SAMSUNG'S MARKETING STRATEGY IN INDIA

PRODUCT INNOVATION

Samsung's product range in India included CTVs, audio and video products, information technology products, mobile phones and home appliances (Refer Exhibit I). Its product range covered all the categories in the consumer electronics and home appliances. Analysts felt that the wide product range of Samsung was one of main reasons for its success in the Indian market. Samsung positioned itself on the technology platform...

Pricing

Pricing also seemed to have played a significant role in Samsung's success...

Distribution

Along with the launch of new products, Samsung also consolidated its distribution system. Samsung had 18 state-level distribution offices and a direct dealer interface. The direct dealer interface helped the company get quick feedback from dealers, and enabled it to launch products according to consumer needs...

Advertising and Sales Promotion

In 1995, when Samsung entered India, it realized that Indian consumers were not familiar with the company. So, in order to establish itself in the Indian consumers' mind, Samsung launched corporate advertisements highlighting its technologically superior goods...

We are investing aggressively in marketing to transform our company to be truly market driven and to establish our Samsung brand as the most trusted and preferred brand in the market."

- Jong Yong Yun, vice-chairman & CEO, Samsung Electronics, in February 2003.

The "Team Samsung India First" Campaign

In August 2002, India's leading consumer electronics player, Samsung India Electronics Ltd. (Samsung) announced the signing on of seven celebrity cricketers - 'Team Samsung', as its brand ambassadors.

In doing this, it aimed to cash in on the popularity of cricket in India. However, the company's hopes of celebrity endorsement received a setback due to anti-ambush marketing clauses2, arising from ICC's agreement with some other companies.

In place of the ads featuring the cricketers, Samsung launched its - 'Team Samsung. India First' campaign all over the country in December 2002.

Said Arun Mahajan of Mudra, Samsung's ad agency, "The focus has been to evolve concepts to do with the players, to promote the cause of cricket and patriotism.'' The copy of the print ad read, 'With Team Samsung, It's India First.''

Samsung - The Making of a Global Brand

The Making of a Global Brand

In 1993, as a first step in its globalization drive, Samsung acquired a new corporate identity. It changed its logo and that of the group. In the new logo, the words Samsung Electronics were written in white color on a blue color background to represent stability, reliability and warmth.

The words Samsung Electronics were written in English so that they would be easy to read and remember worldwide. The logo was shaped elliptical representing a moving world - symbolizing advancement and change...

Product Initiatives

Samsung realized that to become a global brand, it had to change the perceptions of consumers who felt that it was an OEM player and associated its products with low technology. Generally, consumers in developed markets (such as the US) opted for Samsung when they could not afford brands such as Sony and Panasonic. To change consumer perceptions, Samsung decided to focus on product design and launch innovative products...

Consolidating Presence in Different Markets

To change its brand image, Samsung decided to associate itself with global sport events. In 1998, when Seoul hosted the Olympics, Samsung became the official sponsor of the wireless technology to the games. This move helped it boost its image worldwide. In 1999, Erick Kim (Kim), a Korean American working with IBM, took over as the marketing head of Samsung.

He focused on capturing the US retail market for consumer electronic goods, such as TVs, washing machines and microwave ovens, through partnerships with US retailing giants. Samsung entered into a partnership with Best Buy one of the top US retailers. Best Buy executives conducted customer research to analyze consumer-buying behavior...

Advertising and Promotional Strategies

In 1997, Samsung launched its first corporate advertising campaign - Nobel Prize Series. This ad was aired in nine languages across Europe, the Middle East, South America and CIS countries. The advertisement showed a man (representing a Nobel Prize Laureate) passing from one scene to another. As the man passes through different scenes, Samsung products transform into more advanced models. According to company sources, the idea was to convey the message that Samsung uses Nobel Prize Laureates' ideas for making its products...

Samsung Mobiles: Smartphone strategy for the Indian marketMay 30, 2011

Samsung Mobile’s line-up of smartphones and tablets has helped the handset maker rally a significant share in a market that is largely dominated by Nokia. Samsung sold 12.6 million smartphones in the quarter ended March 2011, boosting its global smartphone market share by 7.4 percentage points from the previous year to 12.2 per cent. It now ranks fourth after Nokia, Apple and Research in Motion (RIM). Samsung is only 1.2 percentage points behind RIM and is expected to grab the number three spot in 2011 if it maintains its current growth rate. Advance orders for Samsung’s Galaxy S2, which was released in

April 2011, surpassed 3 million units within a week of the launch, posing a threat even to Apple. At this rate, its sales are expected to top 14 million units in the current quarter.

FOCUS ON INDIA  

India is the fastest growing telecom market in the world and presents an attractive opportunity for handset makers like Samsung. As per a GFK Nielson report, the

Indian mobile handset market was pegged at around 155 million units in 2010. With the country adding 20 million mobile customers every month, the mobile device market is expected to grow at over 16 per cent year-on-year. Driven by the launch of 3G services, the smartphone market alone is likely to grow at over 50 per cent per annum for the next two years.

The Korean handset maker’s smartphone strategy has clicked well in the Indian handset space. The company opened its smartphone account in India in June 2010 with the launch of its Galaxy S and Wave models, and now has over 12 smartphones on almost all the popular platforms including Android, Windows and its internally developed software, Bada. Samsung had a share of 10-15 per cent in the smartphone market as of January 2011, and is aiming to notch it up to 40 per cent by end-2011.

According to company officials, in 2011, Samsung’s mobile handset division will be driven by two key factors – touchscreens and smartphones. In this segment, the company has also launched its tablet PCs. Thanks to the hugely positive response that the Tab has received across India, Samsung is targeting a 50 per cent share of the Indian tablet market in 2011. While tablet PCs are still a niche segment in the country, if Samsung positions its products well, it could well succeed in meeting its targets. A key area of focus for Samsung will be the enterprise segment, which is showing an increased demand for such devices.

In all, Samsung has over 50 handset models in India, ranging from entry-level to mid-range and high-end smartphones. According to a GFK Nielsen report, the company’s overall market share stands at around 23 per cent of the Indian mobile market in value terms.

MANUFACTURING AND R&D  

Samsung has two manufacturing units in India, in Chennai and Noida, and produces around a million units of mobiles per month. While the company currently  manufactures only its entry-level Guru series at these units, it plans to start producing smartphones as well in India going forward.

The company has also increased its focus on applications to provide users with a wide range of applications across various platforms like Android, Windows and Samsung’s own Bada. The company is reportedly working with around 800 application developers in the country to develop customised applications for the Indian consumer.

However, offering innovative products in the global and Indian markets warrants a strong focus on R&D and Samsung is not cutting corners. Over 9 per cent of the company’s global expenditure is spent on R&D every year. The company has a team of 3,000-odd engineers across its two R&D facilities in India, customising its smartphones and tablet PCs, fine-tuning its mobile operating system, creating applications, etc.

Samsung has two software development centres in the country – the Samsung India Software Centre (SISC) in Noida, Uttar Pradesh, and Samsung Electronics India Software Operations (SISO) in Bangalore. The latter is already working on more advanced technologies like 4G. In fact, the mobile communication team at SISO is at

advanced stages of developing devices on technology platforms including LTE, HTML5 and Android OS for tablets and dolphin browsers in smartphones. The Bangalore R&D centre has collaborated on global projects and developed a dongle for 4G mobiles that has been launched in Norway, Sweden and Finland.

THE ROAD AHEAD  

Samsung sees the increasing demand for 3G-enabled handsets as an opportunity to grow in 2011. According to data from Gartner, the sales of 3G-enabled handsets comprised 16.7 per cent of the industry’s total sales in 2010, up from 9.2 per cent in 2009. By 2011-13, 3G device sales are expected to account for 69 per cent of total sales. With an array of 3G devices launched for the Indian consumers, Samsung has created a market demand for 3G smartphones and is also offering users access to content and downloadable application software. At present, Samsung has 17 handsets with 3G applications in India, with prices ranging from Rs 8,990 to Rs 29,290. 

However, the company needs to watch out for competition. LG, for instance, is lining up several new smartphones. Its new mid-priced Optimus One handset has done well and LG has announced its target to double its global smartphone shipments to 15 million units in 2011.

Beating Sony?

In 2001, Samsung declared that it would beat Sony in the consumer electronics market by 2005. Kim said, "We want to beat Sony. Sony has the strongest brand awareness; we want to be stronger than Sony by 2005." However, analysts felt that it would be difficult for Samsung to beat Sony so soon as Samsung was regarded as an OEM player till the mid-1990s.

In 2002, while Samsung was ranked 34th with a brand value of $8.1 billion, Sony was ranked 21st with an estimated brand value of $13.90 billion. However, while Samsung's rank had moved up from 42 in 2001, Sony's had slipped down from 20th in 2001. In the third quarter of 2002, Samsung emerged as the world's number three player in the mobile market, beating Siemens and Ericsson, with a marketshare of 36.4%...

We are highlighting the main points on Samsung Company. Our report will surely be fruitful for the marketing strategy of Samsung.

Samsung intends to earn world leadership and secure overwhelming competitive strength. It is synchronizing product development, sales, manufacturing, marketing and design. Samsung’s slogan “everyone’s invited” describes its broad target market strategy, with a vast line of products. According to our analysis, Samsung’s main strengths are its Global Business Network, Brand Name Credibility, MPR2 technology, TFT LCDs, innovative changes and new styles in Flatron and specially the quality awards that it has won since last two years continuously are positive points for Samsung. Samsung’s Sales and Service centers are in 4 different countries, with vertical sort of distribution system. Samsung can use its strengths as threats for other companies. It can easily raise its image by its quality products and promotional advertisements. Promotional activities can play a key role in capturing the market share for Samsung.

This report highlights four major points and is further sub-divided into parts, which is preceded by a brief abstract of its contents.

Part I presents the introduction and brief History of Samsung; Part II explains the main Strengths, Weaknesses, Opportunities and Threats of the Company; Part III shows the Target Market of Samsung; Part IV presents the Marketing Mix of the Company; Part V gives the Observations and Recommendations. All the things have been discussed according to Samsung’s presence Globally and particularly in accordance to Pakistan. Introduction Established in 1969, Samsung Electronics has emerged as a major player in the world electronics industry. The company consists of 4 main business units: the Digital Media Business, Semiconductor Business, Information & Communications Business and Home Appliances Business. It employs over 66,000 people in some 50 countries worldwide. Samsung Electronics is ranked 131st on the Global Fortune 500 List Samsung is best known for the success it has had in the memory semiconductor industry. From 1992, Samsung Electronics is positioned at the top of the DRAM, semiconductor market. Since then, it has diversified its financial structure and is considered the number 1 company in market share for memory semiconductor chips, TFT-LCDs, CDMA mobile phones and computer monitors. It is also ranked number 4 by sales in the semiconductor industry and number 6 by units in the mobile phone industry. Looking ahead, Samsung's vision is to become a leading company of the digital convergence revolution. The 21st century will be a time where the Internet, wireless communications, networked systems and contents will be united. Various forms of convergence technology that link conventional stand-alone appliances through networks will be developed. In the new digital convergence age, core competitiveness will be determined by how companies develop networks from components to digital products. Few companies have the business structure to form this network in-house. Samsung, however, is ready to lead in this Age as it will use its strengths in semiconductor, telecommunications and consumer electronics technology to develop innovative multi-capable products and create powerful networks that will empower the user for anytime, anywhere communications and a higher quality of life.

