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MARKETING MANAGEMENT CASE – 1 GROUP 06

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Presentation on theme: "MARKETING MANAGEMENT CASE – 1 GROUP 06"— Presentation transcript:

1 MARKETING MANAGEMENT CASE – 1 GROUP 06
SAMSUNG ELECTRONICS MARKETING MANAGEMENT CASE – 1 GROUP 06

2 Contents Conclusion History SWOT analysis Suggestions
4 P’s in marketing SWOT analysis Conclusion Suggestions

3 HISTORY OF SAMSUNG 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.

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

5 PRODUCT Price 4P’s IN MARKETING Place PROMOTION

6 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

7 Product 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 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.

8 “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. “design awakeness all your senses”. product

9 SAMSUNG ELECTRONICS United States Top 5 Innovators 2008 Rank
# of Records Company Country of Origins 1 7404 SAMSUNG ELECTRONICS KOREA 2 6576 IBM UNITED STATES 3 2931 MICROSOFT 4 2421 TOSHIBA JAPAN 5 2019 CANON

10 SAMSUNG ELECTRONICS Europe Top 5 Innovators 2008 Rank # of Records
Company Country of Origins 1 2753 SIEMENS GERMANY 2 2619 BOSCH 3 1475 SAMSUNG ELECTRONICS KOREA 4 1250 DAIMLER 5 905 RENAULT FRANCE These rankings comes from IP Solutions, part of Thomson Reuters : The world’s leading source of intelligent information for businesses and professionals.

11 PRICE 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”

12 Samsung has its own stores which can be found around the world
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 Samsung’s store in America

13 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.

14 Internet advertising Promotion Product placements Sponsorships

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

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

17 Internet advertising 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 : Fox’s movies Fantastic Four Display in the film

18

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

20 Rank Rank Value Value Value
Brand Country of Origin Sector Brand Rank Rank Value Value Value

21 Strengths (cont’d) 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 Samsung‘s new products that involve team of product designers.

22 Strengths (cont’d) Market share: Global market share of mobile phone increase from 18% in 2004 to 19.1% in Memory chip Industry is 27% in compare with 21% at the end of 2008. It is the biggest manufacturer of liquid- crystal display panels with 23% share in 2005, increase to 26.2% in Q1 of 2009. 2009 Figures

23 Strengths (cont’d) 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

24 Strengths (cont’d) 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.

25 weakness Customer perception of weak product attributes like Durability Different perception on “worth the price” product on each person that difficult to cover. Not pro-active coming out with unique and leading model Focus on mass market instead of niche market

26 weakness (cont’d) Huge investment on Research & Development
Consolidated Financial Statement years ended Dec 31, 2007 and (audited report) 1 US$ = 938 Won 2007 (Mill won) 2006 (Mill won) Sales 98,507,817 85,834,604 Research expenses 2,353,844 2,252,848 Ordinary development expenses 3, 720, 115 3,461, 914 Total R&D 6,073, 959 5,714,762 R&D/Sales 6.17 % 6.66%

27 Opportunities 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

28 Increasing competition
Threats Increasing competition DRAM (Q1-2009) Rank Company Market Share 1 Samsung 34.3% 2 Hynix 21.6% 3 Micron Technology 14.6% 4 Elpida Memory 14.2% 5 Qimonda 4.8%

29 Increasing competition
Threats (Cont’d) Increasing competition LCD TV (Q3-2008) Rank Company Market Share 1 Samsung 20.2% 2 Sony 13.8% 3 Sharp Corporation 10.2% 4 LG 9.3 % 5 Phillips 7 %

30 Increasing competition
Threats (cont’d) Increasing competition Mobile phone (Q1-2009) Rank Company Market Share 1 Nokia 36.2% 2 Samsung 19.1% 3 LG 9.9 % 4 Motorola 6.2 % 5 Phillips 5.4 %

31 Decreasing Operating profit margins
Threats (cont’d) Decreasing Operating profit margins Consolidated Financial Statement years ended Dec 31, 2007 and 2006 (audited report) 1 US$ = 938 Won 2007 (Thousand US$) 2006 (Thousand US$) Sales 105,018,995 91,508,107 Cost of Sales 75,566,005 64,025,507 Gross Profit 29,452,990 27,482,600 Selling, General and Adm exp 19,886,587 17,750,164 Operating Profit 9,566,403 9,732,436 Gross Profit Margin 28.05 % 30.03 % Operating Profit Margin 9.1% 10.6 %

32 Economic Slowdown, makes demand for electronics product weaken.
Threats (cont’d) Economic Slowdown, makes demand for electronics product weaken.

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

34 Enhance their advertisement campaign to create greater brand awareness
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 Improve After Sales Service because satisfaction helps in retaining customers Make their R&D more efficient

35 Discussion Question

36 Thank you Rahul Kohli M987Z207 Yanni Putri M987Z255 Nong Hong Sa
Octawati Buntaran M987Z249 Phailin Thampramuan M987Z216 Nguyen Pham Nhut Thien M987Z240 Thank you Rahul Kohli M987Z207 Yanni Putri M987Z255 Nong Hong Sa M987Z231


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