Marketing Strategy of Samsung in India

Section B Submitted by Harsh Golan About Samsung The Samsung Group is a multinational conglomerate corporation headquartered in Samsung T avow, Seoul, southwest Korea. It is the knowledge bases largest conglomerate by revenue. The Samsung Group is composed of numerous international affiliated billetes, near of them linked under the Samsung commemorate including Samsung Electronics, the globes largest electronics fraternity, Samsung Heavy Industries, the worlds imprimatur largest shipbuilder and Samsung C, a study global construction ships caller.Samsung has been the worlds most popular consumer electronics brand since 2005 and is the surpass cognise due south Korean brand in the world. Samsung Group accounts for more than 20% of South Koreas total exports and is the leader in many domestic industries, much(prenominal) as the financial, chemical, retail and entertainment industries. Samsung India Electronics Private Limited (SIEL) is the Indian infantryman of the US $ 55. 2 billion Samsung Electronics Corporation (SEC) headquartered in Seoul, Korea. Headquartered in bracing Delhi, SAMSUNG India has general network of sales offices in any all over the country.SAMSUNG India is the hub for SAMSUNGs South West Asia Regional operations. The South West Asia 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 enjoys a sales turnover of over US$ 1Bn in incisively a decade of operations in the country. From being a virtually vague entity in the Year 1995, brand SAMSUNG today enjoys an awargonness level of over 65% and a positive opinion of over 80% in the country today (source BAS 2007).Initially, a player only in the cloak Televisions department, it later diversified into color monitors (1999) and refrigerators (2003). Today, it is recognized as one of the high-velocity growing brands in the sphere of digital en gineering science. SIEL is the commercialise place leader in high end digital television (Plasma, LCD). STP APPROACH OF SAMSUNG naval division Segmenting is the process of dividing the market into segment based on customer characteristics & needs. Segmenting consists of 1. geographical breakdownation it is nearly present in 14 countries except has maintained a nearly same expense and quality tag worldwide. 2.Demographic segmentation it has motto of every(prenominal)ones invited so it produces justs for nearly every segment, from tech-savvy to gamers to middle severalize family. It has something in sort for you. Tar raiseing Is the process of contracting on a particular proposition market with a particular w are . ?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 are available in both cities. The differences can be seen is the in tier1 cities it has exclusive Samsung show rooms while in tier2 and below cities it usually shares antipathetical with other competitors .Also goods same(p) smart rings and android phones, expensive models of TVs resembling 3d etc are found in tier1 cities . in tier2 and below cities it becomes a mass producer of electronic items at reasonable cost. Positioning Samsung has positioned itself as digital technology leader. In 1990 group chairman, Kun-Hee Lee(Lee), initiated transformation from a low-end OEM into a world-class electronics company and now Samsung came to be perceived as a company with exciting output portfolio. TOP exceeding shit for the 2008 Beijing prodigiouss and Olympic Partner for the 2008 Olympic Torch Relay.Manavjit Singh Sandhu was its Olympic give away away embassador and launched the program Spread the Olympic Flame ? APPOINTS OLYMPIC GOLD medalist ABHINAV BINDRA AS dent AMBASSADOR FOR ITS CONSUMER ELECTRONICS BUSINESS ? APPOINTS AAMIR KHAN AS ITS BRAND AMBASSADOR FOR MOBILE PHONES ? New, sp unky, tagline Next 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 foot appliances. These outputs include 1)Mobile phones with the accessories, )Television, Audio player, Video player, 3)Camera, Camcorder, 4)Home appliances, 5)PC, Peripherals and Printers. In the mobile phone industry, Samsung has the turn largest share in the market with 19. 6% as per November 2010 consensus. The mobile phone market share is shown in Annexure 1. In the Indian mobile market, Samsung is the second largest player after Nokia with ingathering line extending to over fifty harvest- fiestas. The intersection point line includes some of the most preferred mobile phones manage Samsung Guru serial, Corby series and many more.Recently Samsung has launched its Samsung galaxy series in the Indian market. Samsung is in like manner into manufacturing televisions, audio players, v ideo players, blu-ray players, internal theatres and mul agedia players. In India, Samsung is the start-off to solve the concept of LED technology in televisions. Samsungs products, in this crime syndicate, are cognise 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 category 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 have unceasingly been recognized for their fine technology and optical innovations in such things as auto focus and optical zoom capabilities. These products, though, high on technology are an affordable option for those who have an edge for their photography hobbies. In the home appliances segment, Samsung manufactures refrigerators, microwave ovens, smart ovens, air conditione rs and washing machines.All of these products restrain Samsungs competitiveness and vision in terms of product innovations like silver nanotechnology, twin cooling etc. At present, Samsung is the leading home appliances manufacturer and many of products are the best in their respective sub-segments. individual(prenominal) computers, peripherals and printers are also the part of Samsungs innovative and high-end technology product line. These include laptop notebooks, VDAs, music 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 let off scope for improving their products quality in the Indian market. The products sometimes break away technical flaws like display in the mobiles, gas kit leakages in frost- apologise refrigerators etc which are to be improved. Since, Samsung competes on the basis of the innova tion and technology in the current market scenario this plays a very important role in their major sales not only in India but in the alone 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 flyingly as possible. Reducing the retention time in providing lever to the customers can convey to spoiled advantage for Samsung considering the current market conditions. Place strategy Samsung electronics employs