INTRODUCTION

Before the liberalization of the Indian economy, only a few

companies like Kelvinator, Godrej, Alwyn, and Voltas were the
major players in the consumer durables market, accounting for no
less than 90% of the market. Then, after the liberalization, foreign
players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa
came into the picture. Today, these players control the major share
of the consumer durables market. Consumer durables market is
expected to grow at 10-15% in 2007-2008. It is growing very fast
because of rise in living standards, easy access to consumer
finance, and wide range of choice, as many foreign players were
entering in the market with the increase in income levels, easy
availability of finance, increase in consumer awareness, and
introduction of new models, the demand for consumer durables has
increased significantly. Products like washing machines, air
conditioners, microwave ovens, color televisions (C-TV) were no
longer considered luxury items.

However, there were still very few players in categories like

vacuum cleaners, and dishwashers Consumer durables sector is
characterized by the emergence of MNCs, exchange offers,
discounts, and intense competition. The market share of MNCs in
consumer durables sector is 65%. MNC's major target is the
growing middle class of India. MNCs offer superior technology to
the Consumers whereas the Indian companies compete on the basis
of firm grasp of the local market, their wellacknowledged brands,
1
and hold over wide distribution network. However, the penetration
Level of the consumer durables is still low in India. Indian
Consumer durables market used to be dominated by few domestic
players like Godrej, Voltas, Allwyn and Kelvinator. But post
liberalization many foreign companies have entered into Indian
market dethroning the Indian players and dominating Indian
market the major categories being CTV, REFRIGRATOR,
MICROWAVE OVEN and WASHING MACHINES. India being
the second largest growing economy with huge consumer class has
resulted in consumer durables as the fastest growing industries in
India. LG, SAMSUNG the two Korean companies have been
maintaining the lead in the market with LG being leader in almost
all the categories. The rural market is growing faster than the urban
market, although the penetration level is much lower .The CTV
segment is expected to the largest contributing segment to the
overall growth of the industry. The rising income levels double-
income families and consumer awareness were the main growth
drivers of the industries.

2
 INDIAN CONSUMER ELECTRONICS
INDUSTRY
The consumer electronics industry has been witnessing a
phenomenal growth globally over the past few years. This growth
can be attributed to the revolutionary technological developments
taking place in the consumer electronics industry. The revolution
brought by the digital technology has enabled the consumer
electronics sector to profit from the growing interaction of digital
applications, such as camcorders, DVD player/recorder, still
camera, computer monitor, LCD TV, etc. According to Consumer
Electronics Market Forecast report, the global consumer
electronics market is forecasted to grow at a CAGR of around 5%
during 2009-2012. Also, during the same period, the global
consumer electronics shipment will grow at a CAGR of around
5%. Various factors driving the future growth. On the regional
front, we found that the American region, mainly US, is driving the
global consumer electronics industry, closely followed by Europe.
In future, Asia Pacific region will constitute the major portion of
the consumer electronics industry, mainly due to the increase in
demand from the developed countries in the region.

Also, the American region along with the European region will see
a decline in their market shares because the markets there have
attained saturation and only the advent of new technology will
boost the demand. India’s consumer electronics devices market,
defined as the addressable market for computing devices, mobile
handsets and AV products, is projected at around US$28.6bn in

3
2010. This is expected to increase to US$45.7bn by 2014, driven
by rising incomes and growing affordability. Growth in some
product categories dipped in 2009, but the market recovered
strongly during the festive sales season that ran until Diwali, with
many retailers reporting 20-40% growth. Spending on consumer
electronics devices is projected to grow at an overall CAGR of
12% through 2014, with the key segments including touch-screen
mobiles, for LCD TV sets, set-top boxes 18 and notebook
computers. Much of the growth will be driven by growing demand
from India’s rural population.

4
 COMPANY PROFILE
SAMSUNG
Introduction
Samsung grew into a global corporation by facing challenges
directly. In the years ahead, our dedicated people will continue to
embrace many challenges and come up with creative ideas to
develop products and services that lead in their markets. Their
ingenuity will continue to chart Samsung’s course as a profitable,
responsible global corporation.

Our Vision
Samsung is guided by a singular vision: to lead the digital
convergence movement. We believe that through technology
innovation today, we will find the solutions we need to address the
challenges of tomorrow. From technology comes opportunity for
businesses to grow, for citizens in emerging markets to prosper by
tapping into the digital economy, and for people to invent new
possibilities. It’s our aim to develop innovative technologies and
efficient processes that create new markets, enrich people’s lives
and continue to make Samsung a trusted market leader

Our Mission
Everything we do at Samsung is guided by our mission: to be the
best “digitalCompany”.

