Samsung is one of the world’s premium electronics manufactures. The estimated value of Samsung brand had risen from US$6.37 billion in 2001 to US$10.85 billion in 2003. A major factor behind this impressive growth had been Samsung’s effort to redefine itself as a vendor of cutting-edge, “gee-whiz” consumer technology. Samsung believed that repositioning the brand is a vital to the company’s future success. While the Samsung had become more familiar and more favorably regarded among consumers, it still carried many strong associations with the company’s past, when Samsung’s consumer product line consisted primarily of low-to mid-range products sold at affordable prices via a hodgepodge of retail channels. Largely for this reason, many North American and European consumers still saw the company as a follower rather than a leader in bringing new consumer technologies to market. So that senior executives in Samsung’s head office believed that much work remained to be done in their effort to redefine their brand. 1.2. Business/Industry Situation
What’s Samsung facing today is how to increase the level of quality brand of Samsung, including the prices and products, and the best distribution that can help brand-building of the company. Now Samsung faced several situations in order to enhance brand-building, especially in Canada. Samsung has been known as a big electronics company, has a reliable quality product at an affordable price for the low-to mid-range society. Why Samsung chose to expand into Canada? Because Canadian market was highly fragmented and the buyers were price sensitive. Canadian electronic buyers also placed a great deal of emphasis on good customer service and favorable return policies. External :
In the 1990s, the consumer electronics industry was rapidly and dramatically transformed by the emergence of digital technology. Digital products tended to produce higher quality sound and pictures enabled convenient interfacing with personal computers and the Internet. By the turn of millennium, a barrage of digital consumer product were being introduced, including MP3 audio players, digital cameras, PDAs, digital mobile phones, HDTV sets, DVRs and LCD computer monitors. 1.3. Competition Situation
From the 1960s until the early 1990s, consumer electronics were generally analog, a mature technology that was characterized by a steady flow of minor, incremental innovations. These were usually introduced by Japanese companies, such as Matsushita Electric (Panasonic), Sony Corporation, Toshiba Corporation, Japan Victor Corporation (JVC) and Hitachi. Of these, Sony was generally viewed as the most successful, and was recognized as having the most valuable consumer electronics brand in the world.
In addition to lacking a strong competitive edge in designing and manufacturing digital products, these firms also lacked some usual marketing advantages. Most early adopters of digital products were teenagers and young adults in their 20s – a group that was often skeptical of large corporations and receptive to products from nontraditional brands. Samsung management, which had first begun to market consumer electronics under its own brand in the mid-1990s, perceived a golden opportunity, and resolved to become the leading global provider of next generation consumer electronics products. Samsung have made good progress but their unaided awareness and brand loyalty are still below Sony. 1.4. Problem Definition
Samsung wants to become as strong market leader. It means that they want to establish Samsung as a premier consumer brand. To achieve this there would be many obstacles such as: * How Samsung reposition their brand to become a market leader? * What changes should be made to Samsung’s marketing mix?
2.1. Marketing Mix Theory
Marketing mix is a general phrase used to describe the different kinds...