Course teacher, International Business Faculty of Business ASA University Bangladesh

Submitted By: NameIDFoysal Ahmed071-12-107Mehedi Hassan F 0

P Prince071-12-122 0
Section: A 23/3, Khilji Road, Shyamoli, Mohammadpur, Dhaka-1207 Faculty of Business ASA University Bangladesh Assignment

On
Submission Date: 21-04-2009 Market position, promotion& distribution of Samsung Monitor

Course Name: International Business Course Code: BUS 231

Case Study No#02

Letter Of transmittal Submission

Date: 08/02/09
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April,21.2009 Dewan Md. Nur A Yazdani

Lecturer of ASAUB Faculty of business ASA University Bangladesh ASA Tower, 23/3, Khilji Road, Shyamoli, Mohammadpur, Dhaka-1207

Dear Dewan Md. Nur A Yazdani Here is the report on the observational study of your assignment that you said us to prepare the assignment. Our assignment on A international company which has a market position in whole world .We try to highlight the company performance as well as company achieve over the years. We also try to show the opinion from our own view point. The resulting recommendation for your assignment should help you to understand the total theme of the subject. We appreciate your choosing to give us this type of assignment because this type of assignment really helps us to know about the market condition of different countries.

Yours Sincerely Foysal Ahmed Mehedi Hassan Prince

Acknowledgement Letter

At first we would like to give a special thanks to our course teacher Dewan Md. Nur A Yazdani We are so glad to know about the market condition of Samsung monitor which choose our subject of assignment.. To do any work as men we need help of others. Without having help of others we can do some works but sometimes we can not do it properly. We are not exceptional from this. For this reason, we need to take help from our course teacher who helps us very much to prepare the assignment. We have also need to take help from our friends. One of our friends helped us very much to complete the assignment he is A.B.M ASHRAFUL HAQUE, who is the student of ASA University Bangladesh..

We are particularly grateful to many student of ASA University Bangladesh. We are also grateful to ASA University Bangladesh for rich computer lab with internet connections and lab in-charge. Finally, we appreciate the helpful comments and suggestions provided by the following reviewers:

1. A.B.M ASHRAFUL HAQUE (AKRAM) 2. DEBABRATO ROY (DEB) 3. A. B HIMEL

4. SHULI COMMERCIAL AGENCY.

Table of contents

SL. No.
1. 2. 3. 4. 5.

Content
Letter Of transmittal Acknowledgement Letter Table of content Background of Samsung Marketing strategy for Launching Samsung Product

Page no.
2 3 4 5-6 7-8

6. 7. 8. 9.

Market Poisoning Promotion Distribution Marketing strategies in three countries

9-10 11-12 12-13 14-24

10. 11.

Conclusion Reference

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Background of Samsung

Samsung Electronics was founded in 1969 in Suwon, South Korea as Samsung Electric Industries originally manufacturing electronic appliances such as TVs, calculators, refrigerators, air conditioners and washers. By 1981, the company had manufactured over 10 million black and white TVs. In 1988, it merged with Samsung Semiconductor & Communications Samsung is the world's largest electronics company, headquartered in Seocho Samsung Town in Seoul, South Korea. It is the largest South Korean company and the flagship subsidiary of the Samsung Group. Samsung Electronics is the global market leader in more than 60 products, including Semiconductors such as DRAM, SDRAM, Flash Memory and Hard Drives, Digital Displays such as LCD Displays, Plasma Displays and OLED Displays, Home Electronics such as TVs, DVD Players, Blu-ray Players, Home Cinema Systems, Set-Top Boxes and Projectors, Mobile Devices such as Mobile Phones, MP3 Players, Digital Cameras and Camcorders, Computing Products such as Monitors, Laptops, UMPCs, CD and DVD Drives, Laser Printers and Fax Machines and Home Appliances such as Refrigerators, Washing Machines, Microwaves, Ovens, Vacuum Cleaners and Air Conditioners. Source : http://en.wikipedia.org/wiki/Samsung_Electronics

Company brands

Anycall - Mobile Phone brand (Used in some countries)

Sens - Laptop computer brand Hauzen - Premium home appliances brand Zipel - Home refrigerator brand Yepp - MP3 player brand Pavv - TV brand Kenox (Digimax) - Digital camera brand SyncMaster - Monitor brand (Being Phased out for ToC Monitors) Zaigen - Samsung computer support centre Magic Station - PC brand MagicBright - LCD display technology brand Magic Tune - Mouse operated OSD panel Magic Rotation - Image is automatically rotated by pivoting the monitor Magic Clear - Providing Vivid color and crystal clear image Ultra Edition - Slim Mobile Phone brand Pleomax - PC peripheral and battery brand SpinPoint - PC hard disk drive brand CLP - Laser printer brand MyMy - Cassette player brand Nexus - MP3 player and XM satellite radio Touch of Color - Adds style to monitor/TV's with a rose red hue inside a glass-like frame.

