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History

Samsung’s First office in 1938

OverviewSamsung was founded by Lee Byung-chul in 1938 as a trading company. Over the next three decades, the group diversified into areas including food processing,textiles, insurance, securities and retail.

Subsidiaries

Samsung ElectronicsSamsung C&T CorporationSamsung Heavy IndustriesSamsung SDSSamsung Life InsuranceSamsung Fire & Marine InsuranceCheil Worldwide

Since 1990, Samsung has increasingly globalized its activities and electronics; in particular, its mobile phones and semiconductors have become its most importantsource of income

Growth Prospects

Samsung’s core values1.People

2.Excellence

3.Integrity

4.Change

5.Co-Prosperity

Growth Measures

Growth by Building market share Developing committed customers and stakeholders Powerful brand

Innovating products International expansion Acquisitions, mergers, alliances Reputation for social responsibility. Partnering with government and NGO’s

Strength &WeaknessStrengths:1.Strong technical & R&D2.Strong Design capability3.Accessibility of it’s products 4.Market leadership.5.Line filling and line positioning6.Strong Retailer Relationship

Weakness:1.Samsung does not focus on a specific niche; it offers its products to the mass market only. Samsung does not �create its own software therefore it often relies on other sources to complete the products.

Samsung faces immense competition �from new companies and online companies.

High set up and operation cost for �such a company.2. Samsung has linked product lines, �which means that if one product line fails due to its own reasons other product lines will also suffer.

Competition

Because the Samsung had footprints in every field, It has acquired rivals in every field.

Skimming price:This happens when the competitors release a product of same features Samsung will lower the price and easily steal customers from thecompetitor.

Competitive pricing:To show their brand’s innovation prowess, the brand has to hike the prices toCompete with market leaders. Increase in the costs results in the positioning ofBrand on exclusiveness and it’s unique features.

Strategies

Advertising

The advertisement, starring Lionel Messi, Eddie Lacy, John Florence, Fabian Cancellaraand 2 awesome fans, was the huge success of Samsung’s marketing department.At the moment, both parts of the video have more than 51 million views.The commercial focuses on the compatibility of the Gear VR and the Galaxy S6,showing the awesomeness of the new product that Samsung introduced.

Samsung has invested millions of dollars in advertising to make more unique, compelling and Heart touching.

Spending in ads as a Total

Retailing & Distribution

The Distribution is a compelling part of the Samsung marketing strategy.In certain cities, Samsung has a contract with a single distribution companythat distributes the product throughout the city.For instance, Mumbai is a great example of a city, where Samsung distributesits product through a single company.

Market Domination

Market domination:The firm concentrated on the volume and market domination rather thanProfitability.Asian crisis of 1990 stands as a good example for the resemblance of this strategy.

SponsorshipsSamsung have been the sponsor of Premier League football club Chelsea since 2005,the sponsorship was ended after ten years in June 2015.Samsung, which started as a domestic sponsor of the Olympics in Seoul 1988, has beenA worldwide Olympic partner since the 1998 Winter Olympics.It has been official sponsor of the Indian Olympic team for the four consecutive years2000,2004, 2008,2012.

Selling the less profitable subsidiaries

Samsung Techwin

Samsung Thales

Samsung General Chemicals

Samsung Total

Controversies

Apple Inc. v. Samsung Electronics Co., Ltd. was the first of a series of ongoing lawsuitsbetween Apple Inc. and Samsung Electronics regarding the design of Smartphone andtablet computers; between them, the companies made more than half of Smartphonesold worldwide as of July 2012. By July 2012, the two companies were still embroiled in more than 50 lawsuits aroundthe globe with billions of dollars in damages claimed between them. While Apple wona ruling in its favor in the U.S., Samsung won rulings in South Korea, Japan, and the UK. On June 4, 2013, Samsung won a limited ban from the U.S. International TradeCommission on sales of certain Apple products after the commission found Apple hadviolated a Samsung patent.

Summary•Samsung has a strong R&D and strong technical capabilities which led to innovation in it’s products.•It’s marketing strategy has a clear mix of price, place, promotions, product, people.•Samsung has identified ways to penetrate into the consumer market with extensive promotions and a strong retail chain.•Samsung has been keeping profits with the strong market segments like memory-chip, LCD panels.•It remained as a leader in the OEM(original equipment manufacturers) in these segments.•However losses in some subsidiaries led to the selling of the same•It’s other marketing strategies like international expansion, sponsorships, ad marketing helped to gain more attention of the people and get attracted to the brand.•Samsung is leading the market through it’s innovative products, strong brand loyalty•These factors has been instrumental in the success and growth of the company.

Created by S.RAHUL NANDA, VIT UNIVERSITY, VELLORE.This Presentation has been an integral part of the marketing internship underProf. SAMEER MATHUR, IIM LUCKNOW.

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