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Term Paper on Marketing Mix of

SAMAUNG

Submitted for:
Mrs. Ethica Tanjeen
Lecturer
Department of Management
Faculty of Business Studies
University of Dhaka
Submitted by:
Serial
No.
1.

Name
Kibria Kabir

ID
No
254

2.
3.
4.
5.
6.
7.
8.
9.
10.

Soumen Roy
Md. Abdullah Al Mahmud Khan
Shafayatuzzaman
Saw Aung Nyunt
Farjana Sultana
Rokeya Rahman
S. M. Kamrul Islam
Almasud Saymon
Md. Asaduzzaman

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16th April, 2014


Mrs. Ethica Tanjeen
Lecturer
Department of Management
University of Dhaka
Subject: Submission of the term paper.
Dear Madam,
We the student of 20th

batch, 1st

semester department of Management group-A4

University of Dhaka, are very grateful to you for giving us such an interesting and
important topic for the course term paper. As per your direction, we have completed the
assignment successfully.
While preparing the report, we faced a few problems. But we could go for solving them
and at the same time we got a lot of new experiences. For this reason we are thanking you
heartily.
We tried our best to make this report the best one. We think this report can serve us in our
future life. Submitting this report, we are feeling very happy. We conclude here and again
unending thanks to you.
Yours ever,
Group A4

Table of Contents
SL. No.
1
Executive summery
2
Chapter-1
Introduction
Origin of the study
Scope of the study

Content

Page no.
1
1
1
1

Executive Summary
This term paper is made on marketing mix of Samsung. Samsung is a multinational
conglomerate company was founded by Lee Byung-Chull in 1938. It entered the
electronics industry in the late 1960s. In 1987, following the death of the founder Lee
Byung-Chull the company was separated into four groups and each group are
independent at present.
This term paper is worked on Samsung electronics. It included marketing mix of
Samsung such 4ps (product, price, place, promotion). It describes deeply about their
product. It also describes about the mission, vision, objectives of Samsung. Samsung
Electronics vision for the new decade is inspire the World, Create the Future.
Samsung has a technology based product manufacturing. Its products are mostly portable
devices like mobile phones, TV, blu-ray player, cameras and home appliances.
The head quarter of Samsung is situated in South-Korea. There are also some divisions in
USA and their outlet is standing all over the world. They have 217 bases worldwide.
Samsung focuses on cost-cutting measures to keep its keep its price low which helps to
compete against competitor schemes. Although Samsung tries to sell their products at
reasonable prices, it does not always stick to this concept. It uses skimming price for
products of which they are the market leader. It also uses competitive pricing for some
products.
Samsung advertise their product by media, internet etc. they also apply some policy for
their sales promotion. Samsung also sponsor such type of big event for their promotion.
These are the topics of discussion within the term paper. All the information is illustrated
elaborately below in an order.

Chapter-1
Introduction:
The topic of term paper is the marketing mix any company. This term paper is
made on the marketing mix of Samsung. Here the introduction part of this term paper:
Origin of the study:
Basically the term paper is made for the order of course teacher. Besides, the topic
of marketing mix is very important for this course. By making this term paper one can
learn details about marketing mix. It is also helpful for future life.
Scope of the study:
This term paper is about the marketing mix of Samsung. This term paper included
about the product, price, place, promotion of Samsung electronics. Besides the marketing
mix, this term included about the foundation, organizational structure, mission, vision
and objectives of Samsung.
Data collection methodology:
Data collection methodology is consists of two items.

Primary source
Secondary source

Primary source: There is not any primary source in this term paper for collecting data.
All data are collected from secondary source.
Secondary source: For this term paper, data is collecting from Books, Article, and
Internet.
Limitation:
At the time of making this term paper, there are some limitation had been showed.
They are given below:

Time is very short for such a big topic (marketing mix) of this term paper.
Limitation of valid data from the available sources.

Chapter-2
Theoretical Framework:
Marketing:
Marketing is an organizational function including creating, delivering,
communicating, exchanging, goods and services to customers for the purpose of
achieving organizational goals.
Marketing process:
Marketing process describes a companys attempts to create value for customers
and building customer relationships in order to capture value from customers in return.

