Developing Marketing Strategies and Plans

1. Developing Marketing Strategies and Plans Samsung: Building a Global Brand

2. Group 3 - Members My Eli - Ocha - - M987Z247 M987Z254M987Z212 Loan – Joice - M987Z234 M987Z224

3. Samsung Electronics Samsung 12-inch TVs Memory chip Flat-screen display Plasma TVs Multifunction cellphone Other digital devices

4. BACKGROUND Positioning until the mid-1990s: • Low-cost manufactured products for better-known brands. • Selling consumer products (electronics) at very low price.

5. SHOCKS IN COMPETITION After 1996, several shocks in Samsung’scompetitive environments: • The global memory chip market went into tailspin due to slackening demand and excess capacity. • Asian financial crisis in 1997.

6. SHOCKS IN COMPETITION • Samsung: GOOD TECHNICAL QUALITY but LOW-COSTLOW-MARKET IMAGE SAT AT BACK OF THE STORE

7. Objectives “Redefining Samsung’s Brand Image” • Stylish, high quality brand commanding a premium price • Establish a unique competitive position by developing technique and design

8. Strategies • Technical Innovation and R & D • New Product Development and Design • Encouraging Marketing Programs

9. Technical Innovation • Focusing on digital technologies • Shifting substantial resources into technical research and development: • Spent about 9% of revenue (US$ 5 billion) on R & D in 2005 • Employs nearly 27,000 researchers (including 2,400 PhDs) to work in 17 research centers around the world.

10. New Product Development and Design • To make the customers consider that Samsung’s products is worth of price • To collaborate closely with the firm’s engineers, manufacturing division, marketers, and market researchers.

11. New Product Development and Design • Assigning 450 designers in 6 design centers in the world to ascertain customers tastes and preferences.

12. Marketing Program • To build customer awareness of the products: • Ensuring the availability, service after sale, and communicating Samsung essential value and attributes around the world, to make sure the consumers are worth the money.

13. Marketing Program • Reorganize the firm’s distribution channels, particularly in developed market. • Pulling the products out of the low-price discount chains and distributing them trough quality-oriented electronic stores

14. Marketing Program • Consolidated the firm’s advertising to a single global advertising group. • Launching new design product. • Extensive use of contemporary promotional tools: • Eg. sponsorship Olympic games, Internet, and movie advertising

15. SPONSORSHIP OLYMPIC GAMES

16. Result • Global value of Samsung’s brand increased more than 200% from 2000 – 2005. • Sales grew to more than US$56 billion in the fiscal year ending in Dec 2005 • Operating income hit a record US$ 8billion

17. Summary • Samsung has successfully redefined its image as one of leading electronics companies all over the world. • To develop an organization, the well marketing plans is one of the keys to be successful.

18. Summary • With the new marketing strategy, Samsung impressed customers of the high-brand image. • Slogan “design awakens all your sense” has been familiar worldwide.

19. References • Kotler, et al. (2006), Marketing Management, Pearson, 12th Edition • Etzel, et al. (2004), Marketing, McGraw Hill, 13th Edition