'Marketing Strategy of Samsung in India\r'

'Section B Submitted by â€Harsh Golan About Samsung: The Samsung sort out is a multinational detect in corporation headquartered in Samsung T take in, Seoul, due south Korea. It is the worldly concerns largest conglomerate by gross. The Samsung root is composed of numerous foreign affiliated businesses, to the highest degree of them unite under the Samsung taint including Samsung Electronics, the worlds largest electronics attach to, Samsung dangerous Industries, the worlds second largest shipbuilder and Samsung C, a major world-wide twist club.\r\nSamsung has been the worlds most popular consumer electronics brand since 2005 and is the scoop known southwest Korean brand in the world. Samsung Group accounts for more than than 20% of confederation Koreas total exports and is the drawing card in umteen house servant industries, much(prenominal) as the financial, chemical, retail and entertainment industries. Samsung India Electronics Private expressage (SIEL) is the Indian subsidiary of the US $55. 2 jillion Samsung Electronics potbelly (SEC) headquartered in Seoul, Korea. Headquartered in bran- refreshing Delhi, SAMSUNG India has general network of gross receipts makeices solely anywhere the country.\r\nSAMSUNG India is the hub for SAMSUNG’s South West Asia regional trading operations. The South West Asia central office looks after the SAMSUNG business in Nepal, Sri Lanka, Bangladesh, Maldives and Bhutan besides India. SAMSUNG India which commenced its operations in India in December 1995 enjoys a gross sales turn everyplace of everywhere US$ 1Bn in clean a cristal of operations in the country. From cosmos a virtu whole ify unknown entity in the Year 1995, brand SAMSUNG right away enjoys an aw atomic numerate 18ness level of over 65% and a verifying opinion of over 80% in the country politicly (source: BAS 2007).\r\nIniti onlyy, a player tot anyy in the Color Televisions segment, it after diversified into c olor monitors (1999) and refrigerators (2003). Today, it is recognize as unitary of the double-quick growing brands in the airfield of digital engineering science. SIEL is the mart drawing card in high shutting digital television (Plasma, LCD). s.t.p. APPROACH OF SAMSUNG: Segmentation: Segmenting is the deal of dividing the foodstuff into segment establish on customer characteristics & needs. Segmenting consists of: 1. geographical segmentationation: it is more or less present in 14 countries exactly has kept up(p) a nearly uniform legal injury and unhurt step hang back worldwide. 2.\r\nDemographic segmentation: it has shibboleth of ‘everyone’s invited’ so it produces safe(p)s for nearly every segment, from tech-savvy to gamers to oculus programme family. It has something in sort for you. Targeting: Is the form of instructioning on a particular trade with a particular growth . ? local MARKET ?TEIR 1 CITIES ?TEIR 2 CITIES NICHE MARKE T. Samsung produces goods for both ground level1 and tier 2 cities and its nearly all electronic goods ar open in both cities. The differences crapper be seen is the in tier1 cities it has sole(a) Samsung showrooms while in tier2 and under cities it usually divides counter with opposite competitors .\r\n also goods ilk sweet tele make knowns and android promises, expensive models of TVs analogous 3d etc be shew in tier1 cities . in tier2 and infra cities it becomes a mass manufacturer of electronic items at fair cost. Positioning: Samsung has positioned itself as â€Å"digital engine room loss leader”. In 1990 group chairman, Kun-Hee Lee(Lee), initiated transformation from a lower-ranking- give up OEM into a world- conformation electronics club and now Samsung came to be sensed as a company with exciting crossing portfolio. squeeze surpassing Sponsor for the 2008 capital of Red China Olympics and Olympic Partner for the 2008 Olympic Torch Relay.\r\nMan avjit Singh Sandhu was its Olympic shop Ambassador and lanceed the program ‘ air the Olympic Flame ? APPOINTS OLYMPIC lucky MEDALIST ABHINAV BINDRA AS tick ambassador FOR ITS CONSUMER ELECTRONICS BUSINESS ? APPOINTS AAMIR khan AS ITS BRAND AMBASSADOR FOR MOBILE PHONES ? New, spunky, tag grapevine †‘ following(a) is What? ’ It is macrocosmness used in all of ‘Samsung Mobiles communication material. crossway dodge: Samsung Electronics India manufactures a wide direct of consumer electronics and dwelling appliances. These yields include: 1)Mobile phones with the accessories, )Television, audio recording player, Video player, 3)Camera, Camc revisal, 4)Home appliances, 5)PC, Peripherals and Printers. In the wandering(a) phone industry, Samsung has the second largest shargon in the securities industry with 19. 6% as per November 2010 consensus. The un fit outtled phone market look at is shown in Annexure 1. In the Indian fluent market, Samsu ng is the second largest player after Nokia with ingathering course extending to over fifty returns. The product line includes some of the most prefer mobile phones deal Samsung Guru series, Corby series and many more.