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Project Report

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Samsung History
Samsung's history dates to 1938 when "Samsung General Stores" opened in North Kyungsang Province, Korea. The company conducted its trade business until the 1950s when it
became a producer of basic commodities such as sugar and wool. In 1958, Samsung be-came
involved in the insurance industry by incorporating a local fire & marine insurance company.
During the 1960s, Samsung became one of the first Korean companies to actively expand its
overseas trade. The group consolidated its manufacturing base by adding paper and fertilizer
businesses. Samsung continued with expansion into the life insurance business, strengthened
its retail operations and then moved into the communications sector, successfully establishing
a newspaper and a broadcasting company.
The 1970s were a crucial period in shaping present-day Samsung. Its strengths in the
semiconductor, information and telecommunications industries grew from the significant
investments made during this period. Samsung also took a meaningful step toward heavy
industries by venturing into aircraft manufacturing, shipbuilding and construction, as well as
chemical industries.
In the 1980s, Samsung expanded its efforts into exploring the larger markets overseas. The
group began contributing to foreign economies by building facilities in the US, the UK and
Portugal. Samsung also invested considerable resources into fostering Korea’s rich heritage
by supporting a wide range of cultural and artistic activities.
The final decade of the
20th century saw the evolution of Samsung's new approach
to management. Chairman Kun-Hee Lee's insightful vision and the introduction of the "New
Management" in 1993 acknowledged the need to transform management philosophy in or-der
to keep up with a rapidly changing global economy. More recently in 2000, a "Digital
Management" approach was adopted to ensure that Samsung maintains a leading position as
the Information Age continues to transform global business and culture.


Leaders of Global Growth Kun-Hee Lee. Lee presented a blueprint for Samsung's global success in the 21st century with his "New Management" declaration in 1993.3 billion. Kyongnam Province. Becoming Vice Chairman of the Samsung Group in 1978 and Chairman in 1987. Lee took over the helm of Samsung Electronics Co. as Chairman. Chairman Lee is committed to the advancement of amateur sports in Korea and around the world. Today.Since Kun-Hee Lee's appointment as Chairman in 1987. An amateur wrestler in his youth and an avid golfer and equestrian today. The group's three core business sectors are electronics. South Korea. Total assets of the group grew 12. His broad perspective on business stems in part from his participation in many organizations such as the Korea-Japan Economic Committee and the Federation of Korean Industries.2 times to US$98. globally-focused and responsive to the needs of each market. Born in 1942 in Uiryung. In 1998. organizational creativity. Byung-Chull Lee (1910-1987). He has been a member of the International Olympic Committee since the 1996 Atlanta Olympic Games. Lee's "New Management" encompasses intellectual capital. Samsung has evolved into a group of companies unmatched by others in its range of industries and performance. Lee majored in Economics at Japan's Waseda University and studied Business Administration at George Washington University in the United States.5 billion in 2001. and trade and services. welltrained. and more committed than ever to true innovation. the group's total sales increased by 7. Chairman: Son of founder Byung-Chull Lee.6 times to US$124. finance. It is now coherently restructured and streamlined. Lee was named among Asia's 50 most influential people by Asiaweek for six consecutive years and was also named one of the world's most influential people by the French weekly Le Nouvel Observateur. technological innovation and employee empowerment as the key strategies for Samsung's profitable growth in an era of unbridled global competition.7 billion and net income by 25 times to US$4. Kun-Hee Lee's early career at Samsung included a decade serving as Executive Director of the Joong-Ang Daily newspaper and Tong-Yang Broadcasting Corporation. Founder: 3 .

