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Samsung's product range in India included CTVs, audio and video products, information technology products, mobile phones and home appliances (Refer Exhibit I). Its product range covered all the categories in the consumer electronics and home appliances. Analysts felt that the wide product range of Samsung was one of main reasons for its success in the Indian market. Samsung positioned itself on the technology platform...
Pricing also seemed to have played a significant role in Samsung's success...
Along with the launch of new products, Samsung also consolidated its distribution system. Samsung had 18 state-level distribution offices and a direct dealer interface. The direct dealer interface helped the company get quick feedback from dealers, and enabled it to launch products according to consumer needs...
Advertising and Sales Promotion
In 1995, when Samsung entered India, it realized that Indian consumers were not familiar with the company. So, in order to establish itself in the Indian consumers' mind, Samsung launched corporate advertisements highlighting its technologically superior goods...
We are investing aggressively in marketing to transform our company to be truly market driven and to establish our Samsung brand as the most trusted and preferred brand in the market." Jong Yong Yun, vice-chairman & CEO, Samsung Electronics, in February 2003.
The "Team Samsung India First" Campaign
In August 2002, India's leading consumer electronics player, Samsung India Electronics Ltd. (Samsung) announced the signing on of seven celebrity cricketers 'Team Samsung', as its brand ambassadors. In doing this, it aimed to cash in on the popularity of cricket in India. However, the company's hopes of celebrity endorsement received a setback due to anti-ambush marketing clauses2, arising from ICC's agreement with some other companies. In place of the ads featuring the cricketers, Samsung launched its - 'Team Samsung. India First' campaign all over the country in December 2002.
Said Arun Mahajan of Mudra, Samsung's ad agency, "The focus has been to evolve concepts to do with the players, to promote the cause of cricket and patriotism.'' The copy of the print ad read, 'With Team Samsung, It's India First.''
Samsung - The Making of a Global Brand
The Making of a Global Brand
In 1993, as a first step in its globalization drive, Samsung acquired a new corporate identity. It changed its logo and that of the group. In the new logo, the words Samsung Electronics were written in white color on a blue color background to represent stability, reliability and warmth. The words Samsung Electronics were written in English so that they would be easy to read and remember worldwide. The logo was shaped elliptical representing a moving world - symbolizing advancement and change...
Samsung realized that to become a global brand, it had to change the perceptions of consumers who felt that it was an OEM player and associated its products with low technology. Generally, consumers in developed markets (such as the US) opted for Samsung when they could not afford brands such as Sony and Panasonic. To change consumer perceptions, Samsung decided to focus on product design and launch innovative products...
Consolidating Presence in Different Markets
To change its brand image, Samsung decided to associate itself with global sport events. In 1998, when Seoul hosted the Olympics, Samsung became the official sponsor of the wireless technology to the games. This move helped it boost its image worldwide. In 1999, Erick Kim (Kim), a Korean American working with IBM, took over as the marketing head of Samsung. He focused on capturing the US retail market for consumer electronic goods, such as TVs, washing machines and microwave ovens, through partnerships with US retailing giants. Samsung entered into a partnership with Best Buy one of the top US retailers. Best Buy executives conducted customer research to analyze consumer-buying behavior...
Advertising and Promotional Strategies
In 1997, Samsung launched its first corporate advertising campaign - Nobel Prize Series. This ad was aired in nine languages across Europe, the Middle East, South America and CIS countries. The advertisement showed a man (representing a Nobel Prize Laureate) passing from one scene to another. As the man passes through different scenes, Samsung products transform into more advanced models. According to company sources, the idea was to convey the message that Samsung uses Nobel Prize Laureates' ideas for making its products...
Samsung Mobiles: Smartphone strategy for the Indian market
May 30, 2011
Samsung Mobile’s line-up of smartphones and tablets has helped the handset maker rally a significant share in a market that is largely dominated by Nokia. Samsung sold 12.6 million smartphones in the quarter ended March 2011, boosting its global smartphone market share by 7.4 percentage points from the previous year to 12.2 per cent. It now ranks fourth after Nokia, Apple and Research in Motion (RIM). Samsung is only 1.2 percentage points behind RIM and is expected to grab the number three spot in 2011 if it maintains its current growth rate. Advance orders for Samsung’s Galaxy S2, which was released in April 2011, surpassed 3 million units within a week of the launch, posing a threat even to Apple. At this rate, its sales are expected to top 14 million units in the current quarter. FOCUS ON INDIA India is the fastest growing telecom market in the world and presents an attractive opportunity for handset makers like Samsung. As per a GFK Nielson report, the
Indian mobile handset market was pegged at around 155 million units in 2010. With the country adding 20 million mobile customers every month, the mobile device market is expected to grow at over 16 per cent year-on-year. Driven by the launch of 3G services, the smartphone market alone is likely to grow at over 50 per cent per annum for the next two years. The Korean handset maker’s smartphone strategy has clicked well in the Indian handset space. The company opened its smartphone account in India in June 2010 with the launch of its Galaxy S and Wave models, and now has over 12 smartphones on almost all the popular platforms including Android, Windows and its internally developed software, Bada. Samsung had a share of 10-15 per cent in the smartphone market as of January 2011, and is aiming to notch it up to 40 per cent by end-2011. According to company officials, in 2011, Samsung’s mobile handset division will be driven by two key factors – touchscreens and smartphones. In this segment, the company has also launched its tablet PCs. Thanks to the hugely positive response that the Tab has received across India, Samsung is targeting a 50 per cent share of the Indian tablet market in 2011. While tablet PCs are still a niche segment in the country, if Samsung positions its products well, it could well succeed in meeting its targets. A key area of focus for Samsung will be the enterprise segment, which is showing an increased demand for such devices. In all, Samsung has over 50 handset models in India, ranging from entry-level to midrange and high-end smartphones. According to a GFK Nielsen report, the company’s overall market share stands at around 23 per cent of the Indian mobile market in value terms.
MANUFACTURING AND R&D
Samsung has two manufacturing units in India, in Chennai and Noida, and produces around a million units of mobiles per month. While the company currently manufactures only its entry-level Guru series at these units, it plans to start producing smartphones as well in India going forward. The company has also increased its focus on applications to provide users with a wide range of applications across various platforms like Android, Windows and Samsung’s own Bada. The company is reportedly working with around 800 application developers in the country to develop customised applications for the Indian consumer. However, offering innovative products in the global and Indian markets warrants a strong focus on R&D and Samsung is not cutting corners. Over 9 per cent of the company’s global expenditure is spent on R&D every year. The company has a team of 3,000-odd engineers across its two R&D facilities in India, customising its smartphones and tablet PCs, fine-tuning its mobile operating system, creating applications, etc. Samsung has two software development centres in the country – the Samsung India Software Centre (SISC) in Noida, Uttar Pradesh, and Samsung Electronics India Software Operations (SISO) in Bangalore. The latter is already working on more advanced technologies like 4G. In fact, the mobile communication team at SISO is at
up from 9. with prices ranging from Rs 8. Samsung has 17 handsets with 3G applications in India. Sony has the strongest brand awareness. analysts felt that it would be difficult for Samsung to beat Sony so soon as Samsung was regarded as an OEM player till the mid-1990s.990 to Rs 29. beating Siemens and Ericsson. LG. HTML5 and Android OS for tablets and dolphin browsers in smartphones. while Samsung was ranked 34th with a brand value of $8. "We want to beat Sony. 3G device sales are expected to account for 69 per cent of total sales. the sales of 3G-enabled handsets comprised 16.4%. THE ROAD AHEAD Samsung sees the increasing demand for 3G-enabled handsets as an opportunity to grow in 2011. Samsung emerged as the world's number three player in the mobile market. With an array of 3G devices launched for the Indian consumers.2 per cent in 2009. while Samsung's rank had moved up from 42 in 2001.7 per cent of the industry’s total sales in 2010. Sweden and Finland. However. At present. Sony's had slipped down from 20th in 2001..290. By 2011-13. However. The Bangalore R&D centre has collaborated on global projects and developed a dongle for 4G mobiles that has been launched in Norway. for instance.advanced stages of developing devices on technology platforms including LTE. Samsung declared that it would beat Sony in the consumer electronics market by 2005. Kim said. In the third quarter of 2002.1 billion. Its new mid-priced Optimus One handset has done well and LG has announced its target to double its global smartphone shipments to 15 million units in 2011. with a marketshare of 36. Sony was ranked 21st with an estimated brand value of $13. Samsung has created a market demand for 3G smartphones and is also offering users access to content and downloadable application software.. ." However. is lining up several new smartphones.90 billion. the company needs to watch out for competition. we want to be stronger than Sony by 2005. According to data from Gartner. Beating Sony? In 2001. In 2002.
semiconductor market. The 21st century will be a time where the Internet. telecommunications and consumer electronics technology to develop innovative multi-capable products and create powerful networks that will empower the user for anytime.000 people in some 50 countries worldwide. In the new digital convergence age. is ready to lead in this Age as it will use its strengths in semiconductor. wireless communications. Part I presents the introduction and brief History of Samsung. It is also ranked number 4 by sales in the semiconductor industry and number 6 by units in the mobile phone industry. Weaknesses. marketing and design. it has diversified its financial structure and is considered the number 1 company in market share for memory semiconductor chips. Few companies have the business structure to form this network in-house. According to our analysis. Samsung intends to earn world leadership and secure overwhelming competitive strength. Looking ahead. core competitiveness will be determined by how companies develop networks from components to digital products. TFT LCDs. Part II explains the main Strengths. innovative changes and new styles in Flatron and specially the quality awards that it has won since last two years continuously are positive points for Samsung. Our report will surely be fruitful for the marketing strategy of Samsung. Introduction Established in 1969. Samsung Electronics is positioned at the top of the DRAM. All the things have been discussed according to Samsung’s presence Globally and particularly in accordance to Pakistan. Information & Communications Business and Home Appliances Business. Samsung’s main strengths are its Global Business Network. sales.We are highlighting the main points on Samsung Company. Part IV presents the Marketing Mix of the Company. Samsung's vision is to become a leading company of the digital convergence revolution. Samsung Electronics has emerged as a major player in the world electronics industry. Part V gives the Observations and Recommendations. Samsung Electronics is ranked 131st on the Global Fortune 500 List Samsung is best known for the success it has had in the memory semiconductor industry. Brand Name Credibility. anywhere communications and a higher quality of life. Promotional activities can play a key role in capturing the market share for Samsung. manufacturing. Semiconductor Business. CDMA mobile phones and computer monitors. Samsung’s Sales and Service centers are in 4 different countries. with a vast line of products. Various forms of convergence technology that link conventional stand-alone appliances through networks will be developed. however. It can easily raise its image by its quality products and promotional advertisements. TFT-LCDs. networked systems and contents will be united. MPR2 technology. which is preceded by a brief abstract of its contents. From 1992. It is synchronizing product development. Samsung’s slogan “everyone’s invited” describes its broad target market strategy. Part III shows the Target Market of Samsung. It employs over 66. The company consists of 4 main business units: the Digital Media Business. . Since then. This report highlights four major points and is further sub-divided into parts. Opportunities and Threats of the Company. with vertical sort of distribution system. Samsung. Samsung can use its strengths as threats for other companies.
