marketing plan for samsung smart phone 2012 2015

TRƯỜNG ĐẠI HỌC MỞ TPHCM

UNIVERSITE LIBRE DE BRUXELLES

HO CHI MINH CITY OPEN UNIVERSITY

SOLVAY BRUSSELS SCHOOL

MBMM4
MBMM4

PHAN ANH KIET

MARKETING PLAN FOR SAMSUNG
SMART PHONE 2012-2015

MASTER PROJECT
MASTER IN BUSINESS & MARKETING MANAGEMENT

Prof. Dr. LE NGUYEN HAU

Ho Chi Minh City
(2011)


DECLARATION

I declare that this final project contains no material that has been accepted for the
award of any degree of diploma in any universities or other institution and contains
no material previously published or written by another person, except where due
reference is made

I undertake that this is the project of my own. Figures and result which are
mentioned in this project are righteous

Project Author

PHAN ANH KIET


ACKNOWLEDGEMENT
I owe a debt of gratitude to many people who helped me complete this
thesis. I would like to acknowledge the help of all. First of all I would like to
express my deepest acknowledgement to my supervisor, Prof. Dr. Le Nguyen Hau
from Ho Chi Minh City University of Technology (HCMUT), for his valuable
advice and recommendations.
In the process of data collection for this research, many people contributed
to the task and I am particularly grateful for their contributions. I am greatly
indebted to Mr Lee HyungAhn, Mr Thai Manh Binh, Mr Ly Thai Bao, and Mrs.
Dang Thi Hoai An, Mr Pham Ky Vien for providing advices and resources for me
to fulfill my study.
Special thanks are expressed to all professors from Solvay Business School
and Ho Chi Minh City Open University as well as my classmates for their supports
via lectures, discussions, debates, comments and feedbacks throughout my all
Master programs.
Finally, to my parents and my wife, I wish to extend my loving thanks for
their encouragement. My greatest debt of gratitude is to my wife, Mrs. Truong
Pham Bang Phu, who was patiently waiting me during my study in Ho Chi Minh
city. This course could not have been completed without her daily encouragement.

1

EXECUTIVE SUMMARY
With the advanced technology, smart phone gradually becomes smart tool to help
users a lot in normal life. Smart phone provide convenience, connection and
entertainment which enable its users to perform various activities with it every time and
everywhere including Value Added Services like Internet, 3G, GPS, Vietmap, etc…
This marketing plan illustrates Samsung smart phone getting customers and
creating a solid revenue stream. Our unique focus of creating smart phones with a
differentiate products gives us an advantage compared to competitors. Samsung tries to
give customers a maximum satisfaction with the best product quality and services. In
addition, Samsung tried to please its distributors and retailers in developing long term
benefit business with slogan “win to win”.
By analyzing SWOT of Samsung smart phone, it helps understand Samsung
strengths and weaknesses to develop own marketing strategy plan. In the first two years,
the project focuses on building brand awareness and increasing sales volume by flexible.
The market penetration strategies and “deeper and wider” channel expansion are action
plans in next three years. The marketing plan is fixed through marketing mix strategy
including Products, Price, Place, and Promotion.
By doing a 3600 marketing plan with efficiency and professionalism, Samsung
smart phone will get the purpose to become a beloved smart phone brand and leader
position in Vietnam market.


