Marketing Strategy of Samsung in India

Section B Submitted by Harsh Golan About Samsung The Samsung Group is a multinational forgather corporation headquartered in Samsung Town, Seoul, southernmost Korea. It is the worlds largest conglomerate by revenue. The Samsung Group is composed of numerous international affiliated businesses, most of them united under the Samsung shop including Samsung Electronics, the worlds largest electronics fellowship, Samsung Heavy Industries, the worlds second largest shipbuilder and Samsung C, a major global construction company.Samsung has been the worlds most usual consumer electronics fault since 2005 and is the best known southwestward Korean brand in the world. Samsung Group accounts for more than 20% of entropy Koreas total exports and is the leader in many domestic industries, such as the financial, chemical, retail and entertainment industries. Samsung India Electronics clandestine Limited (SIEL) is the Indian subsidiary of the US $55. 2 billion Samsung Electronics Corporat ion (SEC) headquartered in Seoul, Korea. Headquartered in vernal Delhi, SAMSUNG India has widespread network of gross sales offices on the whole over the expanse.SAMSUNG India is the hub for SAMSUNGs South West Asia Regional trading operations. The South West Asia Headquarters looks aft(prenominal) the SAMSUNG business in Nepal, Sri Lanka, Bangladesh, Maldives and Bhutan besides India. SAMSUNG India which commenced its operations in India in declination 1995 enjoys a sales turnover of over US$ 1Bn in just a decennary of operations in the country. From being a virtually unknown entity in the Year 1995, brand SAMSUNG today enjoys an sentience level of over 65% and a positive opinion of over 80% in the country today (source BAS 2007).Initially, a player merely in the Color Televisions department, it later diversified into color monitors (1999) and refrigerators (2003). Today, it is recognized as one of the fastest growing brands in the sphere of digital engineering. SIEL is the mart leader in high end digital television (Plasma, LCD). STP APPROACH OF SAMSUNG Segmentation Segmenting is the process of dividing the market place into segment based on customer characteristics & of necessity. Segmenting consists of 1. Geographic segmentationation it is nearly present in 14 countries but has hold a nearly same harm and quality tag worldwide. 2.Demographic segmentation it has motto of everyones invited so it produces goods for nearly every segment, from tech-savvy to gamers to middle class family. It has something in sort for you. Targeting Is the process of directioning on a particular market with a particular product . ?LOCAL MARKET ?TEIR 1 CITIES ?TEIR 2 CITIES NICHE MARKET. Samsung produces goods for both tier1 and tier 2 cities and its nearly all electronic goods argon available in both cities. The differences female genital organ be seen is the in tier1 cities it has exclusive Samsung salerooms while in tier2 and below cities it usually shares tab ulator with other competitors .Also goods interchangeable smart phones and android phones, expensive models of TVs like 3d and so onare prove in tier1 cities . in tier2 and below cities it becomes a mass producer of electronic items at well-founded cost. military position Samsung has positioned itself as Digital engine room leader. In 1990 group chairman, Kun-Hee Lee(Lee), initiated varyation from a low-end OEM into a inaugural electronics company and now Samsung came to be perceived as a company with exciting product portfolio. superlative degree prodigious denounce for the 2008 Beijing Olympics and Olympic Partner for the 2008 Olympic Torch Relay.Manavjit Singh Sandhu was its Olympic grade ambassador and launched the program Spread the Olympic Flame ? APPOINTS OLYMPIC GOLD MEDALIST ABHINAV BINDRA AS BRAND AMBASSADOR FOR ITS CONSUMER ELECTRONICS blood duct ? APPOINTS AAMIR KHAN AS ITS BRAND AMBASSADOR FOR MOBILE PHONES ? New, spunky, tagline undermentioned is What? It is being used in all of Samsung Mobiles communication material. Product Strategy Samsung Electronics India manufactures a wide range of consumer electronics and class appliances. These products include 1)Mobile phones with the accessories, )Television, Audio player, depiction player, 3)Camera, Camcorder, 4)Home appliances, 5)PC, Peripherals and Printers. In the prompt phone industry, Samsung has the second largest share in the market with 19. 6% as per November 2010 consensus. The energetic phone market share is shown in Annexure 1. In the Indian mobile market, Samsung is the second largest player after Nokia with product line extending to over fifty products. The product line includes some of the most preferred mobile phones like Samsung Guru series, Corby series and many more.Recently Samsung has launched its Samsung galaxy series in the Indian market. Samsung is similarly into manufacturing televisions, sound players, video players, blu-ray players, home theatres and mult imedia players. In India, Samsung is the first to bring the concept of LED engineering in televisions. Samsungs products, in this social class, are known for their innovativeness and technology . These products are the first preference of the consumers who seek technology at an affordable cost. Samsung also manufactures digital cameras and camcorders.This product sept includes world class products like Samsung NX series. Samsung digital cameras offer a diverse product line equipped with the most sought after features. Samsung cameras start out always been recognized for their fine technology and optical innovations in such things as auto point and optical zoom capabilities. These products, though, high on technology are an affordable option for those who have an border for their photography hobbies. In the home appliances segment, Samsung manufactures refrigerators, cook ovens, smart ovens, air conditioners and washing machines.All of these products define Samsungs