CORPORATE SPONSORSHIP GETS FASHIONABLE

The competition is a nationwide model search seeking a male and female Samsung Mobile who will open Sanlam South African Fashion Week (SSAFW) in August this year. The winning pair will secure a one-year contract with Samsung Mobile to appear in selected above and below-the-line campaigns for the brand and, to provide international exposure for the pair on this corporate advertising platform, they will win a contract with Next Models in New York to the value of US$75 000 each.

“The partnership between Samsung Mobile and SSAFW comes at a time when the movement towards the fusion of art, fashion and technology is stronger than ever and where corporate sponsorship of this kind, are slowly developing towards communicating to a niche market,” says Justin Hume, Samsung marketing manager – Mobile Phones, “Today sees more technology than ever forming a part of our daily lives which transcends into an incorporation of these functional items into the milieu of style.”

The Samsung Mobile brand wishes to communicate with this new breed of fashion-forward and technologically-savvy consumer who are socially liberal and sophisticated and have proven to be particularly brand loyal. In turn they demonstrate an appreciation of corporate involvement in events and projects in this sphere. Marketing studies have shown that brands marketing to a more refined audience have ample opportunity, making the brand more popular.

It is the bond between technology and fashion that Samsung Mobile is entrenching through the Samsung Mobile Icône Modéle competition. Additionally, Samsung Mobile’s fusion with Sanlam South African Fashion Week, not only enhances the credibility of this highly regarded fashion week, attracting a hefty purchasing public, but it also illustrates the fashion focused and technologically trendy Samsung look. Samsung radiates technological elegance and stylish panache, joining forces with SSAFW compliments and enhances this techno – fashion centered brand. Corporate sponsorships from renowned corporate brands make style and artistic endeavors possible and accessible. Yet, Samsung Mobile’s joint sponsorship with SSAFW is especially innovative, as corporate sponsorships of artistic endeavors are still relatively new.

Additionally fashion victims and trend targets find a little endorsement from a corporate sponsor further boosts confidence and builds trust in the brand. It no longer matters what you wear, rather the importance lies in who you wear and what brands accessorize and compete your look. The Giorgio-Armani Samsung cellphone certainly was a hit at the launch of the Samsung Mobile Iĉone Modéle on 13 March 2008. The size of a credit card, it’s easy to mistake for the most widely used accessory among shoppers worldwide! Director of Sanlam South African Fashion Week, Lucilla Booyzen, says, “A designer gadget completes your look just as much as a pair of shoes or a great handbag, ensuring you are toujours a la mode.”

Samsung Mobile is employing a diverse range of media to communicate the passion and vigor behind this brand. Apart from the mobile phone motivated artwork, a fully integrated media campaign is set to roll out over the next 6 months to launch the

competition to each and every eligible and eager girl and guy in South Africa.  An online micro-site has been built for national access and a viral element will accompany this. Samsung Mobile is utilizing outdoor media as well as a print campaign that includes Cosmopolitan magazine and a radio campaign with national youth station 5FM and a number of campus community stations. Selected SABC, M-NET and DStv channels will also be involved in an above-the-line campaign to ensure that each and every stone is turned to find the first male and female Samsung Mobile Icône Modéle.  In total over R5 million is being spent to ensure the right models are found.

In closing to his speech at the launch Hume summed up the partnership by saying, “Your mobile phone is an extension of your arm, you’re never without it and it’s a highly visual object no matter what you’re wearing. The fusion between fashion and technology is almost seamless, particularly in South African society where cell phones are societal status symbols, somewhat like shoes used to be in ancient times when the length of the toe of your shoes communicated your rank in society.”

Samsung Group

From Wikipedia, the free encyclopedia

Jump to: navigation, searchNot to be confused with Samseong Station.

This article contains Korean text. Without proper rendering support, you may see question marks, boxes, or other symbols instead of Hangul or hanja.

Samsung Group

삼성 그룹

Type Public (Korean: 삼성 그룹)

Founded 1938

Founder(s) Lee Byung-chul

HeadquartersSamsung Town, Seoul, South

Korea

Area served Worldwide

Key people

Lee Kun Hee (Former Chairman and

CEO)

Lee Soo-bin (Acting president, CEO

of Samsung Life Insurance)[1]

Industry Conglomerate

Products

Electronics

Shipbuilder

Financial

Chemical

Retail

Entertainment

Flash memory

Aviation

Optical storage

Mobile phones

Smartphones

Hard disk drive

Revenue ▼ US$ 173.4 billion (2008)[2]

Net income ▼ US$ 10.7 billion (2008)[2]

Total assets ▼ US$ 252.5 billion (2008)[2]

Total equity ▼ US$ 90.5 billion (2008)[2]

Employees 276,000 (2008)[2]

Subsidiaries

Samsung Electronics

Samsung Heavy Industries

Samsung C&T etc.

Website Samsung.com

The Samsung Group (Korean: 삼성 그룹) is a multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea. It is the world's largest conglomerate by revenue[3][4] with an annual revenue of US$173.4 billion in 2008[2] and is South Korea's largest chaebol. The meaning of the Korean word Samsung is "tristar" or "three stars".

The Samsung Group is composed of numerous international affiliated businesses, most of them united under the Samsung brand including Samsung Electronics, the world's largest electronics company,[5][6][7] Samsung Heavy Industries, the world's second largest shipbuilder[8] and Samsung C&T, a major global construction company.

Samsung has been the world's most popular consumer electronics brand since 2005 and is the best known South Korean brand in the world.[9] Samsung Group accounts for more than 20% of South Korea's total exports[10] and is the leader in many domestic industries, such as the financial, chemical, retail and entertainment industries. The company's strong influence in South Korea is visible throughout the nation, which has been referred to as the "Republic of Samsung".[7][11]

Contents 1 Background 2 History 3 Market share 4 Sports sponsorship 4.1 Samsung sponsor of the Olympics 5 See also 6 Notes and references

7 External links

BACKGROUND

Samsung is the world's leading consumer electronics brand and one of the top twenty global brands.

View of the Samsung logo inside the Time Warner Center in New York City.

Currently helmed by Lee Soo-bin, CEO of Samsung Life Insurance, it has been run by generations of one of the world's wealthiest families, formerly by chairman Lee Kun-Hee, the third son of the founder, Lee Byung-Chull.

Many major South Korean corporations such as CJ Corporation, Hansol Group, Shinsegae Group and Joong-Ang Ilbo daily newspaper were previously part of the Samsung Group. Though they are still controlled by ex-Chairman Lee Kun-hee's relatives, they are no longer officially Samsung affiliates. Some leading companies in South Korea, notably MP3 player manufacturer iriver and search engine portal Naver, were established by ex-Samsung employees. A large number of South Korean firms, particularly those in the electronics industry, are dependent on Samsung for the

supply of vital components or raw materials such as semiconductor chips or LCD panels. This has led to continued allegations of price fixing and monopolistic practices. Samsung Group also owns the Sungkyunkwan University, a major private university in South Korea.

Samsung Group accounts for more than 20% of South Korea's total exports[10] and in many domestic industries, Samsung Group is the sole monopoly dominating a single market, its revenue as large as some countries' total GDP. In 2006, Samsung Group would have been the 34th largest economy in the world if ranked, larger than that of Argentina.[12] The company has a powerful influence on the country's economic development, politics, media and culture, being a major driving force behind the Miracle on the Han River; many businesses today use its international success as a role model.

History

Samsung Group headquarters at Samsung Town, Seoul.

In 1938, Lee Byung-Chull founded Samsung, a small trading company with forty employees located in Daegu. The company prospered until the Communist invasion in 1950 when he was forced to leave Seoul and start over in Busan. During the war, Samsung's businesses flourished and its assets grew twenty-fold. In 1953, Lee started a sugar refinery—South Korea’s first manufacturing facility after the Korean War. The company diversified into many areas and Lee sought to establish Samsung as an industry leader in a wide range of enterprises. The company started moving into businesses such as insurance, securities, and retail. In the early 1970s, Lee borrowed heavily from foreign interests and launched a radio and television station.

South Korean President Park Chung-hee’s regime during the 1960s and 1970s would prove a boon for Samsung. Park placed great importance on industrialization, and focused his economic development strategy on a handful of large domestic conglomerates, protecting them from competition and assisting them financially. Samsung was one of these companies. Park banned several foreign companies from selling consumer electronics in South Korea in order to protect Samsung from foreign competition and nurture an electronics manufacturing sector that was in its infancy. “To make up for a lack of technological expertise in South Korea, the South Korean

government effectively required foreign telecommunications equipment manufacturers to hand over advanced semiconductor technology in return for access to the Korean market”. Such policies eventually lead to Samsung manufacturing the first Korean dynamic random access memory chips.

Samsung Group later formed several electronics-related divisions, such as Samsung Electronics Devices Co., Samsung Electro-Mechanics Co., Samsung Corning Co., and Samsung Semiconductor & Telecommunications Co., and grouped them together under Samsung Electronics Co., Ltd. in 1980s. Its first product was a black-and-white television set.

In the late 1980s and early 1990s, Samsung Electronics invested heavily in research and development, investments that were pivotal in pushing the company to the forefront of the global electronics industry. “By the 1980s Samsung was manufacturing, shipping, and selling a wide range of appliances and electronic products throughout the world”. In 1982, it built a television assembly plant in Portugal; in 1984, it built a $25 million plant in New York; and in 1987, it built another $25 million facility in England.

The 1990s saw Samsung rise as an international corporation. Not only did it acquire a number of businesses abroad, but also began leading the way in certain electronic components. Samsung's construction branch was awarded a contract to build one of the two Petronas Towers in Malaysia, Taipei 101 in Taiwan and the Burj Khalifa in United Arab Emirates (founded by Callum Cuirtis), which is the tallest structure ever constructed.[13] In 1993 and in order to change the strategy from the imitating cost-leader to the role of a differentiator, Lee Kun-hee, Lee Byung-chull’s successor, sold off ten of Samsung Group's subsidiaries, downsized the company, and merged other operations to concentrate on three industries: electronics, engineering, and chemicals. In 1996, the Samsung Group reacquired the Sungkyunkwan University foundation.

Compared to other major Korean companies, Samsung survived the Asian financial crisis of 1997-98 relatively unharmed. However, Samsung Motor, a $5 billion venture was sold to Renault at a significant loss. Additionally, Samsung manufactured a range of aircraft from 1980 to 1990s. The company was founded in 1999 as Korea Aerospace Industries(KAI), the result of merger between then three domestic major Aerospace divisions of Samsung Aerospace, Daewoo Heavy Industries and Hyundai Space and Aircraft Company (HYSA). Korea Aerospace Industries(KAI) - largest shareholders as of 2009 (Korea Development Bank 30.53%, Samsung Techwin 20.54%, Doosan(formerly known as Daewoo Heavy Industries) 20.54%, Hyundai Motor 20.54%).