Sam-sung is now embracing the emerging business trends worldwide. who founded the Samsung Store in 1938. and indeed Korea's. Samsung employees have been guided by a corporate philosophy that states. technological innovation and employee empowerment as the key strategies for Samsung's profitable growth in an era of unbridled global competition. achieved through multifaceted integration of facilities as well as the development of global information systems. which houses the largest private collection of art and artifacts in Asia. the Ho-Am Foundation was created in memory of founder Lee's contribution to society. "New Management" implementation began by encouraging individual employees to first make changes within themselves. electronics. strong presence in semiconductors. Samsung set an objective to become the winner in the digital era of the 21st century through leading initiatives based on its pioneering spirit and management strategy of selection and concentration. preserves the nation’s heritage. performance at Samsung is measured in qualitative rather than quantitative. Moreover. Mr.Byung-Chull Lee. international competitiveness is an overriding objective. terms. "We will devote our people and technology to create superior products and services. Vision and Strategy In 1993." Through this declaration. Samsung's ultimate goal is to achieve quality-of-life improvements worldwide by succeeding as a top-tier enterprise in the 21st century. this corporate philosophy unites all Samsung-affiliated companies." Today. In 1997. Through enhanced global management. aerospace and many other future-oriented industries can be traced directly to the early foresight and determination of founder Lee. The establishment of the Ho-Am Art Museum. striving to care more for others and to behave ethically. With a philosophy of service to the nation through business and an emphasis on cultivating quality human resources. The year 2000 was declared as "Samsung's initial year of digital management. was the leading business visionary of his time. Samsung's. as well as by advancing the standards of next generation digital convergence technology. Today. thereby contributing to a better global society. Lee also devoted himself to preserving the nation's cultural heritage for future generations. engineering. organizational creativity. enabling it to react quick-ly and respond to local market changes. For the past half-century. 4 . Chairman Kun-Hee Lee presented a blueprint for Samsung's global success in the 21st century with his "New Management" declaration that encompasses intellectual capi-tal. Lee is remembered today as much for his pioneering role in Korea's industrialization as for his philanthropic activities and spirit of social duty. while the Samsung Foundation of Culture encourages the cultural and artistic pursuits of future generations.

7 billion investment in Research and Development. This strategy brings Samsung. enormous opportunities. society. Samsung places a priority on being a respected corporate citizen. while Chief Executive Officers of each affiliate have the responsibility for autonomous decision-making on ordinary business issues. code of conduct and corporate identity. and culture.Innovation has long been critical to Samsung's success. Increasingly.000 researchers representing a US$1. Chairman Lee is responsible for determining the long-term vision and direction of strategy for the group. and a helpful neighbour in the local community and hence contribute to the local economy. Samsung's strategy is two-pronged: to prudently expand outside its home market and to equip overseas units with the skills and resources to be self-sufficient. Globalization provides access to new suppliers and customers. LCDs. with income before tax of around US$25 billion. knowledge and experience. they share the same overall management philosophy. Samsung Life Insurance is ranked 10th largest life insurance company in the world by Fortune magazine. In finance. a good employer. helping the group to be "first" in many new product developments and technological breakthroughs. it is the number one producer of memory chips. has 13. and allows Samsung to learn and benefit from new cultures and new ideas. Samsung is truly global in scope and nature. Samsung aims to grow the businesses of the group to about US$224 billion in sales by 2010. displays and CDMA handheld phones. For example. 5 . it has not lost touch with its roots in Korea. In addition. which has been among the world's top 10 in US patents for four consecutive years. and the countries where it operates. Its commitment to innovation continues to be stronger than ever. Samsung Electronics. In electronics. Total assets are expected to reach in excess of US$280 billion. As Samsung expands its global presence and recognition. Globalization With more than 285 overseas operations in 67 countries. Samsung has been forming cooperative alliances with the some of the lead-ing names in the global technology arena to share vision. Samsung continues to be a leading influence and major supporter of the Korean economy. Although Samsung-affiliated companies are spread over a range of industries and operate independently. Samsung is already a world leader in many business areas.

37 billion in 2001 and was recognized by Interbrand Corporation as the fastest growing global brand. Samsung's goal in every market is to maximize brand equity through superior design. 6 . Samsung is also working with Intel. Samsung's brand value increased to US$8. productivity and stability with the aim of being a total solutions provider in the areas of home. and Hewlett-Packard has helped to reduce risks in entering new business areas and to secure stable supplies. Com -paq. its management and strategic direction. and Sprint in the areas of technology and marketing.31 billion in 2002 from US$6. Sony." Attracting and developing the best people is key to Samsung maintaining. and customer service. The steadfast commitment in each of these areas will ultimately place the "Samsung" name among the best known and most respected in the world. IBM . and the vision that Samsung is pursuing. AOL Time Warner. marketing. The partnerships are designed to provide all customers with efficiency. Collaborating with Dell. All new employees attend a comprehensive one-month orientation / education program to learn and understand the core values of the group. and Qualcomm on technology exchange as well as standardization.Alliances include cooperation with Microsoft. an advantageous position in an era of technology competition. mobile and office through Digital Convergence and Networking. and enhancing. Commitment to Human Resources One of the management philosophies of the late founding Chairman Byung-Chull Lee was that "A Company is Its People. and to constantly deliver the highest-quality products.

