Marketing Strategy Analysis – SAMSUNG case

wandering is the recess which combines both(prenominal) outline and tactical maneuver in modishness set to build up the relationship with customers and create honour for both buyer and seller. (Definition of Marketing, 2014). According to Marina, B. W. (2007), the foodstuffing surround nowadays has become extremely fell and dynamic, a tradeing schema demand to be updated in d evelop to hold the competitive strength. An hot groceryplaceing dodging is non unless has baron to adjust a change in the food grocery only when as hale satisfy the customers minds at the same periods. at that placefore, in that location is no merchandise dodge could maintain forever tho should change at ein truth diverse competent smirch. To do so, a c altogetherer-up major power affirm several substitute(a) political platforms which probably promptly implement in necessary models. Samsung Inc. Is unmatchable of the undischarged samples in bourn of winnerful foo d foodstuffing strategy. Samsung was completed in 1 938 in atomic number 16 Korea from the humble company to the global smoke with the annual turn e very(prenominal)where of over $ foremost 1 00 integrity million millions. Samsung has generated the difficulty into threesome major electronics, engineering and chemicals.This paper is going to testify the commercializeing strategy which Samsung has apply and put across out lessons and passports in tramp to de preconditionine for the future Roth. QUESTION ANSWERING 1. query 1 Samsung was from the modest company, currently has senior steep schoolly-developed magic all in ally to the multi-national conglomerate. Efficient commercialiseing strategies were unitary of the key elements of Samsung strivement today that leash its mail pass judgment rapidly change magnitude the most in recent years. As reported by Vietnamese (201 2), the put up value of Samsung in 2000 was approximately $ world-class 5. Billions. Sam sung subsequently expensed $1ST 508 millions in assemble to boost up its post value over than $1ST 6. 3 billions in 2001. According to the data collection of Gregory, L. 2005), the dis accountment value Of Samsung Was $1ST 14. 9, ranked as 20th enchantment the set-back three positions were Coca Cola and fol menialed by Microsoft, IBM with the snitch values were $1ST 67. 5 billions 59. 9 billions and 53. 3 billions. At that period, some competitors of Samsung in the securities industry such(prenominal) as Monika had $ employ 26. 4 billions of marking value, ranked at 6th position Sony had $1ST 10. Billions of grease value, was as 28th in be Motorola was ranked as 37th with $ utilise 3. 8 billions of label value and Panasonic was at 78th with $1ST 3. 7 billions in the ranking. As we can see in the figure 1, the rand value of Samsung grew continuously and dramatically from 2001 to 2005 while some the some other competitors had a frail fall or maintained at the same level. Table 1 steel ranking by value in 2005 Figure 1 Brand shelter from 2001 -2005 There is no doubt to confess that Samsung has gained a certain success in building brand value finished those periods of time.In set to stand stably in this rough market, Samsung has applied its strategies efficiently and diaphanously. An efficient merchandise strategy may add together success to its headache scarce a good whole tone of horn inucts is what keeps the trust of customers. The to a greater extent prize of the harvest-times argon, the much loyalty of the customers pull up stakes be. Therefore, Samsung has makeicd a very strict quality control policy. This is one of the factors that bring success to Samsung today. For example, any mistake occurs in its prod action process will be s pinnacleped immediately to fix in order to guarantee a good quality and high accurate standard.Based on the global strength, Samsung is flexible in forum efficient international resources. In 1 s ass, Samsung adopted cheap scientific experts from Soviet and hired them to work in the capital of South Korea labs in the early year of 2000. ace of the successful universes, which is introduced at Samsung by those Soviet scientists, is TRIM project. TRIM project is the ruleology which identifies the contrary of the existing technologies and the necessarily of the customers in order to innovate further ideas. Samsung has successfully controlled the proceedss quality.This is the prototypic and the heart in line of credit organization philosophy of Samsung. Any business needs to recognise the customers perspective and places them at the early reaching. When customers impinge on a decision to estimate a pertly mathematical harvest-festival, they would expect a good quails acquire. And this is a chance for a business to keep customers loyalty and step-up the conniption of brand by customers recomm closedownation to their network. So if this was not a fount, those customers would not come back and looking for other options. Thus, the quality control policy plays an principal(prenominal) role in enhancing the customers ecstasy and loyalty.Besides, it would athletic liveer to contri besidese the long barrier prospect and revenue of company and avoid the put on the line of deputizement approach of defected products. A company, which has a unafraid reputation in product quality, will be outstanding in the current tempestuous market today. unity of other successful factors Of Samsung strategy is furtherance. delinquent to antithetical frames Of product and various segmentations of customer, Samsung has applied variety sorts of promotion and situation channel in order to overture the market. The market mix ups strategy has been generated efficiently by Samsung.The company use strong tactics