Marketing : Samsung Case Study

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Grenoble Ecole de Management, 1ère année, parcours English Track.

Grenoble Ecole de Management, 1ère année, parcours English Track.

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  • 1. SAMSUNG PRINCIPLES OF MARKETING Léo Hauchecorne Rosalie Phan Alfonso Osborne Guillaume Deysine Sabrina Benzohra Groupe 6
  • 2. INTRODUCTION Products: apparel, consumers electronics, medical equipment, telecommunications… Headquarters: Seoul, South Korea Employees: 369,000 (2012) The name Samsung literally means “three stars” or “tristar” in Korean, reflecting the Samsung Group’s dominance. Let’s see Samsung’s Strategy and Advantage in the market. 2012 Annual Revenue: $247,5 trillion 2012 Net Income: $18,3 trilion 2
  • 3. PLAN 1. Samsung’s History 2. Mission statement 3. Strategic Business Unit 4. Competitors and level of competition 5. Competitors’ analyse 6. Competitive advantages and positioning strategy 7. S.W.O.T Matrix 8. Development strategies 9. Samsung Molecular Model 10. Product hierarchy 11. Product Mix Table 12. Marketing Mix decisions 3
  • 4. 1. HISTORICAL INFORMATIONS  03/01/1938: Samsung’s early stages  1994: Birth of the Samsung’s “global power”  1970’s: Industrial and electronic diversification  1997: Beyond the digital technology’s border  1970’s end – 1980: Samsung’s entry in the global market  2000 – today: Digital era cutting-edge  Beginning of 1990: A competitive company in a changing technological world 4
  • 5. II. MISSION STATEMENT Focus on a limited number of goals  Strong desire of growth and constant innovation  Creating, providing, and maintaining high- quality products  Providing a new, innovative, and “potential revealing” experience to customers 5
  • 6. II. MISSION STATEMENT Major policies and values company wants to honor 6
  • 7. II. MISSION STATEMENT Major competitive spheres Industry scope  Electronic and high technology industry  Building industry and civil engineering industry Education, Health, Hospitality  Products and application scope  Especially mobile phones market  Electronic products market  Semi-conductors market Market segment scope  Young people (18-30)  Professionals  “new geek” people 7
  • 8. II. MISSION STATEMENT Vertical scope  Conception  Retailers (mobile operators or electronic & household equipment shops)  Its own stores 8
  • 9. II. MISSION STATEMENT Core Competences  Significant skills and key knowledge that represent a source of competitive advantage - Technical (conception + technical assistance) - Innovation - Creation (products + innovative solutions) - In operating - Commercial 9 - In R&D (1/4 of the employees
  • 10. II. MISSION STATEMENT  Application in a wide variety of markets  Difficult for competitors to imitate  Mobile phone operator  High-differentiated products  Electronic products (televisions, DVD lectors, phones, music speakers…)  A 7-year know-how  Oligopoly position  High-technology products (tablets, computers…) 10
  • 11. II. MISSION STATEMENT Geographic  Almost all over in the world A long-term view  Slogan: “Inspire the World, Create the Future”  Always creating & innovating to suit to the environment  Both modern / high tech and suitable products Short, memorable, distinctive brand  1 name, easily pronounceable in every languages  Repetition of the “S” sound + simple logo  Specific/original design (“outside” and “inside” the products) 11
  • 12. III. STRATEGIC BUSINESS UNIT => SAMSUNG GROUP COMPOSITION Samsung group Electronics Trade and services Financial Service Machinery and chemicals 12
  • 13. Samsung Electronics III. STRATEGIC BUSINESS UNIT => SAMSUNG ELECTRONICS BUSINESS AREAS Consumers Electronics IT & Mobile Communication Device Solutions 13
  • 14. III. STRATEGIC BUSINESS UNIT => SAMSUNG STRATEGIC BUSINESS UNIT Printers TVs Health and medical equipments Digital business appliance 14
  • 15. III. STRATEGIC BUSINESS UNIT => SAMSUNG STRATEGIC BUSINESS UNIT Mobile Phone Smartphone Cameras Enterprise solutions Tablets Gear 15
  • 16. IV. COMPETITORS AND LEVEL OF COMPETITION TVs Smartphones Entertainment devices Communication devices TV Phones 3D TV / HD TV Smartphones Samsung Smart TV HD 3D Samsung Galaxy S4 16
