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MARKETING MANAGEMENT CASE – 1 GROUP 06. 4 Ps in marketing SWOT analysis Conclusion Suggestions History.

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Presentation on theme: "MARKETING MANAGEMENT CASE – 1 GROUP 06. 4 Ps in marketing SWOT analysis Conclusion Suggestions History."— Presentation transcript:


2 4 Ps in marketing SWOT analysis Conclusion Suggestions History

3 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 Today, Samsung brand is the best known South Korean brand in the world and in Business week rated Samsung as 21 st 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 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. Product

8 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 design awakeness all your senses.

9 United States Top 5 Innovators 2008 Rank# of RecordsCompanyCountry of Origins 17404SAMSUNG ELECTRONICSKOREA 26576IBMUNITED STATES 32931MICROSOFTUNITED STATES 42421TOSHIBAJAPAN 52019CANONJAPAN

10 Europe Top 5 Innovators 2008 Rank# of RecordsCompanyCountry of Origins 12753SIEMENSGERMANY 22619BOSCHGERMANY 31475SAMSUNG ELECTRONICSKOREA 41250DAIMLERGERMANY 5905RENAULTFRANCE These rankings comes from IP Solutions, part of Thomson Reuters : The worlds leading source of intelligent information for businesses and professionals.

11 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 asa stylish, high quality brand commanding a premium price

12 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

13 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. PLACE

14 Product placements Internet advertising Sponsorships

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

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

17 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


19 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.

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

21 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.

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

23 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 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 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 Huge investment on Research & Development Consolidated Financial Statement years ended Dec 31, 2007 and 2006 (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/Sales6.17 %6.66%

27 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 DRAM (Q1-2009) RankCompanyMarket Share 1Samsung34.3% 2Hynix21.6% 3Micron Technology14.6% 4Elpida Memory14.2% 5Qimonda4.8%

29 Increasing competition LCD TV (Q3-2008) RankCompanyMarket Share 1Samsung20.2% 2Sony13.8% 3Sharp Corporation10.2% 4LG9.3 % 5Phillips7 %

30 Increasing competition Mobile phone (Q1-2009) RankCompanyMarket Share 1Nokia36.2% 2Samsung19.1% 3LG9.9 % 4Motorola6.2 % 5Phillips5.4 %

31 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 Margin28.05 %30.03 % Operating Profit Margin9.1%10.6 %

32 Economic Slowdown, makes demand for electronics product weaken.

33 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.

34 Become leader of environmental initiatives to provide more environmental friendly electronic products Enhance their advertisement campaign to create greater brand awareness suggestions 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 Improve After Sales Service because satisfaction helps in retaining customers Make their R&D more efficient suggestions


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

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