Samsung Home Theater System - khuram shahzad …khuram.synthasite.com/resources/Documents/Marketing... · Web viewBlack-and-white TV (model: P-3202) production started by SAMSUNG-Sanyo

Project Report: Samsung Home Theater System

Group MembersAwais Naeem 083158M. Asim Riaz 083159Khuram Shahzad 083268Shakeel Anjum 083277Abrar Hussain 083109

Submitted To - Shazif IqbalInstitute of management Sciences, Lahore

Samsung Home Theater System

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We believe that through technology innovation today, we will find the solutions we need to address the challenges of tomorrow. From technology, comes opportunity—for businesses to grow, for citizens in emerging markets to prosper by tapping into the digital economy, and for people to invent new possibilities.It’s our aim to develop innovative technologies and efficient processes that create new markets, enrich people’s lives and continue to make Samsung a trusted market leader.

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History

Samsung Group headquarters at Seocho Samsung Town, Seoul.

Samsung and others (Besix, Turner) areconstructing the world's tallest building,the Burj Dubai (818 m) in the UAE.

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http://en.wikipedia.org/wiki/Seocho_Samsung_Town

http://en.wikipedia.org/wiki/UAE

http://en.wikipedia.org/wiki/Burj_Dubai

http://en.wikipedia.org/wiki/Turner_Construction

http://en.wikipedia.org/wiki/Besix

http://en.wikipedia.org/wiki/Seoul

http://en.wikipedia.org/wiki/File:KangnamSamsung.jpg

http://en.wikipedia.org/wiki/File:Burj_Dubai_Under_Construction_on_8_May_2008_Pict_2.jpg


Samsung constructed Petronas Twin Towers in Malaysia.

Samsung, as a subcontracter, constructed

The the Taipei 101 in Taiwan, the world's

tallest completed skyscraper.

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http://en.wikipedia.org/wiki/Taipei_101

http://en.wikipedia.org/wiki/Malaysia

http://en.wikipedia.org/wiki/Petronas_Twin_Towers

http://en.wikipedia.org/wiki/File:Petronas_Panorama_II.jpg

http://en.wikipedia.org/wiki/File:Taipei101.portrait.altonthompson.jpg


From its inception as a small export business in Taegu, Korea, SAMSUNG has grown to become one of the world's leading electronics companies, specializing in digital appliances and media, semiconductors, memory, and system integration. Today SAMSUNG's innovative and top quality products and processes are world recognized.

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1938-1969 SAMSUNG's Beginnings

On March 1, 1938, founding chairman Byung-Chull Lee started a business in Taegu, Korea, with 30,000 won.

1970 Black-and-white TV (model: P-3202) production started by SAMSUNG-Sanyo

1969 SAMSUNG-Sanyo Electronics established (renamed SAMSUNG Electro-Mechanics in March 1975 and merged with SAMSUNG Electronics in March 1977)

1963 DongBang Life Insurance acquired (renamed SAMSUNG Life Insurance in July 1989)

1951 SAMSUNG Moolsan established (now SAMSUNG Corporation)

1938 SAMSUNG founded in Taegu, Korea

1970-1979 Diversifying in Industries and Electronics

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In the 1970s, SAMSUNG laid the strategic foundations for its future growth by investing in the heavy, chemical, and petrochemical industries.

1979 Began mass production of microwave ovens

1978 4 millionth black-and-white TV (most in the world) produced

1974 SAMSUNG Petrochemical established

Began washing machine and refrigerator production1972 Began production of black-and-white televisions for domestic sale

1980-1989 Entering the Global Marketplace

SAMSUNG's core technology businesses diversified and expanded globally during the late 1970s and early 1980s.

1989 SAMSUNG BP Chemicals founded

20 millionth color TV produced1987 SAMSUNG Advanced Institute of Technology opened for R&D purposes

1986 Developed the world's smallest, lightest 4mm video tape recorder

1984 SAMSUNG Data Systems established (Renamed SAMSUNG SDS)

First VCRs exported to the US

1990-1993 Competing in a Changing Tech World

The early 1990s presented tremendous challenges for high-tech businesses.

