Transforming Reckitt Benckiser Harvard Case Study Analysis

Home >> Hrm >> Transforming Reckitt Benckiser

Transforming Reckitt Benckiser Case Study Solution & Analysis


Historically, the company's core consumers include the Original Equipment Manufacturers (OEMs), which utilized to sell Transforming Reckitt Benckiser Case Study Help products withtheir own brand name. Its customer circle includes Original Devices Manufacturers (OEMs), who utilized to sell Samsung items with their own brand name. He repositioned Samsung as a global brand name and informed his divisional managers to comprehend marketing and its value.

Issue Statement

Samsung's shift from an item based to a marketing company is not going as smoothly as planned.Overcoming the unwillingness of divisional supervisors to integrate marketing effectively is still a major challenge. Developing a consistent brand name identity throughout the entire world and utilizing marketing methods that finest fits the local culture is no simple task. The M-net program analysis have been actually useful in identifying the high and less possible growth areas, however allocation of resources appropriately is not well gotten among the managers. There is no agreement among the hierarchy relating to the best matched future method.

Situational Analysis

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

In spite of having a clear vision about how to construct Samsung brand name, with a possible support 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 understandings of executives about the worth of marketing. They thought about marketing and selling as same tools and thought that quality items do not needed marketing for increasing sales. As their focus towards marketing was quite low in their previous organisation practices, and the current marketing requirement was excessive high, the gap was too larger and to fill this gap with wrong understandings about marketing was rather tough for Yun.

As mentioned above, marketing focus was extremely low in previous practices, therefore there were no appropriate marketing budgets for each of the product on the portfolio. There was no marketing planning provided for the existing items. Along with it the product variety of the business was increasing with the ripening of new item ideas by the R&D sector of Samsung. Yun had an obstacle to perform marketing planning and to develop marketing budgets for existing along with for new products from the very start, and this would take a huge time.

A big shift would be needed in current marketing expenditures to build the Samsung brand. This would result in increased marketing expenditures for Samsung and could disturb the administration concerning increased expenses, as they were unwilling to marketing expenditures previously and a sudden huge shiftwould make them disturb.

Internal Analysis
SWOT Analysis

Samsung strengths lie in its huge product portfolio. Samsung has largest variety of patents in the industry with overall variety of 15499 patents given in US( USP). Large quantity of R&D costs has allowed the company to grow its product portfolio at a higher rate than its rivals. Transforming Reckitt Benckiser Case Study Analysis spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its total incomes.

Another strength of Transforming Reckitt Benckiser Case Study Solution is its ability to establish innovative items at a continuous rate. It significant proves for the development and product developing of Samsung is that the company has actually received many awards for its development and item style.

Unlike Apple and other rivals, Samsung is concentrated on producing gadgets which can be easily integrated with any kind of open source Operating System (OS) and software application. This offers Samsung an edge over Apple devices.

Samsung's ability to produce high end products at low cost of production is also one of the significant strength of Samsung as it allows the company to record more market by supplying quality items with expense control.


Samsung's weak points are concealed in the business's dependence on outsourcing software application for its gadgets due to company's failure in establishing software, unlike Sony. Transforming Reckitt Benckiser Case Study Help likewise has low profit margins as compare to Apple due to huge difference in the rates of Apple and Samsung with a much lower distinction in quality.


Opportunities for Transforming Reckitt Benckiser Case Study Solution lie in the growing Smart device market and the business's performance in the market. Samsung currently runs in about 80 countries and the business has a chance to increase its geographical growth by moving towards more emerging markets outside Asia.


The vibrant market environment of technology market present a severe risk on Samsung's survival and force the company to invest much of its earnings share on R&D in order to survive in the long run. The marketplace saturation in developed countries i.e. saturation of mobile company is likewise a huge risk for the business's growth in the presence of strong competitors like Apple.

4 P's of Marketing


Transforming Reckitt Benckiser Case Study Analysis uses quality items and has a quite abundant portfolio which caters to different sectors. Most of the items remain in the top 3 of their particular industries. LCD and cellphones are the biggest products of Samsung, whereas DRAM is also not far behind in comparison of them. Following is the product line of Samsung:

• Laptops.
• Mobile phones.
• Ac system.
• Personal computers.
• Hard disks.
• Washer.
• Refrigerators.
• Cams.
• Microwaves.
• Flash memory.


Transforming Reckitt Benckiser Case Study Help uses both market competitive and market skimming prices strategies for its wide range of items. In competitive rates it changes the price according to the competition in order to get advantage, whereas, it utilizes market skimming technique where the product has actually an included value and by offering a few products it can reach break-even.


