Analyzing marketing mix of samsung electronics CO LTD from 2018 to 2020 in vietnam

Abstract Understanding consumer behavior is very important for every company in its marketing activities; Marketing Mix is ​​one of the most important aspects consumers have in making purchasing decisions, especially when it comes to buying and using Samsung smartphones However, previous studies often focused on analyzing the companys business strategy and SWOT model, this study will talk about the Marketing Mix analysis of Samsung in Vietnam from 2018 to 2020 The purpose of the research is to.

in the company's marketing, identifies strengths; finds outstanding problems, and solvesthem.

Keywords:

Marketing-Mix, Samsung, Vietnam, 2018-2020, 4Ps

Table of Contents

Chapter 1: Introduction 1

1.1 Rationale 1

1.2 Aims 2

1.3 Scope 2

1.4 Significance of the study 2

1.5 Structure 3

Chapter 2: Literature review 4

2.1 Overview of the Company 4

2.1.1 Historical development 4

2.1.2 Involving industry, Scope of operation 6

2.1.3 Competitive advantages: 6

2.1.4 Overview of market share, revenue 6

2.1.5 Company’s Problem 9

2.2 Concepts and Definitions 9

2.2.1 Marketing Mix 9

2.2.2 The role of Marketing-mix in sales activities of enterprises 9

2.3 Theories 10

2.3.1 Product 10

2.3.2 Price 10

2.3.3 Promotion 10

2.3.4 Place 11

2.4 Previous studies 11

2.4.1 Amazon Business Strategy: cost leadership & customer centricity 11

2.4.2 Vinamilk's "slowly but surely" business strategy 11

2.4.3 SWOT analysis of Samsung 2019 – Why is Samsung constantly growing? 11

Chapter 3: Methodology 12

3.1 Research design (Source: Kummar, 2010) 12

3.3 Data collection 13

3.4 Data analysis 13

Chapter 4: Finding and Discussion 14

4.1 Product 14

4.1.1 Performance 14

4.1.2 Assessment 15

4.2 Price 15

4.2.1 Performance 15

4.2.2 Assessment 16

4.3 Promotion 16

4.3.1 Performance 16

4.3.2 Assessment 19

4.4 Place 19

4.4.1 Performance 19

4.4.2 Assessment 20

Chapter 5: Conclusion and recommendations 21

5.1 Conclusion 21

5.2 Recommendations 21

References List 22

Chapter 1: Introduction1.1 Rationale

Samsung Electronics Co., Ltd is a subsidiary of Samsung Group This companymainly focuses on the field of electronic technology In 2018, Samsung announced plans

to raise investment levels in areas that are likely to drive the company's growth in thefuture and has committed to invest 25 trillion KRW over the next 3 years, mainly fromElectronics Co Samsung, into the fields of artificial intelligence In which, Samsung isthe company that maintains the largest market share, which is the biggest potential forSamsung's development in Vietnam Samsung has decided to segment its products fromhigh to low prices

Overall, Samsung has constantly launched new phone lines, with increasingly catching functions and designs, so revenue has tended to increase in the past 3-5 years.More specifically, the market research GfK has released data on the Vietnamesesmartphone market in 2017 Apple However, in the last three years, Samsung'scompetitors are no longer just Oppo and Apple, but Samsung has been under pressure tocompete with local smartphone brands like Vsmart (Ictnews, 2021)

eye-This research paper mainly talks about the Marketing Mix analysis of SamsungElectronics in Vietnam in the last 3 years The role of the marketing mix is an importantelement of every business model As a result, it is possible to plan the most suitablemarketing strategies The Marketing Mix consists of four main roles The most importantroles are to provide specialization, which in turn helps to allocate responsibilities to eachmember, work to be broken down to ensure SMART, and provide valuable data forresource allocation (Luong Hanh, 2021)

In 2019, Samsung's global brand value was the largest in Asia and ranked 4th in theworld To achieve the above success, Samsung has implemented effective and successfulMarketing Mix 4P strategies in increasing brand awareness and attracting customers.Samsung has built and implemented effective Marketing Mix strategies according to the4P model Thanks to that, the company has achieved many successes such as: improvingbrand awareness and attracting a large number of trusted customers to use the product,helping the company develop and stabilize revenue (MISA AMIS, 2021)

There are many studies related to the Samsung company, one of which is the SWOTanalysis of Samsung 2019 - Why Samsung keeps growing, conducted by Tam Tran Inthis study, the author used research methods to point out the strengths, weaknesses,opportunities, and disadvantages of Samsung in 2019 Another study is to analyzeVinamilk's Marketing Mix strategy Conducted by Tuyet Vy, this study helps answer thequestion "How over the years Vinamilk has maintained its position in the Vietnamesedairy market?" However, there is no research that talks about analyzing Samsung'smarketing mix, and the importance of 4Ps research to Samsung's growth.