1993 SAMSUNG Electronics acquired U.S. firm HMS

1992 Development of world's first 64M DRAM completed

1991 SAMSUNG supported installation of Korean Pavilion at the Royal Museum of England

Development of mobile phone handset completed

1994-1996 Becoming a Global Force

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In the mid-1990s, SAMSUNG revolutionized its business through a dedication to making world-class products, providing total customer satisfaction, and being a good corporate citizen – all under the vision of "quality first."

1996 Development of 1G DRAM completed

Developed world's fastest CPU (central processing unit), the Alpha chip

1994 Development of world's first 256M DRAM completed

30 millionth microwave oven produced

1997-1999 Advancing the Digital Frontier

Despite the 1997 financial crisis that affected nearly all Korean businesses, SAMSUNG was one of few companies that continued growing, thanks to its leadership in digital and network technologies and its steady concentration on electronics, finances, and related services.

1999 First in the world to mass-produce and offer a full line up of digital TVs

Developed wireless Internet phone (Smartphone), a small, multi-function phone1997 Developed world's lightest PCS (105g)

2000-Present Pioneering the Digital Age

The digital age has brought revolutionary change – and opportunity – to global business, and SAMSUNG has responded with advanced techno-logies, competitive products, and constant innovation.

2008

Named Yoon-Woo Lee as a Vice Chairman & CEO of Samsung Electronics

Developed the world's first 2Gb 50 NANO

No.1 worldwide market share position for TVs achieved for the 9th quarter in a row2007 Attained No.1 worldwide market share position for LCD for the sixth year in a row

2003 Ranked 5th on the "Most Admired Electronics Company" list released by the Fortune Magazine

2000 Develops Unique All-in-one DVD Player

Developed world's first 512Mb DRAM

Social welfare programs

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Children are the future of our society and the SAMSUNG Welfare Foundation, along with SAMSUNG's affiliates, is actively involved in the upbringing of children and in helping people in need become self-sufficient.

We do all we can to enhance the quality of life for our neighbors.

Since 1999, for five consecutive years, SAMSUNG has donated 10 million dollars each year to help and care for the needy people in our society. Especially, SAMSUNG donated 20 million dollars in 2004.

Activity

Building/operating daycare centers for low-income children Establishing exclusive plants for the physically disabled

Support Program for Elderly Citizens

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Products

Consumer Product

Mobile phones - CDMA, GSM

Televisions - LCD TV, Plasma TV

Audio / Video - Blu-ray, Home theater projectors, MP3 & DVD players

Cameras & Camcorders - Digital cameras, Camcorders

Computers & Peripherals - Desktop monitors, Hard disk drive

Printers & Multifunction - Monochrome laser printers, laser & Color printers & faxes

Home appliances -Refrigerators, Washers & Dryers, Microwaves, Air conditioners

CCTV - Camera, Monitor, Controller

Business Product

Business Products - Mobile computing, LCD monitors, Data projector

Telecommunication - Business telephone systems

Set Top Box - Digital video recorder, Digital satellite receiver

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http://en.wikipedia.org/wiki/Set_Top_Box

http://en.wikipedia.org/wiki/Telecommunication

http://en.wikipedia.org/w/index.php?title=Business_Products&action=edit&redlink=1

http://en.wikipedia.org/wiki/CCTV

http://en.wikipedia.org/wiki/Home_appliances

http://en.wikipedia.org/w/index.php?title=Printers_%26_Multifunction&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=Computers_%26_Peripherals&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=Cameras_%26_Camcorders&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=Audio_/_Video&action=edit&redlink=1

http://en.wikipedia.org/wiki/Televisions

http://en.wikipedia.org/wiki/Mobile_phones


Corporate strategic planning

Samsung is useing diversification approach by producing different products in new but related industry (related diversification) i.e. mobile phones, televisions, audio and video, camera and camcorders, computers and peripherals, printers and home appliances

