Marketing Strategy Analysis – SAMSUNG case Essay Example

in the competitive market, Samsung implemented effective strategies such as prioritizing product quality and maintaining stringent quality control policies to address production mistakes promptly. Furthermore, Samsung leveraged its global strength by gathering international resources and hiring scientific experts from the Soviet Union at their Seoul labs in the early 2000s (Gregory, 2005). This move resulted in successful innovations like the TRIP project introduced by Soviet scientists. The TRIP project focuses on identifying contradictions between current technologies and customer needs to generate innovative ideas. Overall, Samsung prioritizes product quality and meeting customer needs in line with its business philosophy since customers who try new products expect a high-quality purchase experience (Samsung Success).Samsung's commitment to quality control is crucial in improving customer satisfaction and loyalty while minimizing the need for product replacements. Establishing a strong reputation for high-quality products differentiates Samsung in the competitive market. To increase customer awareness, Samsung utilizes various promotional methods such as printed brochures, posters, and website information. Additionally, they sponsor popular events like the Royal Windsor Horse Show and Samsung Open Tennis Tournament while providing incentives and discounts to trade partners and dealers to support sales growth and new product launches.

Launching a new product successfully is always challenging when aiming to outshine competitors in today's market. Hence, Samsung conducted extensive research on the DVD market to identify challenges and opportunities. This research allowed them to develop an effective strategy that meets market demands and provides them with a competitive advantage. As an example of this approach, Samsung introduced an affordable DVD product with advanced features and significantly higher data capacity than existing options.

Furthermore, Samsung has introduced the TFTP flat screen monitor as

an alternative to CRT screens. These LCD monitors offer sharper images, save space, consume less power, and emit fewer harmful radiations. These features have positioned Samsung as a leader in the electronics market.Samsung's distribution strategy is a crucial aspect of their overall strategy, as they utilize various channels such as dealers, retailers, and distributors. They also offer free samples to attract more customers. Moreover, Samsung tailors distinct strategies for specific markets and products. For example, they market TFTP monitors primarily towards businesses in offices or financial centers in cities or fashion outlets.

To effectively reach potential business users in this sector, Samsung focuses on advertising in newspapers and magazines and implementing one-to-one marketing approaches. Despite being a newcomer in the mobile business sector, Samsung has become the world's largest corporation in the technology industry by revenue. Their marketing promotion for mobile devices stands out due to its exclusive use of market research and segmentation to understand consumer demands.

In addition to advertisements and media means, Samsung enhances brand recognition through sponsorship of famous events while prioritizing well-trained retail staff. This comprehensive marketing strategy employed by Samsung serves as a valuable lesson for every marketer.

With the aim of gaining dominance in the market, Samsung employs various strategies including sourcing quality products from around the world and implementing diverse marketing techniques.

The table provided below outlines Samsung's SWOT analysis which identifies its strengths and weaknesses.Samsung is known for its strong global reputation, which builds trust with customers and influences their purchasing decisions. The company continually improves its reputation through various public responses. Additionally, Samsung excels at understanding customer needs, leading to numerous innovation and design awards. They offer products that

have superior benefits compared to competitors and cater to different customer segments.

Moreover, Samsung leverages advanced technology and takes advantage of low production costs by manufacturing in low-cost countries. Due to their wide product portfolio, Samsung holds a significant market share, resulting in reduced costs and increased demand for contracts and failures. Ranked as the top efficient brand naming company valued at $33 billion dollars, Samsung is recognized as the 9th most valuable brand globally.

However, there are weaknesses that Samsung faces. One includes patent issues related to infringement with Apple that damaged their reputation and resulted in a $1 billion fine. Another weakness lies in their reliance on non-proprietary operating systems and software. Additionally, Samsung's focus on offering low prices for mass-market products may cause customers to perceive their quality as lower.

Furthermore, they face competition in various industries such as electronics, engineering, and chemicals. Despite these challenges, Samsung has an opportunity to capitalize on the growing demand for smartphones by creating their own software specifically designed for related hardware devices.Samsung should focus on developing new products that have unique features and user-friendly interfaces. This will give them the opportunity to dominate the tablet market with innovative designs and higher quality technology, as there is an expected increase in demand. The text also briefly mentions threats without going into further detail, but it does highlight that the mobile phone market appears saturated in many countries, especially developed ones, which could impact purchasing power. Chinese companies pose a threat by producing similar products at lower prices.

According to Samsung's TOWS matrix analysis (Table 3), they have identified external opportunities such as investing in tablets and expanding the mobile phone

market. However, they also face threats such as patent issues, price wars, and technological changes. Internally, Samsung aims to develop new technologies and designs in order to dominate the global market. They are also establishing national companies and increasing brand value through sponsorships of sport events.