\r\nRecently Samsung has launched its Samsung wandflower series in the Indian market. Samsung is in any case into manufacturing televisions, audio players, television system players, blu-ray players, sign of the zodiac theatres and mul agedia players. In India, Samsung is the first to bring the model of LED engineering science in televisions. Samsung’s products, in this kinfolk, argon known for their innovativeness and technology . These products are the first preference of the consumers who anticipate technology at an low-cost cost. Samsung withal manufactures digital cameras and camcorders.\r\nThis product kin includes world class products a corresponding Samsung NX series. Samsung digital cameras nonch a diverse product line equipped with th e most sought after features. Samsung cameras clear always been recognized for their hunky-dory technology and optical innovations in such things as railway car centering and â€Å"optical whir” capabilities. These products, though, high on technology are an affordable cream for those who father an edge for their picture taking hobbies. In the home appliances segment, Samsung manufactures refrigerators, cook ovens, smart ovens, air conditioners and dry wash machines.\r\nAll of these products define Samsung’s competitiveness and vision in terms of product innovations like silver na nonechnology, twin chill etc. At present, Samsung is the stellar(a) home appliances manufacturer and many of products are the vanquish in their respective sub-segments. Personal computers, peripherals and printers are alike the part of Samsung’s innovative and high-end technology product line. These include laptop nonebooks, VDAs, medication speakers, Internal and extern al heavy drives, optical disc drives and printers. Though, Samsung is non yet a leader in this segment save its inclination of high end technology shows into these products also.\r\nFor Samsung, there is silence scope for improving their products quality in the Indian market. The products some clocks develop technical flaws like display in the mobiles, bodge kit leakages in frost-free refrigerators etc which are to be improved. Since, Samsung competes on the behind of the innovation and technology in the menstruum market scenario; this plays a very important percentage in their major sales not only in India merely in the whole world as a whole. As farther as the after product religious service of Samsung is concerned, it needs major advantage in terms of contacting with customers.\r\nSince service is intangible, it needs to be provided as quickly as possible. cut back the retention time in providing value to the customers batch subjoin to monumental advantage for Sa msung considering the period market conditions. Place strategy: Samsung electronics employs unalike place strategies for different products. When we talked to market representative he said the whole of Samsung electronics India has dual-lane its dissemination systems into various(a) regions on basis of demand and number of dealers per region for example we visited what he called the vidharba region.\r\nSamsung uses supplying bowed stringed instrument to put together up differentiation, increase sales and perforate unused markets and channels. It efficient supply chain is transparent, so that all the players in the supply chain have the right training at the right time about the movement of the products inwardly the chain. This means lower inventories, liquidation of waste, and reductions of costs. In hang onition to the intangible benefits like quick feedback from customers attend in launching new products. Samsung has 24 state-level distribution offices and a direc t dealer interface.\r\nThe direct dealer interface helps the company to get quick feedback from dealers, and enables it to launch products according to consumer needs. Samsung also confides in JIT (Just-in-Time) concept to its dealers. To minimize time overruns, Samsung delivered its products directly from its factories to its Regional expedition Centers (RDCs) and from there to dealers. SIEL is having trinity types of distribution system: 1)A one-level channel contains one manageing intermediary, such as retailer. 2)A two-level channel contains two intermediaries.\r\nIn consumer markets, these are a contact and a retailer. 3)A three-level channel contains three intermediaries. Other strategies: • apply going-in-shop: Samsung is ensuring a presence in most big malls and multiplexes; even in the multi-brand outlets, as the focus there is to clear a shop-in-shop atmosphere. In the shops where we conducted studies we effectuate around 30-50% of counter carry on was of S amsung. Thus Samsung believes in â€Å"jo dikhta he vo bikta he”. •The exclusive showrooms:\r\nSamsung India has set up a widespread network of over 80 exclusive showrooms comprising Samsung Digital home (focusing on high-end digital audio-video products such as MP3 players, camcorders and LCD/plasm/3D TVs). The Samsung Digital home goes beyond the concept of a Digital Plaza or a dirt Shop because in it, they are essay to create a more inter industrious environment and providing a more lifestyle predilection to the display, so that the customer can visualize the products in his/her own home settings. Samsung will add another 30 showrooms to its active 100-odd this family.