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Chapter-2

Term Paper on Marketing Mix of

SAMAUNG

Submitted for:Mrs. Ethica Tanjeen

LecturerDepartment of Management

Faculty of Business Studies

University of Dhaka

Submitted by:

Serial

No.NameID

No

1. Kibria Kabir254

2. Soumen Roy174

3. Md. Abdullah Al Mahmud Khan133

4. Shafayatuzzaman180

5. Saw Aung Nyunt181

6. Farjana Sultana202

7. Rokeya Rahman192

8. S. M. Kamrul Islam204

9. Almasud Saymon253

10. Md. Asaduzzaman194

16th April, 2014

Mrs. Ethica Tanjeen

Lecturer

Department of Management

University of Dhaka

Subject: Submission of the term paper.

Dear Madam,

We the student of 20th batch, 1st semester department of Management group-A4 University of Dhaka, are very grateful to you for giving us such an interesting and important topic for the course term paper. As per your direction, we have completed the assignment successfully.

While preparing the report, we faced a few problems. But we could go for solving them and at the same time we got a lot of new experiences. For this reason we are thanking you heartily.

We tried our best to make this report the best one. We think this report can serve us in our future life. Submitting this report, we are feeling very happy. We conclude here and again unending thanks to you.

Yours ever,

Group A4Table of ContentsSL. No.ContentPage no.

1Executive summery

2Chapter-11

Introduction 1

Origin of the study1

Scope of the study1

Executive Summary This term paper is made on marketing mix of Samsung. Samsung is a multinational conglomerate company was founded by Lee Byung-Chull in 1938. It entered the electronics industry in the late 1960s. In 1987, following the death of the founder Lee Byung-Chull the company was separated into four groups and each group are independent at present.

This term paper is worked on Samsung electronics. It included marketing mix of Samsung such 4ps (product, price, place, promotion). It describes deeply about their product. It also describes about the mission, vision, objectives of Samsung. Samsung Electronics vision for the new decade is inspire the World, Create the Future.

Samsung has a technology based product manufacturing. Its products are mostly portable devices like mobile phones, TV, blu-ray player, cameras and home appliances.The head quarter of Samsung is situated in South-Korea. There are also some divisions in USA and their outlet is standing all over the world. They have 217 bases worldwide.Samsung focuses on cost-cutting measures to keep its keep its price low which helps to compete against competitor schemes. Although Samsung tries to sell their products at reasonable prices, it does not always stick to this concept. It uses skimming price for products of which they are the market leader. It also uses competitive pricing for some products.

Samsung advertise their product by media, internet etc. they also apply some policy for their sales promotion. Samsung also sponsor such type of big event for their promotion.These are the topics of discussion within the term paper. All the information is illustrated elaborately below in an order.

Chapter-1

Introduction:

The topic of term paper is the marketing mix any company. This term paper is made on the marketing mix of Samsung. Here the introduction part of this term paper:Origin of the study:

Basically the term paper is made for the order of course teacher. Besides, the topic of marketing mix is very important for this course. By making this term paper one can learn details about marketing mix. It is also helpful for future life.

Scope of the study:

This term paper is about the marketing mix of Samsung. This term paper included about the product, price, place, promotion of Samsung electronics. Besides the marketing mix, this term included about the foundation, organizational structure, mission, vision and objectives of Samsung.Data collection methodology:

Data collection methodology is consists of two items.

Primary source

Secondary source

Primary source: There is not any primary source in this term paper for collecting data. All data are collected from secondary source.Secondary source: For this term paper, data is collecting from Books, Article, and Internet.

Limitation:

At the time of making this term paper, there are some limitation had been showed. They are given below:

Time is very short for such a big topic (marketing mix) of this term paper.

Limitation of valid data from the available sources.Chapter-2

Theoretical Framework:

Marketing:

Marketing is an organizational function including creating, delivering, communicating, exchanging, goods and services to customers for the purpose of achieving organizational goals.