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


It wasn't a well-known business outside of Korea till 1993. But the management effort taken by their CEO has pressed them to market more effectively outside the borders and now it has actually gotten in the league of top 25 companies on the planet in simply 9 years. This is a remarkable accomplishment regardless of the continuous arguments amongst the managers about embracing marketing practices. It uses both offline & online channels of promo to market their products. Paid product ads, social promo and digital advertisements are uses to create awareness about Samsung items.

Value Chain Analysis.

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

Inbound Logistics.

For its inbound logistics it owns numerous logistics firms as it subsidiaries. It looks after its providers and develops an unified relationship with them and even lowered their payment cycles to improve this relationship even more which includes worth to their chain network.


Samsung's core proficiency is its mass manufacturing it produces 90% of its products internal. Divided into three different divisions its operations are specifically IT & Mobile Communications, Gadget Solutions and Customer Electronic Devices. It is maintaining operation hubs worldwide to further add worth to its worth chain network.

Outbound Logistics.

Its outbound logistics system performance is one of the main reasons 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 outbound logistics operations. It even performs the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Drawing in target consumer attention towards the product is done through marketing and sales to interact with them the worth and competitive advantage the product offers. Transforming Reckitt Benckiser Case Study Analysis advertising spending plan is continually rising given that they began their repositioning internationally and will continue to do so as they are continually aiming to invest and expand in high possible development markets. The budget is invested in events, print and media advertisements, public relations and so on.

Samsung Service. Samsung put their clients at the top and constantly aim to deliver unmatchable client service standards. As after sales service is becoming extremely crucial to keep customers pleased and engaged, they even conduct surveys through 3rd parties to learn their client's feedback and implement it in the favorable method to reduce or if possible totally remove their customer issues. By including a direct support line to contact them 24 hours they have even more increased the added value of Transforming Reckitt Benckiser Case Study Analysis service.


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


Transforming Reckitt Benckiser Case Study Analysis geographical division is based upon two requirements i.e. region and density. Samsung serves about 80 nations worldwide with its products provided to Urban in addition to Rural areas of the country. The Samsung is likewise growing its global existence and the company's versatility in locating its plants encourages international growth of Samsung.


The demographic segmentation of Transforming Reckitt Benckiser Case Study Analysis is based upon gender, age, life-cycle stage and profession. Samsung produces products that can be used by both males and women. The target consumers for Samsung IT and mobile interaction items have an age series of 18-65 with bulk at a young or newly wed life process phase. They are mainly students, staff members and specialists. Apart from it, Samsung Customer Electronic devices are targeted to a customer segment with an age series of 25-65. They are mainly staff members and specialists. However Transforming Reckitt Benckiser Case Study Analysis Device Solutions are targeted at trainees, workers and experts with an age series of 25-65.


The psychographic segmentation of Transforming Reckitt Benckiser Case Study Help s based upon the social class and the lifestyle of the consumer. Samsung target consumers on the basis of social class are mainly upper middle, middle and working class clients, as Samsung offer products like cell phones not much less expensive i.e. Motorola as well as very little expensive i.e. Apple. It supplies quality products to middle level customers at a somewhat high price than others targeting the exact same segment.


Transforming Reckitt Benckiser Case Study Solution majority target customers have distinct behavioural attributes. It has customers with an ambitious, trendy and determined personality with moderate level of commitment towards the brand. Its customers have some degree of shift towards other renowned brands i.e. Apple. Most of Samsun customers desire quality along with cost control. Due to the fact that of its moderate prices with a degree of quality, they are brought in towards Samsung.

Quantitative analysis.

Sales of Samsung has increased remarkably 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 decreased its financial obligation 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. Revenues/ sales are increasing but net revenue is not increasing accordingly because of the high overhead expense. New growths and employing's were the main reason of the boost in the overhead expenses, with china presently not offering any earnings to Samsung, however there is a lot potential 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 worldwide brand name picture of the company. Whereas, the core strength of the company is currently making however long gone are those days when excellent items were offering themselves. In the current age marketing is very essential and companies can not succeed without it. Kim has actually currently started to strengthen the marketing activities of Samsung and very soon it will become one of its core strength like making if not better.



Samsung runs designs, produces and sell a huge portfolio of customer electronics. It operates in an extremely competitive environment and has successfully placed itself as the maker of quality items. The response is yes.


As, said previously that Transforming Reckitt Benckiser Case Study Analysis runs in a highly competitive environment, which suggests all the business have similar items. So, the answer for rarity is no.


Due to the nature of the industry, it is very easy for rivals to comprehend the functionality of the items and easily make their own models. Yes, Samsung is only behind IBM in signing up new patents each year, but the benefit is extremely short-term in this industry.


