Princessa Beauty Products 5 Harvard Case Study Solution

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Princessa Beauty Products 5 Case Study Solution & Analysis


Historically, the company's core clients consist of the Original Equipment Manufacturers (OEMs), which used to sell Princessa Beauty Products 5 Case Study Help items withtheir own brand name. Its client circle includes Original Devices Manufacturers (OEMs), who utilized to offer Samsung items with their own brand name. He rearranged Samsung as a worldwide brand name and informed his divisional managers to comprehend marketing and its importance.

Issue Statement

Samsung's transition from an item based to a marketing company is not going as smoothly as planned.Overcoming the unwillingness of divisional managers to incorporate marketing effectively is still a major challenge. Developing a consistent brand identity across the whole world and using marketing strategies that best fits the local culture is no simple job.
Executive Summary
Situational Analysis

Princessa Beauty Products 5 Case Study Solution efforts for developing its brand across the world was started after presenting the "new management initiative" by Chairman Lee in 1993. The goal was to transform Samsung from a cheap OEM to a high value-added item company. To make the vision of Samsung a reality, Chairman Lee selected Yun as a vice chairman in 1997. Yun had a rather clear image in his mind about how Samsung can transform from a low end to a high-end item company. He understood that improvement can only be done through positioning Samsung as a business offering high-end products and this might just be done through high level of marketing.

In spite of having a clear vision about how to construct Samsung brand, with a prospective assistance of its executives, Yun dealt with a number of marketing difficulties in early years of its efforts.

Among the marketing challenges for Yun was the understandings of executives about the value of marketing. They thought about marketing and selling as exact same tools and thought that quality products do not required marketing for increasing sales. As their focus towards marketing was rather low in their previous company practices, and the existing marketing requirement was too much high, the space was too broader and to fill this space with incorrect understandings about marketing was rather challenging for Yun.

Along with it the product variety of the company was increasing with the ripening of new product ideas 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 start, and this would take a huge time.

A big shift would be required in current marketing expenses to construct the Princessa Beauty Products 5 Case Study Help brand name. This would lead to increased marketing expenses for Samsung and could interrupt the administration relating to increased expenditures, as they hesitated to marketing expenses previously and an unexpected huge shiftwould make them interrupt. This could result in declining executive assistance for worldwide marketing. In this scenario, Yun deals with an obstacle for validating increased marketing expenditures by showing the long term worth of substantial marketing expenditures.

Internal Analysis
SWOT Analysis

Samsung strengths lie in its huge item portfolio. Samsung has biggest variety of patents in the market with overall number of 15499 patents given in United States( USP). Large quantity of R&D costs has actually allowed the business to grow its item portfolio at a greater rate than its competitors. Princessa Beauty Products 5 Case Study Solution spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its total incomes.

Another strength of Princessa Beauty Products 5 Case Study Help is its capability to establish innovative products at a constant rate. It significant proves for the innovation and item creating of Samsung is that the business has actually gotten so many awards for its innovation and item design.

Unlike Apple and other competitors, Samsung is focused on producing devices which can be quickly integrated with any type of open source Operating System (OS) and software application. This supplies Samsung an edge over Apple devices.
Porter's 5 Forces Analysis
Samsung's ability to produce high end products at low expense of production is likewise among the major strength of Samsung as it makes it possible for the company to record more market by providing quality items with expense control.

Weak points

Samsung's weak points are concealed in the company's reliance on outsourcing software application for its devices due to business's inability in establishing software application, unlike Sony. Princessa Beauty Products 5 Case Study Help likewise has low revenue margins as compare to Apple due to big distinction in the costs of Apple and Samsung with a much lesser difference in quality.


Opportunities for Samsung depend on the growing Mobile phone market and the business's performance in the market. It can increase its market share and profits from cell phone as the business is quite effective in mobile phone market. Samsung presently runs in about 80 nations and the company has a chance to increase its geographical growth by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to acquire patents. It would enable the company to increase its product portfolio with an increase in its wealth.


The vibrant market environment of technology industry present a severe danger on Samsung's survival and force the company to invest much of its profits 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 company is also a big risk for the business's growth in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Princessa Beauty Products 5 Case Study Solution provides quality products and has a quite rich portfolio which accommodates different sectors. The majority of the items are in the top three of their particular markets. LCD and mobile phones are the greatest items of Samsung, whereas DRAM is also not far behind in comparison of them. Following is the product line of Samsung:

• Laptops.
• Smart phone.
• Air conditioner.
• Computer.
• Hard disk drives.
• Washer.
• Fridges.
• Cameras.
• Microwaves.
• Flash memory.


