The document discusses Samsung's rise from making cheap televisions under another brand to becoming a global leader in electronics, focusing on its diverse product lines, heavy investments in research and development, and global marketing strategies. It analyzes Samsung's strengths in areas like its brand, product innovation, and cost competitiveness, as well as weaknesses in areas like product durability perceptions and decreasing profit margins.

2. Presentation on :

3. Presented To :
Sir Azfar Abassi
Presented By :
Sohail Khan (Bs-Economics)
1427-314014
Muhammad Abdullah Asrar Mirza (Bs-Economics)
1427-314005
Mobeen Mir (Bs-Economics)
1427-314001
Fatima (Bs-psychology)
1427-115109

4. PRODUCT
PROMOTION
PricePrice
4P’s IN
MARKETING
PlacePlace

5. 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

6. 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

7. 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”.

8. Samsung sells product with a price that’s
worth, if we compare 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”

10. Productplacements
Sponsorships
MediaAdvertising

11. Hotel chains (such as Hilton), where most
in-room technology was now dated and
required early replacement to retain
competitive advantage.
Their products are also been used in
various movies which is also been used
as a marketing base.
Also their giving away their products at
various sports event as gift for the
players.

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

13. 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 : Fox’s
movies Fantastic Four
Display in the film

14.  Samsung has its own stores which can
be found around the world. Not only in
Asia , but also in America, Europe,
Australia and Africa.
 Samsung has its stores located & also
its service center at places where it is
closes to the customer reach.
 At the stores, we not only can buy the
product that sold, but also feel the
experience of digital lifestyle.
 In India after covering the urban
market Samsung is now ready to tap the
urban market.
 Plans are to start up a plant in Tamil
Nadu & Andhra Pradesh with an
investment of $150 million.

17. 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 to its
competitor, Sony, which is
US$ 11,953 million.

18. 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.

19. Market share: Global
market share of mobile
phone increase from
18% in 2004 to 19.1%
in 2009. Memory chip
Industry is 27% in 2009
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

20. 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

21. 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.

22. 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

24. 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

25. Increasing competition
DRAM (Q1-2009)
Ran
k
Company Market Share
1 Samsung 34.3%
2 Hynix 21.6%
3 Micron Technology 14.6%
4 Elpida Memory 14.2%
5 Qimonda 4.8%

26. Increasing competition
LCD TV (Q3-2008)
Ran
k
Company Market Share
1 Samsung 20.2%
2 Sony 13.8%
3 Sharp Corporation 10.2%
4 LG 9.3 %
5 Phillips 7 %

27. Increasing competition
Mobile phone (Q1-2009)
Ran
k
Company Market
Share
1 Nokia 36.2%
2 Samsung 19.1%
3 LG 9.9 %
4 Motorola 6.2 %
5 Phillips 5.4 %

28. Decreasing Operating profit margins
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 Margin 28.05 % 30.03 %
Operating Profit Margin 9.1% 10.6 %

29. Economic Slowdown, makes demand
for electronics product weaken.