1.2 Aims

The purpose of this is to analyze the Marketing Mix Strategy of Samsung ElectronicsCo., Ltd in Vietnam from 2018 to 2020 Besides, analyzing and providing the necessaryinformation most accurately helps businesses determine the goals of customers andpotential customers for their products/services From there, provide an overview of thecompany on production methods to increase profits

1.3 Scope

In this research paper, I focus on researching the smartphone field of the electronicsindustry of Samsung Electronics Co., Ltd from 2018 to 2020 in Vietnam By analyticalmethod using secondary data, I will study the Marketing Mix strategy, specifically thecompany's 4Ps model

1.4 Significance of the study

There are three main factors when it comes to the importance of research to acompany's situation First, it is the connection of the business to the consumer and viceversa Help orient businesses need to provide the right products and services that themarket needs, following the tastes, trends as well as purchasing ability of consumers Thesecond element, Marketing Mix is the operational process that helps businesses runsmoothly In the stages of the consumer goods business, competition is increasinglyfierce Goods must fully ensure many factors from quality, price to standards when put

on the market to gain trust from consumers Finally, promotional activities helpbusinesses create advantages Trade promotion activities have created advantages as well

as outstanding differences for enterprises in market competition

Chapter 2: Literature review2.1 Overview of the Company

Samsung Electronics was founded in 1969 and quickly became a majormanufacturing company in the Korean market It is a subsidiary of Samsung group Bythe end of 2013, Samsung was present in a total of 90 countries with 673 offices globally.Currently, with the success of the electronics business, Samsung is a leader in thetechnology industry and currently ranks in the Top 10 globally recognized global brands(Samsung, 2021)

2.1.1 Historical development

* Mission, and vision statement:

Mision Statement of Samsung: “We will devote our human resources and technology

to create superior products and services, thereby contributing to a better global society”(Alegre et al., 2018) According to its mission statements, Samsung has

identified human capital and technology as the two key factors it uses to pursue its grandgoals in today's industry In other words, the superiority of products and services iscentral to the mission of a consumer electronics company In terms of relationships, tohave a positive impact on a global scale, the company has embarked on numerous cross-border acquisitions (Victoria Martin, 2019) Enhancing global and social influence is key

to linking the mission statement to the technology company's vision statement

Vision Statement of Samsung: “Inspire the world with our innovative technologies,products, and design that enrich people’s lives and contribute to social prosperity bycreating a new future” (Alegre et al., 2018) Samsung often refers to a different version ofits vision: “Vision 2020: Inspire the World, Create the Future.” The company'sproducts, such as smartphones and laptops, are notable for their technologicalinnovation For human life and society, Samsung's corporate vision about its missionstatement includes a global reach and a goal of contributing to the betterment of society

* Historical development

Figure 2.1: Samsung Historical development chart

Table 2.1: Historical development of Samsung from 1969 to 2020

2.1.2 Involving industry, Scope of operation

Samsung has more than 60 products leading the world in the fields of: digitaldisplays; mobile phone; Audiovisual equipment; computer products; electronic devicesand semiconductor chips Samsung currently has 16 excellent products in the globalmarket, including DRAM, color cathode TV, SRAM, glass base, tuner, CDMA mobilephone, display screen, memory flash, LCD driver IC (LDI), mobile phone PCB (mobilephone board), ABS flame retardant, Dimethyl Formamide (DMF)

Samsung Electronics has operations in more than 58 countries and employs morethan 280000 workers Samsung took advantage of the mission during the opening period

of Vietnam, investing heavily in Vietnam In addition, Vietnamese people tend to prefer

to use foreign products When the quality of domestic goods is not inferior to foreigngoods, the general mentality of Vietnamese people still prefers to use foreign goods(Samsung, 2019)

2.1.3 Competitive advantages:

Currently, in the world of the Electronics industry, Samsung is one of the top threecompanies The first competitive advantage is a strong commitment to research anddevelopment Samsung always searches and researches customer requirements beforecompetitors The second competitive advantage is the ability to invent and designproducts They have received several awards for their innovative and well-designedproducts over the years Finally, there is a combination of Japanese and Americanstrategies (Faizul Haque, 2021)

Several other advantages also make Samsung one of the world's three largestelectronics manufacturers: a culture that accepts artistic differences and adapts itsapproach to original requirements; quality products at low cost; chain force anddistribution advantages as well as affordable advanced technology All these competitiveadvantages have enhanced Samsung's character and worldwide success

2.1.4 Overview of market share, revenue

* In 2018

Graph 2.1: Smartphone market share in Vietnam in 2018

The company's success is due tothe mid-range Galaxy J series when 60%

of the products were sold It can be seenthat the demand for smartphones at theend of 2018 requires stiff competitionbetween Samsung and Oppo, with No 2positions in the statistics table not contradicting but it is far behind other brands (Cafef,2019)

