samsung electronic-shafiera humala asaputri
TRANSCRIPT
Principles of MarketingCZBK9004
ASSESSMENT(Individual Assignment)
SAMSUNG ELECTRONIC
Words: 2588
Shafiera Humala Asaputri 003MG012
Bachelor of Commerce – Majoring in Management
EXECUTIVE SUMMARY
Samsung Electronic is one of the biggest electronic companies in the world,
that compete each other with Apple, LG, SONY, HTC, and other electronic company
in the world. Samsung Electronic is founded in 1969 in Suwon, South Korea. The
Chief Executive Officer of Samsung Electronic now is Kwon Oh-Hyun. Samsung
Electronic produce a lot of electronic products such as camera, television, smart
phone, home appliance, PC, and printer. Samsung Electronic markets are people who
have big income because the price of Samsung’s products is not cheap, but the quality
of the products is good. So people do not mind to buy the products. Samsung
Electronic did a lot of charity or donated in event or program in the world. Such as
donated for famous museums in the world, operating program for children that can
not go to school because they do not have any money to go to school and many more.
Samsung use social media, web sites and internal marketing for promote their
product.
Samsung Electronic revenue is increasing rapidly in 2012 because the sales of
Galaxy Note II, Galaxy S III and television. Revenue Samsung Electronic in 2012 is
US$ 186,101.3. Apple lost over Samsung because of these products in the end of
2012. Samsung Electronic has 221,726 employees in the end of 2011, not only in
Korea but also globally. Samsung electronic products always has new technology and
they always give new features and a lot of features for their product, it makes better
than the old product. Because, the key sentences Samsung Electronic are “New
Technology”, “Innovative Products” and “Creative Solutions”.
In this report we can read about Samsung Electronic SWOT and PESTLE
analysis. Strengths, weaknesses, opportunities and threats of Samsung Electronic.
Political, economical, social, technological, legal and environmental factors of
Samsung Electronics. SWOT and PESTLE analysis is very important for company
because with these analysis’ help company to achieve their goals. In 2011 Apple
suing Samsung Electronic about Apple trademarks, patent and copied iPad and
iPhone. Samsung Electronic has to pay to Apple for US$ 1.05 billion. And in 2012
there is also labor issue in China that Samsung Electronic employs underage worker.
Samsung Electronic marketing strategies is very good. The promotion
strategies of Samsung Electronic is very good, they work with famous Korean artist
such as Psy, Super Junior, Girls Generation, and other Korean artist. They work with
them to starring in the commercial film for advertise their new product and also they
sponsored many Korean dramas.
CONTENTS
Executive Summary.................................................................................... ii
1.0 Introduction………………………………………………………………..1
2.0 Situation Analysis
A. Internal Environment
I. Organization background………………………………... 2
II. Products…………………………………………………… 2
III. Financial and non-financial results……………………… 3
IV. Channels…………………………………………………... 4
B. External Environment
I. Markets……………………………………………………. 4
II. Competitive environment…………………………………4
III. Economic environment……………………………………5
IV. Demographic environment..................................................6
V. Social and cultural environment………………………… 6
VI. Political and legal environment………………………….. 7
VII. Technological environment……………………………….7
C. SWOT or PESTLE analysis………………………………………7
D. Critical issues………………………………………………………9
3.0 Marketing Objectives…………………………………………………….. 9
4.0 Marketing Strategies
A. Target markets…………………………………………………….10
B. Product strategies………………………………………………….
10
C. Pricing strategies…………………………………………………..10
D. Promotion strategies……………………………………………… 10
E. Distribution strategies……………………………………………. 11
5.0 Recommendation for Change for improving the marketing of an
organization………………………………………………………………. 11
6.0 Conclusion………………………………………………………………… 11
7.0 References……………………………………………………………….. 12
1.0 INTRODUCTION
Technology from time to time will continue to evolve and getting better. In the
old days, hand phone was very thick. We can only use it for call and send instant
message (SMS). Now hand phone is very slim, easier to bring everywhere. Have a lot
of features like camera, Internet, video chat and other features. Not only hand phone
that evolve, but television too. In the old days, television has a big machine but the
screen is very small. It was in black and white, not color. Now, television is very slim
and has bigger screen than before. The image is very clear and clean like real. Can
access Internet, has 3D feature and other features.
Today, there is a lot of electronic company in the world. Several big names
company is strongly compete with each other. They compete their quality, price and
technology. Samsung Electronic is one of the biggest electronic companies in the
world. Samsung electronic is South Korea Company that founded in 1969. Samsung
Electronic is one of the subsidiary company of Samsung Group. Samsung Group is
the largest company in South Korea.
In this report, we will know about the environment of Samsung Electronic.
