Samsung China- The introduction of Color TV
...me as well as the quality of products which they are going to buy. Once Samsung has built up its brand image. It will be easier to build their brand loyalty. 2. Samsung can produce fewer volumes of products with greater profit margin. 3. The high-end brand segment not only can position Samsung as a premium product producer but also can help Samsung to compete with other Japanese firms in the near future. CONs: 1. The market was very competitive, because the Japanese companies like Sony, Matsushita, Sharp, Sanyo, Toshiba, Mitsubishi, JVC, Hitachi targeted the high-end segment too. They already established strong brand image and invested high amount advertisement for their products and had a significant share in the market. 2. In the TV industry foreigner firms like Sony, Philips had succeed well in marketing their brand names in national markets through global coverage, they invested not only in advertising but also in after sales and dealer networks to support brand image . However, Samsung’s brand image was very weak in Asian regions. Samsung might need to spend much more money on advertising of its brand image and products. 3. Late entry and so no first mover advantage. Chinese people are very loyal to the first mover's product and so Samsung lost its advantage. 4. Samsung will need to produce high quality products with latest technologies and innovations to compete in this market. Alternative 2: Low-end PROs: 1. Samsung don’t need strong brand image: it could save lots of money on advertising. In the low-end market segment, the most important factor is the pricing strategy. All you need to do is priced your products low so that people with low income will be able to afford it. 2. This is the largest market segment in china. 3. Don’t need to spend lot of money on R& D expense. : The low-end segment people were mainly from rural areas and they constitute the undifferentiated commodity. People here were not conscious about the brand image and the quality but were very concern only price. 4. Samsung brand could compete effectively with local TV manufacturers better than Japanese TV manufacturers. CONs: 1. Need to produce bulk volumes of products with fewer profit margins. 2. The competition here was only between local competitors and the intensity was low. Without competition, the company will not improve by itself. 3. Samsung’s brand image in Korea is high quality. If they start to sell the low-end products in China, it might damage company’s image forever. 4. Low-end segment was the currently largest market segment, but the economic is keep growing in China. Samsung can’t stay in the low-end market forever. Alternative 3: Both- High-end products with Samsung’s company name. Also produce low-end products in a different name. PROs: 1. If Samsung enter to the high-end and low-end market at the same time, it will be able to offer a large choice of different product line for its customer. 2. It can price the similar product at two different level based on brand image differences. 3. Samsung can expand it’s totally market share in a really short time. 4. Al...