Samsung Electronics HCMC CE Complex in Ho Chi Minh City generated 4.23trillion won in revenue

S10 and Galaxy Note10 However, these names do not help improve Samsung's service.Many people think that Samsung's lowering of the query rate will be an opportunity forOppo's growth (Ictnews, 2020)

In 2019, the total profit of 4 Samsung accessory companies in Vietnam was onebillion won, up to 1.57 million billion VND Compared to Vietnam's GDP in 2019,Samsung's profit was 26% In 2019, the after-tax profit of four Samsung companies inVietnam was more than 103,000 billion VND, a slight decrease compared to more than105,000 billion VND in 2019 (Vietnambiz, 2020)

Oppo, and Apple

will not change in

the short term,

while the rankings

of other brands may change drastically

In 2020, an aggregate of these four companies recorded $ 67 billion in profit and$ 4billion in profit, down 4% and 13$ independently compared to 2019 The largestenterprise and the most contributing to the below business results is SEVT in Thai

Nguyen with a profit of nearly $26 billion and a profit of nearly $2 billion (Vietnambiz,2021).

2.1.5 Company’s Problem

In 2020, Particularly in the second quarter of 2020, Samsung Display Vietnam lostabout VND 2.7 trillion, the largest loss ever On the profit side, the screen businessSamsung Display reported a loss of about VND 2.7 trillion after having made a profit forthe previous 4 quarters While Samsung Display suffered a loss, the profits of SamsungBac Ninh and Samsung Thai Nguyen both decreased compared to the first quarter of

2020 but increased slightly compared to the same period in 2019

2.2 Concepts and Definitions

2.2.1 Marketing Mix

Marketing - Mix is popular term, first used in 1953 by Neil Borden when he was thepresident of the American Marketing Association Taking his ideas and adding orsubtracting, we have some definitions of Marketing-Mix According to Professor PhilipKotler, “The marketing mix is a set of controllable marketing variables that businessesuse to try to build the desired response from the consumer market (Philip Kotler, 2000)

A famous marketer, E Jerome McCarthy, proposed to classify the Marketing Mixaccording to the 4Ps in 1960, and it is widely used today Marketing Mix includes thefollowing 4 elements: Product; Price; Promotion and Place With services, depending onthe characteristics of the type of service, there will be different ways of applying for theabove 3 additional factors (Nhan Pham, 2020)

2.2.2 The role of Marketing-mix in sales activities of enterprises

The marketing mix helps the company to grow sustainably and stably in the marketbecause it gives the ability to adapt to the changes of the market and the externalenvironment The role of the Marketing mix is to create the link between theorganization's production and the market at all stages of the reproduction process(ATPContent, 2021)

is important to have a marketing plan for the product for each stage of its life cycle.

2.3.2 Price

Price is the monetary value that a customer must pay to obtain or own a business product.This is an important factor in generating income for the business Pricing decisionsshould be handled with extreme caution as this is a double-edged sword If your product

is overpriced it can give the impression of high quality Also, it's easier to order yourproducts in standard and limited stores

2.3.3 Promotion

This element has 2 purposes First, advise customers on the potential of the product, andsecond, convince them to use it The advertising mix includes different mediums that youcan use to communicate with your target audience An effective promotional mix willensure good sales and marketers should strive to create an enabling environment In

addition, the promotion strategy will include potential platforms in the niche where yourproduct can e promoted and even sold.

2.3.4 Place

Physical location or distribution involves the transfer of ownership of the product fromthe manufacturer to the customer Profit margin depends on freight speed The faster aproduct reaches the point of sale, the more likely it is to satisfy customers and increasebrand loyalty Therefore, the location factor plays an important role in ensuring thecompetitiveness of products in the market (Mageplaza, 2021; Yourbusiness, 2021)

2.4 Previous studies

2.4.1 Amazon Business Strategy: cost leadership & customer centricity

The report was written by John Dudovskiy The problem is Amazon's BusinessStrategy is guided by the principles and how to do it This report uses a secondaryresearch method The result was Amazon's business strategy includes 4 platforms:Constantly penetrating new niches and segments; Strengthening the Amazon ecosystem;Uncompromising focus on customer service; Focus on Amazon's Leadership Values

2.4.2 Vinamilk's "slowly but surely" business strategy

The report was written by Nguyen Kim Khang This has resulted in the analysis ofVinamilk's business strategy we can see their ambition The company started y ringingcapital and buying shares of foreign dairy companies gradually entering the internationalmarket so far it has also made some achievements

2.4.3 SWOT analysis of Samsung 2019 – Why is Samsung constantly growing?

The report was written by Tam Tran The problem is how does Samsung always maintainenough revenue and profit when during future growth? This report uses a secondaryresearch method This has resulted in knowing the challenge Samsung faces in reducingits over-reliance on the US market and exploring its potential to operate in other markets.This can become a dilemma for business