Marketing process diagram


Marketing mix:
A combination of the controllable elements of a products marketing plan
commonly termed as the 4Ps: product, price, place, and promotion. Marketing mix is a
concerning element of constructing an integrated market plan and program.

The four Ps of the marketing process


Product:
A substance that is manufactured or refined for sale. Anything that can be offered
to a market for attention, acquisition, use, or consumption that might satisfy want or need
can be depicted as a product.
Price:
The amount of money charged for a product or service; the sum of the values that
customers exchange for the benefits of having or using the product or service. The value
can purchase a finite quantity, weight or other measure of a good or service.
Place:
The location of the market and means of distribution used in reaching it. In this
sense, market is defined as existence of demand.
Promotion:
The specific blend of promotion tool which the company uses to persuasively
communicate customer value and build customer relationships. In short, the advancement
of a product, service or an idea through publicity and/or advertising.

Chapter -3
Company Profile:
Brief history:
Samsung is a multinational conglomerate company. The company was founded by
Lee Byung-Chull in 1938 as a trading company. It entered the electronics industry in the
late 1960s and formed several electronics related divisions such as Samsung Electronics
Devices, Samsung Corning, and Samsung Semiconductor & Telecommunications.
In 1987, following the death of the founder Lee Byung-Chull the company was
separated into four groups and each group are independent at present. Samsung built a
television assembly plan in Portugal; in 1984, a plant in New York; in 1985, in Tokyo; in
1987, a facility in England another in Austin in 1996.
In 1993, Chairman Lee Kun-Hee sold off ten of Samsung Groups subsidiaries and
merged other operations to concentrate on three industries: electronics, engineering and
chemicals. In 1992 it became the largest producer of memory chips and is the second
largest after Intel at present; in 1995, Samsung created its first liquid crystal display
screen and grew to be worlds largest manufacturer of LCD screens.
In 2000, Samsung established a computer programming laboratory in Warshaw,
Poland and began working with set-top-box technology before moving into digital TV
and smartphones. In 2012, Samsung became the worlds largest mobile phone maker by
unit sales, overtaking Nokia which had been the market leader since 1998. In 24 August
2012, American jurors declared Samsung had to pay Apple $1.05 billion for violating six
of its patents on smartphone technology. It followed a South Korean ruling stating that
both companies were guilty of infringing each others intellectual property. After that
Samsungs market share fell 7.7 on the Kospi index and Apple tried to ban eight Samsung
smartphones from the market but was denied by the court. Samsung started the New Year
2014 by claiming 29.6% of the global smartphone market share.
Company philosophy:
Samsung follows a simple business philosophy: To devote our talent and
technology to creating superior products and services that contribute to a better global
society.
Company mission statement:
Samsungs Electronics mission statement according to their 2013 sustainability
report is
To inspire the world with innovative technologies, products and designs that enrich
peoples lives and contribute to a socially responsible, sustainable future.

Vision 2020:

Samsung Electronics vision for the new decade is inspire the World, Create the
Future.
The new vision reflects Samsung Electronics commitment to inspiring its
communities through the implementation of its key strengths: New technology,
Innovative products and Creative solution. Theyre also committed to creating a brighter
future by developing new value for their core networks: industry, partners and employees.
As part of the new vision, Samsung has mapped out a specific plan of reaching
$400 billion in revenue and becoming one of the worlds five top brands by 2020. To this
end, they have also established three strategic approaches in their management:
Creativity, Partnership and Great People.
Samsung is also trying to explore new territories, including health, medicine, and
biotechnology. Samsung is dedicated to developing innovative technologies and efficient
processes that create new markets, enrich peoples lives and continue to make Samsung a
digital leader.

