Question 1

(1.1) Review the changing perspective in Samsung marketing planning.

The Samsung Group is South Koreas largest compan! an" the worl"s secon" largest
conglomerate #! revenue$ lea"ing several in"ustries in the worl". %t is compose" o&
numerous international #usinesses$ all unite" un"er the Samsung #ran"$ inclu"ing
Samsung 'lectronics$ the worl"s largest electronics compan!$ Samsung (eav!
%n"ustries$ one o& the worl"s largest ship#uil"ers an" Samsung 'ngineering )
*onstruction$ a ma+or glo#al construction compan!. Samsung phones have #een aroun"
&or a long time in the ,ietnam market. -ro"uct o& Samsung mo#ile phones are "ivi"e"
into the categories o&. .o#ile phone / to suit all classes o& consumers Samsung has
create" hun"re"s o& "i&&erent mo"els with man! e!e0catching "esign "iversit! comes
&rom #asic &eatures to a"vance. (a num#er o& popular pro"ucts such as *1234 '1154
'3314 ...) Smartphone/ to keep position in the technolog! race an" "ominate the mo#ile
market$ Samsung launche" the man! kin"s o& smart phone with outstan"ing &eatures.
.an! pro"ucts o& the new smart phone Samsung that are common within the consumers
(S1 S6 Gala7! S3$ Samsung Gala7! 8ote ...) Samsung customers/
,ietnam has 94 million people with "iverse cultures$ the unemplo!ment rate in ,ietnam
is ver! low as 302: so power consumption goo"s in ,ietnam are signi&icant. G;- o&
,ietnam is over <144. #illion$ 2$9: growth in 3411$ 2 !ear compoun" annual growth
=$2:. %n&lation/ 1>$5:G;- (GS?$ 3411) %n&lation in ,ietnam is lower than other
countries in @sian. There&ore$ the purchasing power o& them will #e low. So the! cant
#u! e7pensive pro"ucts o& compan!.
0 Samsung &uture orientation/
0 Response to the protection o& the environment$ Samsung has ma"e some plans in
stopping the greenhouse e&&ect. Aor e7ample/ Samsung plans to re"uce its G(G
emissions intensit! normaliBe" #! sales (metric tons o& *?3 per KRC 144 million) #!
24: until 3411 #ase" on the level o& 344>. @lso$ the compan! plans to re"uce the G(G
emissions #! 36: 0 Samsung has alwa!s wante" to give consumers the #est Dualit!
pro"ucts. Samsung continuousl! strives to improve pro"uct Dualit!$ implementing
numerous Dualit! control checks. Aor e7ample$ workers are allowe" to hol" pro"uction at
an! time i& a &ault is i"enti&ie". 0 *reating a new pro"uct$ "eveloping a new kin" o&
mo#ile phone using converte" energ! or other kin" o& energ! ( this was alrea"! "one #ut
the &act was it never actuall! applica#le wi"el! so it still not enough attraction an" the
using the electrical energ! are still not reall! possi#le &or most markets. So research a
new t!pe o& energ! applica#le to the pro"uct ma! #e the #est wa!).
Question 3
(1.3)E 'valuate Samsung capa#ilit! &or planning its &uture market activit!
Tangi#le resources
%n an eas! wa! to e7plain tangi#le means something real$ which !ou can see$ an" that
ma! inclu"e cash$ lan" an" #uil"ing$ an" so on. Tangi#le resources are the easiest to
i"enti&! an" evaluate/ &inancial resources an" ph!sical assets are i"enti&ie" an" value" in
the &irms &inancial statements. Samsung will also aggressivel! e7pan"ing &actories in
,ietnam in the coming !ears. *orporation sources tol" the Korea Times that the! are
planning to invest a#out < 3.3 #illion since 3434 to enhance pro"uction in ,ietnam. This
cost will #e the target &or cutting pro"uction costs$ transportation costs an" "eliver!.
*urrentl! Samsung has &actor! pro"ucing cell phone in Fen -hong %n"ustrial Gone$ Hac
8inh province. Since 3449$ a&ter &our !ears o& implementation$ the pro+ect reache" a
capacit! o& 11 million pieces I month$ accounting &or a#out one Duarter o& the total annual
pro"uction o& Samsung$ create +o#s &or 36$444 workers$ e7port revenues in 3413 e7pecte"
reach over < 14 #illion. Samsung will invest another &actor! in Thai 8gu!en with a
capital o& < 544 million. (SamSungs homepage) %ntangi#le resources
Samsung has grown into one o& the lea"ing electronics companies in the worl"$
specialiBing in #usiness eDuipment an" "igital me"ia$ semicon"uctors$ memor!$ an"
s!stem integration solutions. To"a! the pro"uct an" process a"vance" top Dualit!
