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An in-depth analysis of samsung electronics' marketing strategy, focusing on the adoption of the 4ps (product, price, place, and promotion) model. The report discusses samsung's business profile, development history, product strategies, pricing strategies, distribution strategies, and promotion strategies. It highlights samsung's success in implementing this strategy, which has contributed to its market leadership in the consumer electronics industry.
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Banking Academy of Vietnam International School of Business
The adoption of 4Ps by ‘SAMSUNG ELECTRONICS’ in marketing
The adoption of 4Ps by ‘SAMSUNG ELECTRONICS’ in marketing
I. Introduction Marketing strategies are long-term oriented plans for a business's marketing activities, closely related to the business's products, brands, or business models in a fiercely competitive business market (Carmicheal, 2023). Currently, the 4Ps in Marketing are an important marketing model that determines the success of a business. Although currently the letters P in Marketing Mix have been upgraded to 6P, 7P, 15P,... But the starting point and most basic is still the 4Ps in Marketing (Twin). Samsung is known as one of Korea's famous multi-industry trading corporations with a worldwide presence. This is considered one of the largest corporations in Korea and has a great influence on the country's economy. Samsung has successfully applied the 4 Ps strategy and has achieved achievements such as attacking the digital market and always being a pioneer. In digital marketing, with many breakthroughs and smart technology inventions that bring new experiences to users, Samsung has become the 4th most valuable brand in the world and the leading brand in Asia (Evans, 2023). This report has given the basic information on “Samsung Electronics” and evaluated the effectiveness of the SWOT that the company has adopted after analyzing the way they have implemented it. II Heading 1: The Profile of Samsung Electronics 2.1. Kind of business +) Samsung Group or Samsung is a Korean multinational corporation located in Samsung Town, Seocho, Seoul. +) Samsung Electronics is a corporation (2023). +) As of December 2022, Samsung has over 270,372 employees working across its global network and over 230 global bases (Laricchia, 2023) big size 2.2. Development History +) Samsung Electric Industries, established in 1969 in Suwon, South Korea, is a leading global electronics company. +) Founder: Lee Byung-Chul +) Main timeline : ▪ In 1981, Samsung Electric Industries manufactured more than 10 million television sets in black and white per year. ▪ In 2004, Samsung created the first 8Gb NAND memory chip globally, and in 2005, they negotiated a long-term production contract with Apple. ▪ In 2005, Samsung Electronics became the 20th largest consumer brand globally, surpassing Japanese rival Sony, according to Interbrand's measurement.
▪ After surpassing Hewlett-Packard in 2009, Samsung became the largest technological corporation in the world by sales revenue, with a total revenue of 117.4 billion US dollars. ▪ ▪ On December 7, 2021, Samsung Electronics announced that its consumer electronics and mobile divisions will be merging. (Rees, 2021) 2.3. Main business +) The main business is manufacturing electronic equipment. sector +) Samsung has a wide range of products( figure 1) : (Figure 1. Product of Samsung: https://images.app.goo.gl/8BhTLkQ8qPKN1uK9A) +) Samsung Electronics company is present in 74 countries around the world (2024). 2.4. Management board/ organization structure: Figure 2 shows the organizational chart of Samsung Electrics with Lee Jae-Yong as the CEO.