Vision 2020

Objectives:
Business objectives-

Remain global leader in smart phone market


Increase market share

Marketing objectives Spread awareness


Amplify relationships
Establish new relationships
2020 Goals Quantitative goals: USD $400 billion in sales, predominately No.1 in the global
IT industry and a top 10 global company by 2020.
Qualitative goals: Innovative company; Respected company; Top 10 worlds best
workplaces; Creative leader building new markets; Global enterprise that attracts
the worlds best talents.
Company values:
Samsung believes that living by strong values is the key to good business. At
Samsung, a rigorous code of conduct and these core values are at the heart of every
decision they make.

People: Quite simply, a company is its people. Samsung dedicated to giving their
people a wealth of opportunities to reach their full potential.

Excellence: Everything done at Samsung is driven by an unyielding passion for


excellenceand an unfaltering commitment to develop the best products and
services on the market.

Change: In todays fast-paced global economy, change is constant and innovation


is critical to a companys survival. As they have done for 70 years, they set their
sights on the future, anticipating market needs and demands so they can steer their
company toward long-term success.

Integrity: Operating in an ethical way is the foundation of Samsungs business.


Everything they do is guided by a moral compass that ensures fairness, respect for
all stakeholders and complete transparency.

Co-Prosperity: A business cannot be successful unless it creates prosperity and


opportunity for others. Samsung is dedicated to being a socially and
environmentally responsible corporate citizen in every community where they
operate around the globe.

Organizational structure:

Samsung Electronics organizational structure consists of four divisions operating


under different management departments. These are Consumer Electronics (CE), IT &
Mobile Communication (IM), Device Solution (DS), and Corporate Management. The
organizational structure chart is shown below.
CEO

Consumer
Electronics
(CE)

IT & Mobile
Communications
(IM)

Device
Solutions
(DS)

Visual
Display
Business

Mobile
Communications
Business

Memory
Business

Digital
Appliances
Business
Printing
Solution
Business

Network
Business

System
LSI
Business

Digital Imaging
Business

LED
Business

Media Solution
Center

Health &
Medical
Equipment
Business
Samsungs organizational structure
Divisions:
In USA1. Samsung Electronics America
2. Consumer Business Division (CBD)
3. Enterprise Business Division (EBD)
4. Samsung Telecommunications America (STA)
5. Samsung Semiconductor, Inc (SSI)
6. Samsung Information Systems America (SISA)
7. Samsung Austin Semiconductor (SAS)
8. Samsung Electronics America Logistics (SALS)
In South Korea-

Corporate
Management

1. Samsung Electronics headquarters


2. Samsung Electro-Mechanics
3. Samsung Card Co. LTD
4. Samsung C&T Corporation (Construction & Trading)
5. Samsung SDS headquarters
6. Samsung Engineering
7. Samsung Fine Chemicals
8. Samsung Fire & Marine Insurance
9. Samsung Life Insurance
10. Samsung Techwin
Others1. Samsung Electronics Research Institute (SERI)
2. Samsung India Software Center (SISC)
3. Beijing Samsung Telecommunication (BST)
4. Samsung Semiconductor China R&D (SSCR)
5. Samsung Yokohama Research Institute
6. Samsung Poland R&D Center (SPRC)
7. Samsung System LSI

Products & services:


Samsung has a technology based product manufacturing. Its products are mostly
portable devices like mobile phones, TV, blu-ray player, cameras and home appliances. In
addition to its products Samsung delivers various services to their customers, for the
environment and for society. These services include Samsung Fire & Marine Insurance,
Samsung Health & Biotechnology etc.
Founders & key people:
Lee Byung-Chull (1938-1987): Founder of Samsung Group and was the chairman until
his death in 1987.
Lee Kun-Hee: Chairman of Samsung Electronics. He also founded various subsidiaries
including Samsung Heavy Industries, Samsung Engineering, Samsung C&T, and
Samsung Techwin etc.
Lee-Jae-Yong: Vice Chairman of Samsung Electronics.
Kwon-Oh-Hyun: Vice Chairman and CEO (Samsung Electronics).
JK Shin: President.
BK Yoon: President and CEO.

