Project of global marketing MBA (4)

A PROJECT ON SAMSUNG

By

Fatima Razzaq 0007

Momna Tabassam 2098

MBA (4th)

Submitted to

PROF. FAROOQ QAISER

At

DEPARTMENT OF BUSINESS ADMINISTRATION

UNIVERSITY OF CENTRAL PUNJAB FAISALABAD

CAMPUS

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 Acknowledgement
We are thankful to Almighty Allah who is the creator of this universe and blessed us to write this
project.

We are also thankful to Hazrat Muhammad (PBUH) who is the important guide of humanity.

We are also thankful to the director of University of central Punjab Faisalabad campus who
established such a marvelous campus and provided the opportunity to learn in such a scholarly
manner.

We are also thankful to our professor Farooq Qaiser who guided us to write this project and opened
the vista of our mind.

We are also thankful to vice principle of the campus who has facilitated a lot of educational
activities.

We are also thankful to our friends, seniors and colleagues who have supported and encouraged
us to complete the arduous job.

We are also thankful to our parents and our brothers, sisters who always prayed for us to complete
this assignment.

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 Executive Summary
This project is about the Samsung ,an electronics manufacturer company. There is a brief
description about the history of the company and how the company came into existence. An
explanation of the company’s product line , detailed strategies about the product innovation and
design, existing and future strategies are discussed. The region wise strategies of the company are
mentioned to find out the changes that are performed by the company according to the regions.
The SWOT analysis is done to analyze the internal and external forces that have an impact on
company performance.

The marketing mix is deliberated in which all the 7Ps are discussed to formulate a complete detail
about the company’s departments and strategies used in these departments. The way company
position itself and the promotional strategies of Samsung company are taken into consideration.
The current business and growth strategies are discussed to find out the expansion tactics of
Samsung.

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Table of Contents

Acknowledgement ........................................................................................................................... i

Executive Summary ........................................................................................................................ ii

Chapter 1 ......................................................................................................................................... 1

Overview of the company ............................................................................................................... 1

History ......................................................................................................................................... 1

Introduction ................................................................................................................................. 3

Samsung’s Mission Statement ..................................................................................................... 4

Samsung’s Vision Statement ....................................................................................................... 4

Samsung Logo ............................................................................................................................. 5

Samsung’s Brand Positioning ...................................................................................................... 5

Samsung’s Core values ................................................................................................................ 6

Chapter 2 ......................................................................................................................................... 7

Product line of Company ................................................................................................................ 7

Samsung home appliances ......................................................................................................... 10

Samsung laptops ........................................................................................................................ 11

Samsung chromebook................................................................................................................ 13

Samsung mobile phones ............................................................................................................ 14

Samsung gear ............................................................................................................................. 15

Chapter 3 ....................................................................................................................................... 16

Planning and strategies ................................................................................................................. 16

Current Strategy of Samsung ..................................................................................................... 16

Business strategies ..................................................................................................................... 16

Effective market readership ........................................................................................... 16

Scanning and utilizing opportunities in the market ........................................................ 16

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 New product development ............................................................................................. 17

Innovation and Design Strategy ................................................................................................ 18

Design strategy ............................................................................................................... 18

Compliance Management Strategy............................................................................................ 18

Growth strategies ....................................................................................................................... 19

Market Penetration ......................................................................................................... 19

Product Development ..................................................................................................... 19

Market Development ...................................................................................................... 19

Entry Strategies and International Competitive Strategies ........................................................ 20

Operational Control, Production And SCM strategies .............................................................. 22

Procurement ............................................................................................................................... 22

Manufacturing ........................................................................................................................... 23

Sales ........................................................................................................................................... 23

After Service .............................................................................................................................. 23

Regional strategies ..................................................................................................................... 23

Maintain a consistent brand across cultures. ............................................................................. 23

Use localization to support a consistent brand and a consistent customer experience .. 24

Use of Customized content to make customers feel appreciated. .................................. 24

Trans creation is the cornerstone to a successful international marketing strategy. ...... 24

Focus on emerging markets............................................................................................ 25

Future planning .......................................................................................................................... 25

Chapter 3 ....................................................................................................................................... 27

SWOT Analysis ............................................................................................................................ 27

Chapter 4 ....................................................................................................................................... 32

Challenges and competitors .......................................................................................................... 32

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 Challenges faced by samsung .................................................................................................... 32

Rapid change in business environment .......................................................................... 32

Protection of new technology......................................................................................... 32

Chinese companies aggressive entry in global market................................................... 32

Companies imitate the smartphone designs ................................................................... 33

Legal restrictions and lawsuits ....................................................................................... 33

Increased demand ........................................................................................................... 33

Competitor analysis ................................................................................................................... 33

Chapter 5 ....................................................................................................................................... 35

Marketing mix of Samsung ........................................................................................................... 35

Price strategy ............................................................................................................................. 35

Skimming Price .............................................................................................................. 35

Competitive Pricing........................................................................................................ 36

Product line pricing ........................................................................................................ 37

Product Strategy ........................................................................................................................ 37

Place........................................................................................................................................... 38

Modern retail segments .................................................................................................. 38

Retail giants .................................................................................................................... 39

Sole distributors.............................................................................................................. 39

E-commerce channels .................................................................................................... 39

Sales and service dealers ................................................................................................ 39

Online sales .................................................................................................................... 39

Promotion .................................................................................................................................. 40

Promotional strategies .................................................................................................... 41

Offline and online channels............................................................................................ 41

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 Focus on digital marketing ........................................................................................................ 42

Advanced marketing & investment effectiveness ..................................................................... 43

Chapter 6 ....................................................................................................................................... 44

Samsung positioning strategy ....................................................................................................... 44

Multi-segment positioning ............................................................................................. 44

Imitative positioning ...................................................................................................... 44

Anticipatory positioning................................................................................................. 44

General strategies for positioning .................................................................................. 45

Strategic sponsorships ............................................................................................................... 45

Conclusion .................................................................................................................................... 47

Recommendations ......................................................................................................................... 48

References ..................................................................................................................................... 49

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Chapter 1

Overview of the company

History

Samsung, South Korean company that is one of the world’s largest producers of electronic devices.
Samsung specializes in the production of a wide variety of consumer and industry electronics,
including appliances, digital media devices, semiconductors, memory chips, and integrated
systems. It has become one of the most-recognizable names in technology and produces about a
fifth of South Korea’s total exports.

