Marketing Stategy of Samsung Mobile
Marketing Stategy of Samsung Mobile
Marketing Stategy of Samsung Mobile
Samsung mobile
Table of Contents
1. EXECUTIVE SUMMARY.
2. SAMSUNG HISTORY
3. COMPANY HISTORY IN INDIA
4. SAMSUNG PRODUCTS
5. STRATEGIES OF SAMSUNG IN INDIA
6. PRODUCT STRATEGY
7. PRICING STRATEGY
8. ADVERTISING AND SALES PROMOTION
9. DIRECT MAIL
10. TARGET MARKETS
11. POSITIONING STRATEGIES
EXECUTIVE SUMMERY
SAMSUNG is a company that has been steadily growing
throughout the past decade. The following report will help
SAMSUNG maintain the growth that has been enjoyed in the past,
with a strong emphasis on the growth of the all consumer
durables and mobile divisions. By analyzing customers and what
they want, strategies can be devised as to how SAMSUNG can
increase their share of the market. Furthermore, by comparing
SAMSUNGs strengths and weaknesses to that of the competition,
opportunities can be identified and capitalised on.SAMSUNG
entered into Indian market with its technologically advanced
home appliances. But when it entered in an Indian market, it had
to face very tough competition and still its facing tough
competition, but now it has gained the top position among
different companies in India. Not only SAMSUNG has highest
market share in home appliances, but also in Smartphone market.
SAMSUNG created its own marketing strategies and also defined
there target market to penetrate into Indian market. SAMSUNG
aims to have more market share in Indian market. India is a
country having its major consumers in high and medium income,
as the poverty level is declining the major group is turning into
medium income group with some purchasing ability. SAMSUNG
India is now available with a big target market. Already in the
Market major companies are available which is having a trust
among the consumer with respect to the quality, durability &
price. The major competitors in Electronic consumer goods
SAMSUNG History
Unlike other electronic companies SAMSUNG origins were not
involving electronics but other products. In 1938 the SAMSUNGs
founder Byung-Chull Lee set up a trade export company in Korea,
selling fish, vegetables, and fruit to China. Within a decade
SAMSUNG had flour mills and confectionary machines and
became a co-operation in 1951.From 1958 onwards SAMSUNG
began to expand into other industries such as financial, media,
chemicals and ship building throughout the 1970s. In 1969,
SAMSUNG Electronics was established producing what SAMSUNG
is most famous for, Televisions, Mobile Phones (throughout
90s),Radios, Computer components and other electronics
devices.1987 founder and chairman, Byung-Chull Lee passed
away and Kun-Hee Lee took over as chairman. In the 1990s
SAMSUNG began to expand globally building factories in the US,
Britain, Germany, Thailand, Mexico, Spain and China until 1997.In
1997 nearly all Korean businesses shrunk in size and SAMSUNG
was no exception. They sold businesses to relieve debt and cut
employees down lowering personnel by 50,000. But thanks to the
electronic industry they managed to curb this and continue to
grow. In 1993 SAMSUNG developed the lightest mobile phone of
its era. The SCH-800 and it was available on CDMA networks.
Then they developed smart phones and a phone combined
mp3player towards the end of the 20th century. To this date
Objectives of Study
The basic objective of study is to analyze the market share of
SAMSUNG consumerdurables and mobile phone. At the same
time, an attempt was made to understand theBrand image of
SAMSUNG.
Pricing strategy:
Pricing also seemed to have played a significant role in
SAMSUNGs success. Differentiation is thekey for a brand to be
preferred by consumers, when there are so many brands within
the sameproduct category. SAMSUNG believes in providing good
products at reasonable prices to itscustomers. SAMSUNGs
technology plank communications helped the company to gain
marketshare, even though it did not offers any discounts or
exchange scheme when it entered India.SAMSUNG focuses on
cost-cutting measures to keep its price low which helps to combat
thediscount schemes of the local companies.For e.g. - In 2001,
due to high competition in the 20?CTV segment, SAMSUNG had to
resort toprice cuts. The company said that value engineering, new
product lines and new chassisdevelopment had contributing in
combating price erosion. SAMSUNG negotiated with its vendors
toreduce costs on cabinets, plastics, speakers, harness coils,
remote controls, etc. SAMSUNGs Brandimage seemed to have
helped it survive the price erosion. Dealers also agreed to lower
marginsowing to companys brand image.SAMSUNG in the year
2002 drastically reduced its operational costs which enabled the
company tokeep low prices for certain products and extract
higher profit margin from premium products. Thishelped
SAMSUNG to post a turnover of Rs.30 bn, a growth from the year
Sales Promotion:
Along with advertisements, SAMSUNG also focuses on
promotional schemes to increase its sales.In October 2001,
SAMSUNG launched its highly successful promotional scheme, the
SAMSUNG=PhodkeDekho Offer. This offer instantly boosted the
sales of the company generating sales of Rs.2.75 from this offer.