Chapter- 4
Marketing mix of Samsung Electronics:
Product:
Samsung Electronics manufactured products are shown below according to
category.
Category
Divisions
Subdivisions
Manufactured Products
(Examples)
2G
Samsung E250, Samsung Rex
90 S5292, Samsung Champ,
Smartphones
Samsung Star Deluxe Duos
S5292
3G
Samsung Galaxy S Series (All),
Samsung Galaxy Y Series (All)
Mobile Phones
4G
Samsung Galaxy J, Samsung
I9506 Galaxy S4,
Samsung Galaxy Note 3 Neo
2G
Samsung E1202, Samsung
GALAXY STAR GT-S5282
Dual SIM Phones
3G
Galaxy Y Duos S6102,
Samsung I8552 Galaxy Win,
Samsung Galaxy S4 GT-i9502
4G
Samsung Galaxy S4 Mini,
Samsung Galaxy S4 i9502
CDMA Phones
Samsung Galaxy Y CDMA
I509, Samsung Galaxy Ace
Duos I589
LED TV
LED H8000 Series Smart TV,
LED H6400 Series Smart TV,
LCD TV
E420 USB movie HD LCD TV,
Samsung 5 series LN46E550
TV
1080p HD LCD TV
Plasma TV
PN64H5000AFXZA Plasma
H5000 Series TV, Plasma 8500
Series Smart TV
UHD 4K TV
UHD HU8550 Series TV, UHD
HU9000 Series TV,
UHD S9V Series Smart TV
Flat TV
Samsung LE40B554 flat TV,
OLED TV
S9C Series OLED TV
Galaxy Tabs
12.2, Samsung Galaxy Tab 3
7.0, Samsung Galaxy Tab
Tablets
7.0
Galaxy Note
Samsung Galaxy Note Pro
12.2, Samsung Galaxy Note 3

Wi-Fi

Wearable Tech
Blu-Ray &
Smart Players

Home Theater
& Audio

Digital
Cameras &
Camcorders

Samsung Galaxy Tab 3 Lite


7.0 8GB (Wi-Fi), Samsung
Galaxy Tab 3 10.1 (Wi-Fi)
4G/LTE
Samsung Galaxy Tab Pro 10.1
LTE, Samsung Galaxy Note 8.0
(AT&T)
Galaxy Gear
Samsung Galaxy Gear Jet
Black, Samsung Galaxy Gear
Mocha Gray
Blu-Ray Player BD-H5100 Blu-ray Player, BDH5900 Blu-ray Player, BDF6700 Samsung Smart Blu-ray
Player
Smart Player
Smart Media Player GXSM530CF
Home Theater HT-H4500 Home Theater
Systems
System, HT-F9730W Samsung
Smart Home Theater System
Multi-Room
Samsung SHAPE Wireless
Audio
Audio Hub, Samsung SHAPE
M7 (Black) Wireless Audio
Speaker
Sound Bars
HW-H551 Wireless Audio
Sound bar, 2.1 Channel Sound
Bar System with Wired
Subwoofer
Wireless Audio Wireless Audio System with
Docks
Dual Dock (DA-E570),
Wireless Audio with Dock
System (DA-E670/ZA)
Portable
Portable Bluetooth Speaker
Speakers
DA-F60
Giga Sound
260 Watts Shelf Stereo
Systems
Systems, MX-H630 Giga
Sound System, 2300W Giga
Sound System
Interchangeable NX2000 20.3MP SMART
Lens Cameras Camera, NX30 20.3MP
SMART Camera
Galaxy Cameras Samsung Galaxy Camera 2,
Samsung Galaxy Camera
Verizon 4G LTE
Long Zoom
WB800F 16.3MP SMART
Cameras
Camera Wi-Fi, WB30F 16.2MP
SMART Camera
Point & Shoot DV150F 16.2MP Dual-View