\r\nOver the adjacent fewer months, the existing Samsung Digitall Homes will all be rebranded Samsung Plaza, in retention with the global practice. Until now, India was the only market where Samsung followed a dual showroom strategy †larger (2,500 sq ft and more) outlets were dubbed Samsung Digitall Home, while smaller showrooms were called Samsung Plaza. It is not notwithstanding about a name win over, though. Samsung India also wants symmetry in appearance and sales experience at from each one of these showrooms †that means an emphasis on product demonstration, not proficient display.\r\nPricing Strategy: Samsung believes in providing good products at rational prices to its customers. Samsung’s technology plummet communications helped the company to gain market share, even though it did not offers any discounts or counterchange scheme when it entered India. Samsung focuses on cost-cutting measures to keep its price low which helps to combat the discount schemes of the local companies. Samsung drastically reduced its unattached costs which enabled the company to keep low prices for certain products and sublimate higher profit coast from grant products.\r\nSamsung India posted revenue of $2. 2 billion expiry year and this is expected to go up to $3. 5 billion this calendar year. Samsung’s global revenue is $116. 8 billion. The focus of its competitors is to penetrate in the rustic and semi-urban mass markets. only Samsung insists that its a high end technology determined player. Thats why the urban areas are still a focus area for it and only 30 per cent of revenue comes from rural and semi-urban India. Howsoever in past tense few years samsung India..\r\n legate Managing Director, Ravinder Zutshi says â€Å"Still, focusing on the support customer will get you only so far †India is still a market powered by volume-growth the current strategy is to gain greater reach among the masses †not done pricing, but through product innovation”. he vehemently rejects the price warrior tag, though. â€Å"Samsung is not a price warrior but today we are as competitively priced as our rivals. The focus is on expansion and deeper market penetration,” he adds â€Å"We are aiming at market leadership no t only in the premium category of products but also mass categories like flat televisions”\r\nIt is difficult to achieve the ambitious targets guardianship in sagaciousness the pricing strategy of Samsung. But, they believe that it takes time to ensure your command in market share. at a time you get your brand information right in the minds of the consumers as a brand that delivers the best technology and gives you value for money, thusly ultimately market share goes up. Now Samsung has changed its policy a bit and instead of fitting remaining a high-end technology driven brand it move to change its substitution class to sell products to the huge number of middle income families in India.\r\nIt started pricing its products on the â€Å"value for money” concept, keeping in mind the price sensitivity of Indian consumers. But still Samsung has the repute of being a premium brand, belligerent in launching newer models with the in style(p) technology and at spar ing costs throughout the world. procession Strategy: â€Å"Turn on Tomorrow” â€Å"We are expend aggressively in marketing to transform our company to be truly market driven and to establish our Samsung brand as the most effronteryed and favorite(a) brand in the market. ” †Vice-chairman & CEO, Samsung Electronics\r\n onward motion stands for various activities the company undertakes to communicate and boost its products to the target market. The reservation of a Global tick When Samsung decided to become globalized, it acquired a new corporal identicalness by changing its logo and that of the group. In the new logo, the linguistic communication Samsung Electronics were written in clean color on a blue color orbit to represent stability, reliability and warmth. The rail Samsung Electronics were written in side of meat in process of globalisation drive. The logo was shaped rounded representing a moving world †symbolizing advancement and ch ange…\r\nTo capture the retail market for consumer electronic goods, such as TVs, washing machines and atomise ovens, it organize partnerships with retailing giants like outflank Buy. Advertising and Promotional Strategies To promote the ideas, goods or services publicise is important and in this course it launched promotion depicting product transformation into more advanced(a) models, in course of time. This depicts the splendour that they give to the research and victimisation and making people see to it that they are not just trend followers but are trend setters.\r\nSamsung launched corporate advertisements highlighting its technologically select goods as they entered into the Indian market, and positioned itself in the mindset of consumer as the products are known for its quality like: •Samsung branded its products as brilliant technology and environment cordial ones with refrigerators and ACs incorporate with revolutionary new technology called Silver Nano wellness System that ensures freshness and bacterium free environment.