Samsung was founded as a grocery trading store on March 1, 1938, by Lee Byung-Chull. He
started his business in Taegu, Korea, trading noodles and other goods produced in and around the
city and exporting them to China and its provinces. After the Korean War, Lee expanded his
business into textiles and opened the largest woolen mill in Korea. He focused heavily on
industrialization with the goal of helping his country redevelop itself after the war. During that
period his business benefited from the new protectionist policies adopted by the Korean
government, whose aim was to help large domestic conglomerates by shielding them from
competition and providing them easy financing. The word Samsung means "three stars" in Korean.
It became the name associated with different types of business establishments in South Korea and

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in various parts of the world. Internationally, people associate the name with electronics,
information technology and development.

In 1969, Samsung Electronics was born. From there, the company started acquiring and creating
different business establishments including a hospital, paper manufacturing plant, life insurance
company, department stores and many others. Samsung first entered the electronics industry in
1969 with several electronics-focused divisions—their first products were black-and-white
televisions. During the 1970s the company expanded its textile-manufacturing processes to cover
the full line of production—from raw materials all the way to the end product—to better compete
in the textile industry. During the 1970s the company began to export home electronics products
overseas. At that time Samsung was already a major manufacturer in Korea, and it had acquired a
50 percent stake in Korea Semiconductor. In the 1990s Samsung continued its expansion into the
global electronics markets. Despite its success those years also brought about corporate scandals
that afflicted the company, including multiple bribery cases and patent-infringement suits.
Nevertheless, the company continued to make advancements on the technology and product-
quality fronts, with a number of its technology products—ranging from semiconductors to
computer-monitor and LCD screens—climbing into top-five positions in global market share.

The 2000s witnessed the birth of Samsung’s Galaxy smartphone series, which quickly not only
became the company’s most-praised product but also frequently topped annual lists of the best-
selling smartphones in the world. Since 2006, the company has been the top-selling global
manufacturer of televisions. Beginning in 2010, the Galaxy series expanded to tablet computers
with the introduction of the Galaxy Tab.

Samsung has also continued to expand in the mobile phone market, becoming the largest
manufacturer of mobile phones in 2012. To remain a dominant manufacturer, Samsung has
earmarked $3-4 billion to upgrade their Austin Texas semiconductor manufacturing facility.
Samsung announced the Gear VR in September 2014, which is a virtual reality device developed
for use with the Galaxy Note 4. Also in 2014, Samsung announced that they would begin selling
fiber optics to glass manufacturer Corning Inc.

By 2015, Samsung had more US patents approved than any other company, being granted over
7,500 utility patents before the end of the year. Samsung released a fitness smart watch in 2016

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called Gear Fit 2, as well as wireless ear buds called Gear Icon X. By the end of the year, the Gear
G3 smart watch was announced. In late 2017, the company continued to release products: The
Galaxy Note 8 was a particular triumph for the company, which had struggled with manufacturing
issues during the release of the Galaxy Note 7.

Introduction

Samsung Electronics Co., Ltd. is the chief subsidiary of South Korea's giant Samsung Group and
the largest electronics producer in Asia. Samsung Electronics operates four main divisions
including Digital Media, Semiconductors, Information & Communications, and Home
Appliances. The company sells televisions, video, and audio equipment; computers and related
products; phones, cellular phones, and fax machines; home appliances; semiconductors; network-
related products; factory automation products; fiber optics products; closed circuit security
products; motors and compressors; and solar energy systems. In 2000, Samsung Electronics held
the leading market position in the code division multiple access (CDMA) Handset, DRAM,
SRAM, and color monitor markets.

Samsung Electronics Co., Ltd. is Korea-based company principally engaged in the manufacture
and distribution of electronic products. The Company operates its business through three segments.
The Consumer Electronics (CE) Segment is mainly engaged in the manufacture of color televisions
(CTVs), monitors, printers, air conditioners, refrigerators, laundry machines and others. The
Information Technology & Mobile Communications (IM) Segment is mainly engaged in the
manufacture of computers, handhold phones (HHPs), network systems, digital cameras and others.
The Device Solutions (DS) Segment is mainly engaged in the manufacture of semiconductor and
display parts, including dynamic random access memories (DRAMs), flashes, thin film transistor-
liquid crystal displays (TFT-LCDs) and others. The Company distributes its products within
domestic market and to overseas markets.

Samsung Electronics Co. Ltd has just been named as the number one consumer electronics brand
in the world and is an acknowledged leader in the digital convergence revolution. Since its
inception in 1969, Samsung has successfully transitioned from an analogue driven product line to
a cutting-edge and award-winning digital innovator that is currently the world's number one
manufacturer of CDMA mobile phones, LCD and CRT monitors, DRAM memory chips and

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microwave ovens. With worldwide electronic product sales of $US36.9 billion, over
75,000employees and a global network in 47 countries, Samsung is truly a global giant and has
been recognized as one of the world's top 100 Brands by BusinessWeek magazine.

Samsung, South Korean company that is one of the world’s largest producers of electronic devices.
Samsung specializes in the production of a wide variety of consumer and industry electronics,
including appliances, digital media devices, semiconductors, memory chips, and integrated
systems. It has become one of the most-recognizable names in technology and produces about a
fifth of South Korea’s total exports.

Samsung’s Mission Statement

Samsung’s mission statement is

“We will devote our human resources and technology to create superior products and
services, thereby contributing to a better global society.”

This corporate mission was published in the 1990s, when the company was undergoing rapid
global expansion in various semiconductors, electronics, and related technology markets. Based
on its business operations and current international industry positioning, Samsung focuses on the
following components in its corporate mission:

 Human resources and technological resources

 Superiority of products and services
 Improvement of the global society

Samsung’s Vision Statement

Samsung’s corporate vision is to

“Inspire the world with our innovative technologies, products and design that enrich
people’s lives and contribute to social prosperity by creating a new future.”