Samsung has #een recogniBe" worl"wi"e. Samsung has #een in the ,%'T8@. than 14
!ears. Samsung when it comes to people we think o& a giant in the &iel" o& electronics.
,%'T8@. people use a lot o& pro"ucts &rom the compan!s T,$ washing machine$ air
con"itioningJ telephone ... Samsung has #uilt a ver! goo" reputation in ,ietnam.
Samsung len"s support to people an" their communities in man! "i&&erent wa!s.
Samsung current area o& &ocus is on investing in teenagers &utures$ through support o&
science e"ucation an" creative thinking. Samsung encourages lea"ershipJ assisting
chil"ren in low0income &amilies #! supporting e"ucational in&rastructure$ supporting
outstan"ing stu"ents an" supporting programs that encourage &amil! well0#eing. (uman
resources
Katest %n&ormation &rom S',$ there are more than 11$444 emplo!ees working in
,ietnams companies in which emplo!ees have a universit! "egree accounte" &or 2.2:.
.ore than 1$444 "ocuments have #een passe" preDuali&ication$ waiting in the ne7t roun"
interview. Hut in&ormation &rom S', sai"$ ma!#e$ this num#er "i" not meet the nee"s
an" in the ne7t &ew months$ will #e the ne7t recruitment. Samsung usuall! "irectl!
e7amine strict la#or$ the! also reDuire emplo!ees to #e traine"$ it will not #e simple &or
emplo!ment in its &actories. Samsung .o#ile is a great place to work. The emplo!ees
en+o! a changing$ &ast0pace" environment where the! have the opportunit! to make a
contri#ution as soon as the! +oin. Samsung still retain a "!namic culture an" a small0
entrepreneurial spirit. 'mplo!ees o& Samsung are "riven to un"erstan" not onl! whats
happening in our in"ustr! now$ #ut what nee"s to happen ne7t an" how to anticipate what
their customers will "eman" !ears &rom now. The! value enthusiasm$ cooperation an"
working on revolutionar! pro"ucts that enhance consumers lives an" #usinesses.
(1.1) '7amine techniDue &or organiBational (Samsung) au"iting an" &or anal!Bing
e7ternal &actors that a&&ect marketing planning
There are plent! o& techniDue that can #e use" &or organiBational au"iting an" anal!Bing
the e7ternal &actors that can a&&ect the marketing planning o& Samsung. (owever$ % have
pick out 1 most common techniDues to anal!Be it. Those techniDues were/ SC?T
anal!sis$ ST''-K'; anal!sis an" -orter 2 &orces anal!sis. 1. SC?T anal!sis is #asicall!
a metho" use &or evaluate the strengths$ weaknesses$ opportunities$ an" threats. This
in&ormation can then show us the competitiveness o& the compan! in the market. 3.
ST''-K'; anal!sis is a metho" that wi"el! use" to anal!Be the macro environment an"
giving them the overview a#out it. The &actors o& this metho" inclu"e/ Social$ technolog!$
economic$ environment$ political$ legal$ ethical an" "emographic. 1. -orter 2 &orces are a
&ramework to anal!Be the #usiness an" "evelop strategic plan. There are 2 &orces that can
in&luence that in"ustr! such as/ Threat o& new entrance$ Supplier power$ Hu!er power$
Threat o& su#stitutes an" competitive rivalries.
@"vantages
;isa"vantages
SC?T
0SC?T anal!sis can #e use" an" appl! easil! to an! organiBation$ organiBational unit$
in"ivi"ual or team. %n a""ition$ the anal!sis can support a num#er o& pro+ect o#+ectives
such as evaluate the pro"uct$ plans an" goals. 0,alua#le in&ormation a#out !our
o#+ectives chances can #e gaine" #! viewing each o& the &our elements o& the SC?T
anal!sis 00 strengths$ weaknesses$ opportunities an" threats 00 in"epen"entl! or in
com#ination. That is all the in&ormation nee"e" an" can #e use" &or #asic anal!sis o& a
compan!. @ compan! has its strengths an" weaknesses$ &rom which we can in&er the
opportunities an" threats #ase" on &actors surroun"ing the market$ law$ local culture.... @
SC?T anal!sis is a su#+ective process$ which pro"uces a result that re&lects the #ias o&
the participants o& the stu"!. %n a""ition$ the anal!sis consi"ers "ata that is availa#le at a
particular moment an" ma! #ecome out"ate" Duickl!. Thus the anal!sis ma! lea" to
#usiness "ecisions #ase" on unrelia#le or irrelevant "ata. SC?T anal!sis creates a one0
"imensional mo"el in which each pro#lem attri#ute is viewe" as a strength$ weakness$
opportunit! or threat. @s a result$ each attri#ute is seen to have onl! one in&luence on the
pro#lem #eing anal!Be". (owever$ one &actor might #e #oth strength an" a weakness. Aor
e7ample$ locating a chain o& stores on well0travelle" streets that grant eas! access to
customers might #e re&lecte" in increase" sales. (owever$ the costs o& operating high0
visi#ilit! &acilities can make it "i&&icult to compete on price without a large sales volume
The -orters Aive Aorces
The mo"el is a strong tool &orm competitive anal!sis at in"ustr! level %t provi"es use&ul
input &or per&orming a SC?T anal!sis
%nsi"e0out strateg! is ignore" (core competence)
%t "oesnt cope with s!nergies an" inter0"epen"encies within the port&olio o& large
corporations (parenting a"vantage) The environments which are characteriBe" #! rapi"$
s!stematic an" ra"ical change reDuire more &le7i#le$ "!namic or emergent approaches to
strateg! &ormulation ("isruptive innovation) Sometimes it ma! #e possi#le to create
completel! new markets instea" o& selecting &rom e7isting ones
ST''-K';
-rovi"es a simple an" eas!0to0use &ramework &or the anal!sis. %nvolves cross0&unctional
skills an" e7pertise.
