Transforming Reckitt Benckiser Harvard Case Study Analysis

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Transforming Reckitt Benckiser Case Study Solution and Analysis


Transforming Reckitt Benckiser Case Study Analysis is a well-known international brand in innovation industry, founded in 1938 by Lee Byung Chul, in South Korea. Transforming Reckitt Benckiser deals in a great deal of item categories consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and much more other electronic items. Historically, the company's core consumers consist of the Original Equipment Manufacturers (OEMs), which utilized to offer Samsung products withtheir own brand. Till early 1990s, the core competency of Samsung lie in its low cost offerings than its rivals by manufacturing existing items at economies of scale. Its consumer circle includes Original Equipment Manufacturers (OEMs), who utilized to offer Transforming Reckitt Benckiser Case Study Help products with their own brand name. Samsung was not merely understood outside Korea. There were likewise no or little interest in constructing the brand name worldwide. Marketing budget plan was managed by production department with a prime focus on providing cheap products.During the 1997 Asian Financial Crisis the company practically got bankrupt, but with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was listed the top 25 most valuable company worldwide. When Kim was worked with as a Chief Marketing Officer in 2000 the business was not even listed. He rearranged Samsung as a worldwide brand and educated his divisional managers to comprehend marketing and its importance. Now their goal is to arrive 10 by 2005.

Problem Statement

Samsung's transition from an item based to a marketing business is not going as efficiently as planned.Overcoming the reluctance of divisional supervisors to incorporate marketing successfully is still a major difficulty. Developing a consistent brand identity across the entire world and utilizing marketing techniques that finest fits the local culture is no simple task. The M-net program analysis have actually been actually helpful in figuring out the high and less potential growth locations, but allowance of resources appropriately is not well gotten amongst the managers. There is no consensus amongst the hierarchy relating to the best suited future strategy.
Executive Summary
Situational Analysis

Yun had a quite clear picture in his mind about how Transforming Reckitt Benckiser Case Study Solution can transform from a low end to a high end product company. He understood that improvement can just be done through placing Samsung as a business providing high-end items and this might only be done through high level of marketing.

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

Among the marketing obstacles 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 products do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous company practices, and the current marketing requirement was too much high, the gap was too larger and to fill this gap with incorrect perceptions about marketing was rather tough for Yun.

As specified above, marketing focus was extremely low in previous practices, for that reason there were no appropriate marketing budgets for each of the product on the portfolio. There was no marketing planning done for the existing products. Along with it the product series 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 develop marketing budgets for existing in addition to for new products from the very start, and this would take a big time.

A huge shift would be needed in current marketing expenses to build the Transforming Reckitt Benckiser Case Study Analysis brand name. This would lead to increased marketing expenditures for Samsung and might interrupt the administration relating to increased expenditures, as they were reluctant to marketing expenditures previously and an unexpected big shiftwould make them disturb. This might result in decreasing executive assistance for worldwide marketing. In this situation, Yun faces an obstacle for validating increased marketing costs by showing the long term value of huge marketing expenditures.

Internal Analysis
SWOT Analysis

Transforming Reckitt Benckiser Case Study Analysis strengths lie in its substantial item portfolio. Samsung has largest number of patents in the market with overall number of 15499 patents granted in US( USP).

Another strength of Transforming Reckitt Benckiser Case Study Analysis is its ability to establish innovative products at a constant rate. It significant shows for the innovation and product creating of Samsung is that the company has actually received numerous awards for its development and item style.

Unlike Apple and other rivals, Samsung is focused on producing devices which can be easily integrated with any kind of open source Os (OS) and software application. This supplies Samsung an edge over Apple devices.
Porter's 5 Forces Analysis
Samsung's capability to produce high end products at low expense of production is also one of the major strength of Samsung as it allows the company to record more market by providing quality products with cost control.

Weak points

Transforming Reckitt Benckiser Case Study Help weak points are concealed in the company's dependence on outsourcing software application for its devices due to business's failure in establishing software application, unlike Sony. Samsung likewise has low profit margins as compare to Apple due to huge distinction in the prices of Apple and Samsung with a much lesser distinction in quality. The varied focus of the company due to a great deal of items in its portfolio, lead to the less efficient production and make the business not able to charge higher prices like Apple. The company is also ineffective in managing its patents and frequently faces the problem of patent violation.


Opportunities for Transforming Reckitt Benckiser Case Study Analysis lie in the growing Smartphone market and the company's efficiency in the market. Samsung presently runs in about 80 nations and the company has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia.