Cameras
HD Camcorders
Point & Shoot
Cameras
Laptops
Computing

Tablet PCs
Monitors

Printers
Solid State
Drives

Memory &
Storage

SD Memory
Cards
Home
Appliances

Washers &
Dryers
Refrigerators

Microwaves

Dishwashers

Ovens & Ranges

SMART Camera, EX2F


12.4MP SMART Camera
QF30 Wi-Fi Full HD
Camcorder, New F90BN 52X
Optimal Zoom HD Camcorder
DV150F 16.2MP Dual-View
SMART Camera, EX2F
12.4MP SMART Camera
Series 9 Premium Ultrabook,
ATIV Book 9 Plus, Series 6
Notebook
ATIV Tab 3, Series 7 11.6"
Business Slate, ATIV Smart PC
Pro 700T
Samsung Simple LED 23.6
Monitor with Easel Stand,
Samsung 27-Inch Screen
Monitor with HDMI
Samsung Printer Xpress
M2825DW,Samsung
Multifunction Xpress C460FW
SSD 840 EVO 2.75mm
mSATA 1TB, SSD 840 EVO
2.75mm mSATA 500GB
16GB microSD High Speed
Series, 32GB Secure Digital
(SD) Card MB-SSBGAHigh
Speed Series
4.2 cu. ft. Capacity Front Load
Washer, 7.5 cu. ft. Capacity
Electric Front Load Dryer
Samsung RR2015CSBRR/TL
Refrigerator, Samsung
RT33FAJFABX Double Door
Refrigerator
ME21F606 2.1 cu. ft. Over The
Range Microwave, SMH1927B
1.9 cu. ft. Over-the-Range
Microwave
DW80F600 Top Control
Dishwasher, DW80F800 Top
Control Dishwasher (Stainless
Steel)
NE594R0ABSR 5.9 cu. ft.
Large Capacity Electric Range,
NX58F5500SB Gas Range

Vacuums
LED Lighting

LED Light Bulbs

Accessories

TV & Camera
Accessories
Mobile & PC
Accessories

Apps
Operating
System

Home Appliance
Accessories
Games
Application
Open Sourced

Motion Sync Bagless Canister


Vacuum, Twin-Chamber
Bagless Canister Vacuum
PAR38 (14W) Energy Efficient
Bulb, MR16 GU5.3 (35W)
Mercury-free Bulb
3D Active Glasses, External
Flash SEF15A, Lithium-Ion
Battery IA-BP210E
Vehicle Charger, S Mouse,
Hard Drive 250 GB,S-Pen for
ATIV Tab 3
HAF-CIN Refrigerator Water
Filter, DV-1A Side Vent Kit
FIFA 12, Tic-Tac-Toe, Where's
My Water
Samsung WatchOn, Netflix
Tizen

Product strategy:
Variety: As a leading electronics and computing product manufacturer Samsung produces
several types of products and services to expand their market. Mobile, TV/audio/video,
camera/camcorders, peripherals/pc/printers and home appliances are its major product
categories. Having variety in manufacturing ensures them a spot in bigger markets.
Samsung recognized technological products are the focus of the present market. They
regard the digital age as having both incalculable potential and risks. It has concentrated
their production plan on creating tech based products such as smartphones, tablets and
accessories and makes most of its revenue through selling such products.
Quality: Although Samsung claims that its product quality is unrivalled its not quite so
true. Brands like Apple or Sony can compete with Samsung in providing quality
products. Nevertheless, Samsungs products are far more superior to most other brands
within its target markets. Samsung creates their superior product quality through a three
step development process.

Sourcing - Innovative approach to sourcing components


Quality assurance - Notoriously rigorous quality assurance testing
Manufacturing - Proven excellence in manufacturing

Design: Samsung launched a design revolution in order to get rid of its image of imitator.
It employed worlds top designers to expand their thought and keep track on the highest
level. Its brand image is recognized by the consumers and specialists. The technology
breakthrough has enhanced its brand image of young, fashionable and strong function.
Packaging: Like all other electronics manufacturers Samsung also sell their products in
attractive and safe packaging. Cause mobile phones, computing, TV & audio type of
products are delicate and can be easily damaged protective packaging. EMP, heat, dust,
liquids, pressure etc. can seriously damage most electronics. If a laptop is exposed to
EMP than it might crash or if any fluid is spilt on it might have irreparable physical
damage. Thats why they use Styrofoam, cork or bubble wrap for packaging products.
Packaging is required for shipping, transportation and storage of product. It is also done
for attracting customers.

