Strategic Marketing Management | MBA

NAME: RAFIA ANWAR
ID: MP-ES21-10011
SUBJECT: STRATEGIC MARKETING
MBA EVE 2021
DATED: 7TH OF MAY 2021

Contents
TITLE........................................................................................................................................................3
Introduction to Samsung:........................................................................................................................3
Products and Divisions.............................................................................................................................3
Market Summary.....................................................................................................................................4
Market Growth........................................................................................................................................4
COMPETITION..........................................................................................................................................5
Situation Analysis....................................................................................................................................6
SWOT ANALYSIS.......................................................................................................................................6
BCG MATRIX OF SAMSUNG.....................................................................................................................8
ANSOFF ANALYSIS……………………………………………………………………………………………………………………………….9
CORE COMPETENCIES..............................................................................................................................9
CONCLUSION:................................................................................................................................10
REFERENCES………………………………………………………………………………………………………………………………………11

“Marketing Audit Report of Samsung Electronics”
In this report we are going to talk about Samsung in general. There will be a short
summary about a company and then situational analysis where our focus will be on
discussing market demographics, needs, SWOT Analysis, market growth. And then
about what it offers and what competition it faces in the market. We will also discuss
their marketing strategy, target market, objectives and then marketing mix of the
company.
Introduction to Samsung:
Samsung is one of the World’s largest producer in production of different consumer and
industry electronics which includes digital media devices, appliances, memory chips,
semiconductors, etc . It is a South Korean Company and produces almost a fifth of total
exports of South Korea. It has become one of the most known names in the world of
technology. The first entry which Samsung made was in 1969 by launching their
products which black and white televisions. And then in 1970s started exporting home
electronics products overseas. In 80s it witnessed a fast expansion of its technology
businesses. Different divisions were created . The development which made Samsung
the leader in information technology services was through establishing Samsung Data
Systems(SDS).
In 2000s Samsung’s Galaxy Phones Series was introduced which became the
company’s most loved and praised product which made the company top the annual
lists of best selling smart phones. Since 2006 Company has been in top selling
producer of televisions since then it Has retained its position till now. and then Galaxy
series got expanded to tablet with the introduction of Galaxy Tab.
The company has enjoyed enormous growth in recent years due to its market leading
position, a good product quality and innovative capabilities. It’s growth has also been
driven by its strong brand image , it’s marketing , product quality and it’s focus on
research and development.
Products and Divisions
Samsung has divided it’s business into operations which consists of four segments.
First division is Consumer Electronics Division, Information technology and Mobile
Communication Division, Harman and Displays-Semi Conductor division.
CE: Products in this division includes TVs, Monitors, Refrigerators, washing machines,
air conditioners, etc
IM: this includes HHps, Network Systems, Computers, etc.
DS: includes DRAM, NAND Flash, mobile Aps, OLED smartphones panels, LCD TV
panels, etc.
Harman: includes Head units, infotainment system, telematics, speakers, etc.
Samsung competitors include Apple, Intel, Sony, Xiaomi, LG electronics, Huawei,
Lenovo Group Limited, Panasonic and Whirlpool.

Market Summary
In Samsung's demographic segment, age is not an important factor, however,
Samsung's main consumers are adults. Samsung products do not target a certain
gender. Samsung's products are geared towards society in general and do not define
their products to the high or low segment of society, it allows anyone to buy their
products at the right price for buyers with high or low purchasing power. Samsung
Electronics has also segmented its market related to consumers' lifestyle and
personality. This detail in Samsung's behavioral segment can create benefits for
Samsung Electronics users, which are targeted differently based on the benefits they
desire to get from Samsung products
Samsung has a great concern about its demographic related issues because according
to them this is the important aspect to focus on. As Population of the world is increasing
so Samsung is making an attempt to reach people and make their products more
accessible for them. The Target Audience for Samsung is from age 15 to 45 ; the ones
who follow the latest technology. In 2020 it was recorded that there were 992.4 million
active Samsung smartphones in the world which claimed almost or more than a quarter
(26.2 %) of smartphone market.
Samsung uses
Multi-segment positioning: Samsung targets more than one sections simultaneously through
offering a few bundles of items and administrations. For instance, there are a few varieties of
Samsung SMART Signage proficient showcases with various sizes, screen goals and
functionalities and at last with various sticker prices. Along these lines, Samsung offers to the
requirements and needs of purchasers with varying monetary abilities.
Imitative positioning: Samsung is known to imitative its fundamental rival Apple in item
in plan, functionalities, also, as advertising system.
Anticipatory positioning. Certain Samsung items, for example, portable picture sensors
right now have low turnover. However, these item have been created with the
expectation that the turnover will increment later on.
(Dudovskiy, 2017)

