Chinese Business
existing and established China Brands
Only established brands from the top three among the consumer¡¯s favorite should be considered for Joint Venture such as with Changhong, XiongMao and Konka (these three companies already control 35% of the local market). Samsung can either buy more shares or co-produce the television set by borrowing the local manufacturer¡¯s goodwill brand name by earning more based on volume selling (lower end products) and at the same time protecting Samsung¡¯s own high profile brand image.
Ensure highest product quality
Due to the intense competition from aggressive foreign and the domestic competitors, Samsung must strive to become the leading global company by always placing quality as their number 1 priority. The best way to gain their customer¡¯s trust and loyalty is to provide the best value for their money. Currently, Samsung is doing very well in its 27¡± television (2nd position) but need more improvement in the 20¡± category (6th position).
Anticipate future consumer taste and preference trend
Another possible trend shift may be towards the 25¡± television as the case study had indicated that this is the 4th most popular size preferences. If consumers are now having more purchasing power, it is very likely that bigger televisions will be affordable and preferred. The shift will come from the 36% of 21¡±: television buyers towards the now existing 11% of 25¡± television buyers. In addition, Samsung may continue to enjoy positive experience curve and economies of scale, thus making prices of their 25¡± television more competitive. Another possible significant shift may be buyers from the 18¡± television consumers heading toward the bigger television sets since the China market is now enjoying more economic growth and increased awareness of high technological high premium product brands.
Take the first step for the ¡®First Mover¡¯ Advantage
Since the China market has a history of their first mover enjoying advantages over late comers and tend to be loyal to a first mover¡¯s product, Samsung must make strong efforts in its marketing strategy for their future products. One very good example will be a ¡®soft launch¡¯ of Samsung¡¯s ¡®future¡¯ PLASMA, PROJECTOR and FLAT screened television in the bigger cities of China. This is not for sales purpose but more of an exhibit or showcase portfolio.
Although these products are very expensive and is most unlikely unaffordable, it is still a viable idea to expose to the China market of the latest and best technology made available by Samsung outside the China market- this helps to create a deeper impression in the eyes for the future television market in China. When the market is ready for such premium products, Samsung may be the first one to be associated with it.
More research on the China consumer market
Based on Exhibit 7, Samsung¡¯s pricing of their products are ranging between lower and mid ranged. Does this reflect on the perception of Samsung¡¯s product as a premium product? There are many researches that concluded that Chinese people often closely associate high premium brands with high prices. If Samsung wants to increase its profile as [next page]