Marketing strategies that Samsung Electronic operating in.
MISSION STATEMENT
Samsung Electronic mission is to inspire its communities by following
Samsung’s 3 key strengths; New technology, Innovative products, Creative solutions,
and promoting new value for Samsung’s core networks: employees, partners, and
industry. With these 3 key strengths Samsung hopes that they can make a better world
and get a lot of experience for all.
2.0 SITUATION ANALYSIS
A. INTERNAL ENVIRONMENT
I. SAMSUNG ELECTRONIC BACKGROUND
Samsung Electronic is one of the biggest electronics company in South Korea.
Founded by Lee Byung Chull in 1969 Suwon, South Korea. Now, the Chief Executive
Officer of Samsung Electronic is Oh-Hyun Kwon. Samsung Electronic is one of the
subsidiary company of Samsung Group. Samsung Group is the largest company in
South Korea. Samsung Electronic produces televisions, cameras, home appliances,
mobile phones, and computers. But now, Samsung Electronic is world’s largest
mobile phone maker by 2011 unit sales. And in 2012, Samsung Electronic became the
company that gets the largest revenue wins over Apple. The key performer of
Samsung Electronic in 2012 are Samsung Galaxy S III and Samsung Galaxy Note II.
These products made Samsung Electronic got a lot of profit than before. Samsung
Electronics’ new vision is “Inspire the World, Create the Future”.
II. PRODUCTS
Television / Audio & Video
Television; LED TV, LCD TV and Plasma TV. LED television is the best
television by Samsung Electronic. LED television has a slim design, SMART
television and 3D. SMART television is can access to Internet and deliver content
from other computers or other network. We can plug in our disk drive. Has Smart
interaction such as face recognition, motion control, voice control, and camera
application.
Blu-ray Player, DVD recorder & player, home entertainment system and
wireless Audio with dock.
Camera / Camcorder
SMART Camera, NX Camera, and GALAXY Camera. GALAXY camera use
Android like smart phone.
Home Appliances
Washing machine, refrigerator, air conditioner, vacuum cleaner, and
microwave oven.
Mobile Devices
Mobile phone, Smart Phone, tablet, and Galaxy Note. The most outstanding
from mobile devices Samsung are Smart phone, tablet and Galaxy note.
PC / Peripherals & Printer
Samsung PC are notebook PC and Smart PC. Printer/multifunction.
III. FINANCIAL AND NON-FINANCIAL RESULTS
Financial Samsung Electronic result
Samsung Electronics income increase rapidly in 2012 because the sales of
Galaxy Note II and Galaxy S III.
Non-Financial Samsung Electronic result
Samsung Electronic is helping hand to other country that need help. Samsung
Electronic works with communities for helping other country.
1. In America made program “Samsung Hope for Children”. Has raised US$
25million donated to several charitable.
2. In Europe 2010, Samsung Electronic organized the campaign “Everyone’s
Art” collected around US$ 1.7 million for Pink Ribbon campaign; it is about
to fight breast cancer.
3. Samsung donates products to some world famous art museums in Europe such
as the Louvre, Pompidou, Osray and Rodin to support their activities.
4. In China, Samsung organizes “One Heart One Village”. 25,970 employees
participated to supporting farming villages through improving education &
modifying people’s mindset, renovating infrastructure in the farming villages
and to increasing village income.
5. In Thailand, Samsung Community Center of Hope offers service such as
healthy care, education and recreational for local resident. In Philippines,
Samsung help 55 students to continue their education for free. And donated
Samsung products.
IV. CHANNELS
Samsung Electronic gives their information about their product through social
media and websites because a lot of people using social media in their daily life. It
makes easier for everybody to get the information through social media and websites.
Youtube is for promotional videos. Twitter for daily information and they can
communicate with their consumers. Samsung Electronic gives employees discounts
and coupon for purchasing Samsung products. The name of the program is “the
Samsung Mobile Friends and Family Employee Purchase”.
B. EXTERNAL ENVIRONMENT
I. MARKETS
Markets of Samsung Electronic are people that have big income, because the
price of Samsung Product is not cheap. But with the price that not cheap, they have
good quality product, has a lot features and new design. So people want to buy it
because it is worth it to spend with.
II. COMPETITIVE ENVIRONMENT
Samsung Electronic has a lot of competitor in every field. Competitors in
television and smart phone are very competitive. Competitors Samsung SMART TV
are:
SONY
Sony BRAVIA TV 3D LED is the rival of Samsung SMART TV. It
has same features and specs but it does not has Smart interaction like
Samsung SMART TV.
LG
Local competitor Samsung electronic. LG Smart TV 3D LED has same
features and specs with Samsung SMART TV and also has smart
interaction too.