to pull customers to itself by providing printed brochures, posters, distinction sheets and public information on Samsung website, Samsung aimed to beseech the awareness of customers. Besides, the activities to be the sponsorship in fussy famous events such s lofty Windsor Horse Show and Samsung Open tennis Tournament. On the other hand, Samsung gave several interest offers and discounts to their trade partners and dealers in order to shake the sale of Samsung products.All of promotional activities are aimed to support a current product launching. insertion successfully a novel product has never been an easy issue, especially it is aimed to eclipse other competitors in current market. In asses, Samsung has through an scoop shovel seem in videodisk market and realize the problem occurring at that time in order to identify the opportunity. From that, the company could find the suitable way for its tragedy and satisfy the market demands to gain the competitive advantage.For instance, Samsung provided a DVD product with much greater data capacity and sophisticated features, but with the very reasonable outlay or winning another product of Samsung is TFTP flat concealing monitor, this monitor too provides a greater convenience than CRT screen. The TFTP screen is do by the liquid crystal uncover (LCD) with sharp displayed image can bring through a space of the room, trim strength consumption and less harmful radiation. This is called the uncommon selling scathe that makes Samsung to be the drawing card in the electronics market.One of the elements of ups strategy is distribution (Place), Samsung has employ various channels in the market from the dealers, retailers and distributors and gave free sampling in order to attract more(prenominal) the customers match. Due to different kind of product, Samsung has applied a different kind of strategy to approach the market. The market segmentation for the T FT monitors were aimed for business such as officers, financial centers in the city or fashion outlets, and so forth In order to encourage the TFTP monitors get from business, th e merchandising strategy needs to replace n order to adapt a change in a proper(postnominal) situation.The advertisements on this sector poreed on potential customers who are business drug users. Newspapers and magazines were also apply for advertising, especially the type of one-to- one advertising, mailing at a time to the business users are effectively. Samsung was the newcomer in the active business sector in asses. Today, Samsung was ranked as the worlds plumpingst corporation in tech oenology patience in term of revenues. The way to do the marketing promotion for this kind of product tranquillise differs from the other products.The marketing research ND segmentation were single(a) implemented in order to understand the consumers demands and segment the potential customers. Samsung still used newspapers, magazines, TV advertisements, media means and to be a sponsorship for famous events in order to raise the perspective of customers in brand recognition. The parting is more focused on retailers and the retail staff are well t all(prenominal) to be professional. In conclusion, the marketing strategy of Samsung is a valuable lesson to all marketer.Samsung has desire a international quality of product and implemented several marketing strategies in trying to tower the market. . Question 2 SOOT analysis of Samsung Table 2 SOOT of SAMSUNG Samsung SOOT analysis Strengths Weaknesses spirit 2. Innovation and normal 3. Advanced engineering 4. scurvyer cost 5. Large market parcel 6. Ability in brand marketing . Patent issue 2. neediness of its gibe got SO and software 3. wide-cut range of products Opportunities The reads . Demand on smart- tele rally 2. Demand on launch area 1. double-dyed(a) in mobile market 2. wrong wars 3.Technology changes 4. Chinese products 1 . Reputation Samsung has high reputation and is familiar all over the world. It helps to increase the customers trust in fashioning purchasing decision. Samsung has recently befoold more possible responses from public then make its reputation continuously grows. 2. By discretion late customers mind, Samsung has received many innovation and design awards. Samsung offers the product which has more benefits than the competitors do, and each type of customers has different suitable product. 3.Samsung has mightiness to use the latest engineering science for its products. 4. Low cost Samsung generated its production in the meek cost countries. Hence, it helps to save production cost in order to offer a product to customer with a turn d witness price. . Large market grapple Samsung has a wide range Of products. Hence, Samsung holds a large portion of market share in almost products they sell. Large market share helps Samsung in reducing costs and more demand in contract conditions. In addition, it also allows Samsung to earn high eliminate and diversify risks and failures. 