(elps to re"uce the impact an" e&&ects o& potential threats to !our organiBation. @i"s an"
encourages the "evelopment o& strategic thinking within !our organiBation. -rovi"es a
mechanism that ena#les !our organiBation to i"enti&! an" e7ploit new opportunities.
'na#les !ou to assess implications o& entering new markets #oth nationall! an" glo#all!.
Lsers can oversimpli&! the in&ormation that is use" &or making "ecisions. The process has
to #e con"ucte" regularl! to #e e&&ective an" o&ten organiBations "o not make this
investment. Lsers must not succum# to paral!sis #! anal!sis where the! gather too
much in&ormation an" &orget that the o#+ective o& this tool is the i"enti&ication o& issues
so that action can #e taken. Restrict who is involve" "ue to time an" cost consi"erations.
This limits the techniDues e&&ectiveness as a ke! perspective ma! #e missing &rom the
"iscussions. Lsers access to Dualit! e7ternal in&ormation is o&ten restricte" #ecause o&
the cost an" time nee"e" to collate it. @ssumptions o&ten &orm the #asis &or most o& the
"ata use"$ making an! "ecision ma"e #ase" on such "ata su#+ective.
@pplication to Samsung
SC?T
Strengths
ESamsung has a wi"e pro"uct range$ which allows them to gra# ample market share &rom
various markets. This allows Samsung to not onl! earn a high return #ut it also allows
them to "iversi&! their risk an" &ailure. ESamsung is a repute" name an" man! people are
&amiliar with it aroun" the worl". Samsung account &or aroun" one &i&th o& South Koreas
total e7ports$ an" it has grown to have a signi&icant in&luence on not onl! the countr!s
economic "evelopment #ut also its me"ia$ culture an" politics M an impressive
achievement &or what was originall! a small tra"ing compan! specialiBing in groceries.
(Chistle$ 3411) ESamsung has won man! awar"s on its high Dualit! pro"ucts. Such
as /NThe %nnovation ) "esign awar"sN in %tal!$ O%;'@N in us (Samsung homepage$ 3411)
ESamsung has the a#ilit! an" resources to use the latest technolog! an" o&&er new an"
e7citing &eatures &reDuentl!.
Ceakness
ESamsung "oes not charge high price &or its pro"ucts$ there&ore people o&ten thinks the
low price relate suppliers with low Dualit! o& materials. General perception supports that
the higher the price$ the higher the Dualit! o& pro"ucts. E.an! Samsung pro"ucts are not
user &rien"l!$ there&ore consumer o&ten hesitate to switch to Samsung pro"ucts even i& the
price an" Dualit! is e7ceptional. ESamsung &aces immense competition &rom new
companies an" online companies. E(igh set up an" operation cost &or such a compan!.
?pportunities
ESamsung shoul" make an active e&&ort to o&&er uniDue pro"ucts to customers$ in or"er to
gra# more market share. ESamsung coul" start creating so&twares &or their har"ware
"evices an" re"uce outsourcing. .ost o& Samsung smart phone are using @n"roi"s ?S$
Samsung coul" create their own ?S &or their "evices ESamsung coul" open more stores to
serve more customers #oth in cit! an" the countr! si"e$ there are man! % stores in the
worl". Samsung shoul" "o the same. ESamsung coul" o&&er a""itional services to retain
e7isting customers an" attract new ones. %ncreasing in the nee" &or mo#ile phones$
Samsung coul" e7ploit this nee" well.