Marketing process:

Marketing process describes a companys attempts to create value for customers and building customer relationships in order to capture value from customers in return.

Marketing process diagram

Marketing mix:

A combination of the controllable elements of a products marketing plan commonly termed as the 4Ps: product, price, place, and promotion. Marketing mix is a concerning element of constructing an integrated market plan and program.

The four Ps of the marketing process

Product:

A substance that is manufactured or refined for sale. Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy want or need can be depicted as a product.

Price:

The amount of money charged for a product or service; the sum of the values that customers exchange for the benefits of having or using the product or service. The value can purchase a finite quantity, weight or other measure of a good or service.

Place:

The location of the market and means of distribution used in reaching it. In this sense, market is defined as existence of demand.

Promotion:

The specific blend of promotion tool which the company uses to persuasively communicate customer value and build customer relationships. In short, the advancement of a product, service or an idea through publicity and/or advertising.

Chapter -3

Company Profile:

Brief history:

Samsung is a multinational conglomerate company. The company was founded by Lee Byung-Chull in 1938 as a trading company. It entered the electronics industry in the late 1960s and formed several electronics related divisions such as Samsung Electronics Devices, Samsung Corning, and Samsung Semiconductor & Telecommunications.

In 1987, following the death of the founder Lee Byung-Chull the company was separated into four groups and each group are independent at present. Samsung built a television assembly plan in Portugal; in 1984, a plant in New York; in 1985, in Tokyo; in 1987, a facility in England another in Austin in 1996.

In 1993, Chairman Lee Kun-Hee sold off ten of Samsung Groups subsidiaries and merged other operations to concentrate on three industries: electronics, engineering and chemicals. In 1992 it became the largest producer of memory chips and is the second largest after Intel at present; in 1995, Samsung created its first liquid crystal display screen and grew to be worlds largest manufacturer of LCD screens.

In 2000, Samsung established a computer programming laboratory in Warshaw, Poland and began working with set-top-box technology before moving into digital TV and smartphones. In 2012, Samsung became the worlds largest mobile phone maker by unit sales, overtaking Nokia which had been the market leader since 1998. In 24 August 2012, American jurors declared Samsung had to pay Apple $1.05 billion for violating six of its patents on smartphone technology. It followed a South Korean ruling stating that both companies were guilty of infringing each others intellectual property. After that Samsungs market share fell 7.7 on the Kospi index and Apple tried to ban eight Samsung smartphones from the market but was denied by the court. Samsung started the New Year 2014 by claiming 29.6% of the global smartphone market share.

Company philosophy:

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.

Company mission statement:

Samsungs Electronics mission statement according to their 2013 sustainability report is

To inspire the world with innovative technologies, products and designs that enrich peoples lives and contribute to a socially responsible, sustainable future.

Vision 2020:

Samsung Electronics vision for the new decade is inspire the World, Create the Future.

The new vision reflects Samsung Electronics commitment to inspiring its communities through the implementation of its key strengths: New technology, Innovative products and Creative solution. Theyre also committed to creating a brighter future by developing new value for their core networks: industry, partners and employees.

As part of the new vision, Samsung has mapped out a specific plan of reaching $400 billion in revenue and becoming one of the worlds five top brands by 2020. To this end, they have also established three strategic approaches in their management: Creativity, Partnership and Great People.

Samsung is also trying to explore new territories, including health, medicine, and biotechnology. Samsung is dedicated to developing innovative technologies and efficient processes that create new markets, enrich peoples lives and continue to make Samsung a digital leader.

Vision 2020

Objectives:

Business objectives-

Remain global leader in smart phone market

Increase market share

Marketing objectives-

Spread awareness

Amplify relationships

Establish new relationships

2020 Goals-

Quantitative goals: USD $400 billion in sales, predominately No.1 in the global IT industry and a top 10 global company by 2020.

