Samsung Marketing Strategy Case Analysis

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Marketing of global brand: Samsung Marketing Strategy Case Analysis
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  Case 3: Samsung – The Making of a Global BrandMarketingManagement 1.By 2002, Samsung was rated as one of the top 3 players in the global mobile handsetmarket. Analysts attributed Samsung’s success to its marketing initiatives. Discussthe role of marketing in Samsung’s success. To establish itself as a major player in global mobile handset market, Samsungimplemented different marketing strategies like innovative and technologically advanced products, people centric product designs which satisfied the needs of the consumersworldwide, partnering with local distributors and suppliers, exploring new market andconsolidated marketing effort.Firstly, Samsung focused on its product to shed its OEM player. For this, the companystarted a restructuring process called ‘New Management’ which focused on productquality, globalization and multifaceted integration. The company prioritized quality over quantity and implemented various quality initiatives like Six Sigma approach andassembly line manufacturing to ensure quality.To make products suitable to all, it established design institutes in Europe, US and Asia.Samsung separated a budget of $ 126 in a program for building complete global design.In already crowded electronics consumer goods sector, Samsung decided to launch products which were technologically advanced and innovative. With this, Samsunggained a competitive advantage among its competitors. It also established researchfacilities in California (United States) and Tokyo to improve its product line.Another marketing strategy that Samsung implemented was lifestyle targeting rather thantechnology targeting. Samsung identified that consumers bought goods that matched their lifestyle instead of the technological features. Therefore, Samsung positioned its products  Case 3: Samsung – The Making of a Global BrandMarketingManagement to the Generation N and Generation Y consumers. This was possible due to the effectivecoordination of the activities of the company’s geographically disposed design teams.Designing and developing products specific to a certain target group also gave thecompany a competitive advantage from its competitors.In the market that is already dominated by Nokia, Samsung focused on producing highend mobile phone handsets and targeted high end consumers. The Samsung mobile phones were priced more than the regular phones because of the value added features andadvanced technology. Samsung also constantly innovated its mobile phones, in which itwas the strongest, and hence was able to establish its supremacy. Therefore, Samsung isthe biggest brand of smart phones in the world. Its products are expensive than others butyet come with many embedded features. Also, it produced different variants of smart phones to cater the needs of different consumer groups and made it available toeverybody. This further strengthened its position as the market leader in smart phonemanufacturer.Having a good product and good marketing plan is not enough if there is no visibility.Associating with a big and well known event can be fruitful to an emerging company inthis case. Samsung became the official sponsor of wireless technology to the SeoulOlympics in 1998. This association gave Samsung the much needed exposure and boosted its image worldwide.In these ways, the marketing strategies implemented by Samsung boosted its image as aglobal brand and helped it establish as one of the top 3 players in mobile handset market.  Case 3: Samsung – The Making of a Global BrandMarketingManagement 2.Compared to established rivals like Sony, Matsushita and Nokia, Samsung was alate entrant in the global consumer electronics market. Comment on Samsung’sbrand building initiatives in the global consumer electronics market. Being a late entrant in global consumer electronics market, Samsung had to implementdifferent approach than Sony, Nokia or Matsushita to establish itself in the market. For this, Samsung initiated various activities to gain customers by focusing on designing anddeveloping innovative and high end products and implementing marketing activitiesworldwide to increase its visibility.As a part of marketing activities, Samsung sponsored the Seoul Olympics in 1998. Thisgave Samsung necessary visibility in worldwide and gave its image a major boost. Other initiatives that Samsung undertook to change its brand image was establishing designinstitutes in Seoul, Palo Alto (United States) and Middlesex (United Kingdom) whichhelped the company design products which appealed to the consumers all over the world.The company focused on quality and design rather than quantity to move away from itsOEM image. The company based their design philosophy on the principle of ‘  Balance of  Reason and Feeling  ’, making the designs more balanced with technology and humanadaptability. To meet this goal, the company set aside a budget of $126 billion for a program of building complete global design. We can now see the result of this effort asSamsung is taken as the producer of premium brand of electronics which are both beautiful and of high quality.Also, Samsung focused on building products for the internet generation and conductedresearch and market surveys to find out the consumer behavior of that generation. The  Case 3: Samsung – The Making of a Global BrandMarketingManagement findings from these researches were later incorporated in the products and hence theinternet generation could directly relate with these products. While Samsung constantly promoted its strong product categories like mobile phones, it also concentrated on itsweak categories like digital TV.Another task that Samsung undertook to promote its position in the market was to createa partnership deal with local distributors like Best Buy and AOL to sell and promote their  products and increase its market presence. This strategy helped Samsung to improve its brand image in the United States. Another than this, as an initiative to have a global presence, the company entered new markets like India, where Japanese products wereconsidered to be of better quality, and depended heavily on corporate campaigns whichhighlighted the company’s strengths. Entering a new market is always a challenge,especially when it is already dominated by a strong contender. To survive in such amarket, one has to be able to create an image of oneself that is different from the leader.Samsung was able to do this by highlighting its strengths through its corporatecampaigns.Samsung was able to identify the trend that digital products will be popular in the futureand hence it branded all of its products as Samsung DigitAll which expressed thecompany’s aim of providing only digital products. Identifying the trends in the marketcan help one to change the marketing mix which will be suitable for future. Samsung wasable to do this and hence it was successful.Also, the advertisements created were focused on strengthening its image as a global brand. For example, Samsung signed an agreement with Nobel Prize foundation to
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