The company follows this vision statement to maintain profitable technology business operations
that contribute to the improvement of people’s lives. Samsung frequently refers to a shortened
version of this corporate vision: “Vision 2020: Inspire the World, Create the Future.” The company

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extensively implements this statement throughout its subsidiaries’ operations in the consumer
electronics, computing technology, and semiconductors industries. The following components are
contained in Samsung’s vision statement:

 Global inspiration
 Innovation
 Improvement of lives and future social prosperity

Samsung Logo

 First logo was developed in the year 1958

 2nd logo from the year 1979-1993
 It was the present logo of Samsung from the year 1993 Tagline: “Inspire the World, Create
the Future”

Samsung’s Brand Positioning

‘’Stylish cutting edge design and superior technology’’

Samsung's positioning statement is one that asserts its differentiation from other mobile phone
providers. Samsung came up with new ideas to be more customer-focused and creative in order to
establish a strong brand image in the global market. Their main focus is to make handsets with
the most amazing and unique designs in order to meet their customer’s expectation.

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Samsung’s Core values

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Chapter 2

Product line of Company

An organization with several product lines has a product mix. A product mix or product portfolio
of Samsung consists of all the product lines and items that a particular seller offers for sell. Each
product line consists of several sub lines.

A company’s product mix has four important dimensions:

 Width
 Length
 Depth
 Consistency

1. Width: Width refers to the numbers of different product lines of the company.

2. Length: Length to the total numbers of items the companies carries within the product line.

3. Depth: Depth refers to the numbers of versions offered of each product in the line.

4. Consistency: Consistency refers to how closely the various product lines are in end use
production requirement, distribution channels or some other way.
A product mix is the variety of product lines a company has. Samsung’s product mix includes
computing, home, mobile, and television appliances.

 The computing products include laptops, tablets, printers and desktops.

 The home appliances are items such as refrigerators, ovens, washers and vacuums.
 The mobile and television products include phones, headphones, televisions, and Blu-ray
players. After considering all the products Samsung has, you can see that they are an
electronics company. Televisions fit into their product mix because it adds to their focus
of electronics.
 Samsung’s television product line, the different product types are 4K Ultra HD, Smart,
Curved and LED TVs. The product line length is four product types long and the depth

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 varies with each product type. For the 4K Ultra HD television, there’s a Q6F, NU7100,
Q7F, MU6070, NU6900, MU6290, NU8000 and around eight more different series. For
this product type the depth is about 15 series long. This is the same for the Smart, Curved
and LED televisions.

In conclusion, Samsung has a lot of products in their product mix. Their product width is 4 different
products wide which includes televisions. Samsung offers four different types of television The
product length for their television are very long because of all the different version Samsung offers
for customers.

SAMSUNG’S Product Mix

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In this Product mix table there are total

Width: 07

Length: 65

Depth: 62

Samsung home appliances

Samsung currently occupies a critical position of influence over whether their devices are designed
and built for the planet. Samsung is both the world’s largest manufacturer of smartphones and is
also one of the largest manufacturers of memory, displays,Home appliances and the integrated
circuits that serve as the engines for our electronic devices, making the company a critical supplier
to many of the other companies in this year’s Guide. Unfortunately, in neither Samsung’s product

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lines nor the operation of its factories did we find much evidence that reducing Samsung’s
environmental impact has been been made a priority by the company’s leadership.

The Tuscan Stainless Steel finish beautifully complements the textures and materials most current
in today's design market. It evokes something elevated yet still versatile. This new finish works
best with materials that are rich in texture. Rift oak woods with wonderful grain lines, warmer
paint colors and thick veined marble slab with lots of variation are the perfect match for the warm

hues and tones of the Tuscan line. 
 All supported by Alyssa Kapito's leading design firm.

 Tuscan’s depth of tone is a wonderful complement to richer materials and quality hardware.
 The Tuscan color palette has the perfect hue and finish to elevate any kitchen palette.
 Clean lines and modern form blend beautifully into more sophisticated appliances that
bolster a more refined kitchen.
 The Tuscan lineup is versatile and blends beautifully into any contemporary décor marked
by sophistication and style. Find inspiration for your home with these looks.
 Models also offered in Stainless Steel and Black Stainless Steel.

Samsung laptops

Samsung has a small selection of laptops, but the company offers a range of prices. The cheapest
notebook the company sells is the Notebook Flash , and the only mid-range laptop is the Notebook

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5). There is Samsung Notebook 7 Spin, which is a mediocre-looking 2-in-1 with poor battery life,
but it also has a nice display and a comfortable keyboard. The Galaxy Book 2 is the more premium
option, which boasts a 12-inch OLED display and a built-in LTE connection.

The Notebook 9 Pro is an excellent entry, especially for the price, but we would like to see a
workstation to go up against the 15-inch MacBook Pro. The most powerful laptop that Samsung
offers is the company's one and only gaming laptop,

the Notebook Odyssey Z even an overpowered workstation — anything that strays away from the
hit-or-miss cheap-premium consumer laptops.

The laptop range is characterized by

 Designs (Stylish. Slim. Stunning)

 Convenience
 Battery life
 Comfortable keyboard(Style & Substance)

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  (3:2) Quad HD Touchscreen

A clear Quad HD screen means high-quality performance in both tablet and laptop mode. So no
matter work, play, or just watching your favorite shows, everything looks better on your
Chromebook.

Samsung chromebook

The Samsung Chromebook 3 delivers everything you need from easy web browsing to built-in
security features to a long battery life in a compact, durable design. Weighing only 2.54 pounds
and measuring 0.7-inches thick, the Chromebook 3 is easy to take with you anywhere you go.

At-a-glance features

 Intel Celeron N3060 processor

 11.6” HD Anti-Reflective Display

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  up to 11 hours on a single charge

Samsung mobile phones

Samsung Smartphone leads the Smartphone sectors as well holding 32.1% market share. Their
main competitors are Apple in Smartphone and Nokia in featured phones. Samsung Mobile highly
trusts on innovations and they have introduced many innovative ideas to the mobile phone users.
Their latest innovation is the Galaxy Round, a Smartphone with a curve screen. Samsung is always
investing in brand new ideas and innovations to win their market share. As such this investigation
is very significant for Samsung to identify how they can lead the market and increase their market
share through innovations and new product designs competitively.

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Samsung gear

Samsung Gear S is a smartwatch designed and marketed by Samsung

Electronics. It was announced on August 28, 2014, as the successor to the
Samsung Gear 2 and was released on November 7, 2014. The smartwatch
can be modified to run Android. Its successor, the Samsung Gear S2, was
released on October 2, 2015. The Samsung Gear S smart watch has an
elegant curved Super AMOLED display for a comfortable fit,with 3G, Wi-
Fi and Bluetooth, the Samsung Gear S lets you make / receive calls and
messages even without your phone. The Samsung Gear S is your perfect
health and fitness companion.