5
Samsung Electronics is a global leader in semiconductors,
telecommunications, digital media and digital convergence
technologies with 2004 parent company sales of US$55.2Bn and
net income of US$10.3Bn. Employing approx. 113,000 people in
over 90 offices in 48 countries, the company has of 5 main
business units: Digital Appliance Business, Digital Media
Business, LCD Business, Semiconductor Business and
Telecommunication Network Business. Recognized as one of the
fastest growing global brands, Samsung Electronics Corporation is
the world’s largest pro ducer of Colour Monitors, Colour TVs,
Memory Chips and TFT LCD’s.

6
 SAMSUNG IN INDIA

Samsung India is the hub for Samsung’s South West Asia Regional
operations. The South West Asia Regional Headquarters looks
after the Samsung business in Nepal, Sri Lanka, Bangladesh,
Maldives and Bhutan besides India. Samsung India, which
commenced its operations in India in December 1995, today enjoys
a sales turnover of over US$ 1Bn in just a decade of operations in
the country.
Headquartered in New Delhi, Samsung India has a network of 19
Branch Offices located all over the country.
The Samsung manufacturing complex housing manufacturing
facilities for Colour Televisions, Colour Monitors, Refrigerators
and Washing Machines is located at Noida, near Delhi. Samsung
‘Made in India’ products like Colour Televisions, Colour Monitors
and Refrigerators were being exported to Middle East, CIS and
SAARC countries from its Noida manufacturing complex.
Samsung India currently employs over 1600 employees, with
around 18% of its employees working in Research &
Development.
GROWING TO BE THE BEST
Samsung India aims to be the ‘Best Company’ in India by the Year
2006. ‘Best Company’ in terms of both the internal workplace
environment as well as the external context in which the Company
operates. Samsung aims to grow in India by contributing to the

7
Indian economy and making the lives of its consumers simpler,
easier and richer through its superior quality products. “Our aim is
to gain technological leadership in the Indian marketplace even as
our goal is to earn the love and respect of more and more of our
Indian consumers.” Mr. S.H. Oh, President & CEO Samsung
South-West Asia Regional Headquarters.

8
 SWOT ANALYSIS

Samsung Electronics Co. Limited (OTC: SSNLF) is actually the

consumer electronics subsidiary of the Samsung Group, a
conglomerate based in Suwon, South Korea.

Outside of Korea, Samsung is best known as the world’s largest

manufacturer of mobile phones and smartphones, including the
highly popular and successful Galaxy.

It is also the world’s largest manufacturer of televisions and LCD

panels. Thanks to its manufacturing and marketing expertise,
Samsung is regarded as the world’s second largest consumer
electronics company. Only its American rival, Apple Inc.
(NASDAQ: AAPL), reported larger revenues.

Unfortunately, it is difficult to determine exactly what Samsung’s

are because it is based in Korea and not covered by U.S. corporate
reporting laws. Samsung did report an estimated TTM revenue of
$42.35 billion for the second quarter of 2015.

That figure is based on sales of 48 trillion Korean won.

9
 STRENGTHS

 Samsung is the world’s most successful electronics

manufacturer. It is the world’s largest manufacturer of
television sets, liquid crystal display (LCD) panels, mobile
phones and smartphones.

 Samsung is the world’s number one marketer of mobile phones

with 21.4% of the world’s largest market share in the second
quarter of 2015. Apple is number two with 13.9%

 Samsung has impressive research and design capabilities. It

was able to create and roll out Samsung Pay, a payment app
with similar capabilities to Apple Pay, in less than a year.


Samsung has been able to replicate many of the capabilities of

both Apple Inc.’s phones and Google Inc.’s Android operating
system for mobile devices.

 Samsung has strong manufacturing and marketing capabilities.

 Samsung has long-standing relationships with retailers in the

United States and Europe that provide a steady sales channel
for its products.

10
 WEAKNESSES

 Samsung has not been able to match Apple

Inc.’s marketing capabilities for smartphones.

 Its share of the U.S. smartphone market fell by 2.3% between

2014 and 2015. In contrast, Apple’s share price grew by
34.9%.

 Some Chinese competitors are catching up to Samsung in the

smartphone market.

 Between 2014 and 2015 Huawei’s share grew by 48.1%, and

Xiaomi’s share grew by 29.4%.

 Samsung is heavily dependent upon consumer electronics sales

in markets with limited potential for growth, such as the
United States and Europe, for much of its revenue

 Samsung’s devices use the Google Android open source

operating system. Many consumers seem to view Android as
an inferior product to Apple’s iOS. The public has not been as
accepting of Android as the tech community has.

 Some consumers view Apple products as more advanced and

dependable than Samsung products.

