We are the number one manufactures of computer chips and are able to sell customized chips to Dell, Microsoft, and Nokia at higher than market value. We have established the Seoul tower place to experiment connecting all digital service in one device In 2002, we won five awards for industrial design excellence. It proved our ability to be the most innovative technology firm. Previously marketing budgets at Samsung were set by percent of sales rather than growth potential Analysis: 1. Recommendation 1
Focusing on the vanguard might alienate the older generations but to overcome this we can tailor advertising campaigns to emphasize user friendliness and accessibility. A success in the cell phone market will expedite brand loyalty and awareness because consumers have strong emotional ties to products they use daily from an early age. We believe MP3s and cameras will become cannibalized by the cell phone industry due to digital convergence, which creates growth potential for Samsung product.
Because of our investment in LCD screens, we have gained a significant advantage in the television market for the next 5-10 years and need to create the next technology in order to maintain our advantage for more years in the future. 2. Recommendation 2 To reach the goal of being top 10 most valuable brands, it is important to stay away from sub-branding because its going to reduce cost efficiency of our current market expenditures.
Sub-branding only creates brand recognition in its personal product market and does not add value to the global Samsung brand name. 3. Recommendation 3 The US is currently at the turning point stage, therefore with our specialized teams we can focus on strengthening our brand in order to surpass our competitors. Next Steps: The next step for reaching the top ten most valuable brands in the world begins with succeeding with the “vanguard” consumers.
These consumers are the spenders of the future and have the most interest in technology. If we become the market share leader in the cell phone industry, as well as continue to stay atop the computer chip and big screen television markets, our company will be seen as a premier and preferred brand by these users. This should translate to higher perceived value globally. In order to maintain this image, it is imperative to continue marketing the single Samsung brand under the umbrella concept.
A user needs to be able to identify the Samsung brand across our diverse product offering, building confidence in the name for all product categories. Finally, the installation of three corporate marketing teams to oversee the individual stages of market development will provide much more cost-effective and successful campaigns globally. Use M-Net to categorize the individual global markets based on highest growth potential in order to budget funds most effectively.