Samsung Corporation in the UAE

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Table of Contents

Executive summary
Section 1: Primary Policies, Objectives, and Strategies
Problem identification
Strategy implementation
Strategy evaluation

Executive summary

Samsung Corporation (Samsung) is an international designer, manufacturer, and marketer for electronic products such as computers, TV/Audio/Video, camera, home appliances, and printing/press. The company’s headquarters are located in Seoul, South Korea. However, it has a strong presence in various parts of the world. In the Middle East, the company operates a regional office in the city of Dubai, UAE. The office is responsible for marketing, supplying, and marketing research in the region. It uses both direct and indirect market entry strategies such as company stores and joint ventures, respectively. This paper identifies the company’s current mission, vision, objectives, and strategies for marketing in the UAE. It also identifies the problems facing the company in its UAE market. To deal with these problems, the paper formulates a new marketing strategy and develops a method of evaluation.

Section 1: Primary Policies, Objectives, and Strategies

Samsung’s main aim is to increase its market share in the UNITED Arab emirates. Therefore, the company has outlined a number of objectives, policies, and strategies to achieve this dream. Noteworthy, the United Arab Emirates is a fast-developing nation, with major cities and towns growing at a fast rate. In addition, the population is diverse, with a large population of foreigners in cities like Abu Dhabi and Dubai. It is also worth noting that the country does not host any of Samsung’s manufacturing organs, which means that the presence of the company in the country is purely based on marketing. Therefore, the company’s strategies, objectives, and policies in the UAE are meant to improve its presence in the market by increasing its market share every year.

Mission

Samsung hopes to inspire the world and create the future for the global community through the provision of customized, digital, and user-friendly products in the local markets. It aims at making the products available to every person at reasonable prices in all parts of the region. In line with the company’s global vision, the mission is to emphasize new technology, innovative products and create solutions to the problems facing communities.

Strategic marketing objectives

The marketing objectives outlined in the company in its UAE outlets are similar to the set of objectives developed for its presence in the Middle East and North Africa. In general, Samsung aims at improving its sale of all brands from the current 40% to more than 75% in the next five years. In addition, the company aims at creating a market driven strategy and a valuable design for the customers in UAE.

Marketing policies

To achieve these objectives, the company aims at increasing the number of outlets and partnerships with local and regional retailers through joint ventures. The company strives to increase the number of products of all types in order to develop a unique market niche in the UAE. In particular, the company has increased the number of Smartphone, plasma television and other customized and modernized products in order to fit the target market.

Secondly, Samsung Electronics recognizes its responsibilities as a foreign corporation working in the UAE. As such, it strives to address the local and global challenges posed by environmental changes. It supports the regional and global cuts of the greenhouse gas emissions. Moreover, the company strives to ensure that at least 30% of its employees in the UAE are recruited from the local communities in order to abide with the market ethics and corporate social responsibility policies. This policy will ensure that the company’s products are appreciated and embraced in the local market.

Marketing strategies

The company uses a regional marketing strategy that applies to its presence in UAE as well as other countries in the Middle East, India and Pakistan. First, the product strategy used in the UAE is based on the product to be marketed. In this case, the company markets four major categories of products- Mobile Phones, TV/Audio/Video, camera/cam recorder, Home appliances, PC/Peripherals, and printing products. The company ensures that its products are made available in its outlets in major cities in The UAE. In addition, it has embarked on opening smaller retail outlets in other town in all parts of the UAE.

Secondly, Product is an important aspect in marketing. Samsung entered the UAE market in 2007. After three years in the Gulf market, the company launched a number of products, especially Smartphone technologies. To improve its presence and market share, the company has been supplying the local market with Smartphone gadgets enhanced with Windows mobile, android operating system and Bada, a customized operating system developed by Samsung Inc. This strategy will help the company compete with dominant players in the gulf market, including Apple and Research in Motion.

Samsung embarks on providing the market with digital technology in most of its products. The digital technology is in high demand in the country, especially in the communication, entertainment, broadcasting and education sectors. The company aims at becoming the major and model provider and supplier of these products in the UAE.

Thirdly, Samsung emphasizes on a strong pricing strategy. As one of the classic ‘Four P’s’ marketing strategy, pricing is an important aspect of marketing in the UAE as well as the Middle East. In this case, Samsung has recognized the degree of price sensitivity in the country. As such, it aims at sustaining a relatively low pricing strategy compared to its competitors in the UAE market. Customers in the UAE are relatively sensitive to product prices, especially in mobile, TV and digital technology. There is a tendency of comparing product prices before a customer makes decision. Therefore, Samsung strives to maintain reasonable prices in the market.

