Grenoble Ecole de Management, 1ère année, parcours English Track.

1. SAMSUNG
PRINCIPLES OF MARKETING
Léo
Hauchecorne
Rosalie Phan
Alfonso Osborne
Guillaume
Deysine
Sabrina
Benzohra
Groupe 6

2. INTRODUCTION
Products: apparel, consumers
electronics, medical equipment,
telecommunications…
Headquarters: Seoul, South
Korea
Employees: 369,000 (2012)
The name Samsung
literally means “three
stars” or “tristar” in
Korean, reflecting the
Samsung Group’s
dominance. Let’s see
Samsung’s Strategy and
Advantage in the
market.
2012 Annual Revenue: $247,5
trillion
2012 Net Income: $18,3 trilion
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3. PLAN
1.
Samsung’s History
2.
Mission statement
3.
Strategic Business Unit
4.
Competitors and level of competition
5.
Competitors’ analyse
6.
Competitive advantages and positioning strategy
7.
S.W.O.T Matrix
8.
Development strategies
9.
Samsung Molecular Model
10. Product hierarchy
11. Product Mix Table
12. Marketing Mix decisions
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4. 1. HISTORICAL INFORMATIONS

03/01/1938: Samsung’s early stages

1994: Birth of the Samsung’s “global power”

1970’s: Industrial and electronic diversification

1997: Beyond the digital technology’s border

1970’s end – 1980: Samsung’s entry in the global
market

2000 – today: Digital era cutting-edge

Beginning of 1990: A competitive company in a
changing technological world
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5. II. MISSION STATEMENT
Focus on a limited number of goals
 Strong desire of growth and constant innovation
 Creating, providing, and maintaining high-
quality products
 Providing a new, innovative, and “potential
revealing” experience to customers
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6. II. MISSION STATEMENT
Major policies and values company wants to honor
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7. II. MISSION STATEMENT
Major competitive spheres
Industry scope

Electronic and high technology industry

Building industry and civil engineering industry
Education, Health, Hospitality

Products and application scope
 Especially mobile phones market
 Electronic products market
 Semi-conductors market
Market segment scope
 Young people (18-30)

Professionals

“new geek” people
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8. II. MISSION STATEMENT
Vertical scope
 Conception
 Retailers (mobile operators or electronic & household equipment shops)
 Its own stores
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9. II. MISSION STATEMENT
Core Competences
 Significant skills and key knowledge that
represent a source of competitive advantage
- Technical (conception + technical assistance)
- Innovation
- Creation (products + innovative solutions)
- In operating
- Commercial
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- In R&D (1/4 of the employees

10. II. MISSION STATEMENT
 Application in a wide variety of markets
 Difficult for competitors to imitate

Mobile phone operator

High-differentiated products

Electronic products (televisions, DVD lectors, phones,
music speakers…)

A 7-year know-how

Oligopoly position

High-technology products (tablets, computers…)
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11. II. MISSION STATEMENT
Geographic
 Almost all over in the world
A long-term view
 Slogan: “Inspire the World, Create the Future”
 Always creating & innovating to suit to the environment
 Both modern / high tech and suitable products
Short, memorable, distinctive brand
 1 name, easily pronounceable in every languages
 Repetition of the “S” sound + simple logo
 Specific/original design (“outside” and “inside” the products)
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12. III. STRATEGIC BUSINESS UNIT
=> SAMSUNG GROUP COMPOSITION
Samsung
group
Electronics
Trade and
services
Financial
Service
Machinery
and
chemicals
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13. Samsung Electronics
III. STRATEGIC BUSINESS UNIT
=> SAMSUNG ELECTRONICS BUSINESS AREAS
Consumers
Electronics
IT & Mobile
Communication
Device
Solutions
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14. III. STRATEGIC BUSINESS UNIT
=> SAMSUNG STRATEGIC BUSINESS UNIT
Printers
TVs
Health and
medical
equipments
Digital
business
appliance
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15. III. STRATEGIC BUSINESS UNIT
=> SAMSUNG STRATEGIC BUSINESS UNIT
Mobile
Phone
Smartphone
Cameras
Enterprise
solutions
Tablets
Gear
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16. IV. COMPETITORS AND LEVEL OF COMPETITION
TVs
Smartphones
Entertainment devices
Communication devices
TV
Phones
3D TV / HD TV
Smartphones
Samsung Smart TV HD 3D
Samsung Galaxy S4
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17. IV. COMPETITORS AND LEVEL OF COMPETITION
TVs
Competitors
Smartphones
Competitors
Entertainment devices
Computer, phones,
tablets…
Communication devices
Tablets, Fablets,
Computer, Skype…
TV
Thomson, Haier, TCL,
Grundig…
Phones
Alcatel, Doro…
3D TV / HD TV
Toshiba, Philips, Sharp,
Blaupunkt
Smartphones
Nokia, Blackberry,
Apple, Sony, Huawei,
Wiko
Samsung Smart TV HD
3D
LG 55LA660S TV
3D/HD
Samsung Galaxy S4
Apple iPhone 5S
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18. Mc Kinsey Matrix
High
Business Unit Strenght
Medium
Market Attractivness
High
Low
TV
Phones
Medium
Computers
Appliance
Low
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19. V. COMPETITORS ANALYSE
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20. V. COMPETITORS ANALYSE
20

