MARKETING ASSIGNMENT

By:
Chandradarshan Jain (P007)

SAMSUNG
Introduction
Samsung is one of the most successful companies in the world in terms of
electronics especially in smartphones & TV. Samsung is a Korean based
company. It was founded by Lee Byung-chul in 1938 as a trading company.
Now days, Samsung involves in many business in the world like electronic
technology,
semiconductors,
skyscraper
&
plant
construction,
petrochemical, fashion, medicine, finance, hotels, shipbuilding and more.
Samsung has more than 200 facilities and offices in 79 countries, and it is
7 most valuable brand in world. In May 2015, Market Cap of Samsung is
199.4 Billion dollar and No. of employees is 235999.
Journey of Samsung
The journey of Samsung was not great. It was full of challenges. It faces
many problems like separation of business into other groups, struggling in
terms of quality product, patent violation case against apple etc. After all
of the thing company is not only survived, it became No. 1 Company in
the world in smartphone business and still it is maintaining the success. It
proved itself as a great company.
In 1938, Lee Byung-chul founded Samsung sang hoe as a small trading
company with 40 employees. In late 1960s, Samsung group entered into
electronic business. In 1980, after acquiring Gumi- based Hanguk Jeonja,
entered into telecommunications hardware business. In 1987, after death
of Lee, Samsung again divided into 4 different business groups. One of his
son Lee Kun-hee was became second chairman of Samsung group.
In 1990, Samsung started to rise as an international corporation. In 1992,
Samsung became the largest producer of memory chips in world and
second in chipmaker after Intel. In 1995, it started to produce its first
liquid crystal display screen and after 10 year of it, Samsung became
world largest manufacturer of liquid crystal display panel. In 1997,
compared to other major Korean companies Samsung survived unharmed
from Asian financial crisis. In 2000, Samsung opened a computer
programming laboratory in Warsaw, Poland. In 2010, Samsung sold its
hard disk drive business to Seagate to more concentrate on smartphone
and TV business. In 2012, Samsung electronics became the worlds largest
mobile phone maker company.
Marketing Strategies:
Following are the Strategies which help Samsung to become a global
brands and top most company in the world.
1. Flexible policies:

Flexibility is major reason for the success of Samsung. After facing

separation of business group, Company is still surviving only because of
this. It is also spreading their business in other field of market. The reason
for success in smartphone business is also this. Company used many
operating systems like Bada, windows, android operating system for their
mobiles phones. Now it is turning towards new operating system Tizen. It
was not sticking to only one operating system as did by Nokia and
blackberry. It changes its operating system according to market and
consumer need. Samsung introduced Bada OS to compete with Nokia.
Later it moved to android and windows for compete with Apple. These
kinds of flexibility make them superior of smartphones.
2. Innovation and Design strategy:
Samsung design strategy involves the interplay between design and
business strategy, forming a systematic approach integrating holisticthinking, research methods used to inform business strategy and strategic
planning which provides a context for design. This approach has proved
useful for Samsung in a variety of strategic scenarios.
Samsung is always tried to introduce something new innovative product.
Samsung developed the worlds first 256M DRAM is developed. Samsung
introduce AMOLED type of unique display for smartphones. Samsung also
introduce concept of phablet with stylus e.g. Samsung galaxy note. It has
introduce curve TV, smart TV (Android TV) and 3D TV which give 3D
experience to user. Samsung launched their new smartphone with
secondary screen at edge of mobile e.g. Samsung galaxy s6 edge.
Samsung is also working on concept of bendable screen. Samsung
revealed latest TV called Serif which is single frame, one colour, and one
shape as capital I. Samsung also introduce innovation in marketing
called Value innovation Programme (VIP) center, which helps in creating
ideas for making gadgets more user friendly and trim inefficiencies in the
manufacturing and development process.
3. Hybrid management system:
Early Samsung was used Japanese management style but after
globalisation they adopted Hybrid management style which is
combination of Japanese and western management style. Samsungs
hybrid management system introduced a focus on innovation into a
company optimized for continuous process improvement.
4. Marketing mix:
In order to find out which strategy Samsung used to achieve its leading
position, take a look at its marketing mix. Marketing mix is blend of
product, pricing, promotion and distribution strategies.
a) Product:
These are the goods and services that a company offers to the target
market. Product is the main thing that the marketing energy must focus.
Samsung has a vast product portfolio. It have different products in
different categories. As if we talk about only electronic product, marketing
mix of Samsung have generally following core markets:
1) Home multimedia
a) TV = flat screen TV, curved TV, Plasma TV, Smart TV, HD TV etc.
b) Refrigerators = single door, double door
c) Washing machines = automatic, semiautomatic

