1.LogoNew Product Development Strategy of Samsung R&D Presented by: Submitted to:1

2. Objective s To understand new product development strategy overview in Samsung R&DTo understand methodology followed by Samsung R&D in New Product Development phaseTo study effect of Consumer behavior on New Product Development of SamsungTo understand challenges and problems faced by the organization in the process of New Product DevelopmentHere we are considering only the Mobile Market segment of Samsung 2 3. y Samsungs Methodology in New Product Development Methodology followed in the projectResearch Planning (e.g. Understand the patents) NPD Strategy of Samsung R&DCustomized Samsung Standard Product Developme design lab Product Collected primary Developme nt Regions (e.g. GUI/ Analyzed the /US/ and secondary nt (in Korea) Interfaces) (India data data from various for various results Vienna) sourcesTesting Improve (alpha/ and Version Concluded on the beta) releases basis of variousfindings and limitations3 4. Data Collection and Analysis35 30 25 20 15 10 5 0 Samsungs growth was mainly fuelled by sales of digital TVs (in particular LCD TVs) Global sales of electronic products were affected by the economic downturn.2007200820092010Consumer Electronics (Retail) Samsung leads the global smartphones market and commanded 43% of retail volume in the high growth markets of Asia Pacific and the Middle East and Africa in 2012. Samsung's market share was nearly double that of second ranked Apple in 2012. A comprehensive suite of products allowed Samsung to dominate the smartphone market.2011 Samsung Corp.2012 Samsung managed to achieve stellar growth, driven primarily by sales of its smartphones, in particular its Galaxy range.SAMSUNG Corp: Smartphone Market Share & Growth Prospects 2012-2017 Retail rsp (% CAGR)Retail volume YOY growthConsumer Electronics vs. Samsung Corp. 2007-2012Asia PacificWestern EuropeLatin AmericaMiddle East & Africa Eastern EuropeAustralia North AmericaRetail Volume (% CAGR) Note: Bubble size represents Samsung Corps % market share in 20124 5. Data Collection and Analysis (Contd) R&D Expenses & Investment (Unit: KRW trillion)R&D expenses R&D expenses as a % of sales No. of R&D personnelPatents in the U.S. 6000 5000 400035153611455149233000 2000 1000 0 2008 R&D Investment Includes R&D cost and cost for development of intangible assets in the income statement.Samsung Electronics was included among the top 10 global companies in R&D investment announced by the U.K. Department for Business, Innovation and Skills.2009Patents in the U.S.20102011Linear (Patents in the U.S.)As we see from the above graph, patents filed by Samsung in U.S. is increasing continuously over the years. It depicts that Samsung is focusing more and more on innovation and R&D Source: IFI Patent Intelligence5 6. Landscape Product OfferedInnovation DesignMarketingComparative Analysis of various brandsSamsung Electronics Consumer Electronics (LCD TVs, Microwave Ovens, PCs etc.)Apple Computer Inc.LG ElectronicsNokia Corp.Sony Corp.Motorola Inc.PCs, portable music Consumer Leading Mobile Comm. players, Mobile Electronics (Mobile Company (started as communication devices handsets, Front wood pulp producers) etc. loading washing machines, ACs etc.)Electronic Motion Financial etc.Occupies feeling zone and emphasis on the simplicity of products in terms of design and instabilityConcentrated on 5 areas: Mobile comm., Digital appliances, digital displays, digital media and home networking and design their products by using 4 values: Theme, Style, interface and finishAdopted telecom as its core business and designing was based on 3 principles: Simplicity, Relevance and ExperienceCreates Value added products by doping 4 principles of design: Originality, Lifestyle, Functionality and UsabilityFocus on two criterias for products for their consumers: personalization and socializationDigital Improvement in design convergence using and product features E-Processes and efforts in improving design by investing in R&DOriginally produces electronics for mass consumption but later transformed to produce premium consumer products for attracting premium customers and to gain brand imageProduct categorization is done by: Explore Live classic, classic, achieve and entry and communicating brand value to the customersDo not rely on customer surveys and create value added user experience through feature design, concept development and eco-friendly sustainable designPaid attention on development of new revenue generating services and technologies and enabling customers to experience media mobility.and Focuses on Reason and feeling to create a design and used global localization strategy to establish as a first class consumer (user centric)games, Mobility solutions, pictures, mobile services, cellular services comm. Devices etc.6 7. Findings During the Apple-Samsung lawsuit Internal memos dented Samsungs image; as an innovator Lawsuit also showed Samsungs pursuit and obsession to mimic and beat Apples iPhone while creating its smartphone range Companys sponsorship of Londons Olympics in 2012 and the 2-minute advertisement during Super Bowl in 2013 reinforced Samsungs brand image in the minds of the consumersAlong with smartphones and TVs, Samsung intends to compete aggressively in appliances, cameras, health and medical equipment and printers.Rivalry among established firmsSamsung has been spending consistently on advertising Is one of the largest advertisers globally Samsung spent US$4.3 billion worldwide in 2012, four times more than AppleRelations with suppliersSubstitutesFive forces to develop innovative strategyRelations with buyersNew Entrants7 8. Conclusions and Limitations ConclusionLimitationsWithin smartphones, the South Korean manufacturer banked on its AMOLED screen and custom UI for its Androidpowered flagship smartphone, and single-handedly created the phablet (phone/tablet) marketSamsung is still not strong in cameras and laptops, which offers it room for growth, while the company is also aiming to consolidate its lead in mobile phones and digital TVsSamsung demonstrated that it was not short on ideas in the mobile arena, as well as on strengthening its lead in digital televisions in 2012Samsungs know-how in large-scale manufacturing and its economies of scale give the company an advantage over competitors like Acer in computers and Nikon in digital camerasSamsung has to show its competitors that it is confident and knows exactly where it intends to steer the marketSamsung has to be selective in its product line-up and avoid direct competition with its rivals 8 9. Reference s www.samsung.com/us/aboutsamsung/samsung_electronics/business_area/rd_page/ http://www.businessinsider.in/Samsung-Has-A-Totally-Different-Strategy-From-AppleAnd-Its-Working-Great/articleshow/21250813.cms http://www.portal.euromonitor.com/portal/default.aspx http://www.businesskorea.co.kr/article/1505/samsung-group-marking-300-trillion-wonrevenue-500-trillion-total-assets http://articles.economictimes.indiatimes.com/2012-11-30/news/35483331_1_samsungtargets-asim-warsi-samsung-electronics-india http://www.engadget.com/2013/07/03/samsung-to-build-five-new-randd-centers/ 9 10. 10 11. Querie s11