Samsung Case Study
1)
Old/Before
New/After
Known for selling low-cost products to OEMs which resold them under their own brand names
Known for selling high-quality, innovative products under the Samsung brand
Very little value placed on marketing and the importance of branding
Samsung greatly values marketing and it has now become, next to R&D, the largest expense on their books
Unable to attract the best scientists and engineers to work on product development
Samsung spends Billions annually on R&D in facilities in Korea and abroad giving designers and engineers the support needed to produce the latest electronics
It took 14 months to move a product concept from drawing board to commercialization
It now takes only 5 months to move a product concept from drawing board to commercialization refreshing its product line twice as often
Marketing budgets were set as percentage of current sales
Samsung now bases marketing budgets on growth potential using the M-Net program to help determine where to best allocate marketing dollars
SEC were using more than 55 advertising agencies worldwide, along with advertising products using 20 different slogans
Advertising has been consolidated to a single global agency, Foote, Cone & Belding (FCB) to streamline a cohesive brand message across all markets
Little emphasis placed on the importance of consumer research and its relationship to developing new products
Samsung now has a “relationship monitor” to indentify how to best reach consumers and provide them with the products they desire
2)
Samsung furthered their commitment to manufacturing as a core concept by investing billions of dollars into new chip factories and manufacturing facilities
Invested billions of dollars in research and development
Samsung setup new facilities in Indian to take advantage of the low-cost human capital in the technology sector that the country had to offer
Shifted focus from software development to hardware and devices
Created a great
Old/Before
New/After
Known for selling low-cost products to OEMs which resold them under their own brand names
Known for selling high-quality, innovative products under the Samsung brand
Very little value placed on marketing and the importance of branding
Samsung greatly values marketing and it has now become, next to R&D, the largest expense on their books
Unable to attract the best scientists and engineers to work on product development
Samsung spends Billions annually on R&D in facilities in Korea and abroad giving designers and engineers the support needed to produce the latest electronics
It took 14 months to move a product concept from drawing board to commercialization
It now takes only 5 months to move a product concept from drawing board to commercialization refreshing its product line twice as often
Marketing budgets were set as percentage of current sales
Samsung now bases marketing budgets on growth potential using the M-Net program to help determine where to best allocate marketing dollars
SEC were using more than 55 advertising agencies worldwide, along with advertising products using 20 different slogans
Advertising has been consolidated to a single global agency, Foote, Cone & Belding (FCB) to streamline a cohesive brand message across all markets
Little emphasis placed on the importance of consumer research and its relationship to developing new products
Samsung now has a “relationship monitor” to indentify how to best reach consumers and provide them with the products they desire
2)
Samsung furthered their commitment to manufacturing as a core concept by investing billions of dollars into new chip factories and manufacturing facilities
Invested billions of dollars in research and development
Samsung setup new facilities in Indian to take advantage of the low-cost human capital in the technology sector that the country had to offer
Shifted focus from software development to hardware and devices
Created a great