 Advanced Communicator

With 3G, Wi-Fi and Bluetooth, the Samsung Gear S lets you make / receive calls and messages
even without your phone. The on-screen keyboard supports up to 69 languages.

 Smart Wearable Experience

Be active and productive on the go with useful Gear S features and apps. Get step-by-step walking
directions, use enhanced S Voice to do things hands-free, enjoy 24-hour news and stay fit with S
Health.

 Revolutionary Style

The Samsung Gear S smart watch has an elegant curved Super AMOLED display for a comfortable
fit. Express your style with changeable straps and screen clocks. See info and alerts on a beautiful,
easy-to-use interface.

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Chapter 3

Planning and strategies

Current Strategy of Samsung

Business strategies

Samsung business strategy is marked with a high level of flexibility in a way that the company is
determined in changing its strategy dramatically according to changes in external business
environment. Few people know that the Samsung initially started as a grocery store in Korea in
1938, switched to noodle business in 1940 and moved to sugar production in 1950. Later, Samsung
became engaged in woollen mill in 1954 and insurance and securities business in 1956.

Samsung produced black and white TV as the first technological product in 1960 and since then
the company emerged as one of the leaders in technology and electronics market segments in the
global scale. Frequent change of direction and new product development persists as important
features of Samsung business strategy to this day.

Samsung business strategy consists of the following three pillars/elements/parts:

 Effective market readership

A market reader can be defined as a company that closely observes the market and is fast in
replicating new products and/or introducing new features in existing products, initially introduced
by other companies. Specifically, Samsung has proved effective in replicating the design and
important features of smartphones from its main competitor, Apple. It has been noted that “one
internal Samsung presentation from 2010 provided a step-by-step process for Samsung engineers
to follow in an effort to steal so much of what made the iPhone such a unique product”.

 Scanning and utilizing opportunities in the market

Samsung business strategy integrates constant search for gaps in the market and exploits the
opportunity with positive implications on the bottom line for the business. For example, Samsung

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noticed that Asian-language speakers in particular wanted a device that they could hand-write on,
because drawing characters is easier with a pen. The result was a development of series of Samsung
Note devices as a combination phone/tablet (“phablet”) that’s been an unexpected hit.

 New product development

Samsung Electronics has an extensive product range that includes hundreds of product types and
is arranged along three product divisions:

 IT & Mobile Communications (IM)

 Consumer Electronics (CE)
 Device Solutions (DS)

The multinational electronics company has 36 R&D centres across the world to secure core
technology for the future and invested KRW 14.8488 trillion in R&D in 2015. Samsung is the 2nd
largest patent holder in the US since 2006.[3] Accordingly, new product development capabilities
have been firmly established as one of the strong bases of Samsung competitive advantage.

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Innovation and Design Strategy

In January 2008, Samsung Electronics won 32 innovation and design engineering awards at the
Consumer Electronics Show. This is a management strategy case that explores product design,
innovation strategies and strategic planning in a changing competitive landscape. While
investment in R&D and product design has rewarded Samsung Electronics with its dominant
market position and premium brand perception, such dominance may not be sustainable in the long
run, especially now that competitors are achieving higher profitability with lower investments in
R&D per product. The case also discusses such issues as product design philosophies, innovation
strategies, localization of products, product design outsourcing for consumer electronics products.

 Design strategy

Design strategy is a discipline which helps firms determine what to make and do, why do it and
how to innovate contextually, both immediately and over the long term. This process involves the
interplay between design and business strategy, forming a systematic approach integrating holistic-
thinking, research methods used to inform business strategy and strategic planning which provides
a context for design. While not always required, design strategy often uses social research methods
to help ground the results and mitigate the risk of any course of action. The approach has proved
useful for Samsung company in a variety of strategic scenarios. Samsung's Plan to Strengthen Its
Weaknesses.

Compliance Management Strategy

Samsung Electronics has established a new compliance system to prevent and minimize business
risks associated with issues such as collusion and violation of intellectual property rights. We have
instituted a compliance program that includes preemptive and year-round training, control and
supervision in order to ensure adherence to pertinent laws by the company and all employees and
mitigate risks related to violation of laws and regulations. Our compliance activities are broadly
classified into prevention, monitoring and follow-up processes.

Prevention activities include employee education, distribution of manuals on compliance, system-

based self-inspections, and operation of a help desk to respond to questions on compliance matters.

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We also keep up to date with the introduction and revision of various laws and regulations. There
is a separate team dedicated to monitoring activities. After dealing with a compliance issue, we
analyze the related process and outcome to find the fundamental cause and pursue improvement
measures. Real life examples are used in training programs as a way of preventing recurrence of
any compliance problems that arise.

Growth strategies

 Market Penetration

Samsung maintains its market shares. the organization innovates its product so that their potential
customers doesn’t get bored with the product and they can attract new customers. In this way their
customers will be satisfied with the product and this can lead to greater market share for Samsung.

 Product Development

Samsung targets same old customers with a new product. By launching a new product, they will
attract more customers towards their product and can increase their market share by doing so. For
the awareness of the product, they advertise in TV, newspaper, and pamphlets and on billboards.

Example: Samsung launching Galaxy S5 mobile phone

 Market Development

Samsung entering a new market will cause an increase in market growth and its market shares. By
adopting this strategy, they enter a new market by targeting new customers in other areas. New
market for Samsung could be a new Country or a new City within the same country it is operating
in before.

Example: Samsung introducing its product in a village or a new country.

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Entry Strategies and International Competitive Strategies

 Samsung has a diverse global portfolio and therefore enjoys an extensive global coverage.
 While choosing a new marketplace, Samsung basically aims at achieving economies of
scale.
 A thorough market research is conducted and those markets are selected where the
company can get cheaper factors of production and sell mostly standardized products with
limited localization (Levine, 2015).
 Samsung prefers cost-leadership over differentiation strategy while operating
internationally. In fact the company has been widely criticized for its strategy to copy
rivals. Out of the four common foreign market entry strategies: licensing, joint venture,
exporting and sole venture, the company mostly employs joint venture approach (Glowik,
2016). Samsung believes in forming strategic relationships which has aided the firm in
emerging as a world-class leading technological firm (Levine, 2015). Its diversified

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portfolio helps in risk aversion at many times when there are adverse situations in any of
the partner nations.

