NEXT IS WHAT !

RAHIL MERCHANT MARCOM - 1

MOHD. YUSUF MIDDEY MARCOM 2
SUSHIL SASLIAN 4Ps 3
MD. DANISH SHAMSHER 68

Samsung Electronics was founded in 1969 in Suwon, South Korea

as Samsung Electric Industries, originally manufacturing electronic
appliances such as TVs, calculators, refrigerators, air conditioners
and washers. By 1981, the company had manufactured over 10
million black and white TVs. In 1988, it merged with Samsung
Semiconductor & Communications. Samsung Electronics is the
global market leader in more than 60 products, including
semiconductors such as DRAM , SD RAM, flash memory and hard
drives, digital displays such as LCD displays, plasma displays and
OLED displays , home electronics such as TVs, DVD players, Blu-ray
players, home cinema systems, set-top boxes and projectors,
mobile devices such as mobile phones, MP3 players, digital
cameras and camcorders, computing products such as monitors,
laptops, UMPCs, CD and DVD Drives, laser printers and fax
machines and home appliances such as refrigerators, washing
machines, microwaves, ovens, vacuum cleaners and air
conditioners.

In 2005, Samsung surpassed Japanese rival Sony for

the first time to be rated as the new leading and most
popular consumer electronics brand in the world by
Interbrand. In 2007, Samsung Electronics' handset
division overtook American rival Motorola , making it
the world's second-largest mobile phone maker. At the
end of 2007, Samsung Electronics exceeded the $100
billion mark in annual sales for the first time in its
history. This achievement places the company, along
with Siemens of Germany, IBM of the U.S. and
Hewlett-Packard of the U.S., among the world's top
three companies in the electric appliances and
electronics industry.[

Today, Samsung brand is the best known South

Korean brand in the world and in 2008. Business
week rated Samsung as 21st on the Top 100 Best
Global Brands 2008. Samsung overtook Japanese
rival Sony as the world's leading consumer
electronics brand.

history

PRODUCT

Price
4Ps IN
MARKETING

PROMOTION

Place

Product

In 1970, Samsung Electronics made

cheap 12-inch television sets under
Sanyo label.

Now, capturing the number one

position in the global memory chip
market and pioneering the
development of flat-screen displays,
plasma TVs, multifunction cellphones,
and other digital devices.

Product
Semiconductors

: DRAM, SDRAM, flash memory, and hard

drives
Digital

displays : LCD displays, Plasma displays, and OLED

displays
Home

Electronics : TVs, DVD players, Blu-ray players, home

cinema systems, set-top boxes, and projectors

Mobile

devices : mobile phones, MP3 players, digital cameras,

and camcorders
Computing

products : monitors, laptops, UMPCs, CD and DVD

drives, laser printers, and faxes machine; and

Home

appliances : refrigerators, washing machines,

microwaves, ovens, vacuum cleaners, and air conditioners.

design awakeness all your senses.

product

Samsung invested a lot of money in

research and development, in order to
meet what customers needs and wants.
Samsung spent about 9% of revenue,
amounting to around $5billion, in 2005
in research and development.

United States Top 5 Innovators 2008

Rank

# of Records

Company

Country of Origins

7404

SAMSUNG ELECTRONICS

KOREA

6576

IBM

UNITED STATES

2931

MICROSOFT

UNITED STATES

2421

TOSHIBA

JAPAN

2019

CANON

JAPAN

Europe Top 5 Innovators 2008

Rank # of Records

Company

Country of Origins

2753

SIEMENS

GERMANY

2619

BOSCH

GERMANY

1475

SAMSUNG ELECTRONICS

KOREA

1250

DAIMLER

GERMANY

905

RENAULT

FRANCE

These rankings comes from IP Solutions, part of Thomson Reuters : The

worlds leading source of intelligent information for businesses and
professionals.

 Samsung has its own stores which can

be found around the world. Not only in
Asia , but also in America, Europe,
Australia and Africa.
Samsung has its stores located & also
its service center at places where it is
closes to the customer reach.
At the stores, we not only can buy the
product that sold, but also feel the
experience of digital lifestyle.
In India after covering the urban
market Samsung is now ready to tap the
urban market.

Plans are to start up a plant in Tamil

Nadu & Andhra Pradesh with an
investment of $150 million.

Samsung sells product with a price thats worth, if

we compare it with the functions, benefits and
technology.
Samsung is in the process of building an image as
a stylish, high quality brand commanding a
premium price

Product placements

Media Advertising

Sponsorships

Hotel

chains (such as Hilton), where

most in-room technology was now dated
and required early replacement to retain
competitive advantage.
Their products are also been used in
various movies which is also been used as
a marketing base.
Also their giving away their products at
various sports event as gift for the
players.