Market Growth: Even as the COVID-19 pandemic continues around the world,
reopening of key economies led to significant increase in consumer demand. Samsung
Electronics was able to respond aggressively through flexible global supply chain
management (SCM), The third quarter results of 2020 reporting its highest-ever
quarterly revenue. Quarterly operating profit rose 52 percent from the previous quarter,
thanks to a boost in demand for smartphones and consumer electronics as well as
efficient cost management. Third-quarter operating profit was also 59 percent higher
year-on-year on stronger sales of memory chips and consumer products.
The Mobile Communications Business is likely to see smartphone sales decline and
marketing costs increase due to competitive market environment. In Consumer
Electronics, profitability is expected to weaken on growing competition and rising costs,
despite solid demand.
For 2021, the Company expects a recovery in overall global demand but uncertainties
will remain over the possibility of recurring epidemic waves of COVID-19.
Situation Analysis
In situation analysis we are going to analyse company’s internal and external
environment which will help us in understanding companies core capabilities, it’s
customers and the business environment and also their impact on the company.

Samsung is considered as like one of the best organisations that are manufacturing
smart phones around the world and also they are main producers For the tablets. To
retain its long term growth Company must stay competitive. If we talk about smartphone
industry it is really facing an intense competition where the top six brands almost enjoy
80 percent of market share together.Based on the number of total shipments Samsung
and Huawei are two largest brands in this industry followed by Apple. These three
companies rule the smartphone market globally.
SWOT ANALYSIS
Primary Strengths of Samsung are:
Brand image: is a huge strength for the players in the cell phones and consumer
electronics industry. Samsung has figured out how to assemble a solid picture in the
worldwide market. It is among the biggest cell phone brands on the planet.
Notwithstanding, its fame and market position are a consequence of the organization's
extreme spotlight on item quality and mechanical development. Aside from the
extraordinary exhibition, Samsung items including cell phones and other hardware items
are known for their incredible plan and by and large quality. To develop its client base
and draw in an ever increasing number of new clients, the organization puts resources
into showcasing just as innovative work.
Market Position: The South Korean organization held a market share of around 22% in
the cell phone industry in 2019. Consistently, it sold in excess of 290 million cell phone
units around the world. Be that as it may, Samsung's strength isn't restricted just to the
cell phone or TV market yet all things being equal, the organization additionally stands
firm on a solid foothold in the tablet just as semiconductors and presentations industry.
Aside from that, the organization is additionally the biggest vender of NAND streak
memory where it held a piece of the pie of over 31% during the second quarter of 2020.
Samsung is additionally appreciating a solid situation in the worldwide semiconductor
market.
Research and Development:
In 2019, Samsung has spent almost 20 Trillion KRW (around 16.8 billion USD) on
research and innovation.
While the organization is one of the top spenders on innovative work in the whole
business, its emphasis on development likewise demonstrates its devotion to quality.
On the off chance that the Galaxy scope of cell phones and tablets is administering the
market, it is fundamentally in light of the fact that Samsung is a profoundly creative
brand. Mechanical advancement isn't only a piece of Samsung's business technique yet
additionally a piece of its authoritative culture. There is an exceptional contention for
market share in the cell phone industry. Samsung, yet different parts in the worldwide
market including Apple, Huawei, Xiaomi, and a few more that incorporate both of all
shapes and sizes players are likewise zeroing in intensely on development.