Most importantly, Samsung Electronics (SEC) has since come to dominate the group and the worldwide semiconductor business, even surpassing worldwide leader Intel in investments for the 2005 fiscal year. Samsung's brand strength has greatly improved in the last few years.

Samsung became the largest producer of memory chips in the world in 1992, and is the world's second-largest chipmaker after Intel (see Worldwide Top 20 Semiconductor Market Share Ranking Year by Year). From 1999 to 2002, Samsung conspired with Hynix Semiconductor, Infineon Technologies, Elpida Memory

(Hitachi and NEC) and Micron Technology to fix the prices of DRAM chips sold to American computer makers. In 2005 Samsung agreed to plead guilty and to pay a $300 million fine, the second-largest criminal antitrust fine in the US history.

In 1995, it built its first liquid-crystal display screen. Ten years later, Samsung grew to be the world's largest manufacturer of liquid-crystal display panels. Sony, which had not invested in LCDs, contacted Samsung to cooperate. In 2006, S-LCD was established as a joint venture between Samsung and Sony in order to provide a stable supply of LCD panels for both manufacturers. S-LCD is owned by Samsung and Sony 51% to 49% respectively and operates its factories and facilities in Tangjung, South Korea.

Considered a strong competitor by its rivals, Samsung Electronics expanded production dramatically to become the world's largest manufacturer of DRAM chips, flash memory, optical storage drives and it aims to double sales and become the top manufacturer of 20 products globally by 2010. It is now the world's leading manufacturer of liquid crystal displays.

Samsung Electronics, which saw record profits and revenue in 2004 and 2005, overtook Sony as one of the world's most popular consumer electronics brands, and is now ranked #19 in the world overall. Behind, Nokia, Samsung is the world's second largest by volume producer of cell phones with a leading market share in the North America and Western Europe.

1.0 Executive Summery

Samsung Electronics has proven to the business world that they are one of the

most prestigious technology companies in the industry. With more technology

advancements than our market can handle at this point and time, Samsung has paved

the way for the future in electronics. One of the most popular new “toys” in the

market today, is the unbelievable 3D TV. The first 3D TV was launched in March of

2010, and has already had a major impact on the market. With the release earlier this

year, Samsung dominated the market, controlling nearly 90% of the total share.

Samsung’s product, the 9000 series TV, is incomparable to competition with its ultra-

thin screen, measuring only 0.3 inches in width. The 9000 series also comes with a

full color spectrum that makes for an incredible viewing experience.

Although Samsung is dominating the 3D market, we still have very detailed

strategies and tactics that we believe will give us an increased competitive advantage

over our competition. The company’s main emphasis the past couple years has been

on integration, union, and encouraging innovation. Samsung is always preparing for

the next big item to hit the market, which is why their technology is so far ahead of all

leading competitors. In the future, we plan to enter the 3D video gaming market with

a partnership with Microsoft. This will give us access to all of Microsoft’s gaming

technology, in which we will combine with our quality of sound and viewing stations

to create the ultimate gaming experience. Of course, throughout our journey through

this market, we will continue to provide the best ad campaigns for the public so that

they will never forget our product. We will put as much prominence as possible in the

sleek design and the one of a kind ultra-thin panel, only available in the Samsung

9000 series. By having an effective ad campaign, we will be able to catch the eye of

many different target groups. Our major target groups are men around the ages of mid

twenties to late thirties, Caucasian males, with a new and growing family. Studies

show that this category is more likely to buy the TV, along with a gaming system,

than other aged males. We are also targeting “Cube Tubers”. This is a group that

consists of young people who grasp onto new technology quickly. This group is a

large part of the 3D TV market right now.

If the discussed strategies and tactics are successfully carried out, Samsung

and the 9000 series 3D TV, will hold the top spot in the television market for years to

come. When this market starts to decline, Samsung has the technology ready for the

next big wave of televisions, 3D TV without glasses.

2.0 Situation Analysis

2.1 Samsung Electronics’ Vision Statement:

“Inspire the world, Create the future.”

These six words coined the vision statement for Samsung Electronics (SE) in

early 2010 in correspondence with the release of its first 3D television. This vision

statement is a part of SE’s “Vision 2020” plan, and is considered the motto of the

decade for the industry leading organization. This new vision captures Samsung’s

dedication to inspiring its communities by leveraging Samsung’s three crucial

strengths: “New Technology,” “Innovative Products,” and “Creative Solutions.” It

also promotes new value for Samsung Electronics’ core networks: Industry, Partners,

and Employees. Samsung’s commitment, set forth through their vision statement, is to

contribute to a better world and a richer experience for all.

2.2 Current Strategy:

Samsung’s current strategy in the 3D television market is to seize a dominant

market share while the market is being pioneered and to maintain the majority market

share throughout the stages of the 3D television life cycle. With the recent release of

3D TVs into the market in early 2010, the product is still considered to be in the

introduction stage of the product life cycle. While Samsung introduced its new

slogan, "Inspire the world, Create the Future," the company's strongest emphasis in

the last two years has been on convergence and integration. Samsung has re-

organized their corporation to encourage cross-pollination and innovation. This is

demonstrated by the progressive approach to the market that Samsung has taken,

acknowledging the lack of immediate growth in the market, and innovating to prepare

for the potential growth in the market. The current strategy being implemented is

merely preparation for the growth potential in the 3D television market. Samsung

realizes that the growth of the 3D television market is dependent on the volume of 3D

content available. Due to the market’s dependability on other industries to produce 3D

content, Samsung has incorporated an effective plan to accelerate the availability of

the content. This segment of the current strategy was addressed by Samsung’s recent

partnerships with, 3D content industry leading, partners Technicolor and

DreamWorks Pictures.

This current strategy has been effective, considering that, as of October 2010,

the aggressive early launch plan has assisted Samsung in acquiring an 88% share of

the 3D television market in the U.S. Samsung’s current strategy also includes the

expectation that their dominance and innovation in the High-Definition Television

(HDTV) market will carry over as the 3D content availability increases. This current

strategy can also be seen in Samsung’s advertising efforts, as they launched a 12.25

million dollar marketing campaign in February in the UK. Currently, the strategy is

established as progressive, meaning that Samsung is withholding the latest

innovations fro the 3D-TV market. Samsung has entered into a transitional phase, as

they introduce the newest segment in the television market, and await the arrival of

appealing 3D content to compliment their technology. Samsung’s previous strategies

have thrived in the constantly evolving television market, innovating and pioneering

new markets while developing break through products at competitive prices.

Samsung has positioned themselves throughout the past five years to dominate the

next generation of 3D-TV market. Samsung’s dedication to innovation in the flat-

panel TV market has resulted in their ability to deliver the breakthrough products and

superior values that will keep them at the forefront of the global TV market.

Samsung began their dominance of the digital television market in 2005 and

retained their top position until 2009 when, greenhorn to the market, Vizio took the

top spot. In 2005, Samsung achieved their first No. 1 Market Share ranking in the

High Definition television (HDTV) market. Although they lost the No. 1 market share

of Liquid Crystal Display (LCD) televisions, 2005 proved Samsung to be a step ahead

of the competition. They performed well enough that year to earn the 27th spot on the

“World’s Most Admired Company” list by Fortune Magazine. 2007 brought

Samsung the sixth consecutive year with the No. 1 market share for LCD screens.

Samsung pioneered advanced 3D technology, launching a 3D DLP TV in 2007, and a

3D Plasma-TV for 2008. In 2008, Samsung led the global TV market for the third

consecutive year as they continued to intrigue customers with outstanding picture

quality, elegant liquid-crystal bezel styling, and advanced interactive and connectivity

options that allow customers to enjoy pictures, movies, and music from the Internet,

their own home network, or USB devices. In 2009, Samsung introduced the newest

line of HDTV that was certain to be a global hit, the Light Emitting Diode Television

(LED-TV). The LED-TV lineup Samsung offered was the next advancement in LCD

technology, replacing the conventional cold-cathode fluorescent lamp backlighting

with eco-friendly LED backlighting. The result of this new market segment Samsung

created was a full-featured TV with superior picture quality, stylish ultra slim

enclosures, and dramatically lower power consumption. 2009 also brought success for

Samsung’s brand-recognition campaign as the Samsung brand entered Fortune’s Top

Ten list of the World’s Top Global Brands. Samsung forged a new market by

launching their elegant and revolutionary, Light Emitting Diode (LED) television.

Worldwide, Samsung sold 30 million flat-screen television sets, maintaining the No. 1

market share of Flat Panel TVs (FPTV) the fourth year running. Such achievements

firmly establish Samsung’s leadership both in popular demand and in producing top-

quality products. In March 2010, Samsung was the first company in the world to

market a full HD-3D LED-TV, reinforcing the organization’s leadership within the

industry.

Although Samsung is a world leader in the television market, the product mix

has more depth than simply home entertainment accessories and cell phones. The TV

business and the Mobile Phone business, are key components in the Samsung

Business Portfolio. The TV business holds the top position in the current market. LED

TVs, which has shown explosive growth in the latest market, is a flagship product

within the TV business. LCD TVs and Monitors have also maintained top positions in

their respective categories. Samsung seeks to sustain leadership through constant

innovation and development in new technology, such as 3D. Samsung also inhibits a

world leading Semiconductor business unit, from which they transferred 300

engineers to the TV business unit. This transfer relocated the top performing

engineering team in the company, providing the employees with healthy performance

bonuses every year, and keeping the TV business unit highly productive and

competitive. This in house access to human capital has allowed Samsung to maintain

the top position in the marketplace.

2010 has undoubtedly been the breakthrough year for the revolutionary 3D TV

technology, assuring a very busy year for Samsung. With the release of Series 7000,

Series 8000, and Series 9000 (LED-TV) televisions, Samsung has garnered high

media and consumer praise for perfectly reproducing the range of full HD 3D images

and delivering “true-to-life” and “easy-on-the-eyes” picture quality. Samsung has

been charting the future of television through their 3D TV releases, of which include

LED-TV, LCD-TV and Plasma-TV as well as 3D Blu-ray players, 3D home-theater

systems and total 3D solutions that combine 3D active glass with 3D content.

Samsung’s current strategy is to enrich the television experience and the power of the

products by maintaining the superior picture quality. SE has also began to enrich a

deepened value to customers by continued communications and by differentiated

products, such as expanded Internet-TV features and the launch of the Samsung

application marketplace, “Samsung Apps.” These strategic efforts strengthen the

premium brand image Samsung looks to uphold and assists them in seizing and

maintaining the No. 1 market share ranking.

With competitors simply following the trend of Samsung’s breakthrough

innovations in the market, saying that Samsung is a step above the competitors would

be an understatement. With the 3D TV market segment being introduced, several

companies have identified it as the next big trend in the home entertainment market

and aim to capitalize on the potential growth by entering the market. Some of the top

competitors are Sony, LG Electronics (LG), Mitsubishi Electronics, Vizio, and

Panasonic. Currently, none of Samsung’s competitors can offer a product to rival the

picture quality of the Samsung. Companies like Vizio, however, look to undercut the

quality aspect of Samsung’s product by offering a cheaper, lower quality, alternative

product more accessible to mass market. Samsung will eventually see significant

competition in the 3D TV market. Their greatest competition may come from their

most recent prominent competitor, Vizio. While Samsung maintains quality as a

major selling point, Vizio’s focus is to appeal to the mass market by lowering their

quality standards so they can sell the product for less. Vizio is a market share leader

but an innovative follower, in a market where consumers will be forced to pay for the

new technology and will appreciate the quality due provided by Samsung, which in

turn will negatively impact Vizio.