Qualitative goals: Innovative company; Respected company; Top 10 worlds best workplaces; Creative leader building new markets; Global enterprise that attracts the worlds best talents.

Company values:

Samsung believes that living by strong values is the key to good business. At Samsung, a rigorous code of conduct and these core values are at the heart of every decision they make.

People: Quite simply, a company is its people. Samsung dedicated to giving their people a wealth of opportunities to reach their full potential. Excellence: Everything done at Samsung is driven by an unyielding passion for excellenceand an unfaltering commitment to develop the best products and services on the market.

Change: In todays fast-paced global economy, change is constant and innovation is critical to a companys survival. As they have done for 70 years, they set their sights on the future, anticipating market needs and demands so they can steer their company toward long-term success.

Integrity: Operating in an ethical way is the foundation of Samsungs business. Everything they do is guided by a moral compass that ensures fairness, respect for all stakeholders and complete transparency.

Co-Prosperity: A business cannot be successful unless it creates prosperity and opportunity for others. Samsung is dedicated to being a socially and environmentally responsible corporate citizen in every community where they operate around the globe.

Organizational structure:

Samsung Electronics organizational structure consists of four divisions operating under different management departments. These are Consumer Electronics (CE), IT & Mobile Communication (IM), Device Solution (DS), and Corporate Management. The organizational structure chart is shown below.

Samsungs organizational structure

Divisions: In USA-

1. Samsung Electronics America

2. Consumer Business Division (CBD)

3. Enterprise Business Division (EBD)

4. Samsung Telecommunications America (STA)

5. Samsung Semiconductor, Inc (SSI)

6. Samsung Information Systems America (SISA)

7. Samsung Austin Semiconductor (SAS)

8. Samsung Electronics America Logistics (SALS)

In South Korea-

1. Samsung Electronics headquarters

2. Samsung Electro-Mechanics

3. Samsung Card Co. LTD

4. Samsung C&T Corporation (Construction & Trading)

5. Samsung SDS headquarters

6. Samsung Engineering

7. Samsung Fine Chemicals

8. Samsung Fire & Marine Insurance

9. Samsung Life Insurance

10. Samsung Techwin

Others-

1. Samsung Electronics Research Institute (SERI)

2. Samsung India Software Center (SISC)

3. Beijing Samsung Telecommunication (BST)

4. Samsung Semiconductor China R&D (SSCR)

5. Samsung Yokohama Research Institute

6. Samsung Poland R&D Center (SPRC)

7. Samsung System LSI

Products & services:

Samsung has a technology based product manufacturing. Its products are mostly portable devices like mobile phones, TV, blu-ray player, cameras and home appliances. In addition to its products Samsung delivers various services to their customers, for the environment and for society. These services include Samsung Fire & Marine Insurance, Samsung Health & Biotechnology etc.

Founders & key people:

Lee Byung-Chull (1938-1987): Founder of Samsung Group and was the chairman until his death in 1987.

Lee Kun-Hee: Chairman of Samsung Electronics. He also founded various subsidiaries including Samsung Heavy Industries, Samsung Engineering, Samsung C&T, and Samsung Techwin etc.

Lee-Jae-Yong: Vice Chairman of Samsung Electronics.

Kwon-Oh-Hyun: Vice Chairman and CEO (Samsung Electronics).

JK Shin: President.

BK Yoon: President and CEO.

Chapter- 4Marketing mix of Samsung Electronics:

Product:

Samsung Electronics manufactured products are shown below according to category.

