Sales management strategy of Samsung

Group members:
Aditya Kore
Siddharth Agarwal
Tushar narang
Umesh Saluja

Submitted to: Dr.Rohit Singh

History of Samsung
Samsung's history dates to 1938 when "Samsung General Stores" opened in North Kyungsang Province, Korea. The company conducted its trade business until the 1950s when it
became a producer of basic commodities such as sugar and wool. In 1958, Samsung be-came
involved in the insurance industry by incorporating a local fire & marine insurance company.
During the 1960s, Samsung became one of the first Korean companies to actively expand its
overseas trade. The group consolidated its manufacturing base by adding paper and fertilizer
businesses. Samsung continued with expansion into the life insurance business, strengthened
its retail operations and then moved into the communications sector, successfully establishing
a newspaper and a broadcasting company.
The 1970s were a crucial period in shaping present-day Samsung. Its strengths in the
semiconductor, information and telecommunications industries grew from the significant
investments made during this period. Samsung also took a meaningful step toward heavy
industries by venturing into aircraft manufacturing, shipbuilding and construction, as well as
chemical industries.
In the 1980s, Samsung expanded its efforts into exploring the larger markets overseas. The
group began contributing to foreign economies by building facilities in the US, the UK and
Portugal. Samsung also invested considerable resources into fostering Koreas rich heritage
by supporting a wide range of cultural and artistic activities.
The final decade of the
20th century saw the evolution of Samsung's new approach
to management. Chairman Kun-Hee Lee's insightful vision and the introduction of the "New
Management" in 1993 acknowledged the need to transform management philosophy in or-der
to keep up with a rapidly changing global economy.
Today, Samsung has evolved into a group of companies unmatched by others in its range of
industries and performance. It is now coherently restructured and streamlined, well-trained,
globally-focused and responsive to the needs of each market, and more committed than ever
to true innovation. The group's three core business sectors are electronics, finance, and trade
and service

What is sales strategy?

A sales strategy consists of a plan that positions a companys brand or product to gain a
competitive advantage. Successful strategies help the sales force focus on target market
customers and communicate with them in relevant, meaningful ways. Sales representatives
need to know how their products or services can solve customer problems. A successful sales
strategy conveys this so that the sales force spends time targeting the correct customers at the
right time.

Strategies of Samsung
Product Innovation Samsung's product range in India included CTVs, audio and video products, information
technology products, mobile phones and home appliances. Its product range covered all the
categories in the consumer electronics and home appliances. Analysts felt that the wide product range
of Samsung was one of main reasons for its success in the Indian market. Samsung positioned itself on the
technology platform.
Pricing Pricing also seemed to have played a significant role in Samsung's success.
Distribution 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 dealer interface helped the company get
quick feedback from dealers, and enabled it to launch products according to consumer needs.
Advertising and Sales Promotion In 1995, when Samsung entered India, it realized that Indian consumers were not familiar
with the company. So, in order to establish itself in the Indian consumers mind, Samsung
launched corporate advertisements highlighting its technologically superior goods.

Advertising and Promotional Strategies In 1997, Samsung launched its first corporate advertising campaign - Nobel Prize Series. This
ad was aired in nine languages across Europe, the Middle East, South America and CIS
countries. The advertisement showed a man (representing a Nobel Prize Laureate) passing
from one scene to another. As the man passes through different scenes, Samsung products
transform into more advanced models. According to company sources, the idea was to convey the
message that Samsung uses Nobel Prize Laureates' ideas for making its products.