Business unit strategic planningSamsung is using differentiation strategy for its home theater systems by differentiating its products from its competitors in terms of innovation, cutting edge technology and world class design

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SWOT Analysis

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Strengths

New product concept to rollout in five months Catching the pulse of the consumer, offering good designs & understanding emotions Heavy investments in product design, technology and human resources Focus on innovative products for the high-end market Cash rich

Vertical integration (manufacture everything self)

Research and devalopment

Surrounding sound system wih ligh and heavy sound

Low bureaucracy

Speed of delivery

Tapping into youth

Design of products

Constant

Weaknesses

Not proactively coming out with newer models Lack in product differentiation Not very user friendly designs

Opportunities

Distinguish its services from competitors Offer product variations Tie up with service providers Lowering the price of its products by just 20% in many countries could increase its

profitability by 43% (as per a study report) To unseat Sony as the most valuable electronics brand and most important shaper of trends.

To dominate the digital home competing with Sony and Philips. Capitalize on reputation, image

Threats

Energy crisis in PakistanWords 2969 Page 15


Political instability

Aggressive competitors like Sony, LG eating into its share

Not keeping track of new trend in the market

Ability of others to copy design (LG)

Strategic alliances

Promotional alliance

Samsung has promotional alliance with the phone tel Pvt. Limited, Makro cash & carry, Metro cash & carry and Hyperstar for promoting its products

Logistics allianceDWP group provide logistics services to Samsung electronics company digital world Pakistan

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CompetitorsSamsung has different competitors in its market of home theater system that can eat up to its market share there are two classes of its competitors i.e. direct competitors, indirect competitors

Direct competitors- all the companies that are involved in producing the home theater systems are classified as its direct competitors which are:

Sony

LG

Philips

Toshiba

Indirect competitors- all the companies that are producing the products related to Samsung home theater systems are classified as its indirect competitors as indirect competitors can also pose a threat to company towards achieving strategic aim along with direct competitors. Its main indirect competitors are:

Pioneer

Kenwood

Mitsubishi

Yamaha

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Analyzing the Macroinvironment

Needs and Trends

Samsung closly look at the changing consumer preferences, fashions, style, trends and maga trends and offers the products in pursuance of these trends

Other Macroenvironment forces

Demographic environment- the overall population of the world and Pakistan is continuously increasing

Economic environment- the consumer market of Pakistan consist of people with different income levels some are poor and some are rich and based upon that income level they choose among different products based upon their income level

Social-cultural environment- Pakistan market is a mix of different cultures and values, rattails of the people change with the change in social culture

Natural environment- natural environment is changing rapidly throughout the world due to this phenomena the overall environment of the world is changing i.e. global warming

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Technological environment- the technological environment of Pakistan and the world is continuously changing and has a major effect on the buying preferences of the people

Political-Legal environment- the political environment of Pakistan is not very stable and there is a rapid change of governments due to which there are changing policies of new governments which effects the whole market of Samsung (home theater system)

Levels of segmentationSamsung is targeting the customer market by dividing it into diferent segments and offering each segment different product based on their common characteristics

Bases for Segmenting Consumer Markets

The consumer market for samsung home theater system has been divided using four schemes of segmentation variables i.e geographic, demographic, psychographic and behavioural

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Geographic Segmentation

Region- Samsung has divided the Pakistani market into different geographical regions such as northern, eastern and southern areas

City- Samsung is targeting different cities of Pakistan differently by dividing different cities as different markets

Demographic Segmentaton

Age- age factor is not really involved in Samsung segmentation but its most users are adults enthusiastic people

Family size- Samsung home theater systems are offered for all family sizes

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Gender- Samsung home theater system is equally beneficial for male and female

