MARKETING

Samsung Electronics- Canada



Samsung Electronics-Canada

Introduction

The Samsung Electronic Canada (SECA) located in Mississauga, Ontario is a wholly owned operation subsidiary of Samsung Electronics group that works within North America. (Hutson, 2008, Pp. 110-200) The Canadian consumer market consists of four components:

1- High-income families

2- The young generation

3- Business users

4- Hobbyists

All consumer electronics were sold at large specialty stores like Best Buy and Future shop. Customers have also been able to order online. Samsung developed a demand forecasting system for optimizing inventory levels to enhance their distribution efficiency. (Chris, 2010, Pp. 55-190)

A. External and Internal Factors affecting the Samsung Electronics Company in Canada. SWOT and the PESTEL analysis

Samsung's target market had ranged from the hobbyist to high-income families. The Canadian repositioning initiative of Samsung was designed to make them a premium consumer brand. The action that must be taken to actually reposition a brand involves changing the target market or changing the value position of the brand. According to Chris,” A company discovers different needs and groups in the marketplace, targets those it can satisfy in a superior way, and then positions its offers so the target market recognizes the company's distinctive offerings and images”. (Chris, 2010, Pp. 55-190) Elite brands sell the consumer on the benefits of possessing the commodity. The marketing strategy will focus on the re-birth of a new and improved Samsung experience. Everything from packaging to brand image will be upgraded. The consumers must see the reset in the new value of Samsung's products. This must all be done without losing the customer base that Samsung has developed. (Vikas, 2010, Pp. 1-10)

The short-run costs associated with repositioning the Samsung brand in Canada involve expenses in advertising, promotions, and developing the new distribution strategy. A new advertising campaign focused on the Canadian market will be developed. The focus of the campaign will specifically target consumers that are technologically perceptive with less price sensitivity. Most consumers will pay a premium for perceived value. The promotions budget will reinforce this Canadian theme. Focus groups and surveying materials can achieve an idea of what Canadian consumer's value. The company should position itself as a state of the art technological trendsetter. The other financial costs will be to change the distribution process of SECA. A new purchasing experience will show the consumers that Samsung is committed to a quality-buying encounter. The Future Shop/Best Buy retail pricing strategy would be changed to reflect the improved commitment to owning a Samsung electronics product. The customers that purchased from Best Buy and The Future Shop will be invited to be the first adopters to purchase the upgraded product. (Vikas, 2010, Pp. 1-10)

SWOT analysis

Strengths

Strong R&D team: Samsung is highly skilled in converting ideas into products. With highly skilled R&D team Samsung has a great potential of bringing new technologies to market quickly. Being the successful introducer of products such as PDA's, MP3, digital televisions in 2000, highly proves the R& D potential of Samsung.

No Requirement to develop products for Canadian market: Samsung doesn't have ...