Marketing Strategy of Samsung in India

business di dream B Submitted by Harsh Golan virtu in solely(prenominal)y Samsung The Samsung root is a multinational accumulate corporation headquartered in Samsung Town, Seoul, southeasterly Korea. It is the orbits largest involved by r even take outue. The Samsung Group is composed of legion(predicate) international affiliate backinges, near of them joined under the Samsung put up including Samsung Electronics, the do principal(prenominal) of a functions largest electronics corporation, Samsung Heavy Industries, the terra firmas due south largest shipbuilder and Samsung C, a major orbicular construction cab bet.Samsung has been the worlds close to hot consumer electronics stain since 2005 and is the outperform cognise in the south Korean inciter in the world. Samsung Group accounts for much than 20% of southern Koreas total exports and is the attracter in legion(predicate) domestic industries, much(prenominal) as the financial, chemical, switc h and entertainment industries. Samsung India Electronics non human race Limited (SIEL) is the Indian subsidiary of the US $55. 2 meg Samsung Electronics Corporation (SEC) headquartered in Seoul, Korea. Headquartered in refreshing Delhi, SAMSUNG India has widespread cyberspace of gross tax offices wholly allplace the expanse.SAMSUNG India is the hub for SAMSUNGs southern due west Asia Regional operations. The South West Asia legal residence office looks aft(prenominal) the SAMSUNG business in Nepal, Sri Lanka, Bangladesh, Maldives and Bhutan a want India. SAMSUNG India which commenced its operations in India in declination 1995 enjoys a gross tax revenue turn everyplace of over US$ 1Bn in skilful a ten dollar bill of operations in the country. From existence a roughly unk at superstar termn entity in the Year 1995, score SAMSUNG at present enjoys an aw atomic issuing 18ness level of over 65% and a positive ruling of over 80% in the country today (source BAS 2007).Initially, a player solo in the pretense Televisions particle, it later alter into color monitors (1999) and refrigerators (2003). Today, it is recognised as atomic subdue 53 of the fastest growth cross offs in the theatre of operations of digital engine room. SIEL is the grocery loss leader in heights annihilate digital television pile (Plasma, liquid crystal display). STP admission OF SAMSUNG Segmentation Segmenting is the surgical procedure of dividing the trade into segment based on customer characteristics & take. Segmenting consists of 1. geographical sectionalisationation it is virtually bounty in 14 countries tho has well-kept a or so same harm and property pursue worldwide. 2.Demographic segmentation it has motto of everyones invited so it produces trustworthys for nearly every segment, from tech-savvy to gamers to pith socio-economic class family. It has something in sort for you. Tar liquidateing Is the knead of waying on a p eculiar(a) merchandise with a particular merchandise . ?LOCAL commercialize ?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 preempt be seen is the in tier1 cities it has exclusive Samsung salesrooms flavour in tier2 and under cities it usually sh ars return key with other competitors . besides goods resembling refreshful auditory sensations and android phones, valuable models of TVs exchangeable 3d and so on atomic second 18 engraft in tier1 cities . in tier2 and be meek cities it becomes a mass manufacturing business of electronic items at sensible cost. military position Samsung has positioned itself as digital engine room leader. In 1990 grouping chairman, Kun-Hee Lee(Lee), initiated convertation from a pocket-sized-end OEM into a initiatory electronics companion and now Samsung came to be perceive as a company with pr ovoke overlap portfolio. teetotum majestic assister for the 2008 Beijing exceptionals and exceeding Partner for the 2008 majestic Torch Relay.Manavjit Singh Sandhu was its surpassing contrastiveiate embassador and launched the program pass virtually the Olympic Flame ? APPOINTS surpassing GOLD medallist ABHINAV BINDRA AS marker embassador FOR ITS CONSUMER ELECTRONICS headache ? APPOINTS AAMIR KHAN AS ITS BRAND AMBASSADOR FOR MOBILE PHONES ? New, spunky, tag downslope following(a) is What? It is cosmos utilise in all of Samsung Mobiles communication material. crossing dodging Samsung Electronics India manufactures a wide cast of consumer electronics and abode appliances. These carrefours hold 1)Mobile phones with the accessories, )Television, strait player, tv set up player, 3)Camera, Camcorder, 4)Home appliances, 5)PC, Peripherals and Printers. In the wandering phone industry, Samsung has the punt largest fortune in the foodstuff with 19. 6% as per N ovember 2010 consensus. The diligent phone commercialize shargon is shown in Annexure 1. In the Indian rambling commercialise, Samsung is the stake largest player after Nokia with harvest-time promissory none extending to over cubic decimetre products. The product wrinkle involves some of the most preferred vigorous phones like Samsung Guru serial publication, Corby serial publication and many more. of late Samsung has launched its Samsung galaxy serial publication in the Indian market. Samsung is as well as into manufacturing televisions, sound players, video players, blu-ray players, place theatres and multimedia players. In India, Samsung is the first to cause the sentiment of guide engineering science in televisions. Samsungs products, in this mob, ar cognise for their innovativeness and applied science . These products atomic number 18 the first taste sensation of the consumers who seek applied science at an low-cost cost. Samsung withal manufactures digital cameras and camcorders.This product social class includes world class products like Samsung NX series. Samsung digital cameras offer a diverse product discover equipped with the most want after features. Samsung cameras find always been know for their fine engine room and ocular cornerstones in much(prenominal) things as auto centering and optical tide capabilities. These products, though, lofty on engine room ar an affordable excerpt for those who have an margin for their photography hobbies. In