i

TABLE OF CONTENTS
Contents

Pages

Abbreviations And Acronyms

iii

Tables, Chart & Figures

iv

EXECUTIVE SUMMARY

1

CHAPTER I. INTRODUCTION

2

1.1 Background

2

1.2. Introduction to Samsung

2

1.3. Problem statement

3

1.4. Objective

4

1.5. Scope of works

4

1.6. Methodology

5

1.7. Structure of study

5

CHAPTER II. ENVIRONMENTAL ANALYSIS

6

2.1 External Environment Analysis

6

2.2 Market Analysis

9

2.3 Competitor Analysis

12

2.4 Internal Analysis

14

2.5. SWOT Analysis

16


ii

2.5.1 Opportunities

16

2.5.2 Threats

16

2.5.3 Strengths

17

2.5.4 Weaknesses

17

2.5.5 SWOT implications

17

CHAPTER III. MARKETING PLAN 2012-2015 FOR SAMSUNG
SMART PHONE AND ACTION PLAN

21

3.1 Marketing objectives

21

3.2 Marketing strategic plan

21

3.3 Marketing Mix

23

3.3.1 Product

23

3.3.2 Price

23

3.3.3 Place

24

3.3.4 Promotion

25

3.3.5 Budget Allocation

27

3.3.6 Evaluation

28

CHAPTER IV. CONCLUSION

29

REFERENCE

30


iii

ABBREVIATIONS AND ACRONNYMS
GFK

Name of a market research company, which monthly
provides market share, market information among consumer
electronic industry.

LCD

Liquid Crystal Display Television

GSO

General Statistics Office

Samsung Vina

Samsung Electronics Vietnam

CPI

The Consumer Price Index

GDP

Gross Domestic Product

UA (T3)

Unaided Awareness

MPSA

Most Preferred Brand (single answer)

OS

Operating system

ATL

Above the line

BTL

Below the line

POP

Point Of Purchase

POSM

Point Of Sales Material

BTL

Below the line

PS

Product Specialist like Promoter, introduce and sell
Samsung products at retailer/shop

SE

Sales Executive like merchandise, décor POP, arrange
products follow guideline and can train for floor salesman
at retailer


iv

APPENDIX, TABLES, CHARTS & FIGURES
APPENDIX
Items

Pages

Appendix 1: Vietnam’s GDP from 2002 to 2010

31

Appendix 2: Vietnam’s CPI from 2000 to 2010

31

Appendix 3: Percentage of mobile users with a smart phone

32

Appendix 4: Channel comparison between traditional shop and
modern trade.
Appendix 5: Comparison customer using smart phone and non-smart

33

34

phone
Appendix 6: Brand share of competitors

35

Appendix 7: Recommendation Rate Trend

36

Appendix 8: Brand KPI

36

Appendix 9: Samsung smart phone line up

37

Appendix 10: Key USPs of Samsung smart phone line up

37

Appendix 11: Retail Price and Profit

38

Appendix 12: Retail model investment

39

Appendix 13: Key USPs of Samsung smart phone

39

Appendix 14: Shop visiting

40


v

TABLE
Items
Table 3.1: Estimated plan sales of smart phone on Jan 2012
Table 3.2: Estimated plan sales of smart phone on Dec 2015

Pages
21
22

Table 3.3.5: Estimated budget allocation first 3 months of 2012

27

Table 3.3.6: The marketing budget can be spent maximum in theory

28

CHART

Items
Chart 3.3.3: Smart phone Distribution Channel

Pages
24

FIGURES
Items

Pages

Figure 2.1. Vietnam Population Pyramid

6

Figure 2.2. Technology household penetration

10

Figure 2.3. Smartphone market share Jan’11

13


vi


2

CHAPTER I. INTRODUCTION

1.1 Background
Technology is growing fast in the world. The mobile phone is not only a necessity
at this time but also a want among the people, especially smart phone. The next few years
will show that more and more people will be purchasing smart phones. Today customers
expect more choices, benefits to meet their demands.
In year 2010, Vietnam mobile phone is quite noisily at growth rate 25% versus
year 2009. However, the competition is also fierce. Mobile phone becomes a fast moving
consumer goods model in the world. The retail chain stores develop strongly, especially
in two main cities Ha Noi and Ho Chi Minh City with professional service, selling
consulting and value added service providing.
Together with the success in 2009 at turnover‘s growth rate around 50%, in 2010
year, Samsung Vina continued successfully to increase mobile phone to 13.1% market
share (as data from GFK 01/2011). Contributing to this achievement is smart phone line
up models which accounting for 60% market share. It will be foreseen that in 2011 will
be a noisy year after global crisis. The purchasing power of smart phone will increase
higher. The smart phone market competition is also stronger. Hi-end and medium smart
phone segment will increase faster.
1.2. Samsung Introduction:
1.2.1 Samsung Electronics Co., Ltd.:
Samsung Electronics Co., Ltd. is the chief subsidiary of South Korea's giant
Samsung Group and one of the largest electronics producers in Asia. Products built by
Samsung Electronics include televisions and many other kinds of home appliances,
telecommunications equipment, and computers. Its most important product is
semiconductors.


