1.3 Initial ProjectSamsung, a South Korean Multinational company, is among the leading

producers of electronic devices worldwide. It is headquartered in Seoul, South Korea. Samsung is one of the greatest and recognizable companies in the technology industry. It yields about one-fifth of the total Exports in South Korea. Samsung has several subsidiaries. As one of the largest companies in South Korea and the World, Samsung has other significant subsidiaries in various industry businesses such as advertising, insurance, and entertainment. The company specializes entirely in the manufacture and sale of a variety of consumer as well as industry electronics and computer peripherals, which include appliances, digital media services, memory chips, semiconductors, and integrated systems (Samsung Inc., 2019).

Samsung Inc. carries out its operations through various business divisions such as Information Technology and Mobile Mobile Communications, Consumer Electronics, as well as Device Solutions. Consumer Electronics is a business division which offers cable television, air conditioners, monitors, printers, washing machines, refrigerators, and medical devices. The business division of Information and Mobile Communications provides handheld products, digital cameras, and computers (Kaplan, 2011). The division of Device Solutions offers a system large scale integrated circuits, memory, and light-emitting diode (Samsung Inc., 2019).

Samsung began on March 1, 1938, as a grocery trading store. It was founded by Lee Byung-Chull, in Taegu, Korea. It mostly traded noodles and other goods that were produced as well as around the city. It exported the products to China and the provinces. After the end of the Korean War, Lee considered expanding the business into textile. As a result, he opened the biggest woolen mill in South Korea. His primary focus was on industrialization. He aimed to help his country in self-redevelopment following the ending of the war. During the period, the company significantly benefited from the new protectionist policies that the South Korean government adopted. The purpose of the strategies was to assist large domestic companies by protecting them from stiff competition, as wee as providing them with cheap and easily-accessible financing (Kaplan, 2011).

In the 1970s, Samsung expanded its textile business to cover the full production line. It started producing raw materials to finished products, aiming to compete effectively in the textile industry. There were several newly established subsidiaries such as Samsung Shipbuilding, Samsung Heavy Industries, and Samsung Techwin. In the same period, Samsung also invested in the massive, chemical, and petrochemical industries. The move offered the company a more promising path of growth in the sector (Samsung Inc., 2019).

1969 is the year during which Samsung first entered the electronics industry. At the time, it had established several electronics-focused business divisions. The company’s first products comprised of black-and-white televisions. In the 1970s, it started exporting home electronic products to overseas countries. At the time, the company had already become a significant manufacturer in South Korea. As well, it had acquired a stake of fifty percent in Korean Semiconductor (Kaplan, 2011).

In the late 1970s, as well as the early 1980s, Samsung experienced a rapid expansion of its technology business. It established separate branches of semiconductor and electronics. In the year 1978, it created an aerospace business division. In 1985, the

company established its Samsung Data Systems (SDS), to serve the growing need of the business for systems development. The SDS helped the company to become a market leader in the Information Technology (IT) services. It also established two institutes for research and development, which widened the technology line of the company into semiconductors, electronics, genetic engineering tools, high-polymer chemicals, telecommunications, nanotechnology, and aerospace. The company, in the 1990s, continued expanding into international electronics markets. In the 2000s, Samsung invented the Galaxy smartphone, which immediately became the most praised product of the company. As from 2010, the Galaxy series grew to tablet computers following the introduction of the Galaxy Tab (Samsung Inc., 2019).

The following are the links to the three news articles about the recent developments in Samsung Inc.

a. https://www.bbc.com/news/topics/c50znx8v808t/samsung b. https://www.crunchbase.com/organization/samsung-electronics/timeline/timeline c. https://economictimes.indiatimes.com/topic/Samsung

ReferencesBBC News. Samsung. (2019, July 25). Retrieved from

https://www.bbc.com/news/topics/c50znx8v808t/samsungCrunchbase. (2019). Samsung Electronics - Recent News & Activity. Retrieved from

https://www.crunchbase.com/organization/samsung-electronics/timeline/timelineEconomic Times. (2019). Samsung: Latest News on Samsung | Top Stories & Photos on

Economictimes.com. (2019, 25). Retrieved from https://economictimes.indiatimes.com/topic/Samsung

Kaplan, D. (2011). Samsung Galaxy Tab Application Sketch Book. Samsung Galaxy Tab Application Sketch Book, 7-160. doi:10.1007/978-1-4302-4228-4_1

Samsung Inc. (2019). About Us | Samsung US. Retrieved from https://www.samsung.com/us/aboutsamsung/home/

1.4 Project assignment

The Most Prominent International Risks That Samsung Inc. Will FaceWhen a company decides to go global, it faces various international risks.