marketing. Introduction of Samsung Samsung is known globally for its electronic products and it is one of the successful brands in the electronic industry.One of Samsung's human resources strategies is to recruit the highest-quality personnel from around the world. such as research and development. Samsung is continuously strengthening the global competencies of core personnel by focusing on foreign language proficiency and ability to acclimatize to foreign cultures. finance. Samsung is also making efforts to provide early career-development programs for individuals who have been identified as possessing noteworthy capability and talent in a range of are Since its establishment. Seoul. design and information technology. It is the flagship subsidiary of the Samsung 7 . by focusing on those who have Masters and Doctorate degrees in all areas of management. Recognizing that globalization of domestic human resources is as important as attracting high-quality personnel from overseas. Samsung Electronics is a South Korean multinational electronics and information technology company headquartered in Samsung Town. regardless of nationality. It is an established company almost all around the world. Samsung has become a national company representing Korea as a result of implementing its spirit of "Priority of Human Resources" through which it has placed great value in its employees and raised human resources necessary for the nation and the community.

In competition to Apple's ipad tablet. we follow a simple business philosophy: to devote our talent and technology to creating superior products and services that contribute to a better global society. the company has been in the top spot in terms of the number of TVs sold. In 2009.000 employees. Samsung has approximately 160. which is expected to continue in 2010 and beyond. Samsung’s Smartphone line-up has retained the second-best slot in the world market for some time. the company took the position of the world’s biggest IT maker by surpassing the previous leader Hewlett-Packard. Its sales revenue in the areas of LCD and LED displays and memory chips is number one in the world. In the TV segment. Samsung’s market position is dominant. 8 . the company has kept the leading position for eight years in a row. In the global LCD panel market.Group. The Samsung Philosophy At Samsung. With the Galaxy S model mobile phone. For the five years since 2006. With assembly plants and sales networks in 61 countries across the world. Samsung released the Android powered Samsung Galaxy Tablet.

a rigorous code of conduct and these core values are at the heart of every decision we make. we’re dedicated to giving our people a wealth of opportunities to reach their full potential. Integrity Operating in an ethical way is the foundation of our business. 9 . we set our sights on the future. respect for all stakeholders and complete transparency.Every day. Excellence Everything we do at Samsung is driven by an unyielding passion for excellence—and an unfaltering commitment to develop the best products and services on the market. As we have done for 70 years. Everything we do is guided by a moral compass that ensures fairness. At Samsung. a company is its people. and give them the resources they need to be the best at what they do. And that’s what making a better global society all is about. The result is that all of our products—from memory chips that help businesses store vital knowledge to mobile phones that connect people across continents— have the power to enrich lives. change is constant and innovation is critical to a company’s survival. our people bring this philosophy to life. anticipating market needs and demands so we can steer our company toward long-term success. Company’s Values We believe that living by strong values is the key to good business. Our leaders search for the brightest talent from around the world. Change In today’s fast-paced global economy. People Quite simply. At Samsung.

” “Innovative Products.” and “Creative Solutions.Co-prosperity A business cannot be successful unless it creates prosperity and opportunity for others." This new vision reflects Samsung Electronics’ commitment to inspiring its communities by leveraging Samsung's three key strengths: “New Technology. Samsung is dedicated to being a socially and environmentally responsible corporate citizen in every community where we operate around the globe.and to promoting new value for Samsung's core networks -. "Inspire the World. 10 . Samsung Electronics' vision for the new decade is. Create the Future.” -. Vision 2020 As stated in its new motto.Industry.

As part of this vision. Through these efforts.” Samsung is excited about the future.” “Partnership.” and “Talent. medicine. Samsung is committed to being a creative leader in new markets and becoming a truly No. we look forward to exploring new territories. Samsung has also established three strategic approaches in its management: “Creativity. Strategies of Samsung in India Product Strategies Pricing Promotion 11 . and Employees. Samsung has mapped out a specific plan of reaching $400 billion in revenue and becoming one of the world’s top five brands by 2020.Partners. and biotechnology. including health. 1 business going forward. As we build on our previous accomplishments. To this end. Samsung hopes to contribute to a better world and a richer experience for all.