CategoryDivisionsSubdivisionsManufactured Products (Examples)

Mobile PhonesSmartphones2GSamsung E250, Samsung Rex 90 S5292, Samsung Champ, Samsung Star Deluxe Duos S5292

3GSamsung Galaxy S Series (All), Samsung Galaxy Y Series (All)

4GSamsung Galaxy J, Samsung I9506 Galaxy S4,

Samsung Galaxy Note 3 Neo

Dual SIM Phones2GSamsung E1202, Samsung GALAXY STAR GT-S5282

3GGalaxy Y Duos S6102, Samsung I8552 Galaxy Win,

Samsung Galaxy S4 GT-i9502

4GSamsung Galaxy S4 Mini, Samsung Galaxy S4 i9502

CDMA PhonesSamsung Galaxy Y CDMA I509, Samsung Galaxy Ace Duos I589

TVLED TVLED H8000 Series Smart TV, LED H6400 Series Smart TV,

LCD TVE420 USB movie HD LCD TV, Samsung 5 series LN46E550 1080p HD LCD TV

Plasma TVPN64H5000AFXZA Plasma H5000 Series TV, Plasma 8500 Series Smart TV

UHD 4K TVUHD HU8550 Series TV, UHD HU9000 Series TV,

UHD S9V Series Smart TV

Flat TVSamsung LE40B554 flat TV,

OLED TVS9C Series OLED TV

TabletsGalaxy Tabs12.2, Samsung Galaxy Tab 3 7.0, Samsung Galaxy Tab 7.0

Galaxy NoteSamsung Galaxy Note Pro 12.2, Samsung Galaxy Note 3

Wi-FiSamsung Galaxy Tab 3 Lite 7.0 8GB (Wi-Fi), Samsung Galaxy Tab 3 10.1 (Wi-Fi)

4G/LTESamsung Galaxy Tab Pro 10.1 LTE, Samsung Galaxy Note 8.0 (AT&T)

Wearable TechGalaxy GearSamsung Galaxy Gear Jet Black, Samsung Galaxy Gear Mocha Gray

Blu-Ray & Smart PlayersBlu-Ray PlayerBD-H5100 Blu-ray Player, BD-H5900 Blu-ray Player, BD-F6700 Samsung Smart Blu-ray Player

Smart PlayerSmart Media Player GX-SM530CF

Home Theater & AudioHome Theater SystemsHT-H4500 Home Theater System, HT-F9730W Samsung Smart Home Theater System

Multi-Room AudioSamsung SHAPE Wireless Audio Hub, Samsung SHAPE M7 (Black) Wireless Audio Speaker

Sound BarsHW-H551 Wireless Audio Sound bar, 2.1 Channel Sound Bar System with Wired Subwoofer

Wireless Audio DocksWireless Audio System with Dual Dock (DA-E570), Wireless Audio with Dock System (DA-E670/ZA)

Portable SpeakersPortable Bluetooth Speaker DA-F60

Giga Sound Systems260 Watts Shelf Stereo Systems, MX-H630 Giga Sound System, 2300W Giga Sound System

Digital Cameras & CamcordersInterchangeable Lens CamerasNX2000 20.3MP SMART Camera, NX30 20.3MP SMART Camera

Galaxy CamerasSamsung Galaxy Camera 2, Samsung Galaxy Camera Verizon 4G LTE

Long Zoom CamerasWB800F 16.3MP SMART Camera Wi-Fi, WB30F 16.2MP SMART Camera

Point & Shoot CamerasDV150F 16.2MP Dual-View SMART Camera, EX2F 12.4MP SMART Camera

HD CamcordersQF30 Wi-Fi Full HD Camcorder, New F90BN 52X Optimal Zoom HD Camcorder

Point & Shoot CamerasDV150F 16.2MP Dual-View SMART Camera, EX2F 12.4MP SMART Camera

ComputingLaptopsSeries 9 Premium Ultrabook, ATIV Book 9 Plus, Series 6 Notebook

Tablet PCsATIV Tab 3, Series 7 11.6" Business Slate, ATIV Smart PC Pro 700T

MonitorsSamsung Simple LED 23.6 Monitor with Easel Stand, Samsung 27-Inch Screen Monitor with HDMI

PrintersSamsung Printer Xpress M2825DW,Samsung Multifunction Xpress C460FW

Memory & StorageSolid State DrivesSSD 840 EVO 2.75mm mSATA 1TB, SSD 840 EVO 2.75mm mSATA 500GB