  • 17. IV. COMPETITORS AND LEVEL OF COMPETITION TVs Competitors Smartphones Competitors Entertainment devices Computer, phones, tablets… Communication devices Tablets, Fablets, Computer, Skype… TV Thomson, Haier, TCL, Grundig… Phones Alcatel, Doro… 3D TV / HD TV Toshiba, Philips, Sharp, Blaupunkt Smartphones Nokia, Blackberry, Apple, Sony, Huawei, Wiko Samsung Smart TV HD 3D LG 55LA660S TV 3D/HD Samsung Galaxy S4 Apple iPhone 5S 17
  • 18. Mc Kinsey Matrix High Business Unit Strenght Medium Market Attractivness High Low TV Phones Medium Computers Appliance Low 18
  • 21. VI. COMPETITIVE ADVANTAGES AND POSITIONING STRATEGY => COMPETITIVE ADVANTAGES OF SAMSUNG Affordable cutting-edge technology Strong commitment to research and development Competitive advantages The support you need – when and where you need Quickness 21
  • 22. VI. COMPETITIVE ADVANTAGES AND POSITIONING STRATEGY Design Quality Affordable “It is our Quality Policy that we deliver on the basis of an effective quality system the best products and services that exceed our customers requirements and expectations.” Reliability 22
  • 23. VI. COMPETITIVE ADVANTAGES AND POSITIONING STRATEGY POD vs POP Iphone 5S vs Samsung Galaxy S4 23 Samsung Apple
  • 24. VI. COMPETITIVE ADVANTAGES AND POSITIONING STRATEGY POD vs POP Samsung Smart TV vs Philips Ultra HD Primé Samsung Philips 24
  • 25. VII. S.W.O.T MATRIX Strenghts Weaknesses Opportunities Threats 25
  • 26. Strengths Weaknesses 1. Hardware integration with 1. Patent infringement many open source OS and 2. Too low profit margin software (is the largest technology company 2.Excellence in engineering and in the world in terms of revenues. producing hardware parts and BUT this low prof. marg. is due to its consumer electronics semiconductors sales and 3. Innovation and design aggressive price cuts) 4. Focus on environment 3. Main competitors are also largest 5. Low production costs buyers 6. Largest share in mobile 4. Lack its own OS and software phones and 2 place in 5. Focus on too many products smartphones sales 26
  • 27. Opportunities Threats 1. Growing India’s smartphone 1. Saturated smartphone market markets in developed countries 2. Growing mobile advertising industry 3. Growing demand for quality 2. Rapid technological change 3. Declining margins on application processors hardware production 4. Growth of tablets market 4. Breached patents 5. Obtaining patents through 5. Apple’s iTV launch acquisitions 6. Price wars 27
  • 28. VIII. DEVELOPMENT STRATEGIES  Investing Advertising and branding  Devoting resources to innovation and product development.  strategy for continued growth and expansion follows three basic lines:  the expansion of its range of appliances and televisions  screens and innovation in the information technology  improving their handsets through diversification (increase in the average range and low) and innovation. 28
  • 29. IX. SAMSUNG MOLECULAR MODEL Distribution/Price Plans  Samsung Galaxy S4: Molecular model Samsung Galaxy S4  Tangible elements  Intangible elements Package( Phone + accesorie s) Connectivity (HDMI/VGA ) warranty After Selling Services Market positionning 29
  • 30. X. PRODUCT HIERARCHY Samsung Galaxy S4: Product Hierarchy  Item : Samsumg Galaxy S4  Product type : Smartphone  Product line : Samsumg galaxy  Product class : Personal mobile phone  Product family : Sony phone, Nokia phone, Apple phone, Samsumg phone  Need family : Communication  Brand : Samsung  Item : Samsung Galaxy S4 30
  • 32. XI. PRODUCT MIX TABLE  What does it show ?  Samsung covers many part of the market for many products: from the low cost (BAR mobile phones) to the really high standart (Hybrid Notebooks)  Samsung covers B2B and B2C: it is a very large and complex company. 32
  • 33. XII. MARKETING MIX ANALYSIS  Mobile phones: Very cheap to very high standards  Netbooks and tablets: A little bit more high leveled because the product is more technological and for a different type of customers  Television and home appliances: High Standart  Business and industrial: High R and D, high products: customers such as Apple, LG, ST Micro Electronics … 33
  • 34. MARKETING MIX (4P) Price Promotion Product Place 34
  • 35. CONCLUSION  Largest multi-billion dollar corporations in the world.  One of the world’s top three companies in the electronics industry.  Cost advantage clearly visible (managing of the suppliers).  Product differentiation => Innovation and ergonomy. 35