Samsung Case Study

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1. Identify and discuss the core marketing concepts that Samsung has adopted to shift its competitive edge.

✓ Need, Wants, and Demands

Samsung always try to develop products that fit their customers’ lifestyle by studying their tastes. Samsung focus finding out what’s likely to sell before consumers even know they want it.

✓ Target Market, Positioning, and Segmentation

Samsung focus on design, as they want to be the Marcedes of home electronics. Samsung concentrate less on cost saving and more on coming up with unique products.

✓ Offering and Brands

Electronics, Good Design, Unique, Affordable Price

✓ Value and Satisfaction

Samsung is very committed to research as they listen to the feedback on their new products/models. They also try to make sure consumers get maximum value for an affordable price.

✓ Marketing Channel

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✓ Supply Chain

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✓ Competition

In the analog age, Samsung devoted most of its energy trying to catch up with Japanese leaders, but the arrival of digital put everybody on the same starting line. However, the rivals, whether newcomer or veteran, aren’t standing still.

✓ Marketing Environment

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2. Discuss the role of consumer research in guiding Samsung’s initiatives in designing new products.

It’s very critical.

✓ At the very beginning phase, studying the customers’ taste (how they actually use products) guide Samsung to develop products that fit their customers. It helps them to focus on finding out what’s likely to sell before consumers even know they want it. Samsung also send the designers abroad to spend few months at fashion houses, cosmetics specialists, or design consultancies to stay current with the latest trends.

✓ Through the usability laboratory, many designers sit in on focus groups and watch closely as potential customers provide feedback on their new models. The complaints they get is very important as it will be used for improvements when it came time to upgrade the products.

✓ In the past two years, the VIP center’s primary aim has shifted to “creating new value for customers” which means find that perfect balance of cost, innovation, and technology that makes a product great. By figuring out what consumers want in a product, it helps Samsung to designing product in the manner where the consumers get maximum value for an affordable price.

3. Why has the Samsung brand increase in value more quickly than other consumer electronics brands?

Samsung concentrate less on cost saving and more on coming up with unique products. Samsung believe good design is the most important way to differentiate themselves from their competitors. However, we believe these five strategies is the key of Samsung’s increasing brand:

Focus on design

✓ Moved its local design center from sleepy Suwon to capital Seoul to attract younger and better designers;

✓ Hired US design firm IDEO to help develop a computer monitor – and made other collaboration with IDEO and other consultancies;

✓ Set up the Innovative Design Lab of Samsung;

✓ In the past four years, Samsung has doubled its design staff;

✓ Since 2000, its design budget has been increasing 20% to 30% annually

Adoption to changes (external)

✓ Sending designers abroad to spend few months at fashion houses, cosmetics specialists, or design consultancies to stay current with what’s happening in other industries;

✓ Open design center in other countries to keep an eye on new trends

Flexible and eager to change (internal)

✓ The designers have broken through the barriers of Korea’s traditional Confucian hierarchies;

✓ Giving designer more power to influence not just how products look but also what gets built – and even made the post of Chief Design Officer

Good internal communication

✓ Even though it is hard at the beginning, but the engineers and the designers can work together...
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