fashion and technology is stronger than ever and where corporate sponsorship of this kind. Additionally fashion victims and trend targets find a little endorsement from a corporate sponsor further boosts confidence and builds trust in the brand. It no longer matters what you wear. but it also illustrates the fashion focused and technologically trendy Samsung look. as corporate sponsorships of artistic endeavors are still relatively new. not only enhances the credibility of this highly regarded fashion week. Additionally. The winning pair will secure a one-year contract with Samsung Mobile to appear in selected above and below-the-line campaigns for the brand and. Samsung marketing manager – Mobile Phones. rather the importance lies in who you wear and what brands accessorize and compete your look. a fully integrated media campaign is set to roll out over the next 6 months to launch the . it’s easy to mistake for the most widely used accessory among shoppers worldwide! Director of Sanlam South African Fashion Week. Yet. they will win a contract with Next Models in New York to the value of US$75 000 each. “Today sees more technology than ever forming a part of our daily lives which transcends into an incorporation of these functional items into the milieu of style. It is the bond between technology and fashion that Samsung Mobile is entrenching through the Samsung Mobile Icône Modéle competition. The Giorgio-Armani Samsung cellphone certainly was a hit at the launch of the Samsung Mobile Iĉone Modéle on 13 March 2008. to provide international exposure for the pair on this corporate advertising platform. ensuring you are toujours a la mode. Marketing studies have shown that brands marketing to a more refined audience have ample opportunity. The size of a credit card. are slowly developing towards communicating to a niche market. Samsung radiates technological elegance and stylish panache. says. Apart from the mobile phone motivated artwork. “A designer gadget completes your look just as much as a pair of shoes or a great handbag. In turn they demonstrate an appreciation of corporate involvement in events and projects in this sphere.” The Samsung Mobile brand wishes to communicate with this new breed of fashionforward and technologically-savvy consumer who are socially liberal and sophisticated and have proven to be particularly brand loyal.” Samsung Mobile is employing a diverse range of media to communicate the passion and vigor behind this brand.CORPORATE SPONSORSHIP GETS FASHIONABLE The competition is a nationwide model search seeking a male and female Samsung Mobile who will open Sanlam South African Fashion Week (SSAFW) in August this year.” says Justin Hume. Samsung Mobile’s fusion with Sanlam South African Fashion Week. Lucilla Booyzen. Samsung Mobile’s joint sponsorship with SSAFW is especially innovative. Corporate sponsorships from renowned corporate brands make style and artistic endeavors possible and accessible. making the brand more popular. “The partnership between Samsung Mobile and SSAFW comes at a time when the movement towards the fusion of art. attracting a hefty purchasing public. joining forces with SSAFW compliments and enhances this techno – fashion centered brand.
or other symbols instead of Hangul or hanja. MNET and DStv channels will also be involved in an above-the-line campaign to ensure that each and every stone is turned to find the first male and female Samsung Mobile Icône Modéle. This article contains Korean text. boxes. you may see question marks.competition to each and every eligible and eager girl and guy in South Africa. Samsung Mobile is utilizing outdoor media as well as a print campaign that includes Cosmopolitan magazine and a radio campaign with national youth station 5FM and a number of campus community stations. In total over R5 million is being spent to ensure the right models are found. CEO of Samsung Life Insurance) Key people . the free encyclopedia Jump to: navigation. you’re never without it and it’s a highly visual object no matter what you’re wearing. somewhat like shoes used to be in ancient times when the length of the toe of your shoes communicated your rank in society. Without proper rendering support. South Korea Worldwide Lee Kun Hee (Former Chairman and CEO) Lee Soo-bin (Acting president.” Samsung Group From Wikipedia. particularly in South African society where cell phones are societal status symbols. “Your mobile phone is an extension of your arm. The fusion between fashion and technology is almost seamless. An online micro-site has been built for national access and a viral element will accompany this. search Not to be confused with Samseong Station. Samsung Group 삼성 그룹 Type Founded Founder(s) Headquarters Area served Public (Korean: 삼성 그룹) 1938 Lee Byung-chul Samsung Town. Seoul. In closing to his speech at the launch Hume summed up the partnership by saying. Selected SABC.
Samsung.7 billion (2008) ▼ US$ 252. Seoul. the world's second largest shipbuilder and Samsung C&T. retail and entertainment industries. Samsung Group accounts for more than 20% of South Korea's total exports and is the leader in many domestic industries. The company's strong influence in South Korea is visible throughout the nation. the world's largest electronics company. Samsung has been the world's most popular consumer electronics brand since 2005 and is the best known South Korean brand in the world.4 billion in 2008 and is South Korea's largest chaebol.5 billion (2008) ▼ US$ 90.4 billion (2008) ▼ US$ 10. which has been referred to as the "Republic of Samsung".000 (2008) Samsung Electronics Samsung Heavy Industries Samsung C&T etc. a major global construction company. South Korea. The Samsung Group is composed of numerous international affiliated businesses. It is the world's largest conglomerate by revenue with an annual revenue of US$173. chemical. most of them united under the Samsung brand including Samsung Electronics. Samsung Heavy Industries. The meaning of the Korean word Samsung is "tristar" or "three stars".5 billion (2008) 276.Industry Conglomerate Electronics Shipbuilder Financial Chemical Retail Entertainment Flash memory Aviation Optical storage Mobile phones Smartphones Hard disk drive ▼ US$ 173. such as the financial.com Products Revenue Net income Total assets Total equity Employees Subsidiaries Website The Samsung Group (Korean: 삼성 그룹) is a multinational conglomerate corporation headquartered in Samsung Town. .
A large number of South Korean firms. Hansol Group. Currently helmed by Lee Soo-bin. Many major South Korean corporations such as CJ Corporation. Lee Byung-Chull. the third son of the founder. notably MP3 player manufacturer iriver and search engine portal Naver. they are no longer officially Samsung affiliates. View of the Samsung logo inside the Time Warner Center in New York City. formerly by chairman Lee KunHee. Though they are still controlled by ex-Chairman Lee Kun-hee's relatives. were established by ex-Samsung employees. Shinsegae Group and Joong-Ang Ilbo daily newspaper were previously part of the Samsung Group. CEO of Samsung Life Insurance. .1 Samsung sponsor of the Olympics 5 See also 6 Notes and references 7 External links BACKGROUND Samsung is the world's leading consumer electronics brand and one of the top twenty global brands. Some leading companies in South Korea.Contents • • • • • • • • 1 Background 2 History 3 Market share 4 Sports sponsorship 4. it has been run by generations of one of the world's wealthiest families.
Samsung Group would have been the 34th largest economy in the world if ranked. Lee Byung-Chull founded Samsung. being a major driving force behind the Miracle on the Han River. South Korean President Park Chung-hee’s regime during the 1960s and 1970s would prove a boon for Samsung. In 2006. Lee borrowed heavily from foreign interests and launched a radio and television station. media and culture. its revenue as large as some countries' total GDP. and retail. In 1953.particularly those in the electronics industry. The company started moving into businesses such as insurance. Samsung Group accounts for more than 20% of South Korea's total exports and in many domestic industries. Seoul. a small trading company with forty employees located in Daegu. Samsung Group also owns the Sungkyunkwan University. many businesses today use its international success as a role model. During the war. The company has a powerful influence on the country's economic development. Lee started a sugar refinery—South Korea’s first manufacturing facility after the Korean War. The company prospered until the Communist invasion in 1950 when he was forced to leave Seoul and start over in Busan. In 1938. larger than that of Argentina. In the early 1970s. “To make up for a lack of technological expertise in South Korea. Park placed great importance on industrialization. securities. Samsung's businesses flourished and its assets grew twenty-fold. Samsung Group is the sole monopoly dominating a single market. protecting them from competition and assisting them financially. Park banned several foreign companies from selling consumer electronics in South Korea in order to protect Samsung from foreign competition and nurture an electronics manufacturing sector that was in its infancy. Samsung was one of these companies. and focused his economic development strategy on a handful of large domestic conglomerates. History Samsung Group headquarters at Samsung Town. This has led to continued allegations of price fixing and monopolistic practices. the South Korean . are dependent on Samsung for the supply of vital components or raw materials such as semiconductor chips or LCD panels. The company diversified into many areas and Lee sought to establish Samsung as an industry leader in a wide range of enterprises. a major private university in South Korea. politics.
Samsung Motor.government effectively required foreign telecommunications equipment manufacturers to hand over advanced semiconductor technology in return for access to the Korean market”. Its first product was a black-and-white television set. Samsung conspired with Hynix Semiconductor. Samsung Electronics (SEC) has since come to dominate the group and the worldwide semiconductor business. a $5 billion venture was sold to Renault at a significant loss. and is the world's second-largest chipmaker after Intel (see Worldwide Top 20 Semiconductor Market Share Ranking Year by Year). Samsung survived the Asian financial crisis of 1997-98 relatively unharmed. Hyundai Motor 20. the result of merger between then three domestic major Aerospace divisions of Samsung Aerospace. Elpida Memory . Doosan(formerly known as Daewoo Heavy Industries) 20.. In 1982. sold off ten of Samsung Group's subsidiaries. and selling a wide range of appliances and electronic products throughout the world”. Such policies eventually lead to Samsung manufacturing the first Korean dynamic random access memory chips. it built another $25 million facility in England. Samsung Techwin 20. and merged other operations to concentrate on three industries: electronics. Daewoo Heavy Industries and Hyundai Space and Aircraft Company (HYSA). “By the 1980s Samsung was manufacturing. shipping. From 1999 to 2002.54%. Samsung's brand strength has greatly improved in the last few years. Samsung manufactured a range of aircraft from 1980 to 1990s. downsized the company. Taipei 101 in Taiwan and the Burj Khalifa in United Arab Emirates (founded by Callum Cuirtis). Ltd. The company was founded in 1999 as Korea Aerospace Industries(KAI). Korea Aerospace Industries(KAI) . In 1993 and in order to change the strategy from the imitating costleader to the role of a differentiator. Lee Byung-chull’s successor. such as Samsung Electronics Devices Co.. in 1980s. and grouped them together under Samsung Electronics Co. investments that were pivotal in pushing the company to the forefront of the global electronics industry. Additionally. it built a $25 million plant in New York.54%). However. Samsung's construction branch was awarded a contract to build one of the two Petronas Towers in Malaysia. the Samsung Group reacquired the Sungkyunkwan University foundation. Samsung Electronics invested heavily in research and development. The 1990s saw Samsung rise as an international corporation. Not only did it acquire a number of businesses abroad. and chemicals. and Samsung Semiconductor & Telecommunications Co. Most importantly. Compared to other major Korean companies.. In 1996. which is the tallest structure ever constructed.largest shareholders as of 2009 (Korea Development Bank 30.. even surpassing worldwide leader Intel in investments for the 2005 fiscal year. Samsung Electro-Mechanics Co. in 1984. Infineon Technologies. In the late 1980s and early 1990s. but also began leading the way in certain electronic components. Samsung Group later formed several electronics-related divisions. Lee Kun-hee. engineering.54%. Samsung Corning Co. it built a television assembly plant in Portugal.. and in 1987.53%. Samsung became the largest producer of memory chips in the world in 1992.