Price:
Because of its presence in different product categories, Samsung uses various
pricing strategies. It believes in providing quality products at a reasonable price to its
customers. Differentiation is the key to be preferred by customers when there are so many
brands within the same product category; and in Samsungs case it has served them
brilliantly.
Samsung focuses on cost-cutting measures to keep its keep its price low which helps to
compete against competitor schemes. It has a fixed MOP (Market Operating Price)
whereby the goods are sold to the distributors and to the customers at a fixed market price
only. It tries to sell its products to middle income families as well as high level markets;
keeping in mind the price sensitivity of mid level income consumers.
Although Samsung tries to sell their products at reasonable prices, it does not always
stick to this concept. Samsung does use skimming price for products which the company
is one of best in the market and the market leader. E.g. Samsung Galaxy Note 3 is a best
selling product for the present smartphone market. Samsung has set its market price $632
which is much higher than Sony or LG phones which are available in the present market.
But its sales were lot higher than LG or Sony. Samsung Electronics sold over 444.4
million units by the end of Q4 (4 th Quarter) of 2013 in the smartphone market. It earned
$54.95 billion of the Q4-2013 of which mobile division was responsible for $32.03
billion with a profit of $5.17 billion. It uses skimming price for these products to get a
high value in the start before competitors catch up. Of course, once the model is old or
any competitor has launched a similar product, Samsung immediately drops the price.
In other areas, where Samsung is not the market leader it applies competitive pricing. E.g.
Televisions, air conditioners, refrigerators and other products have competition in the
form Panasonic, LG or Whirlpool. Samsung is known to be a great brand but its not
greater than LG for home appliances. In fact, LG beats where home appliances are
concerned. Similarly in washing machines Whirlpool and in cameras Canon, are the
brands which are to be beaten. Thus in various categories, Samsung keeps competitive
pricing so as to beat the competitor. Samsung generally uses going rate pricing as the
competitive pricing strategy and keeps their prices slightly lower than their competitors
but still maintain a fair profit. If their products achieve better brand preference then they
slowly raise their price for that specific product. For example, A Samsung WA422PRHD
high-efficiency top-loading washing machine was $799 while a LG WT5070C highefficiency top loading was $1099 in 2013. But LG sales were higher because their model
had higher loading capacity whilst Samsungs was slightly less and thus it came in
second. But due to its market share increasing than the past year Samsung increased its
price on washing machines in 2014. The newer models of Samsung washing machine
(Samsung WF42H5600AP, Samsung WF42H5400AF) were priced within the range of
$1099 - $1435 which is evidently higher.
Samsung as a brand hardly uses penetrative pricing because it doesnt enter late in
the market. In fact, it is present in most consumer durable segments in the market.

Place:
Distribution channels: Distribution channel is a set of interdependent organizations that
help make a product or service available for use by the consumer or business user.
Samsung has a B2B (Business-to-business) distribution strategy. It has built state-level
distribution offices and a direct dealer interface in every region they are based. The direct
dealer interface helps the company get quick feedback from dealers, and enables it to
launch products according to consumer needs.
Its distribution channels are different for each region (follows the countrys
distribution method) so they can sell their products basically anywhere as long retailers
are willing to take stock. The distribution channels might also be dissimilar for different
product category or market segmentation. Because of this members of the distribution
channels are positioned differently in different country, market type or products. For
example, in China, India, Moscow and several other countries where it has production
facilities, the distribution channel simply exchanges product from level to level. The
factory delivers its products to regional distribution centers and from there to dealers.
Then the dealers delivers to sub dealers or retailers and finally, to the customers. But in
case of countries that doesnt have production facilities or has them but doesnt
implement the conventional marketing system this isnt applicable. Globally Samsungs
distribution strategy can be viewed as a multichannel distribution system. Samsung itself
views its distribution system globally and it has connected its purchase department with
its headquarters.
Production plan/ warehousing information

GBM
(Global
business
management)
Overseas
factory
(Re-import)
OEM
(Original
equipment
manufacturer)
companies

