PowerPoint Presentation

Samsung Electronics Global Marketing OperationsPresented by Group 6:

Akash KediaA42Neeraja PuranamD03Aditya KherA50Sehar KhannaD05Himanshu ChhikaraA55Rahul SinghaiD10Nikhil YadavB44Akshay HebleD11Rohit GodboleD01Vidisha SharmaD20Abhishek NarayanD02Sourav GangulyD48Case SummarySEC began operations in 1969 as a low cost manufacturer of black and white televisions

1970: Acquired semiconductor business beginning of turnaround phase

1980: Mass production became major supplier of commodity products

Company focus: Manufacturing. Profits reinvested in R&D, manufacturing & supply chain activities

The Asian Financial Crisis1997: Asian financial crisis

Negative Net Profit for SEC

Major restructuring: Dismissal of 29000 workers and sales of billions of assets

Result: Reduced their debt drastically from $15B to $4.6B

Increased net margins from -3% to 13%Taking ControlIn 2002, posted Net profits of $5.9B (in sales of $44.6B)

2003: Most widely held stock among all emerging market companies

Remained committed to core competence: MANUFACTURING

1998 2003: Invested $19B in Chip factories and $17B in manufacturing facilities for TFT-LCDsProblem StatementBrand Recognition: Sold products mainly to OEMs, so company had very little interest to work on the Samsung brand

Concept of Marketing: Managers perceived marketing as nothing more than selling; only required when product is weakTHREATSOPPORTUNITIESWEAKNESSESSTRENGTHSAccelerator Market Brazil

Brand Awareness

High Demand across all categories

Repeat Purchase

Brand Loyalty

Existing Trust in the Brand can be leveraged

Hi tech product portfolio compliments rapid mobile usage growthSTRENGTHSNeed to upgrade Brand Image

Fragmented retail distribution hampers volume growthWEAKNESSESTurnaround Market USA

Brand Awareness

High Demand across all categories

Repeat Purchase

Brand Loyalty

Credibility among customers on the rise

Improving relations with the channel partnersSTRENGTHSAwareness & Loyalty still less than Sony

Still perceived as a Value BrandWEAKNESSESAdvanced Market China

Brand Awareness

High Demand across all categories

Repeat Purchase

Brand Loyalty

Perceived as a quality brand with high repeat purchase tendency

Purchasing power focussed in major cities in line with our supply chainSTRENGTHSHigh exposure to low margin segments

Low volumes leading to lower profitsWEAKNESSESCURRENT SITUATION

Business OverviewNews on the blockTop Global Smartphone Sales and Market Share in 2012: 213 million units of Samsung sold with best industry growth rate of 16% in Mobile PC Sales

Samsung to develop new mobile office software by 2014 to reduce dependence on Microsoft for operating system and software

Apple Samsung legal battles continue over patent infringement

Samsung has become the world's biggest advertiser, spending $4.3 billion on ads in 2012, but its global brand value of $39.6 billion is less than half that of Apple, which spent only $1 billion on advertising

The underlying problem is that Samsung has established itself as a dependable quality brand, not a differentiated or premium quality product, so it does best where it's not competing directly with AppleSamsung Electronics pioneered the worlds first SMART camera. In 2012, anticipating rising interest in enjoying, editing and instant sharing of images after shooting, Samsung released GALAXY Camera

Continuing innovation in the AV business, 2011 Samsung launched the worlds first wireless audio dock with a built in vacuum tube. In 2013, they employed a vacuum tube and wireless connection to TV to sound bar speakers AirTrack HW F750, ensuring lead in the global AV market with their new audio system

Many innovative products in printing solutions and household appliancesTo be known as innovativeMarket PositionVERTICAL INTEGRATIONManufacturing as a core competencyFlexible plant locations and R&D facilityTo avoid the commoditization trap SEC customized the production of its memory chips

HARDWARE FOCUSDeveloping no proprietary software and content (music, movies and video games)

PRODUCT BREADTHSamsungs product diversification differentiated the company from its competitors

Market PositionDIGITAL PRODUCT INNOVATIONTransition from Analog to Digital technologyPropelled Sashimi Theory where new fresh technological products are sold at higher prices but decline later

DIGITAL CONVERGENCEMerging of different technologies into one major product

AVAILABLE ALTERNATIVESAdvertise Less & Focus on R&DProsUnique Products and Competitive advantage especially in a fast paced technology industryLong term IncomeConsLikely to get lost in the clutter of products in fragmented product linesLosing out on YouthUncertain outcomes Different countries see Samsung as a different brand. Streamlining the Brand Identity becomes crucial to become a global brand which would be lost outOne size fits all Strategy: Advertise to the sensible brand buyer and dont follow a more complex segmentation strategyProsNo additional Investment in creating a new Brand Identity for Sub BrandsEasier momentum to garner for one brand with certain amount of budgetsCore essence of brand gets extended to all product linesOptimization of SpendsLaunching a new product under this strategy gains recognition easilyConsSince Samsung is using its M Net software to optimize spends penetrating culture of individual countries would be difficult Product failures affect other brands as wellPremium positioning of brand affects lower range productsCustomization advantage of Samsung is lostComplex segmentation: Newer sub brands other than Samsung brand name which cater to more niche segmentsProsBranding and products suitable to each country can be highlighted without affecting parent brand image while leveraging the brand SamsungCustomization can be highlightedDifferent features of product can be highlighted using new brandEasy to diversify (Organic growth)ConsPossibility of cannibalizationMore investmentDifficult to convince line managers