STRATEGIC MARKETING MANAGEMENT

PREPARED BY: DARSHIL CHIRANTAN SHAH

Table of Contents
INTRODUCTION ............................................................................................................................................. 2 MARKETING STRATEGY ................................................................................................................................. 2 SWOT ANALYSIS ............................................................................................................................................ 3 Weakness ................................................................................................................................................. 4 Opportunity ............................................................................................................................................. 4 Threats ..................................................................................................................................................... 5 THE MARKETING MIX .................................................................................................................................... 5 Product ..................................................................................................................................................... 6 Price .......................................................................................................................................................... 6 Placement................................................................................................................................................. 6 Promotion ................................................................................................................................................ 7 CONCLUSION................................................................................................................................................. 7 REFERENCES .................................................................................................................................................. 8

STRATEGIC MARKETING MANAGEMENT

PREPARED BY: DARSHIL CHIRANTAN SHAH

INTRODUCTION
Samsung electronics Industry Corporation established in 1969, as a division of Samsung group, and the name of corporation changed to the current name which Samsung electronics in 1984. The Samsung Group specializing in electronics originated in Asia. It started as an electronics consumer goods manufacturing concern in Korea. Mainly it manufactures and exports electronics products, which include color TV, electronic calculator, electronic watch, electronic cash registers, as well as electronic home appliances such as refrigerators, air conditioners, washing machines, an also telecommunication devices. According to (Edwards 2003), the organization grew and opened subsidiaries worldwide. The manufacturing concern launched different categories of products over the years. Edwards stated that the company shifted its focus from the selling concept to the marketing concept. A few years ago, the company embarked on strategic branding policies and brand management. Now millions of Samsung electronic products are manufactured and sold every day and its products are seen in almost every house around the world. Samsung electronics has one of the best inventory management systems, supply and distribution chain in the world and its products are unique and durable with dedicated and efficient work force. In addition, its research and development department is also the best in the electronic industry.

MARKETING STRATEGY
Over a decade ago, 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, synonymous with cheap, brand less products sold to other companies and resold stamped with brand names at a higher price. However, 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, design and innovation. With that, the company discarded its other brands and put all its resources behind the Samsung name. Reinventing itself, Samsung produced a line of first-rate, top quality TVs, cell phones and appliances, to reveal the companys superb technological
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STRATEGIC MARKETING MANAGEMENT

PREPARED BY: DARSHIL CHIRANTAN SHAH

advancements. The perception of Samsung was no longer the cheap brand. By elevating the quality of its products above its competitors, it is now in the ranks of Sony and Panasonic, two Japanese large electronic big names. Cell phones are now a must have and are carried by people all around the world. Years ago, people would feel naked without wearing their wristwatch, but now it is the cell phone and TVs, have moved from just the family room to every room in the house. Head of Samsungs USA marketing and consumer unit, (Peter Weedfald), stated, We wanted the brand in users presence 24/7. Today, 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 Matsushitaparent company of Panasonic and JVC. In order to be a powerhouse electronic company, Samsung needed to change its brand image. When Seoul, Korea was host for the 1988 summer Olympic Games the time was ripe for Samsung to display its products by associating its company with this international sporting event. Samsung became the official sponsor of wireless technology for the Olympic Games, just as Omega was and has been the official timekeeper. With over a thousand athletes from 200 countries competing, plus tens of thousands of workers, and hundreds of millions of attendees and viewers from all over the world, this certainly amplified the companys image. In 1999, American-Korean, Erick Kim, marketing miracle man, started working with Samsung and eventually became the head of Samsungs global marketing department. Within a few years, Samsungs cell phones and flat-panel TVs were consumer favorites because Kim focused on collaborating with Best Buy, a top U.S. retailer of electronic goods.

SWOT ANALYSIS Strengths

Samsung enjoys the widest range of product portfolio which includes Mobile phone, Tablet, TV/Audio/Video, Camera, camcorder, Home appliance, PCs, printers, memory cards and other accessories.
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PREPARED BY: DARSHIL CHIRANTAN SHAH

Samsung holds significant market share in most of the product categories Samsung is NO.2 in terms of market share in mobiles, it captured Nokias market share by superior innovation in smart phones.

Samsung is the best in terms of design features and technology. It was the first to introduced dual screen mobiles, LCD color phone, first phone with polyphonic ringtones, phones with rotating lens, thinnest and lightest note pad.

Samsung enjoys the first mover advantage in terms of introducing advance features in LCD, refrigerator, Air conditioner etc. It introduced the worlds smallest MP3 player and Indias first 17 TFT-LCD-TV monitor.

Samsung took advantage of the growing economy of Asian market by setting up manufacturing plant in India there by reducing logistics and supply chain costs.

Samsungs brand value has increased by 80% in the past three years.

Weakness

Samsung Mobile launched a series of Smart phones recently, which led to reduction of sales volume.

The demand for LCD panels is expected to decline in the future. Still Nokia is considered, the most preferred product in India in terms of ease of use, reliability and resale value.

Chinese products focus on economies of scale and dump into Indian market for lesser cost. This results in reduction of sales.

Samsung is a hardware leader but has too much of dependence for software from other parties.

Online stores which sell a wide range of products are giving better deals as they dont incur cost in distribution channel.

Opportunity

Samsung is planning to make the air-condition product category more strong with unique technology called Triple protection proposition.

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PREPARED BY: DARSHIL CHIRANTAN SHAH

Samsung was Indias official Olympic partner for the 2012 London Olympic and recently launched Olympic Ratna Program. Which will result enhance brand awareness and increase the sales all over the world.

Samsung Mobile and Home appliance has plans of launching Customized products especially for Indian market. This will improve the market share in rural market.

The youth population is growing and mobile phone sales are expected to increase due to lesser call rates and more available functions in the phone.