Competitors Samsung in Smart Phone are:
APPLE
The biggest competitor for Samsung Electronic. From 2011 Apple and
Samsung Electronic always compete each other in smart phone. iPhone
versus Galaxy Note and Galaxy S
HTC
The first company that produces phones with Android mobile device
and the first company that produce first touch screen smart phones in
the world. In the second quarter 2011, HTC become third largest smart
phones company, after Apple and Samsung.
III. ECONOMIC ENVIRONMENT
Currency in Millions of US
Dollars Dec 31 2009 Dec 31 2010 Dec 31 2011
Dec 31
2012
TOTAL REVENUES 125,595.00 142,460.90 152,016.10 185,276.70
GROSS PROFIT 38,444.70 47,874.00 48,696.80 68,592.40
In 2012 total revenue Samsung Electronic rising rapidly to US$ 186,101.3
million with gross profit US$ 68,897.6 million. Samsung Electronic has been able to
reduce expenses of good sold from 67.97% to 62.98%. This made Samsung to a
bottom line growth from USD $12.4B to USD $22.1B.
In 2010 Samsung Electronic spend around US$ 8,000 million for marketing
expense. In 2012 they spend around US$ 12,000 million for marketing expenses.
Sales promotion expenses they spend around US$ 4,000 million in 2011. Advertising
in 2011 they spend US$ 3,500 million, in 2011 is US$ 4,000 million. Samsung
Electronic spending a lot of money for marketing.
IV. DEMOGRAPHIC ENVIRONMENT
Samsung Electronic has 221,726 employees in the end of 2011 increased by
31,262 from 2010.
Korea Overseas TOTAL
2009 85,089 (53.9%) 72,612 (46.1%) 157,701
2010 95,662 (50.2%) 94,802 (49.8%) 190,464
2011 101,973 (46.0%) 119,753 (54.0%) 221,726
It is because of the new production plants and expansion of existing plants in
Southeast Asia and China.
Overseas employee location are from Southeast Asia, China, Southwest Asia,
South America, North America, Europe, CIS, Middle East, Africa and Japan. In
Southeast Asia have 21,165 employees the biggest number among the others. 59.5%
of employees are new graduates and 40.5% are experienced.
Samsung Electronic prefers young people because they have fresh idea and
has full energy for work. 40% of Samsung electronic employees are female.
V. SOCIAL AND CULTURAL ENVIRONMENT
Samsung Electronics’ products not only for Korean market, the products are
for other country too. Because the product is appropriate for everybody from every
country and every age. Mobile phone that uses Android is a trend now, and Samsung
Electronic is following this trend.
VI. POLITICAL AND LEGAL ENVIRONMENT
Samsung Electronic paid taxes and dues to the South Korean and foreign
governments increased by 11.7% from 2010. In 2010 the total taxes and dues
payments is KRW 3,809 billion. In 2011 is KRW 4,256 billion. Samsung is focus on
Age Employee
<30 124,641
30s 70,531
>40 26,554
leading edge, forward-thinking technologies, products and services that are compliant
with government regulations. Samsung Electronic partner with authorized federal
resellers to offer reliable solution to the federal government. The products are LCD
monitors and data projectors. Discrimination forced labor and child labors are
prohibited in Samsung Electronic.
VII. TECHNOLOGICAL ENVIRONMENT
Samsung Electronic product has high technology. Samsung always research
and makes for new features for the product. Every new product has new features,
better than the old ones and good design. Like Samsung vision creative, innovative,
and new technology. Samsung Electronics’ smart phone now is number one in the
world, with iPhone.
SMART Television Samsung is the best television now. It has a lot of features
such as 3D, SMART interaction, can access internet, can play games without
controller, do not need remote anymore, and we can also use our smart phone
(Samsung) to control television. Control our cars, but only Hyundai. We can turn it
off and on the car.
C. SWOT OR PESTLE ANALYSIS
SWOT analysis is Strengths, Weaknesses, Opportunities and Threats. This is
help organization to achieve their goals.
Strengths: what are the advantage of the company
Weaknesses: what are the disadvantage of the company
Opportunities: the project that could be advantage for company
Threats: something that could cause any trouble for company or project
SWOT analysis for Samsung Electronic:
Strengths
Good marketing strategy
Good quality products
Strong hold in Consumer Electronic
Has a lot of employee in local and global
Weaknesses
Poor pricing strategy
High investment on research and development
Have issue about the battery for smart phone
Opportunities
Increasing on consumer market
Increasing television mobile phone sales
Growing global market
Threats
Intense competition
Apple is biggest competitor for Samsung Electronic in smart phones
category
PESTLE analysis is Political, Economic, Social, Technological,
Environmental, and Legal factors. This is one of the important tools of business
strategic Management to identifying the environment of the business operates.
