MARKETING MANAGEMENT CASE 1 GROUP 06

History
4 Ps in marketing

SWOT analysis

Conclusion
Suggestions

Samsung Electronics was founded in 1969 in Suwon, South Korea as Samsung Electric Industries originally manufacturing electronic appliances such as TVs, calculators, refrigerators, air conditioners and washers.

Today, Samsung brand is the best known South Korean brand in the world and in 2008. Business week rated Samsung as 21st on the Top 100 Best Global Brands 2008. Samsung overtook Japanese rival Sony as the world's leading consumer electronics brand.

history

PRODUCT

Price
4Ps IN MARKETING

PROMOTION

Place

Product

In 1970, Samsung Electronics made cheap 12-inch television sets under Sanyo label.

Now, capturing the number one position in the global memory chip market and pioneering the development of flat-screen displays, plasma TVs, multifunction cellphones, and other digital devices.

Product
Semiconductors

: DRAM, SDRAM, flash memory, and hard

drives
Digital

displays : LCD displays, Plasma displays, and OLED Electronics : TVs, DVD players, Blu-ray players, home devices : mobile phones, MP3 players, digital cameras, products : monitors, laptops, UMPCs, CD and DVD

displays
Home

cinema systems, set-top boxes, and projectors

Mobile

and camcorders
Computing Home

drives, laser printers, and faxes machine; and

appliances : refrigerators, washing machines,

microwaves, ovens, vacuum cleaners, and air conditioners.

design awakeness all your senses.

Samsung invested a lot of money in research and development, in order to meet what customers needs and wants. Samsung spent about 9% of revenue, amounting to around $5billion, in 2005 in research and development.

product

United States Top 5 Innovators 2008

Rank # of Records Company Country of Origins

1 2 3 4 5

7404 6576 2931 2421 2019

SAMSUNG ELECTRONICS IBM MICROSOFT TOSHIBA CANON

KOREA UNITED STATES UNITED STATES JAPAN JAPAN

Europe Top 5 Innovators 2008

Rank # of Records
1 2753

Company
SIEMENS

Country of Origins
GERMANY

2
3 4 5

2619
1475 1250 905

BOSCH
SAMSUNG ELECTRONICS DAIMLER RENAULT

GERMANY
KOREA GERMANY FRANCE

These rankings comes from IP Solutions, part of Thomson Reuters : The worlds leading source of intelligent information for businesses and professionals.

Samsung sells product with price that worthed, if we compared it with the functions, benefits and technology. Samsung is in the process of building an image as a stylish, high quality brand commanding a premium price

Samsung has its own stores which can be found around the world. Not only in Asia, but also in America, Europe, Australia, and Africa. At the stores, we not only can buy the product that sold, but also feel the experience of digital lifestyle.

PLACE

One of Samsungs store in America

PLACE
Samsung

also has other distribution channels: Best Buy and Circuit City, who known as quality-oriented electronics speciality stores. Bell Microproducts, who known as one of the world's largest storage-centric value-added distributors.

Internet advertising

Product placements

Sponsorships

Hotel

chains (such as Hilton), where most in-room technology was now dated and required early replacement to retain competitive advantage.

The

Summer and Winter olympics games Chelsea FC shirt sponsorship deal Horse jumping (Samsung Superleague).

In

2005 ,the firm devoted nearly 15 % of its media budget allocated to page topping banner ads on over 400 Internet sites Link to mainstream entertainment : Foxs movies Fantastic Four Display in the film

 Existing

knowledge and experience of electronics market Strong global presence with strong brand and customer base, in 2009 according to Interbrand Global value of Samsungs brand is US$ 17,518 million compare its competitor, Sony, which is US$ 11,953 million.

2009 Rank

2008 Rank

Brand

Country of Origin

Sector

Brand Value

Value

Value

 Well

diversified and differentiated product line, to meet changing customer needs. Samsung electronics has 4 business areas to cover customer electronic needs. Design with an attractive styling that catching the pulse of customer, as the result of the development of Samsungs new products that involve team of product designers.