Chairman Lee has totally turnaround Samsung, from going nearly bankrupt throughout the Asian financial crisis of 1997 to the leading 25 business worldwide. Definitely yes there is proper organization in the company and the results promote themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand name spread nearly in every nation worldwide, majority of the environments like U.S.A., Europe, China and so on, are really conductive for its operations. It deals with some political pressures in less developed nations where law and order situation is not good. Latin American, African and some Asian countries fall in this classification, where political instability do have an impact on Transforming Reckitt Benckiser Case Study Solution operations.


Purchasing power of clients is important for companies like Samsung to grow and be successful. Emerging markets like India, middle-eastern countries and so on provide growth chances, whereas, due to recession even the consumers of industrialized nations suffer badly. Thus it is very essential for the business to keep an eye on the continuous economic circumstance of the country prior to going into the marketplace.


International companies need to deal with different social and cultural issues throughout its operations in a foreign country. Samsung has actually also faced many issues however have adopted to the regional environments of most of the countries exceptionally well. It has actually tailored its items, practices, policies etc. appropriately in order to achieve success.


With an annual expenditure of 2.4 billion dollars in Research study & Development, and with continuous ingenious product launches, Transforming Reckitt Benckiser Case Study Help is one of the top ingenious business of the world. With a clear objective to be ahead of the rest when it pertains to technological developments, Samsung has actually risen to the no 25 of the top successful companies of the world.


Each country 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 lead to major legal repercussions. So, it needs to study or hire a regional law specialist before starting its operations in a particular country.


With the increasing awareness among customers about the environmental & ethical violations of companies, Samsung needs to make sure that it follows all the safety standards. Ecological damages, ethical misconducts are not appropriate and in some countries the effects can be really severe. On the other hand it has to do some Business Social Obligation practices to reveal the residents that it cares about their environment and individuals.

Porter's Five Forces

Risk of Replacement

Hazard of replacement for Samsung's each product category is rather considerable. Running in an incredibly dynamic market lead the business to deal with a high hazard of replacement. Factors for high threat of substitution for Transforming Reckitt Benckiser Case Study Help Mobile phone consist of the existence of high variety of suppliers and Market saturation in industrialized nations, that make the cost of switching for consumers nearly no. Replacement risks for Samsung visual display screen lie in the altering lifestyle of customers. Consumers can change to watching visuals at home towards outside activities. 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 reason behind this is the technique of market saturation in various number of product classifications, forcing Samsung to introduce more innovative features in existing items and brand-new innovative items to keep its development. Other element for the extreme competition amongst the competitors is the little item differentiation amongst the items. The popular players in the technology market are quite aware of the importance of R&D spending for their survival and are facing a race of marketing and R&D spending, to record the market. The major competitors for Transforming Reckitt Benckiser Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry results in the varying market shares which can be seen in Display F.

Bargaining Power of Suppliers:

Transforming Reckitt Benckiser Case Study Help has a huge supply chain including about 2700 suppliers throughout 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 potential size and worth. These huge orders make it possible for Samsung to negotiate costs with its providers. Nevertheless, due to incapability of Transforming Reckitt Benckiser Case Study Solution to construct its own software, it has to outsource its software advancement to Google, which ends up being a possible provider of software application for Samsung, leading to high bargaining power of Google. Although, in the majority of cases Samsung has a power to negotiate prices, but it provide considerable prices to its providers to construct a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Buyers:

Negotiating power of buyers for various variety of item classifications of Samsung is extreme. Among the aspect leading to the intense bargaining power is the availability of a great deal of rivals in almost each item category i.e. rivals of Samsung Mobile phone, with a really little differentiation. The high schedule of providers of Smartphones with minimum differentiation, make the switching cost for buyers nearly absolutely no, thus increasing the bargaining power of purchasers. Market saturation in most of the item categories likewise make the bargaining power of buyers more intense in for Transforming Reckitt Benckiser Case Study Help. In spite of igh bargaining power Samsung is quite capable of offering its items at a greater price than much of its competitors, due to high-end quality item and a reasonable brand image.

Risk of New Entrants:

Danger of brand-new entrants for Samsung is rather low. Among the significant aspect for low hazard of new entrants is the high competition in the market. The requirement of big quantity of capital to go into in the market is likewise one of the prospective barrier to entry. Together with it, requirement of substantial competence and research study and development expenses for survival in the market also make new entrants hesitant to enter in the market. Market saturation is also among the barrier of entry in innovation industry. High bargaining power of providers require the gamers in the industry to charge as low rates as possible and this can only be accomplished by production effectiveness. Brand-new firms, in bulk cases, lack the production effectiveness, hence increasing the risks for entryway in the innovation industry.