SD Memory Cards16GB microSD High Speed Series, 32GB Secure Digital (SD) Card MB-SSBGAHigh Speed Series

Home AppliancesWashers & Dryers4.2 cu. ft. Capacity Front Load Washer, 7.5 cu. ft. Capacity Electric Front Load Dryer

Refrigerators Samsung RR2015CSBRR/TL Refrigerator, Samsung RT33FAJFABX Double Door Refrigerator

MicrowavesME21F606 2.1 cu. ft. Over The Range Microwave, SMH1927B 1.9 cu. ft. Over-the-Range Microwave

DishwashersDW80F600 Top Control Dishwasher, DW80F800 Top Control Dishwasher (Stainless Steel)

Ovens & RangesNE594R0ABSR 5.9 cu. ft. Large Capacity Electric Range, NX58F5500SB Gas Range

VacuumsMotion Sync Bagless Canister Vacuum, Twin-Chamber Bagless Canister Vacuum

LED LightingLED Light BulbsPAR38 (14W) Energy Efficient Bulb, MR16 GU5.3 (35W) Mercury-free Bulb

AccessoriesTV & Camera

Accessories 3D Active Glasses, External Flash SEF15A, Lithium-Ion Battery IA-BP210E

Mobile & PC

AccessoriesVehicle Charger, S Mouse, Hard Drive 250 GB,S-Pen for ATIV Tab 3

Home Appliance

AccessoriesHAF-CIN Refrigerator Water Filter, DV-1A Side Vent Kit

AppsGamesFIFA 12, Tic-Tac-Toe, Where's My Water

ApplicationSamsung WatchOn, Netflix

Operating SystemOpen SourcedTizen

Product strategy:

Variety: As a leading electronics and computing product manufacturer Samsung produces several types of products and services to expand their market. Mobile, TV/audio/video, camera/camcorders, peripherals/pc/printers and home appliances are its major product categories. Having variety in manufacturing ensures them a spot in bigger markets.Samsung recognized technological products are the focus of the present market. They regard the digital age as having both incalculable potential and risks. It has concentrated their production plan on creating tech based products such as smartphones, tablets and accessories and makes most of its revenue through selling such products.

Quality: Although Samsung claims that its product quality is unrivalled its not quite so true. Brands like Apple or Sony can compete with Samsung in providing quality products. Nevertheless, Samsungs products are far more superior to most other brands within its target markets. Samsung creates their superior product quality through a three step development process. Sourcing - Innovative approach to sourcing components

Quality assurance - Notoriously rigorous quality assurance testing

Manufacturing - Proven excellence in manufacturingDesign: Samsung launched a design revolution in order to get rid of its image of imitator. It employed worlds top designers to expand their thought and keep track on the highest level. Its brand image is recognized by the consumers and specialists. The technology breakthrough has enhanced its brand image of young, fashionable and strong function.

Packaging: Like all other electronics manufacturers Samsung also sell their products in attractive and safe packaging. Cause mobile phones, computing, TV & audio type of products are delicate and can be easily damaged protective packaging. EMP, heat, dust, liquids, pressure etc. can seriously damage most electronics. If a laptop is exposed to EMP than it might crash or if any fluid is spilt on it might have irreparable physical damage. Thats why they use Styrofoam, cork or bubble wrap for packaging products. Packaging is required for shipping, transportation and storage of product. It is also done for attracting customers.

Price:Because of its presence in different product categories, Samsung uses various pricing strategies. It believes in providing quality products at a reasonable price to its customers. Differentiation is the key to be preferred by customers when there are so many brands within the same product category; and in Samsungs case it has served them brilliantly.

Samsung focuses on cost-cutting measures to keep its keep its price low which helps to compete against competitor schemes. It has a fixed MOP (Market Operating Price) whereby the goods are sold to the distributors and to the customers at a fixed market price only. It tries to sell its products to middle income families as well as high level markets; keeping in mind the price sensitivity of mid level income consumers.

