Samsung: Building a Global Brand My Eli -Ocha - - M987Z247 M987Z254 M987Z212 Loan – Joice -...

Samsung:Building a Global Brand

My Eli - Ocha -- M987Z247 M987Z254 M987Z212

Loan – Joice - M987Z234 M987Z224

12-inch TVsMemory chip

Flat-screen displayPlasma TVs

Other digital devicesMultifunction cellphone

Samsung

Positioning until the mid-1990s:

Low-cost manufactured products for better-known brands.

Selling consumer products (electronics) at very low price.

After 1996, several shocks in Samsung’s competitive environments:

The global memory chip market went into tailspin due to slackening demand and excess capacity.

Asian financial crisis in 1997.

Samsung: GOOD TECHNICAL QUALITY but

LOW-COST LOW-MARKET IMAGE

SAT AT BACK OF THE STORE

“Redefining Samsung’s Brand Image”

Stylish, high quality brand commanding a premium price

Establish a unique competitive position by developing technique and design

Technical Innovation and R & D

New Product Development and Design

Encouraging Marketing Programs

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.

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.

Assigning 450 designers in 6 design centers in the world to ascertain customers tastes and preferences.

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.

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

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

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$ 8 billion

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.

With the new marketing strategy, Samsung impressed customers of the high-brand image.

Slogan “design awakens all your sense” has been familiar worldwide.

Kotler, et al. (2006), Marketing Management, Pearson, 12th Edition

Etzel, et al. (2004), Marketing, McGraw Hill, 13th Edition

ReferencesReferences