Expanding the scope of an organization, especially the international diversification, means being ready to handle these risks (Sinha & Sinha, 2009). As a global company, Samsung Inc. will face international risks such as political risks and economic risks. As well, it will experience several limits to worldwide expansion and diversification.

One of the primary risks that most international companies face is political risks. Also known as geopolitical risks, political risks happen a nation’s government changes its policies unexpectedly, harming the foreign company. For instance, as a foreign company, Samsung will face policy changes such as trade barriers which prevent or limit its international business in some regions of the globe. Some governments will also demand additional tariffs or funds in exchange for the right to export electronic items to their country. Tariffs and quotas will favor the domestic products of that country at the expense of imports, thus making competition unfair for Samsung (Sinha & Sinha, 2009).

As well, political risks will affect the organization’s profits significantly. Most of these policy changes would either cut revenues as a result of increased tax levies on exports or restrict the amount of income that the company can earn. Generally, organizations which decide to expand their operations into foreign countries are most likely to experience significant uncertainties in their revenues or profits as a result of policy changes in the foreign nations (Punnett, 2014).

Economic risk factors also affect international businesses. As such, Samsung would have to deal with several economic issues when expanding into global markets. For instance, if the company imports product or materials, it must be much careful to ensure they are delivered promptly. As well, the geography and economic conditions in the specific country of operation would be vital for the success of the company. Oceans and mountains create international barriers that the organization must address in its business plan for the international diversification.

Besides, the economic instability of the foreign country may hinder the company’s usual business operations, thus reducing its profits substantially. Even if the foreign country in question has a stable political system, it may lack a reliable infrastructure for providing a sound economic environment for the organization’s day-to-day operations. Also, financial risk can arise due to the changes in the fundamental economic policy objectives or the comparative advantage of the country. Economic uncertainty has a connection with political risk since both of them deal with the policy in the country (Punnett, 2014).

Samsung Inc. will face various limits on international expansion and diversification. For instance, culture and language barriers would be a significant limiting factor. The company would face difficulties translating its core operational and marketing materials into the local language. In this case, the name of the product, slogans and concepts may not have meaning to the target culture and language, leading to rejection (Sinha & Sinha, 2009).

As well, it would face legal barriers stemming from the nation’s legislation, which may not offer a conducive environment for the company to establish certain types of arrangements in a distributorship. Also, import restrictions, tax laws, and customs laws can become stumbling blocks. Furthermore, the organization may lack reliable access to raw materials and human services. All countries do not offer the same degree of access to vital skilled labor as well as raw materials for the core operations of the business (Punnett, 2014).

ReferencesPunnett, B. J. (2014). Experiencing International Business and Management: Exercises,

Projects, and Cases. London, England: Routledge.Sinha, P. K., & Sinha, S. (2009). International Business Management. New Delhi, India:

Excel Books India.

2.2 Project Assignment

IntroductionA marketing strategy is also allows a company to improve its sales, productivity

and profitability level. For instance, through marketing strategies, a company can enhance organizational growth and create specific and strategic plan to cater the needs,

wants and desire of customers. Overall, it can be said that, marketing helps a company in attaining its corporate strategic marketing goals, and objectives effectively and successfully. Moreover, it should also be noted down that, the main objective of this research paper is to develop a clear understanding in the minds of readers, students and researcher about the significance, roles and importance of a marketing strategy in the total success of a company and addressing the specific aspects of the marketing plan. This paper would also discuss how the marketing plan should be executed with the help of marketing strategy.

Marketing Strategy for SamsungBased on the overall internal and external business environment, business

situation, company business segments, it can be said that, the company Samsung should pay specific attention on adopting as well as using Marketing Mix strategy in order to attain overall marketing goals and objectives effectively and successfully. But, the marketing mix strategy should be used by the company as a fundamental marketing tool, strategy and model to enhance its business performance in the market. In addition to this, the company would be able to focus broad level of marketing actions related to price, place, promotion and product with the help of marketing mix strategy. In the same way, this marketing mix strategy would help the company in promoting its brand image in the global market.