3

Samsung Electronics was created in 1969. The division's first product was a small
and simple black-and-white television that it began selling in the early 1970s.

The digital age has brought revolutionary change – and opportunity – to global
business, and Samsung has responded with advanced technologies, competitive products,
and constant innovation.
Samsung commitment to being the world's best has won us the No.1 global market
share for 13 of our products, including semiconductors, TFT-LCDs, monitors and CDMA
mobile phones. At Samsung, we see every challenge as an opportunity and believe we are
perfectly positioned as one of the world's recognized leaders in the digital technology
industry.
1.2.2 Samsung Vina Electronics Co., Ltd.:
Samsung Vina was a joint venture between Samsung Electronics Co., Ltd. (Korea)
and TIE joint stock Co., (Vietnam) from 15th Sep 1994. Up to 2002, Samsung mobile
phone started selling at Vietnam market. Samsung mobile phone ranked 2nd market share
from 2007 to now.
Although business environment still affected by global financial crisis, this
achievement was the proof for continuously efforts of Samsung employees including in
Vietnam. Samsung is one of the beloved brands with the most famous electronics
products such as 1st market share LCD television, LCD monitor and side-by-side
refrigerator. Its frequent customers are from low to middle income, and its brand is wellknown for reliable and quality goods and services at reasonable price. Mobile phone is
one of the products contribute 45% total turnover (Source: Samsung internal report),
achieved 13.1 % market share by quantity in Jan 2011 (Source: GFK Jan 2011). The
mission of Samsung mobile phone is try to narrow big gap with Nokia in which smart
phone tries to achieve number one market share.
1.3. Problem statement


4

Vietnam mobile phone market in 2010 achieved 1.2bil USD, increased by 20%
versus 2009 year in which smart phone’s market size accounted for 15% by quantity and
40% by amount. (Source: Mobile Review)

The Vietnam phone market has more and more competition among top 3 brands
like Nokia, Samsung and LG. The gap of market share by quantity between Nokia and
Samsung is 37.6 %, and smart phone is 56.8% (as GFK Jan 2011). According to Mr Thai
Manh Binh, in charge of public relation of Samsung, 70% Samsung mobile phone sales
volume came from low end models which Samsung portfolio is zero amounts. Segment
under 70 USD is main market that Samsung does not have to compete with Nokia and
other brands.
Thus, to keep its position in the Vietnam mobile phone market, Samsung has to
develop on smart phone segment or Samsung needs to change its strategy concerning low
end models business in traditional channel. The following questions need to be
addressed:
1. What are the opportunities, threats, strengths, and weaknesses of Samsung smart
phone to utilize more customers in Vietnam market?
2. What need to do for marketing plan to achieve the first position of smart phone
market share in Vietnam?
1.4. Objective:
The objective of this study is to develop a marketing plan to increase market share
for Samsung smart phone and to reinforce channel expansion.
1.5. Scope of works:
This project applies from 2012 to 2015 with geographic scope in Vietnam.
The project only applies for smart phone.


5

1.6. Method:
The framework analysis of marketing planning process of Phillip Kolter, the
marketing plan will base on 5 steps. Beginning with SLEPT model, external environment
analysis will find out the opportunities and threats. Internal analysis will give us
competitive advantage to receive strengths and weakness. Then, SWOT will be found.