The dynamic industry environment of technology industry present an extreme danger on Samsung's survival and force the company to invest much of its earnings 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 likewise a big threat for the company's growth in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Transforming Reckitt Benckiser Case Study Solution uses quality products and has a quite abundant portfolio which accommodates various segments. Most of the items are in the top three of their respective industries. LCD and cellphones are the biggest items of Samsung, whereas DRAM is also not far behind in comparison of them. Following is the line of product of Samsung:

• Laptops.
• Mobile phones.
• A/c unit.
• Desktop computer.
• Hard disk drives.
• Washer.
• Refrigerators.
• Video cameras.
• Microwaves.
• Flash memory.


Transforming Reckitt Benckiser Case Study Analysis uses both market competitive and market skimming rates methods for its variety of items. In competitive pricing it adjusts the cost according to the competitors in order to gain advantage, whereas, it utilizes market skimming strategy where the item has an included value and by offering a few items it can reach break-even.


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

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

Worth Chain Analysis.

It's an analytical structure for determining organisation activities that include worth or competitive benefit for the business.

Inbound Logistics.

It has one of the most effective and efficient supply chain network and has over 2700 suppliers across different markets all over the world. Nearly 80% of which is based in Asia and the remaining around the world. For its incoming logistics it owns different logistics companies as it subsidiaries. It cares for its suppliers and creates a harmonious relationship with them and even decreased their payment cycles to increase this relationship even more which adds value to their chain network.


Samsung's core proficiency is its mass producing it produces 90% of its products in-house. Divided into three various divisions its operations are specifically IT & Mobile Communications, Device Solutions and Customer Electronic Devices. It is keeping operation centers worldwide to further include worth to its worth chain network.

Outbound Logistics.

Its outbound logistics system performance is one of the main factors Transforming Reckitt Benckiser Case Study Analysis has the ability to compete with Apple. Samsung's own Electronic Logitec system plays a major role in the outgoing logistics operations. It even carries out the tasks of collection of payment, settling insurance claims, etc. on behalf of Samsung.

Marketing and Sales.

Bring in target client attention towards the item is done through marketing and sales to interact with them the value and competitive advantage the item uses. Transforming Reckitt Benckiser Case Study Solution advertising budget plan is continually growing given that they started their repositioning worldwide and will continue to do so as they are continually seeking to expand and invest in high possible development markets. The budget is invested in occasions, print and media advertisements, public relations etc.

Samsung Service. Samsung put their consumers at the top and constantly aim to provide unmatchable customer care requirements. As after sales service is becoming incredibly crucial to keep clients happy and engaged, they even carry out studies through 3rd parties to find out their customer's feedback and implement it in the favorable way to reduce or if possible entirely remove their client issues. By including a direct assistance line to call them 24 hours they have actually even more increased the included value of Transforming Reckitt Benckiser Case Study Analysis service.


Transforming Reckitt Benckiser Case Study Solution has diversified market division, based upon its arrangement of large range of products to large number of customers. Samsung target customer sections can be divided into 3 categories i.e. Transforming Reckitt Benckiser Case Study Analysis IT and Mobile Communications, Samsung Consumer Electronics and Samsung Device options.


Transforming Reckitt Benckiser Case Study Analysis geographical division is based upon 2 criteria i.e. region and density. Samsung serves about 80 countries worldwide with its products supplied to Urban as well as Backwoods of the nation. The Samsung is also growing its international existence and the company's versatility in locating its plants motivates global expansion of Samsung.


Samsung produces products that can be utilized by both females and males. The target clients for Samsung IT and mobile interaction products have an age range of 18-65 with bulk at a young or freshly wed life cycle phase. Apart from it, Samsung Consumer Electronics are targeted to a consumer segment with an age range of 25-65.


The psychographic segmentation of Transforming Reckitt Benckiser Case Study Analysis s based upon the social class and the lifestyle of the customer. Samsung target consumers on the basis of social class are generally upper middle, middle and working class consumers, as Samsung sell products like cell phones not much more affordable i.e. Motorola along with very little pricey i.e. Apple. It offers quality items to middle level consumers at a slightly high rate than others targeting the very same segment.


Transforming Reckitt Benckiser Case Study Help majority target clients have distinct behavioural attributes. They are brought in towards Samsung due to the fact that of its moderate costs with a degree of quality.

Quantitative analysis.

Sales of Samsung has increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. It has also minimized its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the largest selling category of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Earnings/ sales are increasing but net profit is not increasing accordingly since of the high overhead cost. New expansions and hiring's were the primary reason of the boost in the overhead costs, with china currently not offering any revenue to Samsung, but there is a lot capacity in the present market with 75 % yet to be explored.

Qualitative analysis.

Yes, this choice is based upon the mission of Kim to target the younger audience and develop a global brand name picture of the company. Whereas, the core strength of the business is presently making but long gone are those days when excellent items were offering themselves. In the present age marketing is extremely essential and business can not prosper without it. Kim has currently started to reinforce the marketing activities of Samsung and soon it will turn into one of its core strength like making if not much better.