Marketing strategy for Launching Samsung Product

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New Product Development Process: Steps to Develop New Products and Services Today's businesses offer customers many choices - global choices. Price can be a business killer to compete on, because someone's always able to do it cheaper than you. So what's the solution? New product or service development: Taking your current offerings and somehow making them different or better. Here are the steps you'll take in product development:
1. Idea generation. Use creative idea starters like brainstorming to help you find the

ideas you're looking for. Try to combine two products you have into a single package or perhaps a product and a service, something to set your offering apart from others. If you can't think of anything, try considering a partnership or joint venture with another company.
2. Analysis. Analyze the potential success by asking some of your customers what

they think. You don't need to do anything formal, just do some informal polling with the people who come in the door or through your opt in newsletter. Give them a couple of different options and ask them which one they'd buy if they were in the market for whatever you are selling.
3. Development. If you're packaging products or services together that already exist,

the job is mostly done for you. However, you will still want to consider branding them as their own item.
4. Testing. Although you did take a poll, polls are not always accurate. After all,

you're not asking people to actually pony up with any money! This is where the rubber meets the road and you need to find out if people are actually willing to buy your new and improved product. Be ready to make instant changes, if necessary, including raising or lowering the price or offering other incentives to move the product.
5. Marketing. After the testing stage has helped you refine your product a little more,

you can move on to actively marketing your new product on a full scale, hopefully with noticeable improvements in sales.

Is business growing stale? Want to breathe new life into your product line-up? Consider becoming an "inventor" and developing ideas to help you sell more products. You may want to think about: Packaging two products together. Finding joint ventures of complimentary products Offering your product as a way for other people to start a business. Finding a new use for your product. Selling unassembled do-it-yourself version.

And also analyze the following

1. Study your competition.

2. Target the ideal customer 3. Create a unique value proposition 4. Define your marketing strategy and tactics 5.Test your concept and marketing approach 6.Roll out your campaign. 7. Know your product's lifecycle

Market Poisoning
Simply, positioning is target market of Samsung defines the relationship of Samsung with other competitors.

A good position is: 1. The attributes that makes Product unique 2. This is considered a benefit by target market Both of these conditions are necessary for a good positioning. Positioning is important because Samsung are competing with all the noise out there competing for Samsung potential fans attention. If Samsung can stand out with a unique benefit, they have a chance at getting their attention. It is important to understand Samsung product from the customers point of view relative to the competition.

Positioning Strategies
There are seven positioning strategies that can be pursued: Product Attributes: The new product has unique some attributes that combines the national fame as a recognized owner of diamond production country. Benefits: New substitution with low cost high quality. Usage Occasions: All the year round and during the occasion specially Users: All the people are the probable customer and as well as consumers. Against a Competitor: Positioned directly against Other company. Away from a Competitor: Business would be almost guaranteed from all areas away from its competitor. Product Classes: Product is very sophisticated and product class is very high.

New Product Pricing

There are two new product pricing strategies:

Market-Skimming: Initially set high prices to "skim" revenue layer by layer from the market. Works when:

Quality and image support the higher price Enough buyers want the product at that price Cost of producing a small volume cannot be high Competitors should not be able to enter the market easily

Market Penetration: Set a low initial price in order to penetrate the market quickly and deeply to win a large market share. Works when:

Market is highly price sensitive Production and distribution costs fall as sales volume increases Low price must help keep out the competition

Pricing Strategies :The following are price Strategies based on changing situations:
Discount & Allowance: reduced prices to reward customer responses such as paying early or promoting the product. Discriminatory: adjusting prices to allow for differences in customers, products, and locations Psychological: adjusting prices for psychological effects. Value: adjusting prices to offer the right combination of quality and service at a fair price Promotional: temporarily reducing prices to increase short-run sales Geographical: adjusting prices to account for geographic location of customer. International: adjusting prices in international markets

Promotion

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Promotion is a form of corporate communication that uses various methods to reach a targeted audience with a certain message in order to achieve specific organizational objectives. Nearly all organizations, whether for-profit or not-for-profit, in all types of industries, must engage in some form of promotion. Such efforts may range from multinational firms spending large sums on securing high-profile celebrities to serve as corporate spokespersons to the owner of a one-person enterprise passing out business cards at a local businesspersons meeting.