Although Samsung tries to sell their products at reasonable prices, it does not always stick to this concept. Samsung does use skimming price for products which the company is one of best in the market and the market leader. E.g. Samsung Galaxy Note 3 is a best selling product for the present smartphone market. Samsung has set its market price $632 which is much higher than Sony or LG phones which are available in the present market. But its sales were lot higher than LG or Sony. Samsung Electronics sold over 444.4 million units by the end of Q4 (4th Quarter) of 2013 in the smartphone market. It earned $54.95 billion of the Q4-2013 of which mobile division was responsible for $32.03 billion with a profit of $5.17 billion. It uses skimming price for these products to get a high value in the start before competitors catch up. Of course, once the model is old or any competitor has launched a similar product, Samsung immediately drops the price.

In other areas, where Samsung is not the market leader it applies competitive pricing. E.g. Televisions, air conditioners, refrigerators and other products have competition in the form Panasonic, LG or Whirlpool. Samsung is known to be a great brand but its not greater than LG for home appliances. In fact, LG beats where home appliances are concerned. Similarly in washing machines Whirlpool and in cameras Canon, are the brands which are to be beaten. Thus in various categories, Samsung keeps competitive pricing so as to beat the competitor. Samsung generally uses going rate pricing as the competitive pricing strategy and keeps their prices slightly lower than their competitors but still maintain a fair profit. If their products achieve better brand preference then they slowly raise their price for that specific product. For example, A Samsung WA422PRHD high-efficiency top-loading washing machine was $799 while a LG WT5070C high-efficiency top loading was $1099 in 2013. But LG sales were higher because their model had higher loading capacity whilst Samsungs was slightly less and thus it came in second. But due to its market share increasing than the past year Samsung increased its price on washing machines in 2014. The newer models of Samsung washing machine (Samsung WF42H5600AP, Samsung WF42H5400AF) were priced within the range of $1099 - $1435 which is evidently higher.

Samsung as a brand hardly uses penetrative pricing because it doesnt enter late in the market. In fact, it is present in most consumer durable segments in the market.

Place:Distribution channels: Distribution channel is a set of interdependent organizations that help make a product or service available for use by the consumer or business user. Samsung has a B2B (Business-to-business) distribution strategy. It has built state-level distribution offices and a direct dealer interface in every region they are based. The direct dealer interface helps the company get quick feedback from dealers, and enables it to launch products according to consumer needs. Its distribution channels are different for each region (follows the countrys distribution method) so they can sell their products basically anywhere as long retailers are willing to take stock. The distribution channels might also be dissimilar for different product category or market segmentation. Because of this members of the distribution channels are positioned differently in different country, market type or products. For example, in China, India, Moscow and several other countries where it has production facilities, the distribution channel simply exchanges product from level to level. The factory delivers its products to regional distribution centers and from there to dealers. Then the dealers delivers to sub dealers or retailers and finally, to the customers. But in case of countries that doesnt have production facilities or has them but doesnt implement the conventional marketing system this isnt applicable. Globally Samsungs distribution strategy can be viewed as a multichannel distribution system. Samsung itself views its distribution system globally and it has connected its purchase department with its headquarters.

Samsung distribution system (Mobile & Tablets)Locations & coverage: Samsungs distribution area is worldwide. They have retail stores in Europe, The Middle East, North America, South Asia and several other regions. They also have their own chain of retail stores known as Samsung Experience Store. The company has 217 bases including 51 sales bases globally. These sales bases are situated- 16 in Europe, 7 in The Middle East, 3 in Africa, 3 in CIS, 1 in Southwest Asia, 8 in Southeast Asia, 2 in China, 1 in Japan, 3 in North America and 7 in Latin America. It has a plan open 1400 more Best Buy retail stores in U.S. and thousands of experience Stores around the globe. Transportation: Samsung Electronics optimized its transportation plan by introducing the key distribution TMS (Transportation Management System) and set the optimized transportation route for shipping period by introducing professional TMS package. It believes in JIT (Just in Time) concept to its dealers. It has a policy to make delivery of products within 48 hours of the expected date of delivery. It transports products via seaways, airways or roadways to almost 200 countries.