Fourthly, Samsung has a strong promotion strategy that seeks to create awareness of its product in the local market. For instance, it has embarked on aggressive advertisement and promotion campaigns, especially outdoor and broadcasted messages. The outdoor advertising is aggressive, which involves erecting massive and numerous billboards along major highways, streets and on top of some of the most important buildings. For example, the company has entered into an agreement with a number of major hotels and tourist sites in Dubai and Abu Dhabi, which allows the company to erect large advertisements on their buildings. The aim is to ensure that every person visiting these sites or passing through the nearby streets and avenues notes the presence of the company in the city. In addition, the specific products, especially digital TV, camera and mobile phones, are advertised in these boards.

Management strategies

Samsung has a well-developed and relatively centralized management structure. From its headquarters in Seoul, South Korea, the company has diversified its operations to all the continents in the world. It has a strong presence in Asia, Europe, Americas, Australia and Africa. Currently, the company has a marketing management body that comprises of regional managers, their assistants and other personnel. In the United Arab Emirates, the company has its headquarters located in Dubai. A marketing manager oversees the operation of the company in the country. In addition, it has a telecommunication manager responsible for marketing telecommunication products in the Middle East.

In addition, there are local management bodies responsible for marketing the company’s products in its numerous retails spread all over the country. These personnel are answerable to the regional managers in the Dubai office.

Audit and accounting strategy

Samsung has both external and internal auditing bodies. In Dubai office, auditing is done to account for the company’s operations in the region. It seeks the services of PWC external auditors, a London-based corporation that provides auditing and analyzing services to various organizations throughout the world.

Research and Design strategies

Samsung has a strong R&D strategy that is embedded within the company’s global culture. The company is strongly based on research and design because the electronic and communication sectors are faced with dynamic changes due to the extensive research being carried out to develop superior products. In fact, companies are striving to outdo each other in mobile, digital, TV and computer sectors through research and development. While the company’s research and design is done mainly at its headquarters in South Korea, it is evident that these aspects influence its presence and market share in the UAE.

However, it is also worth noting that market research at the UAE market is significant. The company carries out extensive market research in the Gulf region in order to determine its position relative to other companies. In addition, the market research is important for determining the company’s weaknesses, strengths, threats and identification of new opportunities for expansion. The primary market research for the company in the UAE is done through analysis of its performance, the perceptions of customers and retailers as well as the media. In this way, the company determines its position in the competitive market.

Corporate social responsibility strategy

Samsung has a strong corporate social responsibility strategy that applies to its global market. First, it recognizes the need for a ‘green world’, which simply means reduction of the greenhouse gases released from its activities. For instance, the company is currently building a GHG inventory for controlling the rate of greenhouse gas emission in its activities. The inventory has scope 1 and scope 2 missions that include reduction of direct emission and electricity purchases. In addition, scope 3 inventory focuses on employees, transport, supply and product use. In this case, the company seeks to reduce the amount of greenhouse gases used in all the processes involved in making the product available to the consumers.

In addition, the company is involved in various CSR projects in the Middle East, including UAE. For instance, it is actively involved in supporting medical camps in various parts of the country, especially in the rural areas. The company is also involved in providing scholarships to university students in the Middle East, which aims at creating a strong social, technological and business community.

Appropriate tools used to analyze the company

This analysis develops an intensive analysis of the company’s objectives, missions, policies and marketing strategies. It aims at using the company’s annual reports, advertisement projects, newspaper and magazine reports, online reports and the market analysis literature available for Dubai, Abu Dhabi as well as the UAE in general. In developing an understanding of the company’s strategies, a careful review of its market share, marketing strategies and projects is developed. These materials provide evidence of the company’s presence in the market, its market share, performance and competitiveness in relation to the other companies providing similar products and services.

Problem identification

Despite the strong and effective strategies for marketing, the company’s presence in Dubai faces a number of problems. First, the company has not achieved its target market share of about 25% by 2014. Secondly, the competition in the market is stiff, making it difficult for the company to achieve its target. Thirdly, market dynamics affect the company’s presence in the UAE, especially in Smartphone technology that keeps changing due to extensive research and innovations by competitors. Moreover, it is worth noting that the market itself is highly dynamic due to the changing attitudes, preferences and tastes among the customers. To ensure that the company achieves its objectives and aims, it is important to develop a strong marketing strategy and implement it within the next few months.

