samsung case analysis Essay

Submitted By upreti99
Words: 1935
Pages: 8

UTD ID- SXU140230
MKT 6301.5U1

Ans 1. The main marketing challenges are:

1. Brand Recognition: SEC wants to make it into the global platform but it is viewed as a “cheap OEM” manufacturing company because it sells all products to major OEMs who sell these products under their own name. SEC has a wide range of products, which are distributed and marketed by different agencies with inconsistent brand message, logo and presentation. The company emphasized more on manufacturing quality, technical leadership and supply chain activities. To become global SEC should have a consistent image throughout the globe.

2. Difference in marketing strategy and practices: The top management wanted to transform Samsung from a “cheap OEM” to a “high value-added products provider” but the Marketing head faced a real internal problem from his own team as the regional managers had different view point about marketing. They did not understand the basic difference between sales and marketing. They thought marketing is equal to selling, and felt that marketing should be emphasized more when the product is weak. When the employees do not understand the value of brand and how to market the company, it will very difficult to for SEC to move forward.

3. Budget Distribution: It is the most important aspect of any marketing plan. SEC marketing budget was controlled by Product Managers, who use to allocate it to “below-the-line” price promotions, which were more focused to meet short term sales targets instead of long term “above the line” brand building. These allocation were set as a percentage of the current sales rather than in relationship to growth potential. The company could not market a low selling product because of this constraint. It is not compulsory that the product is not selling because it is bad, it could be due to less awareness or because it was not targeted to the wright consumers.

Ans 2a. To tackle the above challenges, the first alternative solution will be that SEC should form a dedicated marketing team/unit consisting of experienced leaders and employees who believe in the company and its products. They will create, administer and execute the global advertisement campaign. The global marketing team will be assisted by all the regional teams to ensure all the required information is exchanged between the regional and main office i.e Periodical data of sales, inventory, market and competitors etc. This will make sure that the higher authority is aware all the time about what is happening in the market, which will help them to take appropriate decisions. They will use a single promoter/agency for all the marketing related activities like market survey, ad campaigns, promotional events etc. They will market only a single brand name and its logo. There will be no inconsistence regarding the company presentation and its message. This team will use industries best practices to bring SEC name to the global arena. This business unit will layout the global marketing plan. Using proper analysis, industry guidelines and most advanced technology will price the products for different countries, allot the budget for different product segments and for different countries. Pros
1. Advertisement will create more awareness about the company.
2. Proper pricing and budgeting will make the better use of the money.
3. Central administration will make work flow better
4. Higher probability to find new business opportunity
1. Huge challenge for a single business unit to operate so many tasks.
2. Ad campaigns directly does not affect sales numbers by a large margin instantly
3. Risk of using only single agency i.e monopoly by being the only provider
4. High initial cost to set up technology driven analytical department
Ans 2b. The second alternative to compensate these marketing challenges is to create a marketing strategy to make SEC presence global. Creating different profit centers departments to look over