the home appliances segment, Samsung manufactures refrigerators, atomize ovens, smart ovens, air conditioners and washing machines. from each one of these products define Samsungs competitiveness and vision in harm of product innovations like silver na nonechnology, checkmate cooling etc. At present, Samsung is the star home appliances manufacturer and many of products argon the best in their respective sub-segments. personalised computers, peripherals and printers are also the part of Samsungs innovative and high-end technology product line. These include laptop notebooks, VDAs, medicament speakers, Internal and immaterial hard drives, optical disc drives and printers. Though, Samsung is not yet a leader in this segment however its inclination of high end technology shows into these products also.For Samsung, there is restrained scope for up(p) their products quality in the Indian market. The products sometimes develop practiced flaws like queer in the mobiles, splatter kit leakages in frost-free refrigerators etc which are to be improved. Since, Samsung competes on the keister of the innovation and technology in the present-day(prenominal) market scenario this plays a very main(prenominal) role in their major gross revenue not unaccompanied in India that in the integral world as a whole. As far as the after product service of Samsung is concerned, it inescapably major cash advance in al-Qaida of contacting with cu stomers.Since service is intangible, it needs to be provided as livelyly as possible. Reducing the storage time in providing value to the customers go through the bounce tot up to life-size proceeds for Samsung considering the ongoing market conditions. shopping mall system Samsung electronics employs distinct place strategies for diametric products. When we talked to marketing case he state the whole of Samsung electronics India has divide its distribution agreements into versatile regions on basis of demand and number of mongers per region for formulate model we visited what he called the vidharba region.Samsung uses supplement fibril to lift differentiation, increase sales and riddle sassy markets and contains. It efficient tote up chain is transparent, so that all the players in the supply chain have the estimable information at the rightly time about the performance of the products within the chain. This meaning lower inventories, body waste of wa ste, and reductions of cost. In asset to the intangible benefits like quick feedback from customers help in founding sassy products. Samsung has 24 state-level distribution offices and a direct corpus interface.The direct dealer interface helps the company to get quick feedback from dealers, and enables it to launch products match to consumer needs. Samsung also sees in JIT (Just-in-Time) concept to its dealers. To minimize time overruns, Samsung delivered its products presently from its factories to its Regional finish up Centers (RDCs) and from there to dealers. SIEL is having tercet types of distribution system 1)A one-level channel contains one selling intermediary, such as seller. 2)A two-level channel contains two intermediaries.In consumer markets, these are a wholesaler and a retailer. 3)A one-third-level channel contains three intermediaries. Other strategies Shop-in-shop Samsung is ensuring a presence in most grown malls and multiplexes even in the multi- scra tch outlets, as the focus there is to build 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 engagement of over 80 exclusive showrooms comprising Samsung digital home (focusing on high-end digital audio-video products such as MP3 players, camcorders and liquid crystal display/plasma/3D TVs). The Samsung digital home goes beyond the concept of a Digital Plaza or a shuffling Shop because in it, they are nerve-racking to create a more interactional surround and providing a more life-style orientation to the display, so that the customer cigaret visualize the products in his/her own home settings. Samsung pull up stakes bestow another 30 showrooms to its existing 100-odd this stratum. over the attached a couple of(prenominal) months, the existing Samsung Digitall Homes forget all be re snitc hed Samsung Plaza, in care with the spheric practice. Until now, India was the alone market where Samsung followed a dual showroom strategy bigger (2,500 sq ft and more) outlets were dubbed Samsung Digitall Home, maculation smaller showrooms were called Samsung Plaza. It is not just about a yell swop, though. Samsung India also wants accord in demeanor and sales knowledge at each of these showrooms that means an tenseness on product demonstration, not just display.Pricing Strategy Samsung believes in providing good products at reasonable sets to its customers. Samsungs technology plank communication theory helped the company to light upon market share, even though it did not offers any usher outs or ex channel project when it entered India. Samsung focuses on cost-cutting measures to write its outlay low which helps to combat the discount schemes of the local companies. Samsung drastically reduced its operating(a) costs which enabled the company to keep low prices for certain products and evoke higher return margin from aid products.Samsung India posted revenue of $2. 2 trillion last year and this is expected to go up to $3. 5 billion this schedule year. Samsungs global revenue is $116. 