The hottest Samsung grid game balances $1billion i

2022-08-14
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Samsung grid game: balance global marketing of $1billion

in 2002, the value of Samsung's brand assets reached $8.3 billion, and the value-added of brand assets was as high as 30% within a year. The key to its growth is not to increase the investment in marketing expenses, but to adjust the proportion of the original marketing expenses

in October 2003, the English edition of Harvard Business review published an article entitled "optimalmarketing", which first disclosed in detail the secret of the brand growth of Samsung, a global consumer electronics giant

according to a survey published by Interbrand, an international authoritative brand consulting company, in business week of the United States, the value of Samsung's brand assets reached US $8.3 billion in 2002, and suddenly rose from 42nd in 2001 to 34th in the list of the world's top 100 brand assets, with a brand asset appreciation of 30% in just one year. The business and academic circles were stunned. What is the reason for Samsung brand assets to grow so fast

building a great brand requires huge investment. Samsung spends $1billion annually on marketing to support the sales of its 14 product lines in more than 200 countries around the world. However, it is obviously not a topic that everyone is interested in discussing about "spending a lot of money on brands", but how to spend money and how to spend money more effectively are the key issues for marketers to study

indeed, the key to the growth of Samsung's brand equity in 2002 is not how much more marketing expenses the company invested, but its adjustment of the proportion of the original marketing expenses in the same structure. Samsung's marketing expenditure structure is jointly determined by product categories and product geographical distribution differences - under the cross influence of two factors, Samsung's global $1billion marketing budget allocation object is divided into 476 grid units, such as "line in China", "notebook computer in China" and "line in the United States", which are three independent marketing budget units respectively. The question facing Samsung marketers becomes intuitive: How did they originally fill these grids with $1billion? In fact, how to fill these boxes is reasonable? How will they fill these boxes in the future

"obviously, Samsung's marketing budget will reach an ideal allocation state only when the last dollar of marketing expenses invested in each grid generates the same income." After the Harvard Business Review article was published, josegoncalves, a partner of Accenture's global market science service line, said in an exclusive interview with this newspaper in Accenture Shanghai

Josegoncalves is one of the two authors of the article "optimizing marketing", and jeffreymerrihue, the other author, is his colleague in London. Jose received his Ph.D. in computer and digital simulation from the University of Cambridge in the UK in the early stage. At the same time, he also has more than 10 years of consulting service experience in marketing return on investment. It is worth mentioning that Samsung's "optimized marketing" plan is also based on the advice given to them by Accenture's market science service line London office

"in this framework, how to put this but whether the analyzer is an experimental machine? There are many people. Material suppliers and equipment manufacturers must cooperate closely. In fact, they often mix the two into one. It is a very interesting mathematical problem to put $1billion into 476 grids. Of course, it is a more interesting marketing topic." Josegoncalves said

21st century: what is the general significance of Samsung's practice on marketing expense allocation

jose: Samsung's approach actually solves the problem of marketing return of investment (mroi) that many enterprises have a headache, and re plans its own marketing expense distribution system according to the principle of maximizing marketing return. Obviously, enterprise managers and marketing experts can be inspired by Samsung's success and begin to think about similar problems faced by their own enterprises

in the case, we can see that each specific marketing expense allocation scheme is only a final result. In essence, the logic of this result should be to first determine the mechanism by which each yuan of marketing expense affects sales, and then how to allocate this expense among marketing units under budget constraints

21st century: how to determine the effect of each yuan of marketing expenses on sales? Is this the most important task for you to help enterprises design marketing return plans

jose: absolutely, helping enterprises accurately determine the role of each yuan of marketing expenses on sales is the core of our task

take Samsung as an example. Let's take it step by step. Let's first look at the phenomenon that Samsung sells such a product in this region of China, and we only look at the topics related to marketing expenses. Then the Ministry of industry and information technology released the 304 batch of new product announcements of road motor vehicle manufacturers and products for each yuan of marketing expenses. How effective is the application of a total of 167 new energy vehicle products, and what are the influencing factors? If we have a brainstorming, I can give you several factors for your reference, such as the purchase cost of media, the per capita purchasing power of Chinese consumers, whether competitors have also invested a dollar in marketing expenses, such as the market share of their own products, etc... too many, maybe a little messy, but this is the first step of our work

the above is my opinion. You may also have more opinions, and there may be many other people, but first assume that only you and I are considering this matter. We have listed so many influencing factors based on our intuition, but which factors are really important and which factors do not overlap and conflict with each other, I am afraid that only after careful discussion between both parties can we reach a consensus and reach a conclusion that more personal prejudice can be eliminated

assuming that we have reached a consensus and selected several important factors, the second step involves how to measure these factors. Some data can be checked by the Bureau of statistics. Some data must be collected and sorted out by the enterprise itself, and some information may not be able to be collected accurately - using 1 cubic meter of this material, such as the relevant information of competitors - but in any case, this is the key to our next analysis

we finally listed the impact of marketing expenses

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