After fixing the marketing targets and strategies, the project will come to marketing mix
analysis. The last step is marketing controlling. (Source: Philip Kotler)
1.7. Structure of study:
The structure of the study is as follows:
The first chapter presents the overall introduction of the study including overall
background, company description, problem statement, objectives, and scope of works,
methodology and structure of the study. The second chapter analyzes in depth of current
situation of business environment, market analysis, competitor analysis and organization
assets and skills in Vietnam that helps identify opportunities and threats for the Samsung
mobile phone in general, and then point out strengths and weaknesses in particular. A
marketing plan 2012-2015 and action plan for Samsung as well as marketing programs is
presented in Chapter 3. Last but not least, the conclusion Chapter will grasp what is
analyzed and discussed in the study and make final conclusion on the topic


6

CHAPTER II. ENVIRONMENTAL ANALYSIS
2.1 External environment factors:
2.1.1 Macro level: SLEPT Model Analysis
There are many factors in the macro-environment that will impact on Samsung
and its marketing strategy for smart phone products. These factors include Social, Legal,
Economic, Political, Technological factors (SLEPT).
Social factors:
With the population of over 86.93 million people, 2/3 of which are under 30 years
old and 70.1% people lives in provinces (Source: General Statistic Office), Vietnam has
enormous young human resource. The country records in continued improvement in key
human development indicators such as high literacy rates of above 90% education, health
improvement, life expectancy, and impressive poverty reduction.

The workforce is

highly motivated, adaptable and has strong work ethic.
Figure 2.1: Vietnam Population Pyramid (Source: GSO 2009, TNS analysis)

In 2009 population structure, there are 55.6 million people age 20+, account for
65% of population. There will be 17 million new and young customers enter into the
market in the next ten years. Vietnam’s future consumer is huge. This is an opportunity
for Samsung to have more consumers buying Samsung smart phones.


7

Legal factors:
Implementation of Resolution No. 02/NQ-CP on key measures of direction and
implementation plans for economic - society development in 2011, the State Bank of
Vietnam (SBV) has decided to adjust official exchange rate (the average exchange rate
inter-bank) applied on 11th Feb 2011 from 18,932 dong to 20,693 dong. It should be
stressed that a flexible exchange rate adjustment is a necessary and normal economic life
in the volatile market. However, during the early and local levels, the adjusted rate may
increase more or less the USD on the free market as well as increasing prices of goods
and imported raw materials, thus production cost of enterprises was increased for
Electronics Company. With such affect, this will be a threat for Samsung because all
materials have to import from oversea. (Source: Vietnam Government Portal News)
Besides, in 2nd quarter of 2010, mobile phones have been included into imported
limit group because it was imported rate was higher than the 1st quarter 2010, increased
nearly 40% versus 2009. The Ministry of Trade has proposed to Ministry of Industry to
put mobile phones into groups of products subject to excise tax. However, up to now,
entrepreneurs still consider as an issue which they have to take care first. This is also a
threat that Samsung has to pay attention to its business.

So, there are two threats Samsung smart phones have to take care concerning
exchange rate adjustment and new tax regulation of Ministry of Industry.
Economic factors:
Vietnam economic condition has a stable growth since 2002 year, emerging as a
major financial hub in the region with strong and consistent growth over 8% during 20052007 and sliding 6.23% in 2008, 5.23% in 2009 due to the global financial crisis.
According to estimation of General Statistic Office, in 2010, GDP growth is 6.78%. This
is an opportunity to prove that Vietnam economics gradually recover after crisis.
Customer earns more money and then expenditure will be increased more.


8

However, everything still depends on the ability inflation and the inflation rate of
Vietnam dong, especially the surge in gold and the dollar in recent times. Besides, while
gold and dollar prices are racing such information on major price adjustment in
electricity, water, oil and gasoline as well as concerns about food price situation will
increase to lead to a deluge (Source: The Saigontimes). Due to soar consumer price,
consumer confidence has been getting worse, including smart phone.
With the above economic situations, there are both opportunity and threat to
affect smart phone business environment.
Political factors:
Vietnam is one of South-East Asia's fastest growing economies. Vietnam became
a WTO member since 11th Jan 2007. This creates many opportunities to attract more
capital, goods and services on the world market. The government will continue to make
favorable conditions as international commitment.
In 2011, as taxation reduction roadmap, electronics group and accessories
decreased from 1-3% compared to 2010 tariff. (Source: Samsung internal report). This is
an opportunity because it helps electronics companies have good price compared to
previous year.
Besides, on 28th Oct 2009, the Prime Minister Nguyen Tan Dung participated into