Competitive Analysis

Samsung's high item diversification supplies it distinction from its rivals. Unlikely to its close competitors including Sony, Intel and Nokia, who focus bulk on a single item category with Sony focusing on consumer electronic devices, Nokia on cell phones and Intel on chips, Transforming Reckitt Benckiser Case Study Solution had a substantial R&D spending on all of its product classifications which make it possible for the company to earn possible earnings from sales of almost all of its items.

The company ranks first in 4 item classifications i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave, in terms of worldwide market share, among 8 different product categories. Samsung was the international leader in producing DRAM, SRAM and NAND flash chips. Samsung incomes from chips was less than Intel but its earnings from chips was growing quicker than Intel and has grown close to the profits levels of Intel, as given in the case Exhibition 2.

Together with the chips Samsung mobile market was also flourishing 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 zero sales development. The major reson behind Samsung's high development despite of greater prices than Nokia and Motorola was the company's high-end quality cell phones.

Samsung was also profiting from increasing market share of high-end LCDs as given in case Display 3. The significant reason, making the business allow to obtain the chance is its mass production at low expense. Sony was the greatest rival for Transforming Reckitt Benckiser Case Study Help in LCD market, nevertheless, it had actually also begun joint endeavor with Samsung in 2003 for LCD making, reducing the competitors for Samsung.

Porter's Competitive Strategy

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


Alternative Service 1

The Chief Marketing Officer (CMO) of Transforming Reckitt Benckiser Case Study Help would produce a new brand name image by targeting the younger generation of the particular country. As, specifically mobile phones of Samsung are preferred among the younger market.


1. It is the best technique to build Consumer Life time Worth (CLV) by creating a long-term relationship with customers. Build loyalty through delivering value and profit for long-term, as research study has revealed it is more affordable to retain present consumers than to attract new ones.
2. Another pro of this alternative is that word of mouth spread quicker amongst younger individuals and which in turn will generate brand-new consumers for my products.


1. Old customers who were associated with Samsung prior to might not like this brand-new image the business is trying to represent.
2 It will sustain more expenditures to reposition some products and it may not even bring success as the trends change extremely quickly amongst the more youthful group.

Alternative service 2.

Samsung has made producing its core proficiency for the many part of their service and due to which its supervisors are not scared to completely get out of their comfort zone. It would be done by setting up training workshops during which importance of marketing will be taught and numbers will be offered. Failure to get the passing ratings will get benched. Marketing environment ought to be produced internally first as genuine marketing begins inside the corporation.


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


2. Its con can develop an extremely unhealthy environment in the office, as individuals often resist change because they fear it.

Identify the very best option

Option is the finest as it clearly has more pros since once a Customer Lifetime Value is developed the company will profit from it till that client is alive and has buying power. Plus, our target customers are the more youthful generation which are bound to live longer than the present aging people. Nonetheless, Samsung's main objective is to develop commitment among its consumers and make them bought it from them and even purchase their various items too.

Execution Plan

• Targeting more youthful generation through social marketing, producing a link with them like Pepsi finish with music. And set the expectations realistic and achievable.
• A group including best marketing and sales professionals ought to be assemble, and both views must be considered prior to protecting the resources required to implement the plan.
• Thorough communication of the strategy must be done as it is extremely essential for everybody to be on the same page to make it work.
• Tasks and timelines should be build and communicated accordingly to each individual accountable.
• The manager need to use a dashboard which reveals the progress of all the jobs which have been done or about to be done and by whom.
• The supervisor should keep an eye on and keep a constant examine the general and individual performance.
• Everybody need to be willing to adjust midway due to the fact that any new trend or policy might be available in due to which all the important things currently planned need to be changed. It's much better to have contingency strategies currently prepared.
• At the end of the project the manager should interact the results and if effective must commemorate with the team.

Spending plan

This modification the spending plan allocation of numerous supervisors and various nations were unhappy and argued however the analysis done by the program was precise and revealed figures like North America and Russia growth potential merited a 35% allotment while they were getting 45%. It really helped to relatively disperse the resources and capture more consumers by investing more on advertisements on the high development capacity regions of the world.


Transforming Reckitt Benckiser Case Study Analysis is a top 25 business worldwide now and prepares to get ahead of Sony who sits currently at no. 20. Its constant financial investment in R&D and innovative practices have moved them to brand-new heights however for them its' only the start and they want to be among the leading 3 brands on the planet. They entirely turn-around from practically going bankrupt during the Asian Financial Crisis to a world renowned brand, understood for quality and development. Their worth chain and their core competency their production ability, along-with worldwide brand image structure have actually seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With more expansion in China and other emerging markets those numbers will just increase further in the future. Their marketing efforts must be directed towards more youthful group amidst the internal arguments about marketing and ought to create Customer Life time Worth as it will not just provide benefits now but will continue to gain it till the consumer life time. As the expense of maintaining the customer is more affordable than bring in a brand-new one.