Current Situation Samsungs Position Marketing Essay

Samsungs Position in 2003, was strong as compared to its current situation. Its stock was one of the most widely held between the companies rising on the market as over fifty percent of its shares were beyond Korea, its home country. In 2003, Business week placed Samsung 25th most valuable brand from 34th position in 2002 and with an easy growing brand value compared to its competition Sony.

In the electronics Industry both Samsung and Sony are leading titles so that as the electric industry requires heavy focus on research and development, transitions on market and also to optimize resource chains. New enhancements in technology works the consumer electronic digital industry. Samsung uses its traditional in-house R&D instead of outsourcing techniques it from Business partners as outsourcing copy capital investment has lower risk to others but has high cost, nevertheless the risk involved is lower.

Samsung operates on the virtual integration model which has leveraged all the aspects of the developing process from uncooked- materials to fully constructed products. Keeping the price down from what it would be if being outsourced, Samsung reduced costs further by off-shoring efforts. As in off-shoring a company uses its own investments and locates Business units in places so that it has lower costs of production, for this purpose Samsung has put its plant life in China and India.

Out of the two core marketing sets of Samsung, one in Korea and the other one for remaining world, Samsung consolidated to employ a solitary ensure worldwide brand regularity in 2001. A share of the existing sales of 2003 were set aside for marketing, reallocations were also made to market research to identify if marketing money could be utilized to attain high comes back.



Has an array of products such as mobile phones, camera, home device and other devices.

Enjoys advantage on the few electronic items by producing advanced features in LCD, refrigerator, Air Conditioner etc.

Holds significant market share in many product Categories.

Does R&D to keep innovating its products also to be forward from its rivals and also to be first in the market with new range of products.


Caused product CANNIBALIZATION due to release of group of smart devices.

Lack of product software that it must depend on other companies.

Competitors like SONY and APPLE who've their own products as well as software.

Other Areas of business like Chemicals, Machinery & Heavy Industry, financial Services unknown to the Public.


Continue sponsoring major occurrences like Olympics to be able to pass on brand equity and also to increase sales and slash competition.

Develop its unique software to keep up with rivals and make itself 3rd party from other software focused companies.

Should increase its shelling out for advertising and market its products more.


Recent link up of Yahoo and Motorola where Google has made a decision to sell its software and then Motorola, without its software it is rather problematic for Samsung to survive in future competition.

Increasing competition from APPLE and SONY.

Amount of money spent in R&D for product technology and creation on new and unique products is huge, which other companies save by opposite engineering Samsung's products.

Strategic Brand Management

Brand Building to be able to increase promotional costs and decrease revenues by sacrificing certain products and with the digital trend going on a new opportunity window will there be to dominate gadgets market. Doing so without proper safeguards can cause the business some irreparable damage. The necessity for advertising campaign and promotion is a must for the business to be able to raise the recognition among consumers. Though advert and campaign of Samsung depends on the actions done because of it in this region. Activities carried out by the business can have both negative and positive impacts such as promotional materials designed and developed for one country's market can limit its capability to develop promotional promotions made designed for another market. Samsung's competitive advantages led to unique mating environment for advancement, R&D and the production of new technology should be preserved therefore, new products should be stored in a safe location e. g. in the Korean Headquaters.


Moving from the supplier mentality Samsung should de-emphasize the value of new products, though development of products has brought Samsung great prosperity, Samsung can still make it through on the market by slicing costs put in in R&D of new technology and let the market causes be the driving a vehicle force in the development of new technology.

Training of inside staff in making use of effective marketing as it relates to the areas of Business, especially development. First-hand understanding of the development process should profit the marketing team as they should know very well what a wait in research often means to the project.

Development of an career way in marketing and a formal framework for Samsung employees would show the company a commitment to marketing, which would provide as a recruiter and designer to expand new marketing ability.

Marketing professionals if retained within the set up environment would help Samsung further to continue build consistency using its brand individuality.

Use of interactive marketing such as making of online advertisement campaigns on frequently frequented websites like Youtube, where in fact the viewer can interact with the aid of annotation feature. Where multiple options should get and if the options is chosen then each option should start a new video recording.

Should move its product from price-driven stores to more targeted retailers.


To make the offering of developed products easier the resources should be shifted from R&D to marketing which would increase the come back of R&D spending. Samsung should know that branding is as important as the high quality of the merchandise that Samsung equipment. Collaboration with a Chinese language firm can lessen the labour costs related to creation of legacy products without compromising on the valuable intellectual property.

Samsung besides being together with the Chinese language, cannot ignore that the Chinese can still establish as competitors which can harm their business. Therefore the company should keep a strong focus on preserving its technological leadership by pursuing cutting-edge R&D, especially towards future substitutes for DRAMS. One more way to reduce the probability of development of competition, though more risky and should be used carefully is to exceed new market entrants by cutting down margins on low-end DRAMs. The revenue will not be more but Samsung's name and the construction of their products will push the rivals towards more or less operational losses, at the same time it'll ensure that Samsung it's still in a position to earn on the other products from its huge range of portfolio.

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