Production
warehousing

Central
distribution center
Stock
supplement

Sale

Regional
distribution center
Sale
Final distribution
center (Retailer)

Order
information
Stock
information

Direct
delivery

Integrated
management
system

Agency
visiting

Customer
Delivery

Samsung distribution system (Mobile & Tablets)

Locations & coverage: Samsungs distribution area is worldwide. They have retail stores
in Europe, The Middle East, North America, South Asia and several other regions. They
also have their own chain of retail stores known as Samsung Experience Store. The
company has 217 bases including 51 sales bases globally. These sales bases are situated16 in Europe, 7 in The Middle East, 3 in Africa, 3 in CIS, 1 in Southwest Asia, 8 in
Southeast Asia, 2 in China, 1 in Japan, 3 in North America and 7 in Latin America. It has
a plan open 1400 more Best Buy retail stores in U.S. and thousands of experience Stores
around the globe.
Transportation: Samsung Electronics optimized its transportation plan by introducing the
key distribution TMS (Transportation Management System) and set the optimized
transportation route for shipping period by introducing professional TMS package. It
believes in JIT (Just in Time) concept to its dealers. It has a policy to make delivery of
products within 48 hours of the expected date of delivery. It transports products via
seaways, airways or roadways to almost 200 countries.
Logistics: Samsung has implemented an innovative logistics system Global Logistics
Network Systems (GLONETS). GLONET application is used on the B2B i.e. Business to
Business front for the vendors. This involved linking the key vendors, which form the
bigger part of Samsungs sourcing through Samsungs GLONET. This system enables
Samsung to connect its purchase department with its headquarters and international
procurement offices through integrated ERP (Enterprise resource planning) systems. The
integrated ERP system enables Samsung to purchase its requirements from its
international procurement offices. This application is also extended to order placement,
production plan sharing and invoicing, resulting in shorter business cycles and reduced
inventory levels and low waste.

Promotion:
Offering advanced technological products and positioning itself platform will not
help a company sell its products if it fails to communicate with the potential customers.
To raise brand awareness, create strong, favorable brand associations Samsung has
adopted various strategies such as corporate advertisements, incentives programs and
other methods concerning the promotion mix.
Advertising:
Samsung is involved in aggressive marketing and advertising of its products to
develop attitudes, create awareness and transmit information to gain a response from the
target market. Their main advertising channels include media such as newspapers,
magazines and journals, television, posters and billboards, and websites. Of them TV ads
is the most effective and widespread form of advertising. To increase their brand
awareness Samsung went in to hire celebrities for their advertising campaign. For
example, in 2013, Samsung established a deal with music artist Jay-Z that involved them
buying 1 million copies of his album. Although Samsung use a lot of theatrics for
advertising they made it very clear that their plan is to provide accurate information to
customers to assist them in making buying decisions. Materials of their ads generally
include product specification, release date, price, availability, special offers and
comparison to previous products.
Sales promotion:
Offering short-term incentives to consumers to encourage sale of product or
service is called sales promotion. Like so many other company Samsung also offers
incentives. They implement this scheme mainly for these reasons For introducing a new product
For counter balancing the competition
For buying and selling of greater quantity of their product
Samsung has various methods of sales promotion. Some of these methods are Distribution of sample: Samsung distributes a small portion of their newest
products to certain consumers to familiarize them with the product. For example,
after releasing the new Galaxy S5 they are giving away one S5 everyday as
sample.
Discounts: Samsung launched a limited time discount offer in December 2013
called Samsung Learning Hub Promotion. Customers would get a $20 discount
for the first item purchased in the Samsung Learning Hub store.
After sale services: Samsung offers after sales services like online technical help,
repairing and installation of products.
Complimentary accessories: After the galaxy series smartphone launching
Samsung started to free extra accessories such as flip cover, vehicle headset, and
SD cards etc. for purchasing any galaxy series smartphone.
Buy one get one free: In 2013 (31 August 30 November) Samsung launched a
promotion offering a free Galaxy Tab 3 if a consumer should purchase a Samsung
NX300 smart camera.