Samsung runs styles, produces and offer a huge portfolio of consumer electronics. It runs in an exceptionally competitive environment and has successfully placed itself as the maker of quality products. So, the response is yes.


As, stated previously that Transforming Reckitt Benckiser Case Study Help operates in an extremely competitive environment, which implies all the business have comparable products. The answer for rarity is no.


Due to the nature of the industry, it is really simple for competitors to comprehend the performance of the products and quickly make their own models. Yes, Samsung is only behind IBM in signing up brand-new patents each year, however the benefit is extremely short-term in this industry.


Chairman Lee has totally turnaround Samsung, from going nearly insolvent during the Asian financial crisis of 1997 to the leading 25 company in the world. Absolutely yes there appertains organization in the business and the results speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand spread nearly in every nation worldwide, majority of the environments like USA, Europe, China and so on, are extremely conductive for its operations. It faces some political pressures in less industrialized countries where law and order scenario is not good. Latin American, African and some Asian nations fall in this classification, where political instability do have a result on Transforming Reckitt Benckiser Case Study Help operations.


Buying power of clients is vital for companies like Samsung to succeed and grow. Emerging markets like India, middle-eastern nations and so on provide growth chances, whereas, due to recession even the customers of developed nations suffer terribly. It is really important for the company to keep an eye on the continuous financial scenario of the country prior to getting in the market.


Multinational companies have to face different social and cultural problems throughout its operations in a foreign country. Samsung has actually also faced many issues but have actually adopted to the local environments of most of the nations extremely well. It has actually tailored its products, practices, policies and so on appropriately in order to achieve success.


With an annual expenditure of 2.4 billion dollars in Research & Development, and with consistent ingenious item launches, Transforming Reckitt Benckiser Case Study Analysis is one of the top innovative business of the world. With a clear mission to be ahead of the rest when it comes to technological advancements, Samsung has increased to the no 25 of the top successful companies of the world.


Each country has their own laws and policies, being a multinational business Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will result in serious legal repercussions. It has to study or work with a regional law expert before starting its operations in a particular country.


With the increasing awareness amongst consumers about the ecological & ethical infractions of business, Samsung needs to ensure that it follows all the safety guidelines. Ecological damages, ethical misconducts are not acceptable and in some nations the consequences can be extremely severe. On the other hand it needs to do some Business Social Duty practices to show the locals that it cares about their environment and people.

Porter's Five Forces

Hazard of Alternative

Hazard of replacement for Samsung's each product classification is quite significant. Running in a very vibrant industry lead the business to deal with a high risk of substitution. Elements for high risk of substitution for Transforming Reckitt Benckiser Case Study Help Mobile phone consist of the presence of high variety of suppliers and Market saturation in developed countries, which make the expense of switching for consumers nearly zero. Replacement dangers for Samsung visual screen lie in the altering lifestyle of customers. Consumers can switch to watching visuals in your home towards outside activities. In addition to it, Samsung printing options products are threatened by the increasing destination of consumers towards cloud storage.

Rivalry Among Existing Companies:

The rivaly amongst Samsung and its close rivals is intense. The major factor behind this is the technique of market saturation in different number of product categories, requiring Samsung to introduce more ingenious features in existing products and new ingenious items to keep its growth. The major rivals for Transforming Reckitt Benckiser Case Study Solution samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

Transforming Reckitt Benckiser Case Study Analysis has a large supply chain consisting of about 2700 providers 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 substantial orders enable Samsung to work out rates with its suppliers. Due to incapability of Samsung to build its own software, it has to outsource its software application development to Google, which ends up being a possible supplier of software for Samsung, resulting in high bargaining power of Google. In most of Transforming Reckitt Benckiser Case Study Help has a power to work out rates, but it provide significant prices to its providers to develop a strong supply chain and to have strong relationships with its suppliers.

Bargaining Power of Buyers:

Market saturation in most of the item categories likewise make the bargaining power of purchasers more extreme in for Samsung. In spite of igh bargaining power Samsung is quite capable of offering its items at a greater cost than much of its competitors, due to high end quality product and a reasonable brand name image.

Hazard of New Entrants:

Danger of brand-new entrants for Transforming Reckitt Benckiser Case Study Analysis is quite low. Along with it, requirement of big proficiency and research study and advancement expenditures for survival in the market likewise make new entrants unwilling to go into in the market. Market saturation is also one of the barrier of entry in technology market.

Competitive Analysis

Samsung's high product diversification supplies it differentiation from its rivals. It is one of the three leading brands by market share. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus bulk on a single product classification with Sony concentrating on consumer electronic devices, Nokia on mobile phone and Intel on chips, Samsung had a big R&D costs on all of its item categories which enable the business to earn possible earnings from sales of practically all of its items. (See Exhibition) Nevertheless, due to the broad product range the company deals with high number of rivals.