2.5.3. Objectives +) One of the most ethically traded companies in the world. +) Create products and services that bring the most satisfaction to customers. +) Maintain the number one position in the world in the same business industry. +) Samsung Company focuses on producing high-quality products and ensuring they are available globally. With a strong presence in household appliances, such as iron boxes and televisions, Samsung has gained brand loyalty among customers. The company uses the latest technology to deliver environmentally friendly products. For example, when the Note 7 phone was recalled due to safety concerns, Samsung demonstrated its commitment to producing eco-friendly products. This case highlights the company's commitment to producing high-quality, safe products, demonstrating its commitment to innovation and customer satisfaction. 2.5.4. Core values +) People: gives employees many opportunities to maximize their potential. +) Excellence: The goal is to create the most superior products and services available in the market. +) Change: The company should anticipate market needs and desires to guide it toward long-term success. +) Integrity: The foundation of business is essential for its success and growth. +) Co-evolution: commitment to being an environmentally and socially responsible corporate citizen. III Heading 2: Different strategies that the company adopts 3.1: Common theory related to the theory +) Marketing strategy is the fundamental step to increasing sales and having a sustainable competitive advantage. For each business unit, this campaign is considered the marketing plan of the operational unit (Carmicheal, 2023). +) A corporation may successfully impact and satisfy client requirements by using the marketing mix, which is composed of controllable factors and is sometimes referred to as the "4 Ps of Marketing." +) The 4Ps in the Marketing model is a marketing strategy that comprises four fundamental elements: Product, Price, Place, and Promotion (Evans, 2023). 3.2: Analysis Samsung company has adopted this strategy successfully. In detail : +) Samsung currently applies the following product strategies:
Samsung's product strategy puts the requirements of its customers first by providing cutting-edge, varied, and superior goods across several lines, such as Galaxy, Note, and Gear, that meet a range of price points and feature sets Samsung generates revenue through selling acoustic equipment, household appliances, smartphones, information technology, and household appliances, including smartphones, tablets, wearables, and accessories (Evans, 2023). +) Samsung has successfully implemented a successful pricing strategy: Samsung's success in the technology market is attributed to its flexible and diverse pricing strategy, which is based on product and customer targeting The company's success is attributed to its unique pricing strategy, offering affordable products comparable to competitors like Apple, Sony, and LG. Samsung uses a Skimming Price Strategy to protect its market position in product categories by launching newer features at higher prices while reducing prices when competitors introduce similar or better features to avoid losing market share (Evans, 2023). +) Samsung employs a selective distribution strategy, requiring authorization for sales, to ensure: The company employs advertising and marketing strategies to increase brand awareness and introduce new products, such as media advertising campaigns, PR events, and sponsorship contracts The marketing mix case combines physical and online channels for optimal market reach and customer experience, influencing revenues and profits through optimal sales of consumer electronics (Evans, 2023). +) Promotion is an important part of the company’s marketing mix: Samsung's promotion strategy is crucial for building brand image and introducing products to consumers It uses PR and events to introduce new products, strengthen connections with users and business partners, and create buzz for its products. Sales promotion is a strategy used by Samsung in its 4Ps strategy to encourage customers to purchase their latest products, such as Galaxy devices (Evans, 2023). 3.3: Evaluation +) In 2020 Samsung has become Asia's most loved brand for 9 consecutive years.
Reference Carmicheal, K. (2023) 8 steps to create a complete marketing strategy in 2023 , HubSpot Blog. Available at: https://blog.hubspot.com/marketing/marketing-strategy (Accessed: 03 March 2024). Evans, L. (2023) Samsung’s marketing mix: 4P analysis , Panmore Institute. Available at: https://panmore.com/samsung-marketing-mix-4p-analysis (Accessed: 03 March 2024). Laricchia, F. (2023) Samsung Employees Worldwide 2009-2022 , Statista. Available at: https://www.statista.com/statistics/236919/number-of-samsung-electronics-employees- worldwide/ (Accessed: 28 February 2024). Martin, V. (2023) Samsung’s mission statement, Vision Statement & Purpose (an analysis) , Panmore Institute. Available at: https://panmore.com/samsung-corporate-vision- statement-corporate-mission-statement-analysis (Accessed: 28 February 2024). Rees, K. (2021) Origins, growth and success: The history of Samsung , MUO. Available at: https://www.makeuseof.com/origins-growth-and-success-the-history-of-samsung/ (Accessed: 28 February 2024). Samsung Electronics (2024) Wikipedia. Available at: https://en.wikipedia.org/wiki/Samsung_Electronics#:~:text=Samsung%20Electronics %20has%20assembly%20plants%20and%20sales %20networks,270%2C000%20people.%20It%20is%20majority-owned%20by %20foreign%20investors. (Accessed: 28 February 2024). Silver, D. (2023) Samsung in 2023: The users, innovation, and Technology , ironSource. Available at: https://www.is.com/community/blog/samsung-in-2023-the-users- innovation-and-technology/ (Accessed: 28 February 2024). Thông Tin công ty: Về Chúng tôi: Samsung Việt Nam (2023) Samsung vn. Available at: https://www.samsung.com/vn/about-us/company-info/ (Accessed: 03 March 2024).
Twin, A. (no date) The 4 PS of Marketing: What they are & how to use them successfully , Investopedia. Available at: https://www.investopedia.com/terms/f/four-ps.asp (Accessed: 28 February 2024).