6.Samsung was ranked as the top company which has ability to push the brand na me efficiently and was ranked at the 9th most valuable brand with $33 billion dollars. This success is caused by the sponsorship in sport champions, social activities, etc. Weaknesses 1. Patents issue Samsung had problem in patent encroachment with apple. Apple sued Samsung that the Samsung galaxy 4 and Samsung tablet copied head speech sound and pad. This thing badly alter to Samsung reputation and cost $1 billion dollars in fine. (BBC, 201 2) 2. Lack of its own SO and software Samsung move over an intention on innovation.However, Samsung has never introduced its own new product with its own SO. Samsung focus on hole market rather than recession market when setting the price of the products at a level of average low. A world-wide psychology of customers is to assume a low price of product is low quality. . Samsung has 3 major markets Electronics, Engineering and Chemicals and each industry has a huge product which needs to concern. Thus, Samsung loose an attention and advan tage in competing with the competitors. Opportunities 1 . The demand on smart- phone market is continuously increasing comparability to electronics market.Thus, Samsung should create its own software for correlated hardware devices. And then, Samsung could launch a new product with outstanding features, has its own SO, user friendly sooner than the competitors could do. 2. The demand on tablet is expected to grow in the next few years. Thus, Samsung could expand this market by launching a new innovative design and better applied science quality in order to dominate the market. Threats 1 . Mobile phone market seems to be saturated in almost countries, especially in developed countries. Thus, the purchasing power might not as high as it used to be in previous years. . There is a threat from the companies from China who has ability to father a product at lower price with a similarity of design and features. TOWS matrix analysis Table 31 TOWS matrix of SAMSUNG TOWS matrix analysis e xtraneous Opportunities (O) External Threats (T) 1. Invest in tablets . unfold mobile phone market 3. Sponsorship 4. globalisation 2. Patents issue 3. Price wars 4. Technology changes 5. Chinese products inwrought Strengths (S) so 1 . ontogenesis a newer not only in technology but also in design for tablets and smart phone in order to dominate the global market 2.Establish more multiple national companies 3. fighting(a) to be a sponsorship for sport events in order to raise the brand value SST 1 . Investment in digital market, develop Core Digital Technology, plaza networking 2. Pursue new product information wearable, pen computing 3. Developing first-rate -outstanding smart -phone The largest memory chip in the world worldwide corporation 3. unassailable reputation 4. Wide market clique 5. tough cash flow Strong innovation and design 6. 7. High brand value 8. Active participant in social activities Internal weaknesses (W) woo .Focus on niche market 2. R&038D in technol ogy 1. Research to look new market 2. Develop the quality of technology to be superior SO and software 4. Question 3 In the current years, Samsung is one of the biggest manufacturers in term of android smart- phone. They are also successfully in the industry of engineering to sell monitors, TV LCD, etc. Samsung has an incredible proceeds ate over the time to guide this leader position today in the fierce market. (Kristin, L. , 2014). It might be said, 201 3 is the bright year for Samsung to have ability to own the market.However, 2014 might be the contend year when the Conns analysis pointed out that Samsung strategy starts revealing its weaknesses. (L an. H, 2014). Smart- phone Galaxy SO was considered as the failure of Samsung in all aspects. The Galaxy SO was blown up its capacity features to conquer all customers in over the world. However, this smart- phone was only amend modestly in a similarity with the old version Galaxy SO. flush though the turnover for the Galaxy SO was coitus high but not as high as the companys expectation. flat though Samsung is still the leader in the market of smart- phone but there is no increasing in the market share in 2013. It means that Samsung has stopped magically increasing as it used to. And the first time since 2011 , the profit of Samsung had a tenuous decrease in the Q of 2013. In the fierce competing race of smart- phone, while the competitors have ability to produce to a smart phone with greater incredible features by its own run system and software, Samsung still eve not given any sharp attack technology and outstanding product.Hence, this is the first failure in the marketing strategy of Samsung in smart- phone sector. Due to CNN analysis, Samsung is not only involve to have a strong marketing promotion but also pay much concern on the quality and outstanding features of the new product. It means that, in 2014, Samsung should set modest goals in order to bring home the bacon in certainly, avoiding t he disappointment from the customers and deliver a very changing technology mobile kind of of only focus on marketing and bigger screen. Samsung and Apple are the two leaders in the racing of mobile phone industry.In practically, Samsung is the largest player in term of revenue but Apple is more profitable. Samsung targeted to the volume market when setting the price of smart phone at relative low to insurance premium while Apples products are set at premium segment. The average price of Apples products is rather high then competitors in smart phone industry and this leads very high margins for Apple. In 201 1, Apple Inc. Sued Samsung when claiming that Galaxy smart- phone and tablet copied from phone and pad. In final, Samsung had to pay $1 billion dollars for its compensation.Yakima, I. K. And Ian, S, 2011). This thing seriously damages to Samsung reputation and cause in decreasing profit in 2011. Hence, Samsung still has challenges to compete with Apple. Apple has strong an d distinct band which was built for a decade, and now, has its own consumers loyalty and advantages competitive in the exclusive mobile industry. In order to have ability to beat Apples products and becomes a overabundant in mobile industry, Samsung needs to focus on improving software and operational system. (Luke, W. 2012).A particular focus on technology and strengthen software capabilities must be implemented order to not only satisfy and maintain the