Delivering Customer Value through Marketing

205
Analysis Of Marketing Mix Of Brand

Submitted to:
Dr. Shilpa Bhakar
Submitted by:
Rahul Prajapati (MBAN1MG21047)
Rohit Kumar Singh(MBAN1MG21047)
Akhilendra Nigam (MBAN1MG21078)
INDEX

 Introduction of Samsung……………………………………………………………………….3
 Product Mix of Samsung……………………………………………………………………….5
 Samsung …………………………………………………………………………………….5
 Target customer segment of the Samsung ………………………………………...5
 PLC Diagram of Samsung ………………………………………………………………….6
 Introduction Brand………………………………………………………………………...8
 Price adaption strategy of the Samsung …………………………………………...8
 Distribution system of the organization for that Brand……………………………………9
 Promotion Strategy of the Samsung …………………………………………….. 10
 References…………………………………………………………………………………12.

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 INTRODUCTION OF SAMSUNG
The world economic situation has been approaching the low economic growth since the
Lehman Brothers Holdings inc. collapsed in 2008. The current time is an age of
competition where legal and institutional restrictions are easing or disappearing and
barriers are crumbling. To compete globally, companies need to adopt innovative strategies
and carry out open management that removes all restrictive and discriminatory institutions
and practices. The human resources, technology, marketing manufacturing, and design
departments are getting more and more importance as competitive resources than ever
before. So far Samsung has used these resources very effectively. That is why many
management scholars and practitioners have been looking at Samsung electronics company
as a successful case of the leading global company.

Chairman Lee declared the launch of “New Management” in Frankfurt in 1993. Since then
Samsung has transformed itself from a mediocre manufacturer based on low cost advantages
to a world class performer with a strong brand value and premium products. As Figure I-1
shows, chairman Lee directed to transform Samsung group into leading global company in
the twenty first century. The Samsung story is one of the great business achievements of the
last 20 years and in the 21st century. A number of mandates of Samsung’s New Management
Program were made that had significant impacted Samsung’s personnel management system,
namely new management demands, new awareness, and net human resources(HR)
paradigms.
Samsung declared “Open HR” to prepare for an “Open Era” The company abolished
discrimination based on academic background and gender for HR which maximizes
potential capabilities of their employees.

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 This study intends to analyze Samsung electronics company’s strategic management
system through the value chain model(Figure I-2). The value chain model was proposed
and popularized by Michael Porter in his 1985 best seller book, Competitive Advantage:
Creating and Sustaining Superior Performance (blog.naver.com 2006). He presented the
value chain analysis as a model for the identification and measurement of those activities
comprising a firm’s value chain.
Within the value chain, there are two distinct sets of activities that a firm undertakes.
The first set of activities is deemed to be primary activities, as they are directly related to
the products or services that a firm sells to a customer.

Support activities make up the second set. Those activities relate to functions that are
contained within a firm’s infrastructure that assist in the performing of the firm’s primary
activities. All of these activities, whether they are primary or support activity, are
interdependent (Walsh, 2011). As with Porter’s value chain (Figure I-2), all activities
within the value chain are interdependent and must be managed together by an
organization in order to succeed. This paper analyzes Samsung’s success factors through
this value chain model. This paper focuses on understanding how Samsung has
transformed itself from a mediocre orignal equipment manufacturers based on low cost
advantages to a world class company with a strong brand and premium products since
declaration of the New Management in 1993. This research investigated many relevant
materials such as business magazines and newspapers to learn about various factors that
contributed to the Samsung’s success and interviewed several directors of Samsung.

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.

PRODUCT MIX OF SAMSUNG

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 SAMSUNG
Samsung is committed to complying with local laws and regulations as well as applying a strict
global code of conduct to all employees. It believes that ethical management is not only a tool for
responding to the rapid changes in the global
business environment, but also a vehicle for
building trust with its various stakeholders
including customers, shareholders, employees,
business partners and local communities. With an
aim to become one of the most ethical companies In
the world, Samsung continues to train its employees
and operate monitoring systems, while practicing
fair and transparent corporate management.

Samsung follows a simple business philosophy: to

devote its talent and technology to creating superior
products and services that contribute to a better global society. To achieve this, Samsung sets a
high value on its people and technologies.

TARGET CUSTOMER SEGMENT OF THE SAMSUNG

Segmentation involves dividing population into different groups on the basis of their common
characteristics. Targeting is associated with selecting specific group(s) as consumers of products
and services. Lastly, positioning refers to the selection of the marketing mix the most suitable for
the target customer segment.

