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Samsung Electronics
A Case Study
COMPANY PROFILE
 Samsung Group is a South
Korean multinational conglomerate
company headquartered in Samsung Town, Seoul. It
comprises numerous subsidiaries
and affiliated businesses, most of them united under
the Samsung brand, and is the largest South Korean
chaebol (business conglomerate).
 Samsung comprises around 80 companies. It is highly
diversified, with activities in areas
including construction,consumer electronics, financial
services, shipbuilding, and medical services.
History
 Unlike other electronic companies SAMSUNG origins were not involving
electronics but other products.
 In 1938 the SAMSUNGs founder Byung-Chull Lee set up a trade export
company in Korea, selling fish, vegetables, and fruit to China. Within a
decade SAMSUNG had flour mills and confectionary machines and
became a co-operation in 1951.
 From 1958 onwards SAMSUNG began to expand into other industries such
as financial, media, chemicals and ship building throughout the 1970s.
 In 1969, SAMSUNG Electronics was established producing what
SAMSUNG is most famous for, Televisions, Mobile Phones (throughout
90s),Radios, Computer components and other electronics devices.
 1987 founder and chairman, Byung-Chull Lee passed away and Kun-Hee
Lee took over as chairman.
 In the 1990s SAMSUNG began to expand globally building factories in the
US, Britain, Germany, Thailand, Mexico, Spain and China until 1997.
Company consists of five main business
units:
1. Digital media Business
2. LCD Business
3. Semiconductor Business
4. Telecommunications
5. Digital Appliance Business
 SAMSUNG follows a simple business philosophy: to devote
our talent and technology to creating superior products
and services that contribute to a better global society.
 Every day, our people bring this philosophy to life. Our
leaders search for the brightest talent from around the
world, and give them the resources they need to be the best
at what they do.
 The result is that all of our products—from memory chips
that help businesses store vital knowledge to mobile
phones that connect people across continents— have the
power to enrich lives. And that‘s what making a better
global society is all about.
Strategies of Samsung
1. Pricing Strategy
Pricing also seemed to have played a significant role in
SAMSUNG‘s success. Differentiation is thekey for a
brand to be preferred by consumers, when there are so
many brands within the sameproduct category.
SAMSUNG believes in providing good products at
reasonable prices to itscustomers. SAMSUNG‘s
technology plank communications helped the company to
gain marketshare, even though it did not offers any
discounts or exchange scheme when it entered
India.SAMSUNG focuses on cost-cutting measures to
keep its price low which helps to combat thediscount
schemes of the local companies.
BRANDING STRATEGY
 For any new company, when it makes its entry into the
market, there are two ways to stimulate growth: intensive
advertising campaign, and product offerings with unique
functions. SAMSUNG recognized the potential of both.
 .In India, SAMSUNG, in order to create its brand awareness,
signed seven cricket celebrities and in doing this it aimed to
cash in on the popularity of cricket in India which is
considered a religion in India. Instead of just ads featuring
cricketers, SAMSUNG launched its ―Team SAMSUNG
India campaign all over India.
 Samsung supported the Indian team to the Beijing Olympic
Games as well as provided scholarship support to six Indian
athletes for their training expenses, including Abhinav Bindra
whom we subsequently signed on as our Brand Ambassador
for Consumer Electronics products, following his return from
the Olympics
Advertisement
 With Aamirs endorsement of SAMSUNG, the fight for the mobile
phone market had also become afour-way battle with other leading
actors endorsing the rival brands - Shah Rukh Khan
endorsingNokia, Abhishek Bachchan endorsing Motorola, and,
Hrithik Roshan endorsing Sony Ericsson.
 Providing free content on the mobile by collaborating with the
copyright owners of Bollywood movies. For e.g Ghajini, Love Aaj
Kal
 Promotional offers like free entry to the show of ‗10 ka dum‘
 Organizing contests like ‗SAMSUNG Mobile Karaoke Festival‘
 Opening the SAMSUNG Fun Club for better customer relationships.
 Free online software updates, tutorials and customer service
 Highlights the innovative features of its products through a
combination of innovative advertising and branding.
 Established many SAMSUNG Mobile Stores to increase the
visibility of the brandPromotion
Conclusion
• Although Samsung has captured the highest
market share in Indian market, but the company
had toface so many problem. For example conflict
with the Apple, Apple blamed the Samsung
thatcompany is copying some of its features and
design. This blame damaged the reputation of
theSamsung all over the world. But still Samsung
is a favourite brand of Indian consmers whether
wetalk about Electronic consumer goods or
Smartphone. It means despite of problems and
blames,Samsung has positioned itself in consumr
mind as a quality brand.

