Princessa Beauty Products 5 Harvard Case Study Analysis

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Princessa Beauty Products 5 Case Study Solution and Analysis


Historically, the business's core consumers include the Original Devices Manufacturers (OEMs), which utilized to sell Princessa Beauty Products 5 Case Study Analysis items withtheir own brand name. Its client circle includes Original Devices Manufacturers (OEMs), who used to sell Samsung products with their own brand name. He repositioned Samsung as a global brand name and informed his divisional managers to comprehend marketing and its significance.

Problem Declaration

Samsung's transition from an item based to a marketing business is not going as efficiently as planned.Overcoming the hesitation of divisional managers to include marketing efficiently is still a major obstacle. Creating a consistent brand name identity across the entire world and using marketing techniques that best fits the regional culture is no simple task. The M-net program analysis have actually been truly helpful in figuring out the high and less potential growth locations, but allocation of resources appropriately is not well received amongst the supervisors. There is no consensus among the hierarchy relating to the best matched future method.

Situational Analysis

Princessa Beauty Products 5 Case Study Analysis efforts for developing its brand name throughout the world was begun after presenting the "brand-new management effort" by Chairman Lee in 1993. The goal was to transform Samsung from a low-cost OEM to a high value-added item service provider. To make the vision of Samsung a reality, Chairman Lee selected Yun as a vice chairman in 1997. Yun had a quite clear photo in his mind about how Samsung can change from a low end to a high end product supplier. He knew that transformation can just be done through placing Samsung as a business offering high-end products and this could just be done through high level of marketing.

In spite of having a clear vision about how to develop Samsung brand, with a possible support of its executives, Yun faced a number of marketing challenges in early years of its efforts.

One of the marketing difficulties for Yun was the perceptions of executives about the worth of marketing. They thought about marketing and selling as very same tools and thought that quality items do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous business practices, and the present marketing requirement was too much high, the space was too wider and to fill this gap with wrong understandings about marketing was rather difficult for Yun.

As mentioned above, marketing focus was very low in previous practices, for that reason there were no appropriate marketing budgets for each of the item on the portfolio. There was no marketing preparation done for the existing items. Along with it the item range of the company was increasing with the ripening of brand-new item concepts by the R&D sector of Samsung. Yun had an obstacle to perform marketing planning and to create marketing budgets for existing as well as for brand-new items from the very beginning, and this would take a big time.

A huge shift would be needed in present marketing expenditures to develop the Samsung brand. This would result in increased marketing expenses for Samsung and might disrupt the administration concerning increased costs, as they were hesitant to marketing expenses previously and a sudden huge shiftwould make them disturb.

Internal Analysis
SWOT Analysis

Princessa Beauty Products 5 Case Study Help strengths lie in its substantial item portfolio. Samsung has largest number of patents in the industry with overall number of 15499 patents given in US( USP).

Another strength of Princessa Beauty Products 5 Case Study Solution is its capability to develop ingenious products at a continuous rate. It major proves for the development and product creating of Samsung is that the company has actually gotten numerous awards for its innovation and product style.

Unlike Apple and other competitors, Samsung is focused on producing devices which can be quickly incorporated with any type of open source Operating System (OS) and software. This supplies Samsung an edge over Apple gadgets.

Samsung's ability to produce high-end products at low cost of production is also among the significant strength of Samsung as it enables the company to capture more market by providing quality items with expense control.

Weak points

Princessa Beauty Products 5 Case Study Solution weak points are concealed in the business's reliance on outsourcing software for its gadgets due to company's inability in establishing software, unlike Sony. Samsung also has low revenue margins as compare to Apple due to huge difference in the costs of Apple and Samsung with a much lesser difference in quality. The diverse focus of the company due to large number of items in its portfolio, result in the less efficient production and make the business unable to charge higher prices like Apple. The business is also inefficient in handling its patents and often deals with the problem of patent offense.


Opportunities for Princessa Beauty Products 5 Case Study Solution lie in the growing Smart device market and the business's efficiency in the market. Samsung currently runs in about 80 countries and the company has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia.


The dynamic industry environment of innovation market position an extreme danger on Samsung's survival and require the company to spend much of its incomes share on R&D in order to make it through in the long run. The market saturation in developed nations i.e. saturation of mobile business is also a huge threat for the company's development in the presence of strong competitors like Apple.

4 P's of Marketing


Samsung uses quality items and has a rather rich portfolio which caters to different sections. LCD and mobile phones are the most significant items of Samsung, whereas DRAM is also not far behind in contrast of them.

• Laptops.
• Cellphone.
• Air conditioner.
• Desktop computer.
• Hard disk drives.
• Washer.
• Fridges.
• Cams.
• Microwaves.
• Flash memory.


