Starbuck's success

Essay by LinhDBSKElementary School, 3rd gradeC+, November 2013

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II. Samsung's international advertising and marketing strategy

Profile of Samsung:


The Samsung Group was founded in 1938 by Lee Byung-chul (1910-1987).

It was incorporated in 1951 as Samsung Corporation. The meaning of the Korean word Samsung is "Tri-Star" or "three stars".

Samsung's primary focus is in the electronics, heavy industry, construction, and defense industries. Other major subsidiaries of Samsung include insurance, advertising, and entertainment industry businesses.

Core values: In everything we do, we strive to help people live better lives.

Vision and mission: Samsung is dedicated to developing innovative technologies and efficient processes that create new markets, enrich people's lives, and continue to make Samsung a digital leader.

Key business areas: Consumer Electronics

Television & LCD TV's

Mobile phones

MP3 & Audio/Video

Cameras & Camcorders

Home appliances

Information technologies

Laser printers & Multifunctions


History and achievements:

Samsung is one of the largest businesses in Korea, producing nearly one fifth of the country's total exports.

For over seventy years, Samsung has been dedicated to making a better world through diverse businesses that today spans advanced technology, semiconductors, skyscraper and plant construction, petrochemicals, fashion, medicine, finance, hotels, and more. Their flagship company, Samsung Electronics, leads the global market in high-tech electronics manufacturing and digital media.

Through innovative, reliable products and services, talented people; a responsible approach to business and global citizenship; and collaboration with partners and customers, Samsung is taking the world in imaginative new directions.

The successful diversification became a growth strategy for Samsung, which rapidly expanded in to the insurance, securities, and retail business. Samsung was focused on the redevelopment of Korea after the war with a central focus on industrialization.

In the 1960s: Samsung entered the electronics industry with the formation of several electronics focused divisions. The initial electronics divisions included Samsung Electronics Devices, Samsung Electro-Mechanics, Samsung Corning, and Samsung Semiconductor & Telecommunications. Samsung built their initial facilities in Suwon, South Korea, where they started producing black and white television sets.

In 1980, Samsung entered the telecommunications hardware industry with the purchase of Hanguk Jenja Tongsin. Initially building telephone switchboards, Samsung expanded in to telephone and fax systems which eventually shifted to mobile phone manufacturing. The mobile phone business was grouped together with Samsung Electronics which began to invest heavily in research and development throughout the 1980's. During this time Samsung Electronics expanded in to Portugal, New York, Tokyo, England and Austin, Texas.

In 1987 with the death of Lee Byung-chull, the Samsung group was separated in to four business groups leaving the Samsung Group with electronics, engineering, construction, and most high-tech products. Retail, food, chemicals, logistics, entertainment, paper, and telecom were spun out among the Shinsegae Group, CJ Group, and Hansol Group.

Samsung grew as an international corporation throughout the 1990s. The construction division of Samsung secured several high profile construction projects, including one of the Petronas Towers in Malaysia, Taipei 101 in Taiwan and the half mile tall Burj Khalifa Tower in the UAE. Samsung 's engineering division also includes Samsung Techwin, an aerospace manufacturer that manufacturers aircraft engines and gas turbines as well as supplying parts used in jet engines on Boeing and Airbus aircraft.

In 1993, Samsung reorganized to focus on three industries, electronics, engineering, and chemicals. The reorganization included selling off ten subsidiaries and downsizing. With renewed focus in electronics, Samsung invested in LCD technology, becoming the largest manufacturer of LCD panels in the world by 2005. Sony partnered with Samsung in 2006 to develop a stable supply of LCD panels for both companies, which had been an increasing problem for Sony which had not invested in large LCD panels. While the partnership was nearly a 50-50 split, Samsung owned one share more than Sony, giving them control over the manufacturing. At the end of 2011, Samsung bought Sony's stake in the partnership and took full control.

Samsung's focus in the future is centered on five core businesses including mobile, electronics and biopharmaceuticals. As part of it bio-pharma investment, Samsung formed a joint venture with Biogen, investing $255 million to provide technical development and biopharmaceutical manufacturing capacity in South Korea. Samsung has budgeted nearly $2 billion in additional investment to pursue their bio-pharma growth strategy and leverage the advantages of their joint venture.

Samsung has also continued to expand in the mobile phone market, becoming the largest manufacturer of mobile phones in 2012. To remain a dominate manufacturer, Samsung has earmarked $3-4 billion to upgrade their Austin Texas semiconductor manufacturing facility.

Samsung's international advertising and marketing strategy:

To become extraordinarily success, Samsung has applied an effective and smart strategy which has expanded and promoted their brand over the world. The company has been continuously renovating their products' model to meet the customers' tastes.

