing Plan

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


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An average ad during the super bowl is $1.1 million dollars for one 30-second Spot. We would lik500 million dollar advertising budget to effectively advertise for a six-month period. This goal wbe 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 ause different strategies to catch opportunities and resist the threats coming from its competitors hiring well experienced and talented marketing executives, officers, and managers.


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SAMSUNG PRODUCTS


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