Samsung Case

Samsung Electronics Company: Global Marketing Operations
Samsung History up to 1999

Is a Korean firm born in 1938 as a company that
agricultural products. In 1969 Samsung Electronics Company was found. In 1970 it entered into semiconductor business. In 1980 Samsung Formed Television Division
Samsung History after 1999

Mr. Eric Kim Become the executive Vice President of global
marketing. In 1999 Global Marketing Operation (GMO) headquarter in Seoul , Korea was built. Between 1998 to 2003 about 36 billion dollar invested for new chip factory and TFT-LCD. In 2005 Samsung became the worldwide investor in semiconductor business. In 2006 formed a JV with Sony for LCD panel
Financials Achievements
In 1997 Samsung debt was $15 billion but they have
managed it to reduce to $4.2 billion in 2002. In 1999 Samsungs net profit $2.8 billion on Total sales $28 billion while in 2002 net profit $5.9 billion over total sales $44.6 billion. In 2002 Market capitalisation was around $41 billion while in 2012 same has crossed $200 billion mark.
Corporate Turnaround Strategy

To become a world known brand over their rivals Sony &
Apple.
Investing in R&D Started 12 manufacturing units in
China, R&D Center in India. Main Emphasize on Core manufacturing Unlike Sony & Apple whose proprietary business was Software, music, movies Samsung focused on hardware Innovation of new age digital technology
Corporate Turnaround Strategy

New customized product every year, product
diversification well differentiated over its competitors.

Market Driven Change-New initiatives for focus on
customer insight in development of new product rather than copying competitors products
Strategy
Digital Vision: A Company that leads the digital convergence revolution Brand power. High-margin products Create value chain that integrates competencies of all areas Customer and market oriented Global network by function Performance evaluation and compensation system
Marketing Implication
Change in internal perception about marketing
Division of three strategy teams: marketing, regional
and product MDC: New initiative to develop new products closer to customer. Increase effort for advertising campaign with slogan of DigitAll everyone is invited Strong sponsorship activities(ie olympic games, football teams and the matrix reloaded)
CMOs Role
In 1999 established Global Marketing Operations [GMO]
responsible for developing corporate marketing program for International Markets under leadership of Mr. Kim. They have three major teams in GMO 1.Marketing Strategy Team 2.Regional Strategy Team 3.Product Strategy Team
CMOs Role
Earlier Samsungs marketing budgets are associated
with their sales figure but Mr. Kim introduced M-Net. M-Net program is systematic approach for allocation marketing budgets to get higher investment returns. In 2002 Mr. Kim launched DigitAll Campaign which has resulted tremendous Brand Visibility globally. Under Mr. Kims leadership they have entered in new markets.
Product Breadth
Samsung differentiates from its competitor by providing different product categories.
Semiconductors : DRAM, SDRAM, flash memory, and hard
drives Digital displays : LCD displays, Plasma displays, and OLED displays Home Electronics : TVs, DVD players, Blu-ray players, home cinema systems, set-top boxes, and projectors
Product
Mobile devices : mobile phones, MP3 players, digital
cameras, and camcorders
Computing products : monitors, laptops, UMPCs, CD and

DVD drives, laser printers, and faxes machine; and
Home appliances : refrigerators, washing machines,

microwaves, ovens, vacuum cleaners, and air conditioners.
Swot Analysis
Strength
Ability to refresh product line Strong position in emerging markets Hardware and mobile brand Digital Convergence Huge R&D Investment Product Breadth
Threats
Obsolete Product Risk of cannibalization Patent loosening
Weakness
Weak customer perception in western world Lack of deep customer segment No Software and content oriented Excessive vertical integration
Opportunity
Outsourcing of non core activities Reallocation of marketing budget
Competitors
Since Samsung was a pioneer in manufacturing TV
displays, in both LCD display and big-screen Tvs category the company is market leader Samsung was the first mover in the LCD research field and it introduced 52 inch flat screen.
Samsung market Position by category
Threat of entry and substitutes

Barriers to entry in the digital industry are high since
enormous initial investments are required particularly in R&D. Analog technology is a substitute, ie much lower cost however now a days this has become obsolete.
Brand Positioning
Samsung has changed from a cheap OEM to a high value
added product provider. With this new market strategy, Samsung started to benefit with higher margins and exploiting its brand name.
Brand Positioning
Country
US RUSSIA CHINA
Brand Positioning
Turning point stage Peoples Brand Advanced stage
INDIA
SOUTHERN EUROPE NOTHERN EUROPE
Very Strong
Strong Weak
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Samsung Electronics Company: Global Marketing Operations

Samsung History up to 1999

Samsung History after 1999

Corporate Turnaround Strategy

Corporate Turnaround Strategy

diversification well differentiated over its competitors.

Computing products : monitors, laptops, UMPCs, CD and

Home appliances : refrigerators, washing machines,

Samsung market Position by category

Threat of entry and substitutes

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