At Samsung, creativity, collaboration and excellence are the hallmarks of

leadership. Samsung has attracted the world’s most talented managers as they work

continuously evolving the company’s culture to better support their employees.

Samsung fosters innovative ideas that advance technology, creates new products, and

improves the everyday life of their customers. The organizations leadership consists

of veterans of the Samsung brand. Most individuals in top positions have spent well

over thirty years with the organization. This employee retention indicates stability

and accelerates growth within the organization. Samsung is a very customer oriented

organization, offering product support online, by phone, or in stores.

Samsung’s current strategy, taking a transitional approach to the 3D TV

market, while launching several new advertising campaigns to increase awareness of

the new technology, can be seen as very effective due to the role they play in the

market. Understanding the potential growth the market will see, Samsung has taken

innovation to the next level by developing several different 3D products, which could

eventually lead to them attaining complete 3D TV market dominance. The

environment of the Samsung organization breeds innovation and creativity, allowing

Samsung to develop products and that will move them a step closer to there goal of

maintaining dominance of the 3D market.

2.3 Consumer Profile:

With the development of 3D TV technology, Samsung’s target market is

easily identified as the Early Adapter. An early adapter is a consumer who has a very

quick rate of diffusion, the rate at which the market accepts a new product or product

idea. One Strategy Analytics Survey identified “Cube Tubers” as the most likely

consumers of products available in the 3D TV market. These early adopters to new

technology, are usually affluent young men who have redefined cool from having fast

muscle cars, to being good at computer games. “Cube Tubers,” are twice as likely to

express interest in receiving 3D TV programming at home. These consumers

represent a rather small eight-ten percent of the overall population. They are most

likely young, mid twenties to late thirties Caucasian males, educated and married.

They seem to be the most likely candidates to show interest in buying the newest

generation of the television market. Along with the “Cube Tubers,” the broader target

market tends to be families with young children. Understanding that children are

more likely to show interest in the development of 3D technology, Samsung and other

companies will try to appeal to the children with the intention of captivating the

market of families with children between ages two and fourteen. One common factor

of all 3D product consumers is their likely geographic location. The target audience

for 3D TVs will mostly be found in or near bigger cities. These locations must be

considered the prime market areas due to the likelihood of the availability of 3D

content in urban areas rather than away from cities in the more technologically

constrained rural areas. Most consumers of 3D TV products will buy them via e-

commerce with fewer buys being made in retail stores. Most e-commerce suppliers

offer free, or cheap installation and deliveries. Supplying more convenience to the

consumer than the average retail store. With the majority of the sales in the 3D TV

market e-commerce, Samsung will still be selling a significant share in high-end

electronics stores such as Best Buy (US) and HH Gregg (US). When defining the

psychographic segmentation of the consumers of this market, Sue Shim, Chief

Managing Officer, Samsung, defined the target consumer as someone “immersed in

the TV experience, an early adopter, and an individual who is a thought or opinion

leader amongst peers.” The individuals Samsung looks to target, value the home

entertainment experience as prior generations would have valued an evening at the

theater.

Samsung’s 3D TV product usage will increase as the content becomes more

available, and Samsung has taken steps to accelerate the rate at which this 3D content

arrives. In March 2010, Samsung announced partnerships with Technicolor and

DreamWorks Pictures, two industry leading 3D content providers. With these

partnerships, Samsung developed packages of products for the market incorporating

3D content from DreamWorks Pictures and Samsung’s 3D TV products, offering the

consumers the full package for the ultimate at home entertainment experience. This

combination of content and product demonstrated the innovative practices at work

within Samsung, and helped them achieve their goal of the No. 1 market share in the

3D TV market as it was pioneered.

The only deterrents from the traditional patterns of purchase in the TV market

are the decline in the current global economy and proximity of the latest transition in

the television market to HDTV. The transition from standard definition to HDTV is

still growing and many questioned Samsung for the release of 3D TV while new

market segments are still growing in the HDTV market. The importance of customer

service to encourage the growth of 3D TV industry is infinite. Samsung has

established a plan to interact more with the target consumers and expose them to the

products available. Market forecasts project sporting events in 3D will attract

consumers, and with the release of content such as ESPN’s new 3D channel, the

potential growth for the market is opened to a new segment of 3D entertainment, the

sports fan. Acknowledging that, Samsung took the initiative to begin demoing their

available 3D TV products on site at sporting events at kiosks, offering fans the

opportunity for exposure. The seasonality of sales for Samsung is crucial, however

they have identified the period between Thanksgiving and New Years, the fourth

quarter, as their most prolific quarter of the year.

3.0 Competitive Analysis

Before comparing the products available from Samsung and its competitors,

one must understand that many market forecasts have been done, predicting the

potential room for growth in the 3D TV market share available. These forecasts also

predict the total share of the market that the 3D industry will capture out of the entire

television market. Samsung has studied these numbers and implemented release plans

and pricing strategies based on these market forecasts. The results of these forecasts

are as follows: 6.2 million 3D TVs will be sold in 2010 (the launch of the market)

representing three percent of the entire TV market. By 2014, forecasts project over 83

million 3D TV sets being in homes representing 31% of the entire TV market.

Samsung has established 2014 as the next big year of releasing the next generation of

3D products such as 3D sets that do not require the use of shutter glasses, eliminating

another inconvenience factor the current market bears.

For comparative product analysis, we will use the most popular selling class of

3D television sets with the most beneficial and unique features. The 55” inch class is

considered the most popular model of 3D TVs. For most competitors the model

chosen is similar to that of Samsung, however the differences can be seen in the

quality and the price. For Samsung the model was the 9000 Series LED 55” inch

class 3D HDTV. This model was released in 2010 at a Consumer Electronics Show

and won the award for “Most Brilliant Innovation” for the industry that year. The

9000 series boasts an ultra slim .31” design (the size of a pencil), it comes with a

premium accessory package, cinema-quality 3D and groundbreaking picture quality

for 2D content, and it is also a Smart TV with web-connected Samsung Apps. This

products slim design is accompanied by one of the most consumer conscious

accessories introduced in the television market, the remote control. The remote

control for this set is a touch screen handheld panel that allows the consumer to

stream live television to the remote even if you leave the room so you never miss a

moment of your favorite entertainment. The quality and design of this product goes

unmatched, as does it price, $5, 999.

3.1 Sony Corporation

Sony is a Japanese company that uses web advertising as a dominant feature.

They offer different videos and PDF documents on their websites to help customers

understand their business. Their videos offer different features about different

products such as their TV’s. When typing into Google, Sony does not come up first,

however, Best Buy was one of the leaders, who sell Sony TV’s. However their

customer service falls short of SE according to consumer reports. The Sony product

for the 3D TV market falls under its Bravia class, and sells for $2,999. Bravia boasts

similar features, as most competitors have had no choice but to follow the trends of

Samsung. Sony finds itself in the top five of the market share of the previous trends

of the television market, usually in the top three until recently being bumped down to

fifth recently in the FPTV market. Sony seemingly finds itself in the television

market as it finds itself in every other aspect of the entertainment market segments

ranging from film production to MP3 players and gaming consoles. It is a large

organization focused on improving current products and using other organization’s

innovations to take a share of the market.

3.2 Mitsubishi Inc.

Mitsubishi Inc. is also a Japanese company with a Very broad product mix,

and a marketing theory that anything is possible. They Aim to release their 3D TVs

mainly through private company sales rather than in nationally acclaimed retail stores

like most brands. Mitsubishi has continued to use and perfect DLP technology,

created by Texas Instruments, while Samsung has moved on from DLP and has

released some beautiful Plasma, LCD and LED 3D TVs. Mitsubishi’s difference is in

its picture quality, although DLP offers great picture quality the technology has many

drawbacks such as bulb replacement and interior cleaning to maintain picture quality

that hinder consumers from buying their product. Mitsubishi is the most recent

follower of trends by recently adopting the Smart TV idea and integrating Internet

connectivity into the unit. This late adaptation and constant need for upkeep to

maintain picture quality and absence of variations in the products available in the 3D

market limit Mitsubishi to a small market share. Concluding that Mitsubishi’s broad

range of products, and lack of resources available to consumers, equates to poor

customer service practices.

3.3 Panasonic Inc.

Panasonic, another Japanese company, is another competitor finding its way to

the top three market shares in the TV market. Panasonic aims to be the No.1 Green

Innovation Company in the Electronics Industry by 2018, the 100th anniversary of

their founding. After Samsung initiated an unexpected price war with Panasonic at

the opening of the 3D market, they announced an expectancy to miss sales targets for

the first year. Demonstrating Samsung’s sound knowledge of good pricing strategies

keeping competitors on edge. "No one can keep up" with price cuts by Samsung in

the world’s biggest TV market, Yoshiiku Miyata, a managing executive officer at

Osaka-based Panasonic's, TV business, said in an August 30 interview with

Bloomberg. "It’s become unclear whether we can reach our target" of selling one

million 3-D sets in the year to March 31,” he said. Panasonic’s product for the

comparative analysis is the 55” inch class Viera, priced at $3,350. Panasonic’s

premier 3D product differs in the backlight composition, opting to use plasma for the

opening of the 3D market. With plasma however, comes the looming fear of having

to replace the backlight in the television as is necessary for plasma. However, the

LED backlight Samsung offers is far superior to the picture quality of a plasma

television. The pricing strategy of Panasonic is in question as well, considering the

plasma technology is much cheaper to produce yet the price is similar to that of LED

backlight set.

3.4 LG Electronics Inc.

LG Electronics is a Korean company. LG Electronics Inc., ranking as the

world's second-largest maker of flat-screen TVs, said it aims to strengthen its

presence in the burgeoning 3D TV market, seeking to grab a share larger than its

target for the liquid-crystal display (LCD) TV market. LG is eyeing 25 percent of the

global 3D TV market this year, which amounts to 950,000 sales based on an annual

market forecast of 3.8 million units. That compares with LG's 15 percent market

share target for LCD TVs, or 25 million units. "Considering the downward trend of

(our) market share in the general TV market, it is our goal to lift our market share in

3D TV, which will lead the next TV market," Kwon Hee-won, executive vice

president and head of LG's LCD TV business unit, told a press conference, declining

to provide a specific sales target.

LG had focused on the mass market. Initially LG’s objective was to create a

footprint among the sizable middle class, and other than its aggressive pricing, there

was little to distinguish it from other consumer durable companies. LG’s premium

product in the 3D lineup is the 55” inch class Infinia model, LED projection full 3D

HDTV, priced at $3,970. One major drawback with this product is the label of being

a 3D-Ready TV, in comparison to a 3D-Enabled TV like that of Samsung’s 3D TV

product line. This factor and the passive approach LG has in the television market

will limit the shares they will get in this early phase of the 3D TV product life cycle.