Global Leader in televisions and LCD Displays: In March 2020, Samsung shared an
infographic glancing back at how the organization has made considerable progress as
far as TV developments. From 2006 to 2020, it has kept on holding its position and
continued bringing new items that clients can experience passionate feelings for.
Regardless of whether the piece of the pie of the organization in the broadcast business
has declined lately, it actually stands firm on the prevailing situation.
WEAKNESSES
Decline in revenue and profits: Since 2019, the net income and benefits of Samsung
have been declining consistently. Its income and working benefit declined in 2019
contrasted with the earlier year chiefly as a result of more fragile execution across its
memory specialty units and LCD show board units.
Dependence on US market:
A huge piece of Samsung's income comes from the United States market. The
organization has additionally kept a solid situation in some more business sectors. Be
that as it may, monetarily talking, the US market matters a ton for Samsung. Contrasted
with the United States, Samsung appreciates a lot more modest piece of the pie in the
principal significant market for cell phones – China. Thus, it leaves Samsung reliant
upon the United States mostly for its income.
Dependence on Low-end Smartphones – A huge bit of Samsung incomes come from
low-end cell phone deals. Recent occasions have affected this fragment more than the top
of the line cell phone segment, which played a part in Samsung's decrease from 71 million
cell phone deals and 19.1% of piece of the pie in Q1 2019 to 55 million cell phones sold in
Q1 2020 with 18.5% of piece of the pie (according to Gartner Report).
(Samsung SWOT Analysis 2020 | SWOT Analysis of Samsung, 2020)

Opportunities and Threats
HR Management: Samsung can make amazing groundbreaking achievements in the event
that it put resources into its HR the board. In addition to the fact that it would be useful for its
deals yet it will likewise give it serious influence over its competitors. The organization can
use its brand image and recruit exceptionally qualified and gifted workers to improve
employee performance and profitability.
Innovative Products – The smartphone area is profoundly dynamic, with the most recent
patterns becoming out dated in a moment. Samsung can achieve enormous development
by starting the trend with extraordinary and creative items like the foldable telephone.
5G Technology – As the world is moving to 5G, Samsung has the ability and capacity and
know-how to make full use of this opportunity. The organization is as of now in dynamic
business conversations with administrators in the EU to supply 5G and 6G organization
gear. Samsung is one of the top organizations in the UK's rundown of potential 5G
suppliers.
Diversification and Acquisitions – It is important that Samsung dodges the slip-up of
being restricted to only one commercial center. It welcomes hazards from a financial
viewpoint, yet it additionally draws in undesirable political polarization and negative media
exposure. That is the reason there is a business vacuum present in the Asian and
European economies in which Samsung can flourish.
THREATS include:
Increased Competition –
Rivalry from opponents particularly from those inside the consumer electronics, cell phone
items, and computing businesses has arrived at a record high. Regardless of whether it's
Xiaomi, Apple, or Huawei, every one of the mechanical contenders are outsmarting and
beating each other to turn into the best innovation organization. This lone builds the
pressing factor for Samsung in both rivalry and funds.
Economic Uncertainty – recent occasions have catalyzed vulnerability in the worldwide
market and prompted a decrease in new cell phone deals by 20.2% in Q1 of 2020.
Monetary battles have constrained numerous shoppers to look for reused or repaired
telephones, which has expanded by 24%. Samsung has effectively encountered a decrease
in deals, and it can drop further if vulnerability perseveres.
Legal and Regulatory Threats – As world becoming more globalized and digitally oriented,
governmental have begun issuing their guidelines which have brought the legal and
regulatory threats to firms around the globe. Samsung has no immunity to these rules.
(Pratap, September 26, 2020)
BCG MATRIX OF SAMSUNG

Cash Cows:
Businesses that comes in this category have a large market share that carries high
sales for the organization. Home appliances which include Samsung AC’s,
Refrigerators, Washing Machines and Cooking Appliances comes in Cash Cows
category for the company.
Stars:
Samsung Mobile phones, Tab, and TV business are ones that comes in the Stars
category for the brand. Such products have a high market share in a very high growth
market. Investment in smart tvs as it has a huge demand it can bring long term profit for
a company.
Question Marks:
For Samsung, its the Samsung Smartwatch product which can be included as the
Question Mark cateogry. Launched with much fanfare, which failed to create the magic
that the company expected for.The small market share obtained by the organization
makes the future viewpoint for the product undefined, therefore investing in such
products is seen as a high-risk decision.
Dogs:
products that are seen as having the potential to grow but however failed to create a
difference due to the slow market growth. For Samsung their product Printer comes in
this category or we can say decline in Tv business due to the small demand from
different countries.
ANSOFF ANALYSIS
Market Penetration:
Market infiltration is completed by Samsung at whatever point it advances its current items in its
current business sectors. The principal methodology that Samsung applies is offering limits or
basically bringing down costs. Samsung does this a couple of months before it is going to
dispatch another form of the item. This system assists with expanding portion of the overall
industry, increment deals, and dispose of the stock of the item prior to dispatching the new form.
The organization additionally advances expanded use by offering items in various variations,
accessories to go along with the products, programming refreshes, etc. The synchronous
dispatch of items across all business sectors likewise builds passage boundaries for rivalry. The
organization likewise frames vital collusions with nearby brands to advance items. Samsung is
additionally known to forcefully advance its items through all conceivable marketing stations like
TV advertisements, web-based media promotions, and print media promotions.
Market Development: At whatever point Samsung dispatches its current items in new business
sectors, it is building up its market. Samsung does this in various manners. The essential path is
to grow geologically into new business sectors. These incorporate countries that it has not taken
advantage of yet and extension inside countries that it is as of now in. The organization makes