Product life cycle 1 of Samsung's mobile

Product life cycle 2 of Samsung's TV

Over a decade ago, Samsung Electronics was a little known low-end consumer electronics company which products were sold under brand names no one even remembers like Tantus and Yepp, synonymous with ―cheap and OEM (original equipment manufactured), brand LESS products sold to other companies and resold stamped with brand names at a higher price. However, this Korean consumer electronics manufacturer realized that the only way to build a better known identity and rival giants such as Sony and Panasonic was to focus on building a more upscale image through better quality, design, and innovation. With that, the company discarded its other brands and put all its resources behind the Samsung name. Reinventing itself, Samsung produced a line of first-rate, top quality TVs, cell phones and appliances, to reveal the company's superb technological advancements. The perception of Samsung was no longer the - cheap brand. By elevating the quality of its products above its competitors, it is now in the ranks of Sony and Panasonic, two Japanese large electronic big names. Cell phones are now a - must have and are carried by people all around the world. Years ago people would feel - naked without wearing their wristwatch, but now it is the cell phone and TVs have moved from just the family room to every room in the house. Head of Samsung's USA marketing and consumer unit, Peter Weedfald, stated, "We wanted the brand in users' presence 24/7. Today, Samsung Electronics is the most publicly visible quality brand name with consumer products and is the third largest electronics maker in the world behind number one Sony and number two Matsushita - parent company of Panasonic, Quasar, Technics, and JVC.

Marketing Strategy Make Your Presence Known 24/7:

In order to be a powerhouse electronic company, Samsung needed to change its brand image. When Seoul, Korea was host for the 1988 Summer Olympic Games the time was ripe for Samsung to showcase its products by associating its company with this international sporting event.

Samsung became the official sponsor of wireless technology for the Olympic Games, just as Omega was and has been the official timekeeper. With over a thousand athletes from 200 or more countries competing, plus tens of thousands of workers, and hundreds of millions of attendees and viewers, this certainly amplified the company's image.

In 1999, American-Korean, Erick Kim, marketing miracle man, started working with Samsung and eventually became the head of Samsung's global marketing department. Within a few years, Samsung's cell phones and flat- panel TVs were consumer favorites because Kim focused on partnering with Best Buy, a top U.S. retailer of electronic goods.

Mass Marketing

Marketers report a number of reasons to sponsor events:

Identify with a particular target market or lifestyle

Increase awareness of company or product name

Create or reinforce perceptions of key brand image

Enhance corporate image

Create experiences and evoke feelings

Express commitment to the community or on social issues

Entertain key clients or reward key employees

Permit merchandising or promotional opportunities

Marketing Sponsorship

Samsung's involvement with the Olympic Games began in 1988, when it became a local sponsor for the Seoul 1988 Olympic Summer Games. In 1997, the company then became a member of The Olympic Partner (TOP), Worldwide Olympic Partner in the wireless communications equipment category, continuing its contribution to the Olympic Movement for five consecutive Olympic Games. Through its advanced wireless telecommunication technology and products, Samsung is recognized for providing the Games with crucial, real-time information service in support of the world's largest sporting event. Samsung is proud to carry on its Olympic partnership through the 2016 Olympic Games.

Luxury Co-Branding

Samsung's Armani Smartphone In the fall of 2009, Samsung Electronics and Giorgio Armani released their premium smartphone. It was designed by the world renowned Italian fashion designer to the rich and famous, Giorgio Armani and Samsung

Features: Samsung Giorgio Armani B7620 Unlocked Windows Mobile Smartphone Quad-Band GSM with Full QWERTY keyboard, Touchscreen, 5MP camera, GPS navigation and Wi-Fi - International Version with No Warranty (Bronze). List price: $999.99 Amazon Price: $849.99

A luxury smartphone that looks like a piece of jewelry is very eye catching. One can only imagine Samsung's next partner-Mercedes Benz of DaimlerAG or maybe even Rolls Royce!

Key Products

Samsung Electronics manufactures products in a number of categories:

 Semiconductor: DRAM, SDRAM, flash memory  Hard drives  Digital display: LCD displays, LED displays, plasma displays, OLED displays  Home electronics: TVs, DVD players, Blu-ray players, home cinema systems, set-top boxes, projectors  Mobile devices: mobile phones, MP3 players, digital cameras, camcorders,  Computing products: monitors, laptops, UMPCs, CD and DVD Drives, laser printers, fax machines  Home appliances: refrigerators, washing machines, microwaves, ovens, vacuum cleaners, air conditioners.

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