International Marketing Strategy Positions Samsung as a Global Leader in Electronics
Dr. Thomas Kohler
For over seventy years, Samsung has been dedicated to making a better world through diverse businesses that today span advanced technology, semiconductors, skyscraper and plant construction, petrochemicals, fashion, medicine, finance, hotels, and more. Their flagship company, Samsung Electronics, leads the global market in high -tech electronics manufacturing and digital media. Through innovative, reliable products and services, talented people; a responsible approach to business and global citizenship; and collaboration with out partners and customers, Samsung is taking the world in imaginative new directions. samsung.com
and washing machines. refrigerators. to stay ahead of its competitors. adding interactive systems to further enhance consumer experience. Samsung Electronics celebrated its 40th anniversary in 2009 and has developed innovative products.
. By 1981. In 1988 it merged with Samsung Semiconductor & Communications and started what would be a most profitable global marketing campaign by sponsoring the Olympic Games. Samsung had produced over 10 million black and white TVs. Samsung Electronics was founded in South Korea. Samsung introduced its revolutionary line of three-dimensional TVs (3DTV) at a New York event.Executive Summary
In 1969. Earlier this year In March 2010. Forty years later. The company originally manufactured consumer electronic appliances such as TVs. calculators. air conditioners. partnered with Dreamworks animation.
The perception of Samsung was no longer the ―cheap brand. Cell phones are now a ―must have‖ and are carried by people all around the world. Samsung Electronics is the most publicly visible quality brand name with consumer products and is the third largest electronics maker in the world behind number one Sony and number two Matsushita—parent company of Panasonic. Head of Samsung’s USA marketing and consumer unit. top quality TVs. Peter Weedfald. Reinventing itself. this Korean consumer electronics manufacturer realized that the only way to build a better known identity and rival giants such as Sony and Panasonic was to focus on building a more upscale image through better quality. to reveal the company's superb technological advancements. However. Quasar. Samsung Electronics was a little known low-end consumer electronics company which products were sold under brand names no one even remembers like Tantus and Yepp. two Japanese large electronic big names.
*original equipment manufactured
. and JVC. synonymous with ―cheap‖ and OEM*.Marketing Strategy
Over a decade ago.‖ By elevating the quality of its products above its competitors. design. cell phones and appliances. and innovation. Technics. With that. "We wanted the brand in users' presence 24/7. Years ago people would feel ―naked‖ without wearing their wristwatch. Samsung produced a line of first-rate. but now it is the cell phone and TVs have moved from just the family room to every room in the house. brand LESS products sold to other companies and resold stamped with brand names at a higher price. it is now in the ranks of Sony and Panasonic. stated.‖ Today. the company discarded its other brands and put all its resources behind the Samsung name.
this certainly amplified the company’s image. In 1999. Samsung’s cell phones and flatpanel TVs were consumer favorites because Kim focused on partnering with Best Buy. Erick Kim. Within a few years.S. When Seoul.
Samsung became the official sponsor of wireless technology for the Olympic Games.Marketing Strategy
Make Your Presence Known 24/7
In order to be a powerhouse electronic company. Korea was host for the 1988 Summer Olympic Games the time was ripe for Samsung to showcase its products by associating its company with this international sporting event.com
. Samsung needed to change its brand image. With over a thousand athletes from 200 or more countries competing. retailer of electronic goods. business. and hundreds of millions of attendees and viewers.goldsea. a top U. just as Omega was and has been the official timekeeper. plus tens of thousands of workers.‖ started working with Samsung and eventually became the head of Samsung’s global marketing department. ―marketing miracle man. American-Korean.
