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Xavier University Ateneo De Cagayan

School of Business and Management

In partial fulfillment
Of the requirements
In
Marketing Management 5

Submitted by:
Mark Lester L. Oche

Submitted to:
Ms. Ali RequintonLapus

Marketing Plan

Executive Summary
Introduction
Samsung Electronics Co. Ltd. Is a multinational electronics company
which originated in Suwon, South Korea. In recent years, it has diversified
into one of the top performing manufacturer of consumer electronics. They
offer top end household appliances, high-tech gadgets and smartphones.
Samsung has also been the leading and largest manufacturer of electronic
components such as lithium-ion batteries, semiconductors, chips, flash and
hard drive devices for competitor clients such as Sony, Apple, HTC and Nokia.
It has been the world's largest information technology company by revenues
since 2009. It also has assembly plants and sales networks in 88 countries
and employs around 370,000 people. In the later years, Samsung electronics
has managed to penetrate the market for smartphones and tablets and even
became the top vendor and most innovative company when it comes to
design and ergonomics. Samsung Electronics continues to lead in offering
innovative technologies and premium devices that fit the lifestyle of the
consumers at a very reasonable price.
The Company
Samsung Electronics Co. Ltd. Is the largest component of South Koreas
largest Chaebol one of the giant family-controlled conglomerates that have
been instrumental in building the countrys economy over the past half
century.
In December 2010, Samsung switched its management system from
the single CEO system of last year under Choi Gee-Sung, to a two-person
management team with Choi Gee-Sung, CEO and Vice chairman, and Lee JaeYong, Chief Operating officer and President. In June 2012, Samsung
appointed Kwon Oh-hyun as the new CEO of the company. The change done

by the company to its management system has led them to more


improvements and ideas that contributed to their success.
The Market
The market for consumer electronics, electronic components and hightech gadgets has always been rapidly evolving and growing. With the advent
of technologies, the modern world has forever changed and shaped the way
people lived their lives. The growth of technological advancements has
pushed electronic manufacturers to engage in tight competition offering
different variety of products that addresses consumers wants and needs.
With more manufacturers investing into research and development for a
class

leading

innovation

and

technological

breakthroughs,

more

manufacturers are also being displaced from the market. Many companies
vanished in the market due to incompetence and failure to stay in the
competition. Everywhere we go, we always see the existence of high-end
technologies and technical innovations around us. This proves that the
market for consumer electronics is among the largest product market in the
world. A market as large as this will never be too easy to penetrate because
of the existence of large manufactures with years of expertise and
experience. So far, Samsungs marketing strategies has put them into the
top leading provider in the market and gaining the largest market share in
the business today.
Current Situation and Trends
Growth and development of the electronics market has always been
serious and rapid. This is fueled by the changes in the consumer behavior
with regard to their attachment with technologies. Consumers have never
been

contented

with

previous

technology

offerings

by

electronic

manufacturers. This has pushed electronic manufacturing companies to be


aggressive in developing technological advancements and class leading

innovations which will cater accordingly to the consumer wants and needs in
terms of technology.
Current trends in the market today involves electronic products which
offers ease of use, environmental safety, accessibility and availability
altogether at a reasonable price. Innovations which set the taste and feel of
the people are also accounted currently.
Samsung Electronics has never failed in performing what has been the
trend nowadays. They even have innovations that are becoming essential
part of everyday living such as the smartphones. They didnt just provide the
needs of the people; they literally create the need for the people.
Their

rough

start

and

background

clearly

speaks

for

their

determination to succeed in this business. From being a manufacturing


company offering low-cost electronic products, they have developed into a
high-end manufacturer of electronic products providing exquisite design and
usability. The companys diverse heritage and background on manufacturing
consumer electronics and electronic components has made them excel in the
market today. Furthermore, investing a lot of the companys capital into
research and development for innovations was a brilliant and smart move for
them. As of now, the company continues to stay on top of the market
offering an ecosystem of electronic products.
Performance Review
Samsung Electronics built their foundation way back in the 1970s;
offering cheap 12-inch television sets under the Sanyo label.The company
then realized that by remaining in this manner and situation, they would
never excel in the market. By mainly relying on price as their competitive
advantage, they have foreseen the disaster coming on their way. Waking up
from this realization, Samsungs top managers made a bold move by
changing the companys image into a much classier and design-focused

manufacturer of electronic products. Technical innovation and research and


development are a crucial stage for the company because it can be a make
or break strategy; but Samsungs determination and hard work played a vital
role in pursuing this strategy. New product development and design offerings
made an impact on the consumers taste and preference. Moreover, their
design language offers functions and benefits which made people realize
that their worth the price.
Key Issues
The main issues faced by Samsung Electronics were the ever growing
demand and changing consumer taste and preference on technologies.
Adding up to the pile, was the Asian financial crisis in 1997 making a major
strategic shift essential for survival. Also by mainly relying on the price as
their competitive edge, the company foresaw the challenge from the Chinese
manufacturers along the Asian market. Samsung Electronics has been wise
enough to have developed and implemented key actions not only to prevent
the threats from happening but also to avoid them from cutting through the
companys capital. Listed below are the key actions developed by the
company.
Key actions

Making a bold move by changing companys structure in line with its


strategic campaign change everything except your spouse and

children
Build an image of the company as a stylish, high-quality brand

commanding a premium price


The use of technical innovation and design to appeal to younger and

relatively upscale customer segments around the world


Head start on technical innovation, research and development
New product development and design
Build the Samsung brand through competitive marketing programs

In addition, success attained by the company can diminish in time when not
taken proper control. Few actions can also be implemented in order to
sustain current operation. Listed below are few key actions to secure steady
operation.