The campaign was launched on an all India basis during the
festival season.Under the scheme, consumers who bought any
SAMSUNG product were given a tamper proofplastic coconut with
three coins in it. One out of every 10 coconuts had a lucky coin
with a giftprinted on it. As a part of the campaign, SAMSUNGs
brand ambassador, Tabu interacted with thecustomers and
dealers of SAMSUNG in Bangalore and Chennai and handed over
the lucky select SAMSUNG customers. The prizes included
products from the SAMSUNG range. The PhodkeDekho offer was
followed by another promotion scheme in May 2002,
=DabakeJeetooffer coinciding with the football World Cup. During
the promotion every customer who purchasedcompanys
electronics or home appliances product got plastic football with an
alarm clock in it. Thecustomer had to press the football from the
top, and was given the free etched on the tamper-proofanodized
sticker. Under this campaign, SAMSUNG gave out gifts worth Rs.
100 which includedSAMSUNG digital flat TVs, frost free
refrigerators, microwave ovens, Karisma washing
machines,mobile phones, cameras and Soccer 2002 official
Sponsorship:
SAMSUNG used sponsorship of events like Olympic series to boost
its sales. SAMSUNG was theglobal wireless communications
sponsors at the Athens Olympics. SAMSUNG used the strategy
ofrelating itself directly with the values of the Olympic Games,
which included attributes like worldclass, global, excellence, fair
competition and peace. The Olympic series of August5, 2004
wasSAMSUNGs salute to the Olympic values.SAMSUNG was the
sponsor of Lakme India Fashion Week held on April21, 2005.
TeamSAMSUNG cricketers - IrfanPathan, Mohd.Kaif and
VirendraSehwag launched the Worlds BestHandset, SAMSUNG
D500 during the SAMSUNG Show at the Lakme India Fashion
Week. Thetheme for the SAMSUNG Show was =The Best Thing
Says Everything in keeping with thepositioning of SAMSUNG
D500 - SAMSUNGs latest and path-breaking mobile phone which
hasbeen rated as the =Worlds Best Mobile phone by the 3GSM
Association World Congress held atCannes in February
2005.SAMSUNG sponsored SAMSUNG & MTV Youth Icon 2005 on
June10, 2005. The idea behind thesponsorship was that the
Target markets:
SAMSUNG target market is high and medium income level
communities.
POSITIONING STRATEGIES
The concept to position the brand may be based on the functions
provided by the product, theexperience it offers or symbol it
conveys.Developing positioning strategy requires integrating the
product, price, value chain, and promotionstrategy to focus them
Branding Strategy:
For any new company, when it makes its entry into the market,
there are two ways to stimulategrowth: intensive advertising
campaign, and product offerings with unique functions.
SAMSUNGrecognized the potential of both. ?In terms of products,
SAMSUNG introduced its leading-technology display products as
well as printers in the Indian market and carried out SI meets all
overthe country to educate the channel community on its new
products? saysRanjit Singh Yadav,Director IT, SAMSUNG
India.However, the power of brand building exercise was not lost
on the company. In fact, SAMSUNGiltedmore towards advertising
and brand-making strategy creating awareness of its name
byinvesting large amounts of money in million-dollar brandmaking campaigns.In India, SAMSUNG, in order to create its brand
awareness, signed seven cricket celebrities and indoing this it
aimed to cash in on the popularity of cricket in India which is
considered a religion inIndia. Instead of just ads featuring
cricketers, SAMSUNG launched its?Team SAMSUNG Indiacampaign
all over India. The focus of this concept was to create patriotism
through cricketers, butunder the SAMSUNG brand name the
banner reads?With Team SAMSUNG? The campaign was ahuge
success and it enabled SAMSUNG to increase awareness of its
Brand association
Brand Associations are not benefits, but are images and symbols
associated with a brand or a brandbenefit.
Distribution Channels:
Along with the launch of new products, SAMSUNG also
consolidated its distribution system.SAMSUNG had 18 state-level
distribution offices and a direct dealer interface. The direct
dealerinterface helped the company get quick feedback from
dealers, and enabled it to launch productsaccording to consumer
needs.SAMSUNG uses supply chain to enhance differentiation,
increase sales and penetrate new marketsand channels. Its
supply chain is beneficial in several ways. It helps the company to
deliver productsto the customer faster. It efficient supply chain is
transparent, so that all the players in the supplychain have the
right information at the right time about the movement of the
products within thechain. This means lower inventories,
Marketing Strategy:
SAMSUNG has to improve its after sales service in order to retain
customer and create brandloyalty. The current policy adopted by
Future Prospects:
We found out common is that SAMSUNG lacks in after sales
service. The drawback in their aftersales service strategy is that
they have only one customer service centre throughout India
which situated in Delhi. When a customer has a complaint he
Social Contribution:
Apart from developing innovative technology products, SAMSUNG
places great importance onacting as a responsible corporate
citizen in the communities where it operates. Its CSR
programsrespond to the social and environmental needs and seek
to give back to communities where it
operates. In 2009, SAMSUNG launched the companys Corporate
Social Responsibility initiative =SAMSUNG Hope Project with
projects in the areas of education, culture, sports, social welfare
andcommunity development. Each program under the Hope
Project uniquely addresses the needs ofindividual communities
while emphasising on innovations for development of the
communityincluding education, technology, engineering and IT
technical training.Notable local programs include:SAMSUNG Hope
for Children, an initiative designed to help under-privileged
children through e-learning centers. These e learning centres
located in different parts of the country impart computerliteracy
to underprivileged youth and ensure placements as
well.Innovations for development of the community, a partnership
between SAMSUNG and variouseducational and media agencies
to support grassroots innovations. SAMSUNG has instituted
twoprograms: SAMSUNG Innovation Award with IIT, Delhi and
RESEARCH METHODOLOGY
The essential part of any report is research methodology. The field
study was conducted to analyzethe market share and understand
the Brand image of SAMSUNG products.