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Operational Control, Production And SCM strategies

The entire operational control and manufacturing system in Samsung is vertically integrated which
assists the company is excelling in its supply chain (Degun, 2014). The operations management
and control in Samsung Electronics is governed by the basic Japanese approach wherein
innovation was concentrated upon(Jung, 2014). Though quality compromise was strictly
prohibited but organization was encouraged to be more cost effective. The operations revolved
around low-cost manufacturing systems along with being customer centric (Jung, 2014).The
overall value chain of Samsung is depicted in figure below:

Procurement

Samsung outsources its major production into China which gives them the benefit of spending
lower and earning higher. It gives them an edge on in the market to be competitive in terms of cost
and sell.

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Manufacturing

Samsung has cultivated an ability to quickly understand the functions and imitate and where
possible given its strength, improve, on competitor’s product. Because it has the ability to
manufacture products quickly as a contract manufacturer, it has the skill, to produce incremental
product improvements quickly.

Sales

By 2020 Samsung is focusing to achieve USD 400 billion annual sales while placing Samsung
electronics overall brand value among the global top

After Service

Samsung’s biggest strength is customer-centricity and continuously innovating to meet the

requirements of its customers. The launch of the innovative customer service plazas and its strong
customer service network is testimony of our commitment to the customers. Their innovative
service delivery model will enable them to deliver customer delight at each step and further drive
brand loyalty.

Regional strategies

Maintain a consistent brand across cultures.

No matter what country you’re in, Samsung’s products are the same. Their products, their adverts
and their website use the same clean, minimalist design the world over. Samsung Products all have
the same features. The visuals on the website are the same no matter what language option you
choose. We talk quite a bit about the importance of customizing your marketing and your website
to account for different cultural preferences. But it’s also important that your brand maintains an
underlying consistency. Samsung is not known for catering to their customers.

When you buy a Samsung product, you’re buying Samsung’s vision.

So, it makes sense that they would customize their content and products less than other brands.

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  Use localization to support a consistent brand and a consistent customer
experience

Samsung’s international marketing has been described as “one size fits all,” but that’s not really
accurate. Their brand depends on providing a consistent customer experience, every time someone
interacts with the company or with their marketing. No matter where that person lives or what
culture they’re from, they should come away with the same impression of Samsung and their
products. Here’s the thing: There’s no way to ensure that kind of consistent, high-quality
experience across different languages and cultures without localization.

 Use of Customized content to make customers feel appreciated.

For many Western companies, the Chinese market is an especially hard nut to crack. That’s not
true for Samsung. In fact, a fifth of their revenue currently comes from China.

One way that Samsung appeals to Chinese consumers is through customizing content. For
example, when they updated their Garage Band music creation software to include Chinese
language support, they also added traditional Chinese instruments like the erhu and the pipa.
According to Common Sense Advisory, “This striking act of “radical localization” projects an
image of China’s importance to samsung users elsewhere in the world and keeps customers in
Greater China happy.”

Customer focused design Product Unique design philosophy:

“Create an Emotional Journey” that focuses on the integration of sophisticated style,

versatile convenience and emotional reactions from customers to create a more enjoyable
and fulfilling user experience”

 Trans creation is the cornerstone to a successful international marketing

strategy.

On the Samsung website, content in other languages is professionally translated or trans created
by local copywriters. This ensures that it’s just as effective in the target language as it was in the
original English.

24
  Focus on emerging markets

But although there's plenty of potential to capture new audiences in emerging markets, Apple's
unlikely to succeed there due to sky-high price points that don't align with cost-conscious
consumers who make up the large majority of the population in these regions.

 Positioning strategies

Samsung put emphasis on the real margin that is generated especially from mid-end and high-end
customer segments.

 Promote products through Samsung concept stores.

 Devices have categorized in the market according to features, functions, and price.
 The care network of the company is wider.
 The company offers access to its care line to its valuable customers.
 It is the pioneer company who introduced 3G into smartphones, the company brings
innovative products with the latest technology.
 The major objective of the company is to brand itself as a synonym for quality so when it
comes to buying quality products customers choose Samsung. The firm has created worth
of its products by giving importance to quality.
 It has created an image of a unique brand and people know it as a high-end brand.

Future Strategy of Samsung

 Create their own software and reduce outsourcing

 Expand the memory chip division as it maintains the firm at an advantage
 Innovative product design along with value added features
 Lead rather than follow competitors
 Enter newly emerging markets like Bangladesh & Africa.

Future planning

Vision 2020 - As stated in its new motto, Samsung Electronics' vision for the new decade is,
"Inspire the World, Create the Future." This new vision reflects Samsung Electronics‘

25
commitment to inspiring its communities by leveraging Samsung's three key strengths: ―New
Technology, Innovative Products, and Creative Solutions. and to promoting new value for
Samsung's core networks -- Industry, Partners, and Employees. Through these efforts, Samsung
hopes to contribute to a better world and a richer experience for all. As part of this vision, Samsung
has mapped out a specific plan of reaching $400 billion in revenue and becoming one of the
world‘s top five brands by 2020. To this end, Samsung has also established three strategic
approaches in its management:

“Creativity, Partnership, and Talent. Samsung is excited about the future. As we build on
our previous accomplishments, we look forward to exploring new territories, including
health, medicine, and biotechnology. Samsung is committed to being a creative leader in new
markets and becoming a truly No. 1 business going forward”

26
Chapter 3

SWOT Analysis

A SWOT analysis is a structured planning method used to evaluate the strengths, weaknesses,
opportunities and threats. Following is the SWOT analysis of Samsung:

Strengths:

 Samsung is present in the market for a long time and has great brand recognition
 Samsung offers lot of models and options for every price range hence increasing sales e.g.
Samsung Galaxy series has phone in almost all price ranges.
 It is one of the largest manufacturers of TVs and mobile phones.
 The company is known to launch new innovative models every year and keep the market
moving
 Samsung not only sells its own finished products but also provides a lot of parts like LCD
panels, memory etc. to other manufacturers

27
  Strong international experience.
 Strong global business network
 Huge credibility of Brand Name
 Samsung products are sold worldwide hence making it a global company.

Weakness:

 Perception of High Prices

 Customers disinterest
 Substitute products or technologies
 Very less availability of 3D viewing content

Opportunities

 Adopting newer technologies to improve upon products.

 Increased demand for tablet and smartphone-based solutions
 Growing online market from sales channels such as Amazon.com
 Offering more models with stylish and individuality.