Control its own technical destiny and not just copy others
Control its growth and development
Monitor current improvements and technical innovations to secure
genuine products

Objectives
Samsung Electronics objective was to buildits image and brand to suit
consumers taste and preference also benefiting their wants and needs.
Moreover, they also aim to make technological advancements and class
leading innovations to provide an image of premium look and feel all
throughout their product offerings.
Here are some objectives that need to be considered.

Maintain positively controlled growth and development


Generate marketing programs that aims to penetrate other markets
Maintain the increased brand awareness through promotions and

sponsorships
Develop strategies that will address customer feedback on their
products

Marketing Strategy
Samsung Electronics made a very good marketing strategy which
positioned them as the leading manufacturer of consumer electronics and
electronic components in the market today. It is evident that a good
marketing strategy would really determine a companys success provided
that proper implementation is carefully monitored all throughout the
operation of the business. Samsung Electronics started everything with the

market strategy of changing everything in the company to be more


competitive and advanced. From being a cost-driven company they
completely changed their structure into a much more solid manufacturing
company.
Their first move was to aim a new competitive strategy at developing
and marketing technically superior products while building an image of
Samsung as a stylish, high-quality brand commanding a premium price. The
idea was to create an impression of a unique way of penetrating the market
by offering technical innovation and design to captivate younger consumers
as well as the relatively upscale customer segments.
Furthermore, investing in research and development and technical
innovation, the company has managed to achieveclass leading electronic
products that have set trends in the market. It also enabled them to control
its own technical destiny and not just copy others. With much focus on core
technologies common to other group of company, such as semi-conductors,
large LCDs, display drivers, chipsets and mobile telephony, they have
become pioneer manufacturers in the digital world, which they sought out
would require new skills and innovations.
In addition, the company did not settle with just cutting-edge
innovation alone to gain advantage in the market. They developed
technologies which has taste and functionality adding up aesthetics and
good ergonomics; connecting fairly well on the feelings and emotions of the
consumers. Providing these set of product design and functionality, they also
considered the price of having this product. They make sure that the
customers get what they paid for. In order to achieve this idea, they involve
a team of product designers who collaborate closely with their engineers,
manufacturing people, marketers and market researchers. They also
involved into outsourcing to stay in touch with customers in different
countries. This includes immersing their product designers into seven design

centers in cities like London, Tokyo, Shanghai and San Francisco. Moreover,
constant monitoring and evaluation of the feedback from customers enables
them to ascertain consumer taste and preference.
Lastly, they made huge efforts of developing marketing programs to
build up the Samsung brand around the world. They have sought out that
there is a need for them to develop strong and aggressive brand awareness
for customers to have sufficient information on their products.
Action plans
Samsung Electronics started with an image of being a low-class
manufacturer

of

electronic

products.

Diversifying

into

high-end

manufacturer they had become the leading industry in the digital world
today. Their marketing programs and strategies are very good and well
implemented throughout the firm. My concern would be that if Samsung did
not wait for many years to have decided this change, they might have gone
more and better from what they are today. I think that with strong brand
awareness for people to know their product would also be an option for their
success.
With the success they have achieved today, we could easily say that
they are as hard as rock when it comes to competition. But the company
should not be too complacent with what they have now. Listed below are
some action plans that Samsung Electronics should consider for years to
come.

Invest on research and development concerned with problems


regarding environmental safety. They should not only focus on
providing the needs and wants of the customers in terms of
technology. They must also be concerned with the ecosystem where
their customers reside and develop products which help preserve the
environment for the future generations.

Invest on research and development concerned with current issues


which will pose a big threat for the company in the future. There are a
lot of things to be considered here, such as raw materials being used
for production, network of branches for much tighter connection with

potential customers, security of trade secrets etc.


Proper control and monitoring of production. They should not over-

produce or oversell products because it would incur loss.


Expansion of business into other parts of the world to reach more

people who will be aware of the products.


Penetrate other markets rather than just the consumer electronics and
electronic components.

Controls
Samsung Electronics has positioned themselves as one the leading
manufacturer of electronic products in the market today. With technological
breakthroughs and cutting-edge innovation, they surely are a top competitor
to beat. Their main challenge was to how to sustain companys current
situation as the top manufacturer while continuing their action plans for
years to come. Listed below are control actions which need to be considered
by the company.

Careful and proper monitoring of production


Assurance and security on the implementation of marketing programs

and strategies to sustain good performance


Develop solutions to achieve stronger product awareness
Provide services which will directly address consumer feedbacks
Insurance and security of trade secrets to prevent other companies
from copying theirs

Contingency Plans

Samsung Electronics should be prepared for the possible worst-case


scenario that they may face anytime soon. In the event that everything else
fails in the operation, they should be prepared to gain control of the situation
and not lose sales. Listed below are ideas which they may consider in the
event of having failure.

Make a background check on other existing companies which had


years of expertise and experience; study and adapt their marketing
programs and strategies. For the company to gain advantage, focus on
the ideas that are possibly lacking in other companies marketing

programs and strategies.


Engage into push marketing to bring products to consumers rather

than pulling them to the companys products.


Establish good relationship with consumers through engaging into
various activities that connects to them.