Creating Customer Value

Founded in 1938◦ exporter of dried fish, vegetables, and fruits◦ flour mill and confectionery machines

1950’s Economic Stabilization◦ Korean War - Samsung lost all assets◦ aimed to help rebuild Korean economy; entered the

manufacturing industry (sugar,fabrics)◦ became a leader in modern business practices (recruiting

from outside) 1960’s Expansion of Key Industries

◦ entered electronics and chemical industries◦ 1969 established Samsung Electronics Co.

Samsung Group

Samsung Group

Electronics28%

Machinery & Heavy

Equipment6%

Chemicals2%

Financial Services

26%

Other37%

% of Sales ($427B)

• distribution• hotels• amusement

theme parks• trading• construction• textile• advertising• baseball team• security

• cameras• aircraft• ships• dump trucks• oil trucks

• polymerized compounds• plastics• specialty chemicals

• life insurance• credit card services• securities trading• finance and trust

management services

• home appliances• wireless

communication• semiconductors

Understand what drives value for Samsung customers?

Understanding Samsung value proposition Identify the customers and segments where

Samsung can create more value relative to competitors

Create a win-win price Focus investments on most valuable

customers

Outline

What drives value for Samsung Customers?? Survey Analysis

Samsung Service

AC

Blu R

ay -

DVD

Mobile

Camer

a

Lapt

op

Home

Thea

tre

Dishwas

her

Micro

wave

TV /

Mon

itor

Tabl

et0

4

8

12

16

20

Product Distribution

Use Products50%

Not Use Products50%

People Using Product

Highl

y Dis

satis

fied

Dissat

isfied

Satis

fied

Highl

y Sa

tisfie

d0

10

20

30

40

Samsung Products

Highl

y Dis

satis

fied

Dissat

isfied

Satis

fied

Highl

y Sa

tisfie

d0

10

20

30

40

Customer Service

Survey Analysis Quality, Technology, Innovation and Variety

Yes84%

No16%

Quality as per Requirement

Yes81%

No19%

Recommend

Yes74%

No26%

Pricing as Quality of Product

Yes77%

No23%

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Understanding Samsung value propositionSamsung Industries

Value proposition

Product

Samsung electronics

Innovation, Advance Technology, Price

LED TVs, Smart phones,ACs, Semiconductors, Smart Cameras, etc

Samsung Engineering

Advance and Green Technology, Fast project execution, competitive cost and excellent communication

Upstream oil and gas facilities, oil refining plants, petrochemical plants, gas plants

Value Proposition (Continued)Samsung Industries

Value propositin

Product

Samsung Heavy Industries

Advance and Green Technology,Faster Execution

Bulk carriers, container vessels, crude oil tankers, cruisers, etc.

Samsung Semiconductors

Less energy, high speed, Green technology

SRAM, DRAM, LSI products, AP( Application processor

By Earning its customers interest.

Catering to the needs of the Customer.

Valuing the employees who share the vision.

How can Samsung create more values than its competitors ?

Value for the Money

PLACE 22%PRODUCT 9%SERVICE 14%PEOPLE 9%COMMUNICATION 5%IMAGE 11%PRICE 30%

A CUSTOMER VALUE MODEL

PERCEIVED CUSTOMER VALUE

Creating a Win-Win Price

Samsung Cameras

Samsung LCD

Samsung peripherals / Memory cards

Samsung mobile phones.

Samsung Ac/Refrigerator.

Samsung Laptops

Samsung NP300E5X-S01IN Laptop (3rd Gen Ci5/ 4GB/ 750GB/ DOS/ 1GB Graph)Intel Core i5 4 GB DDR3 RAM15.6 Inch Screen

Rs. 37739Dell:- 35600/-Sony Vaio:- 48000/-

Samsung PL120 Point & Shoot

• 14.2 Megapixels• Optical Zoom: 5x• CCD Image Sensor• With 2.7 inch LCD

Rs. 8950

Nikon:- Rs. 8000Canon:- Rs. 9500

Samsung Festive Season Consumer Offers 2012

Recent Case of LED TV & LCD TVPricing

Customers the life blood of any business

“Retention by service”.Online support portal.Customized products and services for Indian consumers.

Large no. of service centers across globe.

CUSTOMER SALES AND AFTER SALES

ISSUES

Hardware=5%Software=75%Handset=10%Others=10%

PROBLEMS FACED BY REPAIRERS

SOFTWARE

UNKNOWN=18DISLIKED=24INDIFFERNT=8

SAMSUNG KIES

THANK YOU