Prize contests: Samsung launches various contests during sporting events,


religious festivals & occasions for product familiarization. Contests like Samsung
Strand Seek, FIFA World Cup-2010 Quiz contest are examples of this promotion.
Others: Other incentives offered by Samsung include bonus package offer, cash
Back offer and pre-order offer.

Sponsorship:
Samsung sponsors several types of both national and international events to boost
their sales. Most of their sponsored events are sports programs or foundations. Also most
of the viewers are interested in buying technology based products which means they can
be thought as potential customers. They use sports events for sponsoring cause of
massive number of viewers. Some of their significant sponsorship programs
organizations are

Olympic Games
Asian Games
FIFA World Cup Asian Qualifiers
United States Olympic Committee
Korea Football Association
Sydney Opera House
Korea Association of Athletics Federations

These and various other sports programs and organizations are obligated to advertise
Samsungs products and the company itself whenever they represent themselves in any
national or international event. E.g. in 2013, the Sydney opera house held a massive party
to unveil Samsungs new Galaxy S4 smartphone.
Public relations:
Being a global conglomerate company Samsung has to manage positive relations
with the companys various publics. Samsung tries to build good public relations so that
it can establish itself as a preferred brand worldwide. They spend a great deal of money to
establish communication with the public. In 2012, they spend $558.8 million globally on
public relations. It uses its mediums of advertisement and friendly salesmanship to
interact and communicate with the public. Samsung has discarded the traditional
communication method and have constructed a triple media model which is called
Samsung Ecosystem.
Samsung Ecosystem model elements1. Owned media: The owned media of the company is the official blog of Samsung
Electronics Company (http://global.samsungtomorrow.com). It achieved 2 million
50 thousand accumulated visitors after 1 year of setting up. It publishes articles
based on emotional storytelling such as World and Humanbeing and story
created by product that shows cultures and story of Samsung Electronics and
Tomorrow People shows the stories of Samsungs employees.

2. Paid media: Media that has to be paid to advertise such as TV and internet. In the
past Samsung used paid media to advertise their messages but they reorganized it
to expand their contents. It now uses online banners or printing advertisements to
introduce their contents. They also make product campaigns such as Samsung
Smart TV Online Campaign to influence the public to steer towards their goods.
3. Earned media: Reputation or faith which is earned by customers through SNS
(Social Network Services) such as Facebook, Twitter, Orkut and so on. Earned
media is a strategy that support and induce bloggers to spread and reproduce their
various stories. For example, in 2011, before the launching of Galaxy Tab 10.1 in
Seoul; Samsung delivered videos containing information of the product to
bloggers to inform the consumers of their events.

Chapter-5
Recommendation:
Only Samsungs official members have the power to recommend or make any
decision for its development. Other parties that might have a say in advising them in any
way that has association with the companys decision, have to be either hired by Samsung
or a third party consultant who are given the authority to do so be the company. So,
therefore, any recommendation or strategy that is mentioned below is only a suggestion
that the company is not required to take.
Although Samsung is a successful multinational company, it faces some problems in
differentiating their products from other competitors. The low cost companies accused
Samsung for delivering the same products at a higher price. Samsung may use their
design revolution strategy to create new and innovative products that delivers superior
value and quality than their competitors. Then it can get rid of its image of imitator and
be recognized by the consumers and specialists as a unique brand.
Conclusion:
The above study is conducted for the purpose of gaining practical insights on
marketing mix of Samsung Electronics. It can be said that Samsung is successful as a
multinational conglomerate company. Their marketing and corporate strategy has made it
possible for them to be a huge company and be the market leader of many products. If it
continues to deliver such promises then it can achieve worldwide brand preference and
recognition as one of the top electronics manufacturer of the world.

Bibliography:
Books
Philip Kotler, Gary Armstrong - Principles of marketing, 14th edition
Boone & Kurtz Contemporary marketing, 15th edition
Frances Brassington, Stephen Pettitt-Essentials of marketing
Articles
Samsung Electronics Sustainability Report-2013
Website address
www.gsmarena.com
www.news.yahoo.com
www.samsung.com
www.wikipedia.org