Samsung positioned itself on the technology platform.Positioning Hericaial structure Strategies of Samsung Product Innovation Samsung's product range in India included CTVs. Analysts felt that the wide product range of Samsung was one of main reasons for its success in the Indian market. audio and video products. Pricing 12 . mobile phones and home appliances. Its product range covered all the categories in the consumer electronics and home appliances. information technology products.

and enabled it to launch products according to consumer needs. Distribution Along with the launch of new products. This ad was aired in nine languages across Europe. Samsung acquired a new corporate identity. localization of products.Pricing also seemed to have played a significant role in Samsung's success. In the new logo. innovation strategies and strategic planning in a changing competitive landscape. such dominance may not be sustainable in the long run.Nobel Prize Series. reliability and warmth. the idea was to convey the message that Samsung uses Nobel Prize Laureates' ideas for making its products. the words Samsung Electronics were written in white color on blue color background to represent stability. The logo was shaped elliptical representing a moving world . 13 . Advertising and Sales Promotion In 1995. So. This is a management strategy case that explores product design. Samsung also consolidated its distribution system. Samsung products transform into more advanced models. According to company sources. The case also discusses such issues as product design philosophies. innovation strategies. It changed its logo and that of the group. Samsung launched corporate advertisements highlighting its technologically superior goods. The advertisement showed a man (representing a Nobel Prize Laureate) passing from one scene to another. the Middle East. as a first step in its globalization drive. product design outsourcing for consumer electronics products. The Making of a Global Brand In 1993.symbolizing advancement and change. As the man passes through different scenes. Samsung Electronics: Innovation and Design Strategy In January 2008. South America and CIS countries. in order to establish itself in the Indian consumers ‘mind. Samsung Electronics won 32 innovation and design engineering awards at the Consumer Electronics Show. when Samsung entered India. While investment in R&D and product design has rewarded Samsung Electronics with its dominant market position and premium brand perception. especially now that competitors are achieving higher profitability with lower investments in R&D per product. Samsung had 18 state-level distribution offices and a direct dealer interface. The direct dealer interface helped the company get quick feedback from dealers. Samsung launched its first corporate advertising campaign . The words Samsung Electronics were written in English so that they would be easy to read and remember worldwide. Advertising and Promotional Strategies In 1997. it realized that Indian consumers were not familiar with the company.

owned by Venugopal Dhoot of the Videocon group.. Nokia's 58%. Samsung's Plan to Strengthen Its Weaknesses The global cell phone business has been in a funk lately. But while Samsung is the top brand in the U. Sure. In 1998. Samsung has just 3. That has helped the Korean giant increase its worldwide market share to 19% and cements its position as the No. vs. behind Nokia. This process involves the interplay between design and business strategy. At the low end. forming a systematic approach integrating holistic-thinking. with 38%. 14 . In India. RCSPL diluted its stake in Samsung to 26% and in November 2002.K. The approach has proved useful for companies in a variety of strategic scenarios. research methods used to inform business strategy and strategic planning which provides a context for design. why do it and how to innovate contextually. with handset sales off 11% this year —a serious downshift from the double-digit expansion of recent times." says J. both immediately and over the long term. Shin. boosting sales 7% in 2009 without denting its 10% profit margins. though. its share is less than 10%. In smart phones. according to researcher Strategy Analytics. Samsung's reaction to the good news? "We have a long way to go. the company's new handset business chief. there's a big dose of traditional Korean modesty in Shin's fretting.5% of a world market that's likely to grow 31% this year.Design strategy – Design strategy is a discipline which helps firms determine what to make and do. design strategy often uses social research methods to help ground the results and mitigate the risk of any course of action. has bucked the trend. And of the 150 or so new models Samsung will introduce this year. While not always required. Samsung still trails Nokia badly. the FIPB cleared Samsung's proposal to buy RCSPL's remaining (23%) stake.S. Shin is worried that the company remains a laggard in two key segments: high-end smart phones and ultra cheap models for developing countries. Samsung Electronics. only a half-dozen cost less than $100. 2 player globally. Samsung's Marketing Strategy in India Samsung entered India in December 1995 as a 51:49 joint venture with Reasonable Computer Solutions Pvt Ltd (RCSPL).

