Moreover, such strategy would have to be formulated keeping In view competition from European, Japanese and other Korean companies ho had similar aspirations, and the interests of current customers. The revolution?C,-1?0 that was taking place offered Samsung a real opportunity to dominate the consumer electronics market, but that rested heavily upon Mr.. Actions. Moreover, any erroneous decision would detract from the entire purpose of the brand-building endeavor. So Mr.. Park would have to proceed with caution and make the decisions that would reposition Samsung as a premier brand.
Сnonuser electronics division, which was virtually unknown in the started gaining prominence in the Owing to superior genealogical prowess, impressive research and development capabilities and a lean organizational structure, by 1997, Samsung had introduced a series of innovative consumer products. This enabled it to establish the brand as a provider of cutting- edge innovation. Despite these successes, name still carried strong associations with the past, when it dealt it in low-to-mid range products.
This was a major reason why, in spite of bringing new products to the market, in the western markets, Samsung did not enjoy the status of a market leader. A SOOT analysis reveals the following- Strengths Ability to bring new products to market. Weaknesses Weak brand name, due to strong associations with the past, when the organization dealt in low to mid-range goods. Opportunities The current Digital Revolution. Threats Competitors, who have strong brand names and so command greater brand loyalty from consumers.
They were known to make large, one time purchases such as high quality television sets and were extremely brand conscious. ?-?’?CE Young generation: These are consumers who are in their teens and early They are not brand loyal and are highly informed about technologies. Due to financial constraints, they tend to make smaller purchases. Products such as hand-held devices and MPH players are hugely popular amongst them. ?-?’?CE Business users: This segment made purchases based on reliability and on a ability to satisfy a specific need.
Customer support and service were major influences in purchases made by this segment. ?-?’?¦Hobbyists: This is a niche segment that enjoyed building their own electronics, using off-the-shelf components. They are extremely price sensitive and sales to this segment are modest. Recommended strategy Samsung is trying to build a premier, upscale image. The two most prominent segments in the market are the high-income families (profitability) and the business users (volume). To a lesser extent the younger generation is important followed by the hobbyists.
By developing the premier image, Samsung will be able better penetrate in the fast growing high-income families segment and the business users. Samsung already has the products that satisfy that these segments demand. While developing the upscale image will take care of the first two segments, advisable for Samsung to focus on the younger generation and hobbyists segments as well. The younger generation users will eventually become a part of the high- income families or business users segment (or even hobbyists segment).
So by tapping into them early in their lives, Samsung may be able to develop life-long customers. Hobbyists have superior technological knowledge and so could potentially influence the purchasing decisions of members of other segments. By developing nylons as customers, Samsung could other segments, due the spill-over effect. 2) Product Detente Trot Increase In sales Samsung Electronics Canada deals in two broad product categories Consumer electronics and appliances and information technology goods. These are segregated as follows: Products marketed by Samsung Electronics Canada
Samsung Electronics Canada had focused on building sales through Consumer electronics specialty chains. For this reason, it adopted a partner like approach towards them, often involving them in product mix decisions, product development process and assisting them with demand forecasting and sell- through data exchange system. Recently it had been suggested that Samsung outdraw from mass merchant retailers as their discount image could hamper the premier image that Samsung was trying to achieve. Management even suggested that Samsung open its own nationwide retail chain, I. E. Flagship stores, from where it coo a Illustrated Samsung products, exclusively. Distribution is a very important aspect in branding.
Distribution should expansive enough to reach out to the target population as well as exclusive enough to be valued by those who purchase the product. Samsung has a very satisfactory distribution network in Canada. Specialty stores account for 53% of its sales and Mass merchants count for 30% of its sales. Contrary to suggestions, Samsung cannot afford to drop any mass merchants from its distribution mix. They account for a significant portion of sales which cannot be substituted immediately, by any other channel. Samsung should market its commodity-like, price-sensitive products, through such channels and reserve the higher-end, technologically superior products for Specialty stores and Office Supply stores.
This would help to disassociate the commodity like products from the technologically superior products that are endorsed by the advertising and branding efforts. Company owned stores have an inherent advantage, however, given the limited nature of resources, it is not advisable for Samsung to invest in a nationwide chain of retail stores. Moreover, consumers prefer making consumer purchases from big box retailers as opposed to company owned stores. For branding and advertising purposes, Samsung Electronics Canada could open one store each in major locations such as Ontario and Quebec, where it could display its latest innovations. Samsung must start selling its products via the internet.
This channel will experience growth in the coming years and will boost reserve by serving as an advertisement vehicle. CONCLUSION In the already cluttered Canadian consumer electronics market, Samsung Electronics Canada can aim to achieve growth only by differentiating itself from its competitors. Its objective is to reposition the Samsung brand name in the minds of its target consumers, as a brand that is synonymous with cutting edge technology. To accomplish this, Samsung will have to engage in an intense brand repositioning campaign. Successful implementation of such brand repositioning strategy will help establish Samsung as a brand to reckon with, in the consumer electronic goods industry.