Samsung uses the following types of positioning:

Multi-segment positioning. Samsung targets more than one segments at the same time through
offering several packages of products and services. For example, there are several variations of
Samsung SMART Signage professional displays with different sizes, screen resolutions and
functionalities and ultimately with different price tags. Thus, Samsung appeals to the needs and
wants of consumers with varying financial capabilities.

Imitative positioning. Samsung is known to imitative its main competitor Apple in product in
design, functionalities, as well, as marketing strategy.

Anticipatory positioning. Certain Samsung products such as mobile image sensors currently
have low turnover. However, these product have been developed with the anticipation that the
turnover will increase in the future.

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The following table illustrates Samsung segmentation, targeting and positioning:

Type of Segmen- Samsung target customer segment

segmentation tation
criteria
Samsung IT & Samsung Consumer Samsung  Device
Mobile Electronics Solutions
Communications

Geog-raphic Region 80 countries 80 countries 80 countries

worldwide worldwide worldwide

Density Urban/rural Urban/rural Urban/rural

Age 18-65 25-65 25-60

Demo-graphic Gender Males & Females Males & Females Males & Females

Life- Bachelor Stage Bachelor Stage Bachelor Stage

cycle
stage Newly Married Newly Married Newly Married
Couples Couples Couples

Full Nest I Full Nest I Full Nest I

Full Nest II Full Nest II Full Nest II

Full Nest III Full Nest III Full Nest III

Empty Nest I Empty Nest I

Empty Nest II Empty Nest II

Solitary Survivor I

Solitary Survivor II
Occupa- Students, Employees, Students,
tion employees, professionals employees,
professionals professionals

Beha-vioral Degree ‘Hard core loyals’ ‘Hard core loyals’ ‘Hard core loyals’
of loyalty
‘Soft core loyals’ ‘Soft core loyals’ ‘Soft core loyals’

‘Switchers’ ‘Switchers’ ‘Switchers’

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 Benefits Sense of belonging User-friendliness & Advanced
sought simplicity functionality
Perception of
trendiness High quality for User-friendliness &
competitive price simplicity
Advanced
functionality Overall high quality

User-friendliness &
simplicity

Overall high
quality
Persona- Determined Easygoing Ambitious
lity
Ambitious Cost-conscious Trendy

Trendy
User non-users, potential non-users, potential non-users, potential
status users, first-time users, first-time users, users, first-time
users, regular users, regular users, and ex- users, regular users,
and ex-users users and ex-users

Psychographic Social Middle class Working class Middle class

class
Upper class Middle class Upper class
Lifestyle Mainstreamer Resigned Mainstreamer

Succeeder Mainstreamer Aspirer

Explorer Aspirer Succeeder

Reformer Explorer Explorer

PLC DIAGRAM OF SAMSUNG

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Introduction Stage :-
Samsung was founded as a grocery trading store on March 1, 1938, by Lee Byung-Chull. He
started his business in Taegu, Korea, trading noodles and other goods produced in and around the
city and exporting them to China and its provinces. (The company name, Samsung, came from
the Korean for “three stars.”) After the Korean War, Lee expanded his business into textiles and
opened the largest woolen mill in Korea. He focused heavily on industrialization with the goal of
helping his country redevelop itself after the war. During that period his business benefited from
the new protectionist policies adopted by the Korean government, whose aim was to help large
domestic conglomerates (chaebol) by shielding them from competition and providing them easy
financing. In the late 1950s the company acquired three of Korea’s largest commercial banks as
well as an insurance company and firms that made cement and fertilizer. Samsung in the 1960s
acquired more insurance companies as well as an oil refinery, a nylon company, and
a department store.

During the 1970s the company expanded its textile-manufacturing processes to cover the full line
of production—from raw materials all the way to the end product—to better compete in
the textile industry. New subsidiaries such as Samsung Heavy Industries, Samsung Shipbuilding,
and Samsung Precision Company (Samsung Techwin) were established. Also, during the same
period, the company started to invest in the heavy, chemical, and petrochemical industries,
providing the company a promising growth path.
Lee Byung-Chull died in 1987 and was succeeded by his son Lee Kun-Hee. Samsung was split
into five companies; electronics remained under Lee Kun-Hee’s leadership, and the other four
companies were run by other sons and daughters of Lee Byung-Chull. Lee Kun-Hee felt that
Samsung had become complacent because of its dominant position in the South Korean economy

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and was unprepared for global competition. He famously said to Samsung executives, “Change
everything but your wife and kids.” Under what Lee termed a “new management” concept,
Samsung insisted that subordinates point out errors to their bosses. It also stressed quality of
products over quantity, promoted women to the ranks of senior executives, and
discouraged bureaucratic practices.

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