Threats
ESamsung has linke" pro"uct lines$ which means that i& one pro"uct line &ails"ue to its
own reasons other pro"uct lines will also su&&er. ESamsung has set up pro"uction plants in
low cost areas(,ietnam$ %n"ia)$ which are su#+ect to ample political an" economic
insta#ilit!. These insta#ilities can have an impact overall compan! it the crisis gets
unmanagea#le. ESamsung is &acing threats &rom man! other low cost companies. -orters
Aive Aorces mo"el
(.ichael '. -orter$ 1959)
Suppliers/ The #argaining power o& suppliers is relativel! limite" as there are a num#er o&
suppliers in the market &or consumer electronics. Aor instance$ there are well over a
thousan" suppliers in South Korea an" across the worl" &or the kin"s o& parts that
Samsung nee"s &or making its electronic appliances. (owever$ the &act that the suppliers
make parts that are uniDue &or each appliance maker gives the suppliers an a"vantage that
is har" to ignore. The point here is that like in an! other in"ustr!$ the consumer
electronics in"ustr! nee"s a wi"e network o& suppliers &or the ven"ors to &unction
e&&ectivel!. (ence$ Samsung "epen"s on its suppliers &or timel! "eliver! o& the
components an" hence an! "isruption to the suppl! chain can #e trou#lesome. .arket
'ntr!/ The impact o& .arket 'ntr! is high as Samsung has &oun" it eas! to enter markets
where it "esires to "o #usiness. Aor instance$ Samsung has entere" *hin an" %n"ia$ two
emerging markets that provi"e the much nee"e" volumes &or its e7pan"ing #usiness. The
&act that Samsung has entere" these markets with relative ease makes this a &orce that can
#e harnesse" &or the compan!s goo". (owever$ it might not #e eas! &or Samsung to
capture markets with ease as it has "one previousl! #ecause o& the rise o& protectionist
ten"encies in the wake o& the glo#al &inancial crisis. The rivalr! &rom e7isting pla!ers is a
&actor that nee"s to #e consi"ere" when "eci"ing upon the market entr! into &oreign
companies. This is something that Samsung nee"s to take into account when "eci"ing
upon its &oreign market entr! strateg!. -ower o& Hu!ers/ The power o& #u!ers is in"ee"
an element that is something o& a mi7e" #ag. This is #ecause o& the &act that the #u!ers
have a wi"e variet! o& choices an" a range o& pro"ucts to choose &rom. There are man!
mo"els o& mo#ile phones an" other consumer electronics ga"gets in the market an" the
#u!ers can easil! switch to alternatives. (ence$ the impact o& this element on the
compan! isa #it high. The #argaining powers o& #u!ers are high since the market &or
consumer electronics is essentiall! a #u!ers market with so man! pla!ers in the &ra! to
sell consumer electronics to the consumers. This is re&lecte" in the en"less price wars that
Samsung is engage" in with respect to the mo#ile phones an" other electronic goo"s.
(owever$ the &actor that is to Samsungs a"vantage is #ecause #u!ers cannot switch
#ran"s imme"iatel! an" the! take their time to a"+ust an" a"apt an" onl! when the! are
completel! "issatis&ie" with the compan! "o the! switch #ran"s. This is the "ecline o& the
so0calle" Orepeat customersN when the! lose &aith in the #ran"s a#ilit! to "eliver the
goo"s. Threat o& Su#stitutes/ The threat o& su#stitutes is in"ee" high &or a compan! like
Samsung. Given the &act that the consumer "ura#les market is characteriBe" #! intense
competition with competitors intro"ucing pro"ucts similar to those o& Samsungs with
regular &reDuenc!$ it is no won"er that the compan! nee"s to #e on its toes to keep pace
with the #listering pace o& new pro"ucts entr!. The threat o& su#stitutes is in"ee" high &or
Samsung given these &acts an" this is one element o& the Aive Aorces that pose a
signi&icant threat to the compan!. (owever$ the #u!ers who switch to the su#stitutes are
the price conscious segment an" those who pre&er price over Dualit!. (ence$ this puts
Samsung at an a"vantage over other competitors as the Dualit! conscious customers sta!
lo!al to the compan!. Ta#let is a goo" e7ample &or pro"uct replacement mo#ile phone.
