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Creating Customer Value
Founded in 1938◦ exporter of dried fish, vegetables, and fruits◦ flour mill and confectionery machines
1950’s Economic Stabilization◦ Korean War - Samsung lost all assets◦ aimed to help rebuild Korean economy; entered the
manufacturing industry (sugar,fabrics)◦ became a leader in modern business practices (recruiting
from outside) 1960’s Expansion of Key Industries
◦ entered electronics and chemical industries◦ 1969 established Samsung Electronics Co.
Samsung Group
Samsung Group
Electronics28%
Machinery & Heavy
Equipment6%
Chemicals2%
Financial Services
26%
Other37%
% of Sales ($427B)
• distribution• hotels• amusement
theme parks• trading• construction• textile• advertising• baseball team• security
• cameras• aircraft• ships• dump trucks• oil trucks
• polymerized compounds• plastics• specialty chemicals
• life insurance• credit card services• securities trading• finance and trust
management services
• home appliances• wireless
communication• semiconductors
Understand what drives value for Samsung customers?
Understanding Samsung value proposition Identify the customers and segments where
Samsung can create more value relative to competitors
Create a win-win price Focus investments on most valuable
customers
Outline
What drives value for Samsung Customers?? Survey Analysis
Samsung Service
AC
Blu R
ay -
DVD
Mobile
Camer
a
Lapt
op
Home
Thea
tre
Dishwas
her
Micro
wave
TV /
Mon
itor
Tabl
et0
4
8
12
16
20
Product Distribution
Use Products50%
Not Use Products50%
People Using Product
Highl
y Dis
satis
fied
Dissat
isfied
Satis
fied
Highl
y Sa
tisfie
d0
10
20
30
40
Samsung Products
Highl
y Dis
satis
fied
Dissat
isfied
Satis
fied
Highl
y Sa
tisfie
d0
10
20
30
40
Customer Service
Survey Analysis Quality, Technology, Innovation and Variety
Yes84%
No16%
Quality as per Requirement
Yes81%
No19%
Recommend
Yes74%
No26%
Pricing as Quality of Product
Yes77%
No23%
Upgrade
Understanding Samsung value propositionSamsung Industries
Value proposition
Product
Samsung electronics
Innovation, Advance Technology, Price
LED TVs, Smart phones,ACs, Semiconductors, Smart Cameras, etc
Samsung Engineering
Advance and Green Technology, Fast project execution, competitive cost and excellent communication
Upstream oil and gas facilities, oil refining plants, petrochemical plants, gas plants
Value Proposition (Continued)Samsung Industries
Value propositin
Product
Samsung Heavy Industries
Advance and Green Technology,Faster Execution
Bulk carriers, container vessels, crude oil tankers, cruisers, etc.
Samsung Semiconductors
Less energy, high speed, Green technology
SRAM, DRAM, LSI products, AP( Application processor
By Earning its customers interest.
Catering to the needs of the Customer.
Valuing the employees who share the vision.
How can Samsung create more values than its competitors ?
Value for the Money
PLACE 22%PRODUCT 9%SERVICE 14%PEOPLE 9%COMMUNICATION 5%IMAGE 11%PRICE 30%
A CUSTOMER VALUE MODEL
PERCEIVED CUSTOMER VALUE
Creating a Win-Win Price
Samsung Cameras
Samsung LCD
Samsung peripherals / Memory cards
Samsung mobile phones.
Samsung Ac/Refrigerator.
Samsung Laptops
Samsung NP300E5X-S01IN Laptop (3rd Gen Ci5/ 4GB/ 750GB/ DOS/ 1GB Graph)Intel Core i5 4 GB DDR3 RAM15.6 Inch Screen
Rs. 37739Dell:- 35600/-Sony Vaio:- 48000/-
Samsung PL120 Point & Shoot
• 14.2 Megapixels• Optical Zoom: 5x• CCD Image Sensor• With 2.7 inch LCD
Rs. 8950
Nikon:- Rs. 8000Canon:- Rs. 9500
Samsung Festive Season Consumer Offers 2012
Recent Case of LED TV & LCD TVPricing
Customers the life blood of any business
“Retention by service”.Online support portal.Customized products and services for Indian consumers.
Large no. of service centers across globe.
CUSTOMER SALES AND AFTER SALES
ISSUES
Hardware=5%Software=75%Handset=10%Others=10%
PROBLEMS FACED BY REPAIRERS
SOFTWARE
UNKNOWN=18DISLIKED=24INDIFFERNT=8
SAMSUNG KIES
THANK YOU