Income- Samsung home theaters are offered with varying features to different peoples based upon their income level i.e. low (upto Rs. 30000) lower middle (Rs. 30000-60000) middle (Rs. 60000-80000) upper middle (Rs. 80000-100000) and high (above Rs. 100000)

Occupation- Samsung has divided the consumer into different categories based upon their occupation i.e. businessman, self employed, students and teachers

Education- Samsung is also keen to know about the education level of its target market i.e. illiterate, school 5 to 15, nongraduate, graduate and postgraduate

Psychographic Segmentation

Lifestyle- Samsung is also classifying customers on different levels based on different lifestyle of the people i.e. culture oriented, sports oriented, outdoor oriented

Personality- customers are differentiated on the varying level of personality such as compulsive, ambitious

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Samsung: Building brand equity through brand community

Samsung has created a strong brand around innovation, cutting edge technology and world class design.

Samsung belongs to best consumer electronics brand : November 8th 2005

In a survey of the top 100 global brands, Business Week magazine & Inter brand Consultancy have valued Samsung's brand at $14.9 billion in 2005, making it the world's topmost consumer electronics brand, a position long held by more entrenched player Sony. Samsung was at 8th position last year and now it rank 12th position in the ranking of top global brands.

20th rank in Top100 Global brand Our 20th rank in the Top 100 Global brands is a testimony of the trans-formation the company has undergone in the last few years.

Points-of-Difference and Points-of-Parity

Points of Difference (PODs)

Samsung is differentiating its products in terms of innovation, cutting edge technology and world class design from its competitors in order to maintain a core competency

Points of Parity (POPs)

Samsung is offering different models in its line of home theater systems with varying features and these products are priced based on these varying features

Differentiation strategy

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Product differentiation

Samsung differentiates its products from its competitors in terms of cutting edge technology and world class design

Personel differentiation

One of Samsung's strongest assets is our team of talented researchers and engineers. More than a quarter of all Samsung employees—42,000 people—work everyday in research and development, and we expect that number to surpass 50,000 by 2010.

Image differentiation

Samsung has crafted an innovative image in the minds of the consumers

Buying situationsSamsung uses both situations in ordering for its business supplies, it makes most decisions in new task and lesser in straight rebuy situation

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Straight rebuy

The purchasing department of Samsung reorders supplies such as office supplies and bulk chemical on routine basis and chooses from a approved list

New task

Whenever Samsung purchases an item for the first time it offers for an open tender and chooses from the business suppliers on the bases of suitability

Korean electronics giant, Samsung, has many divisions. Two of them, Samsung Electro-Mechanics (SEMCO) and Samsung Electronics Co. (SEC) supply the parent company with the electronic components used in Samsung's products.

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Products (Home Theater System)

5.1 channel home theatre system

Bluetooth 1080p video

Up-Scale

Anynet+ (HDMI-CEC)

USB host

Price MRP Rs. 42,900/-

HT-TX715T


USB host with CD ripping BD wise

Bio Kelp Speaker

Auto Sound Calibration

Price Rs. 29,900/-

HT-TX725


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1080p video Up-Scale

Anynet+ (HDMI-CEC)

USB host

Price Rs. 19,900/-

HT-TZ315

Bio Kelp Speaker 1080p video up-scale

USB host with CD ripping

power bass

Price Rs. 14,900/-

HT-Z220

USB host with CD ripping

Bio Kelp Speaker Anynet+ (HDMI-CEC)

1080p Video Up-scale

Price Rs. 15,900/-

HT-Z320

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Power and performance

1080p video up - scale Anynet + (HDMI - CEC)

USB Host

Price Rs. 18,900/-

HT-TZ225

Home theatre surround system

1080p video Up-scale USB Host

Anynet+ (HDMI-CEC)

Wireless-Ready

Price Rs. 17,900/-

HT-TZ312T

Home theatre surround system

Bluetooth 1080p video Up-scale

Anynet+ (HDMI-CEC)