Princessa Beauty Products 5 Case Study Solution utilizes both market competitive and market skimming prices techniques for its wide array of items. In competitive prices it adjusts the cost according to the competition in order to gain benefit, whereas, it uses market skimming technique where the item has actually an added worth and by selling a few products it can reach break-even.


It has one of the best supply chain networks, with retail suppliers, their own sole suppliers, E commerce channels like Amazon and so on. All its products are prompt provided to the selling location/ provided to the consumers straight in case of online order.

Vrio Analysis
It uses both offline & online channels of promotion to market their items. Paid product advertisements, social promotion and digital advertisements are utilizes to create awareness about Samsung products.

Worth Chain Analysis.

It's an analytical structure for determining service activities that include worth or competitive advantage for the company.

Inbound Logistics.

For its incoming logistics it owns various logistics firms as it subsidiaries. It looks after its providers and develops an unified relationship with them and even minimized 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 internal. Divided into three various departments its operations are particularly IT & Mobile Communications, Device Solutions and Consumer Electronic Devices. It is maintaining operation hubs worldwide to further include value to its value chain network.

Outbound Logistics.

Its outbound logistics system efficiency is among the primary reasons Princessa Beauty Products 5 Case Study Analysis is able to take on Apple. Samsung's own Electronic Logitec system plays a major role in the outbound logistics operations. It even performs the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Attracting target customer attention towards the product is done through marketing and sales to communicate with them the value and competitive advantage the product offers. Princessa Beauty Products 5 Case Study Analysis marketing budget plan is continually rising since they started their rearranging globally and will continue to do so as they are continuously aiming to invest and expand in high potential growth markets. The spending plan is invested in events, print and media ads, public relations etc.

Samsung Service. Samsung put their customers at the top and constantly strive to deliver unmatchable customer support requirements. As after sales service is becoming very crucial to keep customers delighted and engaged, they even carry out surveys through 3rd parties to find out their customer's feedback and execute it in the favorable way to decrease or if possible entirely eliminate their customer issues. By including a direct support line to call them 24 hr they have further increased the added worth of Princessa Beauty Products 5 Case Study Analysis service.


Princessa Beauty Products 5 Case Study Help has actually diversified market division, based upon its provision of wide variety of products to large number of customers. Samsung target consumer segments can be divided into 3 classifications i.e. Princessa Beauty Products 5 Case Study Help IT and Mobile Communications, Samsung Consumer Electronic Devices and Samsung Device solutions.


Princessa Beauty Products 5 Case Study Help geographical segmentation is based upon two criteria i.e. area and density. Samsung serves about 80 countries worldwide with its items provided to Urban in addition to Backwoods of the nation. The Samsung is also growing its global presence and the business's versatility in finding its plants encourages international expansion of Samsung.


Samsung produces products that can be utilized by both males and females. The target consumers for Samsung IT and mobile interaction products have an age variety of 18-65 with majority at a young or freshly married life cycle phase. Apart from it, Samsung Consumer Electronic devices are targeted to a customer section with an age range of 25-65.


The psychographic division of Princessa Beauty Products 5 Case Study Solution s based upon the social class and the lifestyle of the customer. Samsung target customers on the basis of social class are mainly upper middle, middle and working class consumers, as Samsung offer products like cell phones very little less expensive i.e. Motorola as well as very little pricey i.e. Apple. It offers quality products to middle level customers at a slightly high cost than others targeting the same sector.


Princessa Beauty Products 5 Case Study Solution bulk target consumers have distinct behavioural characteristics. They are attracted towards Samsung since of its moderate prices 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 earnings of.48 billion $ to 5.9 billion $. It has actually likewise lowered its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the largest 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 however net earnings is not increasing appropriately because of the high overhead cost. New growths and hiring's were the main factor of the boost in the overhead costs, with china currently not providing any earnings to Samsung, but there is a lot capacity in the present market with 75 % yet to be checked out.

Qualitative analysis.

Whereas, the core strength of the company is currently producing however long gone are those days when great items were offering themselves. Kim has already begun to reinforce the marketing activities of Samsung and really quickly it will become one of its core strength like manufacturing if not better.



Samsung runs designs, manufactures and sell a large portfolio of consumer electronics. It operates in an extremely competitive environment and has effectively positioned itself as the maker of quality products. The answer is yes.


As, stated earlier that Princessa Beauty Products 5 Case Study Analysis runs in a highly competitive environment, which indicates all the business have similar products. The response for rarity is no.


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


Chairman Lee has totally turn-around Samsung, from going almost bankrupt during the Asian financial crisis of 1997 to the leading 25 company worldwide. Definitely yes there appertains company in the business and the outcomes speak for themselves.

