Samsung- Building a Global Brand

Content

Part 1

Part 2

Part 3

Overview of Samsung

Marketing Strategies

Results and suggestions

Overview ResultsMarketingstrategies

Introduction

Company OverviewAchievementIssues

Company Overview

The biggest brand of Samsung Chaebol

Started out in 1970Marketing strategy: Cost-driven

Achievements

The number one position of the global chip market

Pioneering the development of flat-screen displays, Plasma TVs,…

IssuesInternal:

- Sales and profits fell

- Image downed

External: - Competition

- Slackening demand and excess capacity in the global market

- Asian financial crisis in 1997

- Emerging of new Digital Age

Survive & develop or not

What did they do???

Marketing strategies

Technical Innovation and R&D

New Product Development and Design

Brand’s Image Building

Analog - DigitalAnalog - DigitalWhy did it change?Why did it change?

Higher expectation of each electronics tools at Higher expectation of each electronics tools at the global marketthe global market

Required better performance to fulfill the Required better performance to fulfill the advancing technologyadvancing technology

Base on the market needs.Base on the market needs.Force the company to fulfill the capacity of each Force the company to fulfill the capacity of each

technology.technology.Leads for a new innovationLeads for a new innovation

Analog Analog Digital DigitalAnalogAnalog DigitalDigital Old designOld design Slow complicatedSlow complicated Hard time Hard time HeavyHeavy Pattern ledPattern led

modern designmodern design cooler cooler fast access fast access hard workinghard working light and simplifiedlight and simplified

How can it be done?How can it be done?

•Develop through research on the targeted market.Develop through research on the targeted market.•Increase Research FundingIncrease Research Funding•Hire more specialists for innovationsHire more specialists for innovations

The progress of Brand Image: 1996 Samsung’s branded products were softening. 2000-2005 became the most valuable consumer electronics brand.

Objective for building the Brand Image:

Building an image of the Samsung (stylish, high-quality brand commanding the premium price)

Establish a unique competitive position using technical innovation and design to appeal to younger and relatively upscale customer segments

Building The Brand Image

Building The Brand Image activities

Marketing Programs that were used:

Effective marketing Build customer awareness Re-organize the firm’s distribution channels Advertising campaigns Promotional tools - such as sponsorships,

advertising, etc.

Results – Samsung’s brand value

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12

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2000 2001 2002 2003 2004 2005

Global value of Samsung'sbrand

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10000

20000

30000

40000

50000

60000

2000 2001 2002 2003 2004 2005

Sales

Operating profit

Assets

Liabilities

Results

Results

In period of 2000-2005, Samsung’s global value doubled

=> Overtook SonySamsung’s sales grew more than 57

trillion won (about $56 billion) in Dec,2005. Half came from outside Asia Operating income hit a record 8 trillion won

($8 billion)

Suggestions

Success starts from an effective strategy, marketing plan, and implementation. For CEO: decide technologies, goods and

services,…. Chief financial officer: market the merits of the

company Executive director of nonprofit community

agency: pursue the necessary resources All of managers: market the ideas

Samsung marketing programs (BBC and asianweeks): Direct sale Premium: Samsung magazine, catalog,

exhibition PR Advertisement:

• 5M: mission, money, message, media, measurement• Content of ads - AIDA:

– Get ATTENTION– Hold INTEREST– Create DESIRE– Lead to ACTION

Sources

Marketing management handout Samsung annual reports from 1998 to

2007BBC and Asianweekswww.samsung.com/uswww.wikipedia.comSamsung commercial video -

www.youtube.com