 Global leader in semiconductors and digital technologies

 Samsung India commenced its operations in India in December 1995

 Sales turnover of over US $ 1Bn in just a decade of operations in the country

 Core competency in the field of semiconductors which is backed by it’s R&D capabilities and
manufacturing scale

 Emerge as one of the most unique brands creating innovative and superior digital products
every year

 From being a virtually unknown entity in the Year 1995, brand Samsung today enjoys an
awareness of over 95% and a positive opinion of around 80% in the country today (source: BAS
2004)

 Samsung has very successfully leveraged its association with Cricket and Cinema in the form of
‘Team Samsung’ and ‘Samsung IIFA Award’
  In 2003, LG was the market leader with a share of 17.6% followed by Samsung at 15.8% in
Consumer Electronic Products

Consumer Electronic Products like :

 Colour Television (CTV’s)

 Refrigerators (Frost Free)

 Air Conditioners

 GSM Handsets

 Front Loading Washing Machines

 LCD TV, Plasma TV

MARKET PENETRATION

 Working towards reaching out to smaller cities.

 Planning Dream Home road shows.

 Expanding its sales network.

 Revamping sales infrastructure.

 Samsung Marketing Academy – set up to train

frontline sales force and shop demonstrators.

Our Vision

Samsung is guided by a singular vision: to lead the digital convergence movement.

We believe that through technology innovation today, we will find the solutions we need to address the

challenges of tomorrow. From technology comes opportunity for businesses to grow, for citizens in

emerging markets to prosper by tapping into the digital economy, and for people to invent new

possibilities.

It’s our aim to develop innovative technologies and efficient processes that create new markets, enrich

people’s lives and continue to make Samsung a trusted market leader

Our Mission

Everything we do at Samsung is guided by our mission: to be the best “digital-Company”.

Strength

 Strong marketing efforts which appreciated brand value of 200%.

 Only non- Japanese brand from Asia to be lifted in the top 100 brand value by Interbred Inc. &
ranked 34th.

 3rd
in the global cell phone market after Motorola & Nokia.

 World leader in the memory chip market.

 Weakness

 It is also the world leader in around 17 product category.

 Back support as to covered the group’s debt through personal stock worth 2.8 trillion won.

 In the late 90’s research labs were established in Tokyo & California.

Opportunity

 Samsung Elec. Developed the world’s first giga bit DRAM and can expand more and more.

 Samsung established its commercial vehicles plant.

 In the year 95, due to lack of new products & unfavorable exchange rate between the dollar and
yen, SONY ran into problems.

 Following various quality initiatives such as Six Sigma; for manufacturing following Assembly
manufacturing through optimal utilization of recourses.
Threats

 Cash crunch due to south Asian crises.

 Sold 10 units if its business units.

 Samsung had a poor image in the global market and its products had a high defect rate, many
consumer associated its product with poor quality.

 Selling of its real estate & other assets and cost cutting measures on a large scale to generate
cash.

, current positioning of Samsung.

Acc. to the case data we can say…

 That after SONY, they have the potential to be the No.2 brand globally.

 It has the brand value of $8.1 billion and was ranked 34 th.

 Analyst says that both (Sony & Samsung) needed each other for their survival.
1938 : Samsung conglomerate was founded and produced agricultural products

1969 : Samsung Electronics Co.( SEC) was founded as a low cost manufacturer of black and white
televisions.

1970: Samsung acquired semiconductor business thereby setting a stage for future growth in
Electronics.

1980: Samsung became a more comprehensive electronics company

– Started producing commodity products like TVs , VCRs and Microwave Ovens.

– Sold their products to OEMs.

– The mission at this time was to pay emphasis on “Manufacturing Quality and Technical
Leadership”.

1993 : Samsung started its first imitative of building a Brand Name as a long term goal towards
profitability by introducing the “New Management Initiative”.

– Major focus: To revamp the initial image of the company from “a cheap OEM” to “a
high value added product provider” focussing on Innovation, Premium Product and
Brand Value.

2002 : The company recorded net profits of $5.9 billion on sales of $44.6 billion.

2003 : The company was one of the most widely held stocks among all emerging market companies.