This marketing strategy would also allow the company to formulate the specific product offing in new and existing target market. For example, with the effective use of this marketing strategy, the company can be able to understand as well as examine the wants, needs, expectations of the customers successfully. Along with this, it would also be important, valuable and essential for Samsung to adopt following types of marketing strategies based on the marketing mix strategy for the total success such as:

Marketing Mix StrategyName of the Marketing

StrategiesTypes of Marketing Strategies

Marketing Mix Product Strategy

Based on the marketing mix product strategy, the company Samsung would need to adopt a range of product strategies such as: Quality Strategy, Differentiation strategy, Delivery strategy, Service strategy, and flexibility strategy in order to attain competitive advantages over competitors

Marketing Mix Pricing Strategy

In order to attract and retain the customers, the company should follow the following types of strategies including:Competitive Pricing: According to this strategy, Samsung would need to select strategic price points as per the competitor’s pricing strategies to take the competitive advantages over its key competitors.Skimming Pricing: Based on this strategy, the company would need to set a high initial price for its wide range of product or services at the initial time, and then it has to reduce the price over time.

Marketing Mix Distribution/Place Strategy

Value Proposition Strategy: Samsung would need to create and develop a solid, positive and attractive value proposition statement reflecting the core value of the organization. This statement should

reflect why customer should buy the products or services of the company.Unique Selling Proposition Strategy: based on this strategy, the company would need to offer unique value to its customers as compare to its competitors to attain competitive advantages in the market.

Marketing Mix Promotion Strategy

In order to promote the brands or products successfully, the company would need to pay attention on using the following marketing promotional tools such as:

Direct marketing strategy Personal selling Online marketing Public relations strategy

On the other hand, it would also be important for the company to implement or execute the marketing plan effectively and successfully. But, the company would need to adopt and follow the following strategic marketing process in order to execute the marketing plan such as: Step1: Identification of organizational overall opportunities, goals and objectives: This is the first and primary step in the marketing plan execution by which the company Samsung would need to focus on identifying the long & short term goals, objectives and opportunities by paying attention on the following aspects such as:

Defining the strategic vision of marketing team Identifying the organizational market opportunities and core competencies Considering the end-to-end customer journey

Step 2: Creation of Specific and effective marketing strategies: This is the step by which the company would need to draft the marketing strategies and actions. For instance, the marketing manager would need to make collaborative effort with the team. In this step, the company should hold brainstorms, planning sessions, informal discussions, and encourage questions and feedback. Step 3: Break down all the marketing strategies into tactics: In this stage, the all the marketing strategies would need to break down into tactics. Additionally, in this stage, strategies would be in the central place, so the company would need to assign a point person for each marketing strategy. Simply, it can be said that, the responsible marketing people would need to develop appropriate teammates to plan the programs. Step 4: Making processes repeatable: In this stage, the company would need to standardize the overall processes in order to execute the plan. Step 5: Know where work stands… all the time: This is the last and final stage by which the company and its responsible people would need to track and monitor all the marketing strategies in an effective and proper manner.

ConclusionOn the basis of above discussion, and analysis, it can be concluded that, in the

present time of globalized, competitive, and dynamic and fast growing business environment, it is not only important but also essential for all the types of firms, organizations or companies to adopt and utilize effective and best marketing strategies for the overall success. It is because with the effective utilization of specific, effective and

innovative marketing strategies, a company can gain competitive scope and edge over its key competitors.

ReferencesSamsung, 2019. About Us. Retrieved From: https://www.samsung.com/in/ Hennart, J.F. & Slangen, A.H., 2015. Yes, we really do need more entry mode studies! A

commentary on Shaver. Journal of International Business Studies, 46(1), pp.114-122.

Kim, H. & Chung, L., 2017. An analysis on the preference of consumers to the choice attributes of beef restaurant. Korean journal of food and cookery science, 33(2), pp.228-236.

Kim, S., Choe, J.Y. & Lee, A., 2016. Efforts to globalize a national food: Market segmentation by reasons for ethnic food preferences. International Journal of Contemporary Hospitality Management, 28(10), pp.2310-2330.