Samsung Electronics: Innovation and Design Strategy In January 2008, Samsung Electronics won 32 innovation and design engineering awards at
the Consumer Electronics Show. This is a management strategy case that explores product
design, innovation strategies and strategic planning in a changing competitive landscape.
While investment in R&D and product design has rewarded Samsung Electronics with its
dominant market position and premium brand perception, such dominance may not be
sustainable in the long run, especially now that competitors are achieving higher profitability
with lower investments in R&D per product. The case also discusses such issues as product
design philosophies, innovation strategies, localization of products, product design
outsourcing for consumer electronics products.
Design strategy
Design strategy is a discipline which helps firms determine what to make and do, why do it
and how to innovate contextually, both immediately and over the long term. This process
involves the interplay between design and business strategy, forming a systematic
approach integrating holistic-thinking, research methods used to inform business strategy
and strategic planning which provides a context for design. While not always required,
design strategy often uses social research methods to help ground the results and mitigate
the risk of any course of action. The approach has proved useful for companies in a
variety of strategic scenarios.
Samsung's Plan to Strengthen Its Weaknesses The global cell phone business has been in a funk lately, with handset sales off 11% this year
a serious downshift from the double-digit expansion of recent times. Samsung Electronics,
though, has bucked the trend, boosting sales 7% in 2009 without denting its 10% profit
margins. That has helped the Korean giant increase its worldwide market share to 19% and
cements its position as the No. 2 player globally, behind Nokia, with 38%. Samsung's
reaction to the good news? "We have a long way to go," says J.K. Shin, the company's new
handset business chief.
Sure, there's a big dose of traditional Korean modesty in Shin's fretting. But while Samsung is
the top brand in the U.S., Shin is worried that the company remains a laggard in two key
segments: high-end smart phones and ultra-cheap models for developing countries. In smart
phones, Samsung has just 3.5% of a world market that's likely to grow 31% this year,
according to researcher Strategy Analytics. At the low end, Samsung still trails Nokia badly.
In India, its share is less than 10%, vs. Nokia's 58%. And of the 150 or so new models
Samsung will introduce this year, only a half-dozen cost less than $100.

Samsung's Marketing Strategy in India Samsung entered India in December 1995 as a 51:49 joint venture with
Reasonable Computer Solutions Pvt Ltd (RCSPL), owned by Venugopal Dhoot of
the Videocon group. In 1998, RCSPL diluted its stake in Samsung to 26% and in
November 2002, the FIPB cleared Samsung's proposal to buy RCSPL's remaining
(23%) stake.

In 2002, Samsung established manufacturing facilities for colour televisions, microwave

ovens, washing machines and air conditioners at Noida, Uttar Pradesh. It also had a presence
in consumer electronics, information technology products, mobile phones and home
appliances. Samsung's flagship businesses were consumer electronics and home appliances,
which contributed more than 60% of its revenues.

In 2002, Samsung reported sales of Rs.170 million with 26% growth over the previous year.
Its consumer electronics business grew by 29% and contributed 60% to the total sales, and its
home appliances division grew by 21%, contributing 40 % of the total sales.

PRODUCT STRATEGY THROUGH DIVERSE PRODUCT OFFERING.

Samsung has a vast product offering targeting sectors from a low end CDMA mobile phones
to mid-range phones galaxy A and J, and to a high end smartphones Galaxy S. Samsung has
also devastated its product in categories by Tablets, smart phones, phablets and even
introducing new category of apple watch.
According to me, this strategy can be both focused in a positive aspect and negative aspect.
Negative Aspect :- It has a line up satisfying each category of affording capacity customer
which may hinder its image for developing premium range phone developed by its
competitor Apple in the market.
Moreover, company has tried to get a same user experience of premium galaxy S range to
mid end customer by introducing Galaxy A and J series which may have hinder its
positioning for premium range customer. Moreover, product diversification can be costly and
risky.
Positive Aspect: - Product diversification when done right provides a safety net against
market downturns. Concentrating heavily on a single or fewer products for a limited
market(such as done by apple) exposes a company to risks associated with market volatility
due to rising and falling demands.

TECHNOLOGICAL INNOVATION AS PART OF THE PRODUCT STRATEGY OF

SAMSUNG.

Technological innovation is a backbone of a smartphone industry. And, Samsung has

managed to enter exist in market due to innovations. Samsung was able to beat the market of
Motorola and Nokia with the help of innovation. Samsung enters the market by accepting the
innovating smartphone market by Google android. Samsung then grew in the market with the
help of certain mobile specification in competition with the major competitor Apple.
Samsung introduced high ranged camera, special security features such as eye retina scanner,
finger print scanner, heart rate sensor and even fast charging capabilities for the high usage
customers.
Samsung have correctly studied the market and its requirement and has delivered the product
with high performance such as introduction of Phablets in galaxy note series. Phablets are
larger then normal phones and smaller then tablets according to the usage and need of the
customer. It has also reintroduced the use of stylus pen in smartphones which has given him
the competitive advantage over other brands in the market. Recognizing the need even Apple
has introduced the phablet range in plus section of the smartphone such as Iphone 6 plus.
Samsung was a prior and has popularized the usage of amoled screen display which has been
further been excepted as many other companies.
Samsung has been able to innovate in its sector and have developed the market with healthy
competition.
It has been able to develop features giving them competitive advantage over others.
Samsung has also hindered its image in the competitive market by losing over apple in
product innovation and losing the case for using patent products by Samsung.

