Samsung is a pioneer on advertising and marketing. These slides is a brief research about marketing strategy on Samsung.

2. Samsung Marketing
Ghasem Azad
Marketing Management
KHU, April 2017

3. FIFA World Cup
2002
Final Match
2-0

4. 2002
FIFA World Cup Champions
Brazil

5. Who is the REAL winner?
Ronaldo
Oliver Kahn
Cafú
Luiz Felipe
Scolari

6. The Real Champions

7. What happened after World Cup?
• Sustainable Development in both countries
• $ 3.2B of net profit
• Cultural exchange and cultural development
• Improve quality of residents’ life
• New international image of the host
community
• Enlarge the industry of Korean products

8. Korean Improvement
Automotive Industry

9. Korean Improvement
Electronics Industry

10. 0
100
200
300
400
500
600
700
800
900
Thousands
Korean Automotive Industry Improvement speed
Hyundai all models U.S. sale since 1985
Huge marketing
on FIFA world cup

11. • Founded on 1938, 79 years old
• Entered the electronics industry in the late 1960s
• World’s 2nd. Largest IT company* (2016)
• World’s 7th most valuable brand (2016)
• “Fortune 500” Global Rank: 13 (2015)
• World's #1 manufacturer of mobile phones since
2011
• World's largest television manufacturer since 2006
• Comprised of more than 78 different companies
*:World’s ranking based on net revenue by Fortune 500

12. Samsung Electronics in numbers*
319,000
Employees
*: Numbers are according to 2015 reports of Samsung Electronics
$ 177B
Revenues
$ 16.5B
Profits
$ 206.6B
Net Asset Value

13. Others
87%
Samsung
13%
Samsung
vs.
Korea GDP*
*: Korea GDP extracted from World Bank Data is USD 1377.8B

14. Samsung and
advertisement
#1Biggest Marketing Budget in History
(USD 14,000,000,000 for 2013)

15. Samsung and
advertisement
#13World’s Top Advertising Budget for 2016
(USD 3.3bn)

16. About Samsung
Lee Byung-chul
Founder
(Died on 1987)

17. About
Samsung
Electronics
Dr. Kwon Oh-hyun
Vice Chairman & CEO
(since 2012)

18. About
Samsung
Electronics
Lee Kun-hee
Chairman
(since 2010)

19. Tablets
Wearable Tech
TVs
Cell Phones

20. Home Appliances
Memory &
Storage
Home Theater
& Audio

21. Computing
Security & Monitoring
Smart Home

22. Management ideology at a glance

23. Management
Ideology
Values:
Philosophy
To devote our human resource and technology
to create superior products and services
thereby contributing to a better global society

24. Management
Ideology
• We comply with laws and ethical standards
• We maintain a clean organizational culture
• We respect customers, shareholders, and
employees
• We care for the environment, safety, and health
• We are a socially responsible corporate citizen
Principles

25. Advertisements &
Sponsorship

26. • Samsung realized that success lies in brand
visibility
• Sponsorship increased brand awareness, very well!
• Samsung own many professional & amateur
teams.
• Samsung is a sponsorship of many national teams.

28. • Team Korea
• Team USA
• Team GB
• Team Singapore
• Italia Team
• Sweden Olympic Team
• Belgium Olympic Team
• Australia Olympic Team
• Jordan Olympic Team
• Hong Kong Olympic Team
• Brazil national football team
• England national football team
• Austria national football team
• Olympic Games
• Paralympic Games
• Youth Olympic Games
• IAAF World Championships in Athletics
• FIVB Volleyball Men's World Championship
• FIVB Volleyball World League
• AFC Asian Cup
And many other competition, organization, teams and …

29. Rio 2016
The Olympic Partners (TOP)
TOP totally paid $1.022bn to International Olympic Committee (IOC) for
sponsoring!

30. Samsung war against Apple!

31. 1.Series of ongoing lawsuits between Apple
Inc. and Samsung Electronics.
2.Samsung’s anti-Apple marketing
campaign!