competitive ness and vision in terms of product innovations like silver na nonechnology, twin cooling etc. At present, Samsung is the leading home appliances manufacturer and many of products are the best in their respective sub-segments. ad hominem computers, peripherals and printers are also the part of Samsungs innovative and high-end technology product line. These include laptop nonebooks, VDAs, melody speakers, Internal and external hard drives, optical disc drives and printers. Though, Samsung is not yet a leader in this segment but its inclination of high end technology shows into these products also.For Samsung, there is still scope for improve their products quality in the Indian market. The products sometimes develop technical flaws like display in the mobiles, gasolene kit leakages in frost-free refrigerators etc which are to be improved. Since, Samsung competes on the pedestal of the innovation and technology in the accredited market scenario this plays a very important role in their major sales not only in India but in the whole world as a whole. As far as the after product service of Samsung is concerned, it needs major improvement in terms of contacting with customers.Since service is intangible, it needs to be provided as quickly as possible. Reducing the retention time in providing value to the customers can add to big advantage for Samsung considering the current market conditions. Place strategy Samsung electronics employs antithetical place strategies for different products. When we talked to marketing representative he said the whole of Samsung electronics India has divided its distribution systems into mingled regions on basis of demand and number of dealers per region for example we visited what he called the vidharba region.Samsung uses supply concatenation to enhance differentiation, increase sales and penetrate new markets and channels. It efficient supply chain is transparent, so that all the players in the supply chain have the right information at the right time about the movement of the products within the chain. This centre lower inventories, elimination of waste, and reductions of costs. In addition to the intangible benefits like quick feedback from customers help in establish new products. Samsung has 24 state-level distribution offices and a direct dealer interface.The direct dealer interface helps the company to get quick feedback from dealers, and enables it to launch products according to consumer needs. Samsung also believes in JIT (Just-in-Time) concept to its dealers. To minimize time overruns, Samsung delivered its products at one time from its factories to its Regional Dispatch Centers (RDCs) and from there to dealers. SIEL is having tether types of distribution system 1)A one-level channel contains one grappleing intermediary, such as retailer. 2)A two-level channel contains two intermediaries.In consumer markets, these are a wholesaler and a retailer. 3)A three-level channel contains three intermediaries. Other strategies Shop-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 create a shop-in-shop atmosphere. In the shops where we conducted studies we found around 30-50% of counter share was of Samsung. Thus Samsung believes in jo dikhta he vo bikta he. The exclusive showroomsSamsung 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/plasma/3D TVs). The Samsung Digital home goes beyond the concept of a Digital Plaza or a Brand Shop because in it, they are trying to create a more interactive environment and providing a more lifestyle orientation to the display, so that the customer can visualize the products in his/her own home settings. Samsung depart add another 30 showrooms to its existing 100-odd this division.Over the neighboring few months, the existing Samsung Digitall Homes will all be rebrand Samsung Plaza, in keeping 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 just about a charge change, though. Samsung India also wants uniformity in appearance and sales experience at each of these showrooms that means an furiousness on product demonstration, not just display.Pricing Strategy Samsung believes in providing good products at reasonable prices to its customers. Samsungs technology plank communications helped the company to gain market share, even though it did not offers any snubs or exchange 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 operational costs which enabled the company to keep low prices for certain products and remove higher profit margin from indemnity products.Samsung India posted revenue of $2. 2 billion last year and this is expected to go up to $3. 5 billion this calendar year. Samsungs global revenue is $116. 8 billion. The focus of its competitors is to penetrate in the rural and semi-urban mass markets. But Samsung insists that its a high end technology driven 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 few years samsung India..Deputy Managing Director, Ravinder Zutshi says Still, focusing on the premium 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 finished pricing, but through product innovation. he vehemently rejects the price warrior tag, though. Samsung is not a price warrior but today we are as competitively pr iced as our rivals. The focus is on expansion and deeper market penetration, he adds We are aiming at market leadership not only in the premium family line of products but also mass categories like flat televisionsIt is difficult to achieve the ambitious targets keeping in mind the pricing strategy of Samsung. But, they believe that it takes time to ensure your supremacy in market share. in one case you get your brand perception right in the minds of the consumers as a brand that delivers the best technology and gives you value for money, then ultimately market share goes up. Now Samsung has changed its policy a bit and alternatively of just remaining a high-end technology driven brand it tried to change its image to