Logistics: Samsung has implemented an innovative logistics system Global Logistics Network Systems (GLONETS). GLONET application is used on the B2B i.e. Business to Business front for the vendors. This involved linking the key vendors, which form the bigger part of Samsungs sourcing through Samsungs GLONET. This system enables Samsung to connect its purchase department with its headquarters and international procurement offices through integrated ERP (Enterprise resource planning) systems. The integrated ERP system enables Samsung to purchase its requirements from its international procurement offices. This application is also extended to order placement, production plan sharing and invoicing, resulting in shorter business cycles and reduced inventory levels and low waste.Promotion:

Offering advanced technological products and positioning itself platform will not help a company sell its products if it fails to communicate with the potential customers. To raise brand awareness, create strong, favorable brand associations Samsung has adopted various strategies such as corporate advertisements, incentives programs and other methods concerning the promotion mix.

Advertising:

Samsung is involved in aggressive marketing and advertising of its products to develop attitudes, create awareness and transmit information to gain a response from the target market. Their main advertising channels include media such as newspapers, magazines and journals, television, posters and billboards, and websites. Of them TV ads is the most effective and widespread form of advertising. To increase their brand awareness Samsung went in to hire celebrities for their advertising campaign. For example, in 2013, Samsung established a deal with music artist Jay-Z that involved them buying 1 million copies of his album. Although Samsung use a lot of theatrics for advertising they made it very clear that their plan is to provide accurate information to customers to assist them in making buying decisions. Materials of their ads generally include product specification, release date, price, availability, special offers and comparison to previous products.

Sales promotion:

Offering short-term incentives to consumers to encourage sale of product or service is called sales promotion. Like so many other company Samsung also offers incentives. They implement this scheme mainly for these reasons-

For introducing a new product

For counter balancing the competition

For buying and selling of greater quantity of their product

Samsung has various methods of sales promotion. Some of these methods are-

Distribution of sample: Samsung distributes a small portion of their newest products to certain consumers to familiarize them with the product. For example, after releasing the new Galaxy S5 they are giving away one S5 everyday as sample.

Discounts: Samsung launched a limited time discount offer in December 2013 called Samsung Learning Hub Promotion. Customers would get a $20 discount for the first item purchased in the Samsung Learning Hub store.

After sale services: Samsung offers after sales services like online technical help, repairing and installation of products.

Complimentary accessories: After the galaxy series smartphone launching Samsung started to free extra accessories such as flip cover, vehicle headset, and SD cards etc. for purchasing any galaxy series smartphone.

Buy one get one free: In 2013 (31 August 30 November) Samsung launched a promotion offering a free Galaxy Tab 3 if a consumer should purchase a Samsung NX300 smart camera.

Prize contests: Samsung launches various contests during sporting events, religious festivals & occasions for product familiarization. Contests like Samsung Strand Seek, FIFA World Cup-2010 Quiz contest are examples of this promotion.

Others: Other incentives offered by Samsung include bonus package offer, cash Back offer and pre-order offer.

Sponsorship:

Samsung sponsors several types of both national and international events to boost their sales. Most of their sponsored events are sports programs or foundations. Also most of the viewers are interested in buying technology based products which means they can be thought as potential customers. They use sports events for sponsoring cause of massive number of viewers. Some of their significant sponsorship programs organizations are-

Olympic Games

Asian Games

FIFA World Cup Asian Qualifiers

United States Olympic Committee

Korea Football Association

Sydney Opera House

Korea Association of Athletics Federations

These and various other sports programs and organizations are obligated to advertise Samsungs products and the company itself whenever they represent themselves in any national or international event. E.g. in 2013, the Sydney opera house held a massive party to unveil Samsungs new Galaxy S4 smartphone.