 Samsung’s marketing efforts are not as sophisticated as

Apple’s.

11
 OPPORTUNITIES

 Growing market for smartphones, tablets and other mobile

devices, especially in developing regions such as Africa
and India, where consumers are unfamiliar with PCs.

 Sales of tablets finally overtook sales of traditional personal

computers in 2015.

 Increased demand for tablet and smartphone-based solutions

such as Samsung Pay

 New technologies such as wearable tech

 Growing middle class in developing world will increase

market for consumer electronics.

 Growing online market from sales channels such

as Amazon.com

12
 THREATS
Apple has emerged as the dominant smartphone and tablet
brand in some markets, such as the United States. Samsung has
not been able to overcome Apple’s reputation for reliability.

 Apple’s reputation for quality, reliability and sophistication

seems to be growing.
 The Google Android operating system, which Galaxy devices

depend upon, is not as popular with average people as iOS is.

 Declining or stagnating middle-class incomes in North
America and the United States could reduce consumer buying
power in those key markets for Samsung.
 Chinese manufacturers such as Huawei and Xiaomi could

emerge as serious rivals to Samsung. These companies’ share

of the critical mobile device market is growing while
Samsung’s is falling.
 Apple could enter more consumer products areas such as home

appliances and cameras and directly compete with Samsung in

those markets.
Samsung maintains impressive research, design and manufacturing
capabilities, but it appears to have lost its edge in marketing. This
company may need to revamp its smartphone marketing and
perhaps design efforts in order to maintain market share in critical
arenas like the U.S.

13
 PORTERS 5 FORCES ANALYSIS
Introduction
Porter’s Five Forces methodology is used in this article to analyze
the business strategies of white goods makers like Samsung. This
tool is a handy method to assess how each of the market drivers
impact the companies like Samsung and then based on the analysis,
suitable business strategies can be devised. Further, companies like
Samsung are known to study the markets they want to approach
thoroughly and deeply before they make a move and it is in this
perspective that this analysis is undertaken.
Industry Rivalry
This element is especially significant for Samsung as the other
White Goods multinationals like LG, Nokia, and Motorola not to
mention Apple are engaged in fierce competitive rivalry. Indeed,
Samsung cannot take its position in the market for granted as all
these and other domestic white goods players operate in a market
where margins are tight and the competition is intense. Apart from
this, Samsung faces the equivalent of the “Cola Wars” (the
legendary fight for dominance between Coke and Pepsi) in
emerging markets like India where Samsung has to contend and
compete with a multitude of players domestic and global. This has
made the impact of this dimension especially strong for Samsung.
Barriers to Entry and Exit
The White Goods industry is characterized by high barriers to entry
and low barriers to exit especially where global conglomerates like
Samsung are concerned. Indeed, it is often very difficult to enter
emerging markets because a host of factors have to be taken into
consideration such as setting up the distribution network and the
supply chain. However, global conglomerates can exit the
emerging markets easily as all it takes is to handover and sell the
14
business to a domestic or a foreign player in the case of declining
or falling sales. This means that Samsung has entered many
emerging markets through a step-by-step approach and has also
exited the markets that have been found to be unprofitable. This is
the reason why white goods multinationals like Samsung often do
their due diligence before entering emerging markets.
Power of Buyers
The power of buyers for white goods makers like Samsung is
somewhat of a mixed bag where though the buyers have a
multitude of options to choose from and at the same time have to
stick with the product since they cannot just dump the product, as it
is a high value item. Further, the buyers would have to necessarily
approach the companies for after sales service and for spare parts.
Of course, this does not mean that the buyers are at the mercy of
the companies. Far from that, they do have power over the
companies, as most emerging market consumers are known to be
finicky when deciding on the product to buy and explore all the
options before reaching a decision. This means that both the buyers
and the companies need each other just like the suppliers and the
companies, as we shall discuss next.
Power of Suppliers
In many markets in which Samsung operates, there are many
suppliers who are willing to offer their services at a discount since
the ancillary sectors are very deep. However, this does not mean
that the companies can exert undue force over the suppliers as once
the supply chain is established; it takes a lot to undo it and build a
new supply chain afresh. This is the reason why white goods
makers like Samsung invariably study the markets before setting
up shop and also take the help of consultancies in arriving at their
decision.