Its financial position is strong and there is a scope of entering into unrelated diversification.

Threats

Samsung has wide variety of product lines; failure of one product line will have impact on the other and will result in brand dilution.

The competitors like Nokia are focused only in one segment, to make that particular market more competitive.

Asia being a potential market, countries like India competition will be high as entry of foreign players is likely high. Foreign players like Haier have already started gaining market share in India in home appliances.

Threat from Chinese products, which are cheap and can spoil the market. Economic recession or financial downturn can also be one of the threats to the company.

THE MARKETING MIX

Marketing mix is an essential notion in current marketing and rationally it referred to as the set of convenient tools that the organization combines to create the response it wants in the target market, so it consists of everything the firm can do to influence the demand for its product (Kotler and Armstrong, 2004). Marketing is about projecting the correct product at the correct price in the accurate way to the accurate customers. This is how value is added. Getting a product in to the

STRATEGIC MARKETING MANAGEMENT

PREPARED BY: DARSHIL CHIRANTAN SHAH

market involves balancing numerous significant ingredients, i.e. the 4Ps of the Marketing Mix: Product, Price, Promotion and Place.

Product
The Next generation 3D TV is the new innovative product from Samsung. In simpler terms, the product includes all features of innovation to provide true entertainment to its customers. The 3D televisions were voiced as the biggest innovation in the television history with combination of highest performance and stylish design. With the Samsung 3D TV the customers will have the prospect of enjoying TV programs in 3D sitting at home and viewing will never be the same as the audience will be able to enjoy and experience the feel of their favorite stars of sports and film to leap off their TV in to the living room right before them. Samsung proposes a series of 3D-capable TVs, including the LED 7000/8000/9000 Series, LCD 750 Series and the Plasma 7000/8000 Series (www.samsung.com, 2010)

Price
Pricing is principally fixing a specific price for a product or service offered. In simple words, (Kotler and Armstrong, 2004) explain the perception of price to obtain the product. Fixing a price is not something simple. Normally in general law people argue that a small price will draw additional customers. The argument is not true. Because customers not only look for price alone. The customers expect a proper service and value for the money that he pays. They act in response to value so a lesser price does not essentially signify stretched sales if the product is not fulfilling the expectation of the customers (Lazer, 1971). The price for the 3D brands starts from 1600 to 2000. The price is not so competent.

Placement
Samsung unveiled its prestigious 3D TV brands globally in the major countries like US, UK, Australia, China, etc. The product is launched in all the major stores like John

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Lewis, Currys in the US and UK and other major distributors for Samsung all over the world etc.

Promotion
The promotion takes the form of a new Starter Kit that offers U.S. consumers the chance to enjoy 3D movies in their own living rooms, rather than having to head to nearest cinema to check out the eye-popping action. Samsung utilized the FIFA Football World Cup to publicize several value-added bundles along with its new 3D TV ranges. Fresh buyers were offered bundled 3D movies, home theatre systems and Blu-ray players. Apart from this Bonus 3D bundle, customers are also entitled to obtain a Bonus 3D TV starter kit that includes 3D Blu-ray Disc of Dream Works Animation SKGs hit movie, Monsters vs. Aliens, and An additional two sets of battery powered 3D glasses. Apart from these bundled promotional offers, Samsung has launched a strong advertisement campaign for its range of 3D TVs. The TV advertisement campaign is worth of 8 Million that runs over 3 months. Apart from the TV advertisement, it has also launched 7 million print media advertisements (marketingweek.co.uk, 2010)

CONCLUSION
The main idea for the Marketing Plan is to ensure success of Samsung in the coming future. In the digital era, products will be distinguished by brand names rather than by its functions or quality. For the coming years, they will focus on generating qualitative and quantitative growth as they enlarge the control in the premium market as well as in the emerging markets. To strengthen the market supremacy and increase brand value, they have to make a high quality and customer oriented products, which meets consumers expectations, and adopt holistic marketing strategy in its place of individual marketing strategy.

STRATEGIC MARKETING MANAGEMENT

PREPARED BY: DARSHIL CHIRANTAN SHAH

REFERENCES
Samsung Website (online), Cited 4th March, 2013, Available from URL:

http://www.samsung.com/us/aboutsamsung/ Samsung Essays (online), Cited 4th March, 2013, Available from URL:

http://www.ukessays.com/essays/marketing/samsung-electronics-industry-corporationmarketing-essay.php Samsung Marketing Plan (online), Cited 5th March, 2013, Available from URL: https://ws.elance.com/file/Samsung_Marketing_Plan.pdf?crypted=Y3R4JTNEcG9ydGZ vbGlvJTI2ZmlkJTNENDEzNDkzMzElMjZyaWQlM0QtMSUyNnBpZCUzRDI0NDY1NjY= Samsung Marketing Plan (online), Cited 5th March, 2013, Available from URL: http://www.americanessays.com/study-aids/free-essays/marketing/marketing-plan-forsamsung.php Samsung Marketing Slides (online), Cited 5th March, 2013, Available from URL: http://www.slideshare.net/MKTGatHPU/samsung-5672631 Samsung Essays (online), Cited 8th March, 2013, Available from URL:

http://www.ukessays.com/essays/marketing/strategic-analysis-and-marketing-strategyfor-samsung-marketing-essay.php Samsung Marketing Plan (online), Cited 9th March, 2013, Available from URL: http://www.scribd.com/doc/48355873/Samsung-Marketing-Plan Samsung Article (online), Cited 11th March, 2013, Available from URL:

http://3dtvsets.co.uk/samsung-electronics-starts-3d-tv-war/ Samsung Branding (online), Cited 13th March, 2013, Available from URL:

http://www.marketingweek.co.uk/brands/samsung/