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China: The Introduction of Colour TV: Alex Dorward, Liam Mcgean Matthew Tomlinson, Yixi Hao
China: The Introduction of Colour TV: Alex Dorward, Liam Mcgean Matthew Tomlinson, Yixi Hao
Agenda
General Background Chinese Market Overview Marketing Mix SWOT Analysis PEST Analysis Marketing Strategy Proposals Proposed Marketing Mix -Yixi -Yixi -Matt -Liam -Alex -Alex -Matt
Samsung Philosophy: to devote the talent and technology to creating superior products and services that contribute to a better global society. Samsung Electronics vision for the new decade is:inspire the World, Create the future.
Marketing Mix
Product Place
SWOT Analysis
Strengths
Strong customer base in the USA Samsung has a much wider variety of TV sizes than other competing companies in China High TV quality index compared to competing firms Overall price position cheaper than competing firms
SWOT Analysis
Weaknesses
Limited market penetration Significantly less advertising than competing firms Little brand loyalty in China Lack of innovation in product development and design
SWOT Analysis
Opportunities
Overall market is expected to grow by 10% per year Medium and large colour TV markets are rapidly growing 171 million households without colour TVs in China Income levels in China are rapidly increasing Tariffs on colour TVs are decreasing Taxes are low Chinese colour TV market second largest to the United States
SWOT Analysis
Threats
The first companies are automatically recognized Samsung was experiencing increased competition in home market, as well as global market Japanese production bases are expected to increase from 19 to 30 within China Increasing labour costs in South Korea, where Samsung headquarters is based
PEST Analysis
Political
-Relations between SK and China have improved -Chinese tariffs are high -Chinese tariffs are on a decreasing slope -Taxes in China are low -Reform and Opening policy -Reduction in subsidies and export credits for big businesses in South Korea
PEST Analysis
Economic
-Chinese economy is growing -9.2% average GDP growth from 1994-2000 -Chinese average incomes are increasing -Additional disposable income due to housing subsidies in China -Increase in labour costs in South Korea -Removal of entry barriers in South Korea
PEST Analysis
Social
-Chinese prefer the first mover -Brand names are not easily taken to -Many Chinese do not report income, thus income levels are higher than recorded -A trend of urbanization -Less children per household
PEST Analysis
Technological
-Technology is becoming cheaper -Demand for larger TVs is increasing in China -Other forms of TV technology are emerging (LCD, Plasma, LED, 3D) -Potential for TV being watched online on laptops
-Target the Upper class by significantly promoting high quality, setting the price high thus establishing a brand name. Then reduce price and effectively target Upper Medium Class.
-Target the Upper class by significantly promoting high quality, setting the price high thus establishing a brand name. Then reduce price and effectively target Upper Medium Class.
-Eliminate the section of TVs that are 17 inches or smaller -Remain focused on current high quality levels Price
-$230 (after brand has been established) for the 20 TV -$550 (after brand has been established) for the 27 TV -These prices are comparable to Sharp
-Keep selling in urban areas -Sell in Department stores and Electronic stores
Promotion
-Initially significantly increase advertising to Panasonic levels to establish brand recognition -Once brand is recognized, reduce advertising to similar level as Sharp
Thank you
Any questions??