\r\n besides, it launched the â€Å"Bio” range of products. •Launched a special marketing take to the woods for Flat Tvs including a cogitate advertising bunk â€Å"Duniya Hai Gol, TV Flat” and attractive exchange offers. Adding to these, Samsung launches an extensive ad campaign in all sorts of media (like print, electronic) whenever a new product is being launched. These create public cognisance and add to these media hoarding at major junctions and displays at crest of purchases are done.\r\nAlso, it offers special incentives like price off, patronage rewards, etc during fete season in order to create an incentive to bargain the product, and a special ambience is created during the festive offers at the period of time of purchases to give the feel of Indian nativity of the company. Samsung built trust and confidence by their active promotion and advertising. connecters with var ious others crosswise the world made the globally known and built its image on its association. •The partnership amongst Samsung mobile and SSAFW (Sanlam South African Fashion Week) shows the fusion of art, panache and technology.\r\nIt radiates technological elegance and stylish panache, by joining forces off SSAFW and enhances techno-fashion centered brand. •Samsung India associated itself with the ruling exasperation of Indian consciousness: Cricket. It launched a group Samsung campaign, which caught the imagination of the replete(p) campaign. Also, in 2004 it bought biggest spectacle debate of this decade to India vs Pakistan cricket series †â€Å"The Samsung shape”. •Not confining itself to cricket, Samsung sponsors the Indian contingent to the Olympics and the Asian Games.\r\nIt also ran training programmes for deserving Indian athletes under the Olympic Ratna banner. Samsung also helped India to bring the Olympic fire relay to India. †¢Samsung also brings the ball Cyber Games, which is regarded as the Olympics of the Cyber World to India every year. •In mobile phones, Samsung level(p) up with a renowned painter Satish Gujral for his paintings to be available as downloads on Samsung mobile phones. •Product placements were done in movies and popular television serials where Samsung products were set in lifestyle environments. For vaporizes, Samsung ran a Kitchen-on-Wheels programme where mobile kitchens with microwave ovens went to various localities demonstrating the advantage of microwave cooking. Sports Partnership (Globally): •Samsung sponsored Olympic spend Games in 1998 and will officially sponsor bOlympic Games and Olympic movements for the next 8 years and this would only enhance their global image. Samsung was official sponsor of telecommunications equipment category from 1998 to 2010. •Sponsors of English premiership club Chelsea FC, the premiership known globally and attrac t a good number of audiences all crosswise the globe.\r\nSamsung also sign-language(a) a partnership deal with Mexican football Team ball club Deportivo Guadalajara for six years in 2008 and provides plasma and LCD screens for squad’s new bowling ball Estadio Chivas, indirectly promoting the brand. • In 2009, signed a 3 year deal with Brazillian football Team Palmeiras, having their logo on shirts and products to the club. •Samsung passing League with International league for Equestrain Sports and FEI Nations Cup, the world’s oldest and best renowned equestrian series. •Also sponsors rugby league team Sydney Roosters in Australian subject Rugby League.\r\nIt is the sponsor of Essendon football club in A †League. •Sponsor of NASCAR Nextel Cup, French flock’s Baseball Team, tally festival in Taiwan, and lord StarCraft team (Samsung caravanserai). •Official high-definition television sponsor of the National Football Lea gue (NFL). •Official IAAF (International Association of athletic competition Federations) partner of 2009 (Berlin, Germany) and 2011 (Daegu, South Korea), IAAF World Championships in Athletics and 2010 IAAF world Indoor Championships. Brand Ambassador: Samsung in India have various brand ambassadors for various divisions.\r\nAamir Khan for mobiles, Priyanka Chopra has been recently elect as brand ambassador for home appliances, Olympic favourable Medalist Abhinav Bindra for consumer electronic business. Aamir Khan was apart a various ad campaigns like Next is What, Wave, Galaxy series and so on. He is known in the industry as Mr. hone and they are using that indirectly to show that their mobiles are perfect. Also as Samsung is sponsor for Olympics the image of Abhinav Bindra, who is the first Indian individualistic Gold Medallist at Olympics.\r\nAnnexure 1: Annexure 2: Samsung Product Line Samsung India product line as on the Samsung India website: The product line has bee n dual-lane into fin main categories as shown in the above figure. The mobile phone category has been divided into eight different sub-categories: The Tv/ speech sound/Video category is divided into quin sub-categories: The Camera/Camcorder category contains: The Home appliances category has five main sub-categories: The PC/Peripherals category includes:\r\n'