is incomparable to competition with its ultrathin screen. flash memory. It is now the world's leading manufacturer of liquid crystal displays. 1. which saw record profits and revenue in 2004 and 2005. Samsung Electronics expanded production dramatically to become the world's largest manufacturer of DRAM chips.(Hitachi and NEC) and Micron Technology to fix the prices of DRAM chips sold to American computer makers. Behind. S-LCD was established as a joint venture between Samsung and Sony in order to provide a stable supply of LCD panels for both manufacturers. The first 3D TV was launched in March of 2010. One of the most popular new “toys” in the market today. and encouraging innovation. In 2005 Samsung agreed to plead guilty and to pay a $300 million fine. the 9000 series TV. Samsung Electronics. it built its first liquid-crystal display screen. Considered a strong competitor by its rivals. and has already had a major impact on the market. which had not invested in LCDs. which is why their technology is so far ahead of all leading competitors. S-LCD is owned by Samsung and Sony 51% to 49% respectively and operates its factories and facilities in Tangjung. Ten years later. Samsung grew to be the world's largest manufacturer of liquid-crystal display panels. Samsung dominated the market. and is now ranked #19 in the world overall. overtook Sony as one of the world's most popular consumer electronics brands.0 Executive Summery Samsung Electronics has proven to the business world that they are one of the most prestigious technology companies in the industry. we still have very detailed strategies and tactics that we believe will give us an increased competitive advantage over our competition. With the release earlier this year. Samsung’s product. measuring only 0. The company’s main emphasis the past couple years has been on integration. Although Samsung is dominating the 3D market. In 1995. South Korea. optical storage drives and it aims to double sales and become the top manufacturer of 20 products globally by 2010.3 inches in width. Sony. we plan to enter the 3D video gaming market with . In 2006. Samsung is the world's second largest by volume producer of cell phones with a leading market share in the North America and Western Europe. In the future. The 9000 series also comes with a full color spectrum that makes for an incredible viewing experience. controlling nearly 90% of the total share. is the unbelievable 3D TV. the second-largest criminal antitrust fine in the US history. With more technology advancements than our market can handle at this point and time. union. contacted Samsung to cooperate. Nokia. Samsung has paved the way for the future in electronics. Samsung is always preparing for the next big item to hit the market.
and Employees. We will put as much prominence as possible in the sleek design and the one of a kind ultra-thin panel. Samsung and the 9000 series 3D TV. will hold the top spot in the television market for years to come. Of course.2 Current Strategy: Samsung’s current strategy in the 3D television market is to seize a dominant market share while the market is being pioneered and to maintain the majority market . This group is a large part of the 3D TV market right now. Create the future.” and “Creative Solutions. along with a gaming system. 2. with a new and growing family. only available in the Samsung 9000 series.a partnership with Microsoft. set forth through their vision statement.” It also promotes new value for Samsung Electronics’ core networks: Industry.1 Samsung Electronics’ Vision Statement: “Inspire the world. This is a group that consists of young people who grasp onto new technology quickly. Caucasian males. is to contribute to a better world and a richer experience for all. and is considered the motto of the decade for the industry leading organization. By having an effective ad campaign. than other aged males. This vision statement is a part of SE’s “Vision 2020” plan. we will be able to catch the eye of many different target groups. This will give us access to all of Microsoft’s gaming technology. Studies show that this category is more likely to buy the TV. Samsung’s commitment. 3D TV without glasses. Our major target groups are men around the ages of mid twenties to late thirties. throughout our journey through this market. in which we will combine with our quality of sound and viewing stations to create the ultimate gaming experience. If the discussed strategies and tactics are successfully carried out. 2. When this market starts to decline. we will continue to provide the best ad campaigns for the public so that they will never forget our product. This new vision captures Samsung’s dedication to inspiring its communities by leveraging Samsung’s three crucial strengths: “New Technology. We are also targeting “Cube Tubers”.” “Innovative Products. Samsung has the technology ready for the next big wave of televisions.” These six words coined the vision statement for Samsung Electronics (SE) in early 2010 in correspondence with the release of its first 3D television. Partners.0 Situation Analysis 2.
Samsung has positioned themselves throughout the past five years to dominate the next generation of 3D-TV market. as of October 2010. the product is still considered to be in the introduction stage of the product life cycle. as they launched a 12. innovating and pioneering new markets while developing break through products at competitive prices.share throughout the stages of the 3D television life cycle. This current strategy can also be seen in Samsung’s advertising efforts. 3D content industry leading. Samsung’s dedication to innovation in the flatpanel TV market has resulted in their ability to deliver the breakthrough products and superior values that will keep them at the forefront of the global TV market. Create the Future. Samsung realizes that the growth of the 3D television market is dependent on the volume of 3D content available. Samsung’s previous strategies have thrived in the constantly evolving television market. acknowledging the lack of immediate growth in the market. This is demonstrated by the progressive approach to the market that Samsung has taken. Samsung has reorganized their corporation to encourage cross-pollination and innovation. Currently. and await the arrival of appealing 3D content to compliment their technology. The current strategy being implemented is merely preparation for the growth potential in the 3D television market. This segment of the current strategy was addressed by Samsung’s recent partnerships with. . Samsung’s current strategy also includes the expectation that their dominance and innovation in the High-Definition Television (HDTV) market will carry over as the 3D content availability increases. partners Technicolor and DreamWorks Pictures. While Samsung introduced its new slogan.S. With the recent release of 3D TVs into the market in early 2010.25 million dollar marketing campaign in February in the UK. Due to the market’s dependability on other industries to produce 3D content. This current strategy has been effective. "Inspire the world. the aggressive early launch plan has assisted Samsung in acquiring an 88% share of the 3D television market in the U. Samsung has incorporated an effective plan to accelerate the availability of the content." the company's strongest emphasis in the last two years has been on convergence and integration. the strategy is established as progressive. considering that. meaning that Samsung is withholding the latest innovations fro the 3D-TV market. as they introduce the newest segment in the television market. Samsung has entered into a transitional phase. and innovating to prepare for the potential growth in the market.
1 market share for LCD screens. and music from the Internet. 1 market share of Flat Panel TVs (FPTV) the fourth year running. elegant liquid-crystal bezel styling. greenhorn to the market. are key components in the Samsung Business Portfolio. In 2008. The TV business holds the top position in the current market. Although they lost the No. Samsung led the global TV market for the third consecutive year as they continued to intrigue customers with outstanding picture quality. is a flagship product . 1 Market Share ranking in the High Definition television (HDTV) market. and advanced interactive and connectivity options that allow customers to enjoy pictures. In 2009. Samsung pioneered advanced 3D technology. Samsung achieved their first No. 2009 also brought success for Samsung’s brand-recognition campaign as the Samsung brand entered Fortune’s Top Ten list of the World’s Top Global Brands. LED TVs. reinforcing the organization’s leadership within the industry. Samsung introduced the newest line of HDTV that was certain to be a global hit. Such achievements firmly establish Samsung’s leadership both in popular demand and in producing topquality products. and dramatically lower power consumption. They performed well enough that year to earn the 27th spot on the “World’s Most Admired Company” list by Fortune Magazine. The LED-TV lineup Samsung offered was the next advancement in LCD technology. The TV business and the Mobile Phone business. Samsung was the first company in the world to market a full HD-3D LED-TV. and a 3D Plasma-TV for 2008. The result of this new market segment Samsung created was a full-featured TV with superior picture quality. their own home network. or USB devices. the Light Emitting Diode Television (LED-TV). replacing the conventional cold-cathode fluorescent lamp backlighting with eco-friendly LED backlighting. 1 market share of Liquid Crystal Display (LCD) televisions. Although Samsung is a world leader in the television market. maintaining the No. 2007 brought Samsung the sixth consecutive year with the No. 2005 proved Samsung to be a step ahead of the competition. Vizio took the top spot. In March 2010. movies. Samsung sold 30 million flat-screen television sets. Worldwide. In 2005. which has shown explosive growth in the latest market.Samsung began their dominance of the digital television market in 2005 and retained their top position until 2009 when. stylish ultra slim enclosures. the product mix has more depth than simply home entertainment accessories and cell phones. Samsung forged a new market by launching their elegant and revolutionary. Light Emitting Diode (LED) television. launching a 3D DLP TV in 2007.
of which include LED-TV. Samsung has been charting the future of television through their 3D TV releases. Samsung seeks to sustain leadership through constant innovation and development in new technology. With the release of Series 7000. Mitsubishi Electronics. assuring a very busy year for Samsung. such as 3D. Samsung will eventually see significant . however. and Panasonic. Samsung has garnered high media and consumer praise for perfectly reproducing the range of full HD 3D images and delivering “true-to-life” and “easy-on-the-eyes” picture quality. look to undercut the quality aspect of Samsung’s product by offering a cheaper. lower quality. LCD TVs and Monitors have also maintained top positions in their respective categories. With the 3D TV market segment being introduced. from which they transferred 300 engineers to the TV business unit. several companies have identified it as the next big trend in the home entertainment market and aim to capitalize on the potential growth by entering the market. LG Electronics (LG). This in house access to human capital has allowed Samsung to maintain the top position in the marketplace. 2010 has undoubtedly been the breakthrough year for the revolutionary 3D TV technology. With competitors simply following the trend of Samsung’s breakthrough innovations in the market. and keeping the TV business unit highly productive and competitive. alternative product more accessible to mass market. This transfer relocated the top performing engineering team in the company. Samsung also inhibits a world leading Semiconductor business unit. LCD-TV and Plasma-TV as well as 3D Blu-ray players. 1 market share ranking. Currently.within the TV business. providing the employees with healthy performance bonuses every year. Companies like Vizio. none of Samsung’s competitors can offer a product to rival the picture quality of the Samsung.” These strategic efforts strengthen the premium brand image Samsung looks to uphold and assists them in seizing and maintaining the No. Samsung’s current strategy is to enrich the television experience and the power of the products by maintaining the superior picture quality. saying that Samsung is a step above the competitors would be an understatement. and Series 9000 (LED-TV) televisions. 3D home-theater systems and total 3D solutions that combine 3D active glass with 3D content. such as expanded Internet-TV features and the launch of the Samsung application marketplace. Vizio. Series 8000. “Samsung Apps. Some of the top competitors are Sony. SE has also began to enrich a deepened value to customers by continued communications and by differentiated products.