Threats

 Intense price competition in the mobile market

 Samsung has major competition with local brands which are going global like Oppo, Vivo
etc.
 The market is very dynamic and failed product can prove to be a big issue

Samsung success factors globally

Samsung management believes that the success of Samsung contributions to society and to the
mutual prosperity of people across national boundaries truly depends on how they manage their
company. Samsung goal is to create the future with its customers.

28
  Profit and innovation centers

One of the fastest growing profit and innovation centers of the global technology giant. Today,
Samsung is the world's second largest semiconductor company behind Intel Corp, with over a third
of the company’s $US56.7 billion global revenues (2005) generated by the semiconductor
business.

Samsung’s efforts to develop its human resources and attract the world’s smartest innovators,
inventors and designers are fundamental to our success in creating the next technology. Samsung
attracts and retains some of the brightest and smartest in the global technology industry, offering
opportunities for international growth, development through international work placements,
scholarships and postgraduate study opportunities.

 Technology

Samsung invested R&D in digital technology. It employs scientists and researchers in labs
worldwide. As a result, it makes the world’s biggest LCD display and plasma HDTV. In addition,
Samsung has cell phone innovations, model that uses voice recognition technology to convert
speech into text messages. Furthermore, it invented the model that automatically scans business
cards and inserts the details in the user’s address book

Samsung is also a leader in producing memory chips. It created the world’s first one-megabit chip
and the first chip that held 256 megabits. Thus, Samsung is now the world’s largest producer of
DRAM and SRAM chips. The chips and LCD divisions sell to other Samsung businesses and
outsiders for the same price, with no favoritism. This assures Apple, HP, and other clients that they
are treated fairly and knowledge of their buying patterns offer valuable intelligence to Samsung.
Samsung showed its advance in business market as Apple announced that the iPod Nano would
use flash chips rather than a hard-disk drive and Samsung intends to invest more on new chip
making facilities. Consequently, Samsung is the world’s largest producer of thin film LCD screens
and computer monitors according to its huge investment in technology.

 Product Innovation

Samsung's product range included CTVs, audio and video products, information technology
products, mobile phones and home appliances. Its product range covered all the categories in the

29
consumer electronics and home appliances. Analysts felt that the wide product range of Samsung
was one of main reasons for its success.

 Design

According to the article, Samsung CEO believes that the good design is the most important
way to differentiate itself from its competitors. Samsung has changed into good internal
management and staff and resource management. In order to be successful in that, Samsung
changed its hierarchical structure, encouraging younger designers to challenge their superiors
when they came up with ideas for new products. Samsung invested in designer staff by sending
them to work at furniture, fashion and industrial design houses to keep abreast of the latest trends
and by opening design centers in main cities over the world.

 Distribution

Along with the launch of new products, Samsung also consolidated its distribution system.
Samsung had 18 state-level distribution offices and a direct dealer interface. The direct dealer
interface helped the company get quick feedback from dealers, and enabled it to launch products
according to consumer needs.

Samsung is so much more than a smartphone-maker. It is a conglomerate, a manufacturer, and the

world's largest chip-maker. It makes many of the components that go into its smartphones giving
it a cost advantage and allowing it to be much more flexible in terms of what it produces and when.

Samsung promotion strategy

High end market

 First company to top $10 billion in revenues from the tv market alone
 Strong brand image
 Organizing contests like “Samsung mobile karaoke festival”
 Opening the samsung fun club for better customer relationships.
 Free online software updates
 Free tutorials and customer service
 Samsung became a local sponsor for the Seoul 1988 Olympic summer games

30
  Samsung is proud to carry on its Olympic partnership through the 2016 Olympic games
 Customer and market orientation
 Innovation , meeting challenges and creativity
 Samsung using direct and indirect method.
 Direct method

For example, Samsung advertise their product through television, internet, and other else.

 Indirect method

For example, Samsung let customer try their new product and let customer know that their new
product is good to use.

31
Chapter 4

Challenges and competitors

Challenges faced by samsung

 Rapid change in business environment

The business environment keeps on changing and is unpredictable. Proper knowledge of business
environment will make the Samsung able enough to plan and implement strategies that are needed
to identify the scope of improvement, create and exploit opportunities that come on the way, retain
stability, gain competitive advantage and prepare appropriately for the upcoming challenges.

 Protection of new technology

Samsung has a strong heritage of innovation, and we’re proud to be leading the way through an
open and collaborative approach. Our technologies are powered by Artificial Intelligence and
smart tech, and can bring greater convenience to people’s lives. Protection of technology is one of
the major challenges that Samsung is facing.

 Chinese companies aggressive entry in global market

The Chinese telecommunication sector’s growth rate was about 20% between 1997 and 2002.
China fixed-line and mobile operators have invested an average of US$ 25 billion on network
infrastructure in the last years, which will be more than all western European carriers combined.
As a result, with 1.3 billion citizens, China has the world’s largest fixed-line and mobile network
in terms of both network capacity and number of subscribers. Emergence and Growth of Chinese
players like OPPO and Vivo,Samsung which once considered India as a high potential market has
now started to lose its stronghold, all thanks to the entry of new Chinese players like OPPO and
Vivo. OPPO and Vivo due to their new technology mid-segment smartphones have managed to
take away a large portion of smartphone market share from Samsung.

32
  Companies imitate the smartphone designs

Cheaper phones that partially imitate the company’s smartphone designs are attractive among
price-sensitive customers.

 Legal restrictions and lawsuits

Legal restrictions and lawsuits are also external factors that threaten the company in terms of
possible limitation of business performance, especially in major mobile technology markets like
the United States and the European Union, where Apple and other competitors are actively
pursuing legal avenues.

 Increased demand

Due to increased competition, technical innovation and its presence in international market the
demand for Samsung is increasing day by day.

Competitor analysis

Samsung Group, belongs to South Korea, which is also the world’s second largest conglomerate
by revenue has different products such as: Semiconductors, Slimmer Panels, televisions, 3D
experience, Smart TV’s, Mobile phones, Home appliances etc. Since, Samsung is gradually
increasing its market by producing variety of products: it should compete in the market in such a
way that it stands at the top most position.

Nonetheless, here are the top Samsung competitors, some big and some small.

