Introduction Samsung Group is a South Korean multinational conglomerate company which headquartered in Samsung Town, Seoul. It comprises numerous subsidiaries and affiliated businesses under Samsung brand including Samsung Electronic which is the world largest electronic company. It is one of the world’s largest conglomerate with an annual revenue of US$ 220.1 billion in 2010.
Samsung has been the world’s most popular consumer electronics brand since 2005 and is the best known South Korean brand in the world. Samsung Electronic has proven to be the one of the most prestigious technology company by launching of the first 3D TV in March 2010 at a New York event and partnered with Dreamworks Pictures and this had a major impact on the market. With the release of this TV, Samsung had dominated the market in North America and Europe where TV makers compete fiercely.
According to a market research firm, Gfk, Samsung kept overwhelming No. 1 position in LCD TV capturing 30.8% cumulative market share from January to May 2011 Some of the Samsung competitors are Sony, Mitsubishi, Panasonic, LG and Vizio. For most competitors the model chosen is quite similar to Samsung’s and this will definitely affect Samsung’s sales. The competitors carry out different marketing strategy, for example Sony uses web advertising to promote their product. However, the differences between products can be seen in quality and price. Target Segment
Samsung primarily chooses to focus on the psychographics and demographics of their customers. It is with information gathered regarding these segments that Samsung can serve their customer better. In psychographics segmentation, Samsung target market at the early adapters. These early adapters are consumer who immerse in the TV experience or opinion leader amongst peers. With the partnership with Technicolor and Dreamworks Picture, Samsung offering customers the full package for the ultimate home entertainment experience.
The individuals Samsung looks to target, value the home entertainment experience as prior generations would have valued an evening at the theatre, Samsung’s 3D TV. Besides, in geography segmentation, Samsung target audience for 3D TVs will be mostly found in or near big cities. These locations must be considered as prime market area as availability of 3D content in urban areas rather than away from cities in the more technologically constrained rural areas.
Most customers of 3D TV products will buy them via e-commerce suppliers offer free or cheap installation and deliveries. As for demographics segmentation, Samsung’s target market at affluent young men who good at computer games and they are twice as likely to express interest in receiving 3D TV at home. They are most likely young, mid twenties to late thirties Caucasian males, educated and married. Samsung also tends to be families with young children are most likely show interest in 3D technology and with intention of captivating market of families with children between ages 2 to 14. Product and Service Offered
Samsung offers the most diverse product mix in 3D market such as LED, LCD and plasma 3D TVs and other electrical appliances. However, Samsung’s cash cow product in the 3D market is the LED series 4,5,6,7,8 and 9. Samsung offer customer with the most cutting-edge, technologically advanced TV, in the 3D market.
Besides, Samsung also provided the remote only of its kind, offering consumers a distinct feature they cannot get from any of Samsung Electronic’s competitors. In addition, Samsung Apps are growing collection of apps specially built for these TV that connected to digital content like videos, sports, games, social networking and much more. Samsung 3D TV with Allshare apps allow consumers to syncs digital devices as well connect to multiple PCs.
Samsung also offers best 3D packages, consisting of 3D starter kit, 3D home theatre surroundsound, 3D capable blue ray players together with 3D TVs. Samsung also offer other TV accessories like wireless lan adapter, ultra slim wall mount and TV camera to enhance TV experience. Samsung also provided online service such as live chat support, cyber service, manuals & downloads and technician service by visiting the service location.
Samsung also offer customer Evolution Kit which will keep their TVs up to date with technology and helps to boost performance of the built-in processor. Since Samsung produces such a diverse product mix, they can meet all the needs of consumer at very competitive level. Marketing Management Philosophy
The marketing management philosophy of Samsung is market orientation and they focus on customer needs and wants while meeting objective. Samsung Electronic’s “Vision 2020” statement “Inspire the world, Create the future” captures Samsung’s dedication to inspiring its communities by leveraging Samsung’s three crucial strengths :“New technology”, “Innovative Products” and “Creative Solutions” in hope to contribute to a better world and richer experience for all.
Samsung as the strong corporate brand known for its quality products and advanced technology use is working to lead market by offering range of top quality award winning products developed specifically for the 3D market. Besides, Samsung also regularly focus on researched and development (R&D) function by devote significant resources and attention to develop consumer-preferred products with innovative and distinctive features. This can be shown when the company invested at least US$9.3 billion in 2011 and Samsung employ nearly 50000 R&D personnel which equivalent to 26% of total workforces around 42 research facilities around the world in 2010.
They collaborate on strategic technologies for the future and original technologies designed to forge new market trends and set new standards for excellence. Samsung also using societal orientation for marketing management orientation where satisfy consumer needs and wants while enhancing individual and society’s long term best interests. Samsung’s product with ENERGY STAR compliant, eco-friendly feature helps save consumer money while helping save environment by consuming less energy. Besides, Samsung’s LED TV do not use mercury or spray paint during production and these eco-innovative models uses up to 40% less energy compared with conventional LCD monitors.
Samsung has more ENERGY STAR qualified TVs than any other electronic brands. Beside eco-friendly product, Samsung also takes part in contribute to society by focus on social activities related to the disabled, environment preservation and informatization for society under Samsung Welfare Foundation. Samsung has also poured energy into supporting youth, culture and arts activities, academic exchanges and scholarships.
Samsung also become a full sponsor of Olympic Games during Nagano Olympic Winter Games in 1998 and will continue sponsor for the next 8 years cover Vancouver Winter Games 2010, London Olympic Games 2012 and Rio de Janeiro Olympic Games 2016. Promotion Methods
Samsung using promotional mix as their promotion plan and Samsung work hard to promote it’s product via advertising media. For example, Samsung Singapore had launched a campaign for its Smart TV D8000 through the use of print, online and outdoor ads last year April to June.
The print ads were displayed in The Straits Times, online banners on Yahoo!, and outdoor billboards at chevron House, Chinatown Point and Suntec. Samsung UK also invested £8m in launching a “stunning ” advertising campaign for its 3D TV range, which it claims as the UK’s first LED TV in 2010. Samsung has been the Official Wireless Telecommunications Partner since 1998 and Samsung had signed up David Beckham as its London 2012 brand ambassador this year.
Samsung participation in this international sporting event, with over a thousand athletes from 100 or more countries competing, approximate 10 thousands workers, hundreds of millions of attendees and viewers, this certainly amplifies the brand image. Besides that, Samsung also launched a lot of online commercial video highlight it technological superior goods. Samsung also using powerful website www.samsung.com.sg to provide product details, news, supports, Samsung Apps and promotions for customer.
Samsung also using sales promotion to attract consumers, for example Samsung offer customer with different package like premium pack, family pack, entertainment pack and smart pack which suit different customer needs during 2012 April – June Smart TV Promotion. In addition, Samsung also offer lots of coupons and contest with attractive prizes to increase product sales during exhibition show. The past Great Electonics Expo 2012 offers customer products at wholesale price and come with some free TV accessories. Samsung is expecting 25 million units sales for Samsung Smart TVs this year.