Public relations: Being a global conglomerate company Samsung has to manage positive relations with the companys various publics. Samsung tries to build good public relations so that it can establish itself as a preferred brand worldwide. They spend a great deal of money to establish communication with the public. In 2012, they spend $558.8 million globally on public relations. It uses its mediums of advertisement and friendly salesmanship to interact and communicate with the public. Samsung has discarded the traditional communication method and have constructed a triple media model which is called Samsung Ecosystem.

Samsung Ecosystem model elements-

1. Owned media: The owned media of the company is the official blog of Samsung Electronics Company (http://global.samsungtomorrow.com). It achieved 2 million 50 thousand accumulated visitors after 1 year of setting up. It publishes articles based on emotional storytelling such as World and Humanbeing and story created by product that shows cultures and story of Samsung Electronics and Tomorrow People shows the stories of Samsungs employees.

2. Paid media: Media that has to be paid to advertise such as TV and internet. In the past Samsung used paid media to advertise their messages but they reorganized it to expand their contents. It now uses online banners or printing advertisements to introduce their contents. They also make product campaigns such as Samsung Smart TV Online Campaign to influence the public to steer towards their goods.

3. Earned media: Reputation or faith which is earned by customers through SNS (Social Network Services) such as Facebook, Twitter, Orkut and so on. Earned media is a strategy that support and induce bloggers to spread and reproduce their various stories. For example, in 2011, before the launching of Galaxy Tab 10.1 in Seoul; Samsung delivered videos containing information of the product to bloggers to inform the consumers of their events.

Chapter-5

Recommendation:

Only Samsungs official members have the power to recommend or make any decision for its development. Other parties that might have a say in advising them in any way that has association with the companys decision, have to be either hired by Samsung or a third party consultant who are given the authority to do so be the company. So, therefore, any recommendation or strategy that is mentioned below is only a suggestion that the company is not required to take.

Although Samsung is a successful multinational company, it faces some problems in differentiating their products from other competitors. The low cost companies accused Samsung for delivering the same products at a higher price. Samsung may use their design revolution strategy to create new and innovative products that delivers superior value and quality than their competitors. Then it can get rid of its image of imitator and be recognized by the consumers and specialists as a unique brand.Conclusion:

The above study is conducted for the purpose of gaining practical insights on marketing mix of Samsung Electronics. It can be said that Samsung is successful as a multinational conglomerate company. Their marketing and corporate strategy has made it possible for them to be a huge company and be the market leader of many products. If it continues to deliver such promises then it can achieve worldwide brand preference and recognition as one of the top electronics manufacturer of the world.

Bibliography:

Books

Philip Kotler, Gary Armstrong - Principles of marketing, 14th edition

Boone & Kurtz Contemporary marketing, 15th edition

Frances Brassington, Stephen Pettitt-Essentials of marketing

Articles

Samsung Electronics Sustainability Report-2013

Website address

www.gsmarena.com www.news.yahoo.com

www.samsung.com

www.wikipedia.orgConsumer

Electronics (CE)

IT & Mobile Communications

(IM)

Device

Solutions

(DS)

Corporate

Management

CEO

Visual Display

Business

Digital Appliances

Business

Printing Solution

Business

Health & Medical

Equipment Business

Mobile Communications

Business

Network Business

Digital Imaging Business

Media Solution Center

Memory

Business

System LSI Business

LED Business

GBM

(Global business management)

Overseas factory

(Re-import)

OEM

(Original equipment manufacturer) companies

Central distribution center

Regional distribution center

Final distribution center (Retailer)

Agency visiting

Customer

Integrated management system

Production warehousing

Stock supplement

Sale

Sale

Delivery

Order information

Stock information

Direct delivery

Production plan/ warehousing information