Rehm, C.D. & Drewnowski, A., 2015. Trends in energy intakes by type of fast food restaurant among US children from 2003 to 2010. JAMA pediatrics, 169(5), pp.502-504.

Sarkar, J.G., Sarkar, A. & Ponnam, A., 2015. Exploration of brand sacralization among the young adult consumers in the context of emerging Asian market. Young Consumers, 16(3), pp.264-280.

Sean Hyun, S. & Han, H., 2012. A model of a patron's innovativeness formation toward a chain restaurant brand. International Journal of Contemporary Hospitality Management, 24(2), pp.175-199.

Zhao, H., Ma, J. & Yang, J., 2017. 30 years of research on entry mode and performance relationship: a meta-analytical review. Management International Review, 57(5), pp.653-682.3.2 Assginment

IntroductionThe technology advancement has been a continuous exercise, which keeps

improving people lives from time to time. Throughout the years, there years, there has been massive technological evolution more so as far the consumer electronics are concerned. Computers, phones, TVs, and other electronic products had very few features and were usually humongous in the past. Nonetheless, thanks to the latest evolution in technology, such products are presented with design and performances improvements as well as huge sizes reductions. In the current world, mobile phones are graced with numerous amazing advanced attributes such as video internet, high-resolution cameras, video chats among many other modern features of the technology. Such attributes are not accorded to mobile phones only, but also in other products like refrigerators, printers, televisions, computers, microwaves, and many others. In the current times, most producers of consumer electronics focus on gaining a competitive advantage by incorporating to their devices special features, improved performance, as well as improved designs. Samsung electronics is among the best performing producer of consumer electronics in the world. This company is the current world’s leader in the production of a wide variety of consumer electronics including smartphones and televisions. Being established and based in South Korea, this firm has evolved into becoming one of the country’s and the globe’s biggest company. This plan will discuss Samsung Inc.’s marketing plan more so the one that targets the consumers of its yet to be

launched device called Samsung Galaxy fold. The outline of this plan will include the situation analysis, the marketing strategy, the marketing tactics, and a Marketing program assessment.

Company BackgroundSamsung Electronics, being founded by Lee Btung Chull in South Korea in the

year 1969, it has grown to become one of the leading companies both locally and across the globe. Samsung Group of companies being the current largest South Korean, is the one in which Samsung Electronics is part of as a subsidiary (Cheng, 2015). Samsung Electronics deals with a range of products including home appliances, televisions, mobile phones, cameras, and computers. Samsung Electronics is currently the best maker in about every type of electronic product in the globe. For example, this firm has been the leading producer of mobile phones since the year 2011. It is also the leading firm as far as TV manufacture is concerned.

Situation AnalysisSamsung Galaxy Fold is probably the first-ever smartphone made with both 3D

cameras and folding screens ("Samsung unveils Galaxy Fold", 2019). Market Summary

This is a phone that probably will not target the influencer, young generation but instead, the target market seems to be the working professional who is middle-aged (Estrada, Estrada & Smith, 2019). This is probably this product is likely to be sold at a four-figure level which can most likely be afforded by this group of consumers. The young generation may have to practice some patience of a few years down the line since the company also has plans of releasing newer versions of this which are affordable.

This is only an indication that Samsung wants to proclaim itself as the best among innovators rather than positioning itself in the market as the next big thing as far as smartphones are concerned. This could actually be true since it is the first company to come up with this design of fold screens and stretchable batteries and it is likely that other big companies such as LG and Huawei are likely to follow suit. This is a good strategy for a company, being the leader as other follows. It helps in building the brand name and boosts the confidence of the customers.

According to a survey done by the Pew Research Center, people who stay in households that earn more than $75000 annually possess a smartphone. Such consumers usually love to move with the trend and are most likely to be attracted to this new introduction in the market. Being a 5G smartphone and also with 3D cameras, most consumers will love to hold the grip of this phone in their hands. Competition

In terms of competition, Samsung Galaxy Fold does not lack any. Despite being the first one of its kind in the market, there are various newly introduced rivals that are likely to offer stiff competition to this lovely phone. The major rival to this phone, as usual, will be presented by Apple. Apple iPhones, 2019 models are the ones that are likely to go head to head with this phone model (Jon Porter, 2019). However, another probable competitor is Huawei’ Mate X. It is also likely that Huawei will launch its Mate X the same month, September 2019, like Samsung Galaxy fold. While all of these devices ought to have been released some few months ago, they have been delayed so as to make some improvements on them. Therefore, all of this device has the market afresh

and eagerly waiting for what will be delivered. This will be crucial since it will be a matter of break or make. The company that will produce the best quality phone with minimal hitches is likely to take over the market share. It all a matter of time and we’ll just have to wait and see.