 Apple
 Oppo
 Huawei
 Vivo
 Lenovo
 Sony
 HTC

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 Google
 Nokia
 LG

34
Chapter 5

Marketing mix of Samsung

Price strategy

Because of its presence in different product categories, Samsung uses various pricing strategies.

 Skimming Price

Samsung uses skimming price policy. For instance, when Samsung launches new products with
different variants of storage capacity, it prices the product higher. But when other competitors
launch a smartphone with identical features, Samsung lowers the price and easily prevents the
reduction of its market share due to the launch of the competitor. In skimming pricing strategy the
products are priced higher so that fewer sales are needed to break even. Selling a product at a high
price, sacrificing high sales to gain a high profit is, therefore “skimming” the market. Skimming
price strategy is basically for the early adopters of the product.

 Samsung smartphones are best in class and strongly compete with the likes of Apple iPhone
in terms of market share, USP, and features.
 Their new entrant in the marketing is Galaxy S9 | S9+, Samsung uses skimming pricing
strategy for these flagship products which hold quite a strong customer affinity.

35
  Samsung tries to get high value at the start with the skimming strategy and then, later on,
drop the prices when the competitors try to enter the market.
 Samsung usually puts expensive price tags to its latest smartphones and other products with
advanced and innovative features and capabilities. As soon as competitors launch products
with identical features and capabilities, Samsung lowers the price and further increases its
market share. For example, “the Galaxy S8 and S8 Plus devices began seeing discounts of
over USD150 within two months of their launch”

 Competitive Pricing

Samsung is a trustworthy brand, but in the ‘home appliances’ product-category, it hasn’t surpassed
LG yet. To prevent the flanking attacks from its competitors in the market it’s essential for
Samsung to use competitive pricing. Also, Samsung is a not a first mover in these product
categories and thus it has to defend its position in the market. All these help in understanding the
pricing strategy in the Samsung marketing mix.

Samsung smartphone has various prices range in the market because of the wide range of products;
the company is focused on various pricing methods for the benefits and revenue in the market.
Thus, the company has the innovative products example S8 is offered with the competitive pricing
schemes. Based on other reasons company is also focused on the skimming price and the reduction
of its price.

 Apart from its flagship products, there are a number of smartphones and other products
that Samsung launches in the market every now and then.
 For these products, Samsung uses competitive pricing where it competes with other big
brands like LG, Voltas, Hitachi etc on the basis of Brand value, features and price.
 Samsung uses competitive pricing for different products and product categories where it
tries to compete with the competitors on the basis of the price of the product.
 Samsung is a global leader in the display market and smartphone product segments.
However, it does not have the same position in all segments the company operates. For
example, Samsung can’t possibly surpass LG for home appliances products. Likewise, in
cameras Cannon and Nikon are leading the market. Accordingly, Samsung applies

36
 competitive pricing for its home appliances products and cameras, claiming for a share in
these markets.

 Product line pricing

Samsung uses product line pricing to separate its products into cost categories in order to create
various quality levels in the minds of consumers. For example, as of September 2017, on Samsung
UK website, the smartphone Galaxy 8 costs GBP 689, while Galaxy S8+ costs GBP 779…

Product Strategy

The Samsung smartphone is in wide range, however, the company is serving over 600 million
customers worldwide, the Samsung is known as the largest manufacturer of Android because the
company is covering 36% of the market. The product portfolio of Samsung is quite rich and has
different products which cater to different target customers. However, Samsung smartphone is
available in different series, example, and series of Galaxy Note, series of Galaxy Y, series of
Galaxy S, series of Galaxy Tab and series of Galaxy Grand etc.

Samsung Electronics products are designed in 6 global design centres and manufactured in 53
global production bases. There are 34 R&D centres worldwide that engage in new product
development. The reason that Samsung smartphones is so good in the market is because Samsung
give customers guarantee product, high end technology, reasonable price and good service. As
illustrated below, Samsung products can be divided into three divisions and there are more than
one product categories under each division.

 Tablets
 Mobile phones, Smart phones, normal phones,
 Televisions, LEDs, LCDs, SMART TV etc.
 Cameras and Camcorders
 Refrigerators
 Air conditioners
 Washing machine
 Microwave ovens

37
  Laptops, printers and accessories

The benefit of Samsung in terms of its product is that there is a trust on all
Samsung products because of the way Samsung products have performed in the last few years.

Place

Samsung is present through various channels in the market. It works on the channel
marketing concept wherein there are three segments.

 Sales and service dealers

 Modern retail
 Distributors

Samsung smartphone is focused on the location and distribution schemes so that best places could
be selected by the company, there is focus on the concepts of channel marketing so that the product
can be available at every place in the market. There are also sales and service dealers of the
company that made the possible solutions for the customer or focus on the demand and
opportunities to expand in the market. Samsung smartphone is also available in in-store shares and
in the Samsung showrooms. The company also focuses on the modern retailers for the
extraordinary advantages of the market. The sales and service dealers handle key accounts for
Samsung and are involved in corporate sales. These dealers may also open exclusive Samsung
showrooms.

 Modern retail segments

The Modern retail segment includes large retailers like Croma, Hypercity, and any others who are
present in the modern electronic retail chain. Samsung being such a branded product, the retailers
are bound to keep Samsung as an alternative or as the primary product for their
customers.The distribution network is the most interesting in the case of Samsung. In several
cities, Samsung has a single distributor through whom they distribute throughout a territory.

38
  Retail giants

Just like other smartphone brands, marketing strategy of Samsung also follows channel marketing
as the distribution medium for its products. Samsung has tie-ups with large as well as small retail
giants like Chroma, Vijay Sales, Reliance digital, etc that handle the sales of Samsung.

 Sole distributors

Apart from these retail distributors, Samsung also has their own sole distributors where they only
sell Samsung products. Distributors. Samsung has regional, territory and country distributors.
Depending on the territory, size and experience of distributors, Samsung can grant distributorship
rights of a single product category or all Samsung products.

 E-commerce channels

E-commerce channels like Facebook and Amazon are also be utilized to their maximum potential
by Samsung to sell their products. Samsung has exclusive partnerships with these brands that allow
them to reach out to a large customer base in a cost-effective manner.

 Sales and service dealers

This sales channel is associated with corporate sales.

 Online sales

Customers can choose and order Samsung products through official website of the company.
amsung sell their product on their official website such as www.samsung.com. Customers are able
to make reservation and online booking of their product such as smartphones, television or other
products through the internet. This will help the customer to save time instead of directly walk into
the shop. On the other hand, instead of directly sell the products to the customer, offline channel
refers to the B2B model such as selling the products to retailers and sub dealer in the market.