the opening ceremony of a new mobile phone factory of Samsung Electronics Co., Ltd. in
the province of Bac Ninh, Vietnam. Samsung tried to make great efforts in the mobile
sector in general and in smart phone in particular.
This will creates opportunities for Samsung in export and its competitive
advantages concerning taxation and dollar reservation.


9

Technological factors:
Mobile phone is one of the intelligent products which affected the most by
development of technology in the world. That is operating system such as Android,
Windows Mobile, or RIM. Samsung knows very clearly and does not want to depend on
other operating system suppliers by developing Bada operating system. This operating
system will be applied for Samsung smart phones. This is an advantage for Samsung
smart phone.
Furthermore, in 2010, CNN has chosen the top hottest technology trends. (Source:
Thanhnien Online). Facebook becomes, year of the Facebook, one of the most famous
social networks on the world. Facebook became the subject of Hollywood film “The
Social Network” with revenue of more than 90mil USD. Times magazine awarded
“Person of the Year” for CEO and founder Mark Zuckerberg. More than half a billion of
people participates in this social site. This is a good chance for mobile phone
manufacture to integrate social network tool in its mobile phone.
Thus, technological changes can affect to manufacturers. Samsung has
opportunities to apply both common technology and Bada technology which Samsung
has to lead to innovation. So strong customer demand is for innovative smart phone
2.2 Market Analysis
According to GFK, research in Jan 2011, the market size of mobile phone is
around 12,383 mil sets/year in 2010, value about VND 22,946 billion. Smart phones
account for 9% total mobile phone market size for both hi-end and middle-end ones.

The future trend of smart phones will be a strategic product in next few years.
Smartphone is a trend of young consumers in the world in general and Vietnam in
particular. The reason is that the price of the smart phone decreased a lot within 6 years at
50%. The smart phone currently integrates a lot of connective technologies like wifi, 3G
third generations of integrated social networks and new applications to satisfy user


10

demand and new technological discovery of life. Smart phone is being positioned as a
“mobile life” tool for business men and stylist young people. Smart phone becomes more
and more popular with many new applications have been applied so far. All things will be
"infrastructure" to develop properly the smart phone trend. Thus, smart phone market is
in developing.
Figure 2.2: Technology household penetration

Technology household penetration

(Source: Samsung internal report)
As chart above, the market characteristics of “technology household penetration”
of urban Vietnam is ready for digital marketing with 94% people owned smart phone in
urban while in rural there is only 64%. For detail, in Vietnam there are 10% people using
smart phones in 2010 year versus 6% in 2009 year, 14 male versus 7 female.
This is an opportunities for Samsung focus on smart phone easily because people
understand clearly what is mobile phone’s usage, how does it operate?
About distribution channel, there is the electronic purchasing movement from
traditional channel to modern trade channel in big cities. However, the local independent
shops are still more popular in country side.
Online channel is still few as Vietnamese do not use to buy on internet and the
Vietnam e-bank is not develop but there are a large number of youths like to search

information of mobile phone by internet. So, threat of smart phone can be this issue.