PROMOTIONAL STRATEGY TO SUPPLEMENT THE MARKETING STRATEGY

OF SAMSUNG.

Samsung has focused both on push and pull strategy for the promotion of Samsung mobiles.
It has made every possible move for the consumer to get aware and buy the Samsung
product, whereas its competitor Apple has just focused on just pull strategy. Samsung has
been able to achieve the best in the push strategy but has failed in the attempt of the pull
strategy. Push strategy includes delivering the product, innovation, range to the customers.
Whereas pull strategy include building product loyalty of the customer and strong brand
image. Samsung follows both the policy, they have done the push strategy by traditional
media such as print, broadcast and even social media. They also performs strategy through
celebrity endorsements.
They perform pull strategy through social media, company tries to build a relation with

customer through online presence. According to me, Samsung has greatly performed the push
strategy but has failed to achieve on pull strategy, they have failed to build a product loyalty
whereas apple which just focused on pull strategy has greatly achieved the market
Samsung Mobiles: Smartphone strategy for the Indian market Samsung Mobiles line-up of smart phones and tablets has helped the handset maker rally a
significant share in a market that is largely dominated by Nokia. Samsung sold 12.6 million
smart phones in the quarter ended March 2011, boosting its global Smartphone market share
by 7.4 percentage points from the previous year to 12.2 per cent. It now ranks fourth after
Nokia, Apple and Research in Motion (RIM). Samsung is only 1.2 percentage points behind
RIM and is expected to grab the number three spot in 2011 if it maintains its current growth
rate. Advance orders for Samsungs Galaxy S2, which was released in April 2011, surpassed
3 million units within a week of the launch, posing a threat even to Apple. At this rate, its
sales are expected to top 14 million units in the current quarter.

Samsung known as an electronic company having a higher value in refrigerator and TVs ,
have to bring something new to enter the competition So they enter into the smartphones as
smartphones were the new addiction among the youth and to walk with competition they
enter into new segment . Now being an Samsung brand it was producing cheap smartphones
Samsung have to come up with the new version as Maruti bought up nexa for it premium
product same way Samsung came with the android and tablets form as to compete the
competition in the market . Android phones having all the features in it the first android was
Launch in 2010 as S series giving the competition to the leading brands like apple ,
blackberry , Nokia , Motorola . Main competitor was Apple, targeting blackberry , Nokia first
it directly targeted the apple phones and in a mean while this was an two horse game As it
broke the market of blackberry and Nokia in period of time by bring a new technology of big
screen as in 2012 Apple 4s was having 3.4 inch screen while Samsung launch 5.3 inch screen
as S2 was a big flop in US but the phones were selling in great market outside Asia this break
the market of Apple 4s and force Apple to think more , It failed in Us but it give hopes to
company as it was doing good outside Us . As Samsung use the mix product market statergy
it targeted the each and every price customer by offering Rs 8000 cell phones as J series and
Rs 60000 cell phones As S series this Negative aspect -This decrease the brand value as
Apple had already the created it brand name . Samsung giving all the features at cheap prices
make customers believe that their is no worth of taking rs 60000 cell phone as they can get it
for rs 10000 Samsung fail to creat the brand name psychologically While the customers of
Apple have a great effect as a brand psychological . Another aspect is launching way every
year Apple lauch it's new version at the month of September October while Samsung launch
it at month of March . Before launching Apple create that atmosphere something new is going
to happen next we can't find it in Samsung .
Positive aspect - Product mixing had eventually increase the sale of the product as it has
something for everyone at every budget the mobile is available for customers . Even the
middle class family can enjoy the benefits of android. Simply used having the feature of
sharing data easily had also increase the sale of Samsung mobile rather than Apple
Supply channel
Samsung manufacture the product gives it distributer and then it end up to retail shops. The
main retailer of Samsung is Croma, Vijay sales, etc.

Samsung don't have particular retail showroom for smartphones as Apple have. This all
differs as a competition