Samsung Electronics: Global Marketing Operation Case Study Analysis

This case study analyzes the global marketing operations of Samsung Electronics, exploring the key challenges the company faces in a competitive market. The study identifies issues such as increasing competition from regional brands and rapid changes in the mobile industry. It presents two alternative solutions: a product differentiation-focused strategy and a rebranding strategy. The case study evaluates these alternatives through qualitative and quantitative analysis, including a review of Samsung's historical performance and consumer perceptions. The analysis concludes that a product differentiation strategy, implemented using the SMART framework, is the most viable approach. This involves identifying emerging markets, advertising differentiation, creating experiential marketing, and value-based pricing. The case study highlights the importance of innovation and market adaptation for Samsung's continued success in the global market.

Running Head: Samsung Global Marketing Operation 1
Samsung Global Marketing Operation

Running Head: Samsung Global Marketing Operation 2
Introduction to the Case
This is a case study discussion of Samsung Electronics Limited where we will look at the key
issues and challenges that Samsung has been facing over the period of time in its global
operation.
The purpose of this case study to provide answers to the question of “How can Samsung be a
successful global brand?” The case study analysis includes discussion on existing issues and
challenges, solutions available for the challenges, selection of the best possible challenge and
finally development of strategies to implement the solution.
Key Issues or Challenges
Samsung Electronics ranked as NO.1 Valuable brand in 2003 by Business Week’s annual
magazine. Samsung is among few entities all over the world who has market valuation $300
billion USD. It is also the only South-Korean company to be listed in Top 100 brands of the
world. The company covered the journey of making black and white television to smart
phone, smart watches and many Artificial Intelligence (AI) elements. This company also
offers other electronic items such as refrigerator, oven, computers, VCRs etc. it has gone for
diversification for expanding its operation. (Baloh et.al,2008)
When an organisation goes for expansion, certainly some issues and barriers will fall in place.
The challenges may be with respect to product, service, operation, marketing, human
resource, environmental pollution, technological limitation etc.
For Samsung, currently these are some of the key challenges they are facing to compete in
market-

Running Head: Samsung Global Marketing Operation 3
In international market, the regional competitors are taking market shares of the company and
rapid changes and market penetration of mobile industry.
Justification-
The first challenge is majorly because of growth of Chinese and other regional mobile brands
such as Oppo, Huawei, Asus, Apple, Vivo, Motorola etc. As the countries are looking for
keeping the revenues in homeland, they have started promoting inland product and services
than outsourcing, this is bring more and more mobile and electronic companies to start their
operation and then go for global expansion. It is making buyer’s bargaining position stronger
to force Samsung to keep the profit level as lower as possible.
Alternative solutions
Alternative Solution-1-Product Differentiation focused strategy
Samsung traditionally was having cost focused strategy where the minimisation of cost was
given more importance than anything else. Then, the motive was to sell the best quality
product at lower or the best in industry but in future the strategy will shift to product
differentiation strategy.
Product differentiation strategy is a generic strategic that aims at making differentiation in
product and service offerings for the market. The differentiation is not only the added
features but also includes disruptive innovation or radical innovation in the existing industry.
(Moon et.al,2011)
Pros of the alternative-1-

Running Head: Samsung Global Marketing Operation 4
 Product differentiation will help the customers to locate identifiable difference in the
existing offering. Differentiation may fulfil the latent need of society people.
 Differentiation if noticeable and understandable, it will give economic benefit to the
company as consumer won’t hesitate to pay more for a new or improved product or
service.
 Differentiation focused strategy covers the scope for mass customisation that will lead to
apply new technological solution for upgrading or bringing new product.
Cons of the alternative-1
 Since the company is dealing with electronic components, differentiation identification
may not be found by regions having low level digital literacy.
 Government may pose restrictions on sale of such product in own region due to fear of
market loss of local brands (China most probably)
 Copying technology is a trend in technology market by showing minor difference.
Alternative-2- Rebranding
As per the Company’s market study on the consumer, they found Samsung has been taken as
a not so flashy or attractive brand like Apple or Sony. Most of the people viewed it low cost
and tech-savvy product however majority are not sure about internal technology, designing
and its utility at max which is why people are unable to relate with Samsung Product.
The alternative strategy is focusing on reinforcing existing product line brand image among
the consumers (both existing and future). (Ghemawat et.al,2012)
Pros of rebranding