Ta#lets with calling &eatures will not much "i&&erent &rom a mo#ile phone with #igger
screen. To"a! man! people use #oth ta#lets an" mo#ile phones. (owever$ "ue to the siBe
o& ta#lets$ it still cannot replace mo#ile phones totall! %n"ustr! Rivalr!/ The impact o&
this element is certainl! high #ecause o& the presence o& other competitors like KG$ Hen
Q$ .otorola an" 8okia. The competition is so &ierce an" intense$ particularl! in the
emerging markets like %n"ia$ where the wars #etween these competitors are akin to the
eDuivalent o& Ocola warsN #etween *oke an" -epsi. To give an e7ample$ #oth KG an"
Samsung spen" huge amounts o& mone! in %n"ia on sponsorship o& sports events (cricket
championships) an" teams. Though the a"vent o& these companies has certainl! altere"
the lan"scape o& sports partnerships$ sometimes the rivalr! is taken too &ar resulting in lot
o& #a" #loo" #etween the rivals. ST''-K';
%n this section$ % anal!Be the compan!s strateg! #! the ST''-K'; anal!sis. 'ach o& the
elements o& this &ramework is anal!Be" in "etail. ST''-'; components
@pplication to Samsung
Social
Samsung operating man! places across the worl" so the! have to han"le the culture
"iversit! an" learn a#out the li&est!le in each "i&&erent region an" consi"er what pro"ucts
will &it with each region. Aor instance$ in ,ietnam the 8orthern people an" Southern
people have "i&&erent li&est!le an" status. The north people are all a#out the status when
in the South the! are more a#out the &unctionalit!. 8orthern people earn 14 #ut onl!
spen" 1 while Southern people earn 14 an" spen" 11. Hecause o& the nature in Southern
part was a#out the entertainment an" economic$ when 8orthern on the others han" are
a#out politics. So Samsung have to consi"ers the "i&&erent in li&est!le an" potential to
making the right move in the market$ consi"er care&ull! which pro"uct shoul" go to
which market. Samsung also nee"s to know a#out the "i&&erences #etween ur#an areas
an" rural areas an" its income #e&ore selling their pro"ucts. ,ietnam market with the
ten"enc! pre&ers smartphone over mo#ile phone so Samsung also nee"s to learn a#out the
customers segments as well. Technological
The technological &actors pla! a #ig role in the mo#ile phone #usiness. The! alrea"! have
the mo"ern technolog! an" the pro"uct that can meet its reDuirement #ut "ue to the
a"vance o& technological worl"$ Samsung still nee"s to pa! attention at this part at all
time. @ccor"ing to Samsung main we#site$ the! are now have #een "eveloping *utting0
e"ge technolog! to ma7imiBe the space an" making the consumers more com&orta#le
with their pro"ucts. Samsung is &amous &or its a#ilit! to pro"uce their own chips. 'ven
@pple the strongest competitor still have to or"er chips &rom Samsung$ Samsung also
"evelop a pro"uct &rien"l! with environment recentl! an" the! are still "oing the research
in or"er to upgra"e their pro"uct to #e more &rien"l! with the environment which can win
the heart o& an!one an" an! government. 'conomic
Samsung have to pa! attention on the G;- an" income per capita o& the ,ietnamese
market an" people #ecause #! looking at that &igure Samsung can estimate the stan"ar"
living o& people in ,ietnam. Then come up with "i&&erent pricing strateg! that can e&&ect
on the consumer attention. Hut Samsung also has learne" a#out the in&lation rates$ ta7
rates or *-% o& ,ietnamese market. To *onsi"er the &act a#out ,ietnam current situation
an" ,ietnamese people current state$ whether the! can a&&or" the compan! pro"uct or
not$ the making plan on the how to encounter with this pro#lem an" how to making it
#etter in the &uture. Aor e7ample/ accor"ing to the GS? the in&lation rates o& ,ietnam
recent !ears were/ =.23: in 3449$ 11.52: in 3414$ 1>.11: in 3411$ an" =.>1: in 3413.
H! looking at this com#ine with the others sources o& in&ormation we can know that the
in&lation rates are su&&ering the impact o& the &inancial crisis an" in 3413 the government
have alrea"! #alance it$ which can #e result in the increase in the consumption o& people
(*-%). @ccor"ing to the GS?$ the *-% in mi"0 3413 have raise a#ove average &or the last
1 !ears an" this was a goo" sign telling Samsung that this .arket is on the wa!s o&
gaining #ack their growth rates. 'nvironment
The environment in ,ietnam that can a&&ect Samsung was the &loo" that can happen
ever! !ear making it impossi#le &or "eliver the pro"ucts an" that time. So Samsung nee"s
to acknowle"ge the &loo"ing time an" the place that usuall! su&&er it. .aking the #ackup
plant &or transportation or "elivering sche"ule. Hesi"es environmental &actors$ the
weather "oes not a&&ect much to the using o& mo#ile phone in ,ietnam as the other
pro"ucts -olitical
The political central in ,ietnam was the *apital cit! (anoi. .ost o& the political
activities are #eing run in this particular cit! so while "evelop their pro"ucts Samsung
also nee" to &ocus on this cit! an" a"vertise here$ making eventsPetc. to gain the
government support or attention. Recent !ears when ,ietnam an" Qapan alrea"! in a
close #usiness relationship an" even closer when ,ietnam +oine" the CT?. ,ietnam also
uses the ?;@ &un"s o& Qapan so that also means the operation o& Samsung in ,ietnam are
more an" easier than it is #e&ore. Kegal
,ietnam alrea"! opens up the market #ut the government is still a communist part! so the
government itsel& has a reall! #ig e&&ect upon the market. Samsung nee" to pa! attention
an" maintain the relationship with the government in case o& an! polic! has #een
pu#lishing that can e&&ect on Samsung. %n the mo#ile phone sectors the importing ta7
polic! o& mo#ile phone into ,ietnam is still ver! high so Samsung still nee" to "evelop
their pro"uct in the &actor! that the! alrea"! have here #etter than importing an" ma! #e
consi"ering e7pan" the mo#ile phones &actor! more. 'thical
Samsung has create" the com&orta#le working environment &or their emplo!ees. Treating
them with "ignit! an" not onl! that the! have also treate" their emplo!ees &airl! #! allow
the emplo!ees to have contri#ution$ i"eas or &ee"#ack to the compan!. *om#ine with
trick training program$ clear promotion polic!. Samsungs pro"uce process are now have
re"uce the pollution putting out into the environment an" the! are more an" more
responsi#le #! investing in research the &rien"l! environment pro"uctsI&uels that can
protect not onl! people #ut also the environment as well. ;emographic
This is the "ivi"e into "i&&erent segment or to #e more speci&ic/ age$ gen"er$ incomePetc.