External Ecological Analysis

PESTLE Analysis


Being a multinational brand name spread practically in every nation worldwide, majority of the environments like U.S.A., Europe, China and so on, are extremely conductive for its operations. It faces some political pressures in less industrialized nations where law and order circumstance is not excellent. Latin American, African and some Asian nations fall in this category, where political instability do have an impact on Princessa Beauty Products 5 Case Study Help operations.


Purchasing power of consumers is essential for companies like Samsung to grow and succeed. Emerging markets like India, middle-eastern nations etc. supply growth chances, whereas, due to recession even the customers of developed nations suffer terribly. Hence it is very crucial for the business to keep an eye on the ongoing financial circumstance of the nation prior to getting in the market.


Multinational business have to deal with different social and cultural issues throughout its operations in a foreign nation. Samsung has actually also dealt with many problems but have embraced to the local environments of most of the nations remarkably well. It has customized its items, practices, policies etc. appropriately in order to succeed.


With an annual expense of 2.4 billion dollars in Research & Development, and with constant innovative item launches, Princessa Beauty Products 5 Case Study Solution is one of the leading innovative companies of the world. With a clear objective to be ahead of the rest when it concerns technological developments, Samsung has increased to the no 25 of the leading successful business of the world.


Each nation has their own laws and policies, being an international company Samsung have to strictly follow those laws in their jurisdictions. Failure to do so, will result in serious legal repercussions. It has to study or employ a local law expert before starting its operations in a specific nation.


With the increasing awareness among consumers about the ethical & environmental violations of business, Samsung has to make sure that it follows all the safety guidelines. Environmental damages, ethical misbehaviors are not acceptable and in some countries the repercussions can be very severe. On the other hand it needs to do some Business Social Responsibility practices to reveal the locals that it appreciates their environment and people.

Porter's 5 Forces

Hazard of Alternative

Danger of replacement for Samsung's each item classification is quite significant. Elements for high hazard of substitution for Princessa Beauty Products 5 Case Study Help Smartphone include the presence of high number of providers and Market saturation in developed nations, which make the cost of changing for customers nearly zero. Along with it, Samsung printing services items are threatened by the increasing attraction of customers towards cloud storage.

Rivalry Amongst Existing Companies:

The rivaly among Samsung and its close rivals is intense. The significant factor behind this is the approach of market saturation in various number of product classifications, forcing Samsung to present more ingenious features in existing items and brand-new innovative items to keep its growth. The significant competitors for Princessa Beauty Products 5 Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

Princessa Beauty Products 5 Case Study Analysis has a vast supply chain consisting of about 2700 suppliers across the world.( Samsung Sustainability Report, 2016) Provider's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of potential size and worth. These huge orders allow Samsung to work out rates with its providers. Due to incapability of Samsung to construct its own software, it has to outsource its software advancement to Google, which becomes a possible supplier of software for Samsung, resulting in high bargaining power of Google. In many of Princessa Beauty Products 5 Case Study Help has a power to negotiate costs, however it offer substantial prices to its suppliers to build a strong supply chain and to have strong relationships with its suppliers.

Bargaining Power of Purchasers:

Market saturation in most of the product categories also make the bargaining power of buyers more intense in for Samsung. In spite of igh bargaining power Samsung is quite capable of offering its items at a greater rate than much of its competitors, due to high end quality product and a fair brand name image.

Risk of New Entrants:

Risk of new entrants for Samsung is rather low. Among the major factor for low threat of new entrants is the high competition in the industry. The requirement of huge quantity of capital to enter in the market is also among the potential barrier to entry. Together with it, requirement of big proficiency and research study and advancement expenditures for survival in the market likewise make brand-new entrants unwilling to enter in the market. Market saturation is likewise among the barrier of entry in innovation market. High bargaining power of suppliers force the players in the industry to charge as low rates as possible and this can only be attained by production effectiveness. Brand-new firms, in bulk cases, lack the production efficiency, hence increasing the threats for entrance in the technology market.

Competitive Analysis

Samsung's high product diversity offers it distinction from its rivals. Unlikely to its close rivals including Sony, Intel and Nokia, who focus majority on a single item classification with Sony focusing on customer electronics, Nokia on cell phones and Intel on chips, Princessa Beauty Products 5 Case Study Solution had a huge R&D spending on all of its item classifications which allow the company to earn potential profits from sales of nearly all of its items.

The company ranks first in 4 item categories i.e. DRAM Chips, LCD Displays, Big Screen Televisions and Microwave, in terms of global market share, amongst 8 different item classifications. Samsung was the global leader in manufacturing DRAM, SRAM and NAND flash chips. Samsung revenues from chips was less than Intel however its profits from chips was growing much faster than Intel and has grown close to the revenue levels of Intel, as provided in the case Exhibition 2.

