Create the Future

Inspire the World

samsung.com

Agenda

1. About Samsung.

2. Transformation from

follower to leader.

3. Product Life Cycle.

4. Marketing in an

economic downturn.

5. Advertising.

6. Case study.

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•Korean consumer electronics giant

•Founded by Lee Byung-Chul

in 1938 as a Trading company

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Diversified into areas

including

•Food processing

•Textiles

•Insurance

•Securities.

Electronics industry:

late 1960s

Construction and

shipbuilding

industries: mid-

1970ssamsung.com

Samsung's construction division

built the Burj Khalifa, which is

the tallest building in the world.

Popularized PDA

phones

First cell phone with

MP3 player

First Blu-Ray disc

player samsung.com

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Transformation from

follower to leader

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Initial StrategiesFocused on

Volume and

Market

dominance rather

than profitability

During Asian financial crisis in 1997,

Samsung took different approach.

•It cut costs

•Reemphasized product quality and

manufacturing flexibility.

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Innovation distinguishes between a

leader and a follower.

-Steve Jobs

Samsung invested heavily

in Innovation.

Focused on Memory-chip

business.

samsung.com

Highly invested into R&D during 2000s,

budgeting $40 billion for 2005-10.

Increased digital convergence.

PARTNERSHIP WITH

SONY

To create a $2 billion state-of-

art LCD factory.

Agreement to share 24,000 patents for components and

production processes.

Samsung’s Success: Product Innovation

Aggressive Brand Building

Spent over $7 billion in marketing.

Sponsored six Olympics.

Ran several global ad campaigns

themed “Imagine”, “Quietly

brilliant” and “YOU”.

Included brand messages

“technology”, ”design” and

“sensation”.

Investmentu.com

Nokia was the undisputed leader

in the mobile market by huge

margin.

Samsung was behind the Market leader,

Nokia, until the emergence of Smart

phones by Apple.

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Focused on Growing Technology such

as Smart Phones

Partnered

with Google’s

Android

software

Green partnership

with Microsoft to

create energy

efficient computers.

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Samsung

Electronics has

370,000 employees

worldwide. (Apple

has 80,000.

Microsoft has

97,106. GE has

305,000.)

Pays 14.5

billion won, or

$12 billion for

the employeessamsung.com

Samsung accounts for 17

percent of Korea's Gross

Domestic Product

Samsung's net sales for

2011 were $247 billion.

Samsung's electronics

division sales were $179

billion. In 2011, Apple did

$127.8 billion in sales.

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Samsung Electronics' profit last quarter was $8.27 billion,

much of it from smart phones. For comparison, Google's

operating profit last quarter was $3.4 billion.

Samsung spent over $4 billion in advertising last

year, plus an additional $5 billion in marketing. Its ad

budget dwarfs everyone else.

Samsung’s Life Cycle

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STAGES TIME DURATION

Introduction 1960-2006

Growth 2006-2011

Maturity 2011-till date

Samsung during

Economic

downturn

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•Slashed profit margins

•Decreased Production

•Cut inventories

Investmentu.com

Advertising:Provide the public with accurate through fair and high-quality

advertisements, thus helping customers with their buying

decisions. samsung.com

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samsung.com

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•Innovation

•Focused on volume and market

domination

•Used different strategies

during recession

•Great investment in R&D

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Samsung is the global leader in flat-

panel TVs and memory chips and

number 2 in mobile phones

It has reached $110 billion in 2008 and

$247 billion in 2011 in sales.

So, definitely it is possible to

reach $400 billion in sales by

2020

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Summary

1. About Samsung

2. Transformation from follower to leader

3. Product Life Cycle

4. Marketing in an economic downturn

5. Advertising

6. Case study

samsung.com

Disclaimer

Created by

V. Nivetha, PSG

Tech

during an

internship

by Prof. Sameer

Mathur, IIM Luck

now

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