These are the things that "i&&erentiate the customers o& Samsung into "i&&erent t!pes that
suita#le &or "i&&erent pro"ucts. Aor e7ample$ with age$ !oung active people have the
ten"enc! mo"ern "esign an" &ast$ with goo" price. This people suita#le with the Gala7!
S1 pro"ucts in the mo#ile phones sectors
E *arr! out organiBational (Samsung) au"iting an" anal!sis o& e7ternal &actors that
a&&ecting the marketing planning in ,ietnam (1.6)
Samsung ,%'T8@. status
.acro an" micro marketing environment
@s % anal!Be" a#ove macro #ase" on the anal!sis o& The -orters Aive Aorces an"
Steeple". SC?T 1.1 ,ietnam$ &or South Korean corporate entities in general an" &or
Samsung in particular$ is an attractive investment environment. %n the glo#aliBation
process$ Samsungs strateg! is to centraliBe manu&acturing to make management an" cost
savings more &easi#le an" easier. Samsung invests in manu&acturing comple7es to
manu&acture an" "o #usiness e&&ectivel! an" e&&icientl!$ an" also to provi"e &or our
glo#al suppl! chain. ,ietnam is alwa!s one o& the potential can"i"ates &or Samsung to
consi"er in this aspect.
.arketing strategies
The Samsung #ran" stan"s &or Dualities o& innovation$ change$ "iscover!$ sel&0
e7pression$ an" e7cellence in per&ormance. @n" these ver! same Dualities are epitomiBe".
.arketing s!stems
Samsung is multinational compan! an" has #een active &or long time in ,%'T8@.
market$ Samsung has strong in&rastructure$ skille" workers$ e7perience management that
has long time active in ,%'T8@. market. %n a""ition the compan! is &ocuse" on market
research. So$ we can assess that Samsung has &ull capa#ilit! to #e a#le to control an"
#uil" goo" marketing s!stem.
Lsing e7perience an" incentives &rom ,%'T8@.s government &or the Qapanese
compan!$ Samsung "oes not have an! "i&&iculties to an! &actors such as ethic$ political or
legal in ,%'T8@. market.
Samsung can use supplier$ customers$ me"ia an" compan! "epartment to make the
marketing organiBation #etter.
*onsumer$ strongl! R Retail @gent Samsung has wi"e network "istri#ution such as
(ea" ) all o& the &actors can help Samsung crate goo" marketing planning an" create
goo" marketing s!stem. Lsing e7perience human resource$ skille" worker$ management
to control an" "evelop the marketing s!stem$ it is reall! not a pro#lem &or Samsung
*o.;$ goo" in&ormation market research$ strong #ran" image in min" an" heart o&
,%'T8@. consumer
.arketing organiBation
Samsung has alwa!s hel" the opening ceremon! o& the inauguration o& the pro"uct or
new #ranches to promote their pro"uct. Samsung also has a clear strateg! to invest more
in social work in ,ietnam. ;emonstrate" that people see Samsung ,ietnam is a great
compan! an" contri#ute to the countr! ,%'T8@.. a""ition$ Samsung also hel" &or the
economics stu"ents to visit the manu&acturing plant operations an" intro"uce
organiBational structure o& the compan! .arketing &unction
%t is a review o& the e&&ectiveness o& each element o& the mi7 such as a"vertising$ sale
promotion an" activities
He&ore pro"ucing marketing planning Samsung shoul" make the market research to
ensure the criteria an" reDuirement o& the compan! such as price an" sale level that
shoul" #e ma"e &or e7ample/ suppl! an" "eman"$ customer attitu"e$ the use o& temporar!
price re"uction$ etcPThe emplo!ees have responsi#ilit! to get the correctl! in&ormation
to ensure the plan or the market.