Princessa Beauty Products 5 Case Study Analysis uses both market competitive and market skimming rates methods for its variety of items. In competitive pricing it changes the price according to the competition in order to gain advantage, whereas, it utilizes market skimming strategy where the product has an added worth and by offering a few products it can reach break-even.


It has among the best supply chain networks, with retail distributors, their own sole distributors, E commerce channels like Amazon and so on. All its products are timely supplied to the selling place/ delivered to the consumers straight in case of online order.


It wasn't a well-known company outside of Korea up until 1993. The management effort taken by their CEO has actually pressed them to market more efficiently outside the borders and now it has entered the league of top 25 companies in the world in simply 9 years. This is an amazing achievement despite the ongoing arguments amongst the managers about embracing marketing practices. It utilizes both offline & online channels of promotion to market their items. Paid item advertisements, social promo and digital ads are utilizes to produce awareness about Samsung products.

Value Chain Analysis.

It's an analytical structure for identifying business activities that include worth or competitive advantage for the business.

Incoming Logistics.

It has one of the most reliable and effective supply chain network and has over 2700 suppliers throughout various markets all over the world. Practically 80% of which is based in Asia and the staying worldwide. For its inbound logistics it owns various logistics firms as it subsidiaries. It cares for its providers and produces an unified relationship with them and even lowered their payment cycles to improve this relationship even more which includes value to their chain network.


Samsung's core competency is its mass manufacturing it produces 90% of its products in-house. Divided into three different divisions its operations are specifically IT & Mobile Communications, Gadget Solutions and Customer Electronics. It is keeping operation centers worldwide to even more include worth to its worth chain network.

Outbound Logistics.

Its outbound logistics system performance is among the main factors Princessa Beauty Products 5 Case Study Analysis has the ability to take on Apple. Samsung's own Electronic Logitec system plays a major function in the outgoing logistics operations. It even performs the jobs of collection of payment, settling insurance claims, etc. on behalf of Samsung.

Marketing and Sales.

Attracting target customer attention towards the product is done through marketing and sales to interact with them the worth and competitive benefit the product offers. Princessa Beauty Products 5 Case Study Solution advertising budget is continuously increasing since they began their repositioning internationally and will continue to do so as they are continually aiming to invest and expand in high possible growth markets. The budget plan is spent on events, print and media ads, public relations etc.

Samsung Service. Samsung put their consumers at the top and continually strive to deliver unmatchable client service standards. As after sales service is ending up being exceptionally important to keep clients pleased and engaged, they even conduct studies through third parties to discover their client's feedback and execute it in the positive way to lower or if possible totally remove their customer issues. By adding a direct assistance line to call them 24 hours they have actually further increased the added worth of Princessa Beauty Products 5 Case Study Help service.


Princessa Beauty Products 5 Case Study Help has actually diversified market segmentation, based upon its provision of vast array of items to large number of customers. Samsung target consumer sectors can be divided into 3 classifications i.e. Princessa Beauty Products 5 Case Study Analysis IT and Mobile Communications, Samsung Customer Electronics and Samsung Device solutions.


Princessa Beauty Products 5 Case Study Help geographical division is based upon 2 requirements i.e. region and density. Samsung serves about 80 countries worldwide with its products offered to Urban as well as Rural areas of the country. The Samsung is also growing its global existence and the business's versatility in finding its plants motivates worldwide growth of Samsung.


Samsung produces items that can be used by both males and women. The target customers for Samsung IT and mobile interaction items have an age range of 18-65 with bulk at a young or recently married life cycle phase. Apart from it, Samsung Consumer Electronics are targeted to a client segment with an age range of 25-65.


The psychographic segmentation of Princessa Beauty Products 5 Case Study Solution s based upon the social class and the life style of the consumer. Samsung target customers on the basis of social class are generally upper middle, middle and working class customers, as Samsung offer items like mobile phone very little cheaper i.e. Motorola in addition to very little pricey i.e. Apple. It supplies quality items to middle level customers at a somewhat high price than others targeting the very same sector.


Princessa Beauty Products 5 Case Study Analysis majority target clients have unique behavioural attributes. They are brought in towards Samsung because of its moderate rates with an extent of quality.

Quantitative analysis.

Sales of Samsung has increased astonishingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net revenue of.48 billion $ to 5.9 billion $. It has actually likewise lowered its debt from 15 billion $ to 4.6 billion $. Digital media is the biggest selling classification of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Incomes/ sales are increasing but net profit is not increasing accordingly because of the high overhead cost. New expansions and hiring's were the primary factor of the boost in the overhead expenses, with china presently not supplying any revenue to Samsung, however there is a lot potential in the present market with 75 % yet to be explored.

Qualitative analysis.

Whereas, the core strength of the company is currently producing but long gone are those days when great items were selling themselves. Kim has actually currently begun to enhance the marketing activities of Samsung and extremely quickly it will become one of its core strength like making if not better.