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

Samsung was likewise profiting from increasing market share of luxury LCDs as given up case Exhibition 3. The significant factor, making the business make it possible for to get the opportunity is its mass production at low cost. Sony was the most significant competitor for Princessa Beauty Products 5 Case Study Solution in LCD market, nevertheless, it had likewise begun joint endeavor with Samsung in 2003 for LCD making, decreasing the competition for Samsung.

Porter's Competitive Method

Low Expense Management strategy of porter is totally executed by Samsung the method they attain economies of scale by enhancing their core competencies of production. Even to the point that their competitor SONY chose to form an alliance with them to manufacture for them, due to the fact that they were unable to take on them on low expense. Differentiation is another strategy well carried out by Samsung by continuous financial investment in the R&D and staying ahead of the competitors. They always bring something innovative and new whether it's a service or a product.


Alternative Option 1

The Chief Marketing Officer (CMO) of Princessa Beauty Products 5 Case Study Analysis would produce a new brand name image by targeting the younger generation of the specific nation. As, specifically smart phones of Samsung are popular amongst the younger group.


1. It is the very best technique to build Consumer Lifetime Value (CLV) by producing a long-term relationship with clients. Develop commitment through delivering value and reap the benefits for long-lasting, as research study has actually showed it is much cheaper to keep present consumers than to attract new ones.
2. Another pro of this alternative is that word of mouth spread faster amongst younger individuals and which in turn will bring in brand-new clients for my products.


1. Old consumers who were connected with Samsung prior to might not like this new image the company is trying to represent.
2 It will sustain further expenses to rearrange some products and it may not even bring success as the trends alter extremely rapidly amongst the more youthful demographic.

Alternative service 2.

Samsung has made manufacturing its core proficiency for the a lot of part of their business and due to which its supervisors are not scared to completely get out of their comfort zone. It would be done by arranging training workshops during which value of marketing will be taught and numbers will be given. Failure to get the passing ratings will get demoted. Marketing environment should be developed internally first as genuine marketing begins inside the corporation.


1. Its pro will be that all the marketing method fans will come out and likewise the opposite ones.


2. Its con can create a really unhealthy environment in the work environment, as individuals often withstand change due to the fact that they fear it.

Recognize the very best alternative

Option is the best as it plainly has more pros because as soon as a Client Life time Worth is built the business will benefit from it till that client is alive and has purchasing power. Plus, our target clients are the younger generation which are bound to live longer than the present aging people. Samsung's primary objective is to produce loyalty amongst its customers and make them bought it from them and even purchase their various products.

Implementation Strategy

• Targeting younger generation through social marketing, developing a link with them like Pepsi do with music. And set the expectations attainable and reasonable.
• A group consisting of best marketing and sales specialists need to be assemble, and both views ought to be considered before protecting the resources needed to execute the plan.
• Thorough communication of the strategy ought to be done as it is very essential for everyone to be on the exact same page to make it work.
• Jobs and timelines should be build and communicated appropriately to each individual responsible.
• The supervisor must utilize a control panel which reveals the progress of all the jobs which have been done or about to be done and by whom.
• The manager must keep an eye on and keep a continuous examine the specific and overall efficiency.
• Everyone must want to adjust midway due to the fact that any brand-new pattern or policy might come in due to which all the things already planned need to be adjusted. It's much better to have contingency strategies currently prepared.
• At the end of the campaign the supervisor ought to communicate the outcomes and if effective ought to celebrate with the group.


The M-net program revealed engaging analysis about the high and low growth possible locations and how much marketing budget plan should be assigned appropriately. This change the budget allowance of many managers and different nations were dissatisfied and argued but the analysis done by the program was precise and showed figures like North America and Russia development possible warranted a 35% allocation while they were receiving 45%. Whereas, China and Europe should be getting 42% however were rather provided 31%. It really helped to relatively distribute the resources and catch more customers by investing more on ads on the high development potential regions of the world.

Princessa Beauty Products 5 Case Study Solution is a top 25 business in the world now and prepares to get ahead of Sony who sits currently at no. 20. Its continuous investment in R&D and ingenious practices have actually propelled them to brand-new heights however for them its' only the start and they want to be amongst the leading 3 brands in the world. They completely turnaround from nearly declaring bankruptcy during the Asian Financial Crisis to a world renowned brand name, known for quality and innovation. Their value chain and their core proficiency their manufacturing ability, along-with international brand image structure have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With additional expansion in China and other emerging markets those numbers will just increase further in the future. Their marketing efforts must be directed towards younger demographic amidst the internal arguments about marketing and must develop Client Lifetime Value as it will not just give them benefits now but will continue to reap it till the consumer life time. As the cost of keeping the consumer is more affordable than bring in a new one.