Samsung Electronics Company : Global Marketing Operations
Samsung Electronics Company (SEC) was founded in 1969, as a low-cost manufacturer of black and white televisions. Throughout the 1980s, SEC supplied massive quantities such as televisions, VCRs, and microwaves ovens. The company sold their product to original equipment manufacturers (OEMs) that later on will be resold under their big brand name in the industry.
In 1993, the company’s chairman, Lee, was initiated to make “ new management initiative”. In order to reconstruct the company from a “cheap OEM” to a “high value-added products provider”, a strong brand power has to be developed.
In effort to reposition its market to a premium brand, the company must increase the emphasis on marketing. The first effort that the company did was recruiting a Korean-born general manager, Eric Kim, as executive vice president of global marketing in 1999.
Kim’s mission was to develop a strong corporate brand image in over 200 countries and SEC’s 17 product-focused business units worldwide. Kim stressed the importance of viewing the brand as a core strategic asset, “one that needs to be thought of strategically and built over time.” The main purpose was to create a global brand; the Korean origin of the brand was not emphasized.
Segmenting and Targetting
Samsung Electronics operates in one of the most competitive markets of the world. Samsung traditionally had a conservative image that focused on low-price products for the lower end of the market. With low prices it was able to compete in the lower-market whereas in the upper market it had lesser penetration. To penetrate the upper-market Samsung had to focus on innovation and perceiving a higher brand value and gave up their lower-market position. The following is the ST analysis of Samsung products:
One of the fundamental principles of marketing is the segmentation of the market. Segmentation means the splitting of the market