Most technology consumers had come to associate Samsung with poor quality products. In order to alter the perception with regards to its products, Samsung came up with a restructuring process through a careful study that saw them alter their marketing strategy to meet these challenges. Samsung Electronics altered its strategy from technological segmentation to lifestyle segmenting. They started by carrying out extensive market research aimed at manufactured products, which were reflective of the customers’ lifestyle rather than those with technological features that were specific. By using segmentation by lifestyle, Samsung segmented their market followed by product positions.
Samsung focused, on the quality of their products in their marketing, to change the image that consumers in the market had in their products. Samsung implemented quality initiatives like six sigma and various initiatives of manufacturing, like assembly manufacturing, to enhance their output via optimal resource utilization. Samsung also developed new products that were technologically superior and innovative. They developed products that were high end and fun for the phone sector to appeal to the preferences of customers in the market. Samsung integrated features like access dictionaries and the religious texts to appeal to local consumers. In addition, their 50-gram phone was introduced that while it did not significantly increase sales volumes, aided Samsung in projecting its image as a high-tech company. Samsung also associated their company with sport events, for example, by becoming the official sponsor of the Seoul Olympics that boosted its visibility worldwide.
Q#2: Compared to established rivals like Sony, Matsushita, and Nokia, Samsung was a late entrant in the global consumer electronics market. Comment on Samsung’s brand building initiatives in the global consumer electronics market.
Samsung, beginning in 1993, sought to create a global brand and ...Show more