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Samsung Electronics: A Case Study

  • 2. COMPANY PROFILE  Samsung Group is a South Korean multinational conglomerate company headquartered in Samsung Town, Seoul. It comprises numerous subsidiaries and affiliated businesses, most of them united under the Samsung brand, and is the largest South Korean chaebol (business conglomerate).  Samsung comprises around 80 companies. It is highly diversified, with activities in areas including construction,consumer electronics, financial services, shipbuilding, and medical services.
  • 3. History  Unlike other electronic companies SAMSUNG origins were not involving electronics but other products.  In 1938 the SAMSUNGs founder Byung-Chull Lee set up a trade export company in Korea, selling fish, vegetables, and fruit to China. Within a decade SAMSUNG had flour mills and confectionary machines and became a co-operation in 1951.  From 1958 onwards SAMSUNG began to expand into other industries such as financial, media, chemicals and ship building throughout the 1970s.  In 1969, SAMSUNG Electronics was established producing what SAMSUNG is most famous for, Televisions, Mobile Phones (throughout 90s),Radios, Computer components and other electronics devices.  1987 founder and chairman, Byung-Chull Lee passed away and Kun-Hee Lee took over as chairman.  In the 1990s SAMSUNG began to expand globally building factories in the US, Britain, Germany, Thailand, Mexico, Spain and China until 1997.
  • 4. Company consists of five main business units: 1. Digital media Business 2. LCD Business 3. Semiconductor Business 4. Telecommunications 5. Digital Appliance Business
  • 5.  SAMSUNG follows a simple business philosophy: to devote our talent and technology to creating superior products and services that contribute to a better global society.  Every day, our people bring this philosophy to life. Our leaders search for the brightest talent from around the world, and give them the resources they need to be the best at what they do.  The result is that all of our products—from memory chips that help businesses store vital knowledge to mobile phones that connect people across continents— have the power to enrich lives. And that‘s what making a better global society is all about.
  • 6. Strategies of Samsung 1. Pricing Strategy Pricing also seemed to have played a significant role in SAMSUNG‘s success. Differentiation is thekey for a brand to be preferred by consumers, when there are so many brands within the sameproduct category. SAMSUNG believes in providing good products at reasonable prices to itscustomers. SAMSUNG‘s technology plank communications helped the company to gain marketshare, even though it did not offers any discounts or exchange scheme when it entered India.SAMSUNG focuses on cost-cutting measures to keep its price low which helps to combat thediscount schemes of the local companies.
  • 7. BRANDING STRATEGY  For any new company, when it makes its entry into the market, there are two ways to stimulate growth: intensive advertising campaign, and product offerings with unique functions. SAMSUNG recognized the potential of both.  .In India, SAMSUNG, in order to create its brand awareness, signed seven cricket celebrities and in doing this it aimed to cash in on the popularity of cricket in India which is considered a religion in India. Instead of just ads featuring cricketers, SAMSUNG launched its ―Team SAMSUNG India campaign all over India.  Samsung supported the Indian team to the Beijing Olympic Games as well as provided scholarship support to six Indian athletes for their training expenses, including Abhinav Bindra whom we subsequently signed on as our Brand Ambassador for Consumer Electronics products, following his return from the Olympics
  • 8. Advertisement  With Aamirs endorsement of SAMSUNG, the fight for the mobile phone market had also become afour-way battle with other leading actors endorsing the rival brands - Shah Rukh Khan endorsingNokia, Abhishek Bachchan endorsing Motorola, and, Hrithik Roshan endorsing Sony Ericsson.  Providing free content on the mobile by collaborating with the copyright owners of Bollywood movies. For e.g Ghajini, Love Aaj Kal  Promotional offers like free entry to the show of ‗10 ka dum‘  Organizing contests like ‗SAMSUNG Mobile Karaoke Festival‘  Opening the SAMSUNG Fun Club for better customer relationships.  Free online software updates, tutorials and customer service  Highlights the innovative features of its products through a combination of innovative advertising and branding.  Established many SAMSUNG Mobile Stores to increase the visibility of the brandPromotion
  • 9. Conclusion • Although Samsung has captured the highest market share in Indian market, but the company had toface so many problem. For example conflict with the Apple, Apple blamed the Samsung thatcompany is copying some of its features and design. This blame damaged the reputation of theSamsung all over the world. But still Samsung is a favourite brand of Indian consmers whether wetalk about Electronic consumer goods or Smartphone. It means despite of problems and blames,Samsung has positioned itself in consumr mind as a quality brand.