The marketing of Samsung

Sang Youl Eom, president and chief executive officer of Samsung Electronics Phils. Corp. has been with the Samsung organization since 1982. His Philippine assignment in January 2002 follows earlier postings in Pakistan and Vietnam.

While the Samsung brand was introduced in the Philippines as early as 1987, the last four years saw a dip in brand awareness in the domestic market as the local operation focused on internal strengthening and reorganization following the Asian financial crisis.

With that in place, Samsung is now restarting its marketing effort locally in line with a global campaign to create maximum awareness for Samsung as the provider of the "DigitAll Experience". The $200-million project links Samsung’s new upscale image with the lifestyle its customers can aspire for.

With entries in 11 product segments, Samsung distributes more products than any other electronics company in the Philippines. "Some companies sell only one product. We sell everything from TVs to mobile phones to computer monitors," said Eom, who is targeting a market share of at least 15% in each product segment. "We see the consumer as a smart buyer. By studying our products more closely and comparing our products with others in the market, the customer will see and appreciate the value-added function we are giving them."

Samsung Phils. also has a manufacturing plant for optical disk drives in Calamba, Laguna. Opened in November 2001, the plant exports 100% of its production and expects to book $150 million this year.

Management Style

Because English is widely spoken in the country, Eom has found it much easier to communicate with the Filipino workforce. "As CEO, I am responsible not only for how the Philippine office performs in terms of sales but also for the empowerment and development of our staff members. I want to develop their individual potential abilities and that can happen only if there is a very good job fit," he said.

Within Samsung’s global network in over 80 countries, the Philippines is not a big market but it is a strategic one. "The Philippines is an important location for us," said Eom. "Many multinational electronic companies have manufacturing facilities here.

Among other products, Samsung was the first to introduce locally the DVD-VHS player combo, the transparent cover for spin-dryers in twin-tub washing machines, the US-patented dual cooling system in two-door refrigerators and removable filters for easy cleaning in air-conditioners.

Also making waves is the Samsung refrigerator with a water dispenser. "A study showed that the refrigerator door is most often opened to get water. With a water dispenser, the refrigerator door need not be opened so often and the customer saves a lot of electricity," said Eom.

When not pushing its products, Samsung Phils. has been actively sponsoring sporting events. It has contributed P10 million to the training of the Philippine team which will participate in the upcoming Asian Games in Busan, Korea. The company is also sponsoring the trip of 40 students who will attend the Asian Games.

"This is Samsung’s way of promoting goodwill in the countries in which we are present. Sports can unify people regardless of race, gender and language. We aim to tap the talents and energy of the Filipino youth and challenge them to excel," said Eom.