Product Life Cycle Management and Samsung

Topics: Product life cycle management, Mobile phone, New product development Pages: 6 (1454 words) Published: April 25, 2014


Name: Tajdar Hasan Khan
ID :20789
Course: Principles of Marketing
Time:Wed ( 3pm to 6pm )
Teacher:Mr Waqas Rana
Research:Case Study
Title:SAMSUNG ( From Gallop To Run )

QUESTION AND ANSWERS

Q1.How was Samsung able to go from copycat brand to product leader?
There are three main factors that lead product to be cutting edge product. That comes under LEE’S “new management” top to bottom strategy for the entire company. The goal he wanted Samsung to become a premier brand that would dethrone sony as the biggest consumer electronics firm in the world. Factors that used under “new management” are:

1. New Product Development.
2. Product “Test Marketing”.
3. Positioning and commercialization

New Product Development:
Hired a new crop of fresh, young designers who unleashed
a torrent of new products.
Not humdrum, me-too products but sleek, bold and beautiful products targeting high-end users (“lifestyle works of art”)
Samsung concentrates on the development of new products, product improvements, product modifications, and new brands through their R&D effort that let them

Product “Test Marketing”:
Every product had to pass the “Wow!” test, if it didn’t get a “Wow!” reaction during market testing, It went back to the design studio

Making Samsung conducts integrated test of product and its entire marketing program-targeting and positioning strategy, advertising, distribution, pricing, branding and packaging, and budget levels

Providing management the information needed to make a final decision about whether to launch the new product or going back to studio.

Positioning And Commercialization:

As a part of Samsung’s revamped strategy and positioning, along with developing stylish and innovative new products, the company altered distribution to match. Working with specially retailers like best buy and circuit city Samsung was not el cheapo products any more.

Q2.Is Samsung’s product development process customer centered? Team based? Systematic?

Samsung’s product development process was compiled by all 3 in different aspects and circumstances. They approached customers to determine need and wants then developed team to give those want a face of reality and then developed system to work on it. It is defined below in detail:

Samsung’s use of customer centered product development process:

Samsung revenue (2009) rang up to $117 Billion with profits $8.3 Billion that resulted from consumer satisfaction towards Samsung products.

Samsung’ product had satisfied customers need by providing high-end products such as Samsung Luxia TV’s that has 55 inch size and 49 pounds weight to ease the customer adjusting it wherever they want to move.

Samsung’s use of Team Based product development process:

Samsung hired a new team of young and creative designers who unleashed a torrent of new products.

Use of WOW reaction test to take out put as consumer thoughts about the product

Used top to bottom strategy to combine customer centered approach with team to bring out an out class an competitive product in market.

Samsung’s use of systematic product development process:
Product development process should be systematic as it helps in creating more innovative ideas, compare to departmentalizes approach.

Q3.Based on PLC, what challenges does Samsung face in managing its high tech products?

After a success of 17years and achieving its goals Samsung LEE admitted that their world leading brand and products may obsolete form market in next 10 years. So as being a reformer he again to retain in market and to lead the world of electronics, designed a new strategy “MABULJUNGJE” a Chinese axiom which means “ Horse That Does Not Stop”

Current Condition:
Now its not a time to b complacent but a time to run Samsung unveiled a $23billion investment plan, to insure that this is the company that develops high tech products.

PLC Stage 1(Product Development):
:...
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