1. NEXT IS WHAT !

2.  RAHIL MERCHANT MARCOM - 1
 MOHD. YUSUF MIDDEY MARCOM – 2
 SUSHIL SASLIAN 4P’s 3
 MD. DANISH SHAMSHER – 68


4. 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.

5. 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.[

6. 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

7. PRODUCT Price
Price
4P’s IN
MARKETING
PROMOTION Place
Place

8. 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.

9. Semiconductors
Product
: 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.

10. “design awakeness all your senses”.
Samsung invested a lot of money in
research and development, in order to
product
meet what customers needs and wants.
Samsung spent about 9% of revenue,
amounting to around $5billion, in 2005
in research and development.

11. United States Top 5 Innovators 2008
Rank # of Records Company Country of Origins
1 7404 SAMSUNG ELECTRONICS KOREA
2 6576 IBM UNITED STATES
3 2931 MICROSOFT UNITED STATES
4 2421 TOSHIBA JAPAN
5 2019 CANON JAPAN

12. Europe Top 5 Innovators 2008
Rank # of Records Company Country of Origins
1 2753 SIEMENS GERMANY
2 2619 BOSCH GERMANY
3 1475 SAMSUNG ELECTRONICS KOREA
4 1250 DAIMLER GERMANY
5 905 RENAULT FRANCE
These rankings comes from IP Solutions, part of Thomson Reuters : The
world’s leading source of intelligent information for businesses and
professionals.

13.  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.

14. Samsung sells product with a price that’s 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”

15. Product placements
Sponsorships
Media Advertising

16.  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.

17.  The Summer and Winter olympics
games
 Chelsea FC shirt sponsorship deal
 Horse jumping (Samsung
Superleague).

18.  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 :
Fox’s movies Fantastic Four
 Display in the film

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

21. 2009 2008 Brand Country of Origin Sector Brand
Rank Rank value
Value Value US $

22.  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 Samsung‘s new products that
involve team of product designers.

23.  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 liquid-
crystal display panels
with 23% share in 2005,
increase to 26.2% in Q1
of 2009. 2009 Figures

24.  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

25.  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.

26.  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

27.  Huge investment on Research & Development
2007 (Mill won) 2006 (Mill won)
Sales 98,507,817 85,834,604
Research expenses 2,353,844 2,252,848
Ordinary development expenses 3, 720, 115 3,461, 914
Total R&D 6,073, 959 5,714,762
R&D/Sales 6.17 % 6.66%
Consolidated Financial Statement years ended Dec 31, 2007 and
2006 (audited report)
1 US$ = 938 Won

28.  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

29.  Increasing competition
 DRAM (Q1-2009)
Rank Company Market Share
1 Samsung 34.3%
2 Hynix 21.6%
3 Micron Technology 14.6%
4 Elpida Memory 14.2%
5 Qimonda 4.8%

30.  Increasing competition
 LCD TV (Q3-2008)
Rank Company Market Share
1 Samsung 20.2%
2 Sony 13.8%
3 Sharp Corporation 10.2%
4 LG 9.3 %
5 Phillips 7%

31.  Increasing competition
 Mobile phone (Q1-2009)
Rank Company Market Share
1 Nokia 36.2%
2 Samsung 19.1%
3 LG 9.9 %
4 Motorola 6.2 %
5 Phillips 5.4 %

32.  Decreasing Operating profit margins
2007 (Thousand 2006 (Thousand
US$) US$)
Sales 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 28.05 % 30.03 %
Operating Profit Margin 9.1% 10.6 %
Consolidated Financial Statement years ended Dec 31, 2007 and 2006 (audited report)
1 US$ = 938 Won

33.  Economic Slowdown, makes demand for
electronics product weaken.

34. SAMSUNG 5 FORCE ANALYSIS

37.  Availability of cheap Chinese electronic products.
 Delay in technological innovation which helps other company(Apple).
 Saturated in only multimedia & communication field .
 Making the people

40. The conclusions drawn from the
SWOT analysis were that
Samsung’s strengths carry more
weight than its weaknesses. If
Samsung can properly exploited
opportunities that exist, it will
navigate the threats with no
significant difficulties.