21. VI. COMPETITIVE ADVANTAGES AND POSITIONING STRATEGY
=> COMPETITIVE ADVANTAGES OF SAMSUNG
Affordable
cutting-edge
technology
Strong
commitment
to research
and
development
Competitive
advantages
The support
you need –
when and
where you
need
Quickness
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22. VI. COMPETITIVE ADVANTAGES AND POSITIONING STRATEGY
Design
Quality
Affordable
“It is our Quality Policy that
we deliver on the basis of
an effective quality system
the best products and
services that exceed our
customers requirements
and expectations.”
Reliability
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23. VI. COMPETITIVE ADVANTAGES AND POSITIONING STRATEGY
POD vs POP
Iphone 5S vs Samsung Galaxy S4
23
Samsung
Apple

24. VI. COMPETITIVE ADVANTAGES AND POSITIONING STRATEGY
POD vs POP
Samsung Smart TV vs Philips Ultra HD Primé
Samsung
Philips
24

25. VII. S.W.O.T MATRIX
Strenghts
Weaknesses
Opportunities
Threats
25

26. Strengths
Weaknesses
1. Hardware integration with
1. Patent infringement
many open source OS and
2. Too low profit margin
software
(is the largest technology company
2.Excellence in engineering and
in the world in terms of revenues.
producing hardware parts and
BUT this low prof. marg. is due to its
consumer electronics
semiconductors sales and
3. Innovation and design
aggressive price cuts)
4. Focus on environment
3. Main competitors are also largest
5. Low production costs
buyers
6. Largest share in mobile
4. Lack its own OS and software
phones and 2 place in
5. Focus on too many products
smartphones sales
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27. Opportunities
Threats
1. Growing India’s smartphone
1. Saturated smartphone
market
markets in developed countries
2. Growing mobile advertising
industry
3. Growing demand for quality
2. Rapid technological change
3. Declining margins on
application processors
hardware production
4. Growth of tablets market
4. Breached patents
5. Obtaining patents through
5. Apple’s iTV launch
acquisitions
6. Price wars
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28. VIII. DEVELOPMENT STRATEGIES
 Investing Advertising and branding
 Devoting resources to innovation and
product development.
 strategy for continued growth and
expansion follows three basic lines:
 the expansion of its range of appliances
and televisions
 screens and innovation in the information
technology
 improving their handsets through
diversification (increase in the average
range and low) and innovation.
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29. IX. SAMSUNG MOLECULAR MODEL
Distribution/Price
Plans
 Samsung Galaxy S4: Molecular
model
Samsung
Galaxy
S4
 Tangible elements
 Intangible elements
Package(
Phone +
accesorie
s)
Connectivity
(HDMI/VGA
)
warranty
After
Selling
Services
Market positionning
29

30. X. PRODUCT HIERARCHY
Samsung Galaxy S4: Product
Hierarchy
 Item : Samsumg Galaxy S4
 Product type : Smartphone
 Product line : Samsumg galaxy
 Product class : Personal mobile phone
 Product family : Sony phone, Nokia phone, Apple
phone, Samsumg phone
 Need family : Communication
 Brand : Samsung
 Item : Samsung Galaxy S4
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31. XI. PRODUCT MIX TABLE
31

32. XI. PRODUCT MIX TABLE
 What does it show ?
 Samsung covers many part of the market for many products:
from the low cost (BAR mobile phones) to the really high standart
(Hybrid Notebooks)
 Samsung covers B2B and B2C: it is a very large and complex
company.
32

33. XII. MARKETING MIX ANALYSIS
 Mobile phones: Very cheap to very high standards
 Netbooks and tablets: A little bit more high leveled because the
product is more technological and for a different type of customers
 Television and home appliances: High Standart
 Business and industrial: High R and D, high products: customers
such as Apple, LG, ST Micro Electronics …
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34. MARKETING MIX (4P)
Price
Promotion
Product
Place
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35. CONCLUSION
 Largest multi-billion dollar corporations in the world.
 One of the world’s top three companies in the electronics industry.
 Cost advantage clearly visible (managing of the suppliers).
 Product differentiation => Innovation and ergonomy.
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