15
Threat of Substitutes
This element is indeed high as the markets for white goods are
flooded with many substitutes and given the fact that consumer
durables are often longer term purchases, companies like Samsung
have to be careful in deciding on the appropriate marketing
strategy. This is also the reason why many multinationals like
Samsung often adopt differential pricing so as to attract consumers
from across the income pyramid to wean them away from cheaper
substitutes. Further, this element also means that many emerging
market consumers are yet to deepen their dependence on white
goods and instead, prefer to the traditional forms of housework
wherein they rely less on gadgets and appliances. However, this is
rapidly changing as more women enter the workforce in these
markets making it necessary for them to use gadgets and
appliances.
Stakeholders
This is an added element for analysis as the increasing concern
over social and environmentally conscious business practices
means that companies like Samsung have to be careful in how they
do business as well as project themselves to the consumers. For
instance, white goods makers are known to decide after due
deliberation on everything from choosing their brand ambassadors
to publicizing their CSR (Corporate Social Responsibility)
initiatives.

16
 LOCAL CULTURAL SENSIBILITIES
Samsung understands the local cultural sensibilities to customize
its products according to the Indian market. It has set up a
“usability lab” at the Indian Institute of Technology in New Delhi
to customize Samsung products to meet the specific needs of
Indian consumers. This industry-institute partnership is helping
Samsung to study and analyze consumer response in aspects of
product design, including aesthetics, ergonomics and interface.
Through its research done on consumer preferences in India,
Samsung has concluded that Indian consumers want more sound
oriented products.

Thus, the Samsung televisions for India have a higher sound

capacity than their foreign counterparts. For the semi-automatic
segment of Samsung washing machines, Samsung has introduced
for the first time in India a feature called Super Dry.
It is present in three of Samsung’s semi automatic models and dries
the clothes better than the rest. Samsung washing machines have
an additional menu that takes care of the local Indian wardrobes.
They also have a ‘memory re-start’ that takes care of the frequent
power failures in India.

17
 CURRENT SITUATION AND TRENDS

Growth and development of the electronics market has always been

serious and rapid. This is fueled by the changes in the consumer
behavior with regard to their attachment with technologies.
Consumers have never been contented with previous technology
offerings by electronic manufacturers. This has pushed electronic
manufacturing companies to be aggressive in developing
technological advancements and class leading innovations which
will cater accordingly to the consumer wants and needs in terms of
technology.
Current trends in the market today involves electronic products
which offers ease of use, environmental safety, accessibility and
availability altogether at a reasonable price. Innovations which set
the taste and feel of the people are also accounted currently.
Samsung Electronics has never failed in performing what has been
the trend nowadays.
They even have innovations that are becoming essential part of
everyday living such as the smartphones. They didn’t just provide
the needs of the people; they literally create the need for the
people. Their rough start and background clearly speaks for their
determination to succeed in this business.
From being a manufacturing company offering low-cost electronic
products, they have developed into a high-end manufacturer of
electronic products providing exquisite design and usability. The
company’s diverse heritage and background on manufacturing

18
consumer electronics and electronic components has made them
excel in the market today.
Furthermore, investing a lot of the company’s capital into research
and development for innovations was a brilliant and smart move
for them. As of now, the company continues to stay on top of the
market offering an ecosystem of electronic products.

19
 PERFORMANCE REVIEW
Samsung Electronics built their foundation way back in the 1970s;
offering cheap 12-inch television sets under the Sanyo label.The
company then realized that by remaining in this manner and
situation, they would never excel in the market. By mainly relying
on price as their competitive advantage, they have foreseen the
disaster coming on their way.
Waking up from this realization, Samsung’s top managers made a
bold move by changing the company’s image into a much classier
and design-focused manufacturer of electronic products. Technical
innovation and research and development are a crucial stage for the
company because it can be a make or break strategy; but
Samsung’s determination and hard work played a vital role in
pursuing this strategy.
New product development and design offerings made an impact
on the consumer’s taste and preference. Moreover, their design
language offers functions and benefits which made people realize
that their worth the price.

20
 KEY ISSUES FACED BY SAMSUNG
The main issues faced by Samsung Electronics were the ever
growing demand and changing consumer taste and preference on
technologies. Adding up to the pile, was the Asian financial crisis
in 1997 making a major strategic shift essential for survival. Also
by mainly relying on the price as their competitive edge, the
company foresaw the challenge from the Chinese manufacturers
along the Asian market.
Samsung Electronics has been wise enough to have developed and
implemented key actions not only to prevent the threats from
happening but also to avoid them from cutting through the
company’s capital. Listed below are the key actions developed by
the company.

21
 OBJECTIVES
Samsung Electronics’ objective was to buildits image and
brand to suit consumer’s taste and preference also benefiting
their wants and needs. Moreover, they also aim to make
technological advancements and class leading innovations to
provide an image of premium look and feel all throughout
their product offerings. Here are some objectives that need
to be considered.
Maintain positively controlled growth and development
Generate marketing programs that aims to penetrate other
markets. Maintain the increased brand awareness through
promotions and sponsorships Develop strategies that will
address customer feedback on their products.