creates new products. This employee retention indicates stability and accelerates growth within the organization. Samsung has attracted the world’s most talented managers as they work continuously evolving the company’s culture to better support their employees. Samsung’s current strategy.competition in the 3D TV market. An early adapter is a consumer who has a very quick rate of diffusion. While Samsung maintains quality as a major selling point. One Strategy Analytics Survey identified “Cube Tubers” as the most likely consumers of products available in the 3D TV market. by phone. Understanding the potential growth the market will see. Samsung is a very customer oriented organization. At Samsung. Vizio is a market share leader but an innovative follower. or in stores. Vizio. to being good at computer games.3 Consumer Profile: With the development of 3D TV technology. 2.” are twice as likely to . which could eventually lead to them attaining complete 3D TV market dominance. The environment of the Samsung organization breeds innovation and creativity. Samsung has taken innovation to the next level by developing several different 3D products. and improves the everyday life of their customers. can be seen as very effective due to the role they play in the market. the rate at which the market accepts a new product or product idea. offering product support online. collaboration and excellence are the hallmarks of leadership. Their greatest competition may come from their most recent prominent competitor. in a market where consumers will be forced to pay for the new technology and will appreciate the quality due provided by Samsung. “Cube Tubers. creativity. Vizio’s focus is to appeal to the mass market by lowering their quality standards so they can sell the product for less. which in turn will negatively impact Vizio. are usually affluent young men who have redefined cool from having fast muscle cars. Most individuals in top positions have spent well over thirty years with the organization. allowing Samsung to develop products and that will move them a step closer to there goal of maintaining dominance of the 3D market. These early adopters to new technology. while launching several new advertising campaigns to increase awareness of the new technology. Samsung fosters innovative ideas that advance technology. taking a transitional approach to the 3D TV market. Samsung’s target market is easily identified as the Early Adapter. The organizations leadership consists of veterans of the Samsung brand.
Samsung and other companies will try to appeal to the children with the intention of captivating the market of families with children between ages two and fourteen. Samsung announced partnerships with Technicolor and DreamWorks Pictures. With these partnerships. Most consumers of 3D TV products will buy them via ecommerce with fewer buys being made in retail stores. Samsung.” The individuals Samsung looks to target. When defining the psychographic segmentation of the consumers of this market. or cheap installation and deliveries. These locations must be considered the prime market areas due to the likelihood of the availability of 3D content in urban areas rather than away from cities in the more technologically constrained rural areas. and Samsung has taken steps to accelerate the rate at which this 3D content arrives. These consumers represent a rather small eight-ten percent of the overall population. two industry leading 3D content providers. Most e-commerce suppliers offer free. Along with the “Cube Tubers.express interest in receiving 3D TV programming at home. Chief Managing Officer. One common factor of all 3D product consumers is their likely geographic location. This combination of content and product demonstrated the innovative practices at work . offering the consumers the full package for the ultimate at home entertainment experience. mid twenties to late thirties Caucasian males. educated and married. value the home entertainment experience as prior generations would have valued an evening at the theater. Sue Shim. Understanding that children are more likely to show interest in the development of 3D technology. Supplying more convenience to the consumer than the average retail store. Samsung’s 3D TV product usage will increase as the content becomes more available. Samsung developed packages of products for the market incorporating 3D content from DreamWorks Pictures and Samsung’s 3D TV products.” the broader target market tends to be families with young children. defined the target consumer as someone “immersed in the TV experience. They seem to be the most likely candidates to show interest in buying the newest generation of the television market. They are most likely young. With the majority of the sales in the 3D TV market e-commerce. and an individual who is a thought or opinion leader amongst peers. Samsung will still be selling a significant share in high-end electronics stores such as Best Buy (US) and HH Gregg (US). In March 2010. The target audience for 3D TVs will mostly be found in or near bigger cities. an early adopter.
The transition from standard definition to HDTV is still growing and many questioned Samsung for the release of 3D TV while new market segments are still growing in the HDTV market. These forecasts also predict the total share of the market that the 3D industry will capture out of the entire television market. For comparative product analysis. Market forecasts project sporting events in 3D will attract consumers. we will use the most popular selling class of 3D television sets with the most beneficial and unique features.within Samsung. predicting the potential room for growth in the 3D TV market share available. 3. The importance of customer service to encourage the growth of 3D TV industry is infinite. By 2014. Acknowledging that. 1 market share in the 3D TV market as it was pioneered. one must understand that many market forecasts have been done. forecasts project over 83 million 3D TV sets being in homes representing 31% of the entire TV market. and helped them achieve their goal of the No. Samsung has established 2014 as the next big year of releasing the next generation of 3D products such as 3D sets that do not require the use of shutter glasses. The only deterrents from the traditional patterns of purchase in the TV market are the decline in the current global economy and proximity of the latest transition in the television market to HDTV. as their most prolific quarter of the year. Samsung has established a plan to interact more with the target consumers and expose them to the products available. the potential growth for the market is opened to a new segment of 3D entertainment.2 million 3D TVs will be sold in 2010 (the launch of the market) representing three percent of the entire TV market. the fourth quarter. and with the release of content such as ESPN’s new 3D channel. eliminating another inconvenience factor the current market bears. offering fans the opportunity for exposure. however they have identified the period between Thanksgiving and New Years. Samsung took the initiative to begin demoing their available 3D TV products on site at sporting events at kiosks. Samsung has studied these numbers and implemented release plans and pricing strategies based on these market forecasts. The seasonality of sales for Samsung is crucial. The 55” inch class is . The results of these forecasts are as follows: 6.0 Competitive Analysis Before comparing the products available from Samsung and its competitors. the sports fan.
considered the most popular model of 3D TVs. Sony does not come up first. as most competitors have had no choice but to follow the trends of Samsung. the remote control. Bravia boasts similar features. however the differences can be seen in the quality and the price.999. as does it price. For most competitors the model chosen is similar to that of Samsung. $5. However their customer service falls short of SE according to consumer reports. and it is also a Smart TV with web-connected Samsung Apps.31” design (the size of a pencil). The Sony product for the 3D TV market falls under its Bravia class. This model was released in 2010 at a Consumer Electronics Show and won the award for “Most Brilliant Innovation” for the industry that year. . cinema-quality 3D and groundbreaking picture quality for 2D content. The 9000 series boasts an ultra slim . 999. it comes with a premium accessory package. who sell Sony TV’s. and sells for $2. When typing into Google. usually in the top three until recently being bumped down to fifth recently in the FPTV market. The quality and design of this product goes unmatched. The remote control for this set is a touch screen handheld panel that allows the consumer to stream live television to the remote even if you leave the room so you never miss a moment of your favorite entertainment. Their videos offer different features about different products such as their TV’s. 3. This products slim design is accompanied by one of the most consumer conscious accessories introduced in the television market.1 Sony Corporation Sony is a Japanese company that uses web advertising as a dominant feature. Best Buy was one of the leaders. however. They offer different videos and PDF documents on their websites to help customers understand their business. It is a large organization focused on improving current products and using other organization’s innovations to take a share of the market. Sony seemingly finds itself in the television market as it finds itself in every other aspect of the entertainment market segments ranging from film production to MP3 players and gaming consoles. Sony finds itself in the top five of the market share of the previous trends of the television market. For Samsung the model was the 9000 Series LED 55” inch class 3D HDTV.
said in an August 30 interview with Bloomberg. Mitsubishi Inc.3. is another competitor finding its way to the top three market shares in the TV market.” he said. TV business. and lack of resources available to consumers. With plasma however. "No one can keep up" with price cuts by Samsung in the world’s biggest TV market. another Japanese company. Mitsubishi has continued to use and perfect DLP technology. Mitsubishi’s difference is in its picture quality. Panasonic. Panasonic’s premier 3D product differs in the backlight composition. opting to use plasma for the opening of the 3D market. They Aim to release their 3D TVs mainly through private company sales rather than in nationally acclaimed retail stores like most brands. is also a Japanese company with a Very broad product mix. After Samsung initiated an unexpected price war with Panasonic at the opening of the 3D market.3 Panasonic Inc. Concluding that Mitsubishi’s broad range of products. created by Texas Instruments. the .1 Green Innovation Company in the Electronics Industry by 2018. Yoshiiku Miyata. Panasonic’s product for the comparative analysis is the 55” inch class Viera.350. Mitsubishi is the most recent follower of trends by recently adopting the Smart TV idea and integrating Internet connectivity into the unit. the 100th anniversary of their founding. 3. they announced an expectancy to miss sales targets for the first year. comes the looming fear of having to replace the backlight in the television as is necessary for plasma. LCD and LED 3D TVs. although DLP offers great picture quality the technology has many drawbacks such as bulb replacement and interior cleaning to maintain picture quality that hinder consumers from buying their product. and a marketing theory that anything is possible. a managing executive officer at Osaka-based Panasonic's. while Samsung has moved on from DLP and has released some beautiful Plasma.2 Mitsubishi Inc. equates to poor customer service practices. priced at $3. However. "It’s become unclear whether we can reach our target" of selling one million 3-D sets in the year to March 31. Demonstrating Samsung’s sound knowledge of good pricing strategies keeping competitors on edge. This late adaptation and constant need for upkeep to maintain picture quality and absence of variations in the products available in the 3D market limit Mitsubishi to a small market share. Panasonic aims to be the No.