In 2002. The company established a working group for energy management which meets every two months to share best practices for energy saving and management throughout all business divisions. mobile phones and home appliances. energy management systems and training programs for employees to reduce energy consumption across all operations. Uttar Pradesh. and its home appliances division grew by 21%. Energy Management Strategy Samsung Electronics has adopted various measures such as high-efficiency facilities. Its consumer electronics business grew by 29% and contributed 60% to the total sales. which contributed more than 60% of its revenues. promotions and incentive programs to facilitate energy saving activities at workplaces. low-power vacuum pump technology. Samsung reported sales of Rs. and energy efficient process optimization. microwave ovens. We are also committed to enhancing employees' awareness through diverse training. control and supervision in order to ensure adherence to pertinent laws by the 15 . contributing 40 % of the total sales. energy efficient water humidification systems. Samsung's flagship businesses were consumer electronics and home appliances. These activities encourage facilities to set up highly energy efficient equipment and technologies. Samsung established manufacturing facilities for colour televisions. It also had a presence in consumer electronics. We have instituted a compliance program that includes preemptive and year-round training.In 2002. washing machines and air conditioners at Noida.170 million with 26% growth over the previous year. Compliance Management Strategy - Samsung Electronics has established a new compliance system to prevent and minimize business risks associated with issues such as collusion and violation of intellectual property rights. We also plan to introduce an energy certification program for new facilities and buildings from 2010. information technology products. etc.

We also keep up to date with the introduction and revision of various laws and regulations. Through this. Samsung's strategy pressures competitors Samsung Electronics Co.70 crore (7." said Yeongho Kang. Our compliance activities are broadly classified into prevention.3 trillion Korean won or $7 billion)— migrating into advanced geometries to further reduce costs and proposing a hefty 100 per cent jump in DRAM bit shipment and 130 per cent for NAND memory components. Real life examples are used in training programs as a way of preventing recurrence of any compliance problems that arise." added Kang. After dealing with a compliance issue. There is a separate team dedicated to monitoring activities. monitoring and follow-up processes.226. and operation of a help desk to respond to questions on compliance and all employees and mitigate risks related to violation of laws and regulations. "We will accelerate our efforts to strengthen our competitive edge and continue to widen the gap with our competitors to achieve further growth and profitability. system-based self-inspections. 16 . Ltd is piling on the pressure in the second quarter with a flood of investments— approximately Rs. Despite this. will come later.28. which they admit will benefit the entire memory component market and is critical to profitability in the embattled sector. distribution of manuals on compliance. Samsung strives to reduce direct and indirect emissions of greenhouse gases and prevent potential risks by carrying out initiatives in voluntary GHG reduction and the development of an inventory. vice president of the semiconductor business at Samsung. "We plan to make massive investments and try to expand our market share through implementation of aggressive investment plans and migration into advanced geometry. That goal. Samsung executives speak little about boosting depressed DRAM average selling price. Climate Strategy Samsung Electronics has been establishing corporate-level strategies to address its direct and indirect impact on climate change. Prevention activities include employee education. in a presentation to the investment community following the release of the company's first quarter results. we analyze the related process and outcome to find the fundamental cause and pursue improvement measures.

Once known for its televisions and other home appliances.The History of Samsung Mobile Phones - Although its line of sparkling smart phones seems fresh and new. Samsung Electronics. for the first time in its history. From this point until the early 1990s. Samsung recently eclipsed heavyweights Sony Ericsson and Motorola as one of the biggest cell phone manufacturers in the world. South America and Japan were enjoying the high-end design of Samsung Mobile phones. Rough Beginning Samsung Mobile's first ever offering was a car phone it introduced in 1986. but sales were low because demand was low. was founded in 1969. which boasted a smaller and sleeker design and better sound quality. Samsung Mobile released the SH-700 series. 17 . With a better product and a more aggressive marketing campaign. In the 3rd quarter of 2008. A few short years later. Samsung nearly dropped its Mobile division. The Global Market Samsung cell phones found its way into American hands for the first time in 1996. manufacturing was halted. Samsung Mobile's parent company. Samsung Mobile has been around since 1983. With Motorola holding a sizable advantage over the rest of a fledgling mobile phone field. Samsung Mobile Today In early 2009. Samsung Mobile would introduce mobile phone models. Turning Point In 1993. Samsung would reclaim more than half the mobile phone market share in Korea from Motorola. Samsung Mobile's global market share stood at more than 17 percent. and reception was poor. Samsung Mobile shipped more than 50 million handsets in a quarter--despite a global recession. Because of poor reception and sales. The designs of these early attempts were bulky. second only to Nokia. when they partnered with Sprint on a line of sleek and compact phones.