Marketing TacticsAccording to de Brentani & Kleinschmidt (2004), for any new product to attain

success in the international market, the manufacturing firm has to come up with creativity in the manner at which it uses its resources. The marketing tactics of this product will be developed through the implementation of the life cycle stages of a new product. These include the introduction stage, the growth stage, the maturity stage, and the decline stage. Differentiation from the competition

In the smartphone market, Samsung galaxy differentiates and position itself as a superior and unique brand. According to Samsung’s website, the phone is described as a device that “doesn't just define a new category, it defies category.” The device comes under new futuristic colors that match the consumer’s lifestyle. These include Cosmos Black, Martin green, Space Silver and Astro Blue. In terms of dimensions, it comes in two packages, that is Folded: 62.9 x 160.9 x 17.0 mm (Hinge)–15.5 mm (Sagging) and Unfolded: 117.9 x 160.9 x 7.5 mm (Frame)–6.9 mm (Screen). It has a triple rear camera of 16MP Ultra Wide Camera, 12MP Wide-angle Camera, and 12MP Telephoto Camera to help you capture your photos like a professional.

In terms of performance, it comes with a powerful battery described as LTE model: 4380mAh (typical) dual battery5G model: 4235mAh (typical) dual battery. It also has fast charging both on wired and wireless technology. The device is also fixed with intelligence performance enhancer, very crucial element in today’s mobile device technology. These are just but a few of the amazing features of the device that make it outstanding as described in the company’s website.

Marketing Program AssessmentThis program of marketing will be assessed three months after the device is

launched. To determine whether or not the marketing goals were met and the effectiveness of the marketing campaign, the data obtained during the marketing campaign will be used. The impact of increased visibility on sales as the main objective of the marketing plan will be measured. In determining whether the marketing plan milestone was met, we will measure the response to every direct marketing tactic. The sites that had the most traffic, the web marketing ad banners that got most clicks, and the material which was highly downloaded will be ascertained using such metrics. Such data will be utilized in concluding whether each of our marketing goals was attained, so as to make the September 2019 launch of Samsung Galaxy Fold a success.

ConclusionThis marketing plan for Samsung Galaxy Fold is a useful tool in ensuring the

launch of Samsung Galaxy Fold in September 2019 will be effective. Discussed herein have been the situational analysis, the marketing tactics, and also how the company differentiates itself from another competitor in the same market.

References

1. Samsung unveils Galaxy Fold. (2019). Retrieved 29 July 2019, from https://www.channelmiddleeast.com/business-strategy/86979-samsung-unveils-galaxy-fold

2. Estrada, M., Estrada, M., & Smith, C. (2019). Samsung’s target demographic for its foldable phone will be middle-aged professionals. Retrieved 29 July 2019, from https://bgr.com/2018/12/04/samsung-foldable-phone-target-market/

3. Jon Porter. (2019). New iPhones won’t be the only competition for the Galaxy Fold this September. Retrieved 29 July 2019, from https://www.theverge.com/2019/7/25/8930291/huawei-mate-x-september-launch-samsung-galaxy-fold-delay

4. Cheng, J. (2015). What to Know About Samsung – The Short Answer. WSJ. Retrieved 14 May 2016, from http://blogs.wsj.com/briefly/2015/05/11/what-to-know-about-samsung-the-short-answer/

5. de Brentani, U., & Kleinschmidt, E. J. (2004). Corporate Culture and Commitment: Impact on Performance of International New Product Development Programs. The Journal of Product Innovation Management, 21, 309-333. Retrieved from http://web.a.ebscohost.com.contentproxy.phoenix.edu/ehost/pdfviewer/pdfviewer?sid=b8e818de-d8bd-4aac-aeb4-ff517e44b354%40sessionmgr4001&vid=3&hid=4112

4.1 project Financial Projections

Year 1Q1 2019 Q2 2019 Q3 2019 Q4 2019 Total 2019

Sales Forecast (Units)