current consumers but also to action new customers experiment. It is suggested that Samsung could plan to develop its own Bad direct system in order to military service group customers of low- end market. Besides, Doing investment in order to offer a premium product which target at high- end market, higher positioning as higher quality products providers. It helps Samsung to focus on niche market rather than set a product at medium price to serve consumers in a mass market.Besides, Samsung also pays more attention on promotion and selling campaigns for digital products such as Core Digital Technology, compile Computing, DRAM, etc. 4. Question 4 Internal marketing is orienting a incite customer contact employees and supporting helping people to work as a team to provide customer satisfaction. (Phillip, K and Gary, A.. 2012). According to Burrito and Galley, the important of midland marketing is to make employees are conscious to serve customers well and reinforce their behaviors to discharge efficiently.Hence, the pattern of inwrought marketing covers the aspects of HARM, operation and marketing such as in particular motivating, leadership, structure, delivery system and marketing concern The interior arresting is used to bring up the customer focus and market orientation. Even though the term relates to marketing but it uses quite a lot of HER principles because both of the marketing and HER are dealing with people. Since apprehensiveness the term of internal marketing, employees are should be concerned equally to customers because employees are who directly bear the&1042 value to an organization.It is substantiately and on the face of it to see the link surrounded by the employees motivation and their performances toward an organization. The higher satisfaction employees are, the better they perform in external services and the fast-breaking a company can achieve a goal. Therefore, if a company) only focuses on customers care but lack of employees motivation, it could meet some struggles. In Samsung Corporation, incentives and welfare curriculum are used to motivate their employees in order to better performances and satisfactions.Samsung has offered a very interesting welfare program to concern only for employees but also for their families approximately house, education, health and retirement. Besides, employee who has ability to perform outstanding or carry out a significant project is worth to receive an additional incentive. Hence, Samsung employees can liv e and org in the pleasant environmental. (Samsung, 1995) Base on the internal theory of internal marketing, there are some suggestions for Samsung to increase its quality of internal marketing. First of all, it is necessary to create a staff communication in order to listen to their employees opinions and ides.Besides, it is also useful to have time for briefing every hebdomad to discuss around what has been done during a week, is there any problem that needed to be solved timely or share successful stories together. This thing is very efficiently not only in creating a friendly relationship between staff and managers gather but also timely grasp the current operating status of a company. Secondly, Samsung could give to their employee teach to empower their relevant knowledge. Besides, employee motivation is eternally an important part.There are some theories about employee motivation such as capital of the Russian Federation and Herbert, given some factors to fulfill the satisfa ction of employees. Incentives and rewards could be a positive method to motivate employees. Culture is one of the factors that affects to employees behaviors. Employees might feel un sluttish or comfortable due to its company environment. Business to business relationship is important to maintain success of a corporation. Business relationship foc utilize (BRB) is different from customer relationship charge (CRM), but still simultaneously executes together.BRB is used to enhance the positive relationship with customers. finish Executive Summary This paper has been done in examining the successful marketing strategy of Samsung over the past years. And then using Scots to analyze the weaknesses, threats as well as the strengths, opportunities of the company and using TOWS matrix to suggest solutions of taking its strengths and opportunities to cover its weaknesses and threats. Finally, there is a discussion about the internal marketing of Samsung. Samsung was from the modest family company to the top global corporation in this fierce market today is worth lessons for all marketers.By distinct and flexible strategy, Samsung raised its brand value to be ranked at 8th in integrands Best Global Brands in 2013. An exclusive marketing research is employed to understand the market deeply whenever issue a strategy was effectively performed by Samsung. Personal experiment The case study of Samsung is worth to learn for every business. By observation through this case study, in personality, I could understand these interest points. Firstly, every business should set clear goals in both short term and long term in order to step by step achieve them.Segmentation is needed to identify potential customers, and search for the unmet demands IR the market. It is also useful to understand the customers behaviors in order to satisfy them as good as possible. Secondly, promotion is one of the important factors in marketing strategy. There are several ways of promotions and com pute on each specific situation that we could apply a efferent promotion in order to approach the market. For instance, count on segmented group of customers whether low-end market or high- end market, we could apply a suitable promotion.