Mission And Objective:

“The companies mission at this point of time was to become one of the top 10 global brands by 2005
contemplating the companies transformation from an Also-run into a Blockbuster Brand.”

DIGITAL PRODUCT INNOVATION :

- Transition from Analog to Digital technology

- New innovative products

- Setting new standards for quality performance and award-winning design

-Propelled “Sashimi Theory” where new fresh technological products are sold at higher prices but
decline later

DIGITAL CONVERGENCE :

- Merging of different technologies into one major product

- Multiple technologies linked by one major network

IMPLICATIONS FOR MARKETING

Market Segmentation-Samsung segmented its products to all ranges from middle segment to higher
classes with a goal to reach the target in all product lines

Product Differentiation- Samsung launched wide range of new innovative products catering to its varied
segments

Technology Competence- Samsung focussed on Digital technology as its core competence.

COUNTRY WISE SPECIFICATION

USA : Here the Brand was at a turning point stage where Awareness and Brand Loyalty were still below
those of the first tier brands like Sony .

Consumers viewed the brand as a Reliable, Upcoming and Credible w.r.t. Sony that had
an image of being an Established and a Matured Brand.

Europe : Brand was stronger in Southern part as compared to Northern part .

Europeans were loyal towards their own Brands and fragmentation of retail distribution
made the situation more worse for Samsung to generate profitability.

Russia : Samsung had an image of being “Peoples Brand” but the motive of building a product
innovator and market leader was still a distance away.

China : Brand image of Samsung in China was into a transition phase heading towards the advanced
stage. Samsung had captured one third of the Chinese market but profit margins were slim.

India : India was an upcoming market opportunity with immense potential in value added reselling
of software products. The company became a major supplier of Software products and had a Brand
recognition better than Intel and Microsoft.

Swot Analysis Of Samsung

SWOT analysis is the tool which helps the organization to understand where it stands. The
SWOT analysis of Samsung make it understand that where Samsung stand in the market.

Strengths

Samsung is technologically very advanced; it has heavy assets of technology. It is known for its
technologically advanced products.

Samsung crushed new product concepts in five months. It is strong corporate brand and known
for its quality products and advanced technology use.

It attracts customers by offering new and innovative design through understanding the customers
that which type of designs are suitable to customers and what they want or asked about.

It heavily invest in technology, product design and human resource, because for the success of
every organization human resource plays a major role, with out human resource no product can
be made that’s why Samsung gives more important to the human resource.

Samsung focuses more towards the innovations and try to keep improving the products to attract
more customers and capture more market share.

Weaknesses

Although Samsung focuses innovation but it is not proactive to introducing new products, it
waits to attack the competitors. It also lacks in product differentiation.

Samsung caters mass market instead of niche market so for this purpose it sets low prices of
products and low price products seem as low quality products, so Samsung products perceive as
low quality as compared to competitors’ products.

Most of the Samsung products are not user friendly which is a hurdle for Samsung to make it
market leader.

Opportunities

Through make itself distinctive from competitors, it can gain more market share.  By providing
distinguish services it can increase its customer base.

Another opportunity is product variation, by introducing unique products and existing products
with variety; it can attract its target market and can get more market share.

As the demand for the cell phone is increasing as compared to other electronic market, Samsung
has the great chance to introduce user friendly mobile phones at affordable price. It would help
to beat customers and also to lead market share.

Threats
Samsung competitors in electronic market are more dominant e.g. Sony, Panasonic, LG etc in
home appliances and Nokia, rim, 3G, etc in mobile phones market so it has to struggle a lot to be
the market leader.

Telecommunication industry is growing day by day so the no. competitors also increasing so it is
difficult for Samsung to establish in that industry, it is more behind in this industry as compared
to other electronic items.

Samsung advertisement is not excessive while the competitors advertise their products
excessively which can take away the existing customers of Samsung.

Values & Code of Conduct

Samsung Electronics endeavors to become a world leading company by following its management
philosophy of “Devoting its talent and technology to creating superior products and services that
contribute to a better global society.” Samsung Electronics’ value chain of “Management Philosophy,
Core Values and Management Principles” is rooted in this management philosophy and constitutes the
spiritual guidelines for all its

employees in their effort to realize the corporate vision of being a world leader.