22
 ACTION PLANS
Samsung Electronics started with an image of being a low-class
manufacturer of electronic products. Diversifying into a high-end
manufacturer they had become the leading industry in the digital
world today. Their marketing programs and strategies are very
good and well implemented throughout the firm. My concern
would be that if Samsung did not wait for many years to have
decided this change, they might have gone more and better from
what they are today. I think that with strong brand awareness for
people to know their product would also be an option for their
success. With the success they have achieved today, we could
easily say that they are as hard as rock when it comes to
competition. But the company should not be too complacent with
what they have now. Listed below are some action plans that
Samsung Electronics should consider for years to come.

Invest on research and development concerned with problems

regarding environmental safety. They should not only focus on
providing the needs and wants of the customers in terms of
technology. They must also be concerned with the ecosystem
where their customers reside and develop products which help
preserve the environment for the future generations.
Invest on research and development concerned with current issues
which will pose a big threat for the company in the future. There
are a lot of things to be considered here, such as raw materials
being used for production, network of branches for much tighter
connection with potential customers, security of trade secrets etc.
23
Proper control and monitoring of production. They should not
overproduce or oversell products because it would incur loss.
Expansion of business into other parts of the world to reach more
people who will be aware of the products.
Penetrate other markets rather than just the consumer electronics
and electronic components.

Controls
Samsung Electronics has positioned themselves as one the leading
manufacturer of electronic products in the market today. With
technological breakthroughs and cutting-edge innovation, they
surely are a top competitor to beat. Their main challenge was to
how to sustain company’s current situation as the top manufacturer
while continuing their action plans for years to come. Listed below
are control actions which need to be considered by the company.
Careful and proper monitoring of production
Assurance and security on the implementation of marketing
programs and strategies to sustain good performance
Develop solutions to achieve stronger product awareness .
Provide services which will directly address consumer feedbacks.
Insurance and security of trade secrets to prevent other companies
from copying theirs.

24
Contingency Plans
Samsung Electronics should be prepared for the possible worst-
case scenario that they may face anytime soon. In the event that
everything else fails in the operation, they should be prepared to
gain control of the situation and not lose sales. Listed below are
ideas which they may consider in the event of having failure.

25
BRANDING OF SAMSUNG ELECTRONICS

Interbrand, the world’s leading brand consultant has ranked

Samsung as the fastest growing brand in the world. For any new
company, when it enters the market, there are two options to
stimulate the growth; intensive advertising campaign, and offer
products with unique functions. Samsung opted for both, but tilted
more towards advertising and brand making strategy-creating
awareness of its name by investing enormously in million-dollar
brand making campaigns. One problem with older companies is
that they often portray their product as commodity and normally
sell their products only on the basis of brand without improving
their quality and lowering their price. Samsung worked on all
directions, it not only invested hugely in brand creation campaigns
worldwide ($3billion marketing budget per year), while it also
remained ahead of the market by introducing innovation. In order
to create a different image, Samsung decided to position itself by
developing innovative products and become leader rather than a
follower.
The reason for this success is Samsung’s holistic approach to
develop several strategies for different regions, but guided by one
unified Samsung brand image building strategy. The branding
strategy started in 1996 by its Chairman Kun Lee, whose aim was
to launch a coordinated global program to make Samsung an
international brand. Over the last one decade Samsung has been
busy in executing its comprehensive brand building strategy.
Samsung annual investment in branding and marketing is about

26
US$3.5 billion, which has been spent to increase its brand
awareness around the world. Samsung the approach is holistic
reaching the world customer. It created its branding in multiple
ways, ranging from traditional adds to billboards, racing, Olympics
games, cricket matches, marathons, in short wherever it saw the
crowd, it communicated Samsung message by presenting itself as a
leader of innovation with affordable price.

27
 PRODUCTS OF SAMSUNG
1) Tablets
2) Televisions – LEDs, LCDs. Plasma TV, SMART TV, HDTV
etc
3) Cameras and Camcorders
4) Refrigerators
5) Air conditioners
6) Washing machine
7) Microwave ovens
8) IT – Laptops, printers and accessories) Mobile phones – Smart
phones, normal phones
The benefit of Samsung in terms of its product is that there is a
trust on all Samsung products because of the way Samsung
products have performed in the last few years. Problems with the
products has been negligible. And with its Smart phones, Samsung
has achieved a status symbol for its customers. At the same time,
Samsung is known for its service and people know that Samsung
gives a very fast service for any of its product. Thus in
the marketing mix of Samsung, the product portfolio is one of the
strongest point for Samsung.