QUSENTIONNAIRE
1. Which mobile phone you are using?
Nokia
Samsung
LG
IPhone
Blackberry
Other
2. How is this mobile?
Good
Better
Best
Bad
3. After sale service that has been provided by company
is
Excellent
Good
Average
Below average
in Samsung mobile?
Price
Quality
Demand
Brand image
mobile?
Yes
NO
6. Do you think Samsung mobile is innovative?
Yes
No
7. How long you are using the current mobile
Brand Image
Service
Others .
nokia
samsung
L.G.
IPhone
Blackberry
Other
Interpretation
From the above pie chart, it can be observed that the respondents use
SAMSUNG mobile more than other mobile.
Nokia(9),Samsung(12),L.G(2),Iphone(4),Blackberry(2),Other(1). These
numbers shows that Samsung mobile is very famous in consumers.
Price
Quality
Demand
Brand image
Interpretation
From the above pie chart, it can be observed that Samsung mobile is good to
use.
Price
Quality
Demand
Brand image
Interpretation
From the above pie chart, it can be observed that there is need to some
changes in aftersales service to make average to Excellent.
Price
Quality
Demand
Brand image
Interpretation
From the above pie chart, it can be observed that most of the people check
quality of mobile then he will purchase.
Yes
No
Interpretation
From the above pie chart, it can be observed that only 13 peoples told
friends to purchase Samsung mobile.
Yes
No
Interpretation
From the above pie chart, it can be observed that only 11 peoples said that
Samsung mobile is not innovative it means there is need to make some
innovation in Samsung mobile.
Interpretation
From the above pie chart, it can be observed that large number of persons
are use the mobile in only 1 2 years.
Yes
No
Interpretation
From the above pie chart, it can be observed that good number of peoples
are satisfied with Samsung mobile.
Yes
No
Interpretation
From the above pie chart, it can be observed that 16 out of 30 peoples said
that he will ready to buy Samsung mobile just because of its brand name.
Advertisement
apperance
Price functions
Quality
Brand image
Service
Other
Interpretation
From the above pie chart, it can be observed that 15 peoples like Samsung
just because of its quality and price functions.
range of products are giving better deals as they dont incur cost
in distribution channel.
OPPORTUNITIES
The economic condition of South Korea seems favorable.
SAMSUNG is interiorizing the social shifts. It is having constant
policy given by the government. SAMSUNG is reasonable
equipped to take care of technological changes. SAMSUNG is
maintaining good international relationship with other countries
and the local. SAMSUNG is planning to make the air-condition
product category more strong with unique technology called
Triple protection proposition. SAMSUNG is the Indias official
Olympic partner for the 2012 London Olympic and recently
launched Olympic Ratna Program. This will result enhance brand
awareness and increase the sales. SAMSUNG Mobile and Home
appliance has future plans of launching Customized products for
Indian market. This will improve the market share in rural market.
The Indian youth population is growing and mobile phone sales
are expected to increase due to lesser call rates. Its financial
position is strong and there is a scope of entering into unrelated
diversification
THREATS
The legislation has been passed frequently related to industry.
Technological transformation takes place in the industry was very
high. Regulatory issues and safeguarding of property rights was
main threats in legislations. SAMSUNG has wide variety of product
lines; failure of one product line will have impact on the other and
will result in brand dilution.
The competitors like Nokia are focused focused only in one
segment.Since India is a potential market, entry of foreign players
is likely high. Foreign players likeHaier have already started
gaining market share in India in home appliances.Threats from
Chinese products.Retail Chains like Bigbazaar sell consumer
Conclusion
Although Samsung has captured the highest market share in
Indian market, but the company had toface so many problem. For
example conflict with the Apple, Apple blamed the Samsung
thatcompany is copying some of its features and design. This
blame damaged the reputation of theSamsung all over the world.
But still Samsung is a favourite brand of Indian consmers whether
wetalk about Electronic consumer goods or Smartphone. It means
despite of problems and blames,Samsung has positioned itself in
consumr mind as a quality brand.