3.5 Vizio Inc.

Vizio is a market share leader in the industry, but its claim to success is in its

ability to follow technology and market trends. Vizio’s vision is to be the industry

leader in consumer electronics by consistently delivering the latest technologies at the

most affordable price. This mission allowed Vizio to take the No. 1 market share in

LCD televisions in 2009, the first time in six years anyone but Samsung held the

coveted ranking. Vizio also found itself in the 3D TV market soon after other brands

such as Samsung pioneered the way. Using the best of innovations other companies

have had, Vizio has developed cost efficient production methods that allow them to

undermine the quality of the products slightly and the price for what they sell at

significantly. Vizio’s product for comparison is the 55” inch class Full Array

TruLED LCD 3D HDTV, this product sells for $2,499.

4.0 SWOT Analysis

4.1 Strength

A. High Quality Innovative Products - Brand Prestige

← Samsung’s 3D TV market products lead the industry as they

have pioneered the launch of the new market segment in early 2010.

Samsung’s LED TV product line has earned the prestige of the best picture

quality available in the market by Consumer Electronics Reports. Those very

products are also leading the way in innovation in the way of style and appeal

to consumers, as Samsung released the 9000 Series, which is the thinnest 3D

TV available at .31 inches. Samsung is also working to lead the market by

offering a range of top quality award winning products developed specifically

for the 3D market. Samsung is a strong corporate brand known for its quality

products and advanced technology use. The brand prestige that Samsung

looks to carry over from the LED, LCD and Plasma markets, hoping

consumers will easily identify the brand and associate it with it high quality

products from an organization dedicated to providing market leading products.

Samsung focuses more towards the innovations and tries to keep improving

products to attract more consumers and capture more market share. Hoping to

captivate the interests of more target consumers, SE demonstrates its

aggressive approach to accelerating the diffusion rate of the 3D market by

offering over a third of their LED products as 3D enabled devices. The robust

market position coupled with strong brand equity imparts significant

competitive edge to the company regarding scale and recognition, which in

turn augers well for the company’s expansion plans.

←

B. Availability of Resources

← Samsung recently transferred 300 engineers from their very

prominent semiconductor business unit within the organization, and

established a new television business unit. The relocation of these engineers

has allowed SE to develop market products far beyond the technology and

innovative capacity of competitors. SE’s semiconductor business unit from

which they transferred those engineers, is successful enough for competitors in

the television market to buy the technology from SE to use it in their own

products. Companies like Sony and LG, SE’s biggest competitors in the 3D

market currently buy their semiconductors used for production of there 3D

TVs from Samsung, giving SE the ability to dictate the technology used by its

competitors. With control over competitors technology SE can assure there

dominance of the 3D TV market share, by staying a step ahead of the

competition selling them technology SE has been using for some time.

C. Constant Focus on R&D

← Samsung Electronic has been regularly strengthening its

research and developments (R&D) function. The company devotes significant

resources and attention to develop consumer-preferred products with

innovative and distinctive features. It is evident from the fact that, the

company invested approximately 5.0% of its revenue in R&D activities over

2008 and 2009. The company plans to enhance the spending to nearly

KRW9,300 billion ($7 billion) in 2010, up from KRW7,600 billion ($6

billion) in 2009. The company has deployed nearly 42,000 people in the

research activities across its 42 research facilities around the world. These

efforts in R&D have allowed for SE to develop technologies for products such

as a 3D TV that doesn’t require glasses, which has been developed but

Samsung is waiting to develop the market and for competitors to catch up.

Further, the company owns several research centers across the world. Its R&D

network spans six centers in Korea and 18 more in nine other countries,

including the US, the UK, Russia, Israel, India, Japan and China. These R&D

activities helped the company to launch various new products in the recent

past.

4.2 Weaknesses

A. Lack of Association with 3D Gaming Content

Unlike SE’s competitor Sony, Samsung does not have a direct association with

content provider for 3D gaming. Acknowledging that the 3D gaming segment will

account for a substantial market share, one could infer Sony’s association with

gaming consoles like PlayStation as a competitive advantage over Samsung. As we

define our market, the target consumer is someone who more than likely played or

still plays video games. Sony’s PlayStation is the first to launch 3D gaming content,

however with this being the only aspect of the 3D market that Samsung does not

currently play a role in, it is identified as a weakness as it could allow a competitor to

gain ground in SE’s market share.

B. High Quality, High Price

Understanding SE prides itself on having very high quality products, one can

infer that SE can justifiably charge the highest price for those renowned products. To

maintain a dominant market share as the market for 3D TVs expands, SE’s establish

target consumer will have to expand. With the target consumer established

economically as the upper level of the middle class and all levels of the upper class

currently, the target will have to expand to incorporate all members of the middle

class. The timeframe for this target to be expanded would be 2014 as the next trend in

3D TVs is introduced, being the TVs that do not require the use of shutter glasses.

The impact on customers this weakness represents is minimal, considering the quality

of the product is unmatched. To the consumer who is concerned more with quality

than price the impact is none, but to the average financially conscious TV buyer our

product may lose appeal when compared to the cheaper alternatives in the market.

4.3 Opportunities

A. Strategic alliances that enhance the company’s product offerings

Samsung Electronics has entered into strategic agreements with some of the

well-known companies of the world in the recent past. For instance, during June 2009,

the company signed a patent cross license agreement with Toshiba for semiconductor

technologies. Toshiba is the leading player in the NAND flash memory market with

thousands of patens under its name. Toshiba is also in the forefront of innovations in

this product category with several new technologies under its credit. By signing the

cross licensing patent agreement with Toshiba, Samsung Electronics continues to

have access to important NAND flash process technology as well as multi level cell

flash memory design IP relevant for future NAND flash generations. Earlier in 2008,

the company entered into partnership agreement with Netflix, the world's largest

online movie rental service. As for the agreement, the companies would offer

consumers the ability to instantly stream movies and TV episodes from the Netflix

Web site directly to their living rooms through Samsung's BD-P2500 and BD-P2550

Blu-ray disc players. The agreement enabled the Samsung Electronics to introduce

advanced features in its products, resulting in improved customer offerings. The

company has been able to form strategic alliances with some globally renowned

players who are strong in there respective domains. Alliances such as these will not

only help the company tap newer avenues of business but also help the company

develop newer landscapes for revenue growth.

B. Partnership to access 3D gaming content

Establishing a partnership with a company in the video game industry would

be ideal to increase the amount of 3D gaming content. Although this segment of the

market is currently minimal, the surplus of content could influence consumers so that

the segment could increase. A partnership with a company like Microsoft could have

an impact on the market greatly. The timing of this opportunity would be

immediately, the sooner the partnership begins, and the sooner the content could be

produced, presenting an opportunity for the market to expand. This would increase

brand recognition of Samsung by associating it with products such as Microsoft’s

XBOX 360 and their other products to come. This partnership would also increase

customer satisfaction by acquiring the only segment of the 3D market Samsung is not

associated with.

4.4 Threats

A. 3D Gaming Market - Sony

The fact that Sony offers the PlayStation gaming console, they have a foot in

the door with the consumers who have interest in 3D gaming, which could potentially

represent a significant share of the market. Sony’s PlayStation is the first gaming

console to launch 3D gaming content. This relationship between the two products

allows Sony to sell both products together at a discount offering not only a product to

view 3D content, but also a gaming console with abilities that allow consumers to

play 3D games. However, with our target defined as “cube tubers,” the majority of

consumers Samsung looks to target will not fall under this gaming segment. The

severity of this threat could begin being analyzed as 3D gaming content arrives in the

market, which will be begin during the Christmas buying season of 2010. With only a

very few titles becoming available over the course of its first few months in the

market, it will be July 2011 at the earliest before the significance of the 3D gaming

market segment can be determined.

B. Slow diffusion rate for 3D TV

Also representing a threat is a slow diffusion rate for 3D technology. The TV

market has been rapidly, the evolution of HD TV and flat screen TVs is the most

recent change the market has endured, with the next being 3D. Most consumers of

lower economic classes or slow adapters have just recently made the transition to HD

TVs, discouraging them from immediately making another buy such as that of a 3D

TV. Samsung will be doing everything they can to accelerate the diffusion rate for

3D TVs. With most market forecasts predicting the change will occur within the first

five years, Samsung should be able to measure the success of their efforts within the

first two years after the product was launched as an indicator. This threat could effect

Samsung exponentially as Samsung has invested billions of dollars in R&D for 3D

products, a slow rate of diffusion would slow down the rate at which Samsung

reaches its goals for profitability.

4.5 Conclusions:

Due to Samsung’s superiority in the general TV market, the threats as you can tell are

minimal. However, in the strategies and opportunities sections you will find what we

are doing to reduce the risk of these threats having an affect on Samsung’s market

share. Developing a partnership with Microsoft will be a vital component to

developing the 3D gaming content availability, which is the only relevant competitive

advantage other than pricing. As Samsung introduces new 3D products to the market,

the price of there current products will drop, making them more readily available to

lower class consumers and expanding the target market for their 3D products.

Promotion

Samsung has launched various advertising campaigns, spending billions of

dollars across three continents, North America, Europe and Asia. Eight billion dollars

has been spent in Europe alone, and three billion in Asia. Neither of which compare

to the twelve billion dollar campaign launched in the North America, predominantly

the US, from where 66% of the 3D TV market exists.

They also have and will continue to use celebrities such as singing group, The

Black Eyed Peas, to promote their products. They use these celebrities in

advertisements seen by the public, but also at some of there biggest events in which

they display the product and allow the consumers at the events to experience Samsung

3D.

Place

These products will be sold mostly online, where customers can find deals for

free shipping and set up. This also offers consumers the opportunity to analyze

reviews and physically see features of our products rather than hear them from a retail

store associate.

Samsung’s products will not be offered in wholesale stores or super centers

like Wal-Mart or Target, but the consumer will have the opportunity to purchase them

in specialty electronics retail stores like Best Buy and HH Gregg.

← MARKET RESEARCH FINDINGS

←Video Game Market

← Because we intend on entering into a partnership in the future with Microsoft

to develop a 3D gaming system, researching the gaming market was essential.

According to DMW Media, global video game sales totaled 41.9 billion dollars in

2009 and are expected to grow 10.3% to 68.3 billion in 2012. Game console sales are

expected to reach 34.7 billion dollars in sales by 2012 with a 6.9% annual growth rate.

←

←5.2 What leads us to believe we can sell 3D TV’s in this market?

← According to FutureSource, 3D TV sales have been healthy and are beginning

to surpass HDTV sales at the same point in HDTV’s life. FutureSource also says that

by the end of 2010, 6.2 million 3D TV’s will have been sold worldwide, with 1.2

million of those being sold in Europe. 10 million are expected to be sold in 2011, and

50 million by the year 2015.

←

←5.3 Focus Group

← To gain a better idea understanding of the consumer market, we organized a

focus group. The focus of the study was on what the current consumer felt about the

3D products available, and what improvements could be made in the eyes of the

consumer. The group consisted of 10 average consumers, 5 men and 5 women. 5 of

the people in the group had used our Samsung 9000 Series 3D 1080p LED HDTV,

while the other 5 had never used a 3D TV and were simply asked what they thought

about the idea of purchasing one and the overall concept of 3D TV’s.