9,000,000 15,000,000 10,000,000 11,000,000 45,000,000

Average Selling Price Per Unit

$792 $792 $792 $792 $792

Total Sales/ Revenue

$7,128,000,000 $11,880,000,000 $7,920,000,000

$8,712,000,000 $35,640,000,000

Direct CostAverage Variable Cost Per Unit

$255 $255 $255 $255 $255

Total Direct Cost

$2,295,000,000 $3,825,000,000 $2,550,000,000

$2,805,000,000 $11,475,000,000

Year 2Q1 2020 Q2 2020 Q3 2020 Q4 2020 Total 2020

Sales Forecast (Units)

11,000,000 11,000,000 10,800,000 14,000,000 46,800,000

Average Selling Price Per Unit

$554 $554 $554 $554 $554

Total Sales/ Revenue

$6,098,400,000 $6,098,000,000 $5,987,520,000

$7,761,600,000 $25,945,920,000

Direct Cost

Average Variable Cost Per Unit

$255 $255 $255 $255 $255

Total Direct Cost

$2,805,000,000 $2,805,000,000 $2,754,000,000

$3,570,000,000 $11,934,000,000

Year 3Q1 2021 Q2 2021 Q3 2021 Q4 2021 Total 2021

Sales Forecast (Units)

13,000,000 11,000,000 10,800,000 13,672,000 48,672,000

Average Selling Price Per Unit

$396 $396 $396 $396 $396

Total Sales/ Revenue

$5,148,000,000 $4,356,000,000 $4,356,000,000

$5,414,112,000 $19,274,112,000

Direct Cost

Average Variable Cost Per Unit

$255 $255 $255 $255 $255

Total Direct Cost

$3,315,000,000 $2,805,000,000 $2,805,000,000

$3,486,000,000 $12,411,360,000

Samsung Galaxy Fold’s first-year revenue is expected to be approximately $35.6 Billion. This is based at 45 million unit sales which go at a selling price of $792 on average. The anticipated sales by Samsung is as follows:

Q1: $7Billion Sales Q2: $11.9 Billion Sales Q3: $7.9 million Sales Q4: $8.7 Billion in sales.

In it assumed that at Q1 the sales will be higher since the product would have just been newly launched. The sales would rise substantially in Q4 attributable to the holidays.

Owing to strong demand of Samsung Galaxy Fold, it is assumed that over the next two years, Samsung will experience an increase in sales. For the second and the third year, the company is very skeptical of the increase in sales and has projected only a 4 percent increase.

The financial projection is important for any type of business. It helps in establishing a clear path to follow in terms of tackling daily problems of operating the company as well as allocating the stock as per the current situation of the company. It also helps in monitoring and adjusting both the external and internal changes that occur in a family. It also gives a better platform to identify opportunities and problems by reevaluating the company’s markets, strength, and competition ("Financial Projections Definition - Entrepreneur Small Business Encyclopedia", 2019).