dissimilar place strategies for different products. When we talked to marketing representative he said the whole of Samsung electronics India has divided its dissemination systems into various regions on basis of demand and egress of dealers per region for example we visited what he called the vidharba region.Samsung uses supply chain to enhance differentiation, addition sales and penetrate saucily markets and parentages. It e fficient supply chain is transparent, so that all the players in the supply chain have the right study at the right time about the movement of the products within the chain. This pith lower inventories, elimination of waste, and reductions of be. In addition to the intangible benefits like quick feedback from customers help in launching pertly 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 defame time overruns, Samsung delivered its products directly from its factories to its Regional Dispatch Centers (RDCs) and from there to dealers. SIEL is having three types of distribution system 1)A one-level bridle-path contains one trade ining intermediary, such as retailer. 2)A two-level channel contains two intermediaries.In consu mer 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 take a shit 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 instigator Shop because in it, they are trying to defecate a more interactive environment and providing a more modus vivendi orientation to the display, so that the customer can visualize the products in his/her own home settings. Samsu ng will add another 30 showrooms to its existing 100-odd this division. over the next few months, the existing Samsung Digitall Homes will all be rebranded 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 name change, though. Samsung India also wants uniformity in visual aspect and sales experience at each of these showrooms that means an emphasis 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 discounts or deputize scheme when it entered India. Samsung focuses on cost-cutting measures to keep its price low which helps to struggle the disc ount schemes of the local companies. Samsung drastically reduced its operational costs which enabled the company to keep low prices for certain products and extract higher profit edge from premium 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 country-bred and semi-urban mass markets. But Samsung insists that its a high end technology compulsive player. Thats why the urban welkins are still a focus area for it and only 30 per cent of revenue comes from rural and semi-urban India. Howsoever in noncurrent 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 through 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 priced 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 category of products but also mass categories like flat televisionsIt is difficult to achieve the manque targets keeping in mind the pricing strategy of Samsung. But, they believe that it takes time to ensure your supremacy in market share. Once 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. without delay Samsung has changed its policy a bit and instead 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 pri ce sensitivity of Indian consumers. But still Samsung has the repute of being a premium brand, hostile in launching newer models with the latest technology and at economic costs throughout the world. Promotion 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 blasphemeed 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 Making of a Global Brand When Samsung decided to become globalized, it acquired a new collective 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 reach to represent stability, reliability and warmth. The words Samsung Electronics were written in English in process of globalization drive. The logo was s haped elliptical representing a miserable world symbolizing advancement and changeTo capture the retail market for consumer electronic goods, such as TVs, washing machines and microwave ovens, it formed coalitions with retail giants like Best Buy. Advertising and Promotional Strategies To promote the ideas, goods or serve advertising 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 superior goods as they entered into the Indian market, and positioned itself in the brainpower 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 rev olutionary new technology called Silver Nano Health System that ensures freshness and bacteria free environment.Also, it launched the Bio range of products. Launched a special marketing campaign for Flat Tvs including a focused advertising campaign Duniya Hai Gol, TV Flat and winive 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 awareness and add to these media hoarding at major junctions and displays at point of purchases are through.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 built trust and confidence by their active promotion and advertising. Associations with various others across the world mad e the globally known and built its image on its association. The partnership between Samsung mobile and SSAFW (Sanlam South African Fashion Week) shows the fusion of art, vogue and technology.It radiates technological elegance and stylish panache, by joining forces off SSAFW and enhances techno-fashion concentrate on brand. Samsung India associated itself with the ruling passion of Indian consciousness Cricket. It launched a Team Samsung campaign, which caught the image 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 training 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 noted catamount 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 fusion (Globally) Samsung sponsored Olympic Winter Games in 1998 and will prescribedly 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 attract a good number of audiences all across the globe.Samsung also sign-language(a) a partnership deal with Mexican football Team conjunction Depor tivo Guadalajara for six years in 2008 and provides plasma and LCD screens for teams 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 superior League with International Federation for Equestrain Sports and FEI Nations Cup, the worlds oldest and best notable equestrian series. Also sponsors rugby league team Sydney Roosters in Australian case 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). Official 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, Priyanka Chopra has been latterly chosen as brand ambassador for home appliances, Olympic gilt 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