← First we had an open discussion with the five participants that had used the

9000 series. The feedback about the 9000 series was extremely positive. This is what

the users had to say about the products advantages;

← Consumer #1 - “Found it easy to mount on the wall. TV is so thin and picture

is so clear it leaves people in awe. 3D feature is awesome, although very limited

library at present time. Works well with my 3D receiver as well.”

← Consumer #2 - “For the price of the TV my expectations were high and for the

most part they have been met, brilliant color and crisp picture. Action scenes are

awesome. Sound is really not too bad if you have a small or medium sized-room.

Technical support offered via 1800 number helps tremendously for parts of set-up that

are a little difficult for the average person.”

← Consumer #3 - “Before buying I was one of those people that ridiculed the

idea of wearing bulky green glasses to watch 3D - but the other day found the whole

family bunched up to watch "cloudy with a chance of meatballs" it was great! I now

cringe every time I am forced to watch something that is not High Definition.

Regarding the much-heralded Internet and TV and LAN functions I had my

expectations up high. I connected to Samsung services and setup DivX reasonably

easy to gain access. The TV updated a couple of times to upgrade Firmware but it was

painless - first upgrade through wireless and following wired. I find my Windows

Home Server files easily and watch them flawlessly. I send the sound to my amplifier

from the optical connection with no problems.”

← Consumer #4 - “The picture quality is amazing. I compared it to the c8000 at

the store because I was skeptical about the contrast ratio being lower in the c9000 but

the 9000 looks better. The Picture is smoother and clearer, no blur at all. The

difference in price is definitely not just how thin it is which is incredible to look at.

This TV is an amazing display of technology.”

← Consumer# 5 - “We've been looking for a HDTV for some time and think that

we've found the perfect one. The picture (even without the 3D) is AMAZING and

with the 3D is beyond our expectations. We paired it with a Samsung HTIB and love

the combination. Good going Samsung! Nice job on this one.”

← The pros of the 9000 series are clear. The group had a basic agreement that the

picture, the 3D and the overall design of the TV were of high quality and one of a

kind. However, we also asked them what the cons of the TV were, so that we could

get a feel for what future TV’s should have based off of our assessment of what the

group says. These are the cons they came up with.

← Consumer #1 - “Set-up if you aren't technology savvy may take assistance. For

the on-line Apps, if you have more than one Samsung product you have to set up

separate accounts and passwords for each product. Remote control sometimes does

not pick up signal so you can't watch the show on it when you leave the room, and

there is a very short battery life on remote control.”

←

← Consumer #2 - “Unfortunately it is IMPOSSIBLE to utilize these profiles for

other than indifferent options such as weather settings and other bloatware.

Contacting Samsung support only confirmed and I was told that it is all over the board

- 1 TV - one Netflix login no matter which producer. Am I allowed to not care about

all the others and expect more from a top of the line TV? - Samsung should be cutting

edge as they are with design and functionality and they should be able to code the

software to make sensible use of these profiles - why else would you have them apart

from wanting to personalize your TV experience? The workaround is to reset the

account every time someone new wants to use it and then re-register with new Netflix

information - this could be coded in to the software if Netflix or is it DRM essentially

is stopping this ability. Another word of caution for this beautiful piece of furniture;

After having hung it on the wall and worked with the wires a few times - the motion

of tilting the TV out to gain access causes the Aluminum to get very slight indents -

this can only be viewed by a very critical eye along the edge against light. Lastly I can

possibly hold my breath longer than the remote holds a charge - so I added it on to a

multifunction remote from a competitor and avoided that problem.”

← Consumer #3 - ”Bought this TV for its design and the remote. All the

electronic and connection are in the stand and you have to remove a black part and

stick it to the back if you want to hang it. Lot of connection problem with the WI Fi or

Ethernet, have to reconnect all the time, both for the TV and the remote I have the

latest router available which works fine with all other devices. The remote is

disappointing and the touch screen a pain to use. The selection of the source is a pain;

I have not found a way to remove the unused sources. Image quality is certainly the

best available but identical to the 8000”

← Consumer #4 “Big complaint would be setup and reliability of internet

features. It was a little tricky to setup the TV. The remote connects over the internet to

the TV as well. Sometimes this works and sometimes it does not. Same with watching

content over the internet. The TV gets a lot of errors, then it will work great and then

it gets errors again. Spent hours trying to fix it, but still not reliable...Remote works

terrible in infrared mode. It takes a lot of pointing and changing positions to get the

TV to respond. However, if the Wi-Fi mode is working, the TV responds perfect.”

← Consumer #5 - “Unfortunately the hefty price will only get you the cool factor.

Don’t get me wrong, but this TV is obviously targeted to a consumer that cares more

about the looks of the set itself than its performance. The picture is about as good as

the C7000 but not nearly as good as the C8000 which is admittedly Samsung's

flagship for the masses”

← The next five participants that we asked to be a part of the group have never

used a 3D TV. Overall they know very little about them and what they do know, is

only has been seen on television advertisements. Some of the questions that we asked

were, would you buy a 3D TV? What do you think would have to change in the 3D

TV market to persuade you to buy one? Finally what do you think about the concept

of 3D? Do you like it? What don’t you like about it? The answers we received were

simple:

← All five participants said that at this time, they would not buy a 3D TV due to

the cost. With the current state of the economy, they agreed that spending that much

money on a TV was unnecessary and irresponsible unless you can honestly afford it.

← When asked what would have to change in the market for them to feel

comfortable buying one they agreed again that the price would have to come down.

Another suggestion was that all programming would have to be in 3D. One participant

said,” with the 6,000 dollars I spent on the TV I could feed my family for a long time,

or even make upgrades to our lifestyle without buying a new television.” Another

said,” with TV’s changing year to year from HDTV to 3D TV, it feels like it costs a

fortune to stay caught up when the smart thing to do is to wait for a new TV to be

introduced, and when the prices fall for the older ones go get one of those, they are all

the same to me anyway.”

← When asked about their opinions about 3D in general, 2 really had no opinion

because they were just now becoming accustom to HDTV, and 3 others said that they

enjoy it, but hated having to wear glasses to watch TV and that the total cost was not

worth the experience. One participant said,” I don’t need what I watch to be “jumping

out” at me. “I don’t want to be watching a football game and have it seem like I’m

about to get tackled.”

← In conclusion, the focus group gave us a great idea of how productive 3D

TV’s will be. The participants that have used one had more positive things to say than

negative. The things that were mostly complained about such as the remote control

and the cost will vary no matter what. If the remote control is a main problem with the

TV instead of the picture quality, or the sound quality, then Samsung has done a good

job with the product. As far as getting new customers to change their mind about not

wanting one, that will come as more 3D TV’s are released and information about the

advantages of them become available. If the quality is there and the cost is right, then

the 3D TV market will prosper as the HDTV market did when it encountered the

same problems, and according to the numbers the 3D TV market will double in the

next year, and triple by 2012.

←

←

←

←

←

←

←

←

← OBJECTIVES

Enter in to the 3D video gaming market through a partnership with Microsoft.

In order to capitalize on the growing video gaming market, we intend on

entering into a partnership with Microsoft to develop a virtual gaming product. Short

term, we would like to couple 3D TV technology with a dominant video gaming

console like the XBOX 360. By the year 2020 we intend on launching a virtual

gaming product.

Launch a comprehensive ad campaign that focuses on SE’s competitive

advantage in 3D technology.

An ad campaign focusing on our competitive advantage in technology would

be highly effective in selling more 3D TV’s to developing market. We want to make it

known that Samsung was the first to pioneer this technology, therefore, they are

getting the most advanced product in the market. Our goal is to increase TV sales by

5% in a 6-month period following the launch of the campaign.

Maintain market dominance throughout the “Glasses” era and prepare the

market for a “glassless” 3D TV.

Having already established a firm hold on the 3D market, we would like to

maintain our position as market leaders in 3D technology with the use of 3D glasses.

As the market evolves closer to glasses free technology we would like to prepare the

market for our product release in 2014. Our objective is to see our market share

remain at 88% until the release of our glasses-free product in 2014.

STRATEGIES

Enter in to the 3D video gaming market through a partnership with Microsoft.

By entering the gaming market we believe that we can capitalize on the

untapped 3D gaming market for significant profit opportunities. Entertainment

software is one of the fastest growing industries in the U.S. economy. The

industry is creating jobs and producing revenue for communities across the

nation. In addition, the industry continues to grow as an entertainment medium.

We believe that a partnership with Microsoft will allow us to use the XBOX

360 gaming console, coupled with our advanced 3D technology to bring a new

3D experience to gaming. It is our short term goal to create a gaming package

available to consumers that will include a Samsung 3D TV, glasses, a

Microsoft XBOX 360, and 3D compatible games to offer an in home

experience that consumers cannot find elsewhere.

According to data compiled by the NPD Group, a global market research

company, computer and video game companies posted strong sales in 2009.  The

industry sold 273.5 million units, leading to $10.5 billion in revenue.  Of these sales:

1) Game console software sales totaled $8 billion with 176.7 million units

sold;

2) Computer game sales were $538.4 million with 23.5 million units sold; and,

3) There were $1.9 billion in portable software sales with 73.2 million units

sold.  

The most popular game genres in 2009 were "Action" and "Sport Games," each of

which accounted for more than 18 percent of all games sold. In addition, of the games

sold in 2009, 60 percent were rated "Everyone (E)" or "Everyone 10+ (E10+)."  The

NPD Group's data also indicates that only 17 percent of games sold last year were

rated "Mature (M)." 41% of gaming consoles sold in the U.S. were produced by

Microsoft, making them the most beneficial candidate for partnership. These

particular genres are the genres most compatible with 3D technology. We believe that

in the long term, we can couple our competitive advantage in 3D technology with

Microsoft’s competitive advantage in video gaming to create an enhanced 3D

experience comparable to virtual reality. The target market of these particular

products tend to place an emphasis on having the latest and greatest technology and

through this partnership, it is our belief that we can capitalize on these tendencies.

Microsoft has selected Samsung as the exclusive HDTV worldwide marketing

partner for the next-generation Xbox high-definition (HD) gaming platform. The

announcement was made during media day at the Home Entertainment Expo at the

New York Hilton, which was held from April 29-May 1. As part of this marketing

deal, both companies will install over 25,000 Samsung HDTV’s in Microsoft Xbox

retail kiosks worldwide, with half that total budgeted for the United States. The new

23-inch Samsung LCD TV will be paired at retail with the new Xbox console, which

offers a super-fast 12-milIi-second pixel switching speed and enable "intense action

while overcoming any motion artifacts," the companies said. The global marketing

and promotional alliance between Microsoft and Samsung Electronics will include

cinema, POS, television, print, online and various other media efforts, with further

details becoming available in coming months.

Microsoft's first high-definition game will incorporate Samsung branded

products as well as instances of Samsung's logo as part of the overall HD gaming

experience. This will mark the first time Microsoft incorporates a consumer

electronics technology partner with the Xbox console and games, the companies

noted.

In commenting on the deal, Peter Weedfald, senior VP, consumer electronics

and North America corporate marketing for Samsung Electronics America, said,

"Gaming has become a primary force for innovation in the entertainment and

technology industries" and called Micro- soft's HD Xbox "the best next-generation

game console and a key driver in the global HDTV revolution."