Marketing Expense Budget for the Samsung Galaxy FoldYear 1

Marketing Expenses Budget

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Total 2019

Advertising $350,000,000 11,000,000 10,800,000 13,672,000 48,672,000

Sales/ Promotional

$200,000,000 $300,000,000 $200,000,000 $300,000,000 $100,000,000

Total Sales and Marketing Expenses

$550,000,000 $800,000,000 $550,000,000 $800,000,000 $2,700,000,000

Percent of 7.83% 6.84% 7.05% 9.32% 8%

sales

Contribution Margin

$4,175,000,000

$7,075,000,000 $4,700,000,000 $4,975,000,000 $20,925,000,000

Contribution Margin/ sales

59.4% 60.47% 60.26% 57.98% 59.62%

Year 2Marketing Expenses Budget

Q1 2020 Q2 2020 Q3 2020 Q4 2020 Total 2020

Advertising $224,324,000 $500,000,000 $350,000,000 $350,000,000 $1,424,324,000

Sales/ Promotional

$100,000,000 $100,000,000 $100,000,000 $100,000,000 $400,000,000

Total Sales and Marketing Expenses

$324,324,000 $600,0,000 $450,000,000 $450,000,000 $1,824,324,000

Percent of sales

5.40% 9.99% 7.63% 5.89% 7%

Contribution Margin

$2,876,676,000

$2,601,000,000 $2,692,800,000 $3,624,000,000 $11,794,476,000

Contribution Margin/ sales

47.90% 43.31% 45.67% 47.41% 46.16%

Year 3Marketing Expenses Budget

Q1 2021 Q2 2021 Q3 2021 Q4 2021 Total 2021

Advertising $200,000,000 250,000,000 250,000,000 300,000,000 1,000,000,000

Sales/ Promotional

$50,000,000 $50,000,000 $50,000,000 $50,000,000 $200,000,000

Total Sales and Marketing

$250,000,000 $300,000,000 $300,000,000 $350,000,000 $1,200,000,000

Expenses

Percent of sales

4.93% 6.99% 6.99% 6.56% 6%

Contribution Margin

$1,505,000,000

$1,185,000,000 $1,185,000,000 $1,495,720,000 $5,370,720,000

Contribution Margin/ sales

29.68% 27.62% 27.62% 28.05% 28.29%

The expense budget of Samsung’s marketing includes social media communication, promotional sales, online marketing, customer service support, advertising, stores display, public relations, and sales training. The market campaign spending by Samsung is huge in the first year just when the product is newly launched.

Reference1. Financial Projections Definition - Entrepreneur Small Business Encyclopedia.

(2019). Retrieved 31 July 2019, from https://www.entrepreneur.com/encyclopedia/financial-projections

How can the use of Analytical Models help Samsung Make Strategic Business Decisions?

Samsung is a technology juggernaut whose success is hugely admired by several companies all over the world. To continue dominating the space, Samsung must continue to make good business decisions. To make informed strategic decisions, companies must be able to make good use of analytical models. Companies with high business performance usually draw insights from their data. Analytics enable companies to understand their past better and get a peek into the future and prepare for possible misfortune.

There are three types of analytics models that will be considered in this paper and how their application by Samsung will help to make better strategic decisions. The analytical models include; descriptive analytics, predictive analytics and prescriptive analytics. Research has shown that organizations that use analytics can improve their ROP by 188 percent. Additionally, companies that have embraced advanced analytic deployments have positively enhanced their ROI by 1209 percent. Therefore, Samsung has the potential to improve its ROI if it uses analytical models.

Descriptive Analytics

Samsung can use descriptive analytics to analyze historical trends as well as to understand patterns relating to its target population. Through the insights obtained, the company will be able to make better decisions, particularly on increasing customer satisfaction and product innovation hence increasing its sales and profits (Horwitch & Milicsevics, 2018). Also, the collected data is essential in understanding the break-even of Samsung’s various business units. Another great use of descriptive analytics by Samsung will be customer segmentation, through using its collected data; the company will be able to understand its customers better. Customer’s spending patterns, age, country and wallet share are vital data that Samsung can use to forecasting purposes.

Predictive Analytics

Samsung can make great use of predictive analytics to predict the probability of future outcomes. This analytic model answers the question 'What could happen? And it intends to help companies to take the best actions to future results. Predictive analytics will enable decision-makers within Samsung to make informed decisions (Horwitch & Milicsevics, 2018). For example, Samsung can use a predictive analytics model to predict the likelihood of a customer buying future Samsung products. Thus, the information obtained can help a company to make smart decisions on how it will approach its marketing campaigns and the message to be passed to attain the desired effect on its customers.

Prescriptive Analytics

Samsung can use prescriptive analytics to answer the question 'What should be done?' The importance of this analytic model is that it goes deeper in helping organizations understand what should be done in the predicted future. This analytics help companies to understand future risks on the business and suggest the optimal action (Horwitch & Milicsevics, 2018). An example of prescriptive models by Samsung can be the optimum allocation of Research & Development (R&D) funds across the various business divisions.

It is indeed a fact that analytical models are critical for better decision making in business. Companies that want to have an edge in their industries must purposely make use of analytical models. Samsung stands to benefit significantly through understanding its market and customers well through the application of analytical models, which will indeed help it make strategic business decisions.

References

Horwitch, M., & Milicsevics, M. (2018, August). Incumbent Firm Capacity Building in

Analytics: Strategy, Structure, and Innovation Management Perspectives. In 2018

Portland International Conference on Management of Engineering and

Technology (PICMET) (pp. 1-19). IEEE.