Samsung Case Study
Case Study - III
Samsung – The Making of a Global Brand
Q. No 1. By 2002, Samsung was rated as one of the top 3 players in the global mobile handset market. Analysts attributed Samsung's success to its marketing initiatives. Discuss the role of marketing in Samsung's success.
Answer:
Samsung's vision was to become the leader in the emerging digital convergence era, which is defined by two trends: combining different technologies in one product, and linking multiple technologies through one network.
Samsung made a huge transition from being primarily a low-end hardware manufacturer, focused on the business-to-business market, to a high-end manufacturer focused mainly on the business-to-consumer market.
Many consumers associated Samsung product with poor quality. To change this perception of its product the company initiated a process of restructuring with careful study and changes in the marketing mix as follows:
Product
The company changed its strategy from lifestyle segmenting instead of technological segmentation. Samsung did an extensive market research and manufactured products that reflected their lifestyle instead of those that had specific technological features. Using lifestyle segmentation, the company divided the market and positioned its products.
It carefully focused on the following attributes of product:
Quality: Company emphasized in creating quality product to change the existing image of the product in the market. They implemented various quality initiatives such as Six Sigma and manufacturing initiatives such as assembly manufacturing to enhance output through optimal utilization of resources.
New Product Development: Innovative and technologically superior products were introduced. It developed innovative products (considered fun and high end products) for the mobile phone sector in accordance with customer preferences in local market.
Samsung also launched a 50-gram phone, which was said to be world’s lightest phone. It could
Samsung – The Making of a Global Brand
Q. No 1. By 2002, Samsung was rated as one of the top 3 players in the global mobile handset market. Analysts attributed Samsung's success to its marketing initiatives. Discuss the role of marketing in Samsung's success.
Answer:
Samsung's vision was to become the leader in the emerging digital convergence era, which is defined by two trends: combining different technologies in one product, and linking multiple technologies through one network.
Samsung made a huge transition from being primarily a low-end hardware manufacturer, focused on the business-to-business market, to a high-end manufacturer focused mainly on the business-to-consumer market.
Many consumers associated Samsung product with poor quality. To change this perception of its product the company initiated a process of restructuring with careful study and changes in the marketing mix as follows:
Product
The company changed its strategy from lifestyle segmenting instead of technological segmentation. Samsung did an extensive market research and manufactured products that reflected their lifestyle instead of those that had specific technological features. Using lifestyle segmentation, the company divided the market and positioned its products.
It carefully focused on the following attributes of product:
Quality: Company emphasized in creating quality product to change the existing image of the product in the market. They implemented various quality initiatives such as Six Sigma and manufacturing initiatives such as assembly manufacturing to enhance output through optimal utilization of resources.
New Product Development: Innovative and technologically superior products were introduced. It developed innovative products (considered fun and high end products) for the mobile phone sector in accordance with customer preferences in local market.
Samsung also launched a 50-gram phone, which was said to be world’s lightest phone. It could