Promotion Summary Table

The table below compares each of the promotion mix options on the seven key promotional characteristics. The summary should be viewed only as a general guide since promotion techniques are continually evolving and how each technique is compared on a characteristic is subject to change. Characteristics Directed Coverage Message Flow Payment Model Advertising Sales Promotion Public Relations Personal Selling mass one-way non-paid targeted two-way paid

mass & targeted mass & targeted one & two-way one & two-way paid limited non-paid paid

Interaction Type

non-personal

personal & non-personal

non-personal

personal

Demand Stimulation Message Control Message Credibility

lagging good low-medium

quick good low-medium

lagging poor high

quick very good medium-high

Distribution
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For marketers, the distribution decision is primarily concerned with the supply chains front-end or channels of distribution that are designed to move the product (goods or services) from the hands of the company to the hands of the customer. Obviously when we talk about intangible services the use of the word hands is a figurative way to describe the exchange that takes place. But the idea is the same as with tangible goods. All activities and organizations helping with the exchange are part of the marketers channels of distribution. Activities involved in the channel are wide and varied though the basic activities revolve around these general tasks:

Ordering Handling and shipping Storage Display Promotion Selling

Information feedback

Distribution channel
Frequently there may be a chain of intermediaries; each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user.

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Channels
A number of alternate 'channels' of distribution may be available:

Selling direct, such as with an outbound sales force or via mail order, Internet and telephone sales Agent, who typically sells direct on behalf of the producer Distributor (also called wholesaler), who sells to retailers Retailer (also called dealer or reseller), who sells to end customers Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alone. They may be just as important for moving a service from producer to consumer in certain sectors, since both direct and indirect channels may be used

Promotion for three markets

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Chinese market American Market Indian Market

Marketing Strategies for the Product

To promote the product at first we need to be concerned about the following things: The first thing to do when choosing a market segment - is determined to geography. 1. Where will sell the product or service? 2. Which community will be a key to the buyer? 3. Focus on serving more compact groups of people? 4. In which time a set of people who attend these places, will be the principal geographic . markets for a small company.

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Other marketing activities also need to be examined carefully for their globalization potential. The correct approach would be to identify the various value chain activities within the marketing function and decide which of these can be performed on a global basis and which can be localized. Typically, marketing includes the following activities: Market research. Concept & idea generation. Product design. Prototype development & test marketing Positioning Choice of brand name Selection of packaging material, size and labeling Choice of advertising agency Development of the advertising script Execution of advertisements Recruitment and posting of sales force Pricing Promotion Selection and management of distribution channels. Some of these activities are amenable to a uniform global approach. Others involve a great degree of customization. Within a given activity, parts can be globalize and others performed locally.

