Samsung - PRINCIPLES OF MARKETING CASE STUDY
CBEB 1106 : PRINCIPLES OF MARKETING CASE STUDY
: FROM GALLOP TO RUN
PREPARED FOR: PROF. DR MD. NOR OTHMAN
GROUP MEMBERS: SITI NUR AMIRA BINTI ZAMANI CEA110138
NUR HIDAYAH BINTI ZAINAL
SEF080022
INTRODUCTION
The Samsung Electronics Group is part of the South Korea’s Samsung Group, largest conglomerate corporation founded in 1938. Samsung Group also owns the world’s second largest shipbuilder, a major global construction, and the largest life insurance company in Korea and it’s headquarter was located at Samsung Town, Seoul, South Korea. Under the direction of Lee Kun Hee, CEO and chairman of the third son of founder Lee Byung Chull, Samsung Electronics has made major stride. In 1993, Lee unveiled what he called ‘new management’ a top-to-bottom strategy for the entire company. Then, his goal is he wanted Samsung to become a premier brand that would dethrone Sony as biggest consumer electronics firm in the world. • The company hired a new crop of fresh, young designers who unleashed a torrent of new products – not humdrum, me-too products, but sleek, bold, and beautiful products targeting high-end user. Samsung called them “lifestyle works of arts”. Every new product had to pass the “Wow!” test, if it didn’t get a “Wow!” reaction during market testing, it went straight back to the design studio. The company also altered distribution to match; it abandoned low-end distributors like Walmart and Kmart, choosing to build strong relationships with specialty retailers like Best Buy and Circuit City.
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Moreover, in less than 2 decades, Samsung Electronics has achieved its lofty goals- and much more. For instance, Samsung succeed as the world’s fastest growing brand over one fiveyear period, largest consumer electronics company in the world, largest TV manufacturer, second largest cell phone producer, world largest technology electronic components company and also world’s largest manufacturer of flash memory. Then, Fast Company and BusinessWeek
: FROM GALLOP TO RUN
PREPARED FOR: PROF. DR MD. NOR OTHMAN
GROUP MEMBERS: SITI NUR AMIRA BINTI ZAMANI CEA110138
NUR HIDAYAH BINTI ZAINAL
SEF080022
INTRODUCTION
The Samsung Electronics Group is part of the South Korea’s Samsung Group, largest conglomerate corporation founded in 1938. Samsung Group also owns the world’s second largest shipbuilder, a major global construction, and the largest life insurance company in Korea and it’s headquarter was located at Samsung Town, Seoul, South Korea. Under the direction of Lee Kun Hee, CEO and chairman of the third son of founder Lee Byung Chull, Samsung Electronics has made major stride. In 1993, Lee unveiled what he called ‘new management’ a top-to-bottom strategy for the entire company. Then, his goal is he wanted Samsung to become a premier brand that would dethrone Sony as biggest consumer electronics firm in the world. • The company hired a new crop of fresh, young designers who unleashed a torrent of new products – not humdrum, me-too products, but sleek, bold, and beautiful products targeting high-end user. Samsung called them “lifestyle works of arts”. Every new product had to pass the “Wow!” test, if it didn’t get a “Wow!” reaction during market testing, it went straight back to the design studio. The company also altered distribution to match; it abandoned low-end distributors like Walmart and Kmart, choosing to build strong relationships with specialty retailers like Best Buy and Circuit City.
•
•
Moreover, in less than 2 decades, Samsung Electronics has achieved its lofty goals- and much more. For instance, Samsung succeed as the world’s fastest growing brand over one fiveyear period, largest consumer electronics company in the world, largest TV manufacturer, second largest cell phone producer, world largest technology electronic components company and also world’s largest manufacturer of flash memory. Then, Fast Company and BusinessWeek
References: Phillip, K. & Gary, A. (2011). Principles of Marketing. England: Pearson Education Limited. Wikipedia. (2011, October 30). Samsung: Retrieved from http://en.wikipedia.org/wiki/Samsung