Details on the next-generation Xbox were scant from Edward Bland, global

marketing general manager of Microsoft's home and entertainment division for Xbox,

explaining that its major introduction will be held at the E3 show in Los Angeles the

week of May 16. But he did note that "no decision has been made as yet for a blue-

laser format" for Xbox. Bland noted that "either Blu-ray or HD DVD would be

acceptable" and that the next-generation Xbox would be "extendable" in that area.

Weedfald added chat Samsung has also. Not selected a blue-laser format as of yet.

Negotiations between Samsung and Microsoft on this alliance took around a year,

Weedfald said. Both companies enjoy a long-standing relationship as strategic and

tactical business partners. Microsoft Xbox currently incorporates Samsung

technology, and Samsung will continue to be a tech driver for the next-generation

Xbox video game console, the companies said.

Considering the long-term relationship held between the two companies with

the HD format, we believe that a deal focusing on the 3D format is highly likely and

would be beneficial for both parties involved.

Launch a comprehensive ad campaign that focuses on SE’s competitive

advantage in 3D technology.

Samsung holds a major competitive advantage when it comes to 3D

technology. It is our goal to launch an ad campaign that makes the consumer associate

3D technology with Samsung. We want to stress the fact that Samsung was the first to

pioneer the 3D TV and that our TV’s are the most technologically advanced in the

market. Our goal is for the consumer market to associate Samsung TV’s with the best

in the market when it comes to quality and technological advancement. We believe

that if we launch an ad campaign that sends the message of quality and luxury we will

see a rise in our company sales. Consumers are not aware of our quality products

compared to the rest of the market and through the campaign; we aim to make them

very aware.

Our main message trough this ad campaign is going to preach the need for

quality and convince consumers that if you are going to have a 3D TV, you should

have the best. We want to convince the customers that if they are going to spend a

larger amount of money on an expensive product like a 3D TV, they deserve the best,

Samsung.

Maintain market dominance throughout the “Glasses” era and prepare the

market for a “glasses-free” 3D TV.

Even though we have the technology to provide a glasses free 3D TV, we

would like to let the market develop through a glasses era so that we can release the

best product possible in 2014. Because we posses such a large share of the current

market, we would like to grow and maintain what share we do have to gain as much

profit as possible during this stage of the technological life cycle. During this waiting

period before the product release in 2014, we would like to gain a comfortable

amount of market share so that the launch of the new product has a quality brand

image to fall back on. The glasses-free TV will be relatively expensive and if there is

a successful 3D TV generation preceding it, the chances of it succeeding greatly

increases. This objective is crucial to Samsung’s long-term success in the 3D TV

market because if executed properly, Samsung will be established as the leading

provider for 3D technology for years and years to come.

TACTICS

Enter in to the 3D video gaming market through a partnership with Microsoft.

We believe that with a proper business proposal, Microsoft will be highly

interested in a partnership as market research suggests that 3D gaming is going to be a

very profitable industry in the near future. After the partnership is achieved we intend

on turning the focus of our R&D spending (7Billion annually) towards producing a

virtual reality gaming experience alongside Microsoft. This will allow us to bring a

technological innovation to the market that would be far beyond anything anyone else

can provide. To associate with gaming products even more, we are seeking an

agreement to make Gamestop, and EB Games official dealers of our 3D televisions.

This will give us an instant upper hand on the market.

Launch a comprehensive ad campaign that focuses on SE’s competitive

advantage in 3D technology.

With the upcoming super bowl season, we would like to advertise our 3D TV

during the most highly watched event in America. There is no better stage to advertise

a 3D TV on than during the super bowl. A majority of our target market for our TV’s

will be watching and it would be a fantastic opportunity to advertise directly to our

market. This would also serve beneficial to our gaming market because a majority of

video games played are sports games. Print ads will also be placed in Game Informer

magazine and in ESPN magazine to more effectively reach our target market.

Maintain market dominance throughout the “Glasses” era and prepare the

market for a “glasses-free” 3D TV.

By advertising and effectively selling our glasses required televisions, we will

continue to increase our market share until the release of our glasses-free television.

After we increase sales of our 3D TV’s we hope to gain a reputation for providing the

most technologically advanced product in the 3D market. To do so we intend on

providing the highest quality products and customer service to maintain the products

we have already sold. This goal will be met with the proper execution of goals one

and two.

Financial Impact of the Marketing Plan

Five year sales forecasts:

Enter in to the 3D video gaming market through a partnership with Microsoft.

To enter in to the gaming market with Microsoft, we plan on focusing our

R&D budget (7 billion in 2010) solely on producing a virtual reality gaming platform.

This budget includes the research necessary to develop the product. We would like

another 20 billion to fund production, distribution, customer service, and market

research.

Launch a comprehensive ad campaign that focuses on SE’s competitive

advantage in 3D technology.

An average ad during the super bowl is $1.1 million dollars for one 30-second

spot. We would like a 500 million dollar advertising budget to effectively advertise

for a six-month period.

Maintain market dominance throughout the “Glasses” era and prepare the

market for a “glasses-free” 3D TV.

This goal will be achieved with the daily operating cost and should not

increase the average spending per year.

Income statement, Balance sheet, and operating costs.

See Tables Attached.

MARKET SHARE

Products     Samsung's global m/s    

Competitors   M/S   Year     Source  

DRAM 34.3% Hynix 21.6% Q1 2009 [22]

NAND Flash 40.4% Toshiba 28.1% 2008 [23]

Large-size LCD Panel

26.2% LG Display 25.8%2009 February

[24]

PDP panel 30.5% LG 34.8% Q1 2008 [25]

Active-Matrix OLED

90.0% LG - Q2 2008 [26]

Lithium-ion battery 19% Sanyo 20% Q2, 2009 [27]

LCD Monitor 16.1% Dell 14.6% 2008 [28]

Hard disk drive 9.5% Seagate Technology 34.9% 2007 [29]

Multifunction printers

16.4% HP 19.2% Q1 2009 [30]

Television sets (LCD, PDP, CRT)

23% LG 13.7 %Q3'09 Revenue Share

[31]

French door refrigerator (U.S. market only)

18.79% Whirlpool 23.83% 2009 January [32]

Mobile phone 21% Nokia 37.8% Q3 2009 [33]

Digital camera 9.1% Canon 19.2% 2007 [34]

Drillship 80% Daewoo 20% 2000~2007 [35][36]

Shipbuilding & Marine Engineering

SPORTS SPONSORSHIP :-

The Samsung Running Festival in Taipei, Taiwan.

Samsung sponsors English premiership team Chelsea FC.

Samsung Super League with Fédération Équestre Internationale - French (English: International Federation for Equestrian Sports) and the FEI Nations Cup, the world’s oldest and best renowned equestrian series, at the end of each season brings additional excitement and further enhances the sporting qualities of both series. Since the beginning of this year (29.04.2009) Samsung Electronics Austria has been supporting the Spanish Riding School of Vienna, Austria (de: Spanische Hofreitschule, the "Spanish Court Riding-School")

Samsung has also tried hard to improve its international image. It has spent more than $6 billion since 1998 on marketing, sponsoring the last five Olympics and erected a large video sign in Times Square in 2002 (Lee kun-hee). Samsung is very involved in the Asian Games, contributing Samsung Nations Cup Riding Competition, Samsung Running Festival, Samsung World Championship (LPGA Tour) and still many more around the globe.

Samsung owns the professional soccer club Suwon Samsung Bluewings, the baseball team Samsung Lions, the basketball team Seoul Samsung Thunders, the women's basketball team Samsung Bichumi, and the volleyball team Samsung Bluefangs in South Korea.

In 2005 Samsung signed the second biggest sponsorship deal in English football history with Premiership team Chelsea. Their five-year deal is estimated to be worth £50 million. In April 2008 Samsung and Mexican football team Club Deportivo Guadalajara signed a sponsorship deal for six years where Samsung will provide 865 plasma and LCD screens for the team's new stadium Estadio Chivas.

On January 15, 2009, Samsung signed a three-year deal with the Brazilian Football League Team Palmeiras, worth R$15 million annually (~4.8 million Euros annually). As well as having their logo printed on the Palmeiras football shirts, the deal also provides for the supply of Samsung products to the club, and a plan for activation with the crowd, being developed by Samsung.[38][39][40]

The company sponsors the rugby league team the Sydney Roosters in the Australian National Rugby League 1995-1997, 2004–present. It also sponsored the Melbourne Victory football club in the Australian A-League. The deal with Victory is also believed to be the largest in Australian club football history. From 2009 Samsung will be the primary sponsor of the Essendon Football Club.

Samsung is a sponsor of the April NASCAR Nextel Cup race at Texas Motor Speedway, the Samsung 500. This sponsorship, initially with RadioShack from 2002–2006, was in doubt after the 2003 race because of NASCAR's ban on wireless telecommunication sponsors effective the 2004 season, but was grandfathered into the Nextel contract (Nextel uses exclusively Motorola equipment). However, after Sprint's merger with Nextel, the ban was rescinded for Samsung, because of Sprint's sale of Samsung products.

Samsung currently sponsors French People's Baseball Team. They plan to start a cricket league in India with the prize money of $20 million (Samsung plans to construct 9 stadiums by the end of 2009).

Samsung sponsors a professional StarCraft team, Samsung Khan. Samsung Khan won their first championship in the first season 2008 Shinhan Bank Proleague. It is also the leading sponsor of the World Cyber Games (WCG), an annual competition for various computer games including StarCraft.

Samsung is also the official HDTV sponsor of the National Football League (NFL). The NFL has installed Samsung high definition televisions in select areas of all of its team stadiums.

Samsung has agreed to become an Official IAAF (International Association of Athletics Federations) Partner of the 2009 (Berlin, Germany) and 2011 (Daegu, South Korea) IAAF World Championships in Athletics and the 2010 IAAF World Indoor Championships.

Samsung sponsor of the Olympics

Samsung first became a full sponsor of the Olympic Games during the Nagano Olympic Winter Games in 1998. According to the new contract, Samsung will officially sponsor the Olympic Games and the Olympic Movement for the next eight years, a deal that covers the Vancouver Winter Olympics in 2010, the London Olympic Games in 2012, the 2014 Olympic Winter Games, and the Rio de Janeiro Olympic Games in 2016.

According to guidelines set forth by Samsung Chairman, Lee Kun-hee in 1996 – “Devise strategies that can raise brand value, which is a leading intangible asset and the source of corporate competitiveness, to the global level” – Samsung decided to sponsor the Olympic Movement to strengthen its global corporate image and brand value and has been carrying out a global marketing campaign with the Olympic Games and the Olympic Movement as the single theme.

Accordingly, Samsung concluded a TOP (The Olympic Partner) sponsorship contract with the IOC in 1997. Since then, the company has been an official sponsor in the wireless telecommunications equipment category, including the 1998 Nagano Winter Olympic Games, the 2000 Sydney Olympic Games, the 2002 Salt Lake City Olympic Games, the 2004 Athens Olympic Games, the 2006 Winter Olympic Games, the Beijing 2008 Olympic Games and the 2010 Vancouver Winter Olympics. By sponsoring the Olympic Games and the Olympic Movement for the last ten years, Samsung has made great strides towards becoming a “cutting-edge global brand” that leads the mobile phone industry. The Beijing Olympic Games in 2008 are expected to be the climax of the company’s efforts for the last ten years.