Product Development

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Product design & development is an activity where the potential to globalize needs to be examined carefully. A globally standardized product can be made efficiently at a low cost but may end up pleasing few customers. On the other hand, customized products targeted at different markets across the world may be too expensive. The trick, as in the case of other value chain activities is to identify those elements of the product which can be standardized across markets and those which need to be customized. In a globalize economy, there is pressure on companies to improve efficiencies by offering standard products to the extent possible. There are pitfalls however to be avoided. Customer preferences vary across countries. Let us say all these are carefully taken note of and some average preference arrived at. Based on this, if a company develops a new product, it may well and up pleasing no one. When it comes to product strategy, managing in a borderless economy doesnt mean managing by averages. It doesnt mean that all tastes run together into one amorphous mass of universal appeal. And it doesnt mean that the appeal of operating globally removes the obligation to localize products. The lure of a universal product is a false allure. Consider a product. Traditionally, manufacturers have developed hundreds of models to meet the needs of different markets without exploring the possibilities that exist for standardization. Proliferation of models has resulted in unused capacities and inefficiencies. In the global industry today, substantial excess capacity exists. Under these circumstances, manufacturers are looking for ways to cut costs. One approach has been to select common platforms and build models of different shapes around these platforms. Market Research Some elements can probably be standardized. For example, the sample to population ratio can be controlled globally. The information to be collected for each product category can also be standardized. However, questions have to be tailored taking into account the sensitivity of both the local government and the local people. In particular, personal and embarrassing questions have to be avoided in certain countries. The actual task of administering the questionnaire and collecting data has of course to be performed locally.
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Even if questionnaires have to be customized to suit local requirements, a global approach to marketing research efforts can help in improving efficiency. For example, clusters of countries might need the same questionnaire. Global coordination is also necessary to facilitate sharing and transfer of knowledge. The global head of market research has the important job of ensuring that each country is aware of not only the research activities it is carrying out but also of the activities being conducted in other countries. A systematic process of collecting inputs relating to research methodology and data from different parts of the world can help in the formulation and implementation of a globally coordinated market research strategy. Advertising Advertising is obviously a critical marketing activity. Consider the choice of advertising agency. A totally decentralized approach would mean selection of different agencies by different subsidiaries. While local agencies may feel they are in the best position to understand the needs of the local markets, no global company can afford such an uncoordinated approach towards advertising. For advertising, company may look for global branding opportunities, coordinating the activities of so many agencies and that may became a major problem. So that company can favor of retaining only a few agencies .the role of an advertising agency in the companys globalization efforts is to have dedicated teams. They visit every six weeks to tell, what they are doing around the world. Pricing When it comes to pricing, both global and local approaches can be used depending on the specific situation. This is putting pressure on them to look for ways to cut costs, indigenize and offer cheaper models. Sometimes global pricing becomes difficult because of different levels of competition in different markets. Even a company which follows global pricing for its engines makes suitable adjustments for local competition. Using a uniform price relative to competitors appears to make sense in many cases as it protects market share while maintaining a consistent positioning.

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Positioning A global positioning of products helps in improving the efficiency and effectiveness of marketing programs. On the other hand, differing usage patterns, buying motives and competitive pressures across countries necessitate the need for positioning products uniquely to suit the needs of individual markets. Wherever possible, a global positioning needs to be used as it ensures that money is wisely spent on building the same set of qualities and features into products. Global positioning can also reduce advertising costs. However, as mentioned earlier, uniform positioning without taking into account the sensitivities of local markets can result in product failures. Sometimes, local positioning has to take into account market realities. Global positioning of products often evolves over time.

Samsung Marketing Strategy In China

While selecting the Chinese market for the product the following things should be concerned advertising channel marketing internet marketing, promotion and public relations can be concerned: . Product development: Samsung standardized the monitor such a way so that it can be made efficiently at a low cost but may end up pleasing few customers. Primarily Samsung identify that element which can be standardized across markets and those which need to be customized. Samsung identified the features which were popular among customers across the country. By the help of economies scale we do price our products competitively. At the same time,

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Samsung emphasis on the monitor quality. So that our product, even without frills, began to appeal to customers. Chinese culture is divided into many segment Samsung emphasizes the culture at first and In chines market, customer requirements are quite different, so Samsung also took it into account while developing the product. Samsung are implementing a cunning positioning strategy to enter the growing technological market. Market research: It is very clear that those firms that exhibit their acceptance of the host - China - early have been generously rewarded with business opportunities. At the individual level, there is an Eagle Culture which is provided to the individual to instill courage, devotion, tolerance and fighting spirits. Obviously, Western firms and executives must take off their own shoes before stepping into Chinese shoes if they wish to succeed in business in China. And government intervention in to the market are quite high than the other country. This information helps Samsung in the formulation and implementation of a coordinated market research strategy. Advertising Samsung Company looked for branding opportunities and decided in advertising all over the world. They want look tative advertisements.

Pricing Samsung price the product at a desired margin over cost. Price of the product is depending on the quality . Samsung also using a consistent price relative to competitors appear to make intelligence in many cases as it protects market share while maintaining a consistent situation. As there competition level is not so high so pricing may not be vary a great sance. And chines government has also a major intervention on the pricing of the product.

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In china there are variation of culture, and there test may also vary, we pay our concern on that factor when we do pricing the product we launce and we also consider the local factor. Packaging

This relates to the package the final customer receives in exchange for their payment. When the final customer makes a purchase he or she is initially exposed to the Primary Package the outermost container that is seen and touched by the final customer. This primary package can be further divided into the following:

First-Level Package - This is packaging that holds the actual product In some cases

this packaging is minimal since it only serves to protect the product. For instance, certain frozen food products are sold to consumers in a cardboard box In these cases the both first-level package and the primary package for convey product information.

Second-Level Package In some cases the first-level package is surrounded by one

or more outer packages. This second-level package may act as the primary package for the product.