Samsung runs styles, produces and offer a huge portfolio of consumer electronics. It runs in an incredibly competitive environment and has actually effectively positioned itself as the maker of quality items. So, the response is yes.


As, stated earlier that Princessa Beauty Products 5 Case Study Help operates in a highly competitive environment, which suggests all the business have comparable items. So, the answer for rarity is no.


Due to the nature of the market, it is extremely easy for competitors to understand the functionality of the products and easily make their own designs. Yes, Samsung is just behind IBM in signing up brand-new patents each year, but the advantage is really short term in this market.


Chairman Lee has completely turn-around Samsung, from going almost insolvent during the Asian monetary crisis of 1997 to the top 25 company on the planet. Absolutely yes there appertains company in the business and the results promote themselves.

External Ecological Analysis

PESTLE Analysis


Being an international brand spread practically in every country worldwide, bulk of the environments like USA, Europe, China and so on, are extremely conductive for its operations. Nevertheless, it faces some political pressures in less developed countries where order scenario is bad. Latin American, African and some Asian countries fall in this category, where political instability do have an impact on Princessa Beauty Products 5 Case Study Help operations.


Purchasing power of customers is important for business like Samsung to be successful and grow. Emerging markets like India, middle-eastern countries etc. provide development opportunities, whereas, due to recession even the customers of industrialized nations suffer severely. It is extremely essential for the business to keep an eye on the ongoing economic scenario of the country before getting in the market.


Multinational companies need to face different social and cultural concerns during its operations in a foreign nation. Samsung has likewise dealt with many concerns but have actually embraced to the regional environments of most of the nations remarkably well. It has customized its products, practices, policies etc. accordingly in order to succeed.


With an annual expenditure of 2.4 billion dollars in Research & Development, and with continuous innovative item launches, Princessa Beauty Products 5 Case Study Analysis is among the leading innovative business of the world. With a clear objective to be ahead of the rest when it pertains to technological advancements, Samsung has risen to the no 25 of the leading effective business of the world.


Each country has their own laws and policies, being a multinational business Samsung have to strictly follow those laws in their jurisdictions. Failure to do so, will result in major legal effects. It has to study or work with a local law professional prior to starting its operations in a particular nation.


With the increasing awareness among consumers about the environmental & ethical infractions of business, Samsung has to ensure that it follows all the safety standards. Environmental damages, ethical misbehaviors are not acceptable and in some nations the repercussions can be really severe. On the other hand it needs to do some Business Social Obligation practices to show the locals that it cares about their environment and people.

Porter's 5 Forces

Threat of Replacement

Hazard of replacement for Samsung's each product category is quite significant. Running in an incredibly vibrant market lead the business to deal with a high danger of substitution. Aspects for high danger of substitution for Princessa Beauty Products 5 Case Study Solution Smart device include the presence of high variety of suppliers and Market saturation in industrialized nations, which make the cost of changing for customers practically zero. Substitution risks for Samsung visual screen depend on the changing life style of clients. Customers can switch to seeing visuals in the house towards outside activities. In addition to it, Samsung printing solutions items are threatened by the increasing destination of consumers towards cloud storage.

Rivalry Among Existing Companies:

The rivaly amongst Samsung and its close rivals is extreme. The major reason behind this is the technique of market saturation in different number of item classifications, requiring Samsung to present more ingenious features in existing products and brand-new innovative products to maintain its development. The major rivals for Princessa Beauty Products 5 Case Study Solution samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO and so on.

Princessa Beauty Products 5 Case Study Solution has a large supply chain consisting of about 2700 providers across the world.( Samsung Sustainability Report, 2016) Supplier's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of prospective size and worth. These big orders make it possible for Samsung to negotiate costs with its suppliers. Due to incapability of Samsung to develop its own software application, it has to outsource its software application development to Google, which ends up being a potential provider of software for Samsung, resulting in high bargaining power of Google. In many of Princessa Beauty Products 5 Case Study Analysis has a power to work out prices, however it provide substantial rates to its providers to develop a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Purchasers:

Market saturation in most of the item categories also make the bargaining power of purchasers more extreme in for Samsung. In spite of igh bargaining power Samsung is rather capable of offering its items at a higher cost than much of its rivals, due to high end quality product and a fair brand image.

Threat of New Entrants:

Danger of brand-new entrants for Princessa Beauty Products 5 Case Study Help is rather low. Along with it, requirement of substantial competence and research and development expenditures for survival in the market likewise make brand-new entrants unwilling to enter in the market. Market saturation is likewise one of the barrier of entry in innovation market.

Competitive Analysis

Samsung's high product diversity provides it differentiation from its competitors. Unlikely to its close rivals including Sony, Intel and Nokia, who focus majority on a single item category with Sony focusing on consumer electronics, Nokia on cell phones and Intel on chips, Princessa Beauty Products 5 Case Study Solution had a big R&D costs on all of its item categories which allow the business to make possible revenue from sales of nearly all of its items.

