Samsung- Building a Global Brand

Content Part 1 Part 2 Part 3 Overview of Samsung Marketing Strategies Results and suggestions Overview Results Marketing strategies

Introduction  Company Overview  Achievement  Issues

Company Overview  The biggest brand of Samsung Chaebol  Started out in 1970  Marketing strategy: Cost-driven

Achievements  The number one position of the global chip market  Pioneering the development of flat- screen displays, Plasma TVs,…

Issues  Internal: - Sales and profits fell - Image downed  External: - Competition - Slackening demand and excess capacity in the global market - Asian financial crisis in Emerging of new Digital Age

Survive & develop or not What did they do???

Marketing strategies Technical Innovation and R&D New Product Development and Design Brand’s Image Building

Analog - Digital Why did it change?  Higher expectation of each electronics tools at the global market  Required better performance to fulfill the advancing technology  Base on the market needs.  Force the company to fulfill the capacity of each technology.  Leads for a new innovation

Analog  Digital AnalogDigital  Old design  Slow complicated  Hard time  Heavy  Pattern led  modern design  cooler  fast access  hard working  light and simplified How can it be done? Develop through research on the targeted market.Develop through research on the targeted market. Increase Research FundingIncrease Research Funding Hire more specialists for innovationsHire more specialists for innovations

The progress of Brand Image:  1996 Samsung’s branded products were softening.  became the most valuable consumer electronics brand. Objective for building the Brand Image:  Building an image of the Samsung (stylish, high-quality brand commanding the premium price)  Establish a unique competitive position using technical innovation and design to appeal to younger and relatively upscale customer segments Building The Brand Image

Building The Brand Image activities Marketing Programs that were used:  Effective marketing  Build customer awareness  Re-organize the firm’s distribution channels  Advertising campaigns  Promotional tools - such as sponsorships, advertising, etc.

Results – Samsung’s brand value

Results

 In period of , Samsung’s global value doubled => Overtook Sony  Samsung’s sales grew more than 57 trillion won (about $56 billion) in Dec,2005.  Half came from outside Asia  Operating income hit a record 8 trillion won ($8 billion)

Suggestions  Success starts from an effective strategy, marketing plan, and implementation.  For CEO: decide technologies, goods and services,….  Chief financial officer: market the merits of the company  Executive director of nonprofit community agency: pursue the necessary resources  All of managers: market the ideas

 Samsung marketing programs (BBC and asianweeks):  Direct sale  Premium: Samsung magazine, catalog, exhibition  PR  Advertisement: 5M: mission, money, message, media, measurement Content of ads - AIDA: –Get ATTENTION –Hold INTEREST –Create DESIRE –Lead to ACTION

Sources  Marketing management handout  Samsung annual reports from 1998 to 2007  BBC and Asianweeks    Samsung commercial video -