The proposed strategy involved three major aspects- expansion of the existing outlets, routine research and analysis of customer’s perceptions and involvement of the opinions of the local communities and employees in decision-making procedures.

First, Samsung needs a major expansion in order to ensure that the company moves beyond Dubai and Abu Dhabi. The company’s competitiveness is affected by its presence. To ensure a smooth and inexpensive approach, the company will identify six partners in order to develop joint ventures. The major partners will be retailers with at least 10 outlets in various small towns in the UAE. The retailers will be involved in the real processes and tasks of marketing the product while Samsung’s offices in Dubai and Abu Dhabi will take the role of suppliers. In this way, the partners will ensure that they market the product in their stores, supermarkets and malls. In addition, it is the role of the partners to ensure that small retailers obtain the product from their stores. This strategy will ensure that Samsung reduces the costs of marketing, advertisement and transport. Since the partners will have already set marketing and advertisement procedures, it is clear that the volume of sale will increase significantly in the next fiscal year.

Secondly, a strategy for routine analysis and review of the company’s presence and performance will be done. This will take place every three months. The aim is to determine the progress of the first strategy. This task will include an in-depth analysis of the partner’s worth in terms of marketing. Partners will be required to provide quarterly reports of their work, including the volume of sales, market dynamics, review of their customer demands and other factors associated with the market. In this way, the company will develop an in-depth understanding of the worth of the joint ventures.

Thirdly, the information above will be used to make major decisions. Such decisions will be important in reviewing or enhancing the company’s market share. Employees, retailers and consumers will be asked to provide their opinions before decisions are made. In the UAE, it is evident that consumer perceptions are mostly communicated to the employees, especially salespeople because they have a personal contact with the customers.

Strategy implementation

Implementation of this strategy will take place in the next eight months. The first step is to call for partnership in joint ventures. The company will advertise in the local media, seeking to recruit the six best partners. The partner must be a company with not less than 10 stores in more than two towns or centers. Secondly, the company must have more than 100 employees in its sales departments. Thirdly, the partner must be registered company operating in the UAE and with an experience of not less than five years. In addition, the company must not be involved in selling or collaborating with Samsung’s competitors in the UAE or the region. Moreover, the company must have a strong marketing and advertising foundation.

The second step is to ensure that employees, retailers and consumers are involved in major decision-making. In order to develop better marketing methods, it is important to ensure that the opinion of these parties are obtained and analyzed. Employees have the best chance of obtaining the opinions and perceptions of the consumers. As such, they will be required to provide their opinions based on their experiences with their customers. This means that the local community of employees and consumers will be involved in the process of developing effective marketing strategies.

With an increasing use of the internet as the major communication platform, most people in UAE are members of at least one social network. Therefore, it is easy to communicate with consumers through these sites. Therefore, the strategy will also involved formation of a social networked community using the existing social sites such as Twitter, Facebook, Google and others. The company will established these sites and ensure that an active Public Relation office is developed in order to control these communities, take people’s opinions and respond to their queries.

Strategy evaluation

The proposed marketing strategy is expected to provide effective results within its three months of existence. To ensure that the model works as expected, it is important to carry out an in-depth strategy evaluation every six months.

First, the expansion of the existing outlets in the UAE is expected to be the most complicated but important strategy. After the joint ventures have been established, it will be the role of Samsung UAE to determine the progress of the partnership. The company will request monthly reports from line managers as well as managers at the partners in the six joint ventures. After every six months, the six different reports from every manager and company will be reviewed, analyzed and compared with others. The aim is to determine the sections with strengths and weaknesses and to develop measures for addressing the problems identified. In addition, the partners will be reviewed in order to determine aggressiveness of marketing in these ventures. A decision to continue, review, overhaul or discontinue with each venture will be made after one year.

Secondly, reports from employees and retailers will be reviewed and analyzed after every three months to determine the effectiveness of the company’s marketing strategies. In this case, the company will determine the perception of the employees and their attitudes towards Samsung products in the UAE. It is clear that employee perceptions and attitudes are different and highly variable. Nevertheless, each analysis is expected to lead to some conclusion. Evaluation of this strategy will be carried after three months of its implementation. The effectiveness of the new strategy will determine whether the existing marketing strategies need to be reviewed, enhanced, maintained or terminated altogether.

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