and had ingrained the approach in the corporate culture with an annual conference presided over by their entire top management. AT&T. naming the start-up company a Korean word which translates to "three stars" in English. Samsung sold 12. Samsung is only 1. BOS is still at the core of the Samsung product strategy and company has been able to make the necessary adaptations according to the business environment and changing consumer preferences. its sales are expected to top 14 million units in the current quarter. The virtual space will be used to showcase range of mobile handsets to teenagers the future consumer group.2 per cent. Sprint and Verizon Wireless. Samsung Mobile enjoys agreements with major cell phone service providers such as TMobile. One of the successful results of the MDC was Flat panel LCD TV Bordeaux. surpassed 3 million units within a week of the launch. Apple and Research in Motion (RIM).4 percentage points from the previous year to 12. One of the key successes of VIP centre was. Advance orders for Samsung’s Galaxy S2. 2008 has been a tough year for Samsung as the Chairman of the group was indicted and forced to resign on tax evasion charges. in a competition-less way. Global. Many cross-functional Blue Ocean project teams were at work.Samsung Facts Lee Byung-chull founded Samsung Group in 1938. At this rate. In 2007 Samsung keeping focus of teenager customers has launched a store in the Second Life Site. It now ranks fourth after Nokia. In 2006 Samsung launched Market Driven Change (MDC) where its focus was on the consumer insights and how to develop better and new products using consumer insights. LCD panel market since 2002. Samsung Mobile and T-Mobile introduced the Memoir.6 million smart phones in the quarter ended March 2011. within five years of entering the mobile phone market. In early 2009. the flash 18 . boosting its global Smartphone market share by 7. Value Innovation Program centre was started in 1998 and by 2004 the centre was playing a very key role in rapid growth of Samsung to become the world’s top consumer electronics company. a cell phone with a "Best in Class" 8-Megapixel camera. This TV has played a crucial role in Samsung overtaking Sony in the LCD market. which was released in April 2011. in 2003 Samsung has become the No2 player in the mobile phones market. posing a threat even to Apple. Samsung BOS strategy has also helped it to maintain top position in TV market (since 20062010). first component of Blue Ocean Strategy is Samsung’s primary tool for product development. Blue Ocean Strategy (BOS) – Samsung Electronics 2006-2010 Value Innovation.2 percentage points behind RIM and is expected to grab the number three spot in 2011 if it maintains its current growth rate. Samsung also failed to acquire SanDisk. Samsung Mobiles: Smartphone strategy for the Indian market Samsung Mobile’s line-up of smart phones and tablets has helped the handset maker rally a significant share in a market that is largely dominated by Nokia.

's popular iPad. Samsung is still innovating in a big way and it still relies on a basic assessment: product’s competitiveness is everything. called "bada. 2010 saw Samsung launching a a new tablet PC named Galaxy Tab as the latest device meant to rival Apple Inc. and it must be kept away from price war 19 .memory giant. called Digital Media & Communications Business. Early 2009 Samsung merged its LCD (liquid crystal display) and semiconductor business into one business unit called Device Solution Business. and to reduce indirect greenhouse gas emissions from all products by 84 million tons over five years. Samsung launched green management initiative that is intended to make Samsung a leading eco-friendly company by 2013. The company plans to bring down smart phone prices significantly. Samsung launched mobile phones Wave based on Bada platform along with its first smart phone on Google’s Android platform – Samsung Galaxy. 2009 also saw Samsung enter into Mobile OS market with launch of its own open mobile operating system. The 'Eco-Management 2013' plan seeks to reduce greenhouse gas emissions from manufacturing facilities by 50 percent." which can be used to develop applications for Samsung phones. Fall in sales of microchips and TVs has hit the company badly due to recession. Samsung launched 3D LED TVs and at a premium pricing and changing the home entertainment experience from 2-D to 3D. It is also merged its digital media and its telecommunications business into one business unit.

