Presentation on theme: "MARKETING MANAGEMENT CASE – 1 GROUP 06"— Presentation transcript:
1 MARKETING MANAGEMENT CASE – 1 GROUP 06 SAMSUNG ELECTRONICSMARKETING MANAGEMENTCASE – 1GROUP 06
2 Contents Conclusion History SWOT analysis Suggestions 4 P’s in marketingSWOT analysisConclusionSuggestions
3 HISTORY OF SAMSUNGSamsung 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 ELECTRONICSToday, 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
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 displaysHome Electronics : TVs, DVD players, Blu-ray players, home cinema systems, set-top boxes, and projectorsMobile devices : mobile phones, MP3 players, digital cameras, and camcordersComputing products : monitors, laptops, UMPCs, CD and DVD drives, laser printers, and faxes machine; andHome 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 RecordsCompanyCountry of Origins17404SAMSUNG ELECTRONICSKOREA26576IBMUNITED STATES32931MICROSOFT42421TOSHIBAJAPAN52019CANON
10 SAMSUNG ELECTRONICS Europe Top 5 Innovators 2008 Rank # of Records CompanyCountry of Origins12753SIEMENSGERMANY22619BOSCH31475SAMSUNG ELECTRONICSKOREA41250DAIMLER5905RENAULTFRANCEThese rankings comes from IP Solutions, part of Thomson Reuters : The world’s leading source of intelligent information for businesses and professionals.
11 PRICESamsung 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.PLACEOne of Samsung’s store in America
13 PLACESamsung 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 advertisingPromotionProduct placementsSponsorships
15 Product placementsHotel 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 dealHorse jumping (Samsung Superleague).
17 Internet advertisingIn 2005 ,the firm devoted nearly 15 % of its media budget allocated to page - topping banner ads on over 400 Internet sitesLink to mainstream entertainment : Fox’s movies Fantastic FourDisplay in the film
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 BrandRank 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 ProductionSamsung 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 weaknessCustomer perception of weak product attributes like DurabilityDifferent perception on “worth the price” product on each person that difficult to cover.Not pro-active coming out with unique and leading modelFocus 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 Won2007 (Mill won)2006 (Mill won)Sales98,507,81785,834,604Research expenses2,353,8442,252,848Ordinary development expenses3, 720, 1153,461, 914Total R&D6,073, 9595,714,762R&D/Sales6.17 %6.66%
27 Opportunities Increasing on electronics consumer market Strong customer demand for innovative products & value-added featuresHigh % of Younger population, which can be expand a new market now and in the futurePopulation by Age and Sex, More Developed Countries: 2009
31 Decreasing Operating profit margins Threats (cont’d)Decreasing Operating profit marginsConsolidated Financial Statement years ended Dec 31, 2007 and 2006 (audited report)1 US$ = 938 Won2007 (Thousand US$)2006 (Thousand US$)Sales105,018,99591,508,107Cost of Sales75,566,00564,025,507Gross Profit29,452,99027,482,600Selling, General and Adm exp19,886,58717,750,164Operating Profit9,566,4039,732,436Gross Profit Margin28.05 %30.03 %Operating Profit Margin9.1%10.6 %
32 Economic Slowdown, makes demand for electronics product weaken. Threats (cont’d)Economic Slowdown, makes demand for electronics product weaken.
33 ConclusionThe 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 suggestionsBecome leader of environmental initiatives to provide more environmental friendly electronic productsEnhance their advertisement campaign to create greater brand awarenessAs 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 themImprove After Sales Service because satisfaction helps in retaining customersMake their R&D more efficient