Additionally, Samsung is investing in the digital market with a focus on core digital technology and home networking. They are pursuing new product developments like wearables and pen computing alongside their exceptional smartphones. As a global corporation with an esteemed reputation, broad market reach, strong cash flow, innovation capabilities, design expertise, high brand value, and active engagement in social activities; Samsung has positioned itself well for success.Despite having some internal weaknesses, such as a focus on niche markets and the need for further research and development in technology, Samsung aims to explore new markets and improve the quality of its technology to maintain its superiority. In terms of Android smartphones, Samsung is one of the largest manufacturers in the industry. They have also been successful in selling other engineering products like monitors and LCD TVs. Over time, Samsung has experienced incredible growth that has allowed them to become a leader in the competitive market (Kristin L., 2014).

However, challenges emerged for Samsung in 2014 when their weaknesses were revealed according to Conn's analysis (Lana H., 2014). One setback for Samsung was the Galaxy SO smartphone which did not meet company expectations despite its high turnover. Although Samsung remains the market leader in smartphones, their market share did not increase in 2013 indicating a halt in previous growth. In Q3 of 2013, Samsung experienced a slight decrease in profits for the first

time since 2011.

Despite facing fierce competition and continuous advancements from competitors, Samsung has yet to introduce any groundbreaking technology or exceptional products. This failure in the smartphone sector calls for Samsung to prioritize strong marketing promotions and focus on delivering innovative technology with outstanding features to avoid disappointing customers. According to CNN analysis, setting modest goals in 2014 will help achieve this goal.Samsung and Apple are both leaders in the mobile phone industry, with Samsung holding the largest market share in terms of revenue. However, Apple is more profitable due to their focus on the premium segment. The higher prices of Apple's products result in significantly higher profit margins for the company.

In 2011, Apple sued Samsung for design copying, leading to a $1 billion compensation order that damaged Samsung's reputation and profits. As a result, competing with Apple continues to be challenging for Samsung.

Over the past decade, Apple has successfully built a strong and unique brand, resulting in a loyal customer base and competitive advantage in the mobile industry. To achieve similar dominance, Samsung should prioritize improving their software and operating system capabilities. By enhancing these aspects, they can better satisfy current customers and attract new ones.

Additionally, Samsung may consider developing their own operating system for the low-end market while investing in high-quality premium products for the high-end market. This targeted approach allows them to focus on niche markets instead of mass-marketing mid-range products.

Furthermore, Samsung should concentrate on promoting and selling their digital products such as Core Digital Technology, Pen Computing, DRAM etc.The text emphasizes the importance of internal marketing in ensuring customer satisfaction. It highlights that internal marketing involves motivating employees and service teams

to work together towards providing excellent customer service. This is achieved through elements like motivation, leadership, structure, delivery system, and marketing management. The significance of internal marketing lies in prioritizing employee concerns alongside customer needs because motivated employees contribute to organizational value and help achieve goals. Samsung Corporation recognizes this importance and uses incentives and welfare programs to motivate its employees, covering aspects such as housing, education, health, and retirement for both employees and their families.To promote a positive work environment at Samsung, it is important to reward exceptional performers and those working on significant projects. Additionally, implementing suggestions based on the theory of internal marketing can further enhance the quality of internal marketing at Samsung.

One suggestion is to create a communication channel for staff to listen to their opinions and ideas. Weekly briefings can serve as a useful tool for discussing progress, addressing issues, and sharing success stories within the company (align="justify").

Providing employee training and considering factors that contribute to satisfaction can help enhance employees' knowledge and motivation. The company's culture also plays a significant role in influencing employee behavior and comfort levels.

Maintaining successful business-to-business relationships is essential for Samsung's overall success. Business relationship management (BRIM) focuses on strengthening customer relationships, while customer relationship management (CRM) operates alongside BRIM. In this paper, we analyze Samsung's marketing strategy using the SHOTS and TOWS matrix to identify weaknesses, threats, strengths, and opportunities. We also explore Samsung's approach to internal marketing.

Despite starting as a small family company, Samsung has emerged as a global leader with a flexible strategy.In 2013, Integrands Best Global Brands ranked it as the 8th best brand. This ranking was achieved through the utilization

of exclusive market research to gain valuable insights before implementing strategies. The text emphasizes the importance of clear goal setting and segmentation in businesses, highlighting the need to understand customer behavior for effective meeting of their needs. Marketing strategies rely on promotion, which can be customized based on target customer segments such as low-end or high-end markets. Various tools like brochures, leaflets, websites, and product samples are used to raise brand awareness. Quality control is crucial as it reflects a business's philosophy, and Research & Development (R&D) is necessary for maintaining customer loyalty. However, it should be acknowledged that no marketing strategy remains efficient indefinitely.