@ review o& the state o& each in"ivi"ual pro"uct (e.g. market health) an" o& the pro"uct
mi7 as a whole shoul" #e ma"e. Samsung shoul" &ocus on "etail an" characteristic o&
their pro"uct to create clearl! overview &or their customer
@ccor"ing to the in&ormation that have mentione" a#ove Samsung can see the a"vantages
o& a marketing au"it that shoul" re"uce the nee" &or crisis management$ i"enti&! the
in&ormation nee"s an" &orces a &ormal process &or people thinking.
Question 1
%t i"enti&ies ten "istinct an" ma+or #arriers to the preparation an" implementation o&
marketing plans. These are/
1. *on&usion #etween tactics an" strateg!.
3. %solating the marketing &unction &rom operations.
1. *on&usion #etween the marketing &unction an" the marketing concept.
6. ?rganiBational #arriers.
2. Kack o& in0"epth anal!sis.
=. *on&usion #etween process an" output.
5. Kack o& knowle"ge an" skills.
>. Kack o& a s!stematic approach to marketing planning.
9. Aailure to priorities o#+ectives.
14. (ostile corporate cultures.
(3.1) @ssess the main #arriers o& marketing planning.
Harrier
*on&using tactic an" strateg!
This re&erring to the misun"erstan"ing #etween 3 concept tactics an" strateg!. The
strateg! here is a#out the glo#al plan to reach the long0term goal while the tactics is a
short0term plan This can #e sometimes con&using #ecause o& the similarities #etween
them although the! ma! look "i&&erent #ut the &act is the! all have the common goals that
are wh! the! can #e easil! con&use. Aor e7ample/
Strateg! is connecte" with customers while the! come to the store an" increase sales
Tactic/ o&&ering location #ase" mo#ile apps on top three plat&ormsJ provi"e more option
&or the customers. %solation o& the marketing &unction
This is re&erring to the "isconnecte" o& the marketing "epartment or marketing with
others part o& the compan! which result in the poor marketing planning an" working
#ecause theres no connection #etween the compan! activities an" the marketing
activities. Aor e7ample/ the marketing "epartment o& Samsung "oes not work with an!
other "epartment to promote the S6 when the market segment are &or the low income
people that onl! pre&er *1214 *on&using marketing O&unctionN with OconceptN
This happen when the marketing concept #eing con&uses with its &unction. %t happen
#ecause o& the concept o& marketing that we thought is onl! a#out the a"vertising pro"uct
or promoting #ran" image while the marketing &unction is much more than that. %ts
containing the promotion$ pricing$ &inancing$ "istri#uting$ an" in&ormation
gatheringP.etc. man! more which means much more comple7 than the concept. Kack o&
in0"epth anal!sis
These happen when Samsung compan! con"ucts a plan an" anal!Be the in&ormation not
"eep enough to making some reasona#le consi"eration. Heing easil! "eceive" or
mislea"ing #! that in&ormation or #! the environment itsel&. *on&usion #etween process
an" output
output This was also re&erring to the in&ormation gathering s!stems or man! others kin"
o& s!stems that can #e con&use with. Kack o& knowle"ge an" skillsprocessThe processes
here were the wa!s o& how things get "one or how Samsung woul" have carrie" it or
work it. Chen on the other han" output was the result o& the process itsel&. Ce can
un"erstan" it like this the &irst things we nee" was the input
This is a#out the (uman resources o& the *ompan! (Samsung) when the! are incapa#le
o& carr! out the task "ue to the e7periences that the! have is not enough or the skills$
knowle"ge the! have not su&&icient to carr! out the task. This happen when the
emplo!ees o& the compan! are not well traine" or not #eing veri&! thoroughl!. Kack o&
S!stematic approach
%n all *ompan! or organiBation$ the! all nee" a s!stem to control things &rom the insi"e
or the proce"ures o& how to carr! out the workPetc. without an! speci&ic proce"ure the
work itsel& cannot #e carr! out "ue to the chaos in the that occur #ecause it "oes not have
an! proce"ures an" lets things work &reel! without control. Aailure to priorities o#+ectives
The compan! o#+ectives work as the gui"ing star &or the compan! to &ollow without an!
o#+ectives the compan! will not &unction #ecause theres no speci&ic aim to hea" to an"
no work was given "ue to the o#+ectives not #eing priorities an" making the loss an"
impact &or the organiBation as well as the resources that reDuire to complete that
o#+ectives. (ostile corporate culture
This is re&erring to the &ight an" "isagreement that occur within the compan!. .aking
"epartment an" people incapa#le o& working together as a whole #ut the! #egin to work
alone an" tr! to pull each other to the groun" which can make the ?rganiBation su&&er
man! losses.