Running Head: Samsung Global Marketing Operation 5
 Reinforcement of brand image will bring new customers into its business. (economic
benefit)
 As the product of Samsung will be shown in a new way such as presenting the uniqueness
of the product or its unidentified utility etc., it will change the way customer were looking
earlier. (technological)
 It will create a new brand personality where the brand connects with people. (social)
Cons of rebranding
 Too much spending on ad campaigns may cost the company. (economic)
 Rebranding may or may not align to existing offering thus can have reverse effect.
(social)
Identify the best alternative
In the above, we discussed about two alternative methods to revamp the brand image at
global scenario. To know the strategy which Samsung should go for can be studied by
qualitative and quantitative analysis.
Quantitative analysis
Alternative-1-
Pre 2000 era i.e. before Eric Kim joined Samsung as Marketing Head, the company was not
having product differentiation and also considered a 3-tier commodity brand. After joining,
Kim focused more on upcoming technology i.e. Big Screen TVs such as LED, LCD and
Plasma TV. The focused shifted from traditional semi-conductor to digital media. It paid off
and they ranked 1st in the segment with 32% shares all over. The differentiation focused

Running Head: Samsung Global Marketing Operation 6
strategy can be found with the unveiling LCD 57 inch TV in 2003 that no one ever brought
into market till then. The impact of new product introduction with differentiation took a
massive sales growth of $15 billion in a year which never took place before. (Glowik 2016)
The revenue from Flash market (innovative product) which were once lagging Intel by $200
billion came down to only $50 billion within 2 quarters since Kim joining. The demand and
sale of LCD projected from merely 25 million units to 200 million units within 4 years span.
Alternative-2
Rebranding strategy particularly the campaign called ‘Digital All” campaign focused more on
empathy and sensitivity to connect with people. The new brand logo and tagline would help
the company to reframe consumer mind.
In the survey study on consumer’s thinking on brand provided the information that in all 4
nations (China, Brazil, Germany and USA), the product considered perfectly fit and delight
me among customers with respect to competitors. However, in all 4 nations the primary
criteria or choice of customers was missing in Samsung case. For ex- In Brazil, perfectly fit
was considered mostly for Sony not for Samsung whereas Samsung there stood highest in
reliant which was secondary.
So from this end, alternative-1 is seemed positive for the company.
Qualitative analysis
Alternative-1- The decision to bring differentiation and introduction of innovative product is
the core value of Samsung thus it exists within the scope. This can be a strength in future.
Alternative-2- Rebranding strategy may or may not succeed as change of taste and preference
of people is unpredictable. Moreover, rebranding of whole product line is impossible due to
its corporate brand image.

Running Head: Samsung Global Marketing Operation 7
From this also, alternative-1 is found as a good strategy.
Application of Alternative-1 with SMART Framework
The alternative- 1 stated about shifting of the corporate strategy from cost focus to product
differentiation. To do so the following actions can be taken- (Cho et.al,2015)
Set the market first
Identify the emerging market first because in saturated market the scope of differentiation is
lower. For ex- As China market or USA market is moving towards saturation, the focus
Samsung can be shifted to India, South Africa, UAE, Australia etc. where electronic market
is emerging. Any new product should be commercialised first in these market.
Advertise differentiation not product itself
Kim said that spending too much money on product ads won’t give boost to sales. If the ad is
showing “What’s the difference” then people would relate more and will bring curiosity of its
use. Turn consumers to experiencer.
Do It My WAY (DIY)
Instead of letting customer to explore utility, show them what they can do with the product.
This way customer can related their need to the differential product offering.
Let customer decide price
Don’t come up with a price for a new product but come up with the product or its prototype
with ads to create buzz for the product. Once the buzz about price based on utility goes
around, offer in that way. (Value -based pricing)
Is it SMART?

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Simple- Yes, Innovation is part of Samsung culture.
Measurable- Yes, by looking at increasing revenue and consumers.
Achievable- Yes, because customers are looking for new things with the changing time.
Realistic- Yes, with the existing R&D support and market research, this plan will work.
Time bound- Yes, the strategic plan can be made for new product lines for next five years to
see results.

Running Head: Samsung Global Marketing Operation 9
References
Baloh, P., Uthicke, K., & Moon, G. (2008). A business process-oriented method of KM
solution design: A case study of Samsung Electronics. International Journal of Information
Management, 28(5), 433-437.
Moon, G., Park, C., Yoo, D. K., & Choi, S. (2011). Effective implementation of
Communities of Practices (CoPs) in a knowledge habitat: a case study of Samsung
Electronics. International Journal of Services and Operations Management, 8(3), 335-346.
Ghemawat, P., & Siegel, J. I. (2011). Cases about redefining global strategy.
Glowik, M. (2016). Market Entry Strategies: Internationalization Theories, Concepts and
Cases of Asian High-Technology Firms: Haier, Hon Hai Precision, Lenovo, LG Electronics,
Panasonic, Samsung, Sharp, Sony, TCL, Xiaomi. Walter de Gruyter GmbH & Co KG.
Cho, Y., Kim, E., & Kim, W. (2015). Strategy transformation under technological
convergence: evidence from the printed electronics industry. International Journal of
Technology Management, 67(2-4), 106-131.