sell products to the huge number of middle income families in India.It started pricing its products on the value for money concept, keeping in mind the price sensitivity of Indian consumers. But still Samsung has the repute of being a premium brand, aggressive in launc hing newer models with the latest technology and at economic costs throughout the world. advancement Strategy Turn on Tomorrow We are investing aggressively in marketing to transform our company to be truly market driven and to establish our Samsung brand as the most swear and preferred brand in the market. Vice-chairman & CEO, Samsung ElectronicsPromotion stands for various activities the company undertakes to communicate and promote its products to the target market. The qualification of a Global Brand When Samsung decided to become globalized, it acquired a new corporate identity by changing its logo and that of the group. In the new logo, the words Samsung Electronics were written in white color on a blue color background to represent stability, reliability and warmth. The words Samsung Electronics were written in slope in process of globalization drive. The logo was shaped elliptical representing a moving world symbolising advancement and changeTo capture the retail mar ket for consumer electronic goods, such as TVs, washing machines and microwave ovens, it formed partnerships with retailing giants like Best Buy. Advertising and Promotional Strategies To promote the ideas, goods or services advertize is important and in this course it launched promotion depicting product transformation into more advanced models, in course of time. This depicts the importance that they give to the research and development and making people understand that they are not just trend followers but are trend setters.Samsung launched corporate advertisements highlighting its technologically superlative 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 superior technology and environment friendly ones with refrigerators and ACs incorporate with revolutionary new technology called gold Nano Health System that ensures freshness and bacteria free envir onment.Also, it launched the Bio range of products. Launched a special marketing compress for Flat Tvs including a focused advertising campaign Duniya Hai Gol, TV Flat and attractive exchange offers. Adding to these, Samsung launches an across-the-board ad campaign in all sorts of media (like print, electronic) whenever a new product is being launched. These create public awareness and add to these media hoarding at major junctions and displays at point of purchases are done.Also, it offers special incentives like price off, patronage rewards, etc during festival season in order to create an incentive to buy the product, and a special ambience is created during the festive offers at the point of purchases to give the feel of Indian nativity of the company. Samsung build trust and confidence by their active promotion and advertising. Associations with various others across the world made the globally known and built its image on its association. The partnership between Samsung mo bile and SSAFW (Sanlam South African personal manner Week) shows the fusion of art, fashion and technology.It radiates technological elegance and stylish panache, by joining forces off SSAFW and enhances techno-fashion centered brand. Samsung India associated itself with the command passion of Indian consciousness Cricket. It launched a Team Samsung campaign, which caught the imagination of the entire campaign. Also, in 2004 it bought biggest spectacle debate of this decade to India vs Pakistan cricket series The Samsung Cup. Not confining itself to cricket, Samsung sponsors the Indian contingent to the Olympics and the Asian Games.It also ran cultivation programmes for deserving Indian athletes under the Olympic Ratna banner. Samsung also helped India to bring the Olympic torch relay to India. Samsung also brings the World Cyber Games, which is regarded as the Olympics of the Cyber World to India every year. In mobile phones, Samsung tied up with a famed 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 microwaves, 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 Winter 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 baseball club Chelsea FC, the premiership known globally and attract a good number of audiences all across the globe.Samsung also sign(a) a partnership deal with Mexican football Team Club Deportivo Guadalajara for six years in 2008 and provides plasma and LCD screens for aggroups new stadium 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 Super League with worldwide Federation for Equestrain Sports and FEI Nations Cup, the worlds oldest and best renowned equestrian series. Also sponsors rugby league team Sydney Roosters in Australian National Rugby League.It is the sponsor of Essendon Football club in A League. Sponsor of NASCAR Nextel Cup, French Peoples Baseball Team, running festival in Taiwan, and professional StarCraft team (Samsung Khan). appointed HDTV sponsor of the National Football League (NFL). Official IAAF (International Association of Athletics 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.Aamir Khan for mobiles, P riyanka Chopra has been recently chosen as brand ambassador for home appliances, Olympic Gold 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. Perfect 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 individual Gold Medallist at Olympics.Annexure 1 Annexure 2 Samsung Product Line Samsung India product line as on the Samsung India website The product line has been divided into five main categories as shown in the above figure. The mobile phone category has been divided into eight different sub-categories The Tv/Audio/Video category is divided into five sub-categories The Camera/Camcorder category contains The Home appliances category has five main sub-categories The PC/Peripherals category includes