LG Electronics is a Korean company. LG is eyeing 25 percent of the global 3D TV market this year.970. said it aims to strengthen its presence in the burgeoning 3D TV market. Vizio has developed cost efficient production methods that allow them to undermine the quality of the products slightly and the price for what they sell at . Initially LG’s objective was to create a footprint among the sizable middle class. told a press conference. 3. That compares with LG's 15 percent market share target for LCD TVs. Using the best of innovations other companies have had.000 sales based on an annual market forecast of 3. the first time in six years anyone but Samsung held the coveted ranking.4 LG Electronics Inc. The pricing strategy of Panasonic is in question as well. 3. "Considering the downward trend of (our) market share in the general TV market.. and other than its aggressive pricing. but its claim to success is in its ability to follow technology and market trends. Vizio also found itself in the 3D TV market soon after other brands such as Samsung pioneered the way.8 million units. or 25 million units. LG’s premium product in the 3D lineup is the 55” inch class Infinia model. which amounts to 950." Kwon Hee-won. priced at $3. One major drawback with this product is the label of being a 3D-Ready TV. LED projection full 3D HDTV. This mission allowed Vizio to take the No.LED backlight Samsung offers is far superior to the picture quality of a plasma television. there was little to distinguish it from other consumer durable companies. seeking to grab a share larger than its target for the liquid-crystal display (LCD) TV market. ranking as the world's second-largest maker of flat-screen TVs. Vizio is a market share leader in the industry. LG had focused on the mass market.5 Vizio Inc. Vizio’s vision is to be the industry leader in consumer electronics by consistently delivering the latest technologies at the most affordable price. it is our goal to lift our market share in 3D TV. declining to provide a specific sales target. which will lead the next TV market. in comparison to a 3D-Enabled TV like that of Samsung’s 3D TV product line. 1 market share in LCD televisions in 2009. This factor and the passive approach LG has in the television market will limit the shares they will get in this early phase of the 3D TV product life cycle. considering the plasma technology is much cheaper to produce yet the price is similar to that of LED backlight set. LG Electronics Inc. executive vice president and head of LG's LCD TV business unit.
significantly. LCD and Plasma markets. SE demonstrates its aggressive approach to accelerating the diffusion rate of the 3D market by offering over a third of their LED products as 3D enabled devices. The robust market position coupled with strong brand equity imparts significant competitive edge to the company regarding scale and recognition.1 Strength A. which is the thinnest 3D TV available at . .0 SWOT Analysis 4. this product sells for $2. Samsung is a strong corporate brand known for its quality products and advanced technology use. Samsung is also working to lead the market by offering a range of top quality award winning products developed specifically for the 3D market. Samsung’s LED TV product line has earned the prestige of the best picture quality available in the market by Consumer Electronics Reports. Vizio’s product for comparison is the 55” inch class Full Array TruLED LCD 3D HDTV. ← B. which in turn augers well for the company’s expansion plans. High Quality Innovative Products . and established a new television business unit. The brand prestige that Samsung looks to carry over from the LED. Hoping to captivate the interests of more target consumers.Brand Prestige ← Samsung’s 3D TV market products lead the industry as they have pioneered the launch of the new market segment in early 2010. Samsung focuses more towards the innovations and tries to keep improving products to attract more consumers and capture more market share. Availability of Resources ← Samsung recently transferred 300 engineers from their very prominent semiconductor business unit within the organization. 4. The relocation of these engineers has allowed SE to develop market products far beyond the technology and innovative capacity of competitors. Those very products are also leading the way in innovation in the way of style and appeal to consumers. hoping consumers will easily identify the brand and associate it with it high quality products from an organization dedicated to providing market leading products.499. as Samsung released the 9000 Series.31 inches.
the target consumer is someone who more than likely played or still plays video games.300 billion ($7 billion) in 2010. Further. by staying a step ahead of the competition selling them technology SE has been using for some time. The company devotes significant resources and attention to develop consumer-preferred products with innovative and distinctive features. giving SE the ability to dictate the technology used by its competitors. 4. With control over competitors technology SE can assure there dominance of the 3D TV market share. up from KRW7.2 Weaknesses A. C.0% of its revenue in R&D activities over 2008 and 2009. Its R&D network spans six centers in Korea and 18 more in nine other countries. Japan and China. one could infer Sony’s association with gaming consoles like PlayStation as a competitive advantage over Samsung. The company plans to enhance the spending to nearly KRW9. The company has deployed nearly 42. Companies like Sony and LG. SE’s biggest competitors in the 3D market currently buy their semiconductors used for production of there 3D TVs from Samsung.SE’s semiconductor business unit from which they transferred those engineers. Constant Focus on R&D ← Samsung Electronic has been regularly strengthening its research and developments (R&D) function. including the US. the UK. however with this being the only aspect of the 3D market that Samsung does not . India. is successful enough for competitors in the television market to buy the technology from SE to use it in their own products. Israel. These R&D activities helped the company to launch various new products in the recent past. Sony’s PlayStation is the first to launch 3D gaming content. It is evident from the fact that. As we define our market. These efforts in R&D have allowed for SE to develop technologies for products such as a 3D TV that doesn’t require glasses.600 billion ($6 billion) in 2009. Lack of Association with 3D Gaming Content Unlike SE’s competitor Sony. the company owns several research centers across the world. Acknowledging that the 3D gaming segment will account for a substantial market share. Samsung does not have a direct association with content provider for 3D gaming. the company invested approximately 5.000 people in the research activities across its 42 research facilities around the world. Russia. which has been developed but Samsung is waiting to develop the market and for competitors to catch up.
For instance. Toshiba is also in the forefront of innovations in this product category with several new technologies under its credit. The agreement enabled the Samsung Electronics to introduce advanced features in its products. Strategic alliances that enhance the company’s product offerings Samsung Electronics has entered into strategic agreements with some of the well-known companies of the world in the recent past. As for the agreement. The company has been able to form strategic alliances with some globally renowned . but to the average financially conscious TV buyer our product may lose appeal when compared to the cheaper alternatives in the market. By signing the cross licensing patent agreement with Toshiba. Earlier in 2008. being the TVs that do not require the use of shutter glasses. the company entered into partnership agreement with Netflix. With the target consumer established economically as the upper level of the middle class and all levels of the upper class currently. during June 2009. considering the quality of the product is unmatched. To the consumer who is concerned more with quality than price the impact is none.3 Opportunities A. resulting in improved customer offerings. The impact on customers this weakness represents is minimal. B.currently play a role in. the target will have to expand to incorporate all members of the middle class. High Price Understanding SE prides itself on having very high quality products. To maintain a dominant market share as the market for 3D TVs expands. one can infer that SE can justifiably charge the highest price for those renowned products. it is identified as a weakness as it could allow a competitor to gain ground in SE’s market share. the world's largest online movie rental service. Samsung Electronics continues to have access to important NAND flash process technology as well as multi level cell flash memory design IP relevant for future NAND flash generations. High Quality. the companies would offer consumers the ability to instantly stream movies and TV episodes from the Netflix Web site directly to their living rooms through Samsung's BD-P2500 and BD-P2550 Blu-ray disc players. SE’s establish target consumer will have to expand. The timeframe for this target to be expanded would be 2014 as the next trend in 3D TVs is introduced. the company signed a patent cross license agreement with Toshiba for semiconductor technologies. Toshiba is the leading player in the NAND flash memory market with thousands of patens under its name. 4.
However. and the sooner the content could be produced. A partnership with a company like Microsoft could have an impact on the market greatly. Alliances such as these will not only help the company tap newer avenues of business but also help the company develop newer landscapes for revenue growth. which will be begin during the Christmas buying season of 2010. which could potentially represent a significant share of the market. 4.players who are strong in there respective domains. This would increase brand recognition of Samsung by associating it with products such as Microsoft’s XBOX 360 and their other products to come. Partnership to access 3D gaming content Establishing a partnership with a company in the video game industry would be ideal to increase the amount of 3D gaming content. Although this segment of the market is currently minimal. with our target defined as “cube tubers.Sony The fact that Sony offers the PlayStation gaming console. With only a very few titles becoming available over the course of its first few months in the market. the surplus of content could influence consumers so that the segment could increase. but also a gaming console with abilities that allow consumers to play 3D games. The severity of this threat could begin being analyzed as 3D gaming content arrives in the market. Sony’s PlayStation is the first gaming console to launch 3D gaming content.” the majority of consumers Samsung looks to target will not fall under this gaming segment. it will be July 2011 at the earliest before the significance of the 3D gaming market segment can be determined. presenting an opportunity for the market to expand. This relationship between the two products allows Sony to sell both products together at a discount offering not only a product to view 3D content. . The timing of this opportunity would be immediately.4 Threats A. the sooner the partnership begins. 3D Gaming Market . B. This partnership would also increase customer satisfaction by acquiring the only segment of the 3D market Samsung is not associated with. they have a foot in the door with the consumers who have interest in 3D gaming.
Neither of which compare to the twelve billion dollar campaign launched in the North America. Samsung will be doing everything they can to accelerate the diffusion rate for 3D TVs. predominantly the US. with the next being 3D. 4.B. from where 66% of the 3D TV market exists. Promotion Samsung has launched various advertising campaigns. However. Europe and Asia. This threat could effect Samsung exponentially as Samsung has invested billions of dollars in R&D for 3D products. North America. The TV market has been rapidly. the price of there current products will drop. in the strategies and opportunities sections you will find what we are doing to reduce the risk of these threats having an affect on Samsung’s market share. discouraging them from immediately making another buy such as that of a 3D TV. the evolution of HD TV and flat screen TVs is the most recent change the market has endured. Samsung should be able to measure the success of their efforts within the first two years after the product was launched as an indicator. . a slow rate of diffusion would slow down the rate at which Samsung reaches its goals for profitability. Slow diffusion rate for 3D TV Also representing a threat is a slow diffusion rate for 3D technology.5 Conclusions: Due to Samsung’s superiority in the general TV market. As Samsung introduces new 3D products to the market. making them more readily available to lower class consumers and expanding the target market for their 3D products. Eight billion dollars has been spent in Europe alone. Developing a partnership with Microsoft will be a vital component to developing the 3D gaming content availability. spending billions of dollars across three continents. the threats as you can tell are minimal. With most market forecasts predicting the change will occur within the first five years. and three billion in Asia. which is the only relevant competitive advantage other than pricing. Most consumers of lower economic classes or slow adapters have just recently made the transition to HD TVs.
According to DMW Media.2 What leads us to believe we can sell 3D TV’s in this market? ← According to FutureSource. to promote their products.7 billion dollars in sales by 2012 with a 6. The Black Eyed Peas.They also have and will continue to use celebrities such as singing group. Game console sales are expected to reach 34. They use these celebrities in advertisements seen by the public. ← . 3D TV sales have been healthy and are beginning to surpass HDTV sales at the same point in HDTV’s life. where customers can find deals for free shipping and set up. global video game sales totaled 41. This also offers consumers the opportunity to analyze reviews and physically see features of our products rather than hear them from a retail store associate. ← ←5.9 billion dollars in 2009 and are expected to grow 10. ← ← MARKET RESEARCH FINDINGS ←Video Game Market Because we intend on entering into a partnership in the future with Microsoft to develop a 3D gaming system.3 billion in 2012. Samsung’s products will not be offered in wholesale stores or super centers like Wal-Mart or Target.9% annual growth rate. but the consumer will have the opportunity to purchase them in specialty electronics retail stores like Best Buy and HH Gregg. with 1. FutureSource also says that by the end of 2010.2 million 3D TV’s will have been sold worldwide. and 50 million by the year 2015. researching the gaming market was essential. Place These products will be sold mostly online. 10 million are expected to be sold in 2011.3% to 68. 6. but also at some of there biggest events in which they display the product and allow the consumers at the events to experience Samsung 3D.2 million of those being sold in Europe.