appealing bundling of its items when it dispatches them in new business sectors.
Simultaneously, the organization publicizes its items with the assistance of neighborhood
superstars and athletes when going into new business sectors to make a brand notoriety and
unwaveringness among clients. The organization likewise utilizes different appropriation
channels, for example, retail deals, online deals, etc. It needs to value its items as indicated by
the nearby money which is an extraordinary worry for the organization as it estimates its
incomes as far as US dollars (Saxena, 2019). However, in spite of this being a dangerous
endeavor, Samsung has seen achievement in different worldwide business sectors it has
ventured into boosting its incomes.
Product Development:
Samsung customer electronics division is the market chief in item improvement.
Dissimilar to Apple that works just a solitary cell phone model, Samsung works various
cell phone models and consistently dispatches new forms of these items that offer
improved capacities and particulars. This is additionally material to different divisions
like development apparatus, home machines, and theater setups. The organization
does extensive research and development to make new items that offer uncommon
usefulness and sturdiness. Samsung additionally improves the current items it offers by
dispatching somewhat various variations of the all around existing items to make new
items. The organization dispatches new items steadily across its different business
sectors. This permits the organization to exploit more prominent deals and incomes
related with new items.
DIVERSIFICATION:
Its extensive product portfolio of various enterprises shows that Samsung has not restricted
itself to flat broadening (Martin, 2019). It has ventured into random businesses different
occasions and succeeded. The organization does itemized examination and spots ventures with
development potential and enters them. This permits the organization to serve more noteworthy
business sectors and offer different items and administrations. The name Samsung is related
with various items and lines that may even befuddle clients that need information. The assorted
portfolio isn't seen regularly in different brands.
(MARTIN, 2019)

In terms of marketing, Apple is a lot ahead of Samsung or any other brand in the
smartphone industry. However, Samsung is also investing in marketing to grow its
influence. It mainly uses digital marketing channels for the promotion of its products.
Apart from paid online promotions, the company uses social media to run marketing
campaigns and to promote its smartphones before the public.
CORE COMPETENCIES
Core Competency Valuable Rare Inimitable Organized Implications
Brand Image Yes Yes Yes Yes Competitive Advanta
Customer Experience Yes Yes No Yes Temporary Advantag
Product Range Yes Yes Yes Yes Competitive Advanta
R&D Yes Yes Yes Yes Competitive advantag
Market Position Yes yes No Yes Temporary Advantag
Marketing Yes No No Yes Temporary Advantag
Supplier Network Yes Yes No Yes Competitive Advanta
Customer loyalty Yes Yes No Yes Temporary Advantag
Service network Yes Yes No Yes Temporary advantag
CONCLUSION:
In spite of more fragile cell phone deals in the initial two fourth of FY 2020,
Samsung has kept on holding a ton of its development energy. Its absolute income
during the principal quarter of 2020 was 7.6% lower than the last quarter of 2019,
chiefly because of the powerless irregularity of its showcases and consumer
electronics businesses and the impacts of COVID-19. as request began flooding all
around the world in May since the returning of basic economies, it helped balance
a portion of the impacts of COVID-19. The outcome was that Samsung's income
developed more than anticipated. While the quarterly working benefit of the
organization during the second quarter of 2020 remained KRW 8.15 Trillion, net
deals were KRW 53 Trillion.

References
BCG matrix of Samsung. (January 20, 2018). Blog.
Dudovskiy, B. J. (2017). Samsung Segmentation, Targeting and Positioning: multi-segment, imitative and
anticipatory. Business Research Methodology.
MARTIN, V. (2019). Samsung’s Intensive Strategies for Growth (Ansoff Matrix). http://panmore.com/.
Pratap, A. (September 26, 2020). Strategic Analysis of Samsung. Notesmatic.
Samsung SWOT Analysis 2020 | SWOT Analysis of Samsung. (2020). BUSINESS STRATEGY HUB.