Analysis of the firm samsung in marketing based on the insights from the keller and kotler textbook.

1. Next Is what..?

2. History
Samsung’s First office in 1938

3. Overview
Samsung was founded by Lee Byung-chul in 1938 as a trading company.
Over the next three decades, the group diversified into areas including food processing,
textiles, insurance, securities and retail.

4. Subsidiaries
Samsung Electronics
Samsung C&T Corporation
Samsung Heavy Industries
Samsung SDS
Samsung Life Insurance
Samsung Fire & Marine Insurance
Cheil Worldwide
Since 1990, Samsung has increasingly globalized its activities and electronics; in
particular, its mobile phones and semiconductors have become its most important
source of income

5. Growth Prospects

6. Samsung’s core values
1.People
2.Excellence
3.Integrity
4.Change
5.Co-Prosperity

7. Growth Measures
Growth by Building market share
Developing committed customers and stakeholders
Powerful brand
Innovating products
International expansion
Acquisitions, mergers, alliances
Reputation for social responsibility.
Partnering with government and NGO’s

8. Strength &Weakness
Strengths:
1.Strong technical & R&D
2.Strong Design capability
3.Accessibility of it’s products
4.Market leadership.
5.Line filling and line
positioning
6.Strong Retailer Relationship
Weakness:
1.Samsung does not focus on a specific
niche; it offers its products to the mass
market only. � Samsung does not create
its own software therefore it often relies
on other sources to complete the
products.
� Samsung faces immense competition
from new companies and online
companies.
� High set up and operation cost for
such a company.
2. � Samsung has linked product lines,
which means that if one product line
fails due to its own reasons other
product lines will also suffer.

9. Competition
Because the Samsung had footprints in every field, It has acquired rivals in every field.

11. Skimming price:
This happens when the competitors release a product of same features
Samsung will lower the price and easily steal customers from the
competitor.
Competitive pricing:
To show their brand’s innovation prowess, the brand has to hike the prices to
Compete with market leaders. Increase in the costs results in the positioning of
Brand on exclusiveness and it’s unique features.
Strategies

12. Advertising
The advertisement, starring Lionel Messi, Eddie Lacy, John Florence, Fabian Cancellara
and 2 awesome fans, was the huge success of Samsung’s marketing department.
At the moment, both parts of the video have more than 51 million views.
The commercial focuses on the compatibility of the Gear VR and the Galaxy S6,
showing the awesomeness of the new product that Samsung introduced.
Samsung has invested millions of dollars in advertising to make more unique,
compelling and Heart touching.

13. Spending in ads as a Total

14. Retailing & Distribution
The Distribution is a compelling part of the Samsung marketing strategy.
In certain cities, Samsung has a contract with a single distribution company
that distributes the product throughout the city.
For instance, Mumbai is a great example of a city, where Samsung distributes
its product through a single company.

15. Market Domination
Market domination:
The firm concentrated on the volume and market domination rather than
Profitability.
Asian crisis of 1990 stands as a good example for the resemblance of this strategy.

16. Sponsorships
Samsung have been the sponsor of Premier League football club Chelsea since 2005,
the sponsorship was ended after ten years in June 2015.
Samsung, which started as a domestic sponsor of the Olympics in Seoul 1988, has been
A worldwide Olympic partner since the 1998 Winter Olympics.
It has been official sponsor of the Indian Olympic team for the four consecutive years
2000,2004, 2008,2012.

17. Selling the less profitable subsidiaries
Samsung Techwin
Samsung Thales
Samsung General Chemicals
Samsung Total

18. Controversies
Apple Inc. v. Samsung Electronics Co., Ltd. was the first of a series of ongoing lawsuits
between Apple Inc. and Samsung Electronics regarding the design of Smartphone and
tablet computers; between them, the companies made more than half of Smartphone
sold worldwide as of July 2012.
By July 2012, the two companies were still embroiled in more than 50 lawsuits around
the globe with billions of dollars in damages claimed between them. While Apple won
a ruling in its favor in the U.S., Samsung won rulings in South Korea, Japan, and the UK.
On June 4, 2013, Samsung won a limited ban from the U.S. International Trade
Commission on sales of certain Apple products after the commission found Apple had
violated a Samsung patent.

19. Summary
•Samsung has a strong R&D and strong technical capabilities which led to innovation
in it’s products.
•It’s marketing strategy has a clear mix of price, place, promotions, product, people.
•Samsung has identified ways to penetrate into the consumer market with extensive
promotions and a strong retail chain.
•Samsung has been keeping profits with the strong market segments like memory-chip,
LCD panels.
•It remained as a leader in the OEM(original equipment manufacturers) in these
segments.
•However losses in some subsidiaries led to the selling of the same
•It’s other marketing strategies like international expansion, sponsorships, ad marketing
helped to gain more attention of the people and get attracted to the brand.
•Samsung is leading the market through it’s innovative products, strong brand loyalty
•These factors has been instrumental in the success and growth of the company.

21. Created by S.RAHUL NANDA, VIT UNIVERSITY, VELLORE.
This Presentation has been an integral part of the marketing internship under
Prof. SAMEER MATHUR, IIM LUCKNOW.
Disclaimer