Global Digital & Social Media Strategy at Samsung Mobile Samsung is justly one of the largest and most popular brands in the Netherlands. in Why Samsung is number one handset/smartphone vendor: why your mobile strategy should emulate Samsung. But Samsung isn’t only a global mobile giant. Samsung became the top mobile manufacturer in the world. “Companies have to fit their mobile strategy to suit consumer choice. “Companies that are prescriptive in their mobile engagement. Not only as a brand in itself. According to mobiThinking. But whoever’s good wants to get better. Samsung’s enthusiasm for social media is clearly visible. 20 . are pushing all their other customers (both those that have a different handset and those who simply don’t want another app cluttering up their cell phone) into the welcoming arms of their competitors. it has become increasingly critical for companies and brands to engage with mobile consumers on the devices of their choosing. but on social media Samsung is a pioneer as well.” mobiThinking says. epitomized by companies that only offer an iPhone or Android app. Apple’s. It offers mobile phones and devices at a variety of price ranges and hasn’t pigeonholed its buyers into using one operating system over another. taking the spot held by Nokia since 1998 and overtaking competitor. The meteoric rise of Samsung Mobile is no accident. In a digital environment that includes an estimated three billion mobile users worldwide. share of the smartphone market. With 20 million followers on Twitter and 15 million Facebook fans. it’s also a company that understands the value of social currency.” This is an area in which Samsung Mobile has excelled. a resource for global digital mobile marketing agencies. Last year. Samsung Nederland is present on the most popular social media channels and knows how to create cool content about product.

Its biggest competitors don’t come close.” to drive business results. has a handful of incarnations of its iPhone line.Samsung allows users to stick with the Samsung brand while being able to choose from several different smartphone operating systems. It also manufactures an astounding 153 varieties of handsets that it makes available worldwide. but only eight varieties in the US. says Vivaldi Partners. and Bada. including Android. mobile phone varieties. or the “degree to which customers share a brand or information about a brand with others. 21 . and its smartphones are now only available on the Windows platform. the third largest handset manufacturer. Windows. in which 1.” in its recent Social Currency Impact Study. Apple. is their use and understanding of social currency. The secret to Samsung Mobile’s digital marketing success. has been markedly heightened by its successful social media strategy which has accommodated the new mobile consumer environment by embracing the shift towards what Vivaldi Partners Group refer to as the “Social Currency Paradigm. while ZTE offers 22 handsets with Android and Windows options. the fifth largest handset provider carries 61. partially as a result of offering consumers more choice. Samsung Mobile’s broad reach. Nokia offers 22 handsets worldwide. Customer choice has given Samsung an edge in the mobile market.9 billion mobile devices were sold last year alone. primarily Android. according to mobiThinking. and LG.

Samsung has been able to draw in new socially engaged consumers and gain competitive advantage. including Sony. and loyalty towards a brand. conversation.Social currency wheel Samsung According to Vivaldi Partners. This is a global digital strategy that some of its competitors in electronics. 22 . through its social media presence and its website. says Max Nisen. Samsung has been particularly successful at driving consumer behavior towards the consideration to purchase. In this way. to network with others. in These Social Currency Wheels Show Why Everyone Loves Samsung And Forgot About Sony. information. says Vivaldi Partners. have failed to employ as successfully. advocacy. utility and identity. by fostering an environment of advocacy and the genuine celebration of its products and services. such as friends and family members. Samsung has put a great deal of consideration into socially enabling its customers and brand loyalists. by taking advantage of the boost that social media enable in the “six degrees” of social currency: affiliation. the purchase (and the awareness of it).

a global digital and social marketing strategy must be actively adapted to an increasingly mobile world and enable customers to talk with and share with one another. like Samsung’s. and build communities of brand advocates and social media influencers. mobiforge. a holistic approach to cultivating social currency. Bibliography www. As Vivaldi Partners and Nisen point 23 .wikipedia. purchase and loyalty. as Samsung’s example shows.Much of Samsung Mobile’s more recent social media success has been due to its efforts to launch its latest lines of Galaxy smart phones and tablets. includes considering the impact of customers’ social media behaviors on producing three outcomes: consideration. amplify marketing campaigns.

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