39
Promotion

Promotion is a strong pillar in the marketing mix of the company. Samsung believes that
advertising the best form of promotion to engage potential consumers and position the brand.
Samsung promotes new products using newspapers and digital media. To take the advantage of
the huge number of followers of celebrities, the brand has invited many celebrities to be the brand
ambassadors and promote the product. Many posters are put up on highways. Besides advertising,
Samsung also uses different promotional tactics
to make customers buy the product. Samsung is
mostly famous for its product quality and user
experience but Samsung is also known for
being a giant in sponsoring events. Samsung
also sponsors major events. Samsung offers
heavy discounts during national festivals. This
concludes the Sam sung marketing mix
analysis.

40
  Promotional strategies

The promotional and advertising strategy in the Samsung marketing strategy is as follows:

 Samsung also uses different promotional tactics to make customers buy the product.
Samsung is mostly famous for its product quality and user experience
 Samsung is also known for being a giant in sponsoring events.
 Samsung also sponsors major events.
 Samsung offers heavy discounts during national festivals.
 Promotion refers to informing the upcoming product and promotion such as new product
or discounts to the market. It can be promote through online such as internet or offline such
as banner, newspaper and many more. Samsung is known as a very attractive.

 Offline and online channels

Samsung uses a combination of Online and Offline promotional channels to promote their
products. Samsung uses Product advertisements, social channels and paid digital promotion to
create awareness about their products among customers.And uses different types of offers and
schemes with trade partners to push their products through an offline channel.Samsung is also very
active in promotion such as launch a new product with million followers across the globe

In online, Samsung provide online promotion such as online advertisement. For example,
Samsung advertise its promotions and new product with online banner in every website. Moreover,
Samsung also use video advertisement in Youtube website such as advertise Samsung product
before the actual video is going to play.

41
In offline, Samsung provide offline promotion such as distributing flyers at the store in order to
promote the upcoming offers and discounts to the customers. Moreover, Samsung also set up booth
with some activities in the mall to attract customer.

People refers to service. People that serve the customers in

the frontline. Which means staff and employees in a
company. A good people in the company will lead a
business into success because they know what are the want
and need or problem of customer. Samsung trained its staff
and employee well especially the frontline position.
Samsung focus more in its staff and employee’s
interpersonal skills and customer service towards
customer’s satisfaction such as problem solving, stress
handling, customer complaints and many more. For example, Samsung provides excellence
training for all the new staff and employee such as stress handling, personal development, schemes,
strategies and many more.

Focus on digital marketing

0 People working in social-media for Samsung in 2009 expanded to +300 People working in 2012
for the social-media team (in-house or outsourced in agencies) and 30% Target for the 2013
marketing budget spent online.

42
Understanding the reduced role of traditional mass media and that its core TA, the 25- 45 years
early adopters & style conscious segments they have used the net for researching & shopping,
Samsung started focusing on the digital medium.

Advanced marketing & investment effectiveness

Marketing Moving away from gut based decisions, Samsung ensured that Investment decisions
were based on it ability to generate ROI Ensure overall corporate profitability rather than just
volume / country profitability Ensure adequate support for category which has potential but which
were small currently. Marketing Samsung, M-Net ensures an analytical approach to marketing
“M-Net”, an intranet based software which helps take marketing decisions based on data Data
includes per capita spending by country, category penetration, category growth, brand share of
competition, media clutter & cost, category profitability, competition metric etc

43
Chapter 6

Samsung positioning strategy

Positioning refers to the customer awareness about a brand and its uniqueness as compared to
others. Products can be positioned on the basis of product attributes and features. The company
has adopted different strategies for positioning itself in the smartphone market and some of these
strategies are subsequent

Samsung uses the following types of positioning:

 Multi-segment positioning

Samsung targets more than one segments at the same time through offering several packages of
products and services. For example, there are several variations of Samsung SMART Signage
professional displays with different sizes, screen resolutions and functionalities and ultimately
with different price tags. Thus, Samsung appeals to the needs and wants of consumers with varying
financial capabilities.

 Imitative positioning

Samsung is known to imitative its main competitor Apple in product in design, functionalities, as
well, as marketing strategy.

 Anticipatory positioning

Certain Samsung products such as mobile image sensors currently have low turnover. However,
these products have been developed with the anticipation that the turnover will increase in the
future.

The company has adopted different strategies for positioning itself in the smartphone market and
some of these strategies are subsequent.

44
  General strategies for positioning

Samsung put emphasis on the real margin that is generated especially from mid-end and high-end
customer segments.

 Promote products through Samsung concept stores.

 Devices have categorized in the market according to features, functions, and price.
 The care network of the company is wider.
 The company offers access to its care line to its valuable customers.
 It is the pioneer company who introduced 3G into smartphones, the company brings
innovative products with the latest technology.
 The major objective of the company is to brand itself as a synonym for quality so when it
comes to buying quality products customers choose Samsung. The firm has created worth
of its products by giving importance to quality.
 It has created an image of a unique brand and people know it as a high-end brand.

Strategic sponsorships

All sponsorships investments had to deliver on 2 specific business goals:

 Strengthen & leverage channel relationships

 Contribute to sales by connecting sponsorship event with sales programs

45
46
Conclusion
Samsung embodies style and technology for the young professional, with its cutting edge design
and superior connectivity features. Samsung's positioning statement is one that asserts its
differentiation from other mobile phone providers. In the local market where myriad choices
abound, Samsung's sleek exterior design, accompanied by its selection of soft and hard features,
render it an optimal purchase for the young, technologically updated professional.

Thereby the current positioning of Samsung Mobile is to be a market leader in whole mobile and
smartphone market. Samsung came up with new ideas to be more customer-focused and creative
in order to establish a strong brand image in the global market. Their main focus is to make
handsets with the most amazing and unique designs in order to meet their customers expectation.
Samsung retained its number one position in the worldwide smartphone market with a 22.8% share
in 2016. 2018 was indicative of the entire industry, with both Apple and Samsung seeing
shipments fall 7% and 5% respectively.

47
Recommendations
 Proactive strategies
 Focus on the Chinese emerging market
 Step ahead of competitors in terms of unique designs and innovations
 Focus less on variety more on quality.

48
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