Package Inserts - Marketers use a variety of other methods to communicate with

customers after they open the product package. These methods are often inserted within, or sometimes on, the products package. Insertions include information such as instruction manuals and warranty cards, promotional incentives such as coupons, and items that add value such as recipes and software.

Samsung Marketing Strategy In America

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Promotion plan outlines When planning a promotional campaign Samsung company should keep in mind that a promotional plan generally consists of three desired outcomes: Outcome 1: Promotional message reaches intended and targeted audience. Outcome 2: Message is understood by audience. Outcome 3: Message stimulates the recipients and they take action. Here are eight steps that will promote Samsung Monitor campaign to the American market

Product positioning process Generally, the product positioning process involves:

1. Defining the market: First we have to define product or brand which will

compete (who the relevant buyers are)

2. Identifying the attributes: Secondly all the dimension that define the product

'space' .
3. Collecting information. We should collect information by making

exhibition of the market as for example from a sample of customers about their perceptions of each product on the relevant attributes
4. Determine share of mind; Determine share in mind is also important due to

have a major impact.

5. Location; The American people are conscious about their time due to

having long distance a product can lose his expected/target customer. So determine Samsung current location in the product space is important.
6. Target Market: All the people of the country never are a company target

customer it may be a large portion of a nation. Determine the target market's

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preferred combination of attributes (referred to as an ideal vector) should be in a perfect way.

7. Fitness: The fitness proved how much effective and efficient way has been

followed by me. Examine the fit between the position of Samsung and the position of the ideal vector.
8. Position: The last and final task is determining the position.

Samsung Marketing Strategy In Indian

Promotion plan outlines

The promotional tools or tactics that Samsung will plan to use to accomplish their marketing objectives. To the new or inexperienced marketer, the promotion plan might be mistaken as the entire marketing plan because it outlines where the majority of the marketing budget will be spent. It is, however, just one component of the marketing plan - there are additional strategy and planning components described in a marketing plan.

Samsung might choose to include the following components in its promotion plan:

Description (or listing) of the promotional tactics Samsung plan to use. Projected costs for the year. Explanation of how Samsung promotion tactics will support its marketing objectives. Description of promotional adjustments for cyclical businesses, if Samsung is indeed cyclical.

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Laying the Groundwork for Effective Promotional Tactics When Samsung deciding upon the best promotional strategy for reaching its target market, Samsung needs to:

Do research Keep customer in mind Be creative

Doing research includes activities such as studying monitor target market and finding out what other businesses in Samsung company is doing. A relatively quick way to learn how Samsung company competitors communicate their marketing messages is to look in trade journals. This will give Samsung company an idea of which features it believes are important and are emphasizing. Keeping Samsung company customer in mind will help prevent wasting its money and time on ineffective promotional activities. For example, it obviously won't help to advertise in the newspaper if Samsung target audience doesn't read it A partial list of promotional tools is listed below: Advertising
1.

Print advertising such as that in programs for events, trade journals, magazines, newspapers Direct mail Outdoor advertising, such as billboards and bus boards Broadcast advertising on radio and TV (or Internet sites)

2. 3. 4.

Marketing Collateral Samsung might choose to produce and distribute materials such as:
5. 6. 7.

brochures newsletters flyers

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8.

posters

Also be sure Samsung company package design is appropriately informative and catchy. Promotional Activities
9.

Sponsorships for special events (like fun runs) attended by Samsung company target audience.

10. Trade Shows- Samsung might be one that is suited to exhibiting at a trade show

11. Fairs 12. Give-always 13. Coupons 14. Conducting contests

Source: www.smallbusinessnotes.com/operating/marketing/promotionplan.html

Conclusion
After completing this assignment we can say that Samsung Company enters the market targeting different consumers and tries to survive in the market for a long term. Market segmentation helps them to achieve their objectives and bring them desire profitability.
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The Samsung companys have different types of high qualified employee that increase sale volume all over the world to develop the earning subsidiary. In the above discussion we find that Samsung increase their productivity and sale, they applied their own system. Gradually they enlarge their market in the whole world. They also introduce new product and have under planning design that will be produce in future development on their own ideas. Finally if they are able to beat their competitor by their resources they will be number one Company in whole world.

Reference:

International Business by (John D. Daniels,-Lee H. Radbaugh Deniel P Sullivan)

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 www.samsung.com

http://en.wikipedia.org/wiki/samsung
http://en.wikipedia.org/wiki/Samsung_Electronics www.smallbusinessnotes.com/operating/marketing/promotionplan.

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