Company Name- Samsung
Founder- Lee Byung Chul
Samsung is a well-known South Korean multinational company which is known and loved across the globe. With its strong brand presence, its headquarters is based in Samsung Town, which is a major office park in Seocho-gu in Seoul, South Korea. Samsung consists of various affiliated companies and business united under brand name of Samsung.
It is the largest South Korean business corporation. As of 2017, Samsung Electronics is the world’s largest information technology company, and has the 6th highest worldwide brand value. Samsung Life Insurance is the 14th largest Life Insurance Company across the globe, and its revenue contributes to 17% of Korea’s GDP .
It also includes various other large industries such as shipbuilding, construction, resorts and advertising company. It has a powerful presence in South Korea and plays an important role in the country’s economic development, politics, media and culture.
How It All Started
Lee Byung Chul founded Samsung in the year 1938 as a trading company. The group diversified into areas including food processing, securities, textiles, retail and insurance. It entered in the electronics industry in the late 1960 and the shipbuilding and construction industries in the mid-1970s. After the death of Lee Byung Chul, Samsung was separated into four-business groups- The Samsung group, The CJ Group, The Shinsegae Group, and The Hansol Group.
According to its founder, Samsung in Korean means “tri-star” or “three stars”. The word “three” represents and stands for something “great, big, abundant and commanding”.
Samsung has many different businesses. It makes mobile phones, cameras and other electronics. “Samsung Electronics” sells Samsung Galaxy products. In 2012, Samsung promote Samsung Tab2 310 through a campaign in India. In December 2018, the company announced a launch of new 5G smart phones.
Samsung’s Marketing Strategy and Interesting Reasons behind Its Success
Samsung marketing strategy is one of the most effective strategies ever created because it helped a cost-driven company to change its structure and become an authority manufacturer. It has interesting and vast product portfolio. The product range includes smart phones, tablets, laptops, cameras, refrigerators; etc.
The product variation is the most powerful aspect of the marketing mix of Samsung. Samsung Galaxy S6 and S6 Edge are the brands of new products of Samsung carrying the slogan “Next is now”. It claims that they are the most beautiful smart phones ever-created. The company faces difficulties in gaining an edge over its competitors with other products like robotic vacuums- Roomba 650 and 880.
Samsung seeks a competitive pricing strategy in ensuring a competitive edge. It followed and developed a marketing strategy, which enables it to become an industry leader in the technology sector. It undertakes two components, the first is skimming price and second is competitive price. Skimming pricing allows adjusting and updating its prices with increased competition resulting to a decreased price in order to attract more consumers.
Samsung also uses skimming price to gain the upper hand over their competitors. The other one is Competitive pricing, it includes setting of price of a product or serviced based on what the competition is charging. Samsung provided better features and played cost competition to make its market.
Pricing is critical market element as it communicates the market and product value of the product being introduced in the firm.
It approaches different promotional tactics to make customers buy the product. It introduces discounts, sponsor events, and engages with national and worldwide festivals and many more.
Samsung hosted a contest, which increased the fan count by 12,000 during first week of the contest alone. Samsung also is the sponsor of several sports teams, such as Chelsea Football club
Distribution and Sponsorship–
It is mostly famous for its product quality but beside the gadget, it is also known for being a sponsor giant. The current sponsorship of Samsung is Sydney Opera House, Australian Olympic Team, NSWIS Awards, Oceania Foundation, etc.
It uses channel marketing in its industry. Only service dealers are taken into account for corporate sells. The compelling part of Samsung Marketing Strategy is distribution. It has a contract with a single distribution company that distributes the product throughout the city.
“Marvel’s Avengers”: Age of Ultron and Samsung Mobile Present ‘Assemble part-1 and 2. The advertisement starring Eddie, Fabian Cancellara, Lionel Messi, John Florence and 2 awesome fans, was huge success of Samsung’s marketing department. Both parts of the video have more than 51 million views. The commercial focuses on the compatibility of the Gear VR and the Galaxy S6, which shows the awesomeness of the new product the Samsung introduced.
#Galaxy11: The Match Part 1 and 2: The commercial is absolutely stunning and compelling. The ad surely drives interest to Samsung and it might even make you change the brand of your smart phone.
The YouTube ad of ‘Useless Bid’ and minisite describe the features of the new Tab2 and encourage people’s other devices obsolete, so they could do away with their phone, laptop, camera and TV. Several campaigns aimed at dispelling the weird fan culture that surrounds its rival. Samsung gave non-famous people a chance to participate in this breathtaking commercial to make the company and the advertisement even more successful
In 2012, Samsung sought to pinch some Apple Customers, which identified as several people who had complained about their iPhone on Twitter and send them a free and unlocked Samsung S as a replacement. It seems like a cost-effective way of generating some extra social buzz. ‘#OverToYou’ is another campaign that highlights Samsung’s use of social and online communities to promote its new products.
“Incredible Art Piece” campaign run by Samsung invited people to contribute to the massive art project either through a minisite, a Facebook app, or by drawing a picture offline and emailing it via Samsung.com. It is new Galaxy Note Pen Stylus feature Samsung launched an attempt to break the world record for the most people contributing to a single art of piece.
The ‘Digital Line’ campaign cocking a snook at Apple fan boys creates a digital queue in preparation for the launch of the Galaxy S4 in New Zealand. In 2011, ‘Like it, reveal it, win it’ campaign highlights the means by which brands sought to boost their fan count in the early days of social.
Samsung is the largest tech business by revenue and one of the most valuable brand today. It has sparked in terms of innovation and instead of satisfying the needs of society, they have literally started to create the need for people. It is one of the largest companies in the world with 150, 00 employees worldwide.
Samsung marketing strategy is a perfect example for marketers to progress and grow. The videos of the campaigns are also shareable which give Samsung some additional exposure outside of its normal marketing channels and it is famous for its customer service.