” ← Consumer #2 . The group consisted of 10 average consumers. we organized a focus group.←5.“Before buying I was one of those people that ridiculed the idea of wearing bulky green glasses to watch 3D . ← Consumer #1 .but the other day found the whole family bunched up to watch "cloudy with a chance of meatballs" it was great! I now cringe every time I am forced to watch something that is not High Definition. Action scenes are awesome. The focus of the study was on what the current consumer felt about the 3D products available. Regarding the much-heralded Internet and TV and LAN functions I had my expectations up high. Sound is really not too bad if you have a small or medium sized-room. I find my Windows Home Server files easily and watch them flawlessly.first upgrade through wireless and following wired.“Found it easy to mount on the wall. This TV is an amazing display of technology. TV is so thin and picture is so clear it leaves people in awe. The Picture is smoother and clearer. Works well with my 3D receiver as well.“For the price of the TV my expectations were high and for the most part they have been met.” ← Consumer #4 . The TV updated a couple of times to upgrade Firmware but it was painless . ← First we had an open discussion with the five participants that had used the 9000 series. although very limited library at present time. I send the sound to my amplifier from the optical connection with no problems. Technical support offered via 1800 number helps tremendously for parts of set-up that are a little difficult for the average person. This is what the users had to say about the products advantages.“The picture quality is amazing. 5 men and 5 women.3 Focus Group ← To gain a better idea understanding of the consumer market. 3D feature is awesome. The feedback about the 9000 series was extremely positive. brilliant color and crisp picture.” . and what improvements could be made in the eyes of the consumer. I compared it to the c8000 at the store because I was skeptical about the contrast ratio being lower in the c9000 but the 9000 looks better.” ← Consumer #3 . no blur at all. 5 of the people in the group had used our Samsung 9000 Series 3D 1080p LED HDTV. The difference in price is definitely not just how thin it is which is incredible to look at. I connected to Samsung services and setup DivX reasonably easy to gain access. while the other 5 had never used a 3D TV and were simply asked what they thought about the idea of purchasing one and the overall concept of 3D TV’s.
← Consumer #1 .the motion of tilting the TV out to gain access causes the Aluminum to get very slight indents this can only be viewed by a very critical eye along the edge against light.” ← ← Consumer #2 . Remote control sometimes does not pick up signal so you can't watch the show on it when you leave the room. The group had a basic agreement that the picture.” ← The pros of the 9000 series are clear. Contacting Samsung support only confirmed and I was told that it is all over the board . Good going Samsung! Nice job on this one. Lot of connection problem with the WI Fi or .one Netflix login no matter which producer.why else would you have them apart from wanting to personalize your TV experience? The workaround is to reset the account every time someone new wants to use it and then re-register with new Netflix information . Am I allowed to not care about all the others and expect more from a top of the line TV? . We paired it with a Samsung HTIB and love the combination.” ← Consumer #3 . All the electronic and connection are in the stand and you have to remove a black part and stick it to the back if you want to hang it. The picture (even without the 3D) is AMAZING and with the 3D is beyond our expectations.“We've been looking for a HDTV for some time and think that we've found the perfect one.“Set-up if you aren't technology savvy may take assistance. Lastly I can possibly hold my breath longer than the remote holds a charge . However.this could be coded in to the software if Netflix or is it DRM essentially is stopping this ability. These are the cons they came up with. After having hung it on the wall and worked with the wires a few times . and there is a very short battery life on remote control. so that we could get a feel for what future TV’s should have based off of our assessment of what the group says. Another word of caution for this beautiful piece of furniture.1 TV . For the on-line Apps. we also asked them what the cons of the TV were.”Bought this TV for its design and the remote.Samsung should be cutting edge as they are with design and functionality and they should be able to code the software to make sensible use of these profiles .“Unfortunately it is IMPOSSIBLE to utilize these profiles for other than indifferent options such as weather settings and other bloatware.← Consumer# 5 . if you have more than one Samsung product you have to set up separate accounts and passwords for each product. the 3D and the overall design of the TV were of high quality and one of a kind.so I added it on to a multifunction remote from a competitor and avoided that problem.
Spent hours trying to fix it. then it will work great and then it gets errors again. The remote is disappointing and the touch screen a pain to use. However. if the Wi-Fi mode is working. would you buy a 3D TV? What do you think would have to change in the 3D TV market to persuade you to buy one? Finally what do you think about the concept of 3D? Do you like it? What don’t you like about it? The answers we received were simple: ← All five participants said that at this time. have to reconnect all the time. One participant said. ← When asked what would have to change in the market for them to feel comfortable buying one they agreed again that the price would have to come down. The selection of the source is a pain. It takes a lot of pointing and changing positions to get the TV to respond. The picture is about as good as the C7000 but not nearly as good as the C8000 which is admittedly Samsung's flagship for the masses” ← The next five participants that we asked to be a part of the group have never used a 3D TV.” ← Consumer #5 . Image quality is certainly the best available but identical to the 8000” ← Consumer #4 “Big complaint would be setup and reliability of internet features. Overall they know very little about them and what they do know.Ethernet. With the current state of the economy.Remote works terrible in infrared mode.. both for the TV and the remote I have the latest router available which works fine with all other devices. Don’t get me wrong.” Another said. It was a little tricky to setup the TV. but still not reliable. Same with watching content over the internet. The remote connects over the internet to the TV as well. Another suggestion was that all programming would have to be in 3D. The TV gets a lot of errors.” with the 6. Some of the questions that we asked were. the TV responds perfect. they agreed that spending that much money on a TV was unnecessary and irresponsible unless you can honestly afford it. I have not found a way to remove the unused sources.“Unfortunately the hefty price will only get you the cool factor.. is only has been seen on television advertisements. or even make upgrades to our lifestyle without buying a new television. but this TV is obviously targeted to a consumer that cares more about the looks of the set itself than its performance.” with TV’s changing year to year from HDTV to 3D TV. it feels like it costs a . Sometimes this works and sometimes it does not. they would not buy a 3D TV due to the cost.000 dollars I spent on the TV I could feed my family for a long time.
← ← ← ← ← ← ← ← ← OBJECTIVES Enter in to the 3D video gaming market through a partnership with Microsoft.” ← In conclusion. and when the prices fall for the older ones go get one of those. and according to the numbers the 3D TV market will double in the next year. or the sound quality. we intend on entering into a partnership with Microsoft to develop a virtual gaming product. The participants that have used one had more positive things to say than negative. and triple by 2012. As far as getting new customers to change their mind about not wanting one. we would like to couple 3D TV technology with a dominant video gaming . then Samsung has done a good job with the product. “I don’t want to be watching a football game and have it seem like I’m about to get tackled. and 3 others said that they enjoy it. 2 really had no opinion because they were just now becoming accustom to HDTV. then the 3D TV market will prosper as the HDTV market did when it encountered the same problems. One participant said. In order to capitalize on the growing video gaming market. the focus group gave us a great idea of how productive 3D TV’s will be. Short term.” I don’t need what I watch to be “jumping out” at me. The things that were mostly complained about such as the remote control and the cost will vary no matter what. but hated having to wear glasses to watch TV and that the total cost was not worth the experience.” ← When asked about their opinions about 3D in general. If the quality is there and the cost is right.fortune to stay caught up when the smart thing to do is to wait for a new TV to be introduced. they are all the same to me anyway. If the remote control is a main problem with the TV instead of the picture quality. that will come as more 3D TV’s are released and information about the advantages of them become available.
Our objective is to see our market share remain at 88% until the release of our glasses-free product in 2014. Maintain market dominance throughout the “Glasses” era and prepare the market for a “glassless” 3D TV. As the market evolves closer to glasses free technology we would like to prepare the market for our product release in 2014. By the year 2020 we intend on launching a virtual gaming product. An ad campaign focusing on our competitive advantage in technology would be highly effective in selling more 3D TV’s to developing market. Our goal is to increase TV sales by 5% in a 6-month period following the launch of the campaign. . Having already established a firm hold on the 3D market. Launch a comprehensive ad campaign that focuses on SE’s competitive advantage in 3D technology. therefore. we would like to maintain our position as market leaders in 3D technology with the use of 3D glasses. STRATEGIES Enter in to the 3D video gaming market through a partnership with Microsoft. they are getting the most advanced product in the market. We want to make it known that Samsung was the first to pioneer this technology.console like the XBOX 360.
5 million units sold.By entering the gaming market we believe that we can capitalize on the untapped 3D gaming market for significant profit opportunities. In addition. According to data compiled by the NPD Group. We believe that a partnership with Microsoft will allow us to use the XBOX 360 gaming console." each of which accounted for more than 18 percent of all games sold.7 million units sold. These particular genres are the genres most compatible with 3D technology. In addition. coupled with our advanced 3D technology to bring a new 3D experience to gaming.9 billion in portable software sales with 73. 60 percent were rated "Everyone (E)" or "Everyone 10+ (E10+). the industry continues to grow as an entertainment medium. The target market of these particular products tend to place an emphasis on having the latest and greatest technology and through this partnership. economy. leading to $10. it is our belief that we can capitalize on these tendencies. Of these sales: 1) Game console software sales totaled $8 billion with 176. Entertainment software is one of the fastest growing industries in the U. Microsoft has selected Samsung as the exclusive HDTV worldwide marketing . We believe that in the long term. a Microsoft XBOX 360. The industry is creating jobs and producing revenue for communities across the nation. 2) Computer game sales were $538. It is our short term goal to create a gaming package available to consumers that will include a Samsung 3D TV. making them the most beneficial candidate for partnership. we can couple our competitive advantage in 3D technology with Microsoft’s competitive advantage in video gaming to create an enhanced 3D experience comparable to virtual reality. The most popular game genres in 2009 were "Action" and "Sport Games." 41% of gaming consoles sold in the U. glasses.5 million units. and.2 million units sold.S.S. of the games sold in 2009.5 billion in revenue.4 million with 23. computer and video game companies posted strong sales in 2009. a global market research company. were produced by Microsoft." The NPD Group's data also indicates that only 17 percent of games sold last year were rated "Mature (M). The industry sold 273. 3) There were $1. and 3D compatible games to offer an in home experience that consumers cannot find elsewhere.