Price in the marketing mix of Samsung – Because of its presence

in different product categories, Samsung uses various pricing
strategies. We can divide the pricing strategies and match it with
the products that it is used for.
Skimming price – Samsung’s smart phones are one of the best in
the market and are the market leader in terms of the features and

28
USP’s that they provide. The recent Samsung Note 3 + Gear is
another entrant in the market which is catching peoples eyes. Thus
Samsung uses Skimming price for these products wherein it tries to
get a high value in the start before competitors catch up. Once the
model is old or any competitor has launched a similar product,
Samsung immediately drops the price. Competitive pricing – For
products other than smart phones, Samsung uses competitive
pricing. Televisions, air conditioners, refrigerators and other
products have competition in the form of Panasonic or LG.
Samsung is known to be a great brand but it is not greater than LG
for home appliances. In fact LG beats Samsung where home
appliances are concerned. Similarly in Washing machines –
Whirlpool, and in Cameras – Cannon, are the brands which are to
be beaten. Thus in various categories, Samsung keeps competitive
pricing so as to beat the competitor. Samsung as a brand hardly
uses penetrative pricing because it doesn’t enter late in the market.
In fact, it is present in most consumer durable segments in the
market.

29
 ADVERTISING

Print and media advertising is one of the core elements of the

marketing mix extensively utilized by Samsung Electronics. The
most noteworthy media advertising campaigns include live
commercials for Samsung Galaxy S 3 device on popular Jimmy
Kimmel Live show in June 2012 and on Late Night With Jimmy
Fallon on July and August of the same year. Moreover, partnership
with Fox channel in the US to run four 30-second advertising clips
during the National Football League, college football and World
Series games in 2012 have been praised as efficient marketing
campaigns.Samsung print advertising in popular newspapers,
magazines and journals have previously included direct attacks on
its major competitors, notably Apple. For example, a print ad
campaign titled ‘It doesn’t take a genius’ is a clever play of words
on Apple’s emphasize on genius branding.
The print ad compares major functionalities of iPhone5 and Galaxy
S III and illustrating the superiority of Samsung’s product on
several fronts.
Viral marketing is also extensively used by Samsung as one of the
most effective advertising methods. For example, the latest 60-
second viral marketing video titled “Anticipation” is a successful
attempt to associate Samsung Galaxy S6 with excitement and a
sense of achievement and recognition.

30
 SALES PROMOTION

Samsung uses sales promotions as a marketing tool more

extensively compared to the majority of its competitors. It has been
estimated that the company had spent about USD 4.6 billion on
sales promotions during 2013 alone globally, that included USD
888 million sales promotions budget on its home market in South
Korea. It is important to clarify that this budget is separate from the
marketing budget illustrated in Figure 3 above.
Moreover, Samsung official website contains sales promotions
announcements on mobile phones, accessories, cameras, back to
school offers, as well as, bundle offers
Samsung Electronics Report contains more detailed analysis of
Samsung marketing strategy covering issues of public relations,
events and experiences and direct selling. The report also
comprises application of SWOT, PESTEL, Porter’s Five Forces
and Value-Chain Analyses on Samsung, along with analysis of
company’s approach towards Corporate Social Responsibility
(CSR).

31
 BRAND POSITIONING

Samsung, once known to be the low-quality service provider of all

time is now one of the leading mobile companies of the world.
Having said that, we can see how it all comes down to proper
brand positioning and innovation, which takes a brand to its zenith.
After having its share of booms and slumps, Samsung came up
with new ideas to be more customer-focused and creative in order
to establish a strong brand image in the global market. Rather than
making normal or usual handset devices, they started to produce
smartphones to catch up with their competitors. Their main
strategy was to provide the best quality products in order to meet
their customers’ expectation.

They have been constantly redesigning and introducing new series

of products, e.g. – Galaxy Series. Currently they are working on
designing the lightest and slimmest phone of the world,along with
an amazing powerful performance to gain an edge over their
competitors. Samsung doesn’t have any particular tagline/slogan
for the company as a whole; they prefer to use unique taglines for
each and every product. They tend to promote and position their
mobile phones/note/tab at all the 3 different levels of positioning.
Two promo links have been provided below of their Galaxy Note 4
and Galaxy S6, which specifies all the product attributes, values
and benefits that customers might look out for, before they choose
to buy it. Samsung doesn’t target any specific segment of the
market, but mostly seem to serve the high-end people of the
society, for e.g. – business people, young adults.

32
 SAMSUNG SEGMENTING AND
TARGETING MARKETS

GEOGRAPHIC SEGMENTATION
Samsung geographic segmentation is world wide, they sell their
phones in 61 different countries. They make slight variations in
languages and applications but the physical appearance of their
phones is universal.