11

Non authority products are very popular in Vietnam, they are imported by
smugglers. So that is one of threatens for authority mobile phone in which has smart
phone.
As appendix 4, this is comparison between two key channels on the Vietnam
market. Total mobile phone universal market is around 6,287 shops in which organized
channel is 527 shops and independent channel is 5,760 shops. (Source: Samsung internal
report). This gives opportunities of market, dealers for Samsung smart phone.
For the weighted coverage between Nokia and Samsung showed a decrease trend
and big gap.
Product
HHP Total

Brand 8-Dec 9-Dec 10-Jan FEB MAR APR MAY JUN JUL AUG
Samsung
97
97
95 96 97 95 95 94 89 88
Nokia
98
99
99 99 99 99 99 98 99 98
Smart phone Samsung
61
46
53 55 48 55 49 49 51 54

Nokia
89
99
99 99 98 98 98 98 98 95

SEP OCT
89
98
61
94

84
98
60
94

In smart phone segment, Nokia has good channel and relationship with its
distribution network. It is difficulties for Samsung to approach dealer network to
encourage dealer business with Samsung smart phone.
Besides, mobile phone retailers have 3 groups. First of all, big group accounts for
around 30% market share with 10 stores up for each big retailer like Vien Thong A, The
Gioi Di Dong, Phuoc Lap Mobile, Viettel, FPT and both Petrosetco and Nguyen Kimkey distributors of common electronics. Secondly, for smaller stores with about 10%
market share, there are such as Mai Nguyen Mobido (4 stores in Hochiminh), Nhat
Cuong (4 stores in Hanoi). The remains market share is for small retailers or shops. This
is one of the difficulties because big retailer will be threats in negotiation for Samsung
when Samsung discusses sales policy and support amount.
Furthermore, MobiFone, Vinaphone and Vietnamobile are key telecommunication
providers in major in Vietnam. It creates opportunities if Samsung smart phone applies
some cooperation promotion.

12

As appendix 5, in-depth interview for market research which is using smart phone
and non-smart phone which in customer characteristics, there are key perceptions toward
smart phones. The key triggers impacting on smart phone purchase are high speed
internet connection and the ability to download applications. Especially, while having
some awareness, operating systems are not key points of differentiation in terms of
purchase decision.

Smart phones have brand awareness and perceptions. Brand awareness varies by
involvement in the category.
In addition, market analysis plays an important role in understanding of the target
market, consumer and consumer needs in that market.
Samsung smart phones have a lot of opportunities due to popularity of mobile
phone users, then user will be easy to switch upgrade to smart phone. Besides, key
telecommunication providers cooperate with Samsung in doing promotion programs.
However, there are also many threats which Samsung has to overcome with the
its strong retailers, more and more customer demand.
2.3 Competitors Analysis:
The purpose is to develop an understanding of the competitive environment in
which the organization will operate in the market. At mobile phone market, there are a lot
top brands participate in. For direct competitor, there are Nokia, Apple, LG, Sony
Ericson. For the Chinese brand and local name are F-Mobile, Q-Mobile, Mobell, Avio,
HTC, etc.
But in the smart phone market, the current market leader is Nokia with 69% by
quantity. Next positions are Samsung (12.5%), Apple (8%), LG (5.2%) respectively, etc


13

Figure 2.3: Smartphone market share Jan’11 (Source: GFK Jan 2011)

Now, Nokia is the most important brand which Samsung has to focus on. There is
analysis between Nokia and Samsung to have more understanding. Then some strengths
and weaknesses that Samsung have to know to increase in next future.
Samsung smart phone’s opportunities include good design, nice screen color, and
reasonable price. Samsung smart phone is a well-know brand name.
For brand health check in appendix 7, Samsung has been gaining in
recommendation rate, on the way back to kick time at the expense of Nokia. However,
LG and Q-Mobile are increasing in this index, the gap is still big. It gives a weakness in
Samsung brand.
Samsung shows noticeable increase from last year and threatens leading brand,
Nokia, in terms of unaided awareness. As for the brand preference, Nokia shows increase
and consolidates its position as a leader in mobile phone market while Samsung is
decrease from last year.
For in appendix 8 about brand preferred, Samsung still has big gap with Nokia in
young customer segment and high income.
Furthermore, at the signing ceremony in the evening of March 2nd 2011,
representatives of Vietnam Government and Nokia inked a Memoranda of Understanding


14

to prepare for establishing and taking Nokia mobile phone making plant into operation in
2012. As the estimation, total investment capital for this plant is about 200 million euro
and will increase following time. This new plant of Nokia will contribute to expanding its
network to 11 plants on the global market. The target of this investment is bringing the
wonderful experience on modern mobile phone to all clients on global. (Source:
Thanhnien). This factory is threat that Samsung factory will face in the future.

