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Samsung case study

NOT THIS ONE
by

Sindy Ma

on 29 December 2016

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Transcript of Samsung case study

Art vs Science
Samsung's Product Development Process
A marketing view of
Product Management

Product Life Cycle
Product Management
and New Product Development

Samsung case study
3 levels of a product
Moore, 2002
Engadget, 2010
Development
Researching marketing methods

Creating a marketing plan

Raise awareness of the product through
promotions or campaigns
PLANNING
Engadget, March 2010
Maturity
Decline
Introduction
Growth
New product, low sales

Establish a market

Mobile phone market:
Galaxy S3 9 million pre orders

Create launch events
Establish a market
Build brand and gain wider distribution
Branding to differentiate the product

Show how the product is better
than its competitors

Samsung gifted free phones to independent developers such as Cynagenmod
Incentives for customers of the competition to switch

Samsung releases software updates to continually improve its product

Free phone promotions
Market is oversaturated

Reinforce the brand image in the
eyes of the customers

Market exit strategy

Samsung: pave the way for the next generation
Core
Actual
Augmented
product the consumer ultimately receives and pays for
direct benefits of the product
benefits/services after the point of sale
warranty, customer service
Samsung: Kies Air, AllShare Play
initial sketches for the Bordeaux series
design iterations
final product
Samsung's product
development strategy
Samsung advert
“Samsung has become the poster child for using design to increase its brand value and market share” – Patrick Whitney, 2004.
Who is Samsung?
1938
2012
Founded as a trading company by Byung-Chull Lee
1971
Samsung begins making black and white television sets.
1987
Kun-Hee Lee replaces his father as Samsung’s chairman.
“Change everything but your family”
1993
1996
Year of the Design Revolution
2010
A new strategy for the company based on a Chinese axiom “a horse that does not stop”.
Samsung releases the Galaxy S3 (now called the Apple Smasher) and is the leader in the TV market
Agenda
Dimension 1:
Diffusion of Innovations
Augmented
Actual
Core
Customer service
Kies Air
AllShare Play
warranty
software
updates
handset
headphones
Android
OS
packaging
TouchWiz
Instruction
Manual
brand
quality level
design features
functions
ability to make voice/video calls, access the internet and use apps
iPhone 4 release
Samsung booth outside the Apple store
“Samsung lacked a design identity; its product-development process was primitive; and its top managers discounted design's value.”
Introduction
1. Development Process
2. 3 Levels of Product
3. Product Life Cycle
4. Art vs Science
5. Brand Evaluation

Step 1: Idea Generation
Samsung has continued, through its Design Power Program, to send its most promising designers to study at the world's top universities and institutions.

Danger of becoming obsolete
Customers

Competitors

Distributors

Suppliers
Internal Research
R&D
External Research
Step 2: Idea Screening
A process used to evaluate innovative product ideas. Idea screening criteria are used to determine compatibility with overall business objectives and determine if the idea would offer a viable return on investment.
“Now is not a time to be complacent but a time to run”
“Horse that does
not stop”
Step 3: Concept Development
and Testing
An attractive idea must be developed into a product concept.
Feedback from potential customers, competitors and employee’s
Stylish and innovative
Step 4: Market Strategy and Development
Marketing strategy development refers to the initial marketing strategy for introducing
the product to the market.
Step 5: Business Analysis
Business Analysis involves a review of sales, costs and profit projections to find out whether they satisfy the company’s objectives.
Pricing power from unique features
Blue Ocean Strategy, 2004
Step 6: Product Development
Here R&D or the engineering department develops the product concept into a physical product
Testing and developing a successful proto-type
$23 billion investment
Altering distribution channels
Step 7: Market Testing
The stage at which the product and marketing program are introduced into more realistic market settings.
The "Wow" Test
Bringing Positioning strategy, advertising, distribution, pricing, branding all into practice
Step 8:
Commercialization
When to launch
Where to launch
Planned market rollout
“execution of the launch process is often a bigger success factor than the product itself”
Commercialization
is the
introduction
of the new product
Ken Ewell, Waterstone Management Group
Lee Kun Hee, Samsung CEO
Lee Kun Hee, Samsung CEO
Bordeaux
Bordeaux Plus
1993 - New management strategy: emphasis on design
1996 - Courses educating senior managers about design
1997 - Management audit of designer contributions
2007 - Competition between design divisions to encourage innovation
"The positive effect that knowing the brand name has on consumer response”
Brand Equity
‘The real value of a brand is its power to capture consumer’s preference and loyalty’
Brand Loyalty
Mobile Market Share
TV Market Share
Brand Value
Brand Equity

Brand Loyalty

Brand Value
Evaluation method
Khanna, T, Song, J, & Lee, K 2011, 'The Paradox of Samsung's Rise', Harvard Business Review, 89, 7/8, pp. 142-147, Business Source Complete, EBSCOhost, viewed 4 November 2012.

Kyung-won, C, & Freeze, K 2009, 'Samsung Electronics and the Pathway to Integrated Design Success', Design Management Review, 20, 3, pp. 20-27, Business Source Complete, EBSCOhost, viewed 4 November 2012.

SALMON, A 2011, 'Samsung's Mr. TV', Forbes Asia, 7, 5, pp. 28-31, Business Source Complete, EBSCOhost, viewed 4 November 2012.

O'Reilly, L 2012, 'Samsung unveils biggest marketing effort', Marketing Week (Online Edition), p. 7, Business Source Complete, EBSCOhost, viewed 4 November 2012.

Rocks, D, & Moon, I 2004, 'SAMSUNG DESIGN', Businessweek, 3911, pp. 88-96, Business Source Complete, EBSCOhost, viewed 4 November 2012.
References
Presented by:
Ajay Rathore
Carlos Calva
Isha Gupta
Sagar Chandra
Sindy Ma
Brand Loyalty: When consumers become committed to your a and make repeat purchases over time (Investopedia, 2012)
Full transcript