DEMOGRAPHIC SEGMENTATION
 Age Segmentation : Their target age segmentation is
teens,young adults and adults in early and mid 30's.
 Income Segmentation : Their target income segmentation is
middle class and high class income.
 Ethnic Segmentation : Since Samsung sells world wide, they
don't have a specific ethic segmentation.
 Family Life Cycle Segmentation : Their target family life
cycle is young single, young married or divorced with or without
children.
 Gender Segmentation : Smartphones are not gender specific
but since women shop more than men I would assume they have
more women buying their phones than men.

33
PSYCHO GRAPHIC SEGMENTATION

Samsung psycho graphic segmentation includes individuals from

teens to mid 30's who like new technology, tech savvy and can
afford to buy it.

BENEFIT SEGMENTATION

When Samsung customers buy their phones the benefit they expect
from it is simple appearance, new and updated features and
reasonably priced.

USAGE- RATE SEGMENTATION

The smartphones market has a lot of heavy users because of the

convenience of it, you can call, text, send pictures, play games,
listen to music and surf the web all from a smartphone. Samsung as
a large percentage of heavy users who buys all of their latest
phones and with mobile service company offering upgrade plans it
makes it easier to get the newest phones.There are people who goes
from one smartphone brand like Apple to Samsung because they
tired of it or they want to try another smartphone.

34
 SAMSUNG INNOVATION STRATEGY
Everyone has heard about the company named Samsung and the
reason why they have heard of it is because of its innovation
strategies. Innovation strategy at Samsung can be described as the
way that made them a leading manufacturer in electronic industry
as they keep the competitors at bay. In the present business
environment, businesses of whatever size must face and defeat
challenges which is posed by accelerated globalization and
technological changes. It is not just innovative strategy that
matters, but innovations that embed on themselves some strategies
that are truly game changing.
The game changing innovation of Samsung encapsulates business
models, business processes and manner of positioning themselves
vis a vis their competitor. This is what has made them survive all
these years.
It is a fact that there is a link between innovation and the economy
of a country, the culture of its peoples and those businesses running
on it. South Korea, where Samsung originated, is not rich when it
comes to natural resources

35
 BRANDING STRATEGY OF SAMSUNG
In the present day, the accomplishment of a business depends not
just on the product quality rather on how efficiently and effectively
the value of the product is presented to the clients at the last part.
When it comes to this aspect, Samsung Company has taken big
steps in its development, whether financially or operationally.

In order to improve the product value of the company, the

following are some of the branding strategy of Samsung that other
business owner must kept in mind:

• Establishing identity on the product

• Cost involved in the repositioning of the product
• Reaction from opponents or competitors
• Techniques adopted in costing
• Research and development

When it comes to cost efficiency, it was taken care of which the

rules adopted by company were not “cost prohibitive”
• Also it was observed that company strengths leverage has lead in
acceptable dividends and which it leads to “focused hard works.”
• Keeping a proper channel connection causes the results of sales to
be relatively strong. The incremental sale also yields a strong
return.
• To put the company as a technology leader in the business world.

36
Result of Branding Strategy Samsung Adopted
Past few years, Samsung Company adopted a lot of measures in
order to make its existence felt worldwide. Some of them include:

Sponsoring

One such significant instance was when Samsung sponsored the

1998 Seoul Olympics. Samsung had made an agreement together
with the International Olympic Association.The business
executives anticipated that through sponsoring special and
worldwide events and by means of embracing different marketing
methods as well as investments, the product of value of the
company would be improved. Because of this the value of the
product of the Company escalated by almost 200 percent, obtaining
$8.3 billion in 2002 from 3.1 billion dollar in the year 1999.
Valued through Interbrand Incorporation.The different measures
obtain by the company didn’t go in waste because Samsung was
listed amidst the topmost products, the product being evaluated by
the Interbrand Incorporation. Among the non Japanese products,
Samsung Company was the only company from Asia.