d) Home Electronics = DVD players, Blu-ray players, home cinema

systems, set-top boxes
2) Personal Multimedia
a) Cameras and Camcorders = android camera, digital camera
b) IT = laptops, printers, Projectors, PC
3) Core components
a) Semiconductors = DRAM, SDRAM, flash memory, and hard drives etc.
4) Mobile multimedia
a) Mobile phones = Android OS phone, Essential phone, Tizen OS
phone, Tablet
The greater advantage of Samsung is width of product line and depth of
product line, thats provide more choices available for people. Vast
product line helps company to attract more people towards its brand.
Samsung has different variety of product with high quality have unique
and user friendly design.
b) Place:
Along with the launch of new products, Samsung also consolidated its
distribution system. Samsung had different state-level distribution offices
and a direct dealer interface. The direct dealer interface helped the
company to get quick feedback from dealers, and enabled it to launch
products according to consumer needs. Samsung setup own electronic
stores in the world. Samsung has its stores located & also its service
center at places where the customer can easily reach. At the stores, they
also provide experience of digital lifestyle. Its own branch stores allow
them to handle less storage & distribution of goods. Samsung also uses
variety of distribution channels. They distribute to various distributors and
telecommunication companies like mobile phones retailers, Internet
partners such as Amazon, Flipkart, Snapdeal etc. They also have Pop-up
Samsung retail stores.
c) Price:
After manufacturing innovative and cost effective phones worldwide for a
long time, Samsung has been able to learn that price is important factor to
stay on top of its industry. It has not allowed Apple Inc. to grow in markets
of developing countries like India and other Asian countries due to its
price policy. This is the results of manufacturing wide range of products
with different price range. Samsung sells product with a price thats worth
It have for range of product for lower class people to higher class people
like e.g. Essential phone for lower class at 1120 Rs e.g. Samsung Guru
E1200 and Galaxy note 5 for high class people. Again wide price range
allows satisfying need of different class of people.
d) Promotion:
Promotion is major part of strategy of Samsung. For Promotion, they used
lots of technique to get concentration of people. In 1997, Samsung
launched its first corporate advertising campaign which named as Nobel
Prize Series. In the advertisement, they showed a man (representing a
Nobel Prize Winner) who is passing from one scene to another, which
shows Samsung products transformation of old models into advanced
models. According to company sources, the idea was to convey the
message that Samsung uses Nobel Prize winners ideas for making its
products. Samsung also sponsored the summer and winter Olympics
games in which it distributed its product as gifts to all winners. It has

sponsorship deal with Chelsea Football Club shirt. They advertised their
products through newspaper by showing information and advantages of
products. They also advertise by sports like football, racing games etc.
they do advertise by sponsorship like sponsoring the different TV serial,
Olympic games. It also advertised through large hoardings or banner.
Their products are also been used in various movies which is also been
used as a marketing base. It also been done by TV advertisement. They
also promote brand by help of brand ambassador like in India Amir Khan
Etc. They also give their products as gift in sports events. These all
promotion strategy helps Samsung to attract people to buy their products
and positioning of product into mind of customers.
5. SWOT Analysis: SWOT analysis helped Samsung to know their
Strength, Weakness, Opportunity and Threats. The SWOT Analysis of
Samsung is as follows:
a) Strengths:
Existing knowledge and experience of electronics market allow introducing
innovating products. Strong global presence with strong brand and
customer base shows their popularity. Well diversified and differentiated
product line, to meet changing customer needs. Samsung electronics has
different business areas to cover customer electronic needs. Design with
an attractive styling that catching the eyes of customer, as the result of
the development of Samsungs new products that involve team of product
designers. Loyal customer & customer satisfaction & cost competitiveness
by mass Production. With an excellent research and development
capabilities, they spend a high percentage of revenue on R&D. It resulted
in global leadership in the television segment and mobile segment, and in
improving its position with their innovative products.
b) Weakness:
Customer perception of weak product attributes like durability and quality
because many time its products failed to show up-to mark performance.
Samsung continue launching their product with similar design. There are
no significance changes in design of high level and low level product
especially in mobiles phone. They are not pro-active coming out with
unique and leading model. They focus on mass market instead of niche
market.
c) Opportunities:
There are lots of opportunities available in market for Samsung to improve
more. There is Increasing on electronics consumer market because of
population growth etc. There is strong customer demand for innovative
products & value-added features because everyone wants to keep
themselves updated with new products. There is high % of Younger
population, which can be expanding a new market now and in the future.
d) Threats:
There is increase in competition in market. There are many new
competitors coming in the market which giving very tough competition
e.g. Xiomi, Micromax etc. There is Economic Slowdown and demands for
electronics product are weak. The sticking with old design may lose
customer to other companies.

All the above things are showing that how Samsung got success. How the
small trading business changed to global business and developed as a
brand.
6. Market segmentation strategies:
Samsung analysed the market and segmented them into different
segment like income of people (high class, middle class, and lower class),
occupation (business, employee, worker, and student), Life style,
Personality of people. It has same class of product with different features
for low, middle and high class people e.g. Galaxy y for middle level and
Galaxy S 6 for high class people whose income is high. It has Galaxy Note
Series for business class people.
Summary
Samsung is established itself as a global brand. Early it was only small
company but now a day it deals with lots of businesses. It has very
challenging history. Due to strong commitment towards quality and
innovative products it became leader of electronics market. Samsung has
various quality points like flexible policies, Management system,
marketing strategy etc. made them successful company in the world.