Samsung SECA has successfully repositioned itself from an unremarkable producer of low-to-mid-market customer electronics and computer components into a provider of stylish, leading-edge consumer electronics due to its shift towards digital technology. Despite efforts to redefine the Samsung brand which included aggressive promotional spending and launching of a number of high-end, “marquee” products, the old brand perception of the Samsung brand is still there. Hence Samsung was continuing to sell a number of lower-end products using the old brand positioning. J.S. Park, the president of SECA needed to develop a plan or branding strategy in order to reinforce the presence of ‘Samsung redefined brand’ into the upper group of customer electronics. 2.Situation Analysis
The SWOT analysis as shown below captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing Samsung. STRENGTHS
1.Speed in decision making process
3.Expertise in digital electronics
4.Wide range of products
5.High R&D investment
6.Good marketing strategies
1.Impact on revenue from sales after giving retailers profit margin 2.Disregard certain product line due to heavy focus on successful product line OPPORTUNITIES
In the Canadian electronics market :
1.Less price sensitive
2.Demand for good customer service
3.Favourable return policies
4.Highly technically savvy
5.Quick to adopt new technologies
6.3rd highest broadband usageTHREATS
1.Dominance from main competitor, Sony
2.Acquisition of Future Shop by Best Buy
3.Competition from Korea, Chinese, Japanese and European electronics company
3.Customer Behaviour Analysis
Canadian electronic markets are less price-sensitive. They perceive high-priced products as high quality products. They also demand for good customer service and favourable return policies. They are also quick to adapt to new technologies because they are technically savvy. Canada has the 3rd highest broadband users in the world. 4.Competitor Analysis
Sony is the main competitor in the range of electronic appliances. In terms of products, Sony is the pioneer in colour televisions and Walkman, the portable audiocassette. Sony is charging at a premium price to reflect their high value of brand in terms of quality. Sony has a reliable nationwide retail channel in Canada. However, Samsung may take advantage of the fact that Sony has design and manufacturing expertise in products that appear to be on the verge of extinction like conventional televisions and CRT displays, portable CD players and home stereo systems.
In terms of Strategic Planning, SECA should decide on the segmentation, target market and positioning of their products especially the digital electronics products which are related to Samsung redefined brand. a)By using the demographic and psychographic-based segmentation, SECA may divide the market into four types segmentation which are : •High-income families – less price-sensitive who seek for high quality products and favour new and innovative offerings in the market. •The Young Generation - technically savvy and favour new and innovative offerings in the market. •Business users – less price-sensitive who seek for high quality products that can facilitate and enhance speed in doing business. •Hobbyists - technically savvy and favour new and innovative offerings in the market.
b)The Points of Parity (POP) of Samsung is technology driven products. Samsung offers the same range of products as other competitors such as Sony and Panasonic.
c)Points of Difference (POD) of Samsung should be emphasized as Innovative and easy to use. POD is the features or attributes that differentiates Samsung products from other brands.
d)From POP and POD, SECA can position the value of...