Marketers report a number of reasons to sponsor events:
Identify with a particular target market or lifestyle Increase awareness of company or product name Create or reinforce perceptions of key brand image Enhance corporate image Create experiences and evoke feelings Express commitment to the community or on social issues Entertain key clients or reward key employees Permit merchandising or promotional opportunities
Kotler & Keller
Since 1932 the brand has defined sports timekeeping through its accurate timing of 24 Olympic Games and its sponsorship continues until the year 2020.
omegawatches.Omega has had a long and close relationship with the Olympic Games as official timekeeper.com
Worldwide Olympic Partner in the wireless communications equipment category.com
Samsung’s involvement with the Olympic Games began in 1988. the company then became a member of The Olympic Partner (TOP). In 1997. Through its advanced wireless telecommunication technology and products. continuing its contribution to the Olympic Movement for five consecutive Olympic Games. real-time information service in support of the world's largest sporting event. vancouver2010. Samsung is recognized for providing the Games with crucial. when it became a local sponsor for the Seoul 1988 Olympic Summer Games. Samsung is proud to carry on its Olympic partnership through the 2016 Olympic Games.
In the above graph.Olympic Sponsors
Social media measurement programs are custom and unique for each company depending on their business objectives.com
cymfony. Monitoring brands is a measurement project that is reported to the client. a research company that provides expert marketing analysis tracks the shares of Olympic sponsorship.
Samsung Creating Experiences
One can only imagine Samsung’s next partner—Mercedes Benz of DaimlerAG or maybe even Rolls Royce!
smartphone info: amazon. Touchscreen.International Version with No Warranty (Bronze).Luxury C0-Branding
Samsung’s Armani Smartphone In the fall of 2009. Giorgio Armani and Samsung
Features: Samsung Giorgio Armani B7620 Unlocked Windows Mobile Smartphone Quad-Band GSM with Full QWERTY keyboard. List price: $999.com
image: google. 5MP camera. It was designed by the world renowned Italian fashion designer to the rich and famous. Samsung Electronics and Giorgio Armani released their premium smartphone.com
.99 Amazon Price: $849.99
A luxury smartphone that looks like a piece of jewelry is very eye catching. GPS navigation and Wi-Fi .
laser printers. CD and DVD Drives. MP3 players. SDRAM. projectors Mobile devices: mobile phones. Computing products: monitors. home cinema systems. set-top boxes. air conditioners. LED displays. washing machines. DVD players. plasma displays.Key Products
Samsung Electronics manufactures products in a number of categories:
Semiconductor: DRAM. microwaves. digital cameras. OLED
displays Home electronics: TVs. flash memory Hard drives Digital display: LCD displays.
wikipedia. fax machines Home appliances: refrigerators. ovens. vacuum cleaners. laptops. Blu-ray players. UMPCs. camcorders.com
.Evolution of the TV
circa 1980s – color TV
circa 1970s – black and white TV circa 1990s – color projection TV
Cinema-quality 3D experience 3-Dimensional TVs add new depth and dimension to create larger-than-life experiences. samsung. 3D Active Glasses sync up with the 3D TV to produce 3D images that virtually leap off the screen. Favorite shows can even be transformed to 3D in real time for the ultimate "reality" TV.
1 spot as the world's largest technology company. Samsung Electronics' handset division overtook American rival Motorola. Business Week also ranked Samsung as 20th in innovation. Samsung surpassed Japanese rival Sony for the first time to become the world's largest and most popular consumer electronics brand as measured by Interbrand.com
. Samsung overtook Siemens of Germany and Hewlett-Packard of the USA with a revenue of $117. In 2009. In 2006. 2nd in the electronics industry.
In 2005.wikipedia. making it the world's second-largest mobile phone maker.4 billion to take the No. Samsung surpassed Japanese rival Sony for the first time to become the world's largest and most popular consumer electronics brand as measured by Interbrand. Business Week rated Samsung as 20th on its list of global brands. BrandFinance ranked the company as the number 1 global brand in electronics. In January 2007. In 2005.
Samsung's U. flat-panel television shipments rose to 6.4 percent market share down from 18.6 million units in 2009.5 percent in 2008.Samsung held on to the top spot in the broader category of flat-panel TVs. up 22.com
eetimes.4 million units in 2008. thanks in part to its strength in plasma as well as LCD-based TVs. giving the Korean giant a 18.6 percent from 5.
quality and wealth by partnering with Giorgio Armani. creating an elliptical logo symbolizing the world moving through space and writing ―Samsung‖ in English to expand its global presence.Strategy Analysis
Positioning – is the act of designing the company’s
offering and image to occupy a distinctive place in the minds of the target market.
