BUILDING A GLOBAL BRAND _GROUP 7_

Hoang Thi Ngoc Huyen M987Z239 Krissapon Apinyaupatum M997Z241 Nguyen Thi Thu Trang M997Z210 Antun Paradzik M997Z223 Hyacintha FAUSTINO M997Z Le Van M997Z246

OUTLINE I. INTRODUCTION : Beginning & history VIII. Conclusion II. A successful story III Crisis & Explaination IV. Rebranding, the beginning of a new story V. New R&D Strategy VI. SWOT analysis VII. 4 P’s analysis

INTRODUCTION Samsung Electronics Company was established in Korea in It is the largest « Chaebol » in South Korea During that time, the company only manufactured cheap TV sets labelled under the « Sanyo brand name » Over the time, It became one of the world's leading electronics companies, specializing in digital appliances and media( flat screen displays, plasma TVs, cellphones…), semiconductors, memory chip.

A SUCCESSFUL STORY 1/2  A double competitive strategy: Production of technical components or low-cost manufactured products for well-known firms like Dell, HP, General Electric… Sales of consumer products under the Samsung brand at very low prices through discount chains like Wal-Mart, Carrefour

A SUCCESSFUL STORY 2/2  Its success comes from its resources that can be divided into 3 parts:  Technology: it has innovative technology in R&D market.  Human resources: it has great human resources and policies. It does not care about employee’s background but they only hire employees who have skills. Then they reward those employees through development of their abilities.  Corporate strategy: creating partnership with different companies to access on markets Samsung could not enter before.

ISSUES CAME What happened with Samsung in 1996?

ISSUES CAME Because of low cost strategy: 1.Capacity > Demand 2.Sales and profits decreased 3.Down-market image Crisis in 1997 Losing $170 million/month

SOLUTIONS How to overcome the issues?

REBRANDING: THE BEGINNING OF A NEW STORY Samsung appear more stylish, and high standard brand with technically superior products They tackle the digital market (digital world Vs. analog world) Collaboration with designers, engineers, marketers to achieve the new strategy Reorganization of distribution channels

NEW R&D STRATEGY Innovative product development 17 research centers around the globe 9 % of the firm’s total revenues invested in R&D ($ 5 Billion)

STRENGTHS  Strong management and dynamic human resource with knowledge and experience of electronics market.  Strong global presence with strong brand and customer base (Samsung is one of twenty the best global brands from 2009).  Well diversified and differentiated product line, to meet changing customer needs (focus mainly on 4 core digital technologies) -> gain an advantage over the competitors, cover customer’s electronic needs.

STRENGTHS  Orienting product strategy to “a stylish, high quality brand commanding a premium price” -> design product with high quality in attractive styling that catching the pulse of customer in different countries.  Marketing strategy with making extensive use of more contemporary promotion tools (such as product placements, sponsorships and internet advertising) contribute in part to well_known brand raising.  Spend a high percentage of revenue on R&D -> an excellent research and development capabilities.

Best Global Brands-2010 Rank Previous Rank Brand Country of Origin Sector Brand Value ($m) Change in Brand Value 14 United States Business Services 23,2195% 15 GermanyAutomotive22,3223% 16 FranceLuxury21,8604% 1720 United States Electronics21,14337% 1817 United States Tobacco19,9615% 19 South Korea Electronics19,49111% 2018JapanAutomotive18,5064%

WEAKNESSES "Samsung is not yet a brand that can live without the product”. Some still perceive Samsung as a low-cost brand (Customer perception of weak product attributes like Durability). Focus on mass market instead of niche market. 16Marketing Management

OPPORTUNITIES Samsung is well known because of products’ differentiation. New developed products : “Eco-Product”, “Good Eco- Product,” or “Premium Eco-Product” Marketing for all people, not only young, also older generations The high end value driven proposition helps increase the Market Share. Cooperation with other companies.

THREATS The consumer durable industry is not in the best of health. Downtrend in the consumer durables market, due to increased of price inputs and continuing price erosion Competitors can produce the new product with the competitive price New companies enter IT sector

PRODUCT PROMOTION Price 4P’s IN MARKETING PLACE

PRODUCT Emotional : Attractive styling, Modern image, Additional value Functional : Innovative product plus high quality Unique Selling Point Mass production which allow cut-cost and standardize parts Samsung’s product was developed to be suited for different users in different countries

PRICE Premium price (Being worth price to pay) Customer's perceived value of the product is high Great range of price ranking, customized price category Don’t want to pursued competition with Chinese low prices

PLACE Pull out of low price discount chain Push product through the electronic special stores, ex; IT Mall, Best Buy, Circuit City Samsung official shops Point of purchase: in every store, Samsung products must be on the visible place

Product placement: mainstream movies, music, way of life Sports sponsorships : - Olympic summer and winter games from 2010 until Football: African Football Cup Biggest sponsorship deal in British football history- FC Chelsea Promotion

MARKET SHARE

CONCLUSION Samsung brand became worldwide know A symbol of reliability and quality Challenge for the future : maintain their position, expand their range of IT products The company also needs to improve some specific product market shares The next achievement will be how to reach an Iconic level.

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