Samsung Marketing Environment

Samsung work in the most competitive markets of the world. About 67 new Smartphones are introduced every year. Samsung has a steady image that focused on low price phones for the lower end of the market. To break into the upper-market Samsung has to give up their low market position and focus on creating a higher brand value.

 DEMOGRAPHIC:

Samsung offers phones for youth, age of 16-29, for businessmen, middle class youth government lower class workers.  Samsung Galaxy is a good option for youth because it has many attractive features as Wi-Fi, 3G. 

TARGETING:

 Samsung target market are the following customers:

• Trendy young people. 
• Professionals.
• Large businesses.
• The everyday cellphone users.
• Public safety
• The government.
• Utility and manufacturing enterprises.

 Samsung biggest global competitor right now is Apple Inc.

Samsung Ethics

As a global company with about 160,000 employees  in 61 countries worldwide, Samsung  is fully dedicated to following  local laws and regulations as well as applying a strict global code of conduct to all employees.  Samsung has a goal to become one of the most ethical companies in the world that is respected by its shareholders, Samsung continues to train its employees and operate monitoring systems, while practicing fair and

transparent corporate management.

Values & Code of Conduct

 Samsung has these global code of conduct called" Five Samsung Business Principles" that they came out with in 2005.

Samsung Electronics Global Code of Conduct

Principle 1.

• We comply with all laws and ethical standards.

•  We respect the dignity and diversity of individuals.
• We compete in accordance with the law and
• business ethics.
• We maintain transparency of accounts with
• accurate recording of transactions.
• We do not get involved in politics and maintain
• neutrality.
• We protect information on individuals and business partners.

Principle 2.

• We maintain a clean organizational culture.
•  We make a strict distinction between public and private affairs in our duties.
•  We protect and respect the intellectual properties of the company and others.
•  We create a sound organizational atmosphere.
•  We maintain the dignity of Samsung Electronics in our external activities.

Principle 3.

• We respect customers, shareholders and employees.
•  We put priority on customer satisfaction in management activities.
• We pursue management focused on shareholder value.
•  We endeavor to improve our employees’ quality of life.

Principle 4.

• We care for the environment, health, and safety.
•  We pursue environment friendly management.
•  We value the health and safety of human beings.

Principle 5.

• We are a socially responsible corporate citizen.
•  We sincerely execute our basic responsibilities as a corporate citizen.
•  We respect the social and cultural values of local
• communities and practice prosperous co- existence.
• We build relationships of co-existence and co- prosperity with our business partners.

Samsung Strategic Plan

Samsung’s profits from mobile devices have gone down by 13%, which has led to the investors getting a bit anxious. They feel that the sector that  Samsung earned  most of its profits, the high-end smart phone market, is now becoming over flooded. Based on this, Samsung plans to meet with about 400 analysts and investors in Seoul this November for discussing its strategy for growth in the long term.

SWOT

 STRENGTHS

1. Hardware integration with many open source OS and software
2. Excellence in engineering and producing hardware parts and consumer electronics
3. Innovation and design
4. Focus on environment
5. Low production costs
6. Largest share in mobile phones and 2 place in smartphones sales
7. Ability to market the brand

WEAKNESS

1. Patent infringement
2. Low profit margin
3. Main competitors are also large buyers
4. Lack its own OS and software
5. Focus on too many products

OPPORTUNITIES

1. Growing India’s smartphone market
2. Growing mobile advertising industry
3. Growing demand for quality application processors
4. Growth of tablets market
5. Obtaining patents through acquisitions

THREATS

1. Crowded smartphone markets in developed countries
2. Fast technological change
3. Failing margins on hardware production
4. Breached patents
5. Apple’s iTV launch
6. Price wars

COST COMPETITIVE ADVANTAGE
 Samsung is able to bring products to the market more quickly than Apple because it controls the entire manufacturing process for its smartphones. Samsung makes everything from chips to screens at its own factories, allowing it to change designs and produce new products at a quick pace.

PRODUCT STRATEGIES

As the release of Microsoft’s new Surface tablets approaches, more information regarding these is becoming available. Microsoft has already cut prices of Surface models from 2012 as well as those of the touch cover; however, according to new information, the next versions of the Surface tablet will come with another type of cover along with the Type and Touch covers. According to rumors, this could be the Power Cover, which as the name suggests, should house an extra battery in order to extend the battery life of the tablet.

PLACE STRATEGIES

Samsung says Nigeria,  plays a critical role in its global business strategy. Emmanouil Revmatas, Business Head, Hand Held Products at Samsung in Nigeria made a remark that the huge potentials there makes the country a strategic market for Samsung. Reports have shown that about 30 million smartphones will be sold in Nigeria between now and 2015.

PROMOTION STRATEGIES

Samsung region in Africa  joined in a joint marketing initiative so that they can drive up sales and increase its local market performance.  As part of the strategy regional retailers Nakumatt Holdings have  plans to double their share of Samsung Consumer Electronics products sales through a series of joint marketing promotion initiatives. Just six months from its recent position as a regional franchisee and approved importer for the full range of Samsung Consumer Electronic products, Nakumatt has managed to grow its share by more than 50% in less than six months.



PRICING STRATEGIES

Samsung’s strategy for selling gadgets is Release lots and lots and lots and lots of them and see which ones consumers will buy. The Next Web an online blog  points out that while Samsung’s gadget spam strategy has helped it sell a huge amount of smartphones and tablets in China, it hasn’t necessarily been helping with the company’s bottom line. In fact, they said that Samsung’s percentage of revenues that come from China has actually decreased over the years, which reflects the really competitive Chinese smartphone market.







SAMSUNG MISSION STATEMENT  
"We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society."

SAMSUNG HISTORY

From its inception as a small export business in Taegu, Korea, Samsung has grown to become one of the world's leading electronics companies, specializing in digital appliances and media, semiconductors, memory, and system integration. Today Samsung's innovative and top quality products and processes are world recognized. This timeline captures the major milestones in Samsung's history, showing how the company expanded its product lines and reach, grew its revenue and market share, and has followed its mission of making life better for consumers around the world.
In the 1970s, Samsung laid the strategic foundations for its future growth by investing in the heavy, chemical, and petrochemical industries. During this time, the company also took steps to enhance its competitive position in the world's textile industry, integrating its manufacturing processes from raw materials to end products. As a result, many new companies were created, including Samsung Heavy Industries Company in 1974 and Samsung Shipbuilding and Samsung Precision Company (now Samsung Techwin) in 1977. Another burst of growth for Samsung came from the burgeoning home electronics business. Samsung Electronics, already a major manufacturer in the Korean market, began to export its products for the first time during this period. Samsung's also acquired a 50 percent stake in Korea Semiconductor, further solidifying Samsung Electronics' position as a leader in semiconductor manufacturing.