Political
Law about labor
Goodwill for foreign nations
Tax policy
Services and goods provide by the government
Economic
Inflation rate
Income
Revenue and profit
Economic growth
Interest rate
Social
Age distribution
Growth rate
Culture of the society
Technological
Costs and quality leads to innovations
Research and development activity
Better technology for new product
Legal
Employment law
Discrimination law
Consumer law
Health and safety law
Environmental
Place
Ecofriendly product (problem of global warming)
D. CRITICAL ISSUES
In 2011, Apple was suing Samsung violated Apple’s trademarks, patents and
copied the iPhone & iPad. In the end of 2012 it’s said that Samsung should pay to
Apple for US$ 1.05 billion for damages in an intellectual property lawsuit.
In 2012, there is labor issue in China that Samsung Electronic employs
underage workers. They employ 15 years old girl to works at the factory in China. In
2013, there was accident that leaks of hydrofluoric acid gas in plants, Seoul that killed
one worker and injured 4 workers. They cover this fatal incident with lies.
3.0 MARKETING OBJECTIVES
Marketing objectives is a group of goals of the company when they promote
their products or service to the consumers that can be achieved within a given time
frame. Marketing objectives of company for a product include providing information
about product features, reducing consumer to buy the product, and increasing product
awareness among target market.
4.0 MARKETING STRATEGIES
A. TARGET MARKETS
Target market Samsung Electronic is depends on the product. Television is
for people who can accept a new product idea, new features, and new technology.
Because the price is not that cheap, the target market is people who have considerable
income.
Smart phone is everyone. Now almost all people use smart phone. But for the
Galaxy Note II the target market is for businessman, designer, journalist and some
kind profession like that. Because Galaxy Note II has features that make these
professions easier to do their jobs just using this and Tablet.
For other products the target is also the same, for people who can easily accept
a new product, features and technology. And has big income.
B. PRODUCT STRATEGIES
Product is something that company produce and offer to the consumer that
might satisfy a need or want. Samsung Electronics’ always has new ideas for their
new product. They make a new product a lot better than the old ones, so the
consumers will not go to the other company. They make the new product has a lot of
features, the design is better and slimmer than before it make very modern, and they
good quality products.
C. PRICING STRATEGIES
Samsung Electronic produce goods that have good quality, always have new
and a lot features, unique, different from other company and make people want to buy
it and spend their money on Samsung Electronic products because it is worth it to
spend on. The price is very reasonable because with this price people can get good
quality product. Even though it is expensive, but because it has a good quality the
price is very reasonable for people.
D. PROMOTION STRATEGIES
Samsung Electronic Korea works with Korean celebrities like Psy, CN Blue,
Hyun Bin, Girls’ Generation and other celebrities for their Commercial Film and
perform at the event. Samsung Electronic has sponsored a lot of Korean Dramas. It is
easier to promote their product because a lot of people watch Korean dramas, not only
Korean people. But people in other countries in Asia also watch Korean Dramas.
Media is a public relation way, Advertise their new product on newspaper and
magazine. Give special price for first week since they launch the product. Sent direct
email to their regular customer to give them the latest information. Internet marketing
is like social media (Twitter & Facebook) and websites. Youtube is for video
promotional.
E. DISTRIBUTION STRATEGIES
Samsung Electronic has a lot of retail store in each country. In Singapore,
Samsung Electronic has 14 official retail stores. In Pekanbaru (Indonesia), Samsung
Electronic Indonesia opens Samsung Plaza that sale Samsung Electronic product such
as television, smart phones, camera and home appliances. Not only official retail store
but they also works with other cellular store in each country.
5.0 RECOMMENDATIONS FOR CHANGE FOR IMPROVING THE
MARKETING OF AN ORGANIZATION
Samsung Electronic should concentrate or focus on their quality and pricing
structure if they want to maintain their success. The quality of Samsung is already
good. But they have to still improve their product. So, they can keep up with other
company. The pricing structure has to balance with the quality. With that, Consumers
wants to buy it.
Always keep in touch with consumers, means of advertising, press releases
and make them curious about the product specifications, new features and changes if
there are any. Make them want to know a lot about the product.
6.0 CONCLUSION
Samsung Electronic is one of the biggest electronic companies in the world
that has a big income than other country. This company has a good marketing
strategies so they can attract many people too buy and focus on their products. Also
they have good quality product with reasonable price. Even though Samsung has a lot
of competitors, Samsung can still keep up with their product to compete each other.
Samsung always consider their target markets.
7.0 REFERENCES
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