print. the companies said." the companies said." Details on the next-generation Xbox were scant from Edward Bland. In commenting on the deal. Negotiations between Samsung and Microsoft on this alliance took around a year. Peter Weedfald. explaining that its major introduction will be held at the E3 show in Los Angeles the week of May 16. said. both companies will install over 25. Both companies enjoy a long-standing relationship as strategic and tactical business partners. which offers a super-fast 12-milIi-second pixel switching speed and enable "intense action while overcoming any motion artifacts. online and various other media efforts. This will mark the first time Microsoft incorporates a consumer electronics technology partner with the Xbox console and games. Weedfald added chat Samsung has also. with further details becoming available in coming months. The announcement was made during media day at the Home Entertainment Expo at the New York Hilton. POS. which was held from April 29-May 1. with half that total budgeted for the United States. Microsoft Xbox currently incorporates Samsung technology. The global marketing and promotional alliance between Microsoft and Samsung Electronics will include cinema. Not selected a blue-laser format as of yet. television. Considering the long-term relationship held between the two companies with . the companies noted. As part of this marketing deal.soft's HD Xbox "the best next-generation game console and a key driver in the global HDTV revolution.000 Samsung HDTV’s in Microsoft Xbox retail kiosks worldwide. But he did note that "no decision has been made as yet for a bluelaser format" for Xbox. and Samsung will continue to be a tech driver for the next-generation Xbox video game console. consumer electronics and North America corporate marketing for Samsung Electronics America. Microsoft's first high-definition game will incorporate Samsung branded products as well as instances of Samsung's logo as part of the overall HD gaming experience. Bland noted that "either Blu-ray or HD DVD would be acceptable" and that the next-generation Xbox would be "extendable" in that area. "Gaming has become a primary force for innovation in the entertainment and technology industries" and called Micro. global marketing general manager of Microsoft's home and entertainment division for Xbox. senior VP.partner for the next-generation Xbox high-definition (HD) gaming platform. The new 23-inch Samsung LCD TV will be paired at retail with the new Xbox console. Weedfald said.
We believe that if we launch an ad campaign that sends the message of quality and luxury we will see a rise in our company sales. The glasses-free TV will be relatively expensive and if there is . Because we posses such a large share of the current market. Even though we have the technology to provide a glasses free 3D TV. we aim to make them very aware. We want to convince the customers that if they are going to spend a larger amount of money on an expensive product like a 3D TV. we believe that a deal focusing on the 3D format is highly likely and would be beneficial for both parties involved. Samsung holds a major competitive advantage when it comes to 3D technology. we would like to gain a comfortable amount of market share so that the launch of the new product has a quality brand image to fall back on. During this waiting period before the product release in 2014. Consumers are not aware of our quality products compared to the rest of the market and through the campaign. we would like to grow and maintain what share we do have to gain as much profit as possible during this stage of the technological life cycle. We want to stress the fact that Samsung was the first to pioneer the 3D TV and that our TV’s are the most technologically advanced in the market. Our goal is for the consumer market to associate Samsung TV’s with the best in the market when it comes to quality and technological advancement. Samsung. Maintain market dominance throughout the “Glasses” era and prepare the market for a “glasses-free” 3D TV. Launch a comprehensive ad campaign that focuses on SE’s competitive advantage in 3D technology. we would like to let the market develop through a glasses era so that we can release the best product possible in 2014.the HD format. It is our goal to launch an ad campaign that makes the consumer associate 3D technology with Samsung. Our main message trough this ad campaign is going to preach the need for quality and convince consumers that if you are going to have a 3D TV. they deserve the best. you should have the best.
With the upcoming super bowl season. To do so we intend on . There is no better stage to advertise a 3D TV on than during the super bowl. This will give us an instant upper hand on the market. we will continue to increase our market share until the release of our glasses-free television. TACTICS Enter in to the 3D video gaming market through a partnership with Microsoft. After the partnership is achieved we intend on turning the focus of our R&D spending (7Billion annually) towards producing a virtual reality gaming experience alongside Microsoft. Print ads will also be placed in Game Informer magazine and in ESPN magazine to more effectively reach our target market. Launch a comprehensive ad campaign that focuses on SE’s competitive advantage in 3D technology. After we increase sales of our 3D TV’s we hope to gain a reputation for providing the most technologically advanced product in the 3D market.a successful 3D TV generation preceding it. the chances of it succeeding greatly increases. we would like to advertise our 3D TV during the most highly watched event in America. To associate with gaming products even more. Maintain market dominance throughout the “Glasses” era and prepare the market for a “glasses-free” 3D TV. By advertising and effectively selling our glasses required televisions. This would also serve beneficial to our gaming market because a majority of video games played are sports games. we are seeking an agreement to make Gamestop. This objective is crucial to Samsung’s long-term success in the 3D TV market because if executed properly. Samsung will be established as the leading provider for 3D technology for years and years to come. A majority of our target market for our TV’s will be watching and it would be a fantastic opportunity to advertise directly to our market. We believe that with a proper business proposal. and EB Games official dealers of our 3D televisions. Microsoft will be highly interested in a partnership as market research suggests that 3D gaming is going to be a very profitable industry in the near future. This will allow us to bring a technological innovation to the market that would be far beyond anything anyone else can provide.
providing the highest quality products and customer service to maintain the products we have already sold. distribution. Financial Impact of the Marketing Plan Five year sales forecasts: Enter in to the 3D video gaming market through a partnership with Microsoft. To enter in to the gaming market with Microsoft.1 million dollars for one 30-second spot. . we plan on focusing our R&D budget (7 billion in 2010) solely on producing a virtual reality gaming platform. and market research. We would like a 500 million dollar advertising budget to effectively advertise for a six-month period. Launch a comprehensive ad campaign that focuses on SE’s competitive advantage in 3D technology. This budget includes the research necessary to develop the product. This goal will be met with the proper execution of goals one and two. An average ad during the super bowl is $1. We would like another 20 billion to fund production. customer service.
CRT) French door refrigerator (U.8% Q1 2008 Q2 2008 Sanyo 20% Q2. and operating costs.5% 90. See Tables Attached. PDP.1% 2008 2009 25.4% Competitors Hynix Toshiba LG Display LG LG M/S Year Source          21.S.9% 2007 HP LG Whirlpool 19.5% 16. 2009 Dell 14.2% Q1 2009 Q3'09 13.8% Q3 2009 Canon 19.79% 21% 9.3% 40.8% February 34. market only) Mobile phone Digital camera Drillship 18.83% 2009 January    Nokia 37.6% Q1 2009 28.Maintain market dominance throughout the “Glasses” era and prepare the market for a “glasses-free” 3D TV. Income statement. Balance sheet.0% 19% 16.1% 80%  23. This goal will be achieved with the daily operating cost and should not increase the average spending per year.2% 2007 Daewoo Shipbuilding & 20% 2000~2007 Marine Engineering  .7 % Revenue Share Television sets 23% (LCD.4% 26. MARKET SHARE Products DRAM NAND Flash Large-size LCD Panel PDP panel Active-Matrix OLED Lithium-ion battery LCD Monitor Hard disk drive Multifunction printers Samsung's global m/s 34.1% 9.6% 2008 Seagate Technology 34.2% 30.
Since the beginning of this year (29.SPORTS SPONSORSHIP :- The Samsung Running Festival in Taipei. sponsoring the last five Olympics and erected a large video sign in Times Square in 2002 (Lee kun-hee).2009) Samsung Electronics Austria has been supporting the Spanish Riding School of Vienna. the world’s oldest and best renowned equestrian series.French (English: International Federation for Equestrian Sports) and the FEI Nations Cup. Samsung . contributing Samsung Nations Cup Riding Competition. Samsung is very involved in the Asian Games. Samsung sponsors English premiership team Chelsea FC. Samsung Super League with Fédération Équestre Internationale . the "Spanish Court Riding-School") Samsung has also tried hard to improve its international image. Taiwan. at the end of each season brings additional excitement and further enhances the sporting qualities of both series.04. Austria (de: Spanische Hofreitschule. It has spent more than $6 billion since 1998 on marketing.
and the volleyball team Samsung Bluefangs in South Korea. worth R$15 million annually (~4. initially with RadioShack from 2002– 2006. The deal with Victory is also believed to be the largest in Australian club football history. This sponsorship. Samsung is a sponsor of the April NASCAR Nextel Cup race at Texas Motor Speedway. Samsung Khan won their first championship in the first season 2008 Shinhan Bank Proleague. In 2005 Samsung signed the second biggest sponsorship deal in English football history with Premiership team Chelsea. From 2009 Samsung will be the primary sponsor of the Essendon Football Club. the baseball team Samsung Lions. and a plan for activation with the crowd. the Samsung 500. The company sponsors the rugby league team the Sydney Roosters in the Australian National Rugby League 1995-1997. Samsung Khan. They plan to start a cricket league in India with the prize money of $20 million (Samsung plans to construct 9 stadiums by the end of 2009).Running Festival. 2004–present. Their five-year deal is estimated to be worth £50 million. Samsung World Championship (LPGA Tour) and still many more around the globe. Samsung currently sponsors French People's Baseball Team. As well as having their logo printed on the Palmeiras football shirts. The NFL has installed Samsung high definition televisions in select areas of all of its team stadiums. It also sponsored the Melbourne Victory football club in the Australian A-League. However. was in doubt after the 2003 race because of NASCAR's ban on wireless telecommunication sponsors effective the 2004 season. the deal also provides for the supply of Samsung products to the club. being developed by Samsung. Samsung has agreed to become an Official IAAF (International Association of Athletics Federations) Partner of the 2009 (Berlin. Samsung sponsors a professional StarCraft team. In April 2008 Samsung and Mexican football team Club Deportivo Guadalajara signed a sponsorship deal for six years where Samsung will provide 865 plasma and LCD screens for the team's new stadium Estadio Chivas. Samsung signed a three-year deal with the Brazilian Football League Team Palmeiras. Samsung is also the official HDTV sponsor of the National Football League (NFL). 2009. Germany) and 2011 (Daegu.8 million Euros annually). the basketball team Seoul Samsung Thunders. the ban was rescinded for Samsung. an annual competition for various computer games including StarCraft. because of Sprint's sale of Samsung products. South . after Sprint's merger with Nextel. but was grandfathered into the Nextel contract (Nextel uses exclusively Motorola equipment). the women's basketball team Samsung Bichumi. Samsung owns the professional soccer club Suwon Samsung Bluewings. On January 15. It is also the leading sponsor of the World Cyber Games (WCG).