37
 SAMSUNG FOCUSSING ON ITS ONLINE
SALES STRATEGY FOR THE INDIAN
MARKET

Samsung has been facing fierce competition in the Indian

smartphone segment from the likes of Xiaomi, Motorola, OnePlus,
and ASUS, and some Indian brands, which are focussing on online
sales. Now, Samsung has revealed that the company is focussing
on and fine tuning its online sales strategy in the country. The
company is also focussing on sales from the rural market, which
has contributed significantly to sales.
According to sources within the company, the South Korean
smartphone giant is looking to tap into the booming e-commerce
market in India, and the company has even a separate team at its
headquarters to plan online sales strategy. The company had to face
revolt from offline retailers after online retailers started providing
huge discounts and price cuts on Samsung devices.
When asked about the company’s plan to tap into the e-commerce
segment, Rushi Suri, Samsung India Director-Product Marketing
Consumer Electronics, said, “For us the consumer is the key.
Where the consumer would want us, we would be there and would
be offering right kind of products at right price. In case of
(consumer) electronics, the clear understanding with the
management is where the consumer would want us, we would be
there.”
In terms of Samsung’s strategy to drive overall sales, it is focussing
on ‘Made for India’ products that have the right set of features for
the right prices. The company recently announced, which
have good value-for-money factor along with features such as 4G

38
LTE and Ultra Data Saving mode that Indian consumers are
demanding these days. However, the company’s official declined
to comment on the percentage of sales that the company is
attracting from the online

39
 METHODOLOGY

OBJECTIVE
 Primary objective
 To find the past sale growth and demand analysis
 Secondary Objective
 Market structure analysis
 SWOT analysis
 Competitor analysis
 Performance evaluation
Methodology
In this project we have followed descriptive method of study.
Research instrument
Here project analysis is made by collecting secondary data from
different websites, journals, etc.
 Secondary data’s are pre published and research data’s
collected from different websites, journals, newspapers,
company research papers.

 These documents and data’s are very useful for the

theoretical, conceptual and organizational background
analysis.

 Detailed analysis of data’s is made by plotting different

graphs and tables which can be easily understandable.

 Then by observing these graphs we have made our

conclusions and recommendations.

40
 FINDINGS

With the passage of time use of sophisticated software tools-

ERP, Trend Data, Qualitative field inputs will increase and as a

result forecasting would be better.

One major finding is that, while branding differentiates the

image of the product, the distribution will determine its success

to a large extent.

Rural markets would be the cornerstones of all MARKETING

strategies in the near future and this difficult markets will only

be cracked by companies that form partnerships across their

value and supply chains.

SAMSUNG companies are now realising that change will come

faster and harsher than ever before, so why not change before

change is thrust upon. Therefore, Distribution has suddenly

41
emerged from the background of the business to the very

forefront.

Last but definitely not the least with all attention now being

centred on Supply chain and logistics specifically in marketing

sector, this could well turn out to be the business to be in.

42
 SUGGESTION
Looking ahead in 2015, Samsung is committed to social
responsibility contributions, with a focus on education, job training
and improving healthcare. Designed for corporate citizenship, our
programs support local issues around the world. We are also
leading the way in a range of green management and
environmental activities, such as producing green products and
workplaces and working to reduce greenhouse gas emissions. We
strive to maintain safe environments in which our employees can
work healthfully and live happily. As always, we support our
partners worldwide and promote their success by forging win-win
partnerships for shared and sustainable growth. For the past 46
years, Samsung Electronics has grown rapidly by surmounting
many crises and difficulties. As we pursue our dream of making a
better and brighter world for everyone, we will embrace and
overcome new challenges. Today’s complex business environment
is pushing us to redouble efforts and increase innovation. We will
steadily realize our dream by relying on our wisdom to overcome
crisis, our courage to blaze new trails and our passion to serve our
customers. We are grateful for your unwavering support and
encouragement as we create the imaginative opportunities that will
open doors to the future realize significant growth in sales and
profits in our developing businesses, such as Digital Appliances,
Printing Solutions, Networks, Health & Medical Equipment,
System LSI and LED.

43
 CONCLUSION

Samsung India ltd. Is a leading Electronic company in India and

from last five consecutive years has shown accelerated growth in
electronic portfolio. Customers in India are also spending more in
electronics as their standard of living is growing. Samsung has
placed itself successfully in the position of market leader in
electronic products. Though there was some downfall in sales and
profit of the company in the beginning of this decade but after that
Samsung has shown considerable rise in both sales and profit. The
future of the company is also looking bright as electronic market
in India is still expanding and so we can safely conclude that
Samsung will be able to secure its number one position in
electronic product.

Samsung has also started project , that has provided it direct reach
to rural market. This may be considered a revolutionary step since
the urban market is reaching its saturation level and there is a huge
scope exploring rural market. This will also be helpful not only
increasing its market share but also fight competition

44
 BIBLIOGRAPHY

In order to make this project we have taken the help of the

following websites & books:

 www.wikipedia.com
 www.oppapers.com
 www.samsung.co.in
 www.scribd.com

Besides it various books are also consulted to prepare project

report.

AUTHOR’S NAME BOOKS

AshishBenerjee Principle of economics

H.L. AhujaModern Microeconomics

Theory and Application

C.K.KothariResearch Methodology

45