The business ranks initially in 4 item categories i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave, in terms of international market share, among 8 different item categories. Samsung was the global leader in producing DRAM, SRAM and NAND flash chips. Samsung profits from chips was less than Intel but its earnings from chips was growing much faster than Intel and has grown close to the earnings levels of Intel, as given in the case Exhibit 2.

Along with the chips Samsung mobile market was also flourishing at a high rate than its rivals i.e. Motorola and Nokia. Samsung's cell phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with no sales development. The major reson behind Samsung's high development despite of higher costs than Nokia and Motorola was the company's high-end quality cellular phone.

Samsung was also profiting from increasing market share of luxury LCDs as given up case Exhibition 3. The significant factor, making the business enable to avail the opportunity is its mass production at low expense. Sony was the most significant rival for Princessa Beauty Products 5 Case Study Help in LCD market, nevertheless, it had likewise begun joint endeavor with Samsung in 2003 for LCD manufacturing, minimizing the competitors for Samsung.

Porter's Competitive Method

Low Expense Leadership strategy of porter is fully executed by Samsung the way they accomplish economies of scale by reinforcing their core proficiencies of manufacturing. They always bring something brand-new and ingenious whether it's a service or a product.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Princessa Beauty Products 5 Case Study Help would develop a brand-new brand name image by targeting the younger generation of the specific country. As, especially smart phones of Samsung are popular amongst the younger demographic.


1. It is the very best technique to build Client Lifetime Value (CLV) by producing a long-term relationship with consumers. Build loyalty through providing value and reap the benefits for long-lasting, as research has showed it is much cheaper to retain present clients than to bring in new ones.
2. Another pro of this option is that word of mouth spread quicker amongst more youthful individuals and which in turn will generate new clients for my products.


1. Old clients who were associated with Samsung prior to might not like this brand-new image the company is trying to represent.
2 It will sustain more costs to rearrange some products and it may not even bring success as the patterns alter very rapidly amongst the younger market.

Alternative solution 2.

Samsung has actually made making its core competency for the a lot of part of their business and due to which its managers are not afraid to totally step out of their comfort zone. It would be done by arranging training workshops throughout which value of marketing will be taught and numbers will be provided. Failure to get the passing scores will get demoted. Marketing environment ought to be produced internally first as real marketing starts inside the corporation.


1. Its pro will be that all the marketing technique supporters will come out and also the opposite ones.


2. Its con can develop an extremely unhealthy environment in the office, as people frequently resist modification due to the fact that they fear it.

Determine the very best alternative

Alternative is the finest as it plainly has more pros due to the fact that as soon as a Client Life time Value is constructed the business will profit from it till that consumer is alive and has acquiring power. Plus, our target customers are the more youthful generation which are bound to live longer than the existing old age people. Samsung's main goal is to create loyalty among its clients and make them redeemed it from them and even purchase their various products.

Execution Plan

• Targeting younger generation through social marketing, creating a relate to them like Pepsi finish with music. And set the expectations possible and sensible.
• A team including best marketing and sales professionals must be put together, and both views must be considered before protecting the resources needed to execute the plan.
• Thorough interaction of the strategy ought to be done as it is very crucial for everyone to be on the very same page to make it work.
• Jobs and timelines must be develop and communicated accordingly to each person accountable.
• The manager need to use a dashboard which shows the progress of all the jobs which have been done or about to be done and by whom.
• The supervisor ought to keep track of and keep a continuous check on the general and specific efficiency.
Due to the fact that any brand-new trend or policy may come in due to which all the things currently prepared have actually to be adjusted, • Everyone need to be ready to adapt midway. It's much better to have contingency plans currently prepared.
• At the end of the project the manager ought to interact the results and if successful must celebrate with the team.

Spending plan

The M-net program exposed engaging analysis about the low and high growth possible locations and just how much advertising budget plan should be designated appropriately. This change the spending plan allowance of lots of supervisors and different nations were unhappy and argued however the analysis done by the program was precise and revealed figures like North America and Russia growth prospective warranted a 35% allotment while they were getting 45%. Whereas, China and Europe ought to be getting 42% but were instead offered 31%. It truly assisted to relatively distribute the resources and capture more customers by investing more on ads on the high development potential regions of the world.


Its constant financial investment in R&D and ingenious practices have moved them to new heights however for them its' just the start and they desire to be amongst the top 3 brand names in the world. Their marketing efforts must be directed towards younger market amidst the internal arguments about marketing and should develop Consumer Life time Value as it will not just offer them advantages now however will continue to gain it till the client lifetime. As the cost of maintaining the consumer is much less expensive than drawing in a brand-new one.