(3.3) '7amine how Samsung ,ietnam ma! overcome #arriers to marketing planning.
Harrier
(ow to overcome
*on&using tactic an" strateg!
Airst$ Samsung nee"s to "evelop a strategic plan then "evelops the lower level operational
plan. The tactics nee" to #e speci&! or "irective an" clearl! "emonstrate how the sta&& o&
the compan! will +ointl! achieve the strateg!. %solation o& the marketing &unction
Samsung nee"s to make the marketing relate" with the compan! "epartments an"
o#+ectives$ &unctions Petc. so that the marketing can work e&&ectivel!. *on&using
marketing O&unctionN with OconceptN
Samsung nee" to look at the whole organiBation$ not +ust some pure activities set onl!.
Hut it nee" to #e market0&ocuse"$ relating to man! activities an" work in the organiBation
itsel&. @voi" the con&using #etween these 3 an" to #e a#le to "o that Samsung nee" to
clari&! these 3 an" take a look at the real &unction an" activities that it carr! outs not +ust
"oing things accor"ing to the concept. Kack o& in0"epth anal!sis
Samsung shoul" anal!Be the in&ormation relate" to the market "eepl!$ also anal!Be their
plan to penetrate the market or "eliver new pro"uctsP "eepl! #ecause it can assure that
all the risks$ opportunitiesP.etc. are #eing consi"er an" it actuall! a plan that alrea"!
#eing taking man! consi"eration an" can work thoroughl!. %n other wor"s$ making an
e&&ectives marketing au"it to get to know the market$ their current statePetc. *on&usion
#etween process an" output
%n or"er to avoi" the con&usion in this &actors. Samsung nee"s to clari&! the
characteristics o& these components. Aor e7ample/ with the SC?T anal!sis$ the
in&ormation that Samsung can gather was the input$ the step to process those in&ormation
an" characteriBe is the OprocessN an" the last one was the &inal anal!sis which was the
output. Kack o& knowle"ge an" skills
Samsung nee" to get their e!es on the sta&&$ making sure that the emplo!ees are Duali&ie"
to han"le their position. The Duali&ie" part nee" to #e "one closel! an" goo". Then the
training program nee"s to #e con"uct an" anal!Be thoroughl! so that the 'mplo!ees can
actuall! gain an" #e #etter a&ter the training programs. 'nsure that the people relate" to
the #usiness have the knowle"ge an" skills to han"le the task. Kack o& S!stematic
approach
%n or"er to prevent this$ Samsung nee"s to con"uct a set o& written proce"ures that cover
all issues in all areas o& the #usiness. There&ore the control an" authorities$ &unctionP ?&
each "epartment$ peopleP.etc. o& the compan! are #eing control an" worke"
s!stematicall!. Aailure to priorities o#+ectives
Samsung nee"s to anal!Be the impact o& those o#+ectives an" then evaluate them. Chat
will #e the resources that its reDuire$ how #a" was the impact o& themR Then making
some a"+ustment in the compan! &unction that makes sure it works accor"ing to the
o#+ectives an" &ollow it. (ostile corporate culture
Airst the emplo!ees nee" to participate in the compan! works an" support the lea"ers.
Then the lea"ers itsel& nee"s to motivate an" tells the things out with the sta&& so that the!
can work together without an! hostilit!.
Re&erences/
*lass 8otes
Samsung *o.$ Kt".. (3413). Samsung annual report. @vaila#le/
http/II111.151.336.34=Ivi"eopla!erIsamsung3413ar0all0e.p"&R
ichSuSrSiTc"c5#93&96>a15e4212&&1>"6199=1#6)ichSsStSaSrStT4)ichSeSnS"T4)ichSk
SeS!T11624>>9135244=1643641)ichStS!SpSeT1)ichS"SiSsSkSiS"T9)ichSuSn.
.ichael '. -orte. (1959). -orters Aive Aorces. @vaila#le/
http/IIvectorstu"!.comImanagement0theoriesIporters0&ive0&orces 3411. -hillip Kotler.
(3414). .arketing 1.4. @vaila#le/ https/IIwww.inkling.comIrea"Imarketing010philip0
kotler01stIchapter01Ita#le0101.. Richar" T. -ascale. (19>6). -erspectives on Strateg!/ The
Real Stor! Hehin" (on"as Success. @vaila#le/
https/II&acult!.&uDua."uke.e"uIUcharleswIs291IHocconi0
;ukeI-apersInewS*13Iperspectivesonstrateg!.p"&.