USB Host

Price Rs. 14,900/-

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Full featured home theatre system with wireless rear speakers

USB Host 1,080p video up-scale

ASC (auto sound calibration)

Anynet+(HDMI-CEC)

Price Rs. 24,900/-

HT-TZ425

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Upgrade your TV's sound

TV best match (40 inch or above) wall mount or display on table top

wireless active subwoofer

optical sync with TV

Price Rs. 24,900/-

HT-WS1R

Home theatre system

Full HD Up-Scaling Anynet+ (HDMI-CEC)

USB host

wireless ready

Price Rs. 44,900/-

HT-X810T

Single disc home theatre surround sound system

powerful sound DivX playback

Price Rs. 9,900/-

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HT-Z110T

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DVD home theatre system

USB Host power bass

Dolby Digital Plus

Price Rs. 10,900/-

HT-Z121T

5.1 channel satellite speakers' home theatres system with 800W high power output

1080p video Up-scale Anynet+ (HDMI-CEC)

USB Host

Price Rs. 12,900/-

HT-Z210T

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Accessories and Packing

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Price

Product (home theater system) Model Prices (Rs.)

5.1 channel home theater system HT-TX715T 42,900

HT-TX725 29,900

HT-TZ315 19,900

HT-Z220 14,900

HT-Z320 15,900

Power and performance HT-TZ225 18,900

Home theatre surround system HT-TZ312T 17,900

Home theatre with wireless speakers HT-TZ425 24,900

Upgrade your TV's sound HT-WS1R 24,900

Home theatre system HT-X810T 44,900

Single disc surround sound system HT-Z110T 9,900

DVD home theatre system HT-Z121T 10,900

5.1 channel satellite speakers HT-Z210T 12,900

Home theatre surround system HT-Z310 14,900

Place

The samsung home theater products are available in the following places of pakistan

Makro cash & carry Metro cash & carry Hyperstar HKB Samsung outlets Abid market Hall road

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Outlets

Samsung has 18 outlets in all over pakistan out of which 10 are in the lahore

Competitive strategiesSamsung is the market leader in the market of home theater system and therefore it will have to use defence strategies in order to defend its market share from its competitors

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Promotion:The objectives of samsung promotional activities is to create awareness about our product and to get

desired market share through our promotional efforts.

Promotional Mix:

Samsung uses promotion mix in ordr to deliver and communicate obout its products to final consumers:

Advertisement

Samsung advertises its products through magazines, news papers, television commercials, bill boards,

posters and its own web site (http://www.samsung.com)

Advertisement budget

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http://www.samsung.com/


According to a report from Advertising Age, Samsung is reviewing its estimated $600 million global advertising account. The U.S. account, which is reportedly worth $152 million, is currently handled by WPP Group's MindShare. The most recent data suggests that Samsung spent some $626 million on advertising worldwide in 2009. Publicis Group's Leo Burnett Worldwide currently handles creative advertising and branding.

Public Relations

Samsung is very keen in building a good relation with our clients as it is very essential to capture

large share in the market. These public relations are built by engaging in activities like

Sales Promotion

Our major sales promotion is by giving special discounts or coupons to our customers and retailers.

We arrange these kinds of discount activities’ on timely basis to keep an edge over our competitors.

Direct Marketing

We are sending our sales people to approach customers to build relations with them. Another

technique we are useing is sending occasional mails to the registered users on the web, thus

communicating ourselves directly with the most potential group of our market.

(http://www.samsung.com)

Conclusion:

Samsung for over 70 years has been dedicated to making better world through diverse businesses that today span advaced technology, semiconducters, skyscraper and plant construction, petrochemicals, fashion, medicine, finance, hotels, and more. Our flagship company, samsung electronics, leads the global market in high-tech electronics manufactering and digital media.

Through innovative, reliable products and services, talented people, a responsible approach to business and global citizenship and colaboration with our partners and customers, samsung is taking the world in imaginative new directions.

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http://www.samsung.com/