Samsung changed its image. Targeted certain type of sports-minded consumers on an international level by sponsoring the Olympic Games and other sporting events in various countries. Targeted consumers attracted to prestige.
Samsung refrigerators are top of the line and comparable to companies whose main products are kitchen applicances like KitchenAid. They produce the whole gamut of products related to electronics. LED. and Jenn-Air. and LCD television screens. Maytag.Strategy Analysis
Competitive advantage is a company’s ability to
perform in one or more ways that competitors cannot or will not match.
. Samsung’s newest product is the 3DTV that one revolutionary step above the plasma.
Samsung manufactures everything from air conditioners to cell phones to hard disk drives to vacuum cleaners.
to experience viewing it is an unforgettable feeling. the Giorgio Armani – Samsung Slide is the most gorgeous smartphone produced.
. Consumers are ready for the 3-D effect after having seen many hit movies in 3-D.Strategy Analysis
Product Life-Cycle – a company’s positioning and
differentiation strategy must change as the product. For fashion-minded consumers. Samsung’s Galaxy S which is the first smartphone to qualify for point-to-point Wi-Fi communications. Its bronze color will match any outfit in any occasion. Though critics are saying that the 3DTV is just a novelty or fad. and competitors change.
Samsung comes out with a new cell phone every few months that is the latest rave. market.
they had to stay one-step ahead of the game. By analyzing their competitors in the electronics market.
. With emerging competitors. the two Japanese electronic kings. appealing to the consumer’s senses through functionality and looks. Samsung put more into research and development to produce high quality and eye-catching television sets and major home appliances.Strategy Analysis
Competition – a good way to start to deal with it is
through creatively designed and well-executed marketing programs.
Samsung knew who their competitors were: Sony and Panasonic.
if not surpassing its opponent’s product. price. Samsung’s 3DTV is ―a technological leader that's packed with almost every imaginable cutting-edge advancement. but they continue to try and edge out its competitors with innovative products. More people buy Samsung TVs than Sony because of the price difference.‖ (consumersearch.Strategy Analysis
Market-Challenger Strategy – Challengers set high
aspirations. and distribution. advertising. Samsung seems to attack the market leader head on.
Samsung may not be the industry leader for all their products. matching.com)
. with the exception of the cell phone and the TV.
It’s unfortunate he didn’t live long enough to experience Samsung’s LED TV and now its innovative 3DTV. his life.
. Samsung has created a revolutionary mode of entertainment that consumers will be able to experience in their own homes—3D television. Giorgio Armani.Analysis
More than a decade ago my uncle bought the cheapest VHS recorder/player on the market—it was a Samsung.1 global market share for more than a dozen of their innovative products. It’s marketing strategy proved successful by sponsoring the Olympic Games and other sporting events. At that time it was considered the ―poor man’s Sony.
Samsung has positioned itself as one of the world’s most recognized leaders not only in cell phones.
Their unwavering commitment to being the world's best and pledge to be ―better than Sony‖ has given them the No. as well as partnering with electronics giant. My uncle was retired and TV was his hobby.‖ He told me that it lasted longer than any other brand he bought . Best Buy and haute couture designer. Samsung Electronics has proven that its name synonymous with quality and progress. his passion. but in TVs and appliances. The digital age is here and Samsung is taking every opportunity to advance in this technology to be a competitive force. As we end the first decade of the 21st century.
A Decade at a Glance
Vancouver 2010.html. Bloomberg Business Week.com/us/aboutsamsung/corporateprofile/history.com/more-2010-information/about-vanoc/sponsors-andpartners/vancouver-2010-sponsors/worldwide-olympic-partners/
. LG".and made them stick. http://blogs.S.com/magazine/content/05_31/b3945098. EE Times News and Analysis.com/article/SB10001424052702303390704575575870793175254.asp.wsj. Managing Mass Communications.html?KEYWORDS=samsung "Top 100 Global Brands Scoreboard".samsung. Kevin Lane.samsung.Bibliography
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