Global Marketing Operations - Case Study Example

Samsung has emerged stronger with global image by their innovative strategies that were globally focused, restructured, and streamlined to the target. Samsung achieved 70% of the business from outside Korea. The company remained very much Product- focused with attention on manufacturing. They believed in quality product that could take care itself to establish and to be preferred by consumers. But in today's world of competition this notion was mistaken and they had to change to become market oriented under the able leadership of Mr. Kim. In 2008, Samsung is expected to earn 9.

27 trillion won, up from 7.4 trillion won last year, according to Reuters Estimates. The major objective of the company in 2008 is to be top three electronic companies in the world by 2010 with quality products, to double up their 2004 sales achievement of $55 billion by 2010, to have 20 number one market share in the compared to the present eight number one market share products, to identify growth engines of growth and pursue innovation through out its business operations. It is a fact that Samsung Electronics had been more a manufacturing giant than a market entity.

In terms of marketing the company has been backward if compared with its rivals in the market such as Nokia and Motorola. The company started its marketing efforts late and yet they could not make highly visible brands particularly in the foreign market. The company is badly in need of signature product that will make its brand name stick in consumers' mind. The company is suffering from identity crisis. For example iPods of Apple is easily identifiable in United States as 'Anycall' phones of Samsung is identifiable in Korea.

But this brand has identity problems in other countries. The real challenge is to build Samsung into a beloved brand into the mind of people who would love to have it and recall it any time. Cell phones account for 31% of Samsung's revenue and therefore needs intensive attention from the marketing manager. The company is planning to enter and succeed in emerging markets. The efforts of building the brand image can be resumed in these countries. Emerging markets have become highly competitive and it is very dangerous to take initiative here.

But Samsung with its history of doing miracles with its products innovation can do it in marketing as well. In India about six million people are buying new mobile set every month. Nokia and Motorola are well positioned there even at low profit margins. They are active in the market to sell dirt-cheap handsets with hope to take over the high-end market in future. Samsung does not like to market these low-end handsets. They are catering to high end of the low-end market- 'the premier low end' in the price range of $50-$70.

Samsung needs differentiation of its brand here in this premier low-end market. There are numerous consumers who bought high-end products in the past but and they are not happy buying the cheap products. Samsung with its superior image of building high quality products can focus its brands of low-end premium products without increasing the