Samsung: Building a Global Brand

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Memory chip

12-inch TVs

Plasma TVs

Samsung

Flat-screen display

Multifunction cellphone

Other digital devices

Positioning until the mid-1990s:

Low-cost manufactured products for betterknown brands. Selling consumer products (electronics) at very low price.

After 1996, several shocks in Samsungs competitive environments:

The

global memory chip market went into tailspin due to slackening demand and excess capacity.
Asian

financial crisis in 1997.

Samsung: GOOD TECHNICAL QUALITY but LOW-COST LOW-MARKET IMAGE

SAT AT BACK OF THE STORE

Redefining Samsungs Brand Image

Stylish, high quality brand commanding a premium price Establish a unique competitive position by developing technique and design

Technical Innovation and R & D

New Product Development and Design Encouraging Marketing Programs

Focusing on digital technologies

Shifting substantial resources into technical research and development:

Spent about 9% of revenue (US$ 5 billion) on R & D in 2005 Employs nearly 27,000 researchers (including 2,400 PhDs) to work in 17 research centers around the world.

To make the customers consider that Samsungs products is worth of price To collaborate closely with the firms engineers, manufacturing division, marketers, and market researchers.

Assigning 450 designers in 6 design centers in the world to ascertain customers tastes and preferences.

To build customer awareness of the products:

Ensuring the availability, service after sale, and communicating Samsung essential value and attributes around the world, to make sure the consumers are worth the money.

Reorganize the firms distribution channels, particularly in developed market.

Pulling the products out of the low-price discount chains and distributing them trough qualityoriented electronic stores

Consolidated the firms advertising to a single global advertising group. Launching new design product.
Extensive use of contemporary promotional tools:
Eg. sponsorship Olympic games, Internet, and movie advertising

Global value of Samsungs brand increased more than 200% from 2000 2005. Sales grew to more than US$56 billion in the fiscal year ending in Dec 2005
Operating income hit a record US$ 8 billion

Samsung has successfully redefined its image as one of leading electronics companies all over the world.

To develop an organization, the well marketing plans is one of the keys to be successful.

With the new marketing strategy, Samsung impressed customers of the high-brand image. Slogan design awakens all your sense has been familiar worldwide.

References

Kotler, et al. (2006), Marketing Management, Pearson, 12th Edition Etzel, et al. (2004), Marketing, McGraw Hill, 13th Edition