The Beijing Olympic Games in 2008 are expected to be the climax of the company’s efforts for the last ten years. the company has been an official sponsor in the wireless telecommunications equipment category. Samsung concluded a TOP (The Olympic Partner) sponsorship contract with the IOC in 1997. By sponsoring the Olympic Games and the Olympic Movement for the last ten years. and the Rio de Janeiro Olympic Games in 2016. According to the new contract. Samsung has made great strides towards becoming a “cutting-edge global brand” that leads the mobile phone industry. Samsung sponsor of the Olympics Samsung first became a full sponsor of the Olympic Games during the Nagano Olympic Winter Games in 1998. the Beijing 2008 Olympic Games and the 2010 Vancouver Winter Olympics. to the global level” – Samsung decided to sponsor the Olympic Movement to strengthen its global corporate image and brand value and has been carrying out a global marketing campaign with the Olympic Games and the Olympic Movement as the single theme. a deal that covers the Vancouver Winter Olympics in 2010.Korea) IAAF World Championships in Athletics and the 2010 IAAF World Indoor Championships. Accordingly. including the 1998 Nagano Winter Olympic Games. the 2006 Winter Olympic Games. Since then. According to guidelines set forth by Samsung Chairman. the 2000 Sydney Olympic Games. which is a leading intangible asset and the source of corporate competitiveness. the 2014 Olympic Winter Games. Lee Kun-hee in 1996 – “Devise strategies that can raise brand value. Samsung will officially sponsor the Olympic Games and the Olympic Movement for the next eight years. the 2004 Athens Olympic Games. the London Olympic Games in 2012. . the 2002 Salt Lake City Olympic Games.
I believe in his audience -. Let's say you have such space on more than 400 sites." Using ads as a distribution mechanism is a byproduct of the bigger game for Weedfald. be it Fantastic Four or releases from Jon Bon Jovi and The Who.that is. Such is the story with consumer-electronics darling Samsung. publishing. says Weedfald.COM OCTOBER 31. creative" partner. You would like to reach 175 million people in 30 days?" deadpans Peter Weedfald.) What is a network without content? A full-court promotional press for Fox's Fantastic Four last summer involved Net and traditional media ads and in-store displays at Best Buy. Hollywood. He gets a vast distribution network. "The unique editorial is his music. As a mass marketer with myriad product lines. to $11. "I want Jon Bon Jovi. "We can do it. buzzword-studded selling style. a former tech-magazine executive." Samsung (NWS ) just announced . It occurs to you: This is a network in and of itself. Fox's senior vice-president for global marketing partnerships.SOURCE:WWW.) Weedfald. created competition for traditional media by becoming something of an ad vehicle itself. "Think where moviegoers are: They're on the Internet for a significant portion of the day. but it has." There are many arrows in Weedfald's quiver -.all that choice Web real estate." he says.his circulation -.and what he stands for. Samsung products' natural fit with entertainment. "Samsung's Internet reach is so pervasive.com (TWX ). This being the Web. loves publishing metaphors. like page-topping banners on the home page of time.BUSINESSWEEK. You can use your collective ad buy to leverage partnerships with other marketers. as Samsung traded off its Net bona fides for multiple product placements in the film. Weedfald is proving there's life left yet in the lowly Web banner ad. warming to an imaginary audience. these ads are neither static nor one-way. They can link to other sites. "Let us be your advertising. and in the tattered massmarketing model itself.aptly proves that he practices what he preaches regarding repetition. its consumer unit -.5 million. "We get to burnish Samsung by standing next to Jon Bon Jovi. INTERNET SPENDING by Samsung Electronics -. and his own ultra-audacious."the ADD economy. and his genius around the music." says Lisa Licht. Let's say you long ago staked out prime property. musicians' need to promote themselves independently of labels' efforts. perhaps unwittingly. Samsung seeks ubiquity and repetition." (You were warned about his selling style.tripled between 2001 and 2004. You have essentially blurred the line between advertiser and medium. 2005 MEDIA CENTRIC Samsung The Network Blurring the line between ads and media like never before Let's say you buy several million dollars' worth of Internet advertising." the Internet being "Darwin on speed" -. "Hi. With them all. marketing. It accounted for slightly more than 14% of its measured media spending for the first half of 2005. Actual money that changed hands between Samsung and the studio: zero. Samsung also boosted its advertising on network TV and in magazines. Its ads not only promote its own wares but also sometimes other big mainstream entertainment products. should consumers be given a good reason to click. Samsung's senior vice-president for consumer electronics and North American marketing. (Googling some of Weedfald's pet phrases -.
tempting consumers with technologically advanced products specially tailored to their needs. 87% of whom stuck around for the nearly two-hour show. You can browse our collection of term papers or use our search engine. it is moving downwards. a new facility may well become a manufacturing hub for Samsung worldwide. and grabbed 125. Surely not? Over the past decade.000 viewers. For the first time. We also have a wide variety of research papers and book reports available to you for free. framed by what looked like a Samsung TV. So. the 58-yearold Lee has been busy turning all Samsung strategies on their heads." he says. Samsung sponsored a Webcast of a Bon Jovi concert. South West Asia. no one knows you're a dog. so much so that industry observers believe Samsung may go after the masses much like its arch rival LG Electronics did until a couple of years ago: already. aesthetics and cutting-edge technology and prices that were commensurately higher. Samsung Distribution Network It's been a long while since H B Lee really relaxed. Since last February. of course. The old New Yorker cartoon tells us that on the Internet. Samsung Distribution Network We have many premium term papers and essays on Samsung Distribution Network. Samsung India Deputy Managing Director. Uncomfortable as it may make media executives who might once have aired a Bon Jovi concert themselves. The Korean consumer electronics giant is now reaching deeper and wider into the Indian market. with products that emphasised design. which is it? Evolutionary or radical change in strategy? Decide for yourself. Even if you act like one. though. "What we adopted in 2007 was not really a change in strategy but an evolution of our strategy.a deal promoted. Until now. The focus is on expansion and deeper market penetration. Volumes do matter . Samsung has clung to its premium positioning. Not that Lee views his "strategy revitalisation" effort as an attempt to change things. Last year. Samsung flat televisions are among the cheapest in the market. "Samsung is not a price warrior but today we are as competitively priced as our rivals. The Samsung corollary is: On the Web. it likely didn't hit Web users that they were watching another turret crumble on the advertiser-media wall.a deal with The Who in which buyers of certain Samsung systems get free Who DVDs -. by its Web presence." he insists. vehemently rejects the price warrior tag. when he took over in New Delhi as President and CEO of Samsung. Ravinder Zutshi. Showrooms are being brought under a common umbrella brand and now. no one knows you're not a medium.
Since we have already held a partnership with Microsoft Xbox. Our advertising strategy is expected to maintain our market dominance.In 2005. Half of this budget is designated strictly for the United States. and primetime TV series as our main targeted time slots. These included flat panel. MP3 players. this should give us a very large advantage in striking another deal to produce a 3D game that would add to the gamers’ experience. Samsung started to release TV commercials before the release of the first 3D TV. Microsoft agreed to incorporate Samsung’s branded products. LCD and plasma TVs [Get Quote]. As of June 2010. A major emphasis will also go on displaying the sleek. notebook computers and mobile phones. Our advertisements will focus on illustrating the picture quality and effects of the new product. At the time. ultra thin design that is a main key in our advertising strategy. we controlled 90% of the 3D market. another Microsoft deal with 3D gaming would be ideal for Samsung. award shows. sceptics argued that growth targets based on premium products rather than on India's. home theatre systems. . We used main sporting events. The word of 3D TV’s spread very quickly and ultimately helped the release of our product go straight to the top. top-end refrigerators.. Samsung joined forces with Microsoft XBox in April of 2005 to become exclusive HDTV worldwide marketing partners. As a part of the deal. Launch a comprehensive ad campaign that focuses on SE’s competitive advantage in 3D technology.. digital cameras and camcorders. as well as instances of Samsung’s logo throughout the first high definition game that would be released. METRICS Enter in to the 3D video gaming market through a partnership with Microsoft. both companies agreed to install over 25. Now that 3D technology is out on the market. when our first product was released. Samsung introduced over 100 new products that were sold on the lifestyle platform.000 HDTV’s Xbox retail kiosks worldwide.
What if Samsung falls out of the top spot? Currently. and The Incredibles. a technology superior to that of its competitors. specifically the 3D TV segment. We feel that with this partnership. If we lost partnerships with either or both of these companies. Alliances. we could make a great profit with animated movies targeted towards small children and developing families. . which ended up being the second highest grossing animation film of all time. Samsung holds a dominant market share. However. releasing movies like Finding Nemo. Withholding that technology until the 3D market has been established allows them to use this technology as a contingency plan if they do not meet their goals of sustaining that dominant market share. Pixar is becoming a top notch movie production company. Toy Story. we would look to start a new partnership with Pixar Animations or other 3D production companies. due to the resources implemented in R&D at Samsung. among numerous others.CONTINGENCY PLAN Dominance in the 3D Market. with $415 million. This technology represents the next trend in the TV market. The latest movie released was Toy Story 3. What if Samsung lost their partnership with content providers? Samsung currently holds two significant joint ventures with DreamWorks and Technicolor. they have developed “glasses free” TVs. DreamWorks announced this year that they will produce nothing but 3D movies from now on.
lmunet.revenews.com/us/video/tvs/UN65C8000XFXZA http://www.mullen.com/ehost/pdfviewer/pdfviewer? vid=8&hid=13&sid=d66428e2-8896-47b2-a4f7-6091890821ff %40sessionmgr113 • • • • http://www.htm http://www.References • • • • • • • • • • • • http://www.ebscohost.kr/www/news/tech/2010/09/129_69283.com/8301-31045_1-10433274-269.co.com/mikekoehler/will-the-3dtv-market-live-up-to-itspromises/ http://www.edu/login? url=http://web.crunchgear.com/magazine/content/10_03/b4163052960824.businessweek.col1 http://ezproxy.lmunet.com/us/video/tvs/UN65C8000XFXZA http://www.com/mikekoehler/will-the-3dtv-market-live-up-to-itspromises/ http://www.revenews.com/news/2010/04/14/report-global-3d-tv-market-beworth-17-billion-2014 http://ces.edu/login? url=http://web.ebscohost.html http://www.com/magazine/content/10_03/b4163052960824.com/ehost/pdfviewer/pdfviewer? vid=8&hid=13&sid=d66428e2-8896-47b2-a4f7-6091890821ff %40sessionmgr113 • http://ezproxy.htm http://www.htm http://www.com/technology/content/dec2009/tc20091230_4363 89.cnet.html http://findarticles.com/2010/09/3d-tv-marketers-take-note/ http://www.samsung.htm .businessweek.koreatimes.com/Articles/2010/01/29/47903/3d-tv-marketis-set-for-big-growth.dmwmedia.samsung.electronicsweekly.businessweek.com/Articles/2010/01/29/47903/3d-tv-marketis-set-for-big-growth.com/p/articles/mi_m0EIN/is_20100326/ai_n52924274/? tag=content.htm http://www.com/2010/08/13/how-is-3d-tv-doing-some-data-fromjapan/ http://www.electronicsweekly.
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