 Market

share: Global market share of mobile phone increase from 18% in 2004 to 19.1% in 2009. Memory chip Industry is 27% in 2009 compare with 21% at the end of 2008. It is the biggest manufacturer of liquidcrystal display panels with 23% share in 2005, increase to 26.2% in Q1 of 2009.

2009 Figures

 Loyal

customer & customer satisfaction: Samsung Electronics reports that its Anycall mobile phone topped the American Customer Satisfaction Index (ACSI) (2005) Cost Competitiveness by mass Production Samsung Electronics expanded production dramatically to become the world's largest manufacturer of DRAM chips, flash memory, optical storage drives

Technology

With an excellent research and development capabilities, they spend a high percentage of revenue on R&D. It resulted in global leadership in the television segment, and in improving its position from the third to second player in mobile phones with their innovative products.

 Customer

perception of weak product attributes like Durability perception on worth the price product on each person that difficult to cover. pro-active coming out with unique and leading model on mass market instead of niche market

Different

Not

Focus

Huge investment on Research & Development

2007 (Mill won) 2006 (Mill won)

Sales
Research expenses Ordinary development expenses Total R&D R&D/Sales

98,507,817
2,353,844 3, 720, 115 6,073, 959 6.17 %

85,834,604
2,252,848 3,461, 914 5,714,762 6.66%

Consolidated Financial Statement years ended Dec 31, 2007 and 2006 (audited report) 1 US$ = 938 Won

Increasing on electronics consumer market Strong customer demand for innovative products & value-added features High % of Younger population, which can be expand a new market now and in the future

Population by Age and Sex, More Developed Countries: 2009

 Increasing

competition

DRAM (Q1-2009)

Rank 1
2 3 4

Company Samsung
Hynix Micron Technology Elpida Memory

Market Share 34.3%

21.6% 14.6% 14.2%

Qimonda

4.8%

 Increasing

competition
Market Share 20.2% 13.8% 10.2% 9.3 % 7%

LCD TV (Q3-2008)

Rank 1 2 3 4 5

Company Samsung Sony Sharp Corporation LG Phillips

 Increasing

competition

Mobile phone (Q1-2009)

Rank 1 2
3 4 5

Company Nokia Samsung

LG Motorola Phillips

Market Share 36.2% 19.1%

9.9 % 6.2 % 5.4 %

 Decreasing

Operating profit margins

2007 (Thousand US$) 2006 (Thousand US$) 91,508,107 64,025,507

Sales Cost of Sales

105,018,995 75,566,005

Gross Profit
Selling, General and Adm exp Operating Profit Gross Profit Margin Operating Profit Margin

29,452,990
19,886,587 9,566,403 28.05 % 9.1%

27,482,600
17,750,164 9,732,436 30.03 % 10.6 %

Consolidated Financial Statement years ended Dec 31, 2007 and 2006 (audited report) 1 US$ = 938 Won

Economic

Slowdown, makes demand for electronics product weaken.

The conclusions drawn from the SWOT analysis were that Samsungs strengths carry more weight than its weaknesses. If Samsung can properly exploited opportunities that exist, it will navigate the threats with no significant difficulties.

suggestions

Become leader of environmental initiatives to provide more environmental friendly electronic products Enhance their advertisement campaign to create greater brand awareness As a Corporate Social Responsibility Samsung needs to enhance their brand image by indulging in more social causes because a good corporate not only takes from people but also returns to them

suggestions

suggestions

Improve After Sales Service because satisfaction helps in retaining customers Make their R&D more efficient

Octawati Buntaran M987Z249

Phailin Thampramuan M987Z216

Nguyen Pham Nhut Thien M987Z240

Yanni Putri M987Z255

Nong Hong Sa M987Z231

Rahul Kohli M987Z207