The company ranks first in 4 item categories i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave, in terms of worldwide market share, among 8 various item categories. Samsung was the international leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Samsung profits from chips was less than Intel but its profits from chips was growing much faster than Intel and has actually grown close to the revenue levels of Intel, as given in the case Display 2.

In addition to the chips Samsung mobile market was also flourishing at a high rate than its competitors i.e. Motorola and Nokia. Samsung's mobile phone's sales development was 51% as compare to Motorola with just 4% and Nokia with zero sales development. The major reson behind Samsung's high development despite of higher costs than Nokia and Motorola was the business's high-end quality cellular phone.

Samsung was also reaping the benefits from increasing market share of luxury LCDs as given in case Exhibition 3. The major reason, making the company make it possible for to avail the chance is its mass production at low cost. Sony was the most significant competitor for Transforming Reckitt Benckiser Case Study Help in LCD market, however, it had actually also begun joint venture with Samsung in 2003 for LCD manufacturing, decreasing the competition for Samsung.

Porter's Competitive Method

Low Expense Leadership method of porter is completely carried out by Samsung the method they achieve economies of scale by enhancing their core proficiencies of manufacturing. Even to the point that their competitor SONY decided 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. Distinction is another method well implemented by Samsung by constant investment in the R&D and remaining ahead of the competition. They constantly bring something new and ingenious whether it's an item or a service.


Alternative Option 1

The Chief Marketing Officer (CMO) of Transforming Reckitt Benckiser Case Study Solution would produce a brand-new brand image by targeting the younger generation of the specific nation. As, especially smart phones of Samsung are popular among the younger market.


1. It is the best technique to develop Customer Life time Worth (CLV) by creating a long-lasting relationship with consumers. Build commitment through delivering value and reap the benefits for long-lasting, as research study has revealed it is much cheaper to retain present customers than to draw in new ones.
2. Another pro of this option is that word of mouth spread quicker among younger individuals and which in turn will generate new customers for my products.


1. Old clients who were associated with Samsung prior to might not like this new image the business is attempting to portray.
2 It will incur more expenses to rearrange some products and it might not even bring success as the patterns change really quickly among the younger demographic.

Alternative option 2.

It would be done by arranging training workshops during which importance of marketing will be taught and numbers will be provided. Marketing environment ought to be developed internally first as genuine marketing begins inside the corporation.


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


2. Its con can create an extremely 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 finest as it plainly has more pros due to the fact that once a Client Lifetime Worth is constructed the company will benefit from it till that customer is alive and has buying power. Plus, our target customers are the more youthful generation which are bound to live longer than the current aging people. Nonetheless, Samsung's main objective is to develop loyalty among its customers and make them repurchase it from them and even purchase their different products also.

Execution Strategy

• Targeting more youthful generation through social marketing, developing a relate to them like Pepsi finish with music. And set the expectations attainable and practical.
• A group including best marketing and sales experts should be assemble, and both views should be taken into account prior to protecting the resources required to implement the plan.
• Thorough interaction of the strategy should be done as it is extremely crucial for everybody to be on the exact same page to make it work.
• Tasks and timelines ought to be build and communicated appropriately to each person accountable.
• The manager need to utilize a control panel which reveals the development of all the jobs which have actually been done or about to be done and by whom.
• The supervisor must keep an eye on and keep a constant look at the individual and general performance.
• Everyone ought to be willing to adapt midway due to the fact that any brand-new trend or policy might be available in due to which all the things currently planned have to be changed. It's much better to have contingency strategies currently prepared.
• At the end of the project the manager ought to interact the results and if effective ought to commemorate with the team.

Budget plan

This change the budget allowance of various nations and lots of managers were dissatisfied and argued but the analysis done by the program was accurate and revealed figures like North America and Russia development possible warranted a 35% allowance while they were getting 45%. It truly helped to fairly disperse the resources and catch more clients by spending more on ads on the high growth potential areas of the world.

Transforming Reckitt Benckiser Case Study Analysis is a leading 25 company in the world now and plans to get ahead of Sony who sits currently at no. 20. Its constant investment in R&D and innovative practices have actually moved them to new heights but for them its' just the start and they want to be amongst the leading 3 brands on the planet. They totally turnaround from practically going bankrupt throughout the Asian Financial Crisis to a world popular brand name, understood for quality and development. Their worth chain and their core proficiency their manufacturing capability, along-with global brand name image structure have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With more growth in China and other emerging markets those numbers will just increase even more in the future. Their marketing efforts need to be directed towards younger demographic amidst the internal arguments about marketing and ought to develop Client Lifetime Worth as it will not just give them benefits now however will continue to reap it till the customer lifetime. As the cost of keeping the customer is much cheaper than attracting a brand-new one.