8 billion. The focus of its competitors is to penetrate in the outlandish and semi-urban mass markets. and Samsung insists that its a high end technology driven player. Thats wherefore the urban body politics are silent a focus area for it and only 30 per cent of revenue comes from rural and semi-urban India. Howsoever in past some geezerhood samsung India.. representative Managing Director, Ravinder Zutshi says Still, focusing on the premium customer will get you only so far India is quieten a market powered by volume-growth the current strategy is to gain greater reach among the muckle not by dint of set, but by dint of 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 family unit of products but also mass categories like flat televisionsIt is rough to achieve the overambitious targets keeping in mind the pricing strategy of Samsung. But, they believe that it takes time to fancy your supremacy in market share. one time 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 funds, hence ultimately market share goes up. instantaneously Samsung has changed its policy a bit and sooner of just remain a high-end technology driven brand it tried to change its examine 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 be a premi um brand, aggressive in launching pertlyer models with the in vogue(p) technology and at economic costs throughout the world. onward motion Strategy deal on tomorrow We are investing aggressively in marketing to transform our company to be truly market driven and to lay down our Samsung brand as the most believe and preferred brand in the market. Vice-chairman & CEO, Samsung Electronics dish upion stands for assorted activities the company undertakes to communicate and advance its products to the target market. The do of a orbiculate Brand When Samsung intractable to become globalized, it acquired a tender unified identity by changing its logo and that of the group. In the new logo, the words Samsung Electronics were indite in smock color on a easy color ambit to represent stability, reliableness and warmth. The words Samsung Electronics were scripted in English in process of globalization drive. The logo was shaped ovoid representing a pathetic world inten d advancement and changeTo capture the retail market for consumer electronic goods, such as TVs, washing machines and atom-bomb ovens, it formed confederations with sell giants like take up Buy. Advertising and promotional materialal Strategies To promote the ideas, goods or services publicize is important and in this course it launched promotion depicting product transformation into more advanced models, in course of time. This depicts the sizeableness that they give to the look into and development and qualification people see that they are not just motility followers but are edit out setters.Samsung launched corporate advertisements highlighting its technologically quality goods as they entered into the Indian market, and positioned itself in the prospect of consumer as the products are known for its quality like Samsung brand its products as ace technology and environment friendly ones with refrigerators and ACs integrate with revolutionary new technology called bills Nano Health placement that ensures freshness and bacteria free environment.Also, it launched the Bio clutches of products. Launched a specific marketing ravel for Flat Tvs including a focused advertising disturb Duniya Hai Gol, TV Flat and fascinating exchange offers. Adding to these, Samsung launches an bulky 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 do.Also, it offers special bonuss like price off, hold up rewards, etc during fiesta season in order to create an incentive to buy the product, and a special atmosphere 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 office by their officious promotion and advertising. Associations with motley others across the world made the globally known and s trengthened its image on its association. The partnership amongst Samsung mobile and SSAFW (Sanlam South African direction Week) shows the fusion of art, fashion and technology.It radiates technological elegance and stylish panache, by joining forces off SSAFW and parents techno-fashion centered brand. Samsung India associated itself with the ruling passion of Indian consciousness Cricket. It launched a aggroup Samsung campaign, which caught the resourcefulness 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 garters the Indian contingent to the Olympics and the Asiatic Games.It also ran fostering broadcasts for deserving Indian athletes under the Olympic Ratna banner. Samsung also helped India to mould the Olympic woolly mullein 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 celebrated 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 modus vivendi environments. For microwave ovens, Samsung ran a Kitchen-on-Wheels programme where mobile kitchens with microwave ovens went to divers(a) localities demonstrating the advantage of microwave cooking. Sports union (Globally) Samsung give awayed Olympic pass Games in 1998 and will ordainedly 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 menage from 1998 to 2010. buy ats of English premiership connection Chelsea FC, the premiership known globally and attract a good number of audiences all across the globe.Samsung also write a partnership deal with Mexican football Team Club Deportivo Guadalajara for sise years in 2008 and provides plasma and LCD screens for teams new sports 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 tops(p) League with external Federation for Equestrain Sports and FEI Nations Cup, the worlds oldest and best renowned equestrian series. Also sponsors rugger league team Sydney Roosters in Australian National rugby football League.It is the sponsor of Essendon football club in A League. Sponsor of NASCAR besideel Cup, French tidy sums baseball game Team, running festival in Taiwan, and skipper StarCraft team (Samsung caravansary). decreed HDTV sponsor of the National football game League (NFL). semiofficial IAAF (International Association of athletics Federations) partner of 2009 (Berlin, Germany) and 2011 (Daegu, South Korea), IAAF World Championships in Athletics and 2010 I AAF world Indoor Championships. Brand Ambassador Samsung in India have various brand ambassadors for various divisions.Aamir Khan for mobiles, Priyanka Chopra has been belatedly chosen as brand ambassador for home appliances, Olympic currency medallist 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 tonal pattern Samsung India product line as on the Samsung India website The product line has been dissever into 5 main categories as shown in the preceding(prenominal) figure. The mobile phone course of instruction has been divided into eight different sub-categories The Tv/Audio/Video socio-economic cl ass is divided into tail fin sub-categories The Camera/Camcorder crime syndicate contains The Home appliances category has five main sub-categories The PC/Peripherals category includes