SOURCE:WWW.BUSINESSWEEK.COM OCTOBER 31, 2005

MEDIA CENTRIC

Samsung The Network

Blurring the line between ads and media like never before

Let's say you buy several million dollars' worth of Internet advertising. Let's say you long ago staked out prime property, like page-topping banners on the home page of time.com (TWX ). Let's say you have such space on more than 400 sites.

This being the Web, these ads are neither static nor one-way. They can link to other sites, should consumers be given a good reason to click. It occurs to you: This is a network in and of itself. You can use your collective ad buy to leverage partnerships with other marketers. You have essentially blurred the line between advertiser and medium.

Such is the story with consumer-electronics darling Samsung. Its ads not only promote its own wares but also sometimes other big mainstream entertainment products, be it Fantastic Four or releases from Jon Bon Jovi and The Who. "Hi, Hollywood. You would like to reach 175 million people in 30 days?" deadpans Peter Weedfald, Samsung's senior vice-president for consumer electronics and North American marketing. "We can do it."

There are many arrows in Weedfald's quiver -- all that choice Web real estate, Samsung products' natural fit with entertainment, musicians' need to promote themselves independently of labels' efforts, and his own ultra-audacious, buzzword-studded selling style. With them all, Weedfald is proving there's life left yet in the lowly Web banner ad, and in the tattered mass-marketing model itself.

INTERNET SPENDING by Samsung Electronics -- that is, its consumer unit -- tripled between 2001 and 2004, to $11.5 million. It accounted for slightly more than 14% of its measured media spending for the first half of 2005. Samsung also boosted its advertising on network TV and in magazines, but it has, perhaps unwittingly, created competition for traditional media by becoming something of an ad vehicle itself. "Let us be your advertising, marketing, publishing, creative" partner, says Weedfald, warming to an imaginary audience. "We get to burnish Samsung by standing next to Jon Bon Jovi. He gets a vast distribution network."

Using ads as a distribution mechanism is a byproduct of the bigger game for Weedfald. As a mass marketer with myriad product lines, Samsung seeks ubiquity and repetition. (Googling some of Weedfald's pet phrases -- "the ADD economy," the Internet being "Darwin on speed" -- aptly proves that he practices what he preaches regarding repetition.) Weedfald, a former tech-magazine executive, loves publishing metaphors. "I want Jon Bon Jovi. I believe in his audience -- his circulation -- and what he stands for," he says. "The unique editorial is his music, and his genius around the music." (You were warned about his selling style.) What is a network without content?

A full-court promotional press for Fox's Fantastic Four last summer involved Net and traditional media ads and in-store displays at Best Buy. Actual money that changed hands between Samsung and the studio: zero, as Samsung traded off its Net bona fides for multiple product placements in the film. "Samsung's Internet reach is so pervasive," says Lisa Licht, Fox's senior vice-president for global marketing partnerships. "Think where moviegoers are:

They're on the Internet for a significant portion of the day." Samsung (NWS ) just announced a deal with The Who in which buyers of certain Samsung systems get free Who DVDs -- a deal promoted, of course, by its Web presence. Last year, Samsung sponsored a Webcast of a Bon Jovi concert, framed by what looked like a Samsung TV, and grabbed 125,000 viewers, 87% of whom stuck around for the nearly two-hour show.

Uncomfortable as it may make media executives who might once have aired a Bon Jovi concert themselves, it likely didn't hit Web users that they were watching another turret crumble on the advertiser-media wall. The old New Yorker cartoon tells us that on the Internet, no one knows you're a dog. The Samsung corollary is: On the Web, no one knows you're not a medium. Even if you act like one.

Samsung Distribution Network

We have many premium term papers and essays on Samsung Distribution Network. We also have a wide variety of research papers and book reports available to you for free. You can browse our collection of term papers or use our search engine.

Samsung Distribution NetworkIt's been a long while since H B Lee really relaxed. Since last February, when he took over in New Delhi as President and CEO of Samsung, South West Asia, the 58-year-old Lee has been busy turning all Samsung strategies on their heads.

The Korean consumer electronics giant is now reaching deeper and wider into the Indian market, tempting consumers with technologically advanced products specially tailored to their needs.

Showrooms are being brought under a common umbrella brand and now, a new facility may well become a manufacturing hub for Samsung worldwide. Not that Lee views his "strategy revitalisation" effort as an attempt to change things. "What we adopted in 2007 was not really a change in strategy but an evolution of our strategy," he insists.

Surely not? Over the past decade, Samsung has clung to its premium positioning, with products that emphasised design, aesthetics and cutting-edge technology and prices that were commensurately higher. Until now. For the first time, it is moving downwards, so much so that industry observers believe Samsung may go after the masses much like its arch rival LG Electronics did until a couple of years ago: already, Samsung flat televisions are among the cheapest in the market.

Samsung India Deputy Managing Director, Ravinder Zutshi, vehemently rejects the price warrior tag, though. "Samsung is not a price warrior but today we are as competitively priced as our rivals. The focus is on expansion and deeper market penetration," he says.

So, which is it? Evolutionary or radical change in strategy? Decide for yourself.

Volumes do matter

In 2005, Samsung introduced over 100 new products that were sold on the lifestyle platform. These included flat panel, LCD and plasma TVs [Get Quote], top-end refrigerators, home theatre systems, digital cameras and camcorders, MP3 players, notebook computers and mobile phones.

At the time, sceptics argued that growth targets based on premium products rather than on India's...

METRICS

Enter in to the 3D video gaming market through a partnership with Microsoft.

Samsung joined forces with Microsoft XBox in April of 2005 to become exclusive

HDTV worldwide marketing partners. As a part of the deal, both companies agreed to

install over 25,000 HDTV’s Xbox retail kiosks worldwide. Half of this budget is

designated strictly for the United States. Microsoft agreed to incorporate Samsung’s

branded products, as well as instances of Samsung’s logo throughout the first high

definition game that would be released. Now that 3D technology is out on the market,

another Microsoft deal with 3D gaming would be ideal for Samsung. Since we have

already held a partnership with Microsoft Xbox, this should give us a very large

advantage in striking another deal to produce a 3D game that would add to the

gamers’ experience.

Launch a comprehensive ad campaign that focuses on SE’s competitive

advantage in 3D technology.

Samsung started to release TV commercials before the release of the first 3D

TV. We used main sporting events, award shows, and primetime TV series as our

main targeted time slots. The word of 3D TV’s spread very quickly and ultimately

helped the release of our product go straight to the top. Our advertisements will focus

on illustrating the picture quality and effects of the new product. A major emphasis

will also go on displaying the sleek, ultra thin design that is a main key in our

advertising strategy. As of June 2010, when our first product was released, we

controlled 90% of the 3D market. Our advertising strategy is expected to maintain our

market dominance.

CONTINGENCY PLAN

Dominance in the 3D Market.

What if Samsung falls out of the top spot? Currently, Samsung holds a

dominant market share. However, due to the resources implemented in R&D at

Samsung, they have developed “glasses free” TVs, a technology superior to that of its

competitors. Withholding that technology until the 3D market has been established

allows them to use this technology as a contingency plan if they do not meet their

goals of sustaining that dominant market share. This technology represents the next

trend in the TV market, specifically the 3D TV segment.

Alliances.

What if Samsung lost their partnership with content providers?

Samsung currently holds two significant joint ventures with DreamWorks and

Technicolor. DreamWorks announced this year that they will produce nothing but 3D

movies from now on. If we lost partnerships with either or both of these companies,

we would look to start a new partnership with Pixar Animations or other 3D

production companies. Pixar is becoming a top notch movie production company,

releasing movies like Finding Nemo, Toy Story, and The Incredibles, among

numerous others. The latest movie released was Toy Story 3, which ended up being

the second highest grossing animation film of all time, with $415 million. We feel that

with this partnership, we could make a great profit with animated movies targeted

towards small children and developing families.

References

http://www.electronicsweekly.com/Articles/2010/01/29/47903/3d-tv-market-

is-set-for-big-growth.htm

http://www.revenews.com/mikekoehler/will-the-3dtv-market-live-up-to-its-

promises/

http://www.samsung.com/us/video/tvs/UN65C8000XFXZA

http://www.businessweek.com/magazine/content/10_03/b4163052960824.htm

http://www.businessweek.com/technology/content/dec2009/

tc20091230_436389.htm

http://www.koreatimes.co.kr/www/news/tech/2010/09/129_69283.html

http://www.crunchgear.com/2010/08/13/how-is-3d-tv-doing-some-data-from-

japan/

http://www.mullen.com/2010/09/3d-tv-marketers-take-note/

http://www.dmwmedia.com/news/2010/04/14/report-global-3d-tv-market-be-

worth-17-billion-2014

http://ces.cnet.com/8301-31045_1-10433274-269.html

http://findarticles.com/p/articles/mi_m0EIN/is_20100326/ai_n52924274/?

tag=content;col1

http://ezproxy.lmunet.edu/login?url=http://web.ebscohost.com/ehost/

pdfviewer/pdfviewer?vid=8&hid=13&sid=d66428e2-8896-47b2-a4f7-

6091890821ff%40sessionmgr113

http://ezproxy.lmunet.edu/login?url=http://web.ebscohost.com/ehost/

pdfviewer/pdfviewer?vid=8&hid=13&sid=d66428e2-8896-47b2-a4f7-

6091890821ff%40sessionmgr113

http://www.electronicsweekly.com/Articles/2010/01/29/47903/3d-tv-market-

is-set-for-big-growth.htm

http://www.revenews.com/mikekoehler/will-the-3dtv-market-live-up-to-its-

promises/

http://www.samsung.com/us/video/tvs/UN65C8000XFXZA

http://www.businessweek.com/magazine/content/10_03/b4163052960824.htm

http://www.businessweek.com/technology/content/dec2009/

tc20091230_436389.htm

http://www.koreatimes.co.kr/www/news/tech/2010/09/129_69283.html

http://www.crunchgear.com/2010/08/13/how-is-3d-tv-doing-some-data-from-

japan/

http://www.mullen.com/2010/09/3d-tv-marketers-take-note/

http://www.dmwmedia.com/news/2010/04/14/report-global-3d-tv-market-be-

worth-17-billion-2014

http://ces.cnet.com/8301-31045_1-10433274-269.html

http://findarticles.com/p/articles/mi_m0EIN/is_20100326/ai_n52924274/?

tag=content;col1

http://ezproxy.lmunet.edu/login?url=http://web.ebscohost.com/ehost/

pdfviewer/pdfviewer?vid=8&hid=13&sid=d66428e2-8896-47b2-a4f7-

6091890821ff%40sessionmgr113

http://ezproxy.lmunet.edu/login?url=http://web.ebscohost.com/ehost/

pdfviewer/pdfviewer?vid=8&hid=13&sid=d66428e2-8896-47b2-a4f7-

6091890821ff%40sessionmgr113