32. Advertisement against Apple!
Commercial Ad for Galaxy S2

33. Advertisement against Apple!
Commercial Ad for Galaxy Note 3

34. Advertisement
against Apple!
Commercial Ad for Galaxy S3

35. Samsung vs. Apple
Marketing Mix Analysis

36. Marketing
Mix
Overview

37. #1
• Apple has continued to expand its products
• Apple products started with “Mac”.
• Main product lines: Mac, iPad, iPhone, Watch, TV, Music.
• Product variety but not such a product range
• Samsung is comprised of more than 78 different companies.
• Main product lines: Galaxy, Gear, TV , Home Appliances,...
• Product variety and product range to address all needs.
• Many more expanded products than Apple!

38. #2
• Apple uses a premium pricing strategy.
• Apple’s pricing involves relatively high prices.
• The pricing helps maintain the high-end image of products.
• But Apple products attract a smaller market share.
• Just middle and upper classes can buy Apple products!
• Samsung uses various pricing because of its different
categories
• Samsung usually use competitive pricing strategy.
• Skimming pricing cause a high value in the start before others!
• Competitive pricing use for products that face more
competition.

39. #3
• Apple uses a selective distribution strategy.
• Mostly in the following places:
• Apple Stores.
• Online Apple Store & App Store (also on Amazon & eBay)
• Authorized retailers such as: Walmart, Target, Best Buy.
• Samsung uses a intense distribution concept.
• 3 Main Segments:
• Sales
• Service dealers
• Modern retail & distributors
• Sales and service dealers also open exclusive Samsung
showrooms

40. #4
• Apple emphasizes the premium image and quality of products.
• Apple’s promotion includes the following elements:
• Advertising (on Apple.com, App Stores and other firms)
• Personal Selling (such as Apple Store employees who provide the
product)
• Sales Promotion (such as exchange offer and modified payment plans)
• Public Relations (such as Apple events)
• Samsung believes that success lies in brand visibility (Huge
ads).
• Samsung’s promotion include the following elements:
• Advertising (on Samsung.com, stores, IT news sites, Instagram, etc.)
• Personal Selling (Help the visitors to make a purchase by employees)
• Sales Promotion (Reduction the price by time, modified payment plans)

41. Brief Comparison
• High price vs. Reasonable price.
• Better design vs. Wide range and variety
• Global network vs. Availability
• Fixed Price vs. Flexible in pricing
• High-end materials vs. High volume
• Higher brand image vs. More promotional
activities
• Patent war vs. Price war

42. Galaxy Note 7 Issue

43. August 19th.
Officially Released
September 2nd.
Suspended sales by Samsung
September 15th.
Formal U.S. recall was announced
October 10th.
Worldwide recall & ceased production
after reporting fire on replacement phones
January 23th.
Reporting the results of research
Batteries had suffered from a manufacturing defect in welding
process

44. Galaxy Note 7 Fail
Consequences
33%Samsung’s Operating Profits down!
in comparison to the previous quarter

45. Galaxy Note 7 Fail
Consequences
$17 bn.Estimating the lost revenue*
Because of production & recall
*: Predicted by Credit Suisse analysts

46. Galaxy Note 7 Fail
Consequences
HurtRecall effect on Samsung’s brand
Cause company lose its market share

47. We are sincerely sorry!
“First of all, I deeply apologize to all of our
customers, carriers, retail, and distribution partners.”
DJ Koh., Head of mobile division

48. • Described about:
• What happened
• Our investigation
• Why it won’t happen again
• “Committed to Quality” as main title
• 96% of Galaxy Note 7s have been returned
• Exchange Program Choices:
• Exchange with another Samsung smartphone
• Obtain a refund at point of purchase
• Eliminates Note 7 ability to work as mobile phone!*
Note 7 Issue Page
*: Because of a released update for customer’s safety!

49. Maybe Sweet
“Galaxy S8”
Will Make You Forget About
Galaxy Note 7!

50. Huge Ads & Marketing
Because of an important product

51. • Advertisement on
Internet
• SWOT Analysis
• Patent Fight
• Social Networks
• Korean Brand
• Financial Situation
• Samsung in Iran
Remaining Issues