The

Summer and Winter olympics

games
Chelsea FC shirt sponsorship deal
Horse jumping (Samsung
Superleague).

In

2005 ,the firm devoted nearly 15 %

of its media budget allocated to page topping banner ads on over 400
Internet sites
Link to mainstream entertainment :
Foxs movies Fantastic Four
Display in the film

Strength

weakness

SWOTOpportunities
Threats

 Existing

knowledge and
experience of electronics
market
Strong global presence with
strong brand and customer
base, in 2009 according to
Interbrand Global value of
Samsungs brand is US$
17,518 million compare to
its competitor, Sony, which
is US$ 11,953 million.

2009
Rank
Value

2008
Rank
Value

Brand

Country of Origin

Sector

Brand
value
US $

 Well

diversified and differentiated product line,

to meet changing customer needs. Samsung
electronics has 4 business areas to cover
customer electronic needs.
Design with an attractive styling that catching
the pulse of customer, as the result of the
development of Samsungs new products that
involve team of product designers.

 Market

share: Global
market share of mobile
phone increase from
18% in 2004 to 19.1% in
2009. Memory chip
Industry is 27% in 2009
compare with 21% at
the end of 2008.
It is the biggest
manufacturer of liquidcrystal display panels
with 23% share in 2005,
increase to 26.2% in Q1
of 2009.

2009 Figures

 Loyal

customer & customer

satisfaction: Samsung
Electronics reports that its
Anycall mobile phone topped
the American Customer
Satisfaction Index (ACSI) (2005)
Cost Competitiveness by mass
Production
Samsung Electronics expanded
production dramatically to
become the world's largest
manufacturer of DRAM chips,
flash memory, optical storage
drives

Technology

With an excellent research and

development capabilities, they spend a
high percentage of revenue on R&D. It
resulted in global leadership in the
television segment, and in improving its
position from the third to second player
in mobile phones with their innovative
products.

 Customer

perception of weak product

attributes like Durability

Different

perception on worth the price

product on each person that difficult to cover.

Not

pro-active coming out with unique and

leading model

Focus

on mass market instead of niche market

Huge investment on Research & Development

2007 (Mill won)

Sales

98,507,817

2006 (Mill won)

85,834,604

Research expenses

2,353,844

2,252,848

Ordinary development expenses

3, 720, 115

3,461, 914

6,073, 959

5,714,762

Total R&D
R&D/Sales

6.17 %

6.66%

Consolidated Financial Statement years ended Dec 31, 2007 and

2006 (audited report)
1 US$ = 938 Won

Increasing on electronics consumer market

Strong customer demand for innovative products &
value-added features
High % of Younger population, which can be expand a
new market now and in the future

Population by Age and Sex, More Developed Countries: 2009

 Increasing

competition

DRAM (Q1-2009)

Rank

Company

Market Share

Samsung

34.3%

Hynix

21.6%

Micron Technology

14.6%

Elpida Memory

14.2%

Qimonda

4.8%

 Increasing

competition

LCD TV (Q3-2008)

Rank

Company

Market Share

Samsung

20.2%

Sony

13.8%

Sharp Corporation

10.2%

LG

9.3 %

Phillips

7%

 Increasing

competition

Mobile phone (Q1-2009)

Rank

Company

Market Share

Nokia

36.2%

Samsung

19.1%

LG

9.9 %

Motorola

6.2 %

Phillips

5.4 %

 Decreasing

Operating profit margins

2007 (Thousand
US$)

Sales

2006 (Thousand
US$)

105,018,995

91,508,107

Cost of Sales

75,566,005

64,025,507

Gross Profit

29,452,990

27,482,600

Selling, General and Adm exp

19,886,587

17,750,164

Operating Profit

9,566,403

9,732,436

Gross Profit Margin

Operating Profit Margin

28.05 %

30.03 %

9.1%

10.6 %

Consolidated Financial Statement years ended Dec 31, 2007 and 2006 (audited report)
1 US$ = 938 Won

Economic

Slowdown, makes demand for

electronics product weaken.

SAMSUNG 5 FORCE ANALYSIS

 Availability of cheap Chinese electronic products.

Delay in technological innovation which helps other company(Apple).
Saturated in only multimedia & communication field .

Making the people

suggestions

Become leader of environmental

initiatives to provide more
environmental friendly electronic
products
Enhance their advertisement
campaign to create greater brand
awareness

suggestions

As a Corporate Social Responsibility

Samsung needs to enhance their
brand image by indulging in more
social causes because a good
corporate not only takes from people
but also returns to them

suggestions

Improve After Sales Service because

satisfaction helps in retaining
customers
Make their R&D more efficient

The conclusions drawn from the

SWOT analysis were that
Samsungs strengths carry more
weight than its weaknesses. If
Samsung can properly exploited
opportunities that exist, it will
navigate the threats with no
significant difficulties.