•

•

Strength:
• Durable (not easy broken
even the phone fallen
down)
• Easy to use
• Suitable for everyone
• Well-known
• Prestigious
• Good resell value
Weaknesses:
• Not good design
• Old operating system

•

•

Strength:
• Good design
• Nice screen color
• Touch screen
• Reasonable price
• More suitable to female
• Well-known
Weaknesses:

• Not durable (esp. slide
phone)
• Using different operating
system (no
differentiation)
• Resell value is low

2.4 Internal Analysis
What is smart phone
•

As mobile phone stretching its functions beyond merely call and text, people
are getting more dependent to it, especially for smart phone users

•

Smart phones provide convenience which enable its users to perform various
activities everytime and everywhere


15

•

Smart phone is defined by its technology and features. It uses the latest
technology and has most extensive features. Its sophistication projects
prestige which has to be reflected in its design

•

The appearance would include everything that meets the eyes first time : shape,
color (black, white and sliver) and design.

•

Touch screen makes smart phone looks cool and premium
However, care has to be taken on handling concerns over its downside. This is
especially on typing difficulty since people do it constantly
Additionally, Samsung is young smart phone manufacturer in Vietnam.

Vietnamese has loyalty in each brand which they used. Operating system of Samsung,
Bada has just developed, so customers need time to test and feel.
Samsung Vina operation:
Samsung Vina was joint venture between Samsung Electronics Co., (Korea) and
TIE joint stock Co., (Vietnam) from 15 Sep 1994. Up to 2002, Samsung mobile phone
started selling at Vietnam market. Total employee is 684 people including 670
Vietnamese and 14 Korean. Samsung have one factory in Thu Duc District, Ho Chi Minh
city and 4 sales offices including Ha Noi, Da Nang, Ho Chi Minh City (District 1) and
Can Tho city. After 16 years in Vietnam, Samsung Vina contributed a lot of remarkable
records number one LCD television market share, the best LCD Monitor in 12 successive
years, Certificate from Prime Minister in attracting foreign investment in Hochiminh,
Certificate from Ministry of Health for remarkable contribution to innate heart patients.
Especially, on 28 Oct 2009, at Yen Phong industrial zone, Bac Ninh province,
Samsung Electronics Vietnam opened with 2,300 employees and has produced 1.5 mil
sets/month capacity. The plant installed new equipment, application of modern
technology today. By 2012, it is expected the plant will provide 100 mil products each
year, attracting over 10,000 workers and exports reach 4.5bil USD. (Source: Samsung
internal report)

16

Samsung Vina’s employee has many relationships with local distributors.
Distribution channels typically used including 37 Regional Distributors (in which those
dealers controlled 3,244 retailers), 278 Direct Accounts (278 Direct Retailers) and one
Operator (Viettel Group with 842 SIM Agents).
Thus, these achievements help Samsung smart phone strengths in customer mind as
well as relationship with distribution channel network.
2.5. SWOT Analysis
The analysis of external macro-economic environment has brought both
opportunities and threats for Samsung smart phone as follows:
2.5.1 Opportunities
O1: High percentage of young market for smart phone
O2: Smart phone market is in developing.
O3: Strong customer demand is for innovative smart phone
O3: Import tax as WTO commitment
O4: Comparative advantage of materials and foreign currency reserves when
Samsung factory export mobile phone in Vietnam
O5: Samsung Bada operating system in developing smart phone.
O6: Switch to smart phone segment easily
2.5.2 Threats
T1: Exchange rate adjustment of government affect to production cost